Owning Wesfarmers Ltd (ASX: WES) shares could be a smart choice for investors who want to earn $2,000 (or more) of passive income.

In a rapidly changing world, I think there are a few things that customers will always want – good products at great prices. Wesfarmers can provide that through its two leading businesses, hardware store Bunnings and general retailer Kmart.

Both of those businesses are excellent performers for Wesfarmers with how both of them generate returns on capital (ROC) of around 70%. The parent business Wesfarmers earns a return on equity (ROE) of more than 30%, which is pleasingly high for a retailer.

Bunnings and Kmart continue to invest in themselves and unlock more growth. For example, there are now Anko stores in the Philippines, while in recent-ish times Bunnings acquired Beaumont Tiles and expanded its pet and auto care ranges.

Another significant advantage to Wesfarmers’ operating model is how it’s willing to buy some businesses and sell others. Recent investments include lithium mining and healthcare businesses. In five years, there could be additional names within the Wesfarmers portfolio.

With how the business aims to grow its dividend over time in line with profit and cash flow, the future looks bright for owners of Wesfarmers shares. Let’s see what analysts expect of the company’s dividend for FY27 because that’s the next dividend investors will receive.

FY27 passive income projection

In the 2026 financial year, Wesfarmers grew its annual dividend per share by 7.8% to $2.22.

Analysts expect the company’s dividend could increase again in FY27 after a number of years of consistent growth.

Wesfarmers says that it has a focus on providing shareholders with a satisfactory return to shareholders and a commitment to efficient capital management.

According to the projection on CMC Invest, Wesfarmers is forecast to hike its annual dividend per share by 7.9% to $2.395.

That projection translates into a potential dividend yield of 3% excluding franking credits and 4.3% including franking credits for FY27.

To unlock $2,000 of passive income, an investor would need 836 Wesfarmers shares if we’re just thinking about the dividend cash. Including franking credits as part of the income would mean needing 585 Wesfarmers shares.  

Is this a good time to invest in Wesfarmers shares?

I’m not sure that Wesfarmers would ever trade at a truly low price. It’s a high-quality company, with leading retail businesses that are primed to deliver low-cost products, which could be very appealing during economically uncertain times.

According to CMC Invest, there have been 10 broker ratings on the business within the last three months, with four of those ratings being a buy, two being a hold and four being a sell.

If I had to hold one major ASX blue-chip share over the long-term, Wesfarmers would be the one I’d choose because of its ability to adjust its portfolio.

But, other, smaller ASX shares could be even more appealing opportunities.

The post How much must I invest in Wesfarmers shares to earn $2,000 of passive income? appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I’d buy and hold for the next 10 years
• How much do I need to retire on $90,000 a year at 57?
• If I could only buy 5 ASX shares for retirement, these would make my shortlist
• I look for 3 things in a retirement stock. These 5 shares have them all
• I compared 5 of the ASX’s best shares. Here’s which one I’d buy today

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

Age 60 to 65 represents a couple of huge milestones for Australians. This five-year period is where the focus shifts from accumulating superannuation, to spending it.

At age 60, Aussies have reached their preservation age, where they can access their superannuation balance provided they stopped working.

Then at age 65 is the next important milestone, where all Aussies can access their superannuation provided regardless of whether they’re still earning an income or not elsewhere.

It makes sense, then, that at this age bracket, your superannuation balance will be front of mind. 

But do you know how it stacks up against others the same age?

Or how it compares to what you actually need to afford retirement?

Here’s a breakdown.

What’s the average superannuation balance of Australians aged 60-65?

There aren’t exact figures for the average balance for this age bracket, but there are some rough guides.

The Australian Prudential Regulation Authority (APRA) also tracks average super balances across age groups in Australia.

According to the latest APRA data, the average super balance for Aussies aged 60-64 is around $270,800. 

Those aged 65 would need to look at the next bracket up. For 65-29 year olds APRA estimates the average super balance to be $290,600.

APRA isn’t the only industry body to provide some super estimates though. The Association of Superannuation Funds of Australia (ASFA) also provides some estimated figures, and they’re a lot higher.

According to ASFA, the average male aged 60-64 has around $395,852 in the superannuation. The average female the same age has $313,360.

Again, 65 year olds would need to look at the bracket above. ASFA’s data shows the average 65-69 year old male has $448,518 saved in their superannuation. But females the same age have closer to $392,274.

How much does it compare to what I need to retire?

There’s no such thing as a “magic number” when it comes to your superannuation.

The amount you’ll need to fund your retirement depends on whether you’re single or part of a couple, whether or not you own your home, what lifestyle you expect to live, and any other savings you have.

But again, there are some rough guides to aim for.

ASFA data expects that a comfortable retirement will cost around $56,166 per year for individuals and $78,998 combined per year for couples.

To afford that, by age 67, a single person will need a superannuation balance of around $630,000. Meanwhile, couples will need closer to $730,000.

The data assumes you will earn a part Age Pension, and that you own your home outright.

Elsewhere, Super Consumers Australia forecasts that individuals will need up to $891,000 in their superannuation by age 65 in order to be able to retire with a high quality of life. Or $1.216 million for couples.

How does your balance compare to other Australians the same age? And how far away are you from your goal?

The post Average superannuation balance of Australians aged 60 to 65 in FY27. How does yours compare? appeared first on The Motley Fool Australia.

More reading

• 2 ASX stocks down 28% to 30% in a month I’d buy right now
• Codan has issued yet another profit upgrade
• Buy, hold, sell: Ramelius Resources, Medibank, Soul Patts shares
• 3 ASX mining shares to buy with 30% to 129% upside ahead: experts
• How much must I invest in Wesfarmers shares to earn $2,000 of passive income?

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.

The Ingenia Communities Ltd (ASX: INA) share price is in focus as the company provided an update on discussions with Warburg Pincus and progress towards a process deed, with due diligence now underway.

What did Ingenia Communities report?

• Ongoing negotiations with Warburg Pincus over a potential $5.25 per security acquisition proposal
• Comprehensive due diligence access granted to Warburg Pincus
• Ingenia continues to work towards implementation of its proposed Peet Limited acquisition
• No changes to previous scheme implementation deed with Peet Limited

What else do investors need to know?

Ingenia and Warburg Pincus have extended their timeline, aiming to agree on a process deed by 23 October 2026. In the interim, Warburg Pincus has been granted comprehensive access to Ingenia’s books for due diligence.

It’s important to note that Ingenia has not yet determined the Warburg Pincus proposal to be a “Bidder Superior Proposal” under its scheme implementation deed with Peet Limited. There is no certainty that Warburg Pincus will make a binding offer or that any transaction will result from these discussions.

Ingenia remains fully engaged with its obligations relating to the Peet acquisition and continues its day-to-day operations across its 96 communities and development sites.

What’s next for Ingenia Communities?

Ingenia and Warburg Pincus expect to finalise the process deed negotiations within days. Investors should be aware that there’s no requirement for action at this stage, as discussions are ongoing and no binding proposal has been received.

Looking ahead, Ingenia continues to focus on its growth strategy, including the integration of Peet Limited if the acquisition proceeds. The company’s broader aim remains providing quality affordable communities for seniors across Australia.

Ingenia Communities share price snapshot

Over the past 12 months, Ingenia shares have declined 21%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

View Original Announcement

The post Ingenia Communities: Update on Warburg Pincus negotiations and Peet deal appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Ingenia Communities Group updates on revised Warburg Pincus offer
• Which were the best-performing ASX 200 shares in September?
• Here are the top 10 ASX 200 shares today
• Ingenia Communities receives further revised $5.25 takeover proposal

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.