Passive income is a great way for investors to build financial security, benefit from compounding, and create another income stream without working any extra hours.

The error that many investors make is thinking they need a million dollar investment portfolio to make it worth it.

The truth is, you don’t need to spend millions, or even hundreds of thousands. Any level of passive income can help contribute to your financial independence and also create a buffer against sharemarket volatility.

So, what could that passive income actually look like?

Let’s break it down, using a $50,000 investment portfolio as an example. 

What passive income can I earn off a $50,000 portfolio?

The easiest way to calculate your passive income is by multiplying your total portfolio value by your dividend yield.

But, the tricky part is that the answer varies widely depending on the dividend yield of your portfolio.

For example, $50,000 x 3% = $1,500 per year in dividend payments.

But if your portfolio has a dividend yield of around 6%, your passive income will be double the size. That’s because $50,000 x 6% = $3,000 per year in dividend payments. 

And so on. As your dividend yield increases, the passive income you can earn off your $50,000 portfolio also increases.  

These figures are based on cash dividends before any tax or franking credit benefits.

Of course, this type of money isn’t going to become a primary income stream, but it’ll certainly help create an extra buffer.

Which ASX shares will earn me $2,000 per year in passive income?

To earn an annual passive income of around $2,000, your portfolio will need to yield around 4%.

There is a huge range of ASX dividend shares available that pay around that level, so it’s certainly achievable.

For example, Argo Investments (ASX: ARG) pays just a little over the 4% mark at the time of writing. As does WCM Global Growth (ASX: WQG).

Major bank Westpac Banking Corp (ASX: WBC) pays a dividend yield of around 4.2% to its shareholders.

ANZ Group Holdings Ltd (ASX: ANZ) and Transurban Group Ltd (ASX: TCL) both pay a little more. Their dividend yields are around 4.6% and 4.7%, respectively.

Of course, ideally, you’d want a mixture of shares that combine to make a 4% yielding portfolio for diversification reasons, rather than a portfolio of only one stock.

What if I want to earn closer to $4,000 per year? Is that possible?

It’s also possible to earn a little more. To earn $4,000 in passive income, you’d need a portfolio that yields 8%. 

Again, there are plenty of ASX shares that yield around this level, but it’s worth noting that a higher yield generally comes with higher risk.

The Metrics Income Opportunities Trust (ASX: MOT) is a listed investment trust (LIT) which can give investors direct exposure to private credit investments. The Trust targets a cash yield of 7% per year. It has a total target return of 8% to 10% per year, net of fees and expenses. 

Charter Hall Long WALE REIT (ASX: CLW) and WAM Microcap (ASX: WMI) both yield in the low 7%.

And if you’re looking to target higher-yielding ASX shares, there are stocks like intellectual property (IP) service provider IPH Ltd (ASX: IPH), which yields around 9.6% and Centuria Office REIT (ASX: COF), which yields around 11.4%, at the time of writing.

Again, I wouldn’t suggest investing solely in high-yield shares in order to earn a higher income. But it’s possible to create a portfolio mix including high-yield ASX shares and more reliable or defensive assets to get an over 8% yielding portfolio. 

The post How much passive income can I earn off a $50,000 portfolio? appeared first on The Motley Fool Australia.

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• 2 ASX shares with dividend yields above 9.5%

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

BHP Group Ltd (ASX: BHP) shares have been one of the stronger blue-chip performers over the past year.

That’s great for shareholders. But after this big move higher, is the mining giant still worth buying?

I think the answer is yes, but the case is very different from a year ago.

The easy bargain has passed

BHP shares are trading around $58.71, up almost 50% over the past 12 months.

That is a huge move for a company of this size. Investors who bought near the lows have already done very well.

So, I would not call BHP a bargain today in the same way it was when the market was more pessimistic. But I still think the shares offer reasonable value.

According to CommSec consensus estimates, BHP is expected to generate earnings per share of $3.56 in FY26 and $3.77 in FY27.

Based on the current share price, that puts the stock on a price-to-earnings ratio of around 16.5 times FY26 earnings and 15.6 times FY27 earnings.

That does not look demanding to me for a world-class resources business with long-life assets and exposure to commodities that could remain important for decades.

The dividend profile is also attractive. CommSec estimates dividends per share of $2.10 in FY26 and $2.06 in FY27, implying forward dividend yields of around 3.6% and 3.5%.

Why I still like BHP shares

The main reason I would still buy BHP is that the company is evolving.

Iron ore remains a major part of the business, and it will likely continue driving a large share of earnings for some time. But I think the long-term investment case is becoming broader.

