There is a wide range of ASX dividend stocks offering different levels of dividend yields.

Some businesses are able to provide a high dividend yield because of a mixture of a relatively low price-earnings (P/E) ratio and a generous dividend payout ratio.

I’d put listed investment companies (LICs) into a somewhat separate category of ASX dividend stocks because they generate profits differently from other businesses.

Instead of selling goods or services, a LIC makes money by generating returns by investing in shares. LICs can then build up accounting profits, paying out a portion each year and retaining some of the gains (with a profit reserve in accounting terms) for when markets aren’t performing.

The LIC I want to highlight is WAM Microcap Ltd (ASX: WMI). I think it’s a strong ASX dividend stock pick for three reasons.

Impressive investment returns

A key element of LIC’s success has been its focus on buying “the most exciting undervalued growth opportunities” in the Australian microcap market.

ASX small-cap shares can deliver great returns because of how early on in their growth journey they are. It’s usually much easier for a business to double its revenue from $10 million to $20 million than it is to go from $1 billion to $2 billion.

WAM Microcap is very effective at generating returns thanks to its investment style and the size of the businesses it deals with. Between inception in June 2017 and February 2026, the portfolio return was an average of 15.4% per year, outperforming the small-cap benchmark by around 7% per year, before fees, expenses and taxes.

The WAM strategy is to invest in growing businesses where there’s a catalyst that could send the share price higher.

That level of return means the ASX dividend stock is capable of delivering a large dividend and capital growth for the LIC.

Large and growing dividend yield

The LIC has been steadily growing its annual payout each year since FY18 – the only year it hasn’t increased its payout was FY24, when it was maintained at 10.5 cents per share.

In FY26, the LIC is expecting to increase its annual payout by 1% to 10.7 cents per share.

Therefore, the ASX dividend stock could provide a grossed-up dividend yield of around 10.25%, including franking credits, at the time of writing.

That’s a great starting dividend yield, in my view, and it could continue to grow.

Sizeable profit reserve

One of the key reasons WAM Microcap can be such a stable dividend payer is that it has built up a sizeable profit reserve to pay future dividends.

At 27 February 2026, it had built up a profit reserve of 55.4 cents per share. That means it has the accounting profits to pay around five years of dividends at the current level, even if it didn’t make any more profit in that time.

I think this ASX dividend stock is a very appealing business, and it looks like a good time to buy after dropping 13% since mid-January 2026.

The post This ASX dividend stock has a 10% yield and I think it’s a buy appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares with yields above 7%
• How to invest $10,000 to aim for a 15% dividend yield
• 2 star ASX dividend income stocks for March 2026

Motley Fool contributor Tristan Harrison has positions in Wam Microcap. 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.

Wouldn’t it be nice to start again and build an ASX share portfolio from scratch?

No legacy holdings. No past mistakes. Just a clean slate and all the experience you’ve gained along the way.

If I had to build an ASX share portfolio from scratch today, I wouldn’t rush into stock picking. I’d start with a solid foundation, then layer in quality and growth.

Start with ETFs

First, I’d allocate around 35% to broad, low-cost ETFs. Why? Instant diversification. Lower risk. Less guesswork.

One core holding would be Vanguard Australian Shares ETF (ASX: VAS). It tracks a broad index of ASX shares, giving exposure to banks, miners, and industrials. Top holdings include Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).

To balance that, I’d add global exposure through iShares S&P 500 ETF (ASX: IVV). This ETF gives access to the world’s largest companies, including Apple Inc (NASDAQ: AAPL) and Nvidia Corp (NASDAQ: NVDA).

Together, these ETFs create a strong base. You’re exposed to both local income and global growth.

Add defensive income

Next, I’d layer in defensive, dividend-paying stocks in my ASX share portfolio. These provide stability and a consistent income.

Telstra Group Ltd (ASX: TLS) is a classic choice. It offers essential services, resilient earnings, and fully-franked dividends. Demand for connectivity doesn’t disappear in tough times.

Then there’s ASX share Transurban Group (ASX: TCL). Its toll road assets generate steady, long-term cash flows. It is infrastructure investors can rely on.

