The high-yield ASX dividend stock APA Group (ASX: APA) is one of the top picks out there for passive income, in my opinion. I’d rather own shares of it than receive the Age Pension.

Australia’s Age Pension is one of the most generous in the world. It’s great that retirees have that safety net, but I like the idea of income coming into my bank account from assets I own myself.

APA is one of the biggest energy businesses on the ASX. Its main asset is a network of gas pipelines that spans the country. It also owns gas power stations, gas storage, gas processing, solar farms, wind farms, and electricity transmission.

Australia needs energy for residential and business usage, so APA plays an important role in Australian society. It actually transports half of the nation’s gas usage, so it’s an essential part of the national energy picture.

Let’s take a look at how an investor could use the high-yield ASX dividend stock to match the Age Pension.

Passive income guidance

I view APA as one of the most impressive passive income businesses on the ASX because of how consistently it has increased its payout. Of course, past dividend growth is not a guarantee of future dividend growth.

APA has increased its annual distribution for 22 years in a row. That’s the second-longest payout growth streak for a business on the ASX.

The business has provided distribution guidance that will take it to 23 years of consecutive growth.

APA management expects the business to hike its payout to 59 cents per security. At the time of writing, that represents a forward distribution yield of 5.6%, which I think is an excellent starting point and extremely competitive against the best term deposit rates right now.

Its earnings and cash flow are growing thanks to inflation-linked revenue, new energy projects being built and completed, and acquisitions.

Equal the Age Pension

Australian retirees recently received a payment increase, which is great news during this period of higher inflation and cost of living.

The maximum Age Pension that a single Australian can receive is $1,237.70 per fortnight. That translates into an approximate annualised figure of $32,180.

If an investor wanted to receive $32,180 of annual income from the high-yield ASX dividend stock from its projected FY27 payout of 59 cents per security, that investor would need to own 54,543 APA Group shares.

Of course, diversification is an important element of investing for passive income. I wouldn’t have 100% of my portfolio invested in APA shares; I’d spread it across a number of ASX shares that can generate returns.

The post 54,543 shares of this high-yield ASX dividend stock pay an income equal to the Age Pension appeared first on The Motley Fool Australia.

More reading

• APA Group unveils $1.3bn Brigalow Power Plant deal to underpin growth
• Where to invest $20,000 in ASX dividend shares for passive income
• How much is needed in superannuation to target a $10,000 monthly passive income?
• Where to invest as interest rates charge higher
• How to build a $50,000 passive income from ASX shares

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 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.

S&P/ASX 300 Metal & Mining Index (ASX: XMM) shares are up 1.1% to 8,346.6 points on Wednesday.

Over 12 months, ASX mining shares have soared 29% while the S&P/ASX 300 Index (ASX: XKO) has fallen 1%.

The mining index reached a record high of 9,326.9 points on 26 August. 

Higher demand for metals and minerals due to the green energy transition and strong commodity prices has contributed to the 29% rise.

This week, brokers have indicated continued confidence in several ASX mining shares by renewing their buy recommendations.

The brokers have also given each stock a 12-month price target, indicating where they think the valuation will go.

Let’s take a look.

BHP Group Ltd (ASX: BHP)

The BHP share price is $61.21, up 1% today.

Over the past month, this ASX 200 iron ore share has fallen 8%.

Morgan Stanley renewed its buy rating on BHP shares on Monday.

The broker has a 12-month price target of $68.

This suggests a potential 11% upside ahead.

Galan Lithium Ltd (ASX: GLN)

The Galan Lithium share price is 31 cents, up 3.3% today.

This ASX lithium share has fallen 23% over the past month.

Canaccord Genuity reiterated its buy rating on Galan Lithium shares on Monday.

The broker has a 12-month price target of 80 cents.

This implies potential capital gains of 158% ahead.

Minerals 260 Ltd (ASX: MI6)

The Minerals 260 share price is 88 cents, down 2% today.

Over the past month, this ASX 200 gold share has risen 1%.

Bell Potter reaffirmed its buy rating on Minerals 260 shares with a 12-month target of $1.45.

