Centuria Industrial REIT (ASX: CIP) is one of the high-yield ASX dividend stocks I’d be very happy to rely on for passive income rather than receive the Age Pension.  

While the ASX share market is a great place to find ideas that can help deliver passive income, there are relatively small number of names I’d be willing to significantly invest in.

This real estate investment trust (REIT) is one of the names I really like.

There is an appeal to REITs because of how defensive and predictable their income is, as rental income is contracted with tenants. REITs like this one have a range of high-quality tenants including Telstra Group Ltd (ASX: TLS), Woolworths Group Ltd (ASX: WOW), Arnott’s, AWH, Visy and Fantastic Furniture.

Why this ASX dividend stock is more appealing

The Centuria Industrial REIT owns a portfolio of high-quality industrial properties that are located in high-demand areas where the vacancy rate is low. This is helping drive up the rental income potential of the properties.

Another benefit of this investment is that owning all of these industrial properties, the ASX dividend stock offers investors significant asset backing, providing pleasing downside protection. The Age Pension does not have a large asset base that can be sold.

It’s also delivering good rental growth compared to many other property sectors. Industrial property is benefiting from tailwinds like e-commerce adoption, the onshoring of supply chains and data centres.

In the first half of FY26, the business reported 5.1% like-for-like net operating income (NOI) growth, which is a good growth rate for a REIT, in my view. Excitingly, the business reported that its portfolio was 20% under-rented, which suggests strong rental growth as contracts come up for renewal in the coming years – the business currently has a weighted average lease expiry (WALE) of more than six years.

The business grew its FY26 distribution by 3% year-over-year, which is a solid rate of growth amid higher interest rates. Over the longer-term, I think the business could have a very compelling future.

The final thing I’ll note is that the business is trading at a very large discount to its underlying value, which is measured as the net tangible assets (NTA) per unit. At December 2025, it had NTA of $3.95 per unit – that means it’s trading at a discount of close to 25%.

How many shares I’d need to match the Age Pension

Currently, the maximum Age Pension that an Australian can receive is around $31,200 per year.

Based on the FY26 annual payout of 16.8 cents per security, that level of passive income translates into a forward distribution yield of 5.6% (at the time of writing).

To receive $31,200 of annual income, an investor would need 185,715 Centuria Industrial REIT shares. While that would be a huge investment for most Australians, I’d be happy to make that purchase because of how cheap it is and what it can offer passive-income investors.

But, it’s not the only high-yield ASX dividend stock I’d buy for dividends.

The post 185,715 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.

Zip Co Ltd (ASX: ZIP) shares were among the standout performers on Wednesday.

The buy now, pay later (BNPL) provider surged 8.5% to $3.20, comfortably outperforming the S&P/ASX 200 Index (ASX: XJO), which rose just 0.4%.

The rally extends Zip’s gain over the past month to 19%. While the shares remain down about 2% year to date, they’re now up roughly 13% over the past 12 months.

So, what’s suddenly got investors excited?

America is the prize

A big part of the optimism centres on Zip’s growing US business.

The company has spent several years investing heavily in expanding both its customer base and product offering across America, which has become its largest market.

That’s a market investors simply can’t ignore. Compared with Australia, the US buy now, pay later market remains relatively under-penetrated, giving Zip a sizeable runway for future growth as more consumers and merchants embrace flexible payment options.

Management of Zip shares has also been busy strengthening its distribution network. Late last year, Zip expanded its partnership with Stripe, allowing merchants using the payments platform to seamlessly offer Zip’s services at checkout.

It’s a meaningful opportunity. Stripe serves millions of businesses globally, giving Zip access to a huge pool of potential merchants without having to knock on every door individually.

UBS believes that Zip shares could have a strong finish to FY 2026, with robust transaction growth in the key US market. According to a recent note, the broker has been pleased to see that US consumer spending has been resilient despite global uncertainty.

The numbers are finally backing the story

For years, investors questioned whether BNPL companies could generate sustainable profits.

Zip is starting to answer that question. Over the past several quarters, management has tightened lending standards, controlled costs, and shifted its focus firmly towards profitability.

Those efforts are paying off. In its third-quarter FY26 update, Zip upgraded its group cash EBITDA guidance to at least $260 million, up from previous guidance of around $248.6 million.

