The amount of money you need in your superannuation to retire at age 65 depends nearly entirely on the type of retirement lifestyle you want to live, how long you live beyond retirement, and whether or not you own your home outright.

The ultimate goal for any soon-to-be retiree is to live a comfortable lifestyle after they stop working.

That’s one where you can maintain a good standard of living, including top-level private health insurance and regular leisure activities. It would also allow you to own a reasonable car, have funds set aside for home repairs, and the occasional meal out. An annual domestic trip could also be on the cards.

How much does a comfortable retirement cost?

Thanks to rising inflation and the cost of living, the Association of Superannuation Funds of Australia (ASFA) raised the benchmarks for both a modest and a comfortable retirement earlier this year. 

The increase serves as a stark reminder that long-term returns from markets like the S&P/ASX 200 Index (ASX: XJO) play an important role in building retirement savings.

To live a comfortable retirement lifestyle at age 65, individuals can expect to spend around $54,840 a year, and couples can expect closer to $77,375 a year. 

How much do I need in my superannuation to fund that retirement lifestyle?

To fund the level of spending needed to live comfortably, you’ll need a superannuation balance of around $630,000 for a single person, or $730,000 for a couple.

But these figures assume you retire at age 67 and will need to fund around 11.5 years of retirement for a single person or 9.5 years for a couple.

They also assume that you own your home outright, that Australians will draw down all their capital at retirement, and that they will receive a part Age Pension.

The problem is, this isn’t a reliable figure for Australians who want to retire two years earlier (at age 65) or those who aren’t eligible for the Age Pension.

What if I want to retire at age 65, rather than age 67?

If you want to retire two years earlier, you’ll need to fund an extra two years (or more) of retirement.

Using the figures above, that means a single person would need a superannuation balance of around $740,340, and a couple would need around $890,000.

And also remove the Age Pension payment. What do I need then?

ASFA’s calculation assumes retirees will receive a part Age Pension. It’s quite difficult to calculate exactly what that would be here because it varies so wildly depending on your income and the value of your assets.

So let’s calculate this using the maximum basic rate for the Age Pension as an example. 

As of the 20th of March this year, the Age Pension has a maximum basic rate of $1,100.30 per fortnight for singles and $1,658.80 combined for a couple. 

That totals $28,607.80 for singles over the course of a year, and $43,128.80 for couples.

Assuming you need to fund 11.5 years and 9.5 years of retirement, respectively, this would add a total of $328,989 for singles and just shy of $410,000 for couples over and above the figures we calculated above.

So the answer is…

The superannuation balance you actually need at 65 to retire without the age pension is around $1.07 million for singles, and $1.3 million combined for couples.

The post The superannuation balance you actually need at 65 to retire without the Age Pension appeared first on The Motley Fool Australia.

More reading

• 5 years ago, $10,000 bought 111 CBA shares. But how many would it buy now?
• Here are the top 10 ASX 200 shares today
• ASX 200 drops again. This is what’s starting to worry investors
• EVT flags FY26 EBITDA growth amid hotel strength and portfolio changes
• NEXTDC launches $750m wholesale notes to boost growth funding

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.

Global Lithium Resources Ltd (ASX: GL1) this week announced a major funding deal with a Chinese company, which has the analyst team at Shaw and Partners taking notice.

Shaw and Partners this week reiterated its buy rating on the ASX lithium stock, albeit with a high-risk rating, and also reiterated its share price target, which we’ll get to shortly.

Firstly, let’s have a look at what the company announced.

Major Chinese deal

Global Lithium Resources said in its statement to the ASX that it had struck a “transformational” funding deal with Chinese company Jiangsu Lopal Tech. Group Co., which is a battery materials producer listed on the Shanghai and Hong Kong stock exchanges.

Lopal has agreed to make a $7.32 million equity investment in the company, as well as providing an offtake prepayment of US$75 million, “which will accelerate the development of the 100% owned Manna Lithium Project in Western Australia”.

Global Lithium Resources also agreed to sell its interest in the Marble Bar Lithium Project to Lopal for $14.85 million.

Global Lithium Resources Managing Director Dr Dianmin Chen said the arrangements with Lopal represented “a pivotal advancement in the Manna Lithium Project toward a final investment decision on its development”.

