I’m sure most people reading this want to increase their wealth and grow their annual passive income, whether that’s inside or outside superannuation.

How we structure our investments can make a big difference to how much tax we pay. We can invest in our own name, in a company, a trust, superannuation and so on.

If investors want dividend income, then how they invest can make a big difference in how much income tax is paid.

If an Australian has no income other than dividends in their own name, they can earn $18,200 tax-free. However, a full-time working Australian may lose a fair portion of their dividend income to tax because they’re in a higher tax bracket.

Superannuation is taxed at a lower rate, making it a particularly appealing structure for full-time workers.

Why I think ASX shares are the right pick for passive income

Quality ASX shares can offer a pleasing mix of a strong dividend yield, a rising payout over time, and, hopefully, capital growth.

With strong earnings, ASX shares can deliver a generous dividend payout ratio. Australian companies can provide Australian tax residents with the added benefit of franking credits, a refund of the company tax paid to ensure the dividend is taxed at the investor’s relevant tax rate.

There are many dividend-paying options on the ASX, such as blue-chip companies Wesfarmers Ltd (ASX: WES) and Telstra Group Ltd (ASX: TLS).

There are real estate investment trusts (REITs) such as Centuria Industrial REIT (ASX: CIP), Rural Funds Group (ASX: RFF) and Charter Hall Long WALE REIT (ASX: CLW). REITs don’t generally generate franking credits because they are trusts not companies.

Investors can also choose investment companies such as Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Australian United Investment Company Ltd (ASX: AUI), Argo Investments Ltd (ASX: ARG), L1 Capital Long Short Fund (ASX: LSF) and MFF Capital Investments Ltd (ASX: MFF).

Depending on the superannuation fund, investors may be able to choose specific ASX share investments for annual passive income. SMSFs obviously have a lot of investment flexibility.

How superannuation can generate $95,000 of annual passive income

An investor would need a very sizeable superannuation balance to generate that much income.

The required portfolio size depends on the portfolio’s dividend yield.

For example, if the dividend yield was 10% then the portfolio would need to be $950,000. But, I don’t think it’d be realistic or sustainable to have a portfolio yield that high.

A 1% yield would need a $9.5 million portfolio. But, if we’re aiming for dividends, that yield would be too low, in my view.

I’d aim for the portfolio yield to be somewhere in the middle, at say 4% to 6% including franking credits. At that level, an investor is looking at a portfolio size of between $1.58 million to $2.375 million.

It’s a sizeable level required, but with regular investing and compounding, investors can reach those balances, or close to it.

The post How much is needed in superannuation to target a $95,000 annual passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund, Mff Capital Investments, Rural Funds Group, and Washington H. Soul Pattinson and Company Limited. 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 Mff Capital Investments, Rural Funds Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. 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.

The Capricorn Metals Ltd (ASX: CMM) share price is in focus today after the company announced completion of the Karlawinda Expansion Project, with the new plant hitting its targeted 6.5 million tonnes per annum throughput on schedule.

What did Capricorn Metals report?

• The Karlawinda Expansion Project (KEP) construction and commissioning completed on schedule.
• New crushing, milling, and CIL circuits now fully operational and running continuously.
• Steady state project throughput of 6.5 million tonnes per annum (Mtpa) achieved.
• Expanded Karlawinda Gold Project expected to produce about 150,000 ounces of gold per year.
• Mine life exceeds 10 years based on current reserves.

What else do investors need to know?

The company credits its construction and operations teams, along with key contractors, for delivering the Karlawinda Expansion Project on time over a 12-month build. The plant is currently processing low-grade ore and will ramp up to run-of-mine grade ore in the next week as operations settle into a steady state.

Infrastructure including CIL areas and tailings storage pipeline work are also commissioned, with run-of-mine ore stockpiling underway. Ongoing optimisation of the crushing circuit is set to continue now that main construction is complete.

What did Capricorn Metals management say?

Capricorn Executive Chairman Mark Clark said:

The commencement of continuous ore processing at the Karlawinda Expansion Project on schedule is a significant milestone for Capricorn. It is the culmination of a huge effort from our construction and operations teams, supported by key contractors. We now look forward to the transition of Karlawinda into a long life operation producing around 150,000 ounces of gold per annum.

What’s next for Capricorn Metals?

Capricorn Metals plans to shift from processing low-grade ore to run-of-mine grade in the coming week to reach full steady state operations. The expanded Karlawinda Gold Project is forecast to support a long-term annual gold output of about 150,000 ounces, underpinned by a mine life of at least a decade.

The company also notes ongoing work to further optimise product size through its new crushing circuit, with the potential to enhance operational efficiency and output over time.

Capricorn Metals share price snapshot

Over the past 12 months, Capricorn Metals shares have risen 24%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has declined 1% over the same period.

View Original Announcement

The post Capricorn Metals shares: Karlawinda Expansion Project completes on time appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

ASX blue-chip shares can be a great source of dividend income thanks to their stability and regular profit generation.

The two businesses I’m going to highlight have already provided investors with plenty of good passive income over the years.

In my view, the two ideas below are compelling to me.

Argo Investments Ltd (ASX: ARG)

The first ASX blue-chip share is one of the oldest listed investment companies (LICs) – it has been operating since 1946. The job of a LIC is to invest in other shares on behalf shareholders.

Argo focuses on investing in ASX blue-chip shares, so it can give us exposure to a portfolio of names and make investment decisions about which stocks to own.

At the end of August 2026, its biggest positions were BHP Group Ltd (ASX: BHP), Macquarie Group Ltd (ASX: MQG), Rio Tinto Ltd (ASX: RIO), Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), ANZ Group Holdings Ltd (ASX: ANZ), Westpac Banking Corp (ASX: WBC) and CSL Ltd (ASX: CSL).

Last month, the board of directors declared a fully franked final dividend of 20 cents per share. Together with the interim dividend of 18.5 cents per share, the full-year dividend was hiked to a record high of 38.5 cents per share.

In FY27, it is changing to pay quarterly dividends and the board intends to declare a quarterly payout of 10 cents per share for the first four quarterly dividends. That’d be a year-over-year increase of 3.9% – likely more than inflation.

The expected FY27 grossed-up dividend yield is 6.2%, including franking credits, at the time of writing.

Scentre Group (ASX: SCG)

Scentre is one of Australia’s largest real estate investment trusts (REITs). It owns Westfield shopping centres across Australia and New Zealand.

The ASX blue-chip share can pay distributions from its strong net rental profits.

The FY26 half-year result was a strong example of the business’s performance, despite tougher operating conditions.

Funds from operations (FFO) – essentially the net rental profit – grew 4.4% to $612 million or 11.73 cents per security. This funded a 4.9% increase in the distribution to 9.215 cents per security.

Despite the rise of e-commerce, Scentre Group’s annual customer visits increased by 3.3% to 552 million. For the 12 months to 30 June 2026, total sales grew by $1 billion to a record $30.3 billion, up 4.2%. Specialty sales grew by 5.4%.

For the month of July, total business partner sales grew 2.7%, and specialty sales were 3.6% higher.

Rent escalations increased by 5.5% in the six months to 30 June 2026, while the ASX blue-chip share completed 1,401 leasing deals, achieving average releasing spreads of 3.7%. These are useful tailwinds for future rental profit growth.

It’s also looking to use some of its excess land to build thousands of dwellings and these plans are progressing.

The business recently upgraded its distribution guidance for 2026 to growth of 4.25% to 18.47 cents per security. That translates into a forward distribution yield of 5.4%.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 CSL, Macquarie Group, and Wesfarmers. The Motley Fool Australia has recommended BHP Group, CSL, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.