Retiring with $1 million in superannuation to support a comfortable retirement is a great goal.

And, depending on your lifetime salary and whether you make additional voluntary contributions to your super over time, it’s certainly an achievable figure.

As for how much passive income you can earn from that $1 million balance, that will, of course, depend on the yield that you’re earning.

Now, for the purposes of this article, we’ll assume you have a sizeable amount of additional assets, as well as other liquid savings and investments to cover any unexpected costs. If not, it’s generally not advisable to invest all of your superannuation into the stock market.

But if that is the case, it could enable you to invest the full $1 million in quality S&P/ASX 200 Index (ASX: XJO) dividend stocks. With history as our guide, this is a great means to achieve a reliable annual passive income stream.

We’ll look at a few of those quality ASX 200 dividend stocks below, as well as calculate how much passive income you might expect to receive from that $1 million in superannuation.

But first…

Inflation and trailing yields

The idea behind this $1 million superannuation investment is to earn an annual passive income stream without drawing down on the balance. You’ll also want to at least match inflation levels to ensure the real (inflation-adjusted) income you’re earning isn’t eroded over time.

Now, the S&P/ASX 200 Gross Total Return Index (ASX: XJT), which includes all cash dividends reinvested on the ex-dividend date, has gained 42.2% over the past five years. That works out to an annualised return of about 7.3% per year.

Remember that figure.

Also, remember that the dividend yields you usually see quoted are trailing yields. Future yields may be higher or lower depending on a number of company-specific and macroeconomic factors.

With that said…

How much passive income from a $1 million superannuation investment

We’ll look at three ASX 200 dividend stocks to give you some idea of the yield you might receive from that superannuation investment (based on market prices on 10 September).

First, Aussie fuel supplier Ampol Ltd (ASX: ALD) shares trade on a fully-franked trailing dividend yield of 5.7%.

Then we have big four ASX 200 bank stock Westpac Banking Corp (ASX: WBC). Westpac shares trade on a fully-franked 4.4% trailing dividend yield.

And third, ASX 200 telco Telstra Group Ltd (ASX: TLS) shares trade on a 4.3% trailing dividend yield, franked at 90%.

If you were to invest the same amount into each of the above ASX 200 dividend stocks, you could then expect a yield of 4.8%.

So, your $1 million superannuation should see you earning $48,000 a year in passive income, with tax benefits from those franking credits.

Now remember the 7.3% annualised gains posted by the S&P/ASX 200 Gross Total Return Index? That extra 2.5% in annual growth over the passive income yield should be enough to mitigate the eroding effects of inflation over time.

The post I’m planning to retire with $1 million in superannuation. How much passive income can I earn?  appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.

BHP Group Ltd (ASX: BHP) shares are among the most popular ASX dividend shares because of the company’s perceived strength and dividend yield.

The ASX mining share can offer a high dividend yield, though peers like Fortescue Ltd (ASX: FMG) and Rio Tinto Ltd (ASX: RIO) typically offer a higher yield.

However, while BHP may not always offer the highest dividend yield on the ASX, it can provide shareholders with diversification rather than dependence on a single commodity, which is appealing.

BHP produces iron ore, copper and coal. It’s also working on a potash (fertiliser) project in Canada called Jansen. By generating earnings from multiple resources, the business is able to lower the risk and volatility of being exposed to just one resource.

I thought the FY26 result was a great example of the ASX mining share’s ability to generate larger profits and dividends.

In FY26, BHP’s board of directors increased the annual dividend per share by 56% to US$1.72.

The business reported revenue growth of 15% to US$58.8 billion, underlying attributable profit growth of 30% to US$13.2 billion, profit from operations growth of 23% to US$23.9 billion and underlying operating profit (EBITDA) growth of 27% to US$32.9 billion.

Copper was the key driver of the result, with the average realised (meaning sold) price soaring 35% to US$5.74 per pound. This helped copper’s underlying operating profit (EBITDA) rise 48% to US$18.2 billion. Rising demand helped, particularly from electrification and data centres.

In this article, we’re not thinking about FY26 payments. We’re going to look at the potential FY27 annual dividend, which will be paid in 2027.

2027 dividend projection for owners of BHP shares

According to the projection on CMC Invest, the ASX mining share is projected to pay an annual dividend per share of $2.07 in the 2027 financial year, representing a sizeable potential reduction for Australians.

At the time of writing, that translates into a dividend yield of 3.4% excluding franking credits and 4.9% including franking credits.

If someone were to invest $15,000 in BHP, they would be able to buy 246 BHP shares, with a little bit of money left over.

With those 246 BHP shares, investors would receive $509.22 in passive income and $727.46 overall, including franking credits.

