Major ASX blue-chip shares can be a great source of passive income thanks to their dividend yields, including the franking credits.

Dividend yields can be very compelling through a mixture of having a high dividend payout ratio and a relatively low valuation.

Let’s look at two appealing ASX blue-chip shares with attractive dividend yields.

Origin Energy Ltd (ASX: ORG)

Origin describes itself as one of Australia’s leading energy retailers, supplying electricity, natural gas, LPG and solar.

It also has a variety of ways to generate power, including coal, natural gas, wind and solar. On top of that, Origin is a gas producer and explorer. Origin also owns a stake in utility software business Kraken and European energy supplier Octopus Energy.

The business trades on a relatively low price/earnings (P/E) ratio following a drop of more than 10% since the 2026 high in April. According to the projection on Commsec, the business is trading at less than 15x FY26’s estimated earnings.

Thankfully, with the ASX blue chip-share’s forecast dividend for FY26 and FY27, the dividends could be large. But, it’s important to remember that energy prices can be volatile sometimes.

The forecast on Commsec suggests the business could pay an annual dividend per share of 60 cents in FY26 and 70.5 cents per share in FY27.

That means the grossed-up dividend yield could be 7.7% in FY26 and 9% in FY27, including franking credits, at the time of writing.

WAM Income Maximiser Ltd (ASX: WMX)

This is a relatively new listed investment company (LIC) that invests in a mixture of ASX blue-chip shares and bonds (debt, with the LIC’s exposure having attractive credit ratings on average).

On the equity side of the portfolio, some of its portfolio positions at the end of May included BHP Group Ltd (ASX: BHP), Goodman Group (ASX: GMG), JB Hi-Fi Ltd (ASX: JBH), Rio Tinto Ltd (ASX: RIO) and Transurban Group (ASX: TCL).

By mixing shares and debt, it can provide investors with a solid mixture of stability and yield. As a bonus, it pays a dividend every single month, giving investors very consistent income.

It has guided that its monthly dividend in September 2026 will be 0.65 cents per share. That translates into an annualised grossed-up dividend yield of 6.8%, including franking credits, at the time of writing.

I’m not sure how strong the portfolio’s future returns will be, but it has started with a strong year or so of performance from its portfolio that’s focused on ASX blue-chip shares.

These aren’t the only shares I’d buy for dividend income, though.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

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• Experts name BHP and these ASX 200 shares to buy this week

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended BHP Group and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I always have an eye out for ASX dividend stocks which pay reliable passive income to their shareholders.

Sometimes I like to investigate the ASX stocks which pay the most regular dividend. Other times, it’s the ones which pay the highest dividend yield, or have paid out over the longest period of time.

But what about the ASX stocks which have a history of doing all three?

Here are two ASX stocks which have continually raised their regular dividend payment over the past decade (or more).

Washington H. Soul Pattinson and Company Ltd (ASX: SOL)

Soul Patts is widely regarded as Australian dividend royalty.

The diversified Australian investment house paid dividends to its shareholders every year since it listed on the ASX in 1903. 

What’s more, the ASX stock has raised that dividend payment every single year since 1998. That’s 28 years of continually raising dividend payments.

Soul Patts historically pays its fully-franked dividends twice per year in May and a final dividend in December. It occasionally also pays shareholders an additional special dividend.

In FY25, the company paid a total of $1.03 per share, fully franked. 

For the first half of FY26, Soul Patts paid a fully-franked interim dividend of 48 cents per share which was a 9.1% increase on the prior corresponding period. 

Based on its last two payouts, the ASX stock has a grossed-up dividend yield of around 2.5%, including franking credits, at the time of writing.

Charter Hall Group (ASX: CHC)

Charter Hall has been paying shareholders a partially or fully-franking dividend payment twice per year since 2006. This payment has been raised every year since 2010.

That’s a 16-year run of continually raising its dividend payment for investors.

In FY25, the property investment and funds management business paid its shareholders a total of 48 cents per share, up from 45 cents per share in FY24, partially franked.

The ASX stock paid an interim dividend of 24.8 cents for the forest half of FY26 and it forecast to pay a total dividend of around 50 cents for the full financial year. That translates to a forward dividend yield of around 2.3% at the time of writing.

The business has been attracting strong capital inflows and recently upgraded earnings guidance, which supports future distribution growth.

In a guidance update last month, Charter Hall said it anticipates ongoing demand for commercial property, driven by rising institutional allocations, attractive yields, and recent changes to residential property tax rules. This is great news for its shareholders. 

