Replacing a salary with ASX dividend shares is the goal that drives most income investing.

A $90,000 income is a realistic target for many Australians.

That level sits just below average full-time earnings, which reached $2,083.70 a week in May 2026, or roughly $108,000 a year before tax.

So what would it actually take to generate $90,000 without working for it?

Why ASX dividend shares can do the job

Australian companies pay out more of their earnings than almost anywhere else in the world.

Franking credits are the reason.

Our system refunds the company tax already paid on dividends, which encourages generous payout ratios and makes ASX dividend shares unusually effective for generating income.

The maths on a $90,000 income

Let us use a real fund rather than a hypothetical portfolio.

Vanguard Australian Shares High Yield ETF (ASX: VHY) tracks the FTSE Australia High Dividend Yield Index.

The ETF holds 92 companies, charges 0.25% a year and manages a little over $8 billion.

The fund carries a forecast yield of 4.2%, or 5.5% once franking credits are included.

At 4.2%, generating $90,000 in cash distributions requires about $2.14 million. On the grossed-up figure of 5.5%, the number falls to roughly $1.64 million.

That difference is entirely franking credits.

These credits arrive as a tax offset rather than as cash in your account, so the answer lies somewhere between those two numbers depending on your marginal rate.

What you would actually own

VHY ETF is concentrated by design.

Its largest holdings are Commonwealth Bank (ASX: CBA), BHP Group (ASX: BHP), Westpac (ASX: WBC), National Australia Bank (ASX: NAB) and ANZ Group Holdings Ltd (ASX: ANZ).

That is a portfolio dominated by the major banks and one very large miner.

Performance has been strong recently, returning 17.87% over the year to 31 July 2026, and 10.22% annually over the past decade.

Distributions are paid quarterly, which suits anyone trying to replace a fortnightly or monthly pay packet.

How long it would take to get there

Someone investing $2,000 a month at VHY’s decade-long return of 10.22% would pass $1.6 million in a little over 20 years.

Add a lump sum of $100,000 at the start and that timeline shortens by about three and a half years.

Reinvesting distributions also contributes to the compounding.

Drawing income early slows down your progress because every dollar spent along the way is a dollar that never compounds.

The catch with relying on ASX dividend shares

Dividends are not contractual.

Banks cut them in 2020, and miners cut them whenever commodity prices fall.

A 4.2% yield also assumes you never need to sell units to cover a shortfall.

Inflation is the other problem, and it is the one most income investors underestimate.

With the cash rate held at 4.35% and the Reserve Bank warning that inflation is still too high, a fixed $90,000 buys less every single year.

An income portfolio needs to grow its distributions, not simply pay them.

Foolish takeaway

Somewhere between $1.6 million and $2.1 million is the most representative answer.

That may sound like a large number, and it takes decades of contributions and compounding to reach.

The encouraging part is that you do not need to get there in one leap.

Reinvesting distributions along the way does most of the heavy lifting.

For anyone building toward financial independence, ASX dividend shares remain one of the most practical tools available.

The post How much do you need invested in ASX dividend shares to replace a $90,000 salary? appeared first on The Motley Fool Australia.

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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 recommended BHP Group and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Australian Age Pension is one of the most generous in the world, and that’s very appealing for retirees. However, I think the high-yield ASX dividend stock WCM Global Growth Ltd (ASX: WQG) is even more appealing.

WCM Global Growth is a listed investment company (LIC), though it’s not among the most famous. There are more famous names, such as Australian Foundation Investment Co Ltd (ASX: AFI) and Argo Investments Ltd (ASX: ARG).

The LIC seeks to invest in high-quality global stocks with improving economic moats and positive corporate cultures.

There are several compelling reasons to prefer the LIC to the Age Pension.

Rising dividends

I think one of the best reasons to like this LIC is how the high-yield ASX dividend stock is growing its payout at a significantly faster pace than inflation.

The business has provided guidance that it will keep hiking its quarterly dividend at a good pace over the next year.

It expects its June 2027 payment to be 13% higher than the June 2026 payment. The annual dividend per share has increased every year since 2019. Dividend growth is not guaranteed, but the future looks bright for payouts in the coming years.

Large dividend yield

The next year of dividends looks like it will be very rewarding for shareholders with a good dividend yield.