These types of businesses won’t always deliver explosive growth. But they help smooth out volatility — and keep income flowing. I would allocate 30% of my funds to defensive ASX shares.

Build around growth leaders

Finally, I’d allocate the remaining 35% to high-quality ASX growth shares. These are market leaders with strong tailwinds.

CSL Ltd (ASX: CSL) would be high on the list. It’s a global biotech leader with a long track record of innovation and earnings growth.

And I’d add NextDC Ltd (ASX: NXT). This ASX share is riding the surge in data demand, cloud computing, and AI infrastructure.

These companies aren’t the cheapest. But they have scale, competitive advantages, and long runways for growth.

Foolish bottom line

Building an ASX share portfolio from scratch isn’t about chasing the hottest stock.

It’s about balance. Start with ETFs for diversification. Add defensives for stability and income. Then layer in growth leaders to drive long-term returns.

Get that mix right, and you give yourself the best chance of compounding wealth. No matter what the market throws at you.

The post Building an ASX share portfolio from scratch? Here’s my game plan appeared first on The Motley Fool Australia.

More reading

• Should I invest $10,000 into CSL shares? Yes or no
• ASX chaos? Here’s how to invest smart, stay calm and win
• 2 ASX shares I’d buy if the market fell another 10%
• Forget Telstra shares! Buy this fast-rising ASX 200 telco stock instead
• Which ASX ETFs have Aussies traded most since the Iran war began?

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 Apple, CSL, Nvidia, Transurban Group, and iShares S&P 500 ETF and is short shares of Apple. The Motley Fool Australia has positions in and has recommended Telstra Group and Transurban Group. The Motley Fool Australia has recommended Apple, BHP Group, CSL, Nvidia, 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.

With the market experiencing heightened volatility in 2026, a number of high-quality names are trading below their recent highs.

While disappointing for existing shareholders, this weakness could give the rest of us a chance to build positions in companies with strong long-term potential.

Here are three Australian share ideas that could be worth considering with a $2,500 investment right now.

Pro Medicus Ltd (ASX: PME)

The first Australian share that continues to stand out is Pro Medicus.

Rather than competing across the entire healthcare software landscape, the company has focused on doing one thing exceptionally well. Its imaging platform is designed for speed and efficiency, which has helped it win contracts with some of the world’s largest healthcare providers.

This focus has allowed it to build a premium product that commands strong margins and long-term contracts. Once embedded, its software becomes difficult to replace, giving the business a durable revenue base.

With healthcare systems increasingly prioritising productivity and workflow improvements, Pro Medicus appears well placed to continue expanding its footprint.

REA Group Ltd (ASX: REA)

Another Australian share that could be a smart pick is REA Group.

It has built a dominant position in online property listings, but what makes it particularly interesting is how it continues to deepen its role in the property ecosystem.

Beyond listings, REA is increasingly monetising its audience through data-driven products, advertising solutions, and financial services. This allows it to extract more value from each property transaction without needing a large increase in listings volumes.

Even in softer property markets, this model can support growth by lifting yields per listing and expanding into adjacent services.

With strong brand recognition and a highly engaged user base, REA remains a powerful platform business.

TechnologyOne Ltd (ASX: TNE)

A final Australian share to consider is TechnologyOne.

The enterprise software provider has been quietly building momentum through its transition to a cloud-based model. This shift is changing the shape of its revenue, making it recurring and predictable over time.

Rather than chasing rapid expansion, TechnologyOne has focused on steadily increasing its customer base across government, education, and corporate sectors.

This disciplined approach has supported consistent growth while maintaining profitability, which is relatively rare among software companies.

As more organisations move their operations to the cloud, TechnologyOne’s long-standing relationships and industry-specific solutions could continue to drive adoption.

The post Top Australian shares to buy right now with $2,500 appeared first on The Motley Fool Australia.

