ASX dividend shares look more compelling following the passage of capital gains tax (CGT) changes into law, experts say.

Cost base indexation will replace the current 50% CGT discount for assets held longer than 12 months from 1 July next year.

The new rules grandfather existing ASX shares investments. So, the 50% discount will still apply to gains made before 1 July 2027.

After that date, capital gains on existing and new investments will be subject to cost base indexation.

A minimum 30% CGT tax rate will apply, too.

Income strategies looking better than growth: expert

Portfolio strategist Damien Boey from Wilson Asset Management says the CGT changes have already affected investors’ behaviour.

In an interview with Wilson chair and chief investment officer, Geoff Wilson AO, Boey said:

So it’s early days, but one of the things which we’ve noticed, particularly as we’ve been doing the rounds with shareholders, is that people have actually anticipated and responded to these changes.

So a lot of people … have decided that look, it’s not worth their while anymore to keep holding out for big capital gains. They’d rather actually go for much more income-based investment … there’s definitely a shift there for investors to prefer income over capital growth.

Wilson and Boey said buying and holding ASX shares for capital growth now looked less rewarding due to the 30% minimum CGT rate.

Boey said:

… The Australian Shareholders Association ran a survey a little while ago and what they showed was that over 40% of people are basically saying, look, I’m not so sure I want to invest in long-term equities any more as a result of these changes.

Wilson pointed out the significance of that percentage, given 7.7 million Australians invest in shares outside their superannuation.

Overseas markets may offer better capital growth

Boey also questioned how Australian capital growth would even materialise for investors given his expectation that the CGT changes would negatively impact already anaemic productivity growth.

The minimum 30% CGT rate also applies to businesses. This could disincentivise reinvestment and stifle productivity growth, he said.

This dynamic may encourage Aussie investors to continue putting their money into overseas share markets like the US for growth.

US stocks have delivered substantially more capital growth than ASX shares over the past three years.

“If I still have a preference for capital growth, then where am I going to get it? I have to go overseas,” Boey said.

He added:

… when you’re really starving the place of actual, real productivity growth, then what are you actually earning?

Where is the capital growth going to come from? What you’ll probably see is a big shift into income-based [products].

In Australia you’ve got to go for the most reliable income sources, particularly after inflation, and then if you want capital growth you really have to invest abroad.

Goal: $15,000 in passive income

In FY26, the ASX 200 provided an average dividend yield of 4.2%, so let’s use that as a guide.

If you only own ASX shares with full franking credits, that 4.2% yield grosses up to 6%.

To get $15,000 passive income per year, you’ll need about $250,000 in ASX dividend shares on a 6% yield.

Of course, that’s an oversimplification, because each individual ASX dividend share pays a different yield.

So, you’ll need to do your research.

You could try building a portfolio of several individual stocks which deliver a collective average 6% yield.

Some examples of ASX shares paying fully franked dividends include Wesfarmers Ltd (ASX: WES) and BHP Group Ltd (ASX: BHP).

There’s also Fortescue Ltd (ASX: FMG) and Commonwealth Bank of Australia (ASX: CBA) shares.  

Easier alternative to individual stock picking

Alternatively, you could invest in an ASX exchange-traded fund (ETF), ideally one with a high level of franking.

The most popular ASX dividend-focused ETF is Vanguard Australian Shares High Yield ETF (ASX: VHY).

VHY ETF has delivered a 10-year average annual distribution of 6.46% and growth of 4.03%.

This ETF’s franking levels have changed significantly from year to year.

In FY26, VHY ETF distributions came with 89% franking.

The post How much do I need in ASX dividend shares to receive $15,000 passive income per year? appeared first on The Motley Fool Australia.

More reading

• Buying CBA shares? Here’s the dividend yield you’ll get today
• Why I’d invest $50,000 of superannuation in New Hope, Mineral Resources and BHP shares
• Northern Star vs BHP: Which ASX share is better for passive income?
• If I invest $15,000 in Wesfarmers shares, how much passive income will I receive in 2027?
• Commonwealth Bank vs Westpac: Which ASX bank stock is the better buy for resilient passive income?

Motley Fool contributor Bronwyn Allen has positions in Vanguard Australian Shares High Yield ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended BHP Group, Vanguard Australian Shares High Yield ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

What a month it has been for Commonwealth Bank of Australia (ASX: CBA) shares. CBA stock has had one of its worst periods in a long time over the past two months or so.

Back in early August, this ASX 200 bank stock was going for over $180 a share. Today, those same shares are asking just $150.37 at the time of writing. That’s a fall worth a nasty 16.9% – even more than the precipitous 10% drop we saw back in May following a quarterly trading update.

But of course, many investors buy CBA shares for their dividend potential, not just an expectation of endless capital growth. And, as any good dividend investor knows, a lower share price means a higher starting dividend yield, all else equal.

So today, let’s dive into what kind of dividend yield you can expect from CBA shares at their current pricing.

