For retirees living off superannuation, dividend investing can be a great strategy to generate a steady stream of income without having to regularly sell shares. 

By investing in quality companies that pay consistent dividends, retirees can help support their living expenses. Dividend shares allow this while still giving their portfolio the opportunity to grow over the long term.

The balancing act 

When choosing dividend shares, it’s important to look for a balanced dividend yield rather than one that is extremely high.

A high dividend yield can sometimes be a warning sign that the company’s share price has fallen due to financial problems. This can make the dividend harder to sustain. 

On the other hand, a very low dividend yield may provide little income and could indicate that the company prioritises growth over returning profits to shareholders. 

A balanced dividend yield often suggests that the company is financially stable, generates consistent earnings, and is able to reward shareholders while still investing in its future.

What is considered a good yield in Australia?

For years, the ASX has been one of the best places in the world for dividend investors.

Australian companies have a long history of paying generous dividends. This has made the local share market a favourite among investors looking to build a reliable stream of passive income.

The numbers back it up. According to S&P Global, the S&P/ASX 300 Index (ASX: XKO) had a trailing 12-month dividend yield of 3.5% as of 31 December 2024. 

That’s comfortably ahead of Europe (3.2%), Canada (2.8%), and the United States (1.8%).

For retirees looking to better this number, here are three ASX dividend shares that could supplement your superannuation that beat this 3.5% benchmark. 

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman is a popular dividend stock because of its strong cash generation, fully franked dividends, and history of returning excess capital to shareholders. 

Bell Potter is forecasting fully franked dividends of 31.1 cents per share in FY 2027. This is followed by 33.3 cents per share in FY 2028. 

This results in a dividend yield of over 6% over the next two years. 

Propel Funeral Partners Ltd (ASX: PFP)

Another option to generate passive income alongside your superannuation is Properl Funeral Partners. 

It is an attractive dividend stock because of its defensive business model, recurring demand, and consistent earnings growth.

Based on the forecast on CMC Invest, the potential grossed-up dividend yield for FY26 is 5.5%, which could rise to over 6% by FY28. 

Collins Foods Ltd (ASX: CKF)

Collins Foods Ltd is another stock offering above average yields. 

It is a solid dividend stock because its ownership of established quick-service restaurant brands, including KFC operations in Australia and overseas, provides resilient cash flows that support reliable dividend payments over time.

Morgans is forecasting fully franked dividends per share of 31 cents in FY 2027 and 35 cents in FY 2028. 

This equates to a yield of around 4%. 

The post 3 shares with above average dividend yields to supplement your superannuation appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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 Harvey Norman. The Motley Fool Australia has recommended Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX defence stocks enjoyed a surge in 2025 and 2026. 

This surge was driven by a combination of rising global geopolitical tensions, increased defence spending by Australia and its allies, and strong investor demand for companies exposed to military technology, drones, cybersecurity, and advanced manufacturing. 

One ASX defence stock that rode these tailwinds to significant gains was Elsight Ltd (ASX: ELS). 

Riding tailwinds

Elsight  is a supplier of communication modules to drone OEMs and the company offers advanced communication components for unmanned systems (aerial, ground and sea) systems through its flagship product, the Halo platform.

The platform aggregates all available communication paths into one resilient, encrypted pipe for beyond visual line of sight (BVLOS) control, video and telemetry.

Increased defence spending and a series of big contract wins saw this ASX defence stock rise over 800% in 2025. 

However, in 2026, it has experienced some volatility, and it remains up over 80% year to date. 

Yesterday, the company released quarterly results and this subsequently sent the stock price down 10%. 

What did the company report?

As reported by The Motley Fool yesterday, Elsight reported: 

• Customer receipts of US$5.4 million for the June quarter (US$13.6 million year to date)
• Net operating cash outflow of US$175,000 for the quarter, with a 6-month net inflow of US$3.8 million
• Net cash used in investing activities totalled US$619,000 for the quarter
• Net cash from financing activities of US$296,000 in the quarter, mainly from option exercises
• Cash and cash equivalents at quarter end of US$63.3 million
• 361 estimated quarters of funding available at current cash burn rates. 

However, it seems investors were left wanting more as they largely exited their positions in this ASX defence stock. 

What is Bell Potter’s updated view?

Following the results, Bell Potter released updated guidance on this ASX defence stock. 

The broker said the company delivered a stronger-than-expected 2Q26 result, with revenue and first-half earnings ahead of forecasts. 

This was supported by strong operating leverage, slower cost growth and healthy profitability, while cash generation and the balance sheet remained solid. 

Additionally, the company continued to diversify beyond OEM customers, secured its first paying government customer for its Stealth Initiative business, and remains on track to launch its non-GNSS positioning capability in late CY26.

As a result, the broker retained its buy recommendation and increased its price target to $8.20. 

From yesterday’s closing price, this indicates an upside potential of 27%. 

ELS continues to observe strong order flow across defence and commercial customers across the US, Europe and the Middle East driven by sector tailwinds and the impact of ELS direct sales team, which was established in the prior year and is now contributing to both pipeline growth and order conversion.

The post After crashing 10% on results, is this ASX defence stock a buy, hold or sell? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.

The James Hardie Industries PLC (ASX: JHX) share price is in focus after the company’s preliminary first quarter FY27 results showed net sales and adjusted EBITDA surpassing previous company guidance, thanks to robust demand in Siding & Trim.

What did James Hardie report?

• Preliminary consolidated net sales: US$1.449 to $1.475 billion (above prior guidance of $1.315 to $1.354 billion)
• Preliminary consolidated adjusted EBITDA: US$399 to $407 million (up from guidance of $354 to $375 million)
• Preliminary consolidated GAAP net income: US$102 to $104 million
• Siding & Trim net sales: US$846 to $860 million (guidance was $758 to $781 million)
• Deck, Rail & Accessories (DR&A) net sales: US$296 to $305 million

What else do investors need to know?

This update is preliminary, with final results due after the market close on 6 August 2026 (US time). James Hardie credits strong sell-through and demand for Siding & Trim for the result, while Deck, Rail & Accessories performance improved due to channel inventory normalisation.

The company highlighted that its above-guidance performance was driven by execution and market share gains, rather than any marked improvement in the broader US housing market. Details including full-year guidance and further financial information will be provided at the upcoming earnings call.

What did James Hardie management say?

CEO Aaron Erter said:

Our first quarter results are expected to exceed our prior guidance, primarily as a result of better-than-expected sales in Siding & Trim. Siding & Trim net sales reflected strong sell-through and underlying demand for our products. Our performance in Deck, Rail & Accessories was driven by channel inventory normalization and sell-through that improved throughout the quarter.

What’s next for James Hardie?

Management will release the finalised first quarter results and an updated FY27 outlook in early August. Investors will be watching for further market insights and any updates to strategy or guidance at the earnings call.

James Hardie continues to focus on growing its fibre cement and decking businesses, as well as leveraging cost and sales synergies from the recent AZEK acquisition.

James Hardie share price snapshot

The James Hardie share price has struggled over the last 12 months. It is down around 17% over the period, compared to a modest 1% gain by the S&P/ASX 200 Index (ASX: XJO).

View Original Announcement

The post James Hardie posts strong Q1 FY27 earnings above guidance appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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.