This suggests a potential 64% upside ahead.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is $52.63, up 0.5% today.

This ASX 200 mining share has fallen 19% over the past month.

UBS renewed its buy rating on the stock with a $74 target.

This implies potential capital growth of 40% over the next year.

South32 Ltd (ASX: S32)

The South32 share price is $5.04, up 0.3% today.

Over the past month, this ASX 200 mining share has fallen 2%.

Citi renewed its buy rating on South32 shares yesterday.

The broker has a $6 target, implying a potential 19% upside ahead.

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price is $3.11, up 1.1% today.

This ASX iron ore share has fallen 12% over the past month.

UBS reiterated its buy rating on Champion Iron shares with a price target of $4.15.

This implies a potential 34% upside ahead.

AIC Mines Ltd (ASX: A1M)

The AIC Mines share price is 88 cents, down 2.8% today.

This ASX copper share has risen 9% over the past month.

Morgans reiterated its buy rating on AIC Mines shares with a price target of $1.20.

This implies potential capital gains of 36% ahead.

The post 7 ASX mining shares with 11% to 158% upside ahead: experts appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Corporate Travel Management, JB Hi-Fi, BHP shares
• ASX 200 holds steady as investors brace for a big afternoon
• This ASX iron ore junior could rise more than 33% UBS says
• BHP vs Coles: Which ASX share is better for passive income?

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen 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.

S&P/ASX 200 Index (ASX: XJO) shares are 1% higher at 8,797 points on Wednesday. 

However, the market has fallen into the red over 12 months, down 0.6%, amid rising oil prices and interest rates.

The Reserve Bank of Australia (RBA) lifted the official cash rate from 4.35% to 4.6% yesterday.

Experts say another rate rise may be required in November to combat persistently high inflation.

Inflation rose from 3.5% over the 12 months to July to 4% last month, according to data released today.

Amid the market weakness, brokers have raised their ratings on several ASX shares this week.

Let’s see a sample. 

Capricorn Metals Ltd (ASX: CMM)

The Capricorn Metals share price is $15.22, up 1.9% today.

Over the past month, this ASX 200 gold share has fallen 8%.

Bell Potter upgraded Capricorn Metals shares to a buy rating this week.

The broker raised its 12-month price target from $18.05 to $18.10.

This implies a potential 19% upside ahead.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is $13.40, up 1% today.

Over the past month, this ASX 200 mining share has fallen 10%.

UBS upgraded Evolution shares to a buy call this week.

The broker increased its 12-month price target from $15.20 to $16.

This suggests a potential 19% gain ahead.

REA Group Ltd (ASX: REA)

The REA share price is $156.16, up 4.9% today.

Over the past month, this ASX 200 communications share has dropped 12%.

Bell Potter upgraded REA to a hold recommendation with a price target of $148.

This suggests a potential 5% downside ahead.

Healius Ltd (ASX: HLS)

The Healius share price is 42 cents, up 1.7% today.

Over the past month, this ASX 200 healthcare share has fallen 2%.

RBC Capital upgraded Healius shares to a hold rating with a 12-month price target of 42 cents.

This implies the stock is fully valued.

Alliance Aviation Services Ltd (ASX: AQZ)

The Alliance Aviation Services share price is 54 cents, up 6.9% today.

Over the past month, this ASX industrials share has fallen 18%.

Morgans upgraded Alliance Aviation Services shares to a buy rating on Monday.

The broker has a 12-month price target of 85 cents.

This indicates potential capital gains of 57% over the next year. 

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle Investment Management shares are $13.30 apiece, down 4.7% today.

Over the past month, this ASX 200 financial share has declined 21%.

UBS upgraded the stock to a buy rating but reduced its price target from $18 to $17.

This suggest a potential 28% upside ahead.

The post 6 ASX shares upgraded by experts amid a weak market  appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Tuesday
• 3 ASX shares tipped to return 38% to 60%
• PEXA vs REA shares: Which property tech company is the better buy?

Motley Fool contributor Bronwyn Allen 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 Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.