He added:

The arrangements with Lopal provide a robust initial contribution to fund Manna’s future development, securing critical long-term customer relationships and validating the demand for Manna’s substantial and high-quality lithium resource.

Under the agreement, Lopal will take 40% of the Manna Lithium Project’s annual production, which is expected to be about 70,000 tonnes of spodumene per annum.

Combined with an existing offtake agreement with Canmax Technologies Co., 70% of the project’s production is now accounted for.

The investments are not subject to approval by the Foreign Investment Review Board, the company said.

Shares looking cheap

Shaw and Partners said in its note to clients that the deal was a positive for the company.

We continue to forecast EV demand catalysed by the Iran War as a decisive factor underpinning a shift in the lithium market from surplus to deficit by the end of this year. Despite rising prices, lithium supply growth will remain constrained, and this is very positive for both the lithium price and lithium equities. Global Lithium remains one of our preferred lithium developers in a market that is getting tighter by the day. We reiterate our Buy recommendation and discounted cash flow-based $1.50 price target.

Shaw and Partners noted the company would have $137 million in cash following the conclusion of the new agreement.

Global Lithium Resources shares were changing hands for 57.5 cents on Friday, well below Shaw’s $1.50 target price.

The company is valued at $149.9 million.

The post This ASX lithium company could more than double in value one broker says, after a “transformational” funding deal appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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.

Although they outperformed the S&P/ASX 200 Index (ASX: XJO) this week, Wesfarmers Ltd (ASX: WES) shares have been struggling in 2026.

Shares in the diversified ASX 200 conglomerate – whose retail subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks and Priceline – closed on Friday trading for $73.71.

That saw the stock close the week up 1.2%, outpacing the 2.2% losses posted by the benchmark index over this same time.

Still, Wesfarmers shares remain down 9.8% year to date, trailing the 0.3% gains delivered by the ASX 200 so far this calendar year.

Although that underperformance will have been partly mitigated by the $1.02 a share in fully franked dividends the company paid to eligible stockholders on 31 March. Wesfarmers stock trades on a 3.4% fully franked trailing dividend yield.

But with the ASX 200 stock coming under pressure this year, is Wesfarmers now trading for a bargain, or could it have further to fall?

Should you buy Wesfarmers shares today?

Red Leaf Securities’ John Athanasiou recently analysed the outlook for Wesfarmers stock (courtesy of The Bull).

“Wesfarmers is a diversified industrial conglomerate,” he said. “Major retail brands include Bunnings, Kmart, Target and Officeworks.”

However, Athanasiou sees headwinds building for Wesfarmers shares.

“Its businesses are household names, but recent trading suggests slowing consumer demand and cost pressures are weighing on sentiment,” he said.

Summarising his sell recommendation, Athanasiou concluded:

With much of its value already priced in amid a mixed outlook on near term retail growth, Wesfarmers lacks fresh catalysts to drive meaningful upside. Trimming positions into strength may be prudent for investors seeking a better risk-reward proposition.

What’s the latest from the ASX 200 conglomerate?

The last price sensitive news for Wesfarmers shares was the company’s half year results release (H1 FY 2026) on 19 February.

Highlights included a 3.1% year-on-year increase in revenue to $24.21 billion. And earnings before interest and tax (EBIT) of $2.49 billion were up 8.4% from H1 FY 2025.

On the bottom line, the company reported a net profit after tax (NPAT) of $1.60 billion, up 9.3%.

Commenting on the results, Wesfarmers managing Director Rob Scott said:

During the half, Wesfarmers’ divisions benefited from productivity initiatives to navigate ongoing challenging market conditions…

The divisions performed well, driving productivity to mitigate cost pressures and keep prices low for customers.

Amid high market expectations, and taking note of those ‘cost pressures’, Wesfarmers shares closed down 5.6% on the day of the results release.

The post Wesfarmers shares: Buy, hold or sell? 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 positions in and has recommended Wesfarmers. 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.

Cochlear Ltd (ASX: COH) shares have been hit hard this week, with one of the biggest sell-offs seen in the ASX healthcare sector in recent years.

At Friday’s close, Cochlear shares finished at $97.35, down roughly 43% over the past week. That move has pulled the stock back to levels last seen in early 2016.

The question now is whether this is a reset that creates opportunity, or a signal that something more fundamental has changed.

