If you’re ready to retire, or perhaps already have, you may be looking to invest some of your hard-earned superannuation savings to provide an annual passive income stream.
While there are a few ways you could go about this, I believe the best means to achieving an extra $20,000 of passive income a year from superannuation is by investing in quality ASX dividend shares.
We’ll look at two ASX dividend gems below you may wish to buy today.
They both currently pay market beating yields.
And while one has seen a modest share-price retracement over the past year, the other has gained. (Share prices as of 19 August.)
That’s important, because when you’re looking for ASX shares offering higher dividend yields, you’ll often find this is because their share prices have cratered in recent months. Which in turn often means that their future dividend payouts will be coming down as well.
Now before we dive in, do be aware that the yields you generally see quoted are trailing yields. Future passive income payouts may be higher or lower depending on a range of company specific and macroeconomic factors.
With that saidâ¦
Two ASX dividend shares for a $20,000 superannuation income stream
Our first ASX dividend gem is Helia Group Ltd (ASX: HLI).
Shares in the S&P/ASX 200 Index (ASX: XJO) lenders mortgage insurance (LMI) provider were recently trading for $5.72. That sees the Helia share price up around 1% over the past year.
As for the passive income on offer from your superannuation investment, Helia paid (or shortly will) two partly franked dividends and a special dividend over the past year, totalling $1.26 per share.
At the recent share price, that sees this ASX 200 dividend stock trading at a partly franked trailing yield (including that special dividend) of 22%.
The second ASX dividend gem I’d invest my superannuation savings in for passive income is Fortescue Ltd (ASX: FMG).
At the recent share price of $18.12, Fortescue shares are down 7.8% in 12 months. But I believe the ASX 200 mining giant can return to capital growth along with paying regular dividends.
Over the last 12 months, Fortescue paid two fully franked dividends totalling $1.22 per share.
At the recent Fortescue share price, that ASX 200 mining stock trades on a fully franked trailing dividend yield of 6.7%.
How much to invest for $20,000 of passive income?
Based on the trailing yields, and assuming you invest an equal amount in both ASX dividend gems, you could expect to see a yield of 14.3%.
To secure a $20,000 annual passive income stream, you’d then need to invest $139,860 of your superannuation savings today.
The post 2 ASX dividend gems I’d buy for a $20,000 superannuation income boost appeared first on The Motley Fool Australia.
Should you invest $1,000 in Fortescue right now?
Before you buy Fortescue shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Fortescue wasn’t one of them.
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And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 1 August 2026
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More reading
- 8 ASX shares just upgraded by the experts
- Buy, hold, sell: Fortescue, Northern Star, and Megaport shares
- Are Fortescue shares in the buy zone after its results?
- Everything you need to know about the new Fortescue dividend
- Why is the Fortescue share price on a rollercoaster today?
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.