Wesfarmers Ltd (ASX: WES) shares have fallen into the red in early morning trade on Tuesday.

At the time of writing, shares in the conglomerate – whose retail subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks, and Priceline – are down around 1.5% and are changing hands for $83.58 a piece.

Today’s decline follows a 4% drop in the share price yesterday.

Interest rate and inflation concerns, and cost of living pressures have acted as strong headwinds for the company so far this year. 

Wesfarmers shares have been pretty volatile for the year-to-date, swinging anywhere between an annual low of $71.26 in mid-May and a high of $92.96 in mid-July.

The shares are now around 2% higher for the year-to-date but still 7% lower than a year ago.

For context, the S&P/ASX 200 Index (ASX: XJO) is up around 4% for the year-to-date, and roughly 1.5% higher than 12 months ago.

What do brokers tip next for Wesfarmers shares?

Wesfarmers is due to announce its FY26 results on the 27th of August. 

Investors are eager to find out Wesfarmers’ FY26 key group financial metrics and final dividend size. The result is expected to influence the direction of Wesfarmers shares and sentiment about the company’s outlook.

Wesfarmers has already paid a fully-franked interim dividend of $1.02 per share. Consensus estimates point to a final FY26 dividend of around $2.20.

It looks like the experts are pretty bearish on the outlook for Wesfarmers shares ahead of its results announcement.

According to Market Index data, the majority of brokers have a sell rating on the conglomerate’s shares. The $78.16 average target price implies a potential downside of around 7% at the time of writing.

The data is similar on TradingView. Again, the majority (nine out of 15) have a strong sell rating on the consumer discretionary shares. However five still think the shares are a hold and one analyst rates the stock as a buy.

The average $77.56 target price implies a downside of around 7%, at the time of writing. Although some think that the shares have the potential to fall up to 22% to $65.10 over the next 12 months.

Morgan Stanley has a sell rating and a $79 price target. The broker recently warned that the rally in consumer discretionary stocks has “run ahead of fundamentals and is unlikely to prove durable”.

Alto Capital’s Tony Locantro also has a sell rating. He thinks that much of Wesfarmers’ quality and long-term growth outlook is already fully reflected in the current valuation. He added that future upside may be constrained by elevated market expectations.

The post Here’s what brokers tip for Wesfarmers shares over the next 12 months appeared first on The Motley Fool Australia.

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

Your superannuation is more than just a pot of savings to fund your retirement. It can also generate a regular passive income once you retire and transition to the pension phase. 

But exactly how much superannuation do you need to be able to earn passive income as high as $50,000 every single year?

Let’s investigate.

How much do I need in my superannuation to generate an annual $50,000 passive income?

The calculation is simple. You need to divide your annual passive income by the dividend yield of your total portfolio, and it’ll give you the amount you’ll need to invest.

The tricky part is that the answer varies significantly depending on your portfolio’s actual yield.

That means a 3% yielding superannuation portfolio would need to be double the size of one that yields 6%.

For $50,000 in passive income on a portfolio yielding 3%, you’d need a superannuation balance of around $1.66 million, because $50,000 ÷ 3% = $1,666,666.

Then, if your portfolio yields closer to 4%, you’d need a superannuation balance closer to $1.25 million to earn the same passive income.

To earn $50,000 per year on a 5% yielding portfolio, your balance would need to be around $1 million.

Increase that to 6%, and you’d need more like $833,000.

If you go higher again to 7% or 8%, you’d be able to earn $50,000 in annual passive income from a $714,000 or $625,000 balance, respectively.

And so on. The higher your yield is, the lower your superannuation balance needs to be.

Can’t I just invest in the highest-yielding ASX shares so that I can earn the same amount off of a lower superannuation balance?

Yes, but it doesn’t make good investment sense. 

When it comes to ASX dividend shares, generally the higher the yield, the higher the risk associated with that stock.

Ideally, you want a diversified portfolio of a range of good-quality ASX shares from different sectors and with a variety of different yields. 

And remember, you don’t need to invest the whole sum in one go. Start with a monthly investment and let compound growth do some of the hard work for you.

Give me some examples of ASX shares that I could look at

ASX blue-chip shares like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Ltd (ASX: CSL) all yield around the 3% level.

If you want something that yields a little higher, at around 4% or 5%, my picks would be something like Telstra Group Ltd (ASX: TLS), Endeavour Group Ltd (ASX: EDV) and NIB Holdings Ltd (ASX: NHF).

Then, for higher-yielding ASX shares, my picks would be APA Group (ASX: APA), Metcash Ltd (ASX: MTS), Fortescue Ltd (ASX: FMG), or Lendlease Group (ASX: LLC). At the time of writing, these shares yield between 6% and 8%.

The post How much do I need in my superannuation to earn $50,000 per year in passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has positions in and has recommended Apa Group, NIB Holdings, and Telstra Group. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares are up 0.1% to 9,082 points on Tuesday.

Among the 11 market sectors, materials and miners are in the lead today, up 1.3%.

The financials and technology sectors lag behind, both down 1.5%.

Let’s check out some new ratings on ASX 200 shares today.

Bank of Queensland Ltd (ASX: BOQ)

The Bank of Queensland share price is $6.36, down 1.1% today and down 19% over 12 months. 

Morgans has an accumulate rating on the ASX 200 financial share with a reduced price target of $6.94.

The broker said: 

BOQ announced finalisation of its capital return related to the equipment finance whole-loan sale, alongside completion of ME customer migration to its digital bank platform.

We make material forecast downgrades. Target price reduced to $6.94/sh. ACCUMULATE retained at current prices, but noting only a c.13% potential TSR including the special dividend.

BOQ is trading on c.0.9x P:TBV and c.11x PER.

PLS Group Ltd (ASX: PLS)

The PLS Group share price is $4.95, down 2.8% today and up 118% over 12 months. 

Arthur Garipoli from Dolphin Partners has a hold rating on this ASX 200 lithium mining share. 

He said (courtesy The Bull): 

This high quality pure play lithium producer recently delivered a solid June quarter report in fiscal year 2026.

Sales were up 28 per cent compared to the March quarter and group revenue was up 31 per cent.

The company has benefited from rising spodumene prices and sustains a solid balance sheet.

Restarting the Ngungaju processing plant is expected to materially lift sales into full year 2027.

Speculation exists that PLS may resume paying dividends following stronger than expected cash generation in full year 2026.

Xero Ltd (ASX: XRO)

The Xero share price is $81.13, down 1.2% today and down 52% over 12 months. 

Tom Fairchild from Lazarus Capital Partners has a sell rating on the accounting software provider.

He said: 

The company generated revenue of $NZ2.75 billion in full year 2026, up 31 per cent on the prior corresponding period.

Xero shares bounced off a low of $61.58 on July 24 to trade at $77.51 on August 13, 2026.

However, the stock was priced at $168.78 on August 13, 2025.

Justifiable investor concerns about margin pressure, artificial intelligence growth and US expansion performance have weighed on the stock and sentiment. Investors can consider cashing in some gains.

The post Buy, hold, sell: Bank of Queensland, Xero, PLS Group shares appeared first on The Motley Fool Australia.

More reading

• Experts name 3 popular ASX 200 shares to sell today
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Motley Fool contributor Bronwyn Allen 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 Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.