That’s exactly the type of earnings upgrade investors in Zip shares like to see. It suggests the company is proving it can grow while also delivering stronger profits. A combination that was largely absent during the sector’s boom years.

Not without risks

The opportunity is attractive, but investors shouldn’t ignore the risks of Zip shares.

Competition remains fierce. Zip is battling global heavyweights including Klarna, PayPal, Block’s Afterpay business, traditional banks, and credit card providers. Any increase in competitive pressure could squeeze margins or slow customer growth.

Like many growth companies, Zip is also highly sensitive to interest rates, consumer spending, employment conditions, and overall market sentiment.

That means shareholders should probably expect plenty of volatility along the way.

What do the experts think?

Broker sentiment remains overwhelmingly positive. Analysts at UBS have retained their buy rating on Zip shares with an improved price target of $4.10, which points to a further 28% upside.

Meanwhile, United Capital Partners is even more bullish, with a $4.85 price target, around 52% above today’s share price.

According to TradingView data, 11 of the 12 analysts covering Zip have either a buy or strong buy recommendation. The average price target sits at $4.17, implying potential upside of around 30% from current levels.

The most optimistic analyst believes Zip shares could climb to $5.59, representing upside of roughly 75%.

The post Could US expansion send Zip shares soaring further? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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.

Superannuation is a great tool to help build wealth for retirement years.

By investing today, you can benefit from low tax rates, compounding, and eventually a tax-free passive income once you transition to the pension phase.

But how much do you need in your super to be able to get the passive income you want?

Let’s use a $6,500 per month passive income as a guide. Here’s a breakdown of how much you need, and how to get there.

How much do I need in my superannuation to get a passive income of $6,500 every month?

The easy calculation is for you to divide your annual passive income by the overall yield of your portfolio. Of course, the answer varies significantly depending what that yield is.

So first you’ll need to work out your annual passive income amount. If you’re aiming for $6,500 per month, that’ll be a total of $78,000 over the year.

It’s a large passive income, but its achievable if you have a high enough balance.

If your portfolio has a 3% overall dividend yield, you’ll need to have a total superannuation balance of $2.6 million to be able to earn your $6,500 per month passive income. That’s because $78,000 (your annual passive income) divided by 3% (your yield), is $2.6 million.

Then obviously, as your yield increases, the amount of money you need in your superannuation goes down.

So a superannuation portfolio with a 4% dividend yield would need to be $1.95 million in size to earn the same passive income.

Then a 5% yielding portfolio would need $1.56 million, a 6% portfolio would need $1.3 million, and a 7% yielding portfolio would need closer to $1.1 million to earn the same dividend income.

And so on…

So, if I invest in the highest-yielding ASX shares available, that means my balance can be lower and still earn the same?

Technically yes. But it’s not a good idea from an investment perspective.

When it comes to ASX dividend shares, generally the higher the yield, the higher the risk associated with that stock.

Rather than trying to get rich quick, it’s a better idea to concentrate on a diverse range of good-quality businesses with strong balance sheets and stable earnings. These stocks are most likely to stand the test of time and while also building wealth.

What does a diversified portfolio look like?

Say you eventually plan to have around $1.5 million in your superannuation to invest for passive income. You could earn around $6,500 per month off a portfolio yielding around 5% overall. 

That doesn’t mean that every investment in that portfolio has to be 5%. It can be a variation which equates to a combined overall 5% yield.

And remember, you don’t need to invest the whole sum in one go. Start with a monthly investment and let compound growth do some of the hard work for you.

For example, I’d look at splitting my portfolio into different yielding stocks. 

I’d look to have around 65% invested into mid-range yielding ASX shares around 4-5%, another 20% invested into slightly higher yielding stocks maybe around 6%, and the remaining 15% could be invested into riskier but much higher yielding shares.

I’d also look to buy the ASX shares across multiple sectors to diversify my portfolio even further.

It’s important to note that the majority of ASX shares pay their dividends every six or 12 months. Only a small handful pay every month.

Also be aware that while a 5% yield from a diversified portfolio is a reasonable long-term target, it’s not guaranteed and could fluctuate depending on the company’s profits. 

The post How much do I need in my superannuation to receive $6,500 per month in passive income? appeared first on The Motley Fool Australia.

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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.