For those in the process of building a retirement portfolio, considering defensive blue chip shares might be beneficial. These companies often offer stability and reliable returns, making them suitable for long-term investment. Here are a few ASX blue chip stocks that could be worth considering:
Coles Group Ltd (ASX: COL) Coles Group, a major player in the supermarket sector, is known for its resilience in varying economic conditions. As a provider of essential goods, Coles benefits from steady consumer demand, which helps maintain stable earnings even during economic downturns. This defensive quality makes Coles an attractive option for retirees seeking consistent returns.
Coles is currently trading at $18.07 per share. The company is projected to offer fully franked dividends of 70 cents per share in FY 2024, increasing to 74 cents per share in FY 2025. These forecasts translate to dividend yields of approximately 3.9% and 4.1%, respectively.
Woolworths Limited (ASX: WOW) Woolworths, another leading supermarket chain, also presents a compelling case for inclusion in a retirement portfolio. Similar to Coles, Woolworths benefits from the steady demand for groceries, ensuring resilient earnings. The company is expected to provide fully franked dividends of $1.07 per share in FY 2024, with an increase to $1.13 per share in FY 2025. Based on its current share price of $34.34, these dividends imply yields of around 3.1% and 3.3%, respectively.
Transurban Group (ASX: TCL) Transurban, a prominent player in the toll road sector, offers a different kind of stability through its infrastructure assets. The company operates a portfolio of toll roads across Australia and North America, including notable projects such as CityLink in Melbourne, the Cross City Tunnel in Sydney, and AirportlinkM7 in Brisbane. With ongoing population growth and urbanization driving demand for its services, Transurban has defensive characteristics that can appeal to retirees.
The company is currently trading at $12.77 per share. Analysts forecast dividends per share of 63.6 cents in FY 2024, rising to 65.1 cents in FY 2025. These projections suggest dividend yields of about 5% and 5.1%, respectively, reflecting Transurban’s status as a generous dividend payer.
For those seeking stability and reliable income in retirement, blue chip stocks such as Coles Group Ltd, Woolworths Limited, and Transurban Group offer attractive options. Their defensive qualities, combined with solid dividend forecasts, make them potential candidates for a retirement portfolio. As always, thorough research and consideration of individual financial goals and needs are essential when making investment decisions.