Telstra Group Ltd (ASX: TLS) is one of those ASX dividend shares that many investors already know well.

But for investors thinking about passive income, does Telstra still have the right mix of cash flow, reliability, and yield to deserve a place in a long-term income portfolio?

In my view, the answer is yes.

A business people keep using

The reason I like Telstra for income is not just that it pays dividends. It is that the business sits behind a huge amount of daily activity.

Every time people use mobile data, stream content, run a business from a phone, process digital payments, work remotely, check maps, use apps, or stay connected while travelling, telecommunications infrastructure is doing part of the work.

That gives Telstra a useful role in the economy. It is not selling a product customers buy once and forget. It is providing connectivity that people and businesses keep using every day.

That does not make Telstra immune from competition. Mobile plans, customer churn, network investment, satellite internet, and regulation are all worth keeping an eye on. But I think the underlying demand for reliable connectivity is about as durable as it gets.

The yield looks attractive

Telstra shares are currently trading around $5.07.

According to CommSec consensus estimates, the company is expected to pay dividends per share of 21 cents in FY26 and 21.5 cents in FY27.

At the current share price, that implies forward dividend yields of around 4.1% and 4.2%.

It may not offer the highest yield available on the ASX, but I think income investors should be careful about chasing a bigger number. A slightly lower yield from a more dependable business can be far more useful than a larger yield that later gets cut.

A $10,000 investment at $5.07 per share would buy about 1,972 shares. Based on the FY26 forecast dividend, that holding could generate roughly $414 in annual dividend income. Based on the FY27 forecast, the income would be around $424.

That is before tax and any franking credits. That looks attractive to me, especially for a business with defensive characteristics.

Why I’d buy

I think Telstra’s appeal comes from the combination of everyday demand and improving focus.

The company has spent years simplifying itself, investing in its networks, and leaning into its strongest asset: connectivity. That may not sound exciting, but I think it can be valuable for passive income investors.

Telstra’s mobile network remains a major competitive advantage. Customers may look for value, but reliability, coverage, and speed still count. For households and businesses, losing connection is more than an inconvenience.

That gives Telstra pricing power that many companies would like to have.

There are risks. Capital expenditure is ongoing, competition remains active, and dividend growth is unlikely to be dramatic every year.

But I think Telstra offers something useful in an uncertain economic environment: a business built around a service that remains essential even when consumers are watching their budgets.

Foolish takeaway

I think Telstra shares are a buy for passive income.

The forecast yield is attractive, but the bigger appeal is the nature of the business behind it. Connectivity is now woven into work, payments, entertainment, travel, security, and everyday communication.

That gives Telstra a defensive quality I value.

The shares may not deliver explosive growth, and investors should still watch competition and network spending. But for those wanting ASX passive income from a business with steady demand, I think Telstra looks like a strong option to buy today.

The post Are Telstra shares a buy for passive income? appeared first on The Motley Fool Australia.

More reading

• How much do I need in my superannuation to get $6,000 per month in passive income?
• How much is needed in superannuation to target a $70,000 annual passive income?
• 5 of the best investments on the ASX right now to complement your superannuation
• If I invest $8,000 in Telstra shares, how much passive income will I receive in 2027?
• How much do I need in superannuation to receive $5,500 per month in passive income?

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 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 Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.3% to 8,803.9 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 to open slightly lower

The Australian share market looks set for subdued session on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points lower. In late trade in the United States, the Dow Jones is down 0.25%, the S&P 500 is down 0.3%, and the Nasdaq has dropped 0.75%.

Oil prices race higher

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good day of trade on Wednesday after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2.9% to US$70.53 a barrel and the Brent crude oil price is up 3.1% to US$74.22 a barrel. This followed reports of attacks on tankers in the Strait of Hormuz.

Buy Netwealth shares

The team at Bell Potter continues to see value in Netwealth Group Ltd (ASX: NWL) shares. This morning, in response to a quarterly update, the broker has retained its buy rating and $30.00 price target on the investment platform provider’s shares. It said: “Our Buy rating is unchanged, and we upgrade our net flow estimates +8% FY27-29. Building in margin guidance prompts us to downgrade EPS -7%/-4% and we leave headroom on the FUA target. NWL is looking to replicate EPS growth. The mandate win is the first example of a catalyst, independent of any potential vendor attrition.”