The post 2 ASX stocks that have continually raised dividends for 10+ years appeared first on The Motley Fool Australia.

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• 4 ASX 200 shares tipped to rise 30% or more in the year ahead
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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was a busy week for Australia’s top brokers. This has led to a number of broker notes being released.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

ANZ Group Holdings Ltd (ASX: ANZ)

According to a note out of Citi, its analysts have retained their buy rating on this banking giant’s shares with a reduced price target of $39.25. The broker has been looking closer at potential impacts from proposed housing tax changes. Citi suspects that the changes could be a negative for the big four banks by slowing credit growth. As a result, it has adjusted its estimates to reflect this. The good news is that Citi believes mortgage growth will moderate more than business lending growth, which leaves ANZ, with its strong business franchise, better positioned to handle the slowdown. In light of this, the broker has named ANZ as its preferred major bank at present. The ANZ share price ended the week at $34.17.

CSL Ltd (ASX: CSL)

A note out of UBS reveals that its analysts have retained their buy rating on this biotechnology giant’s shares with a trimmed price target of $158.00. UBS is feeling more positive on the company’s outlook, believing that this year could mark the low point for CSL’s earnings. It highlights that cost savings from the company’s transformation program and lower plasma costs following a shift in collections could support its earnings growth in FY 2027. So, with the CSL share price trading at a discount to peer multiples, UBS thinks now could be a good time for investors to buy shares. The CSL share price was fetching $107.51 at Friday’s close.

WiseTech Global Ltd (ASX: WTC)

Analysts at Bell Potter have retained their buy rating on this logistics software company’s shares with a trimmed price target of $71.75. According to the note, the broker believes that WiseTech could be having a bit of difficulty moving some of its large customers over to the new CargoWise Value Packs this financial year. In light of this, Bell Potter has reduced its CargoWise revenue forecasts in the short to medium term. However, the broker remains positive and highlights that its price target is a significant premium to the current share price. It also believes the lack of progress with CargoWise Value Packs is already reflected in the share price as well as the risk of a revenue result at the low end of guidance. The WiseTech Global share price ended the week at $37.50.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in CSL and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When sharemarkets look choppy, many investors turn to Oracle of Omaha Warren Buffett for investment advice.

After all, Warren Buffett spent more than 60 years navigating crashes, recessions, and market volatility to become one of the richest people in the world. 

His investing wisdom boils down a few key philosophies: rational decision-making, patience to hold stock long-term, and picking high-quality businesses.

With that in mind, there are three ASX stocks which I think look like they align with Warren Buffett’s investment strategy.

Transburban Group Ltd (ASX: TCL)

One of the key qualities that Warren Buffett looks for when making an investment is a competitive advantage that protects the company’s long-term market share and profitability.

A great example of this is global infrastructure business Transurban. The company builds and operates major urban toll road networks, tunnels, and bridges and operates 22 assets across Australia, the US, and Canada.

Transurban benefits from a defensive quality because its services are essential. Even in the event of a downturn, people still need to travel to work or transport goods and services. Transurban’s toll roads typically have stable traffic volumes year-round, which means the business enjoys resilient cash flow regardless of economic conditions. 

Another bonus is that most of its toll roads are on an annual contract. This means Transurban is able to increase its toll prices each year in line with rising inflation. 

Wesfarmers Ltd (ASX: WES)

Warren Buffett famously prefers businesses with a strong history, trusted management, reliable long-term profit growth. 

Wesfarmers embodies all three of these things. The company is well-established and financially sound with a history of reliable growth and stability. 

It also owns major brands across several different industries, including Kmart, Bunnings and Priceline and continually focuses on expanding its markets, product categories and digital capabilities to drive long-term growth. 

It’s this stability and consistent long-term net profit growth that make Wesfarmers stand out amongst other ASX blue-chip stocks.  

Xero Ltd (ASX: XRO)

Xero doesn’t offer the long-standing history or defensive nature of Wesfarmers or Transurban, but I think its sticky business model and recurring subscription revenue is something Warren Buffett would approve of.

The nature of the business means its customers are likely to keep paying for its services and products over a long time. And that translates to a reliable long-term revenue stream.

At the same time, the ASX tech stock still has a relatively small market position, suggesting there is potential to unlock significant growth. 

The company is actively expanding its product suites, such as payroll and workflow automation, and also its global presence in the UK and the US.

