The ASX dividend stock L1 Global Long Short Fund Ltd (ASX: GLS) could be one of the best options for investors wanting a good level of passive income. I’d rather invest in this ASX share rather than rely on the Age Pension.

L1 Global Long Short Fund Ltd is a listed investment company (LIC) which is relatively new to the ASX.

It follows the same investment strategy as the L1 Long Short Fund Ltd (ASX: LSF), which has been listed for more than eight years, but it has a global share focus rather than looking largely evenly at ASX shares and global shares.

For multiple reasons, I think the L1 Global Long Short Fund Ltd is a top pick for retirement (and wealth building).

Good passive dividend income potential

L1 Global Long Short Fund doesn’t yet have a long dividend record, but its sibling LIC has demonstrated its desire and ability to grow dividend payouts at a pleasing pace over the last few years, since 2021.

The ASX dividend stock has recently provided guidance that it’s going to significantly increase its dividend payouts in FY27, which will help boost the dividend yield.

The LIC has indicated it will increase its annual dividend per share to “at least” 8 cents in the 2027 financial year. That translates to a grossed-up dividend yield of 5.4% at the time of writing, including franking credits.

Impressively, that guided payout represents significant year-over-year growth, and I believe the dividend could grow by another 10% (or more) in FY28 compared to the guided payout in FY27.  

Effective investment strategy

The investment team in charge of this LIC combines valuation (primarily discounted cash flow) with qualitative considerations such as management quality, long-term industry and company structure and business trends to identify attractive investment opportunities.

The fund managers and analysts in charge of this LIC have several thousand company meetings a year, including one-on-one visits with company management, listed and unlisted competitors, customers, suppliers, operational personnel, regulators, consultants, unions and other parties that can help provide a deeper insight.

It’s also willing to use short selling, where it bets on share prices going down. That means it can make returns on certain stocks if the share price goes down.

At the end of July 2026, the ASX dividend stock reported that it had delivered a total return of 17.8% since its inception, beating the global share market return of 11.1% in that same timeframe since November 2025.

Since the inception of the specific global long-short strategy, which started in January 2025 and is unlisted, it has returned 58.1% compared to the global share market return of 20.1% in the same time period. Of course, past performance is not a reliable indicator of future returns.

Producing good investment returns can help fund good passive income and capital growth, which is something that the Age Pension can’t do.

Diversification

L1 Global Long Short Fund offers investors pleasing diversification.

Its portfolio typically has between 40 to 80 positions across a wide range of sectors and themes, allowing it to make returns in a variety of ways.

The company also provides effective geographic diversification across North America, Europe and Asia Pacific.

While diversification doesn’t automatically mean great returns, it can help lower the risk of being too exposed to one particular area. The global investment mandate also means that the ASX dividend stock can search far and wide for opportunities.

How many shares would it take to equal the Age Pension?

The maximum annualised Age Pension that Australians can receive right now is approximately $32,200.

To receive that level of income from L1 Global Long Short Fund, it’d take 402,500 shares if we exclude franking credits and 281,750 shares if we include the franking credits as part of the dividends.

Overall, I’d be excited to own that many shares, though I also think it’s a good idea to receive dividends from different sources.

The post 281,750 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 positions in L1 Global Long Short Fund Ltd and L1 Long Short Fund. 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 ASX shares most attractive to own are usually cheapest at the moment the market is least comfortable.

The S&P/ASX 200 Index (ASX: XJO) has slipped from an August peak of 9,282 points to around 8,901.

That is a fall of roughly 4% in a month.

Around 120 companies in the index were in the red on Wednesday, creating opportunities for investors looking to get in cheap.

Why the sell-off has created opportunities in ASX shares

The cause is relatively simple: Macquarie now expects the Reserve Bank to lift the cash rate by 25 basis points later this month.

The broker noted that trimmed mean inflation has spent 17 of the last 20 quarters above the target band.

The cash rate already sits at 4.35% after three increases this year.

Higher rates compress the multiple investors will pay for future earnings, although they may not automatically damage the earnings themselves.

With that in mind, here are three ASX shares that look a lot cheaper now that the broader market has sold off.

1. Judo Capital Holdings Ltd (ASX: JDO)

Judo Capital closed Wednesday at 99.5 cents, down almost 40% over twelve months.

Shares crashed 46% in a single session in June after the bank flagged three problem exposures and cut guidance.

The result that followed was better than the recent share price moves suggest, although increases in credit delinquencies have been a drag for the company.

FY26 statutory net profit rose 29% to $111.1 million.

Profit before tax climbed 34% to $168.1 million.

Gross loans and advances grew 18% to $14.7 billion while deposits jumped 24% to $12.2 billion.

The net interest margin widened 20 basis points to 3.13%.

Chief executive Chris Bayliss did reference particular credit issues in his speech:

FY26 has been another year of genuine momentum for Judo. While the increase in specific provisions late in the year was disappointing, the underlying performance of the Bank has remained strong, with record revenue, continued operating leverage, strong deposit growth and lending at the top end of guidance.