More reading

• Are we in the middle of a once-in-a-lifetime chance to buy cheap ASX shares?
• 2 ASX shares I’d buy if the market fell another 10%
• Down 65%: Are Pro Medicus shares in the buy zone yet?
• Where to invest $10,000 in ASX shares right now
• The ASX healthcare stocks with the biggest upside according to brokers

Motley Fool contributor James Mickleboro has positions in Pro Medicus, REA Group, and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The lower share prices we’re seeing in March 2026 means opportunities galore for investors who want to buy businesses at cheaper prices, including ASX dividend shares.

I don’t know how long the market will be feeling pessimistic about the Middle East and oil price situation – it could be days, weeks or even longer. Time will tell.

I prefer to buy at a better valuation while the opportunity is there, which is why I decided to pounce on the following ASX dividend at the start of this week.

MFF Capital Investments Ltd (ASX: MFF)

MFF is one of the larger listed investment companies (LICs) on the ASX, with a focus on quality international companies with above-average capabilities to compound earnings at a good speed over time. I don’t usually invest in international shares directly, so I like using this as a dividend-paying option to get that exposure.

I think the MFF investment strategy has been very effective, as demonstrated by the fact that MFF has delivered an average total shareholder return (TSR) of 15.3% per year over the last five years, according to CMC Invest. Of course, past performance is not a guarantee of future performance.

One of the advantages of the LIC investment structure is that the board of directors have control over what size dividend they want to declare. The business is currently increasing its half-year payout by 1 cent per share every six months.

MFF plans to pay an annual dividend per share of 21 cents in FY26, which translates into a forward grossed-up dividend yield of 6.5%, including franking credits, at the time of writing.

I thought the dip in the MFF share price was appealing, offering better underlying value and a stronger dividend yield.

I expect the ASX dividend share to continue increasing its payout over time and owning high-quality businesses to help deliver capital growth.  

L1 Long Short Fund Ltd (ASX: LSF)

This is another LIC, which invests in a mixture of ASX shares and international shares, utilising a mixture of investing for the long-term and short selling.

I like how it has a track record of producing investment returns primarily through resource shares, industrial shares and communication shares. There are various ways to produce good returns, including in cyclical shares.

L1 likes to look at businesses that have lower price/earnings (P/E) ratios, which I think other investors may sometimes overlook. Under-researched and unloved ASX shares can be a smart choice to deliver good returns.

In the last five years, the ASX dividend share has returned a total shareholder return average of 16.5% per year over the last five years, according to CMC Invest. Again, past performance is not a guarantee of future performance.  

Pleasingly, the LIC has been steadily increasing its payout each year since 2021 and its latest two quarterly dividends for the FY26 half-year period was 13.6% higher than the FY25 half-year dividend. It currently has an annualised grossed-up dividend yield of 5.25%, including franking credits, at the time of writing.

I’m expecting the ASX dividend share to continue increasing its payout thanks to the large profit reserve it has built and the investment strategy it’s using.

The post I invested thousands into these 2 ASX dividend shares this week appeared first on The Motley Fool Australia.

More reading

• You won’t believe this ASX stock’s dividend growth
• The smartest ASX dividend stocks to buy with $10,000 right now
• Why I just invested in these 2 exciting ASX shares
• Why I’m betting big on these 2 ASX shares in the age of AI

Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund and Mff Capital Investments. 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 Mff Capital Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

As March draws to a close, I find myself doing what I often do at this time of year: stepping back, reviewing my portfolio, and asking a simple question. Where do I want my money working from here?

But I’m not trying to predict what April will bring. Markets can move for all sorts of reasons in the short term. I’m thinking about what I would be happy to hold for the long term.

Right now, there are two ASX exchange-traded funds (ETFs) on my watch list. 

Each could play a different role in a portfolio, and together I believe they offer a compelling mix of quality, growth, and global diversification.

VanEck MSCI International Quality ETF (ASX: QUAL)

One of the hardest parts of investing, in my experience, is consistently sticking to high-quality businesses. It is easy to get distracted by hype or short-term opportunities. That is where I believe this ETF really earns its place.

The VanEck MSCI International Quality ETF systematically filters for stocks with strong returns on equity, stable earnings, and sensible balance sheets. In other words, it focuses on businesses that are already doing a lot of things right.

But what appeals to me most is not just the end result. It is the process.

