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Why I would buy Wesfarmers (ASX:WES) and this ASX share for a retirement portfolio

Here’s why I would add Wesfarmers Ltd (ASX:WES) and this ASX share to a retirement portfolio today…
The post Why I would buy Wesfarmers (ASX:WES) and this ASX share for a retirement portfolio appeared first on Motley Fool Australia. –

letter blocks spelling out the word retire

If you’re building a retirement portfolio, then you might want to take a look at the ASX shares named below.

I believe they are great options for investors looking for a combination of growth and income over the next decade. Here’s why I like them:

Collins Foods Ltd (ASX: CKF)

Collins Foods is a growing quick service restaurant operator with a massive 240 KFC stores in Australia and 40 KFC stores in Europe. It also operates 12 Taco Bells across Queensland and Victoria. I think it would be a great option for a retirement portfolio due to its strong business model and positive long term growth outlook.

Although it clearly has a very large KFC footprint in the ANZ market, management still sees plenty of room for growth in the future. The same can certainly be said for Europe, where the brand has yet to fully penetrate the market. In addition to this, the Taco Bell brand appears to be doing well and could be another driver of growth in the future. Combined, I believe Collins Foods is capable of delivering solid earnings and dividend growth for a long time to come.

Wesfarmers Ltd (ASX: WES)

Another ASX share that I think would be good for a retirement portfolio is Wesfarmers. I believe the conglomerate is one of the highest quality companies on the Australian share market and well-positioned to deliver solid earnings and dividend growth over the next decade.

This is thanks to its collection of leading retail brands such as Bunnings, Catch, and Kmart, as well as the numerous industrial businesses it has in its portfolio. In addition to this, the company has a very strong balance sheet and plenty of firepower to make earnings accretive acquisitions. It has been a bit quiet on the deal-making front of late, but I suspect it could have a number of targets in its sights at present.

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Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Collins Foods Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why I would buy Wesfarmers (ASX:WES) and this ASX share for a retirement portfolio appeared first on Motley Fool Australia.

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