FY27 guidance calls for profit before tax of $210 million to $220 million, whereas the average broker target of $1.51 implies roughly 50% upside.

2. South32 Ltd (ASX: S32)

South32 is the odd one out here.

The company’s shares hit a fresh 52-week high of $5.32 on Wednesday and are up 103% over twelve months.

Not every holding bought during a sell-off has to be a bargain.

South32 earns US dollars from copper, zinc and silver, which is a completely different driver to the domestic rate cycle.

FY26 underlying earnings rose 55% to US$1.03 billion and underlying EBITDA grew 28% to US$2.46 billion. Meanwhile, total dividends lifted 55% to 9.3 US cents per share, fully franked.

Chief executive Matt Daley explained where the business is heading.

The sale of our aluminium value chain assets to Alcoa will simplify and strengthen our portfolio, positioning South32 as a leading base metals focused company with high-margin assets and a pipeline of compelling growth options in copper, zinc and silver.

3. Life360 Inc (ASX: 360)

Life360 closed at $19.64 and are down 60.6% over twelve months.

On the positive side, second quarter revenue rose 38% to US$159.0 million and adjusted EBITDA increased 53% to US$31.1 million. Monthly active users passed 102.4 million and advertising revenue reached US$22 million.

The company holds US$467.7 million in cash and guides FY26 revenue to US$650 million to US$685 million.

The shares fell anyway, because investors had priced in a bigger guidance upgrade.

Foolish takeaway

A 4% pullback is not a crash.

But what this pullback has done is separate the multiple from the earnings across much of the market at once.

All three of these ASX shares grew earnings materially in FY26, and two have been sold down heavily regardless.

For ASX investors, this could be a unique buying opportunity.

The post Top 3 ASX shares I’d buy after the most recent sell-off appeared first on The Motley Fool Australia.

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• Brokers rate these 5 ASX shares as a strong buy, and tip upsides of 28% to 62%
• South32 shares reach fresh 52-week high: Can they keep climbing?
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Medibank Private, Ansell, South32 shares

Motley Fool contributor Mark Verhoeven 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 Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Knowing whether you have enough superannuation can be difficult.

Retirement could last for decades, living costs will change, and everyone’s idea of a comfortable lifestyle is different.

Still, there are some useful benchmarks that can give Australians an idea of what they may want to aim for.

What does a comfortable retirement cost?

The Association of Superannuation Funds of Australia (ASFA) publishes its Retirement Standard to estimate the spending required for different retirement lifestyles.

For Australians aged 65 to 84, ASFA currently estimates that a single person needs around $55,923 a year for a comfortable retirement. A couple needs approximately $78,566 annually.

That comfortable budget allows for things such as private health insurance, regular leisure activities, occasional restaurant meals, maintaining a reasonable car, home repairs, and some travel.

The figures are a lot lower for what ASFA describes as a modest retirement.

A single homeowner needs an estimated $36,434 annually, while a couple needs $52,473. Private renters face a higher hurdle, with estimated annual spending of $51,164 for a single person and $69,002 for a couple.

That difference shows why the amount of superannuation someone needs can vary so much depending on their circumstances.

So, how much superannuation is enough?

ASFA has helpfully provided its estimate for the superannuation balances required at age 67 to fund those lifestyles.

For a comfortable retirement, it estimates that a single person needs around $630,000, while a couple needs approximately $730,000 between them.

It is important to point out that this does not assume retirees will live entirely from investment income while preserving their original balance forever.

ASFA’s calculations assume retirees draw down their capital over retirement and receive a part Age Pension.

For a modest retirement, ASFA estimates required balances of $110,000 for a single homeowner and $120,000 for a couple.

Private renters need more. ASFA puts the required balance at around $340,000 for a single renter and $385,000 for a couple.

I would treat these as a starting point

I do not think there is one superannuation number that every Australian should aim for.

Someone who owns their home outright, has relatively low expenses, and qualifies for the Age Pension could need considerably less than someone paying rent or wanting to travel regularly.

Retirement age also makes a difference. The ASFA balance estimates are based on retiring at 67, so someone hoping to finish work much earlier may need to fund more years before or during retirement.

I would also want some room for unexpected expenses rather than planning around the minimum amount required to make the numbers work.

Foolish takeaway

ASFA’s latest benchmark suggests a single Australian needs around $630,000 in superannuation at age 67 for a comfortable retirement, while a couple needs around $730,000.

That gives investors something tangible to work towards, but I would not treat it as a universal target.

The amount I would want would ultimately depend on when I planned to retire, whether I owned my home, the lifestyle I wanted, and how much flexibility I wanted once regular employment income stopped.

The post How much superannuation do Australian retirees actually need? appeared first on The Motley Fool Australia.

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• Life360 shares are 60% below broker targets. Here’s why
• Why I think these are the best ASX shares to buy and hold
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Motley Fool contributor Grace Alvino 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.