I like knowing that there is a rules-based approach constantly refining the portfolio, keeping it tilted toward financially strong companies without me having to make those calls myself.

Of course, you end up with familiar global leaders in the mix. But I think the real value lies in the consistency of the quality filter over time. Personally, I see this as a core building block. It is the part of a portfolio I would feel most comfortable holding through volatility without second guessing.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

I think it is very easy as an Australian investor to end up overly exposed to a handful of familiar markets. Australia. The United States. Maybe a bit of Europe. 

But when I look ahead 10 or 20 years, I find it hard to believe that growth will be concentrated only in those regions.

That is why I think the Vanguard FTSE Asia Ex-Japan Shares Index ETF is well worth considering.

This ETF gives exposure to a wide range of Asian economies, from China and India through to Taiwan and South Korea. And what I find compelling is the diversity within that region.

You have advanced semiconductor manufacturing, rapidly expanding middle classes, digital platforms with enormous user bases, and economies still earlier in their growth journey compared to the West.

I do not see this as a short-term trade. In fact, I think it requires patience. There will likely be periods of volatility, particularly given geopolitical and economic uncertainties.

But if I am investing with a long-term mindset, I believe having meaningful exposure to Asia is not just an option. It is something I want to build over time.

Foolish takeaway

As I head into April, I am not trying to make bold, all-or-nothing bets.

Instead, I am thinking about how to steadily build a portfolio of ASX ETFs that I would be comfortable holding for years.

For me, these two ETFs tick all the boxes and could move from my watch list to my portfolio next month.

The post Why I’m seriously thinking about buying these ASX ETFs in April appeared first on The Motley Fool Australia.

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• Why I’d buy VGS and these Vanguard ETFs right now

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 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.

It has been a tough period for CSL Ltd (ASX: CSL) shares.

The biotechnology giant’s shares ended the week at $143.19, which leaves them trading close to multi-year lows.

Is this an opportunity to invest $10,000 into the fallen giant? Let’s take a closer look.

Why are CSL shares down?

There is no single reason behind CSL’s recent weakness. Instead, it has been a combination of factors weighing on sentiment.

The biggest source of frustration has been CSL Behring, the company’s core plasma therapies business. Margin recovery has taken longer than expected since the pandemic.

At the same time, its Seqirus vaccines business has faced softer demand, particularly in the United States, where influenza vaccination rates have come in below expectations.

China has also added to the pressure. Demand for albumin products has been weaker, which has impacted volumes at a time when investors were already becoming more cautious.

On top of this, the sudden exit of its CEO and its most recent result did little to calm nerves. A recent Morgans note commented:

1HFY26 result was softer and less clean than expected, with adjusted NPATA declining 7% and revenue modestly below forecasts. The result was further complicated by US$1.1bn in impairment charges, largely relating to Vifor and Seqirus, weighing on statutory earnings and sentiment.

Is this a buying opportunity?

Despite all of the above, there are reasons to believe CSL’s long-term story remains intact.

Demand for its life-saving therapies is not cyclical in the same way many other industries are. Plasma-derived treatments are essential for patients around the world, and that demand is expected to grow steadily over time.

The company also continues to invest heavily in research and development, which supports a pipeline of new therapies and future revenue streams. This has been a key driver of its success over decades and is likely to continue being the case long into the future.

Importantly, many of the current challenges appear operational rather than structural. Cost pressures, vaccine demand fluctuations, and China weakness may weigh on near-term results, but they are not necessarily permanent.

If its new CEO can execute on its recovery plans, CSL’s earnings growth could begin to normalise again over the coming years.

So, yes or no?

For investors with a long-term mindset, I think the answer is yes.

Morgans certainly thinks that is the case. In its note, it adds:

Importantly, FY26 guidance was maintained, despite Behring weakness and heightened scrutiny following the announced CEO transition, suggesting a 2H recovery, pointing to an execution reset, not structural impost, in our view. The outlook looks supported through a combination of cost-outs, marketing initiatives, new product launches and diminishing headwinds, reinforced by the Board’s urgency around operational delivery. We adjust FY26-28 forecasts modestly, with our PT decreasing to A$241.34. BUY.

