A difficult year can sometimes create an opportunity for long-term investors.

Several ASX shares I like have been hit hard over the past 12 months despite having plenty of growth ahead.

Here’s why I think this has created a buying opportunity.

Netwealth Group Ltd (ASX: NWL)

Netwealth shares have had a particularly difficult year and are down almost 40%.

I remain positive on the wealth management platform provider. The company continues to attract money onto its platform as financial advisers and their clients look for better technology to manage investments, superannuation, and reporting.

I think there is still a long runway here. Australia’s pool of superannuation and investment assets should continue growing over time, while Netwealth has been steadily increasing its share of the platform market.

The company is also investing in technology that could make advisers more efficient. Its proposed acquisition of Paradino adds AI-enabled workflow and automation capabilities, which I think could strengthen the platform rather than weaken its position as technology changes the industry.

So, after the share price weakness, I think investors are getting a much more attractive entry point into a business that is still growing.

Temple & Webster Group Ltd (ASX: TPW)

Online retailer Temple & Webster has also been punished by the market. Its shares are down over 80% on a 12-month basis.

I still like the long-term opportunity because online furniture and homewares remain a relatively small part of the broader Australian market.

Temple & Webster does not need to dominate the entire industry to become a much larger business. It simply needs online penetration to keep increasing while the company continues taking share.

Its online model also allows it to offer a large product range without needing the same physical store network as traditional retailers.

The business is targeting significant revenue growth over the next few years, and I think the current share price gives investors the chance to buy before that opportunity is fully reflected again.

There are risks if consumer spending remains weak, but I would be willing to look through shorter-term conditions and focus on where the business could be several years from now.

SiteMinder Ltd (ASX: SDR)

SiteMinder is another ASX share I think has become interesting after a difficult period. Its shares are down over 60% since this time last year.

The company provides technology that helps hotels manage room distribution, bookings, pricing, and their connections with online travel platforms.

I like that SiteMinder sits behind an important part of how hotels operate.

As more accommodation providers move away from manual processes, the company has an opportunity to sell them more software and automate more of the work involved in managing rooms across different sales channels.

Products such as Channels Plus and Dynamic Revenue Plus could also help SiteMinder earn more from existing hotel customers over time.

The share price may remain volatile, but I think the underlying opportunity in hotel technology is still substantial.

Foolish takeaway

A bad 12 months does not necessarily change how I feel about an ASX share.

Netwealth, Temple & Webster, and SiteMinder have all had their challenges, but I can still see clear ways for each company to be much larger in the years ahead.

At lower share prices, I think all three are worth a closer look.

The post 3 ASX shares down 40% to 80% I’d buy on the cheap appeared first on The Motley Fool Australia.

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• Lovisa vs Temple & Webster: Which ASX retailer is the better growth stock today?

Motley Fool contributor Grace Alvino 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 Netwealth Group, SiteMinder, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Netwealth Group and SiteMinder. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation is a fantastic tool to help build wealth to live off in retirement. And an $800,000 balance will provide enough money to live comfortably when the time comes.

But you don’t have to let it sit idly in the meantime.

Instead, you can invest your superannuation balance and generate a regular source of passive income for when you’ve stopped working.

But exactly how much passive income could a $800,000 superannuation balance generate each year?

Let’s investigate.

How much passive income can I generate from an $800,000 superannuation balance?

To calculate the potential passive income from an $800,000 superannuation balance, you need to multiply your total balance by the dividend yield of your portfolio.

It’s a simple calculation, but the problem is that the answer varies depending on the yield of the stocks you pick.

For example, a 3% yielding portfolio needs to be twice the size of one that yields 6% to earn the same passive income.

Which also means that as your dividend yield increases, the passive income you can earn from your $8000,000 superannuation balance climbs higher. 

Here’s a breakdown by yield. These figures are based on cash dividends before tax or franking credits. 

What can I earn from a 3% to 4% yielding portfolio?

If your superannuation portfolio has a dividend yield of around 3%, your passive income will be around $24,000 per year, because $800,000 x 3% = $24,000.

If your portfolio yields closer to 4%, your passive income could be closer to $32,000 every year ($800,000 x 4% = $32,000).

Major miners like BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) yield around this level. As do banking giant Commonwealth Bank of Australia (ASX: CBA) and conglomerate Wesfarmers Ltd (ASX: WES).

What passive income can I earn if my superannuation portfolio yields 5% or 6%?

If your superannuation portfolio yields closer to 5%, you could earn $40,000 every year in dividend payments off the same superannuation balance ($800,000 x 5% = $40,000).

At a 6% yield, you could earn an annual passive income closer to $48,000.