Here’s what investors are weighing up.

What triggered the sell-off

The decline follows a major downgrade to its FY26 earnings guidance.

Cochlear now expects underlying net profit to be $290 million to $330 million. That is well below its previous guidance range of $435 million to $460 million.

The downgrade reflects weaker conditions across developed markets.

Management flagged softer demand for cochlear implants, driven by hospital capacity constraints and lower referral activity. Consumer sentiment has also weakened, particularly in key markets like the United States.

There are also operational pressures. Industrial action in parts of Europe has delayed procedures, while some regions are seeing longer waiting lists for surgery.

Is this a short-term issue or something deeper?

This is where the debate sits.

On one hand, many of these pressures look cyclical rather than structural. Hospital capacity and referral volumes can recover over time. Consumer sentiment also tends to move in cycles.

Cochlear’s long-term drivers are still in place. The business operates in a global market supported by ageing populations and increasing diagnosis rates. It also has a strong competitive position, with high switching costs and a large installed base that generates recurring revenue over time.

That is why, even after the recent volatility, the company is still widely viewed as a high-quality healthcare name.

But on the other hand, the latest update challenges one key area.

Demand in developed markets now appears more sensitive to economic conditions than previously thought. That adds uncertainty to earnings and makes forecasting harder.

It also raises questions about how much of Cochlear’s premium valuation can be justified if growth remains uneven.

What the market is pricing in now

The speed of the sell-off suggests investors have moved quickly to price in weaker growth and lower confidence.

At current levels, the valuation has shrunk significantly from where it sat earlier this year.

That changes the risk-reward profile.

After a sharp correction, the balance is no longer about paying up for quality. It is about whether earnings stabilise and recover from here.

We have seen similar setups across the market recently, where heavy selling has created potential opportunities even as the underlying businesses remain strong.

Foolish takeaway

Cochlear’s share price fall shows a clear change in earnings expectations and confidence.

The long-term drivers remain, but near-term visibility is weaker, and demand looks more cyclical than before.

At these levels, the stock may start to attract interest from long-term investors.

But much of the next move will depend on whether conditions in key markets can begin to stabilise.

The post After falling 43% in a week, are Cochlear shares now a buy? appeared first on The Motley Fool Australia.

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• How high could Cochlear shares bounce back? Brokers disagree
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• 2 ASX 200 shares newly upgraded this week

Motley Fool contributor Aaron Teboneras 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 Cochlear. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

How much would you need to invest in ASX stocks to generate an income similar to the Age Pension?

Using Harvey Norman Holdings Ltd (ASX: HVN) as an example, we can actually put a clear number on that.

How much is the Age Pension?

First, let’s confirm the benchmark.

For a single person, the full Age Pension currently totals $1,200.90 per fortnight based on the latest government figures. That works out to $31,223.40 per year.

Now let’s see how that compares to dividend income.

Turning an ASX dividend stock into a pension-like income

According to CommSec, Harvey Norman is expected to pay fully franked dividends of 31 cents per share in both FY26 and FY27.

At the time of writing, the Harvey Norman share price is trading at $4.54. This means that it is offering a potential dividend yield of around 6.8%, before franking credits.

To generate $31,223.40 per year from dividends alone, you would need approximately 100,720 shares.

Based on that requirement and its current share price, this implies an investment of roughly $457,269 into the ASX dividend stock.

Why I still think Harvey Norman is worth a look

Of course, income is only part of the story.

Harvey Norman has been sold off heavily in recent months, which is a big reason the dividend yield now looks so attractive. But the underlying business still has a few levers working in its favour.

One is its international expansion. The company continues to open new stores in markets like the UK, Malaysia, and parts of Europe, which provides a pathway for growth beyond Australia.

Another is its property portfolio. Harvey Norman owns a significant amount of retail real estate, which adds a layer of asset backing and long-term value that is easy to overlook.

There is also some support from the broker community. Bell Potter currently has a buy recommendation on the ASX dividend stock with a $6.70 price target. This suggests almost 50% potential upside on top of the income.

Foolish takeaway

If you are trying to replicate the income of the Age Pension using dividends, you would need around 100,720 Harvey Norman shares, or roughly $457,000 at today’s price.

