If you're in the process of building a retirement portfolio, then you may be on the lookout for some ASX 200 shares to buy for it.
Rather than investing in risky growth shares, retirees ought to look for shares with strong business models, positive long-term outlooks, and reliable dividends.
But which shares could be in the buy zone right now for a retirement portfolio? Let's take a look at what analysts are saying about these potential retirement shares:
Image source: Getty Images
Transurban Group (ASX: TCL)
The first ASX 200 retirement share to look at is Transurban. It is a toll road operator with 22 roads in Australia and North America. It also has three major projects expected to open by 2026, which look set to boost its top line and profits.
Bell Potter is a big fan of the company. In fact, it has named Transurban on its favoured list again in September. The broker commented:
We believe the current inflationary environment is favourable for Transurban given its inflation-linked revenue stream with annual escalators. Moreover, TCL provides low risk cash flows over the long term, with long concession duration (30+ years), and relative traffic/income resilience. The group's current pipeline of growth projects is $3.3 billion (TCL's share of total project cost) and further huge development opportunities are expected over the next few decades, supported by population and economic growth.
Bell Potter has a buy rating and $14.30 price target on its shares. As for income, it is forecasting dividends per share of 65 cents in FY 2025 and then 72 cents in FY 2026. Based on the current Transurban share price, this will mean yields of 4.7% and 5.2%, respectively.
Woolworths Limited (ASX: WOW)
Another ASX 200 retirement share for investors to consider buying is Woolworths. It is of course Australia's largest Woolworths supermarket chain. In addition, it is the owner of Big W, Everyday Rewards, and a growing pet care business.
Goldman Sachs is a big fan of Woolworths. This is due largely to its very sticky loyalty program. Combined with its omnichannel advantage, the broker believes the company is positioned to grow its market share in the coming years. It said:
We are Buy rated on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as its ability to pass through any cost inflation to protect its margins, beyond market expectations. The stock is trading below its historical average (since 2018), and we see this as a value entry level for a high-quality and defensive stock.
Goldman currently has a conviction buy rating and $40.10 price target on the company's shares. Its analysts are also forecasting fully franked dividend yields in the region of 3%+ through to at least FY 2027.
