Coles Group Ltd (ASX:COL) and this ASX 500 share could be quality options for a retirement portfolio. Here’s why they are rated highly…
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If you’re looking at options for your retirement portfolio, then the ASX 50 index could be a great place to start your search.
The ASX 50 index is a large cap index which represents 50 of the largest and most liquid shares listed on the Australian share market based on their float-adjusted market capitalisation.
But which ASX 50 shares would be good options for retirees? The two listed below are highly rated:
Coles Group Ltd (ASX: COL)
Coles could be a quality ASX 50 share for retirees to own. This is due to its solid long term growth potential, cost cutting, generous dividend policy, and defensive qualities. The supermarket giant has displayed the latter during the pandemic, delivering solid earnings and dividend growth despite the crisis.
And while it is now cycling the panic buying from a year ago and is likely to report lower sales in its upcoming third quarter update, it looks well-placed to resume its growth in FY 2022.
Goldman Sachs is positive on the company. Its analysts currently have a buy rating and $20.70 price target on its shares. This compares to the latest Coles share price of $15.64.
Ramsay Health Care Limited (ASX: RHC)
Another ASX 50 share that is highly rated is Ramsay Health Care. The private hospital operator could be worth considering for a retirement portfolio due to its very positive long term growth outlook.
This is thanks to a number of tailwinds that are expected to lead to growing demand for healthcare services over the next decade and beyond. It also has a penchant for acquisitions and could bolster its growth inorganically in the coming years.
Goldman Sachs is also a big fan of Ramsay. The broker currently has a buy rating and $75.00 price target on the company’s shares. This compares to the latest Ramsay share price of $67.71.
Goldman has suggest that Ramsay will recover strongly from the pandemic and is forecasting its operating earnings to grow at a compound annual growth rate of 7% between FY 2021 and FY 2024.
Where to invest $1,000 right now
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*Returns as of February 15th 2021
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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