The post 3 ASX stocks that look like classic Warren Buffett investments appeared first on The Motley Fool Australia.

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• 3 safe ASX dividend shares to buy for income

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group, Wesfarmers, and Xero. The Motley Fool Australia has positions in and has recommended Transurban Group and Xero. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Want to invest for the next decade?

ASX exchange traded funds (ETFs) can be a simple way to get exposure to long-term trends without having to pick every individual winner yourself.

Here are three quality ASX ETFs that could be worth buying and holding until 2036 and were recently recommended by Betashares:

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

The first ASX ETF to look at is the Betashares Global Robotics and Artificial Intelligence ETF.

This fund gives investors exposure to companies involved in robotics, automation, artificial intelligence, and related technologies. Its holdings include ABB (SWX: ABBN), Keyence Corp (FRA: KEE), and NVIDIA (NASDAQ: NVDA).

What makes this fund interesting is that it is not just about AI software. It also gives investors exposure to the physical side of automation.

Factories, warehouses, hospitals, logistics networks, and manufacturers are all looking for ways to become more efficient. Robotics and automation can help with labour shortages, productivity, safety, and precision.

That gives the fund a long runway if more businesses keep investing in machines, sensors, chips, and intelligent systems.

Betashares Video Games and Esports ETF (ASX: GAME)

Another ASX ETF that could be worth a closer look is the Betashares Video Games and Esports ETF.

This fund invests in global companies linked to video games and interactive entertainment. Its holdings include NetEase (NASDAQ: NTES), Take-Two Interactive (NASDAQ: TTWO), and Nintendo (FRA: NTO).

Gaming is no longer a small niche. It has become a major form of global entertainment, sitting alongside streaming, social media, sport, and film in the battle for consumer attention.

Nintendo is a useful example of the type of business this fund can own. It has some of the world’s most recognisable gaming franchises, a loyal customer base, and a history of creating hardware and software ecosystems that keep players engaged.

Betashares Global Quality Leaders ETF (ASX: QLTY)

A third ASX ETF to consider is the Betashares Global Quality Leaders ETF.

This fund focuses on global companies with strong quality characteristics. Its holdings currently include Lam Research (NASDAQ: LRCX), Netflix (NASDAQ: NFLX), and Uber Technologies (NYSE: UBER).

This is a different type of long-term investment. Rather than targeting one specific theme, the fund looks for companies with strong financial profiles, including profitability, balance sheet strength, cash generation, and earnings stability.

Lam Research is a good example of the type of global business inside the portfolio. The company supplies equipment used in semiconductor manufacturing, which makes it important to the production of advanced chips.

That gives it exposure to demand from areas such as AI, cloud computing, smartphones, data centres, and industrial technology.

The post 3 quality ASX ETFs to buy and hold until 2036 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Abb, Lam Research, Netflix, Nintendo, Nvidia, Take-Two Interactive Software, and Uber Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended NetEase. The Motley Fool Australia has recommended Lam Research, Netflix, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The big four S&P/ASX 200 Index (ASX: XJO) bank stocks have delivered underwhelming results so far in 2026.

But their performance could be set to get even worse.

Commonwealth Bank of Australia (ASX: CBA) shares have performed the best of the big four ASX 200 bank stocks year to date, recently down 0.2% in 2026. That outpaces the 1.3% losses posted by the benchmark index over this same period.

ANZ Group Holdings Ltd (ASX: ANZ) shares have had a more difficult run, recently down 5.6% for the year.

Rounding off the list, Westpac Banking Corp (ASX: WBC) shares were recently down 9.6% in 2026, while National Australia Bank Ltd (ASX: NAB) trails the pack with a 15.1% share price loss.

The banks have all faced headwinds from three consecutive RBA interest rate hikes this year. Coupled with ongoing inflationary pressures and the Federal Budget’s expected changes to negative gearing policies for residential homes, this could lead to materially lower demand for mortgage loans as well as increased bad debts.

And it appears a number of hedge funds are looking to take advantage of these mounting headwinds.

Betting against ASX 200 bank stocks ANZ, NAB, Westpac and CBA shares

According to the Australian Securities and Investments Commission (ASIC), hedge funds have roughly doubled their short positions in the big four ASX 200 banks stocks over the past half year to $10.9 billion.

CBA shares are the most shorted among the hedge funds, with Westpac shares coming in at number two.

Firetrail Investments revealed it has held a short position in ANZ, Westpac, NAB and CBA shares since mid-April.