Based on the current share price, Morgans price target implies potential upside of almost 70%.

All in all, CSL shares are not without risks and patience will likely be required. But with its shares trading well below historical levels and the business still underpinned by strong global demand, this could be a compelling buying opportunity.

The post Should I invest $10,000 into CSL shares? Yes or no appeared first on The Motley Fool Australia.

More reading

• ASX chaos? Here’s how to invest smart, stay calm and win
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• Here are the top 10 ASX 200 shares today
• Here’s one reason why experts think the CSL share price can rise 65%!

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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 it comes to retirement, your superannuation balance plays a major role in determining whether you will have a comfortable retirement.

But are Australians aged 55 and 65 on track for this? Let’s find out.

What is the average superannuation balance at 55 and 65?

Before comparing super balances at different ages, it is important to understand what those balances are ultimately trying to achieve.

According to the Association of Superannuation Funds of Australia (ASFA), a comfortable retirement allows Australians to do far more than just cover the basics.

It includes running a car, maintaining private health insurance, enjoying meals out, staying connected with family and friends, and taking occasional holidays. Based on the latest data (September 2025 quarter), this lifestyle requires annual spending of around $54,840 for singles and $77,375 for couples.

To support that level of income, ASFA estimates retirees need approximately $630,000 in superannuation for singles and $730,000 for couples. This assumes they own their home outright and are in relatively good health.

With that benchmark in mind, how do Australians compare at key ages like 55 and 65?

What does the average 55-year-old have?

Using the latest available data, Australians aged 55–59 hold average super balances of approximately $242,945 for women and $319,743 for men. Those aged 50-54 have $190,175 and $254,071, respectively.

Based on this, it is fair to assume that the average 55-year-old woman has approximately $217,000 and the average 55-year-old man has approximately $287,000.

This is a critical stage. Retirement is approaching, but there’s still time for contributions and compounding to do meaningful work.

And with a decade or so left until pension age, the average couple appears on track for a comfortable retirement if they continue building on what they currently have. This assumes ongoing contributions, stable positive returns, and no major drawdowns.

What about at age 65?

As you would expect, Australians aged 65 hold significantly higher balances, averaging around $350,000 for women and $422,000 for men.

This increase reflects a decade of additional contributions, investment returns, and, in many cases, peak earning years. It highlights just how powerful the final stretch before retirement can be.

And while the average single person would fall short of target for a comfortable retirement, the average Australian couple has achieved it.

55 vs 65: what the gap tells us

The difference between 55 and 65 is significant.

Over that 10-year period, average super balances increase by well over $100,000. That’s not just due to contributions, it is also the result of compounding returns building on an already larger base.

It reinforces a key point: the years leading up to retirement are some of the most important for wealth accumulation.

What if you’re behind?

If you are behind the curve at 55, this is the perfect time to make some changes to your trajectory.

This could mean making extra contributions (concessional super contributions are taxed at 15%) or changing funds if yours is consistently underperforming.

The main thing to remember is that actions taken at 55 (and earlier) can make a huge difference to your life at 65. So, acting sooner than later is always the smart thing to do.

The post The average Australian superannuation balance in 2026: 55 vs 65 year olds 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 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.

The Australian share market has been anything but calm in 2026.

Sharp swings have become the norm, with growth stocks leading the declines. Concerns around artificial intelligence (AI) disrupting business models, rising interest rates, high oil prices, and geopolitical tensions have all weighed heavily on sentiment.

For many investors, this kind of environment feels uncomfortable. But history suggests it can also create some of the best opportunities with ASX shares.

Market selloffs often create opportunities

Periods of uncertainty tend to push share prices lower, sometimes well beyond what fundamentals would justify.

We are seeing this play out right now. A number of high-quality ASX shares have fallen significantly despite continuing to grow their earnings and expand their market positions.

This disconnect between price and underlying performance is often where long-term investors find value.

While it is impossible to pick the exact bottom, buying during periods of weakness has historically delivered strong results over time.

Fear is driving short-term decisions

A big part of the current ASX share selloff is being driven by fear rather than fundamentals.

