Telstra Group Ltd (ASX: TLS) shares are one of the few ASX blue-chip stock options that aren’t about banking or commodities. For that reason alone, it could be a solid option to consider for passive income.

These days, telecommunications could be one of the most defensive industries, given how important an internet connection is for households and businesses.

There’s no certainty around how technology will evolve in the coming years. However, data will likely become increasingly important, and I believe Telstra is well suited to meet that demand.

I think 5G (and 6G in the future) could increasingly challenge in the home internet market space. Telstra’s position as the current market leader in mobile, and its financial firepower to invest the most, could mean capturing some of the dollars currently going to the NBN.

During FY26, the number of 5G fixed wireless subscribers increased by 20.7% to 146,000.

Turning to Telstra’s FY26 performance, statutory earnings per share (EPS) grew by 5.3% to 19.9 cents, and cash EPS increased 13.8% to 25.5 cents. This helped fund a 10.5% increase in the dividend per share to 21 cents

What could the 2027 dividend payout be?

According to the projection on CMC Invest, the ASX telco share could deliver a larger payout to shareholders in FY27.

The current forecast suggests the company could hike its dividend to 22 cents per share in the 2027 financial year. That would be a year-over-year increase of 4.75%, which would noticeably outpace current inflation.

At the time of writing, that possible payout translates into a forward dividend yield of 4.6% excluding franking credits and 6.6% including franking credits.

There are not many ASX blue-chip shares that offer a dividend yield that high, whilst also growing the payout at a solid pace.

How many Telstra shares are needed for $12,000 of annual passive income?

To earn that much dividend income, we’re talking about a large investment. But it depends on whether an investor wants to include or exclude franking credits as part of the dividend income total.

If an investor doesn’t include franking credits, then to earn $12,000 per year of dividend cash, it’d take 54,546 Telstra shares.

If we include the franking credits, it would take 39,358 Telstra shares, assuming the same level of franking as FY26.

Overall, I think the ASX telco share has a promising future as an ASX dividend share. The 274,000 increase in mobile handheld users in FY26 (including 235,000 wholesale subscribers) is a strong driver of ongoing dividend growth. The future looks positive to me.

The post How many Telstra shares do I need to buy for $12,000 of passive income in 2027? 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.

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a positive fashion. The benchmark index rose 0.45% to 8,845.7 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set for a tough session on Tuesday following a mixed start to the week in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 77 points or 0.85% lower. On Wall Street, the Dow Jones fell 0.1%, but the S&P 500 rose 0.4% and the Nasdaq jumped 1.1%.

Sell New Hope shares

Bell Potter thinks New Hope Corporation Ltd (ASX: NHC) shares are overvalued. This morning, the broker has retained its sell rating on the coal miner’s shares with an improved price target of $5.30. It said: “We maintain a Sell recommendation. Our $5.30/sh TP already incorporates a 15% premium to our sum-of-the-parts valuation, reflecting NHC’s leverage to global energy security themes amplified by recent geopolitical tensions. We expect energy markets will normalise over the near-term. While the Malabar acquisition will materially strengthen NHC’s long-term production outlook, Maxwell’s longwall ramp-up to 5Mtpa saleable production brings elevated operational complexity over the medium-term.”

Oil prices mixed

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch following a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 2.25% to US$103.69 a barrel and the Brent crude oil price is down 0.45% to US$109.39 a barrel. Overnight there were more reports of Houthi attacks on Saudi infrastructure.

Sigma Healthcare shares downgraded

Sigma Healthcare Ltd (ASX: SIG) shares will be on watch on Tuesday after being hit with a broker downgrade. According to a note out of Bell Potter, it has downgraded the Chemist Warehouse owner’s shares to a hold rating (from buy) with a steady price target of $3.00. It said: “The recent flight to safety away from tech is probably responsible for the rally in the SIG market price over recent weeks, nevertheless the stock remains expensive relative to growth outlook. In the absence of a significant upgrade, our recommendation is adjusted to Hold from Buy. PT is unchanged at $3.00.”

Gold price falls

ASX 200 gold shares including Genesis Minerals Ltd (ASX: GMD) and Capricorn Metals Ltd (ASX: CMM) could have a subdued session on Tuesday after the gold price dropped overnight. According to CNBC, the gold futures price is down 0.5% to US$4,159.8 an ounce. Higher US Treasury yields weighed on the precious metal.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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.

I think long-term investing in ASX shares is the best chance of achieving positive returns and financial objectives.

Compounding is a very powerful financial force that can help grow our wealth over time, particularly if we don’t interrupt it unnecessarily by trading in and out of stocks and triggering capital gains tax.

We don’t need to own the absolute hottest ideas to achieve good results. I think the two ideas below are very strong options for long-term returns.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is an investment house that has operated for over 120 years. It already has a great track record of surviving (and thriving) through recessions, the world wars, pandemics and so on.

It’s able to look across a wide array of asset classes, sectors and geographic markets for opportunities. I think that’s compelling considering the main local and global share market indices are increasingly focused on just the 10 or so largest businesses.

Soul Patts is invested in areas like energy, resources, telecommunications, financial services, agriculture, swimming schools, electrification, retirement living, building products, industrial property, land and plenty more.

I like how the portfolio has evolved over time and now includes newer ideas that can unlock the next 10 years (or more) of returns. Soul Patts is not stuck being a bank or retailer, it can buy or sell assets wherever it sees opportunities.

For example, it recently decided to include a ‘fixed income’ segment in its portfolio because of how high bond yields have risen.

I also like that the company is considering expanding its portfolio to international opportunities. This could produce stronger returns and deliver more diversification of risk.

Not only is the value of Soul Patts’ investments rising over time, but it’s also retaining some of its cash flow each year to make new investments. Funded by the majority of its cash flow, the ASX share pays a steadily growing dividend that has increased every year since 1998.

Global X S&P World Ex Australia GARP ETF (ASX: GARP)

This exchange-traded fund (ETF) is about investing in great businesses at a good price.

‘GARP’ stands for growth at a reasonable price. This strategy can lead to investing in compelling companies that are compounding their earnings at a good pace.

It owns a portfolio of 250 companies spread across multiple countries and sectors. I’m calling this an ASX share because it’s about investing in shares, and we can buy it on the ASX.

All of those stocks need to tick three boxes.

First, the shares must have solid sales and earnings growth.

Second, the value must look appealing on a price/earnings (P/E) ratio basis.

Third, to measure quality, the GARP ETF looks for healthy financial leverage (debt levels) and a high return on equity (ROE).

I think that combination of factors can lead to strong long-term performance. Since its inception in September 2024, the fund has returned an average of 16.4% per year.

I don’t know whether future returns will be as good as past returns, but I think it’s a compelling investment for the next decade. 

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.