Classic dividend stocks like APA Group (ASX: APA), Transurban Group (ASX: TCL), and JB Hi-Fi Ltd (ASX: JBH) all pay around this level.

What about a portfolio yielding much higher, around 7% or 8%?

But if your portfolio has a slightly higher dividend yield of around 7% or 8%, your passive income will go up again to around $56,000 or $64,000, respectively.

Again, it’s possible to buy shares around this level, but there are fewer options.

Solvar Ltd (ASX: SVR), Waypoint REIT Ltd (ASX: WPR), and HomeCo Daily Needs REIT (ASX: HDN) all pay around this yield at the time of writing.

Is it possible to invest in ASX shares yielding 10% or higher?

It’s possible, but generally, the higher the yield, the higher the volatility and risk associated with the stock. 

If high yield and high risk are what you’re after, at a 10% yield, a $800,000 balance could earn around $80,000.

You could invest in ASX-listed stocks such as Tower Ltd (ASX: TWR) or Kina Securities Ltd (ASX: KSL). Another option is to invest your superannuation in a high-yielding exchange-traded fund (ETF), such as the VanEck MSCI International Value ETF (ASX: VLUE) or the VanEck Gold Miners ETF (ASX: GDX). These all yield 10% or more at the time of writing.

The post How much passive income can I earn off an $800,000 superannuation balance? 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 Transurban Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group and Transurban Group. The Motley Fool Australia has recommended BHP Group, HomeCo Daily Needs REIT, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Passive income is one of the reasons many investors turn to the ASX.

But rather than simply chasing the highest dividend yields available today, I would recommend investors own businesses that can grow over time.

With that in mind, these four ASX passive income shares would be on my long-term shortlist.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre may not be the first company that comes to mind for passive income, but I think it has an interesting long-term case.

The travel company has rebuilt strongly since the pandemic and once again has the capacity to return cash to shareholders.

I especially like its exposure to both leisure and corporate travel. Those businesses give Flight Centre several ways to benefit as travel spending grows over time.

The dividend will probably be more cyclical than those of some defensive companies, particularly if economic conditions weaken.

But I think there is room for earnings and dividends to grow as the business becomes larger and more profitable. For investors willing to accept some volatility, I would be happy to own Flight Centre for income and growth.

Coles Group Ltd (ASX: COL)

Coles is a much more defensive option. Australians need groceries regardless of what is happening in the economy, giving the supermarket giant a relatively dependable source of sales.

That stability is one reason I think Coles can work well in an income portfolio.

The company also has opportunities to grow through population increases, online shopping, and continued investment in its supply chain and automated distribution network.

I am not expecting spectacular growth from Coles. But a business capable of steadily increasing earnings and returning part of those profits to shareholders can be a valuable long-term holding, particularly when passive income is the priority.

Lottery Corporation Ltd (ASX: TLC)

Lottery Corporation is another business I think suits an ASX buy-and-hold passive income strategy.

It operates many of Australia’s major lottery brands, giving it a strong position in a market with high barriers to entry.

I like the relatively simple nature of the business. Lottery tickets require little physical infrastructure compared with many other consumer businesses, and the company can generate substantial cash from its established brands.

There is still some variability depending on jackpot activity, but I think the underlying business is well-placed to keep generating cash over the long term.

That should give management the capacity to continue paying dividends while investing enough to maintain the strength of its brands and digital offering.

Amcor plc (ASX: AMC)

Amcor provides a different source of passive income.

The packaging company supplies products used across food, beverages, healthcare, personal care, and many other everyday categories.

That gives the business exposure to demand that can remain relatively resilient through different economic environments.

I also like Amcor’s global scale. Packaging is not a particularly exciting industry, but that is not necessarily a problem for an income investment.

What I want is a business capable of generating cash consistently and returning some of it to shareholders.

Amcor’s large international operations and exposure to everyday consumer products make it the type of company I would be comfortable holding through a range of market conditions.

Foolish takeaway

I would happily own these four ASX passive income shares for the long term rather than focusing only on the ASX stocks offering the highest yields today.

They give investors exposure to travel, supermarkets, lotteries, and packaging, with each business generating cash in a different way.

For me, that mix of income and the potential for earnings to grow over time is much more interesting than simply chasing yield.

The post Why I’d buy and hold these ASX passive income shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Should I buy Coles shares for passive income?
• Buy, hold, sell: Coles, NAB, CSL shares
• 2 ASX 200 shares to buy and 1 to sell now
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Motley Fool contributor Grace Alvino 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 The Lottery Corporation. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended Flight Centre Travel Group and The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.