Although the S&P/ASX 200 Index (ASX: XJO) is still pretty close to its August all-time highs, there are still a few well-known blue-chip shares that are offering dividend yields above 4% today. But despite popular dividend shares like Telstra Group Ltd (ASX: TLS), Westpac Banking Corp (ASX: WBC), and Fortescue Ltd (ASX: FMG) offering yields over 4%, they still only pay out two dividends a year.

That might be fine for some investors. But others would very much prefer a more regular payment schedule. After all, our bills and living expenses don’t get invoiced to us every six months. So why not invest in a dividend-paying stock that accommodates more frequent paycheques?

Investors who agree with that sentiment might wish to check out a certain income-focused exchange-traded fund (ETF).

That ETF is none other than the BetaShares S&P Australian Shares High Yield ETF (ASX: HYLD).

How does this ASX income ETF work?

Like most ASX ETFs, HYLD holds a portfolio of underlying investments, which it manages on behalf of its investors. In this case, that portfolio consists of dozens of proven dividend stocks from the ASX. These range from the usual suspects like BHP Group Ltd (ASX: BHP), National Australia Bank Ltd (ASX: NAB), and Telstra, to others like Coles Group Ltd (ASX: COL), Suncorp Group Ltd (ASX: SUN), and Ampol Ltd (ASX: ALD).

You might also recognise Medibank Private Ltd (ASX: MPL), Metcash Ltd (ASX: MTS), and APA Group (ASX: APA).

This income ETF is able to extract and pass on the dividends it receives from these holdings, alongside profits from rebalancing its portfolio, to its own investors as dividend distributions. This it does 12 times a year.

Yes, HYLD is a monthly dividend payer. Additionally, its dividends tend to come not fully franked, but partially franked to a high level. To illustrate, this ETF’s most recent payout, which arrived on 18 August, was franked at 77.84%.

But let’s get to some numbers. HYLD has just passed its twelfth dividend payment (the one we just discussed). That means we can give it a proper trailing yield for the first time. So over the past 12 months, this ASX income ETF has doled out a total of $1.4275 in dividends per unit. At the current (at the time of writing) unit price of $33.50, that 12-month dividend total gives this ASX income ETF a trailing yield of 4.26%.

Given that yield, as well as this ASX income ETF’s monthly payout schedule, this investment might well be worth a look today if dividends are a priority of your ASX investing portfolio.

The post This ASX income ETF yields 4.3% and pays monthly dividends appeared first on The Motley Fool Australia.

More reading

• 3 of the best dividend ASX ETFs right now for passive income
• Why these 2 ASX ETFs could be the best dividend funds for retirees
• How much passive income could I earn from a $600,000 superannuation balance?

Motley Fool contributor Sebastian Bowen 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 and Telstra Group. 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.

If you’re ready to retire, or perhaps already have, you may be looking to invest some of your hard-earned superannuation savings to provide an annual passive income stream.

While there are a few ways you could go about this, I believe the best means to achieving an extra $20,000 of passive income a year from superannuation is by investing in quality ASX dividend shares.

We’ll look at two ASX dividend gems below you may wish to buy today.

They both currently pay market beating yields.

And while one has seen a modest share-price retracement over the past year, the other has gained. (Share prices as of 19 August.)

That’s important, because when you’re looking for ASX shares offering higher dividend yields, you’ll often find this is because their share prices have cratered in recent months. Which in turn often means that their future dividend payouts will be coming down as well.

Now before we dive in, do be aware that the yields you generally see quoted are trailing yields. Future passive income payouts may be higher or lower depending on a range of company specific and macroeconomic factors.

With that said…

Two ASX dividend shares for a $20,000 superannuation income stream

Our first ASX dividend gem is Helia Group Ltd (ASX: HLI).

Shares in the S&P/ASX 200 Index (ASX: XJO) lenders mortgage insurance (LMI) provider were recently trading for $5.72. That sees the Helia share price up around 1% over the past year.

As for the passive income on offer from your superannuation investment, Helia paid (or shortly will) two partly franked dividends and a special dividend over the past year, totalling $1.26 per share.

At the recent share price, that sees this ASX 200 dividend stock trading at a partly franked trailing yield (including that special dividend) of 22%.

The second ASX dividend gem I’d invest my superannuation savings in for passive income is Fortescue Ltd (ASX: FMG).