Artificial intelligence is a good example. While there are legitimate questions about how it will impact certain industries, many businesses are also benefiting from it or adapting quickly.

At the same time, rising interest rates are putting pressure on valuations, particularly for growth companies. But these cycles are not new and markets have navigated similar environments before.

When sentiment is negative, investors often focus too heavily on risks and ignore long-term potential.

Quality businesses are trading at better prices

One of the most important things to watch during a selloff is whether the underlying businesses are still performing.

In many cases, they are.

ASX shares like Goodman Group (ASX: GMG), REA Group Ltd (ASX: REA), and Xero Ltd (ASX: XRO) continue to benefit from strong industry positions and long-term growth drivers. Yet their share prices have come under pressure alongside the broader market.

This creates a more attractive entry point for investors who believe in their long-term outlook.

Timing the market matters less than time in the market

Trying to wait for the perfect moment to invest is rarely successful.

Markets can turn quickly, often before the broader outlook improves. By the time confidence returns, many of the best opportunities are gone.

This is why strategies such as gradual investing or dollar-cost averaging can be effective during volatile periods.

By investing consistently, investors can take advantage of lower prices without needing to predict short-term movements.

So, is this a rare buying opportunity?

While it may not be possible to say this is the exact bottom, the current environment does have many of the characteristics seen during past buying opportunities.

High-quality ASX shares are trading below their highs, sentiment is weak, and uncertainty is elevated.

For investors with a long-term mindset, that combination has often led to strong returns over time.

It may not feel like it in the moment, but periods like this are often when the foundations for future wealth are built.

The post Are we in the middle of a once-in-a-lifetime chance to buy cheap ASX shares? appeared first on The Motley Fool Australia.

More reading

• 3 high-quality Australian stocks I would buy and hold for a decade
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• Why Brazilian Rare Earths, L1 Group, Silver Mines, and Xero shares are dropping today

Motley Fool contributor James Mickleboro has positions in Goodman Group, REA Group, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Looking to bag an extra $10,000 a year in passive income from a blue-chip ASX share?

Then you may want to have a look into National Australia Bank Ltd (ASX: NAB) shares.

On the reliability front, the S&P/ASX 200 Index (ASX: XJO) bank stock has paid out two fully-franked dividends every year for more than a decade now. And that includes the pandemic-addled year of 2020.

Atop that welcome passive income, NAB shares have also delivered benchmark-smashing capital gains.

At the time of writing, the NAB share price is $41.96. That sees NAB shares up 23% in 12 months and up 60.3% in five years. That’s well ahead of the 6.5% one-year and 24.4% five-year gains posted by the ASX 200.

And remember, that’s not including those twice-yearly NAB dividends.

With that in mind, we’ll dig into how many NAB shares you’d need to buy today for a $10,000 annual passive income in a tick.

But first, a few important reminders.

Don’t put all your eggs in one basket

First, while we’re looking at the income potential of NAB shares, do note that a diversified passive income portfolio contains much more than just one ASX dividend stock. There’s no magic number. But somewhere in the range of 10 to 20 is a good ballpark, ideally operating in various sectors and locations.

This will reduce the risk of your passive income stream taking a big hit if any particular company or sector runs into a rough patch.

Also, take note that the dividend yields you generally see are trailing yields. Future yields may be higher or lower depending on a range of company-specific and macroeconomic factors.

For NAB, this includes the bank’s risk management and cost controls. It also includes the future path of interest rates and the broader performance of the Australian economy.

With that said…

Banking on NAB shares for a $10,000 annual passive income

NAB paid a fully-franked interim dividend of 85 cents a share on 2 July. The ASX 200 bank paid its final fully-franked dividend, also 85 cents a share, on 12 December.

That works out to a full-year passive income payout of $1.70 per share.

So, for that extra $10,000 a year, you’d need to buy 5,883 shares today.

How much would that cost?

At the price of $41.96 a share at the time of writing, you’d need to invest $246,851 in NAB shares today to target that $10,000 yearly passive income stream.

Now that’s a sizeable chunk to invest at one go. But that’s okay. Investing is a long game.