That puts into perspective the level of capital required to fully replace a government income stream.

Even so, for investors who are building toward that goal over time, high-yield ASX dividend stocks like Harvey Norman can play a role.

However, income investors should always ensure that they have a balanced and diversified investment portfolio, and not put all their eggs in one basket.

The post 100,720 shares of this high-yield ASX dividend stock pay income equal to the Age Pension appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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 positions in and has recommended Harvey Norman. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Commonwealth Bank of Australia (ASX: CBA) share price is an important element of the ASX share market.

It’s the biggest ASX bank share, the biggest household lender, a position in many retiree portfolios, a major position in big super’s portfolios and the largest contributor to the Vanguard Australian Shares Index ETF (ASX: VAS). Many Australians are invested in it directly or indirectly.

It’s clear that the last five years has been a good time to be a CBA shareholder. We’re going to look at just how good.

The great performance on the CBA share price

Commonwealth Bank has risen by approximately 94% in the last five years, as of the time of writing. That compares to a 25% rise for the S&P/ASX 200 Index (ASX: XJO). Clearly, CBA has smashed the ASX 200 this decade.

I wouldn’t expect CBA to outperform the ASX 200 as much as that over the next five years.

If I had invested $10,000 in CBA shares five years ago, I would have been able to buy 111 CBA shares, with a bit of change left.

These days, if I invested $10,000 into CBA shares, I’d be able to buy 57 CBA shares, with some change. In other words, we’d only be able to buy close to half the number of shares today as five years ago. That makes sense, considering the CBA share price has close to doubled.

Why has Commonwealth Bank risen so much?

I think there are two key factors that would explain this huge gain for the bank.

Firstly, it has delivered a pleasing level of profit growth. The latest result from the ASX bank share was the FY26 half-year result.

In that recent report, the company revealed statutory net profit and cash net profit of approximately $5.4 billion. It was helped by lending and deposit volume growth in its core businesses. Commonwealth Bank also declared an interim dividend of $2.35 per share.

However, five years ago, CBA reported in its HY21 result that it generated $4.88 billion of statutory net profit and $3.89 billion of cash net profit. That result was impacted by the low interest rate environment and COVID-19 impacts. The HY21 interim dividend per share was $1.50 per share.

Therefore, over that five-year period, statutory net profit has risen 11%, while cash net profit has gone up around 40%. The dividend per share has increased 57% in that time.

So, in terms of the core profit generation (cash net profit), the profit growth does justify a rise in the CBA share price.

The rest of the rise in the CBA share price has essentially been the rise in the price/earnings (P/E) ratio because the market is valuing the bank’s earnings at a much higher multiple.

According to the projection on Commsec, the CBA share price is valued at 26x FY26’s estimated earnings. This is not too far off its all-time high in terms of the P/E ratio.

Time will tell how it performs over the next five years, but I’m not thinking of an ever-rising P/E ratio is likely, so profit growth will be key.

The post 5 years ago, $10,000 bought 111 CBA shares. But how many would it buy now? appeared first on The Motley Fool Australia.

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• EVT flags FY26 EBITDA growth amid hotel strength and portfolio changes
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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 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 finance stock Moneyme Ltd (ASX: MME) jumped earlier this week after the ASX finance company said it had hit profitability during the quarter on growth in its loan book.

Strong growth figures

The company said in a statement to the ASX that it had generated new loan originations of $325 million in the third quarter of the financial year, which was up 43% on the previous corresponding period and up 18% on the second quarter of FY26.

The company’s loan book grew by $150 million to $1.9 billion, up 29% on the previous corresponding period, “reaching the scale required to achieve normalised net profit after tax profitability”, the company said.

Revenue for the quarter came in at $62 million, up 17% on the previous corresponding period, with net credit losses reducing to 2.6%.

Moneyme Managing Director Clayton Howes said it was a key milestone for the company, and added:

The third quarter marked a step-change in performance, with originations increasing by $50m quarter-on quarter and the loan book reaching $1.90bn. This represents an inflection point, delivering a positive Normalised NPAT in the quarter, with revenue growth outpacing costs and driving operating leverage. Despite interest rate and inflation pressures, our credit performance remains strong with loss rates declining as we continue to focus on secured vehicle finance and high credit quality segments. This, alongside a predominantly variable interest rate loan book enables us to absorb these market pressures, maintain risk adjusted NIM, and price effectively for capital preservationWe continue to capture market share in under-served segments through fast, innovative and well-priced products and outstanding customer service. At the same time, our multi-product strategy is gaining traction, with momentum building in credit cards. The launch of our Cashback Rewards Credit Card and upcoming white-label partnership with Luxury Escapes will expand access to millions of potential customers. While credit card growth may have a near-term impact on profitability, it is expected to deliver meaningful margin expansion as the portfolio scales.