At the recent share price of $18.12, Fortescue shares are down 7.8% in 12 months. But I believe the ASX 200 mining giant can return to capital growth along with paying regular dividends.

Over the last 12 months, Fortescue paid two fully franked dividends totalling $1.22 per share.

At the recent Fortescue share price, that ASX 200 mining stock trades on a fully franked trailing dividend yield of 6.7%.

How much to invest for $20,000 of passive income?

Based on the trailing yields, and assuming you invest an equal amount in both ASX dividend gems, you could expect to see a yield of 14.3%.

To secure a $20,000 annual passive income stream, you’d then need to invest $139,860 of your superannuation savings today.

The post 2 ASX dividend gems I’d buy for a $20,000 superannuation income boost appeared first on The Motley Fool Australia.

More reading

• 8 ASX shares just upgraded by the experts
• Buy, hold, sell: Fortescue, Northern Star, and Megaport shares
• Are Fortescue shares in the buy zone after its results?
• Everything you need to know about the new Fortescue dividend
• Why is the Fortescue share price on a rollercoaster today?

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 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.

A $100,000 retirement income is well above what most superannuation benchmarks assume you will actually need.

But it is also the number a lot of Australians aim towards.

So what balance gets you there?

The answer is more encouraging than you might expect, though it does demand some planning.

What the superannuation benchmarks actually say

The Association of Superannuation Funds of Australia publishes the country’s most widely used retirement budgets.

For the March quarter of 2026, its comfortable standard sits at $55,923 a year for a single person and $78,566 for a couple.

The modest standard is much lower, at $36,434 and $52,473 respectively.

ASFA estimates a single homeowner needs a lump sum of $630,000 to fund a comfortable retirement, while a couple needs $730,000.

Those figures assume a 6% investment return alongside some Age Pension support.

A $100,000 income is therefore roughly 80% above the comfortable benchmark for a single retiree.

It also sits well beyond the point where the Age Pension assets test offers any assistance at all.

The maths behind $100,000 a year

Once you retire and convert your balance into an account-based pension, the government sets minimum withdrawal rates.

For anyone aged between 65 and 74, that minimum is 5% of the balance each year.

Running that calculation in reverse gives you the following figures.

A balance of $2 million drawn at 5% produces exactly $100,000 a year.

That is the headline answer.

For a couple the burden is shared, so around $1 million each achieves the same household income.

It is worth remembering that earnings inside a retirement phase pension are generally tax free, and so are the withdrawals for anyone over 60.

A $100,000 pension income is consequently worth a great deal more than a $100,000 salary.

Where the transfer balance cap fits in

There is a ceiling on how much you can move into that tax-free environment.

From 1 July 2026, the general transfer balance cap rose to $2.1 million per person.

This means that at the 5% minimum drawdown rate, a fully used $2.1 million cap generates $105,000 a year.

The system is effectively designed to support roughly this level of income for one retiree.

How much superannuation you would realistically need

The honest answer is around $2 million in superannuation for a single retiree.

A couple targeting the same household income needs a similar amount between them.

That may seem like a daunting figure against the average balance, which sits closer to $308,600 for Australians aged 70 to 74.

Getting there with ASX shares

This is where growth assets do the heavy lifting.

The Vanguard Australian Shares Index ETF (ASX: VAS) is the most popular way Australians own the local market.

It tracks the S&P/ASX 300 Index (ASX: XKO) across more than 300 holdings and charges just 0.07% a year.

Since inception the fund has returned an average of roughly 9.22% annually.

At that rate, $500,000 invested at age 45 would grow to about $2 million by age 61 without a single extra contribution.

Compounding, rather than the size of your contributions, does most of the work.

Foolish takeaway

Retiring on $100,000 a year is achievable, but it takes roughly $2 million and a long runway.

The good news is that superannuation remains one of the most tax-effective structures available to Australian investors.

Start early, keep your fees low, and let the market do the compounding for you.

The difference between a modest retirement and a comfortable one is usually decided decades before you stop working.

The post How much super do you need to retire on $100,000 a year? appeared first on The Motley Fool Australia.

More reading

• How I’d make investing easy with Vanguard ETFs
• Top 3 ASX ETFs for a first-time investor in 2026
• How to turn $10,000 into $100,000 with ASX shares
• Is $2 million really the new superannuation target?
• How much do I need to retire on $100,000 a year at 60?

Motley Fool contributor Mark Verhoeven 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.