Washington H Soul Pattinson vs Macquarie Group shares: Which dividend stock suits retirees best?

If you’re a retiree thinking about income and stability, two blue-chip ASX names might be sitting on your shortlist: Washington H Soul Pattinson and Co Ltd (ASX: SOL) and Macquarie Group Ltd (ASX: MQG). They’re both stalwarts, well-regarded for diversified holdings and consistent dividends—but which one really deserves a place in a retiree’s portfolio? Here’s how they compare on yield, franking, and all-important reliability.

The case for Washington H Soul Pattinson and Co

Washington H Soul Pattinson—often known as Soul Patts—has its roots in Australian pharmacy, but these days is best described as a diversified investment house. Over its long history (listed since 1903), Soul Patts has built a portfolio spanning listed and private companies, real assets, and emerging ventures. Some of its largest stakes, according to its most recent public description, are in TPG Telecom and New Hope Corporation. The 2025 merger with Brickworks has also made Brickworks a subsidiary under the Soul Patts umbrella.

From a fundamentals viewpoint, several things stand out. Soul Patts has a market cap of $17.29 billion and sports a price-to-earnings (P/E) ratio of 7.08, which is much lower than Macquarie’s. The dividend yield clocks in at 2.36%, but perhaps most attractive for retirees, dividends come fully franked—at a rate of 100%. That means shareholders can potentially claim the full benefit of franking credits. Soul Patts has a long streak of consistently increasing dividends, rarely missing an opportunity to reward shareholders with reliable, tax-effective income.

The case for Macquarie Group

Macquarie Group is one of Australia’s financial powerhouses, providing banking, funds management, advisory, and investment services in more than 30 countries. While technically a bank, Macquarie differs from the “big four,” with much of its money made from asset management, infrastructure, and investment banking rather than traditional retail banking.

Looking at the numbers, Macquarie is a much larger company, with a $92.97 billion market cap and a significantly higher P/E ratio of 19.12. The dividend yield is a touch higher at 2.89%. A big plus is the generous dollar amount per share—for this year, $7.00 per share in dividends. However, only 35% of those dividends are franked, which means Australian retirees won’t get the maximum tax benefit from those payments. Macquarie’s size and global reputation add a layer of strength, and its dividends tend to be relatively predictable, but they may be less tax-effective compared to Soul Patts.

Valuation comparison

Here’s how the two stack up side-by-side on key metrics:

Metric	Washington H Soul Pattinson	Macquarie Group
Market Cap	$17.29 billion	$92.97 billion
P/E Ratio	7.08	19.12
Dividend Yield	2.36%	2.89%
Earnings per share (EPS)	6.417	12.669
Dividend per share	$0.96	$7.00
Franking	100%	35%

Note: Dividend yields are relatively close, but Macquarie’s dividends are only partially franked, while Soul Patts offers fully franked dividends—often a priority for income-focused investors. It’s also notable that Soul Patts’ P/E suggests a much lower valuation relative to current earnings. If you notice the gap between EPS and P/E, keep in mind that reported P/E ratios may sometimes be based on underlying or future earnings rather than trailing or statutory EPS, which can create apparent inconsistencies.

Recent share price performance

Let’s consider recent share price action (up until 23 September):

• Washington H Soul Pattinson closed at $45.51 on 23 Sept 2026, up slightly by 0.2% from the previous day.
• Year-to-date return for SOL shares sits at 23.6%—a strong showing.
• Macquarie Group closed at $242.35 on 23 Sept 2026, barely changed from the day prior (+0.03%).
• Year-to-date return for MQG shares is 21.3%, also very healthy.

That’s robust price momentum for both, with Soul Patts very slightly ahead on total return as of the latest figures.

Which is the better buy?

For my money, if I were a retiree primarily after dividends, my pick would be Washington H Soul Pattinson. Here’s why: even though its headline yield is a tad lower than Macquarie’s, Soul Patts’ commitment to 100% franking maximises the after-tax cash flow for most Australian retirees, especially those who can use franking credits to reduce or eliminate tax. Soul Patts also carries a much lower P/E ratio, which suggests either a lower price relative to earnings or simply a market expectation of steadier but less spectacular growth. Its history of consistent—and growing—dividends gives me extra confidence for dependable income.

That’s not to say Macquarie isn’t impressive; it’s a massive institution offering higher absolute dividend dollars, a slightly higher yield, and global stability. However, the lower franking cuts into the tax advantage, which is often a make-or-break factor in retirement income streams. Both are excellent businesses, but for franked, tax-effective dividends and reliable track record, I’d lean towards Washington H Soul Pattinson in a retiree-focused portfolio.

The post Soul Patts vs Macquarie Group: Best ASX dividend stock for retirees? 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 positions in and has recommended Macquarie Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Macquarie Group. 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 draft. 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.

Self-managed superannuation funds (SMSFs) are becoming increasingly popular as a way to invest retirement savings. The balances within SMSFs are growing too.

According to the ATO SMSF quarterly statistical report, the number of SMSFs grew by 7.4% to 680,301, with 52,020 establishments during the year.

According to the latest Class annual benchmark report, members aged 25 to 49 continue to make up the majority of members in newly established Class SMSFs. In FY26, they accounted for 63.2% of members in newly established funds, up from 59.5% in FY26.