Copper is the key one for me. The world is likely to need more copper for electricity networks, data centres, renewable energy, electric vehicles, industrial development, and general infrastructure. It is difficult to see how many of those trends grow without significantly more copper supply.

BHP already has strong copper exposure, and I think that part of the business could become increasingly important over the next decade.

The company is also expanding into potash through its Jansen project in Canada. That adds another long-term growth option tied to food production and agricultural productivity.

Mining projects can be expensive, slow, and difficult. Capital discipline still needs watching. But I like that BHP is positioning itself beyond just the next iron ore cycle.

Why resources exposure can help

The past year is a good reminder of why resources exposure can play a role in a diversified ASX portfolio.

Since July 2025, the S&P/ASX 200 Resources index (ASX: XJR) is up 38%, while the broader ASX 200 is up just 2.8%.

That gap is significant.

Resources shares can be volatile, and they often move for reasons outside a company’s control, including commodity prices, China demand, currency moves, and global growth expectations.

But that is also why they can add something different to a portfolio.

When resources are performing well, they can provide a source of returns that may look very different from banks, supermarkets, healthcare shares, or technology companies.

Foolish takeaway

I do not think it is too late to buy BHP shares.

The easy bargain has passed, and investors today are paying a much higher price than they were a year ago.

Even so, the valuation still looks reasonable to me, the forecast dividend yield is solid, and the company has exposure to commodities that could become more valuable over the next decade.

The post Up almost 50%, is it too late to buy BHP shares? appeared first on The Motley Fool Australia.

More reading

• What did the market look like 10 years ago? Here’s what’s changed for the ASX 200
• How much superannuation do you need to earn $5,000 a month in passive income?
• Should you buy BHP shares FY27? Here’s what experts are saying
• Do you want to earn passive income from your superannuation? Here’s a guide to get you started
• Top brokers name 3 ASX shares to buy next week

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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

While many of the biggest ASX financials stocks have seen slow growth in 2026, Cuscal Ltd (ASX: CCL) has brought strong returns.

The S&P/ASX 200 Financials Index (ASX: XFJ) is up just over 2% year to date. 

Meanwhile, Cuscal shares have risen over 10% in the same span and over 52% in the last 12 months. 

What does Cuscal do?

Cuscal is a payment and regulated data services provider in Australia. 

The group offers a comprehensive suite of payment infrastructure solutions to a diversified client base. 

It enables a range of payment types, from physical cards to real-time payments, in the payment value chain and constantly evolves its offerings to meet the demands of a rapidly changing economy.

In the last 12 months, it has risen significantly on the back of a solid, growing business in a hot sector (digital payments). It has also been spurred on by strategic acquisitions and delivering the profit growth to back it up. 

Why it can continue 

A recent report from Ord Minnett has reinforced that there is still plenty of room for growth remaining. 

Ord Minnett said Cuscal’s share price has been supported by improved earnings momentum. This has been aided by the two strategically important acquisitions of Indue and Paymark. 

In addition, the FY26 price-to-earnings (P/E) multiple that investors have been willing to apply to Cuscal’s earnings has risen 21x from 11x at the time of the IPO to 21x currently. We see a forward P/E multiple of 18–20x as appropriate,given Cuscal’s strong defensive earnings growth outlook and B2B infrastructure positioning in the payments industry.

We expect FY26 results to beat market expectations, with net operating income (NOI) boosted by ongoing solid transaction volume growth and strong client deposit balances driving net interest income. Company guidance is for “mid-teens” underlying net profit growth in FY26, with Ord Minnett estimating growth of 16.8%.

Upside remains for this ASX financials stock 

‍Looking ahead, Ord Minnett believed the FY27 result will be underwritten by the contributions from Indue & Paymark. It projects further growth into FY29–30 as Cuscal banks the cost savings and other synergies from the acquisitions, and the outlook supports expectations for sustainable underlying net profit growth of 15–20% per annum. 

Based on this guidance, Ord Minnett has retained its buy recommendation on this ASX financials stock.

It has also retained its target price of $5.45.

From yesterday’s closing price of $4.89, this indicates a healthy upside of over 11%. 

The post Forget CBA shares, this ASX financials stock has strong momentum heading into FY27 appeared first on The Motley Fool Australia.

More reading

• How much passive income can I earn off a $50,000 portfolio?
• Up almost 50%, is it too late to buy BHP shares?
• After soaring 9% yesterday, is this ASX stock a buy, hold or sell?
• Top broker tips 47% upside for this ASX financials stock 
• How much do I need in superannuation to receive $6000 per month in passive income?

Motley Fool contributor Aaron Bell 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.