Wesfarmers Ltd (ASX: WES) shares could be among the best options for dividends from an ASX blue-chip share.

One of the main reasons to like the company is its high-quality businesses, such as Bunnings, Kmart, Officeworks, WesCEF (chemicals, energy and fertilisers), and Priceline.

The company’s profitability metrics really show how effective it is at making money.

In FY26, Wesfarmers reported a return on equity (ROE) of 35.5%, representing a 1.2 percentage point increase compared to FY25. Excluding significant items, it was a 4.3 percentage point rise for the ROE.

The return on capital (ROC) for its two key businesses is truly impressive. In FY26, Bunnings Group delivered a ROC of 69.2%, while Kmart Group’s ROC was 68.3%.

Most businesses would love to achieve an ROC close to 70%, and that’s exactly what the company delivers.

FY26 was a solid year for the company, with underlying earnings per share (EPS) climbing 8.3% and the dividend per Wesfarmers share being hiked by 7.8% to $2.22.

Let’s take a look at what analysts think could happen with the company’s dividend.

FY27 dividend projection

Wesfarmers is forecast to deliver a higher dividend for investors, partly based on the view that earnings could climb in FY27.

According to the projection on CMC Invest, the company is estimated to grow its annual dividend per share by 7.9% to $2.395. I don’t think many ASX blue-chip shares will increase their payout by 8% or more in the 2027 financial year.

If Wesfarmers does pay a dividend of that level in FY27, it would mean a grossed-up dividend yield of 4.6%, including franking credits, at the time of writing. That’s not the biggest dividend yield in the world, but the company could continue to deliver impressive dividend growth in the years ahead.

The estimate on CMC Invest suggests the business could then hike its annual dividend per share by another 6.7% in FY28.

How many Wesfarmers shares would it take to generate $8,000 of passive income?

If the business does pay $2.395 of dividend cash per Wesfarmers share in FY27, an investor would require 3,341 Wesfarmers shares to make $8,000 of passive income in FY27.

However, the above figure doesn’t include franking credits. If we include franking credits, it would take only 2,339 Wesfarmers shares to generate that much passive income in the 2027 financial year.

The post How many Wesfarmers shares do I need to buy for $8,000 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 positions in and has recommended Wesfarmers. 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.

The Atlas Arteria Group (ASX: ALX) share price is in focus after the company flagged potential French tax increases impacting its APRR toll road interests, with TEILD rates possibly rising from 4.6% to as high as 12.2% and the TST extended but reduced.

What did Atlas Arteria report?

• The French government’s draft 2027 Budget Bill seeks to increase the Long-distance Transport Infrastructure Tax (TEILD), potentially up to 12.2%.
• The TEILD cost Atlas Arteria €126.7 million in FY25, with proceeds expected to more than double sector-wide.
• The Temporary Supplemental Tax (TST), previously expected to end in 2026, is now earmarked for extension but at a reduced take.
• Atlas Arteria’s APRR and AREA entities are subject to the TEILD, while ADELAC and A79 are not currently affected.
• Legal recourse avenues are being pursued by APRR regarding the TEILD changes.

What else do investors need to know?

The draft French Budget Bill will be debated over coming months, with the final tax rates or rules subject to change before passing into law. Investors should note that the higher TEILD could more than double the sector’s collective tax outlay from €600 million to €1.4 billion, directly affecting Atlas Arteria’s French assets.

Meanwhile, the Temporary Supplemental Tax (TST) – initially planned as a short-lived measure – will likely remain, but with a smaller government target, dropping total proceeds from €7.3 billion to €5 billion. Atlas Arteria will keep investors posted as legislation progresses.

What’s next for Atlas Arteria?

Atlas Arteria will closely monitor the French parliamentary debate and update the market when final legislation emerges. The company’s legal initiatives regarding the TEILD signal an intent to actively manage and defend its French revenue streams.

On a broader note, Atlas Arteria continues focusing on delivering value through sustainable road operations across its French, US, and German assets, aiming to balance regulatory changes with disciplined management.

Atlas Arteria share price snapshot

Over the past 12 months, Atlas Arteria shares have declined 24%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

View Original Announcement

The post Atlas Arteria flags French tax hikes may impact toll road revenues 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 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.

By leveraging the ASX share market and compounding, Aussie retirees can build significant cash flow in retirement.

Whether it’s $10,000 or $110,000, stocks can generate dividends to help cover certain expenses.

That cash flow doesn’t just appear out of nowhere, of course. Aussies need to invest money in assets that pay dividends.

By investing regularly, investors can build a strong portfolio.

I’m going to run through some examples of what happens when you regularly invest. For plenty of people, just the regular superannuation contributions could help reach particular portfolio value goals.

How to create $110,000 of passive income at 65 and retire

I think it’s essential for investors to think long-term. By investing regularly over many years, investors can build substantial wealth.

In retirement circles, many assume 4% is a sufficient withdrawal rate. Let’s assume someone is targeting $110,000 per year at a 4% yield, which means targeting a portfolio of $2.75 million.

That’s a big target, but I’ll show you how many Aussies can reach that goal if given long enough. In all of the below examples, I’m going to assume that the share market returns an average of 10% per year.

Imagine someone is 25, starting with $0. If they invest just $450 per month over 40 years, they would reach $2.85 million.

If someone is starting at 35 with $0, and they invest $1,250 per month over 30 years, it would become worth $2.825 million.

Starting at 45 with $0, someone could invest $3,700 per month over 20 years, it would be worth $2.81 million.

Of course, there’s a million different scenarios we could play out, but those three above situations show how investors can build towards approximately $2.75 million.

Numerous investment opportunities for dividends

There are a number of ways investors can get to $2.75 million and retire.

We could invest in the best options for long-term growth, then switch to passive income ideas. Quality ASX growth shares and exchange-traded funds (ETFs) could be strong options for wealth creation.

I think investment ideas like Vanguard MSCI Index International Shares ETF (ASX: VGS) and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) are excellent long-term compounders.

After that I’d look at compelling ASX dividend share options.

Diversified listed investment companies (LICs) are compelling ideas such as Argo Investments Ltd (ASX: ARG), Australian United Investment Company Ltd (ASX: AUI), L1 Long Short Fund Ltd (ASX: LSF) and WCM Global Growth Ltd (ASX: WQG) are all compelling options for passive income.

I’d also be very willing to invest in cheap real estate investment trusts (REITs) offering large distribution yields, such as Centuria Industrial REIT (ASX: CIP), Dexus Industria REIT (ASX: DXI), Charter Hall Long WALE REIT (ASX: CLW) and Rural Funds Group (ASX: RFF).

I think diversification during retirement is an important factor to protect capital over the long-term.

The post How much do I need to retire on $110,000 a year at 65? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund, Rural Funds Group, Washington H. Soul Pattinson and Company Limited, and Wcm Global Growth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Rural Funds Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.