A superannuation balance of $950,000 is significantly higher than the Australian national average for all age groups.

It also comfortably exceeds what the Association of Superannuation Funds of Australia (ASFA) determines is necessary for a comfortable retirement.

It’s a solid amount of money to support a good retirement lifestyle, but there is an additional bonus. A balance as high as $950,000 can also generate a great passive income from ASX dividend shares.

Here’s how much you could earn.

What passive income could a $950,000 superannuation balance generate?

To calculate your potential annual passive income, you need to multiply your total superannuation balance by the overall dividend yield of your portfolio.

But obviously, the answer changes depending on what that yield is.

Generally, as your yield goes up, the passive income you can earn off the same balance also increases.

Break it down for me by yield

If your portfolio is low-yielding, at around 3%, you’ll be able to earn around $28,500 per year in passive income. That’s because $950,000 x 3% = $28,500 in dividend payments.

There are lots of stable options around this level. Investment bank Macquarie Group Ltd (ASX: MQG) yields around 3%, as does banking giant Commonwealth Bank of Australia (ASX: CBA) and conglomerate Wesfarmers Ltd (ASX: WES).

Then, if you increase your yield closer to 4%, you could earn a little more. A $950,000 portfolio could generate around $38,000 per year at this yield.

There are still lots of great options around the 4% level. Think mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO), or telcos like Telstra Group Ltd (ASX: TLS). Some of the other major banks, including National Australia Bank Ltd (ASX: NAB) and ANZ Group Holdings Ltd (ASX: ANZ) also yield around this level at the time of writing.

If you can raise your yield higher towards 5%, your passive income would increase to around $47,500 every year. 

My top 5% yielding ASX shares would be defensive infrastructure companies like Transurban Group Ltd (ASX: TCL) or Dalrymple Bay Infrastructure Ltd (ASX: DBI). 

Raise your portfolio’s yield even higher to 6% and you could earn a $57,000 annual dividend income off the same superannuation portfolio. That’s a decent passive income!

Around this level, I’d lean towards shares like APA Group Ltd (ASX: APA) or AGL Group Ltd (ASX: AGL). These both have a long history of paying long term reliable dividends to shareholders and they also yield around the 6% level.

Can’t I just invest in the highest yield stock I can find so I can earn more off my superannuation balance?

There are dividend shares available which pay much higher yields, some which even exceed over 15%. 

But remember, the general rule is that the higher the yield, the more volatility and risk associated with that stock.

When it comes to ASX dividends, high-yielding shares could be cyclical businesses that fluctuate significantly with market cycles, niche companies with strong cash conversion, or perhaps they have discounted share prices. 

It doesn’t mean high-yield shares should be avoided, but instead, they should be part of a diversified portfolio.

The post How much passive income can I earn from a $950,000 superannuation balance? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Telstra Group, and Transurban Group. The Motley Fool Australia has recommended BHP Group, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Do you have $15,000 to invest?

If you do and don’t enjoy picking individual stocks, then it could be worth considering the exchange traded funds (ETFs) in this article.

They can be particularly attractive because they allow investors to access entire markets or investment strategies through a single trade.

With that in mind, here are three top ASX ETFs that investors could consider buying this October.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF could be a good option for investors who want to combine quality and value.

The fund invests in US companies that have sustainable competitive advantages, or economic moats.

These advantages can come from things such as powerful brands, high switching costs, cost advantages, intellectual property, or network effects.

It is worth noting that simply having a strong business isn’t enough to make the portfolio. The strategy also looks for companies trading at attractive prices relative to their fair value.

This means that rather than automatically owning the biggest companies in the market, the fund is trying to identify businesses capable of protecting their profits from competition while avoiding excessive valuations.

That could make the VanEck Morningstar Wide Moat ETF a top option for buy and hold investors.

iShares Global Consumer Staples ETF (ASX: IXI)

Another ASX ETF to look at is the iShares Global Consumer Staples ETF.

This fund provides investors with access to consumer staples stocks from around the world.

These are businesses selling products people tend to buy regardless of what is happening with the economy, including food, beverages, household goods, and personal care products.

That can make the sector quite different from areas such as technology or discretionary retail, where demand can move around significantly as economic conditions change.

This combination of recurring demand and global operations could make the iShares Global Consumer Staples ETF a strong choice for investors looking for a more defensive form of international exposure.

Vanguard FTSE All-World ex-US Shares Index ETF (ASX: VEU)

A final ASX ETF for investors to consider buying is the Vanguard FTSE All-World ex-US Shares Index ETF.

As its name implies, this fund invests across developed and emerging markets around the world, but deliberately leaves the United States out.

This could make it a good way to access parts of the global share market that can sometimes receive less attention than Wall Street.

It also means investors gain exposure to different industries, economic cycles, and sources of growth.

For those looking for a broad international investment without relying on US stocks, the Vanguard FTSE All-World ex-US Shares Index ETF could be worth a closer look.

The post Where to invest $15,000 in ASX ETFs in October appeared first on The Motley Fool Australia.

More reading

• 10 top ASX ETFs to watch in 2027
• 5 ASX ETFs for Aussie investors to buy and hold for 20 years
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• Why I’d invest $50,000 of superannuation into these 3 top ASX ETFs
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Motley Fool contributor James Mickleboro has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The upcoming share market listing of data centre company Firmus is shaping up to be the biggest float since Telstra Group Ltd (ASX: TLS) went public back in the 1990s, and the company’s valuation is living up to the hype.

Recent reports indicate that the Firmus initial public offer has been priced at $11 per share, valuing the company at $43.7 billion.

And while you can’t buy Firmus shares just yet, you can get exposure by buying into Maas Group Holdings Ltd (ASX: MGH).

Diversified services company leans into AI

Maas Group has been buying up Firmus shares in recent years and now owns 3.2% of the company.

Maas Group Chair Stephen Bizzell told the company’s recent annual general meeting that the company had made a considered investment in AI.

He said:

During the year and subsequent to financial year end, Maas took meaningful steps to increase its exposure to next-generation infrastructure. This included a strategic investment in Firmus Grid Limited, securing significant electrical infrastructure work supporting the development of AI and data infrastructure in Australia through JLE Group, and the acquisition of commercial property with power availability and grid proximity for future digital and energy infrastructure developments. These initiatives, together with the proposed Construction Materials divestment, represent a clear evolution in the Group’s strategic direction.

AI driving a higher valuation

Macquarie has released a new research report into Maas Group, with a conservative valuation for the company’s Firmus stake.

The broker said that the $43.7 billion valuation of Firmus implied a value of $4 per share for Maas Group’s holding, but it was currently only ascribing $1.42 per share in its valuation of the company.

Macquarie added:

MGH is in a period of transition after divesting the construction materials business and accelerating growth in its civil construction and hire and electrical businesses. Further contract awards and updates in this segment (including Firmus IPO), and strategic M&A, will be catalysts.

Macquarie increased its price target on Maas Group shares from $6.75 to $8.15, up from the current $6.76.

Maas Group also announced this week that the divestment of the construction materials business had formally been completed, and it had been paid $1.61 billion.

The company also remains entitled to receive contingency payments of up to $120 million, subject to the achievement of agreed commercial and operational milestones.

Macquarie said the deal gave Maas Group “substantial capital flexibility”, which was reflected in the company’s shareholders approving a buyback of up to 20% of its shares.

Maas Group is valued at $2.53 billion.

The post Buy this ASX share to get exposure to the Firmus IPO 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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.