“The big banks are priced to perfection, and any earnings downgrades will be treated pretty harshly. Valuations are very rich for the earnings growth banks are providing,” Patrick Hodgens, Firetrail Investments chief investment officer said (quoted by The Australian Financial Review).

Regal Funds also has a short position in CBA shares.

Explaining the potential mounting headwinds facing ASX 200 bank stocks, Regal Funds portfolio manager Mark Nathan said:

With banks, you always get a multiplier effect. If houses lose a bit of value, people don’t feel as wealthy, they spend less money, they invest less, so you get a multiplier effect with the banks.

That’s the big change since the budget. The market is less comfortable with what was previously a reasonable growth outlook, and downgrading that to a more modest growth outlook.

And Blackwattle Investment Partners’ portfolio manager Joe Koh cautioned that the current $10.9 billion of short bets against ANZ, CBA, NAB and Westpac shares could well grow from here.

According to Koh (quoted by the AFR):

There could be a further wave of selling because offshore hedge funds are waiting for the budget changes to be officially passed, rather than delving into local politics and the risks of last-minute changes.

The post Buying ASX 200 bank stocks like Westpac and CBA shares? Here’s why these funds are betting against you appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX 200 consumer discretionary shares outperformed the 10 other sectors over the shortened trading week, soaring 8.05%.

Consumer staples shares weren’t far behind, surging 7.62%.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) rose 2.07% to 8,804 points by Friday’s close.

Experts are now predicting an eventual cut for interest rates due to crumbling consumer confidence and low GDP growth.

Consumer sentiment fell in May to one of its weakest levels ever in the 50-year history of the benchmark monthly survey.

Softer-than-expected inflation also enhances the case for rates to be kept on hold or cut at some point.

Annual headline inflation fell to 4.2% in April, down from 4.6% in March, according to Bureau of Statistics figures.

On Friday, the ASX 200 rallied 1.98% after US President Donald Trump said a peace deal with Iran could be reached this weekend.

This would likely lead to the reopening of the Strait of Hormuz, a vital shipping route that carries 20% of the world’s oil and gas.

The ongoing oil shock has contributed to resurgent inflation and three interest rate increases in Australia this year.

The Reserve Bank will announce the next interest rate decision on Tuesday.

It may seem counterintuitive that signs of economic weakness boosted ASX 200 retail shares last week.

But remember, share markets tend to look six to 12 months into the future.

Thus, economic weakness today is pushing retail stocks up as investors anticipate a greater likelihood of interest rate cuts.

Let’s see how some individual retail stocks performed last week.

Consumer discretionary shares led the ASX sectors last week

The Wesfarmers Ltd (ASX: WES) share price leapt 9.55% over the short trading week to finish at $86.47.

Shares in gaming technology company Aristocrat Leisure Ltd (ASX: ALL) rose 5.07% to $53.91.

The Lottery Corporation Ltd (ASX: TLC) share price soared 8.81% to $5.68.

The Light & Wonder Inc (ASX: LNW) share price ripped 9.8% higher to $127.26.

JB Hi-Fi Ltd (ASX: JBH) shares ascended 7.6% to finish the week at $77.24.

The Harvey Norman Holdings Ltd (ASX: HVN) share price increased 7.88% to $4.79.

Temple & Webster Group Ltd (ASX: TPW) shares soared 13.09% to $5.27.

The Nick Scali Limited (ASX: NCK) share price rocketed 11.71% to $15.46.

Eagers Automotive Ltd (ASX: APE) shares rose 7.06% to $22.29.

The Super Retail Group Ltd (ASX: SUL) share price lifted 8.39% to $12.27.

Lovisa Holdings Ltd (ASX: LOV) shares surged 8.66% to $22.20 apiece.

ASX 200 travel share Flight Centre Travel Group Ltd (ASX: FLT) edged 0.36% higher to $11.07.