Mr Howes said the company’s funding structure was a key strength, “with a robust corporate facility and strategic partnership with iPartners delivering favourable terms, including a 75-basis point reduction in funding costs that further supports growth and margin outcomes”.

Moneyme also during the quarter launched its own new credit card and entered into a white label credit card partnership with Luxury Escapes.

Shares looking cheap

Moneyme shares traded as high as 9.9 cents higher on Wednesday (up more than 16%) when its quarterly results were announced, before settling back over the week to be changing hands for 8.8 cents apiece on Friday.

Morgans has a price target of 21 cents on Moneyme shares.

The company is valued at $71.5 million.

The post Morgans sees 2x upside in ASX finance stock after hitting key milestone appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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.

Building wealth for retirement doesn’t have to mean picking individual stocks or timing the market perfectly. For many investors, ASX exchange-traded funds (ETFs) offer a simpler path, broad diversification, low fees, and exposure to long-term growth trends.

If the goal is to bring retirement a little closer, a well-chosen mix of ASX-listed ETFs can do much of the heavy lifting.

SPDR S&P/ASX 200 ETF (ASX: STW)

A core holding to consider is the SPDR S&P/ASX 200 ETF. This ASX ETF tracks the Australian share market, giving investors exposure to leading companies across sectors like banking, mining, and healthcare.

The main holdings of this fund are currently Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP), which account for almost 11% each. It also offers income through dividends, making it a solid foundation for long-term investors.

iShares S&P 500 ETF (ASX: IVV)

To complement that, global diversification is essential. The iShares S&P 500 ETF provides exposure to the 500 largest US companies, including major technology and consumer giants.

This adds a powerful growth engine, tapping into innovation trends that aren’t as prominent locally.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

For broader international exposure beyond the US, the Vanguard MSCI Index International Shares ETF spreads investments across developed markets like Europe and Japan. This reduces reliance on any single economy and helps smooth returns over time.

Investors looking to tilt further toward growth could also consider the BetaShares Nasdaq 100 ETF (ASX: NDQ). This ASX ETF focuses on leading technology companies listed on the Nasdaq. Shares like NVIDIA Corp (NASDAQ: NVDA) offer higher growth potential, though with more volatility along the way.

SPDR S&P/ASX 200 Listed Property Fund (ASX: SLF)

Income still plays an important role in retirement planning. The SPDR S&P/ASX 200 Listed Property Fund provides exposure to Australian real estate investment trusts (REITs), which can generate regular income while offering long-term capital growth.

So how does this mix work together?

It creates balance. Australian equities provide income and stability. Global ASX ETFs add diversification and growth. Property introduces another income stream and asset class. Together, they help manage risk while keeping the portfolio positioned for long-term returns.

Over time, consistency matters more than short-term market movements. Regular investing, reinvesting dividends, and staying invested through volatility can significantly improve outcomes.

The key advantage of ETFs is simplicity. Instead of trying to pick winners, investors gain exposure to entire markets in a single trade. That makes it easier to stay disciplined and focused on the bigger picture.

No strategy guarantees early retirement. But a diversified ASX ETF portfolio like this can provide a strong foundation, one that steadily builds wealth and helps bring financial independence within reach.

The post Want to fast-track retirement? These ASX ETFs could get you there appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended BHP Group, Nvidia, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Given that interest rates are rising in Australia again, it could be a good time to look at ASX shares with higher dividend yields.

If we’re going to invest in ASX shares for passive income, I’d want to ensure we’re getting an attractive payout. We don’t necessarily need a dividend yield of more than 7% to call it an appealing investment.

But, the two ASX shares below are ones that I believe can offer large dividend yields in the short-term and payout growth in the long-term.

