136,191 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension

The Australian Age Pension is one of the most generous in the world, though there are a few high-yield ASX dividend stocks I’d rather rely on for income, such as Telstra Group Ltd (ASX: TLS).

Some businesses look compelling to me as options because of their resilience and their ability to deliver passive income growth that outpaces inflation.

Telstra is best known as the leading telecommunications business in Australia with its mobile, broadband, enterprise and infrastructure divisions.

If we’re looking at the Age Pension in terms of an income target, it’s approximately $28,600 annually with the maximum basic rate for a single person.

With that goal in mind, let’s take a look at the potential dividend income from the high-yield ASX dividend stock that I want to point out.

Dividend projections

The most important metrics that investors may want to know relate to the dividend.

I’m going to look at analyst projections for Telstra for the 2026 financial year.

According to the projection on Commsec, the high-yield ASX dividend stock is forecast to pay an annual dividend per share of 21 cents per share in FY26.

If the company does pay that dividend, it would represent year-over-year growth of 10.5%, which I’d say is a very pleasing increase.

At the time of writing, the current Telstra share price could yield approximately 5.3%, including franking credits. In my view, that’s a great starting point, and the business could continue hiking its annual dividend for the foreseeable future.

Currently, the projection on CommSec implies the high-yield ASX dividend stock could grow its FY27 payout by another 2.4% to 21.5 cents per share.

I should note that the business could deliver its pleasing dividend while continuing to invest in its mobile network.

How many Telstra shares are needed?

To generate $28,600 of annual grossed-up dividend income (excluding franking credits) based on the FY26 annual dividend, an investor would need 136,191 Telstra shares.

That would be a major investment, so I’d really suggest investors not to put all of their portfolio money into Telstra shares. Diversification is an important element for a dividend portfolio.

Why I’d buy Telstra shares for passive income

Telstra is the clear market leader in Australia, and this gives the ASX dividend stock both a strong pull for new subscribers and the ability to raise prices that other Australian telcos are not able to do as easily.

Australia is becoming increasingly digital and many of these devices need an internet connection, which is a strong long-term tailwind. Australia’s growing population is another tailwind.

I think its track record this decade gives me confidence that the company will deliver more growth than the Age Pension over the rest of the decade.

The post 136,191 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

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