Transurban Group (ASX:TCL) and this ASX share could be top options for retirees looking for a long term source of income…
The post 2 high quality ASX shares for your retirement portfolio appeared first on The Motley Fool Australia. –
If you’re looking for ways to boost your income in retirement, then you might want to look at the shares listed below.
These high quality ASX shares could be great options for retirees. Here’s what you need to know about them:
Sydney Airport Holdings Pty Ltd (ASX: SYD)
The first option to consider for a retirement portfolio is Sydney Airport.
Although the last 12 months have been incredibly hard for the airport operator, things are starting to look a lot more positive now.
With domestic tourism recovering and vaccines rolling out across the world, it may not be long until Sydney Airport’s terminals are packed full of passengers again.
Goldman Sachs is a fan and believes it is worth being patient with the company. The broker currently has a buy rating and $6.73 price target on its shares.
And while the broker is only expecting a very modest dividend in FY 2021, it expects a big increase next year. Goldman estimates that its shares currently offer yields of ~1.5% and ~4.4%, respectively, over the next two years.
Transurban Group (ASX: TCL)
Transurban is a leading toll road operator which owns a collection of important roads in Australia and North America.
While the pandemic led to a sharp drop in traffic volumes and hit the company hard, volumes are improving and will continue to do so over the next 12 months as vaccines roll out.
In light of increasing traffic, the time-savings its roads offer, and their strong pricing power, Transurban appears to be well-placed for growth over the long term.
One broker that sees a lot of value in the Transurban share price is Ord Minnett. Earlier this week the broker retained its buy rating and $16.00 price target on its shares.
Ord Minnett is forecasting dividends of 37 cents per share in FY 2021 and 58 cents per share in FY 2022. Based on the latest Transurban share price, this equates to yields of 2.7% and 4.2%, respectively, over the next two years.
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Returns As of 15th February 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 Transurban Group. 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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