Now let’s look at the balance within these SMSFs.

Large balances are getting larger

As you’d expect, compounding and contributions are helping increase the balance of these SMSFs.

According to Class, SMSFs with balances above $2 million accounted for 27% of Class SMSFs in FY25, up from 26.1% in FY24 and 23.6% in FY21. FY25 is the latest year with complete data because not all balances and contributions have been processed yet in Class’ software.

The percentage of Class SMSFs with balances above $10 million increased, as did the percentages for balances between $5 million and $10 million, $3 million and $5 million, $2 million and $3 million, and $1 million and $2 million.

What is the average SMSF balance?

There are a few different figures to consider with SMSFs.

SMSFs can have multiple members, so the average balance of an SMSF is not necessarily the average member balance.

According to Class, the average assets per SMSF as at 30 June 2026 came to $1.88 million. Average assets per SMSF member were $1.01 million.

I think it’d also be interesting to see what the average balance is for each member in a multi-member fund.

SMSFs with more members continue to show wide balance differences between members, according to Class. In four-member funds, the member with the highest balance averaged $1.94 million in FY26. That compares to $1.18 million, $380,234 and $242,642 for the members with the second, third and fourth balances, respectively.

Class suggested the differences may reflect the different life stages within four-member SMSFs. The two lower-balance members were much younger on average, at 47.1 years and 47.2 years, while the two higher-balance members were 63.6 and 60.3 years on average.

Given how long retirees may need their assets to last and the potential future costs of healthcare and aged care, it makes sense that SMSF members want to build very sizeable balances.

The post Here’s the average Australian superannuation balance in SMSFs 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Myer. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are in the market for some new additions to your ASX share portfolio, then read on!

That’s because the team at Morgans has put buy ratings on three shares this week. Here’s what it is recommending:

Cogstate Ltd (ASX: CGS)

This healthcare technology company has been given a buy rating and $4.07 price target this week by Morgans. Based on its current share price of $3.37, this implies potential upside of approximately 20%.

Commenting on its recommendation, Morgans said:

CGS is a high-quality, science-led provider of digital cognitive assessment and endpoint data quality services to the clinical trials industry. Following a record FY26, CGS enters FY27 with record contracted future revenue of US$118.5m (+32% pcp), a diversifying pipeline, and a two-year technology program designed to expand margins as volumes grow without a corresponding increase in headcount. It is debt-free with US$34.7m in cash, generates high incremental margins on a largely fixed cost base, and returns capital through dividends while retaining capacity to reinvest. 

The share price has re-rated strongly as the market has recognised the improving quality and predictability of earnings. The key question is whether CGS can sustain continued contract growth while converting scale into improved margins, an outcome we see as achievable. We initiate coverage with a BUY rating and A$4.07 target price.

Nufarm Ltd (ASX: NUF)

Another ASX share that has been given the thumbs up from Morgans is agricultural chemicals company Nufarm. 

The broker has put a buy rating and $4.24 price target on its shares. This suggests that upside of around 40% is possible from current levels.

Morgans believes that Nufarm shares are materially undervalued compared to peers. It explains:

If it wasn’t for two unplanned manufacturing disruptions, in our view, NUF would have beaten consensus expectations given Seed Technologies earnings have once again been upgraded due to higher Omega-3 prices. Importantly, NUF is still guiding towards strong earnings growth in FY26 and is on track to materially deleverage, with further improvement targeted in FY27. Given NUF’s operating and financial leverage and high tax rate in FY26, a minor EBITDA revision results in a large downgrade to EPS. 

With further operational improvements targeted, another A$50m cost out program and more Omega-3 oil to sell at high prices, we have left our FY27/28 EBITDA forecasts unchanged, while EPS in these years increases given lower D&A post plant closures. While a revision before an Investor Day next week is unfortunate, the turnaround plans at NUF remain on track and the stock is materially undervalued compared to peers. We reiterate our BUY rating with a new price target of A$4.24.

Ramelius Resources Ltd (ASX: RMS)

Finally, this gold miner has been given a buy rating and $5.02 price target from Morgans this week.

Based on its current share price of $3.87, this implies potential upside of approximately 30% over the next 12 months.

Morgans was pleased with its four-year growth outlook, highlighting that it is on a pathway to becoming a 600,000 ounces per annum producer by FY 2030. It said:

RMS has released its FY27 guidance and four-year outlook, outlining a clear pathway to ~600kozpa by FY30, driven by the expansion of the Mt Magnet processing hub and a growing contribution from higher-grade underground ore sources. The outlook reinforces our view that RMS is developing one of the highest quality growth profiles in the Australian gold sector. 

FY27 guidance of 205-225koz at an AISC of A$2,150-2,350/oz was broadly in line with expectations, while the medium-term outlook delivered meaningful production upgrades from FY29 onward as higher-grade material from Dalgaranga, Cue and Galaxy displaced lower-grade feed in the mine plan. We maintain our BUY rating and raise our price target to A$5.02ps.

The post 3 ASX shares given buy ratings this week offering 20% to 40% upside appeared first on The Motley Fool Australia.

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