3 high-quality ASX 200 retirement shares to buy now
If you're in the process of building or refreshing an ASX retirement portfolio, then it could be worth looking at the ASX 200 shares listed below.
They are high-quality businesses and have recently been named as buys by analysts. Here's why they could be top picks for retirees:
Telstra Group Ltd (ASX: TLS)
Bell Potter thinks that Telstra could be an ASX 200 retirement share to buy right now. The broker currently has a buy rating and $4.30 price target on the telco giant's shares.
It likes the company due to its reasonable valuation and attractive dividend yield compared to the big four banks. It explains:
We believe the stock looks reasonable value on an FY25 PE ratio of c.20x when all of the comps in the S&P/ASX 20 trade on >20x. We also believe the forecast fully franked yield of 4.8% is attractive when CBA's forecast yield is now <4%. The yield is comparable, however, to the other banks but Telstra's dividend is expected to grow whereas the banks are not so much.
Treasury Wine Estates Ltd (ASX: TWE)
Another ASX 200 retirement share that could be a buy is Treasury Wine. It is a leading wine company that owns a portfolio of popular brands such as Penfolds, Wolf Blass, and 19 Crimes.
Goldman Sachs thinks its shares are undervalued and has put a buy rating and $15.20 price target on them.
The broker likes the company due to its positive earnings growth outlook, which is being underpinned partly by the key Penfolds brand. It said:
Our Buy rating on TWE is premised on accelerating double-digit EPS growth in FY24-27e driven by 1) continued global expansion of Penfolds, especially post the removal of China import tariffs on Australian wine; our recent channel checks suggest positive reception to the returning Australian sourced Penfolds and we expect a ~63pct pre-tariff recovery by 2027.
Woolworths Limited (ASX: WOW)
Over at Goldman Sachs, its analysts think that this supermarket giant and Big W owner could be an ASX 200 retirement share to buy now.
The broker currently has a buy rating and $36.20 price target on its shares.
Goldman likes the company due to its leadership position in a defensive market. It also believes Woolworths is well-placed to benefit from the growth in online food shopping. It explains:
Our Buy thesis is based on 1) robust supermarkets growth of ~4% in FY23-26E driven by strong population growth and a rational, oligopoly environment; 2) omni-channel leader further extending share gains due to its early mover advantage in digitalization and omni-channel execution. By 2030E, we expect WOW to be the dominant leader in online with ~50% share in a space that is expected to go from 5% to 10% of the total grocery market; 3) loyalty/retail media further margin opportunities: Woolworth's strong digital and omni-channel advantage is further reinforced through a virtuous cycle of loyalty and retail media (Cartology). WOW is also trading below fair value.
The post 3 high-quality ASX 200 retirement shares to buy now appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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