Charter Hall Long WALE REIT (ASX: CLW)

This is one of the most appealing real estate investment trusts (REITs) in my opinion because it offers a combination of yield, security and diversification.

The ASX share is invested across a variety of areas including service stations, pubs and hotels, telecommunication exchanges, data centres, distribution centres and plenty more. I don’t think there’s a better REIT for sector diversification on the ASX.

This business can provide pleasing security within its portfolio because it’s looking to maintain a portfolio of investments that have long rental contracts. In other words, the REIT has a long weighted average lease expiry (WALE). The WALE currently stands at around nine years.

That high-quality rental income is steadily growing, with the income benefiting from fixed annual indexation or rental increases linked to inflation. That’s a pleasing, natural tailwind for the business.

In FY26, the ASX share has guided that it expects to increase its annual distribution per unit by 2% to 25.5 cents. Any growth in the current environment is good, in my view. That forward distribution translates into a dividend yield of 7.2%, at the time of writing.  

WCM Global Growth Ltd (ASX: WQG)

The other ASX share I want to highlight is a listed investment company (LIC) that is one of the most effective choices, in my view, for both passive income and some capital growth.

Excitingly, WCM pulls its ideas from across the global share market, which gives the LIC great diversification and helps it unlock strong returns. The global economy has a much larger addressable market than Australia and New Zealand, so it’s pleasing when a business is targeting international growth.

Many of the businesses inside the WCM Global Growth portfolio have multinational/global ambitions, giving them a longer growth runway and the potential to earn stronger returns than ASX blue-chip shares.

The ASX share aims to find businesses with strengthening competitive advantages, which is supported by a corporate culture that can help those businesses grow their profitability and market position.

WCM Global Growth now pays a dividend every quarter to shareholders and that payment has been increasing each quarter. Its annual dividend has increased each year since 2019.

The next four guided quarterly dividends are expected to come to a total of 9.3 cents per share, which translates into a grossed-up dividend yield of 7.5%, including franking credits.

The post 2 ASX shares with dividend yields above 7% appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Wcm Global Growth. 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.

Treasury Wine Estates Ltd (ASX: TWE) shares have had a tough year.

At the current share price, they are down roughly 50% from a 52-week high of $9.18.

While there is still a lot of work to be done, when I look at where things stand today, I think this is one worth considering.

A business going through a reset

There is no getting around the fact that the last year has been difficult for the wine giant.

Earnings pressure, weaker demand in some markets, and broader industry challenges have all weighed on performance. That has also impacted dividends, with the market currently expecting no payout in FY26.

That may understandably put some income investors off in the short term.

However, I think it is important to separate what is happening now from where the business could be heading.

An update this week points to improving momentum in some key markets. Depletions have returned to growth in the US and remain strong in China, while the company is also rolling out changes to improve execution.

If that continues, the earnings profile could begin to rebuild from here.

Income potential returning over time

Looking ahead, dividend expectations start to recover.

According to CommSec, consensus estimates point to partially franked dividends of 15 cents per share in FY27 and 24 cents per share in FY28.

At the current share price, that would imply a forward dividend yield of around 3.3% in FY27, rising to over 5.3% in FY28, before considering franking credits.

That is where I think the opportunity starts to become more interesting.

You are not buying this for immediate income. You are buying it with the expectation that income returns as the business recovers.

There is more than just income here

I also do not think this is purely an income story.

Treasury Wine Estates still owns a portfolio of premium brands, with Penfolds remaining a key driver. There are also signs of improving demand in markets like China, alongside better momentum in the US.

At the same time, the company is restructuring its operations, which could support margins and efficiency over time.

There is also the balance sheet to consider. Recent refinancing activity has strengthened liquidity, giving the company greater flexibility as it navigates this period.

When I put that together, I see an ASX dividend stock trying to reset rather than one in decline.

Foolish takeaway

Treasury Wine Estates is not the simplest ASX dividend stock to buy right now.

There may be no income in FY26, and it may take time for earnings to rebuild.

But looking further ahead, dividends are expected to return and grow, and the share price is already reflecting a lot of the recent challenges.

For investors who are willing to be patient, I think this could be a dividend stock worth considering after a 50% sell-off.

The post 1 ASX dividend stock down 50% I’d buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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 Treasury Wine Estates. The Motley Fool Australia has positions in and 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.