WCM Global Growth has guided that it will pay 9.59 cents per share over the next year, which translates into a grossed-up dividend yield of 6.5%, including franking credits, at the time of writing.

Plus, that’s just the starting dividend yield. The yield could continue to improve as the business grows.

Capital growth

Another reason to like this high-yield ASX dividend stock is that it’s delivering a rising share price for investors too. Of course, past performance is not a guarantee of future performance.

Not only is the business delivering excellent dividends, but its attractive returns are helping drive the WCM Global Growth share price higher with the retained investment money.

Since inception in June 2017, the LIC’s portfolio has delivered an average return per year of 15.9%. In the past five years, the WCM Global share price has risen by around 30% (and it’s up 70% in the past four years).

How many shares would it take to equal the Age Pension?

Currently, for single Australians, the maximum annualised Age Pension they can receive is approximately $31,200.

To receive that much over the next year would require 325,339 shares, not including the franking credits. If we include the franking credits, it would require 233,577 shares.

While I don’t have anywhere near that much invested in the high-yield ASX dividend stock, I do have a sizeable position because I’m bullish about its future ability to deliver attractive returns and continue growing its dividend.

The post 233,577 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $5,500 monthly passive income?
• WCM Global Growth earnings: Profit lifts dividend and outlook
• How much is needed in superannuation to target a $40,000 annual passive income?
• How much do I need to retire on $100,000 a year at 60?
• How much is needed in superannuation to target a $2,000 monthly passive income?

Motley Fool contributor Tristan Harrison has positions in Wcm Global Growth. 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.

ASX All Ords lithium stock Wildcat Resources Ltd (ASX: WC8) has more than doubled in value over the past 12 months.

Wildcat Resources shares were recently trading for 40 cents apiece, which sees the share price up a whopping 109.0% since this time last year.

For some context, the All Ordinaries Index (ASX: XAO) was recently up a rather meagre 0.8% over this same period.

Investors have been bidding up the ASX All Ords lithium stock as its Western Australian Tabba Tabba lithium project progresses towards production.

Wildcat will also have attracted attention amid the past year’s 79% increase in global spodumene (a lithium bearing ore) prices.

And looking ahead, Dolphin Partners Financial Services’ Arthur Garipoli believes the company is well-placed to deliver more outperformance (courtesy of The Bull).

Should I buy the ASX All Ords lithium stock today?

Citing the first reason he’s bullish on Wildcat Resource shares, Garipoli said:

This Western Australian explorer is advancing the Tabba Tabba Lithium-Tantalum project, which is a large-scale, hard rock development in an established mining jurisdiction with low sovereign risk and close to Port Hedland infrastructure.

The second reason you might want to buy the ASX All Ords lithium stock today is that, while the share price is up 109% since this time last year, the Wildcat share price has fallen more than 36% since closing at 63 cents on 18 June.

“The recent share price fall may represent a good entry opportunity for investors looking for a recovery in lithium markets and in a company with near term catalysts,” Garipoli noted.

There are also a number of upcoming catalysts that could help support further gains in the Wildcat share price.

Garipoli concluded:

WC8 has completed a pre-feasibility study. A large resource base and an upcoming definitive feasibility study de-risks the company. In our view, WC8 represents a compelling risk-reward scenario.

What’s the latest from Wildcat Resources?

Wildcat Resources released its June quarter update on 29 July.

The ASX All Ords lithium stock cited “significant advancement” across its Pilbara lithium portfolio. That included accelerated development activities at Tabba Tabba, with promising exploration results continuing to come in from the miner’s nearby Bolt Cutter lithium discovery.

Commenting on the Tabba Tabba project, Wildcat management noted:

At Tabba Tabba, the Definitive Feasibility Study (DFS) progressed across all major technical disciplines including mine planning, metallurgy, process engineering, infrastructure design, environmental approvals and project financing.

Optimisation work undertaken during the quarter identified opportunities to improve project economics through modifications to the proposed mine schedule, earlier expansion of processing capacity and incorporation of additional mineral resources that were not considered in the Preliminary Feasibility Study.

Metallurgical programs continued to demonstrate robust concentrate quality and recoveries, while engineering design advanced toward completion.

The post Up 109%! 3 reasons this ASX All Ords lithium stock is still a buy today appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Centuria Industrial REIT, Endeavour, Wildcat Resources shares
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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 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.