Is this a good time to invest in the ASX mining share?

According to CMC Invest, there have been 15 analyst rating calls on the business in the last three months.

Of those 15, 13 were a hold rating, one was a buy rating, and one was a sell rating. The investment professionals are very neutral on the appeal of the company’s valuation right now.

The average price target of those 15 ratings is $59.23. That means those analysts collectively predict the BHP share price could fall by 2% within the next year (at the time of writing).

For now, it seems like there are better ASX shares for Australians to buy.

The post If I invest $15,000 in BHP shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

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• Bought $10,000 worth of BHP shares 5 years ago? Guess how much passive income you’ve already earned
• Are BHP, CBA, and CSL shares top buys?
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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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Rio Tinto vs APA Group shares: Which is better for passive income?

Everyday Aussie investors often weigh Rio Tinto Ltd (ASX: RIO) against APA Group (ASX: APA) when hunting for steady, passive income from shares. The two are giants in totally different fields — with Rio Tinto at the heart of mining, and APA Group a backbone for Australia’s energy infrastructure. Both throw off regular dividends, but which one is more compelling for those wanting a reliable stream of cash flow? Here’s how they stack up for income-focused portfolios.

The case for Rio Tinto

Rio Tinto is one of the world’s largest miners, producing iron ore, aluminium, lithium, copper, and more. This global giant has been a mainstay of the ASX for decades. Its revenue streams are deeply tied to commodity cycles, but the company’s vast, low-cost assets and operational scale give it firepower for substantial and regular dividend payouts.

Looking at the latest numbers, Rio Tinto boasts a market cap of $61.76 billion and a price-to-earnings (P/E) ratio of 16.07. Its dividend yield stands at 3.99%, fully franked at 100%, meaning investors get the full benefit of franking credits. According to its most recent company profile, Rio Tinto has grown through many mergers and acquisitions, which has helped it become such a dominant force. Its scale, reliable cash flows, and tendency for occasional special dividends make it a go-to for income-seekers, especially those who value franking.

The case for APA Group

APA Group is Australia’s top energy infrastructure company, running a sprawling network of gas, electricity, solar, and wind assets. It owns and operates much of the country’s gas pipeline network and is steadily expanding into renewables. APA Group’s revenues are less sensitive to the wild ups and downs of commodities, thanks to long-term contracts and regulated assets. This can make its dividends feel steadier to income investors.

APA Group’s market cap is $14.27 billion, with a notably higher dividend yield at 5.39%. However, its P/E ratio is a lofty 68.36, which stands out compared to Rio Tinto’s much lower multiple. The franking level on APA’s dividends is well below Rio’s: the latest is just 31.4%, and looking back, many past dividends have variable (often low) franking. As of its company overview, APA Group actively invests in renewable assets amid its historical strength in gas. Investors who favour essential services or lower volatility in earnings may prefer APA’s business exposure and defensive qualities.

Recent share price performance

Here’s how their shares performed between 18 August 2026 and 17 September 2026.

• Rio Tinto: YTD return of 17.8%. During this month, the share price was somewhat volatile, starting around $167, peaking above $179 in early September before easing back to $166.09.
• APA Group: YTD return of 23.4%. APA shares began the period near $9.85 and rose steadily, ending at $10.78, representing a much smoother upward trend compared to Rio’s swings.

Which is the better buy?

For pure, reliable passive income, I’d lean toward Rio Tinto over APA Group. While APA Group boasts a punchier 5.39% yield and a record for steady dividends, its lower franking credit levels and extremely high P/E ratio (68.36) give me pause. By contrast, Rio Tinto’s 3.99% yield may not look as high at first glance, but it is fully franked, so the return after tax is more compelling — especially for those who benefit from franking credits.

Rio’s dividend history also shows substantial, ongoing payouts (plus occasional special dividends) backed by strong earnings and underlying cash flow. APA’s payout, while reliable, comes with much less franking and looks more stretched against its underlying earnings.

APA Group may appeal to investors more focused on lower earnings volatility and the appeal of essential infrastructure. But when I focus on the net after-tax income into my bank account — and factor in value metrics and payout sustainability — Rio Tinto is my pick for better passive income.

The post Rio Tinto vs APA Group: Which is better for passive income? appeared first on The Motley Fool Australia.

More reading

• Starting with $20,000, how to build a portfolio generating $5,000 a year in passive income
• 2 ASX dividend shares raising dividends like clockwork
• South32 vs Rio Tinto: 2 popular ASX mining shares compared
• Woodside Energy vs Fortescue: Which ASX mining share is best for passive income?
• Should I buy Rio Tinto shares for passive income?

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 positions in and has recommended Apa 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.