The Guzman Y Gomez Ltd (ASX: GYG) share price lifted 3.63% to $19.40.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the shortened trading week:

S&P/ASX 200 market sector	Change last week
Consumer Discretionary (ASX: XDJ)	8.05%
Consumer Staples (ASX: XSJ)	7.62%
A-REIT (ASX: XPJ)	4.95%
Healthcare (ASX: XHJ)	3.33%
Industrials (ASX: XNJ)	3.23%
Utilities (ASX: XUJ)	2.86%
Communications (ASX: XTJ)	2.51%
Financials (ASX: XFJ)	1.05%
Materials (ASX: XMJ)	0.79%
Energy (ASX: XEJ)	(0.07%)
Information Technology (ASX: XIJ)	(4.58%)

The post Why did ASX 200 retail shares outperform last week? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc, Lovisa, Super Retail Group, Temple & Webster Group, The Lottery Corporation, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Harvey Norman and Super Retail Group. The Motley Fool Australia has recommended Eagers Automotive Ltd, Flight Centre Travel Group, Light & Wonder Inc, Lovisa, Temple & Webster Group, The Lottery Corporation, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I love the idea of ASX dividend shares that pay their shareholders every single month. It means income-focused investors can depend on a reliable passive income stream paid on a regular basis.

Here are my four top monthly-paying ASX shares. One of them yields as high as 9.7%.

Plato Income Maximiser Ltd (ASX: PL8)

Plato is a listed investment company (LIC) that targets income-focused investors, including retirees and SMSF investors. It actively manages a portfolio of mature ASX-listed equities, cash, and listed futures but focuses its attention on major ASX dividend shares with strong dividend payouts.

Plato is long-standing too. It was the first Australian LIC to target monthly dividends to its shareholders, which it has paid consistently since 2017. Since April 2022, it has paid consistent fully-franked dividends of 0.55 cents per share every month. That comes to an annual running total of 6.6 cents per share in fully-franked passive income, which translates to a dividend yield of around 4.8% at the time of writing.

Betashares Dividend Harvester Active ETF (ASX: HVST)

Betashares HVST ETF invests in 40 to 60 dividend-paying companies selected from the top 100 largest shares listed on the ASX. It selects these companies based on their dividend forecasts, franking credits, and expected future gross dividend payments.

As of the 29th of May, the HVST ETF pays a 12-month gross distribution (dividend) yield of 7.4%, and a net yield of 5.8%. Its franking level is 63.2%, and it has an annual management fee of 0.72%. HVST ETF has paid around $0.06 per share since January 2024, and is due to pay its shareholders $0.06 cents per share to investors next week. 

BetaShares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX)

The Betashares YMAX ETF is an ASX-listed exchange-traded fund (ETF) that gives its shareholders exposure to the 20 largest blue-chip shares listed on the ASX. The fund is heavily weighted into the financial sector, which accounts for 57% of its allocation at the time of writing. The materials sector is second, accounting for 25% of its allocation.

The fund moved to monthly payouts earlier this year after previously paying shareholders a quarterly dividend. As of the 29th of May, YMAX ETF has a 12-month gross distribution yield of 9.7%, and a net yield of 8.2%. The total franking level of 41.3%.

The fund is due to pay its shareholders a $0.04 per share dividend next week. It also paid $0.04 per share in May and April.

Metrics Master Income Trust (ASX: MXT)

The Metrics Master Income Trust is a listed investment trust (LIT), which holds a portfolio of corporate loans and private credit investments rather than a portfolio of other ASX dividend shares, an area currently dominated by regulated banks. Metrics Master Income Trust targets a return of the Reserve Bank cash rate plus 3.25% p.a. (net of fees) through every stage of the economic cycle.

Its latest payout was 1.37 cents per share unfranked in April, payable next week. That means that over the past 12 months, Metrics Master Income Trust has paid out 12 dividends totalling around 16 cents per share. At the time of writing, this gives the LIT a dividend yield of around 8.3%.

The post 4 ASX shares that pay a monthly dividend to shareholders appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I think asking how much superannuation you need for retirement is a bit like asking how much luggage you need for a holiday.

It depends where you are going, how long you plan to stay, whether you like five-star hotels or budget motels, and whether you are the type of person who packs extra pairs of shoes just in case.

Retirement works the same way. There is no single perfect number that suits everyone. But there are useful guideposts that can help you work out whether you are heading towards comfort, compromise, or something in between.

What kind of retirement are you imagining?

This is the question many people skip. They look for a magic superannuation number before thinking about what they actually want retirement to look like.

Do you want regular holidays? Private health insurance? A reliable car? Money for restaurants, hobbies, gifts for the grandkids, and replacing the fridge when it finally gives up?

Or are you happy with a simpler lifestyle, where most essentials are covered but extras are limited?

These are very different retirements, and they require very different super balances.

The comfortable retirement number

According to the Association of Superannuation Funds of Australia (ASFA), a comfortable retirement at age 67 currently requires around $630,000 in super for a single person and $730,000 for a couple.