Gold price softens

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a soft session on Wednesday after the gold price softened overnight. According to CNBC, the gold futures price is down 0.35% to US$4,153 an ounce. Rising oil prices have sparked fears of rising inflation and interest rate hikes.

A2 Milk shares go ex-dividend

A2 Milk Company Ltd (ASX: A2M) shares are going ex-dividend this morning and could trade lower. Last month, the infant formula company declared a fully franked special dividend of 28.8 cents per share. Based on its last close price of $7.37, this represents an attractive 3.9% dividend yield. Eligible shareholders can look forward to receiving this dividend later this month on 24 July.

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

More reading

• Here are the top 10 ASX 200 shares today
• ASX 200 slips again: Why the market can’t follow Wall Street higher
• A2 Milk shares jump again as China worries start to ease
• Qube Holdings: Supreme Court approves takeover scheme
• Summerset Group delivers Q2 update

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

Investing in superannuation is a great way to generate a passive income for your retirement years.

Not only does your super help to build wealth for later on in life, but it also comes with the added bonus of low tax rates and the benefit of long-term compounding.

But how much do you actually need to be able to get the passive income you want when you transition to your pension phase?

Let’s investigate using a $6,000-per-month passive income as a guide.

How much do I need in superannuation to get $6,000 of monthly passive income?

If you want to earn $6,000 in passive income every month from your superannuation, that equates to $72,000 per year in dividend payments.

In order to work out what superannuation balance you’d need to get that level of income, simply divide your annual passive income by the dividend yield.

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

For example, a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of passive income. 

How much do I need if my portfolio yields 3% to 7%?

If your overall portfolio has a dividend yield of around 3%, you’ll need a balance of around $2.4 million to earn $72,000 per year in passive income.

A $2.4 million portfolio isn’t achievable for many Australian investors, but the good news is that, as the dividend yield of your portfolio increases, the superannuation balance needed to earn the same passive income goes down.

Say the yield of your portfolio is around 4% or 5%, for example, your balance would need to be closer to $1.8 million or $1.44 million to earn the same dividend income. Again, these are huge numbers for a superannuation portfolio, but if you raise the yield a little higher, it’s even more achievable.

A superannuation investment portfolio yielding around 6% would need to be around $1.2 million in order to earn $72,000 per year in dividend payments.

Meanwhile, a 7% dividend yield would need closer to $1 million to earn the same amount in passive income. 

Note, though, that while it’s tempting to build a portfolio with a lower amount and a high yield, it can be risky from an investment perspective. Generally, the higher the yield, the higher the risk associated with that ASX stock. Instead, you should concentrate on good-quality stocks that are proven to stand the test of time.

Ok, so what ASX shares can I buy around these dividend yields?

There is a huge range of shares available, but here are some of my favourites.

Lower-yielding ASX dividend-paying shares such as Wesfarmers Ltd (ASX: WES), Evolution Mining Ltd (ASX: EVN), and Washington H. Soul Pattinson and Co Ltd (ASX: SOL) are solid and reliable shares that offer a yield of around 2% to 3%.

For a mid-range yielding ASX dividend option, I’d look at defensive assets like Telstra Group Ltd (ASX: TLS). Qantas Ltd (ASX: QAN) is a good option if you want travel exposure. Meanwhile, Yancoal Australia Ltd (ASX: YAL) and blue-chip majors like BHP Group Ltd (ASX: BHP) pay a decent dividend of around 3% to 4%.

For a higher 5% to 6% dividend yield, I’d look at reliable payers like APA Group (ASX: APA) or Origin Energy Ltd (ASX: ORG).

If you want to take on more risk and go for a much higher-yielding ASX stock, my picks would be something like IPH Ltd (ASX: IPH) or the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX). These typically yield around 9% or more.

The post How much do I need in my superannuation to get $6,000 per month in passive income? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Life360, South32, Wesfarmers shares
• How should I invest my money in FY27?
• How much is needed in superannuation to target a $70,000 annual passive income?
• 5 things to watch on the ASX 200 on Tuesday
• 5 of the best investments on the ASX right now to complement your superannuation

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 Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended BHP Group, IPH Ltd , and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.