ANZ Group Holdings Ltd (ASX: ANZ) shares have long been a popular dividend pick. As one of the major ASX bank shares, the company benefits from significant scale and can deliver a strong dividend yield, supporting high passive income.

Banks usually trade on a relatively low price/earnings (P/E) ratio and have relatively high dividend payout ratios compared to other sectors, which is why they can deliver a solid dividend.

Of course, dividends are not guaranteed, so don’t take any projections as certain. The payout could be lower, or higher, than expected. Let’s take a look at what is projected of the ASX bank share and what that could mean for receiving $9,000 of annual passive income.

Dividend projection

ANZ has been very consistent with its half-year dividend – ever since mid-2024 it has paid 83 cents per share every six months. That means its last 12 months of dividends come to $1.66 per share.

According to the projection on Commsec, the ASX bank share is projected to pay an annual dividend per share of $1.66 in FY26, the same as FY25 and FY24.

Looking further ahead to FY27, the annual dividend per share is also expected to be $1.66 again. On the one hand, that’s pleasing stability. On the other hand, a flat dividend means inflation is eating away at the value of the dividend.

What would it take to generate $9,000 of passive income?

I’m sure many investors would like to receive $9,000 in annual passive income, whether from ANZ shares or another option. But this article focuses on ANZ shares.

As mentioned above, the ASX bank share is projected to pay an annual dividend of $1.66 per ANZ share, so to generate $9,000 of annual passive income, it would take 5,422 ANZ shares.

But, the above number doesn’t take into account franking credits, which arguably should be included as it’s part of the income package from Australian companies.

If franking credits are included, an investor would need only 4,104 ANZ shares to generate $9,000 in annual grossed-up dividend income.

Is this a good time to invest in ANZ shares?

Analysts don’t think the valuation is particularly appealing right now. There have been eight ratings on the business within the last three months, with the average price target being $35.39.

That price target implies the experts collectively think, at the time of writing, that the ANZ share price will fall 7% over the next year.

It looks like there are better ideas to buy out there.

The post How many ANZ shares do I need to buy for $9,000 of passive income? 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 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.

The Tuas Ltd (ASX: TUA) share price is in focus today after the company revealed a 24% revenue boost to S$187.6 million and an underlying EBITDA of S$83.7 million for FY26.

What did Tuas report?

• Revenue up 24% over FY25 to S$187.6 million
• Underlying EBITDA increased 22% to S$83.7 million
• Statutory NPAT improved to S$26.0 million (underlying NPAT: S$29.6 million)
• Strong subscriber growth: mobile users rose to 1.46 million, broadband to 62,000
• Year-end cash and term deposits of S$498.8 million

What else do investors need to know?

Tuas Limited continues to focus on network investments, supporting rapid subscriber growth and expanding its 5G coverage. The company also upgraded its core mobile network and introduced new broadband packages, including a 10Gbps business offer.

The proposed acquisition of M1 was not completed, as it lapsed following regulatory delays and subsequent investigation into the Singapore telco sector’s cyber security. Tuas’ subsidiary, SIMBA, remains fully compliant with regulatory standards and is cooperating with authorities.

What’s next for Tuas?

Looking ahead, Tuas intends to drive further revenue growth by leveraging SIMBA’s expanding network and product innovation. Planned capital expenditure on mobile and broadband infrastructure is set at S$50–55 million for FY27.

With an added focus on cybersecurity, Tuas expects to invest S$15–30 million in meeting enhanced requirements. The business remains alert for regulatory updates and is positioned to adapt its strategy as needed.

Tuas share price snapshot

Over the past 12 months, Tuas shares have declined 68%, trailing the S&P/ASX 200 Index (ASX: XJO), which has fallen 1% over the same period.

View Original Announcement

The post Tuas FY26 results: revenue climbs, subscriber base expands appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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.

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.