You can also invest a smaller amount on a regular basis, and you’ll reach your income goals in good time.

NAB shares trade on a fully-franked trailing dividend yield of 4.1%.

The post How many NAB shares do I need to buy for $10,000 a year in passive income? appeared first on The Motley Fool Australia.

More reading

• Which ASX bank has the biggest dividend yield?
• Why NAB shares are slipping today despite a major business reset
• Buy, hold, sell: NAB, Pro Medicus, and Telstra shares
• ASX bank stocks: Buy, sell, or hold?
• How have the ASX big four bank shares held up in March?

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.

When I think about building long-term wealth, I believe it comes down to owning the right businesses and then simply holding them.

Not trading in and out. Not trying to time the market. Just identifying high-quality Australian stocks with competitive advantages and letting them compound over time.

If I were putting fresh money to work today with a 10-year mindset, these are three ASX 200 names I would be very comfortable buying and holding for the long haul.

Goodman Group (ASX: GMG)

I think Goodman Group is one of the best ways to gain exposure to some of the most powerful structural trends in the global economy.

At its core, Goodman is a property and infrastructure business. But I believe it is much more than a traditional REIT. It is increasingly a developer and owner of critical infrastructure for the digital economy.

What really stands out to me is its growing exposure to data centres. These assets are becoming essential as cloud computing, artificial intelligence (AI), and data usage continue to surge globally. Goodman is already committing significant capital to this space, with data centres making up a large portion of its development pipeline and a global “power bank” that gives it a strategic advantage in securing future projects.

I also like that it is operating in supply-constrained, high-quality urban locations. That tends to support pricing power and long-term asset values.

Importantly, its balance sheet is very strong, which I think gives management the flexibility to keep investing through cycles.

For me, this is not just a property play. I see it as a long-term infrastructure compounder tied to the growth of e-commerce, logistics, and digital infrastructure.

Netwealth Group Ltd (ASX: NWL)

Netwealth is an Australian stock that I believe is one of the clearest beneficiaries of the long-term shift toward platform-based investing and adviser-led wealth management.

What I really like is how consistently the financial services technology company has been taking market share. Funds under administration have been growing strongly, supported by steady inflows and increasing adoption by financial advisers.

To me, that speaks to the strength of its platform and the value it provides to clients.

But what makes Netwealth particularly compelling, in my view, is its technology edge.

The company continues to invest heavily in its platform, data capabilities, and increasingly in AI. I think this matters more than ever in financial services, where efficiency, personalisation, and integration are becoming key differentiators.

There is also a powerful network effect at play. As more advisers and clients join the platform, it becomes more valuable, which can help drive further growth.

Breville Group Ltd (ASX: BRG)

Appliance manufacturer Breville is another Australian stock I rate highly.

What I like most is that Breville is not competing on price. It is competing on quality, design, and innovation. That shows up in its ability to generate consistent revenue growth, driven by new product development, premium positioning, and expansion into new markets.

I also think its global growth opportunity is still underappreciated.

The brand is well established in markets like Australia and the US, but it is still gaining traction in newer regions. The company has been expanding into places like China, the Middle East, and other international markets, and early signs have been encouraging.

Another thing I find interesting is how management is leaning into technology and even AI across the business. That tells me this is not a company standing still. It is actively trying to improve operations, marketing, and product development.

Of course, consumer discretionary businesses can be cyclical. But Breville’s focus on the coffee market, premium products, and brand strength seems to provide some resilience, even in tougher environments.

Over a decade, I think that combination of brand, innovation, and global expansion could deliver very attractive returns.

Foolish Takeaway

If I am buying Australian stocks to hold for a decade, I want businesses with clear competitive advantages, strong management teams, and long growth runways.

For me, these stocks tick these boxes. Goodman Group offers exposure to the digital infrastructure boom, Netwealth provides a high-quality platform business benefiting from structural industry shifts, and Breville brings a premium global consumer brand with plenty of expansion potential.

The post 3 high-quality Australian stocks I would buy and hold for a decade appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Breville, Goodman, and Wesfarmers shares

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 Goodman Group and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.