This assumes you own your home outright and receive some Age Pension support over time.

A comfortable retirement is not about living extravagantly. It is about having breathing room.

It means being able to afford private health insurance, run a reasonable car, enjoy leisure activities, maintain your home, travel occasionally, and deal with unexpected bills without every expense becoming a crisis.

In other words, it is the kind of retirement where money still matters, but it does not dominate every decision.

The modest retirement number

ASFA also estimates that a modest retirement requires around $110,000 for a single person and $120,000 for a couple.

At first glance, that might sound surprisingly low. But there is a reason for it. At this level, the Age Pension does much of the extra work.

A modest retirement is still better than relying on the Age Pension alone, but it comes with clear limits. There is less room for travel, fewer luxuries, tighter budgeting, and less flexibility if something unexpected happens.

It is a workable retirement for many Australians, but it is not the same as a comfortable one.

Home ownership

There is one very important detail in these numbers: they assume you own your home outright.

A retiree who owns their home has a very different financial life from someone renting or still paying a mortgage. Housing costs can completely change the retirement equation.

This is why two people with the same superannuation balance can have very different experiences. One might feel comfortable, while another feels stretched, simply because their housing costs are different.

So, what is the real answer?

The honest answer is this: if you want a comfortable retirement, aim for around $630,000 as a single person or $730,000 as a couple.

If you are expecting a more modest lifestyle and will rely heavily on the Age Pension, the required superannuation balance may be much lower.

But the better answer is that your number depends on your spending, your housing situation, your health, your relationship status, and how much flexibility you want.

Retirement is not just a maths problem. It is a lifestyle problem with maths attached.

Foolish takeaway

So, how much superannuation do you actually need for retirement?

For comfort, the answer is roughly $630,000 for singles and $730,000 for couples. For a more modest lifestyle, the number is much lower, but so is the flexibility.

The important thing is understanding what your balance is meant to do.

Super is not just a pot of money. It is your future pay packet, your safety net, and the thing that helps decide whether retirement feels restricted or relaxed.

And that makes knowing your number one of the most important financial steps you can take.

The post How much superannuation do I actually need for retirement? appeared first on The Motley Fool Australia.

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• Don’t forget to consider this key superannuation strategy before 30 June
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) shares are one of the most popular ASX dividend options because of the company’s strength, market leading position, dividend yield and passive income payouts.

The ASX mining share typically has a good dividend yield, though sometimes Rio Tinto Ltd (ASX: RIO) and often Fortescue Ltd (ASX: FMG) have a higher dividend yield.

BHP’s dividend has bounced around over the last decade with significant shifts in resource prices over time.

In the company’s FY26 half-year result, the business hiked its annual dividend per share by 46% to US 73 cents following a 28% rise of the net profit to US$5.6 billion.

In this article, we’re going to look at the potential annual FY27 dividend, which will be paid during 2027.

2027 dividend projection for owners of BHP shares

According to the projection on Commsec, the ASX mining share is projected to pay an annual dividend per share of A$2.113 in the 2027 financial year.

At the time of writing, this forecast translates into a dividend yield of 3.5% excluding franking credits and 5% including franking credits.

If someone were to invest $8,000 in BHP, they would be able to buy 133 BHP shares (with a little bit of money left over).

With those 133 BHP shares, investors could receive $281.03 of cash and perhaps $120.44 of franking credits.

Is this a good time to invest in the ASX mining share for passive income?

According to CMC Invest, there have been 15 recent analyst ratings calls on the business in the last three months.

Of those 15 ratings, one was a buy and the other 14 were holds. So, the investment professionals are almost entirely neutral on the company’s valuation right now.

The average price target of those 15 analyst ratings is $57.43. That means, collectively, those analysts are predicting the BHP share price will (at the time of writing) fall a little over the next year.

Over the past year, the BHP share price has been below $36 and above $64, so analysts are expecting the company to hold onto its gains from the last year, but not deliver any more. The dividend could play an important part in whether BHP shares deliver a positive return or not in the next 12 months.

However, with low/negative returns on offer (at the time of writing), according to the price target, there seem to be more compelling ASX shares out there to buy.

The post If I invest $8,000 in BHP shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

More reading

• New to ASX ETFs? These 4 products could be a good start
• Are BHP shares a good buy for passive income?
• Why is the BHP share price so volatile this week?
• Time to cash out? Why this expert is bearish on Goodman and BHP shares
• Is this ASX mining stock a better buy than BHP shares?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.