CBA shares: Show me the money

Over the past 12 months, CBA has funded two dividend payments, as is its habit. The first of those came in February, with an interim dividend worth $2.35 per share. The second is the bank’s final dividend for 2026, which, coincidentally, will be doled out this week on 29 September. That payment will be worth $2.70 per share. Since CBA has already traded ex-dividend for this payment, we’ll use it as part of our yield calculations.

As is typical with Commonwealth Bank, both of its 2026 dividends will come with full franking credits attached.

2026 has been a bumper year for CBA’s dividend investors. Both of those payments represent healthy rises over their 2025 equivalents. The $5.05 in total dividends per share that the bank will pay out this year represents a 4.12% increase over the $4.85 paid out in 2025.

At CBA’s price of $150.37 (at the time of writing), that $5.05 in dividends per share gives this bank a trailing dividend yield of 3.36%. That’s still pretty low by ASX bank standards, but a lot better than the sub-3% yields investors may have become used to seeing on CBA shares when its price was markedly higher.

Of course, this is just a trailing yield, though. An investor who buys CBA shares today is not guaranteed to get that kind of yield. The bank will need to keep its 2027 dividend payments at least level with those paid out over 2026 to make this yield a forward-facing one. CBA has built up an impressive track record with dividend growth in recent years, with shareholders getting an annual dividend pay rise every year since 2021 (following the big COVID-induced cuts of 2020).

But only time will tell if that trend continues into 2027.

The post Buying CBA shares? Here’s the dividend yield you’ll get today appeared first on The Motley Fool Australia.

More reading

• Commonwealth Bank vs Westpac: Which ASX bank stock is the better buy for resilient passive income?
• How I’d build a $50,000 ASX share portfolio today
• CBA vs Telstra: Which ASX blue-chip is better for passive income?
• CBA shares hit their lowest level since February. Could $140 be next?
• Here are the most popular ASX share superannuation investments in SMSFs

Motley Fool contributor Sebastian Bowen 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’d describe Technology One Ltd (ASX: TNE) as one of Australia’s top shares. A sell-off could be an excellent opportunity for brave investors.

Technology One is Australia’s largest enterprise software company. It says that its Solution as a Service (SaaS+) offering is an all-inclusive, industry-specific solution that allows it to deliver enterprise resource planning (ERP) implementations.

It has more than 1,300 leading businesses, government agencies, local councils and universities as clients.

At the time of writing, the Technology One share price has fallen 14% since 14 August 2026. It’s also down by 32% since June 2025.

For multiple reasons, I think it’s a good time to invest in one of Australia’s top shares.

Strong revenue growth

To count as one of Australia’s top shares, I think the revenue needs to grow at a solid pace.

The Technology One business is growing at a strong pace, with revenue growth of 11% to $322.7 million during the FY26 first-half.

I think the growing annual recurring revenue (ARR) is an even better sign of the company’s success. This reveals what the business could earn in the next 12 months.

A key driver of its ARR is the net revenue retention (NRR). In other words, it is the level of income the existing client base generates – 100% means those clients account for as much revenue this year as last year.

Technology One reported NRR of 114%, meaning revenue from existing clients grew by 14%. That growth rate has been consistent recently, which is strong organic growth.

A company that grows at 15% per year doubles in size in five years, so that’s the sort of number we’re talking about with Technology One, making it look to me like one of Australia’s top shares.

Rising profit margins

Another positive element to the business is the prospect of rising profit margins in the coming years.

As the company is a software business, it can deliver pleasing operating leverage. Revenue can grow faster than expenses, leading to rising margins and a stronger bottom line in the years ahead.

Currently, the business is investing heavily for growth, which is why HY26 profit before tax grew 9% to $89.1 million. But, on an underlying basis, profit before tax grew 21% with a margin improvement of 2 points to 30%.

It expects that group margins will improve towards 35% in the coming years, driven by “significant economies of scale”.

Geographic expansion

Technology One is driving future growth by looking at places like the UK to unlock the next stage of growth. The UK has a similar setup to Australia with government agencies, local councils, companies and so on, so the growth opportunity is there.

It’s already delivering impressive growth in the UK. HY26 UK ARR rose 23% to $53 million, so it’s a small but growing part of the business. Recent wins include Liverpool City Council and Salisbury City Council.

Technology One noted that the UK local government sector is currently undergoing a transition period with the planned combination of smaller councils to form larger, economically viable councils. Its sales pipeline for local government in the UK remains strong and management expects accelerated growth from this sector in future periods.

Overall, the business has a very promising future, in my opinion, it looks like one of Australia’s top shares to buy right now.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 2 top ASX shares to buy and hold for the next decade
• With no savings at 50, I’d follow Warren Buffett’s approach to build wealth
• Why I think these are the best ASX shares to buy and hold
• How to build a winning ASX share portfolio and create wealth

Motley Fool contributor Tristan Harrison has positions in Technology One. 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.