Do you have room in your portfolio for a new addition? If you do and are interested in ASX 200 tech shares, then it could be worth considering Netwealth Group Ltd (ASX: NWL) shares.

That’s the view of analysts at Bell Potter, which remains bullish on the investment platform provider following its quarterly update.

What is the broker saying?

Bell Potter highlights that Netwealth’s fourth quarter update was slightly ahead of expectations thanks to positive market movements. It said:

Minor beat related to market movements and outlook parameters were reconfirmed. Gross flow momentum and managed account net flows held up despite elevated outflows. Investor caution was slight (middle east conflict and budget), and this was the key takeaway. Institutional accounts were weaker and the cause, while the superannuation segment delivered record net flows. Consensus net flows sit at the lower bound of the guidance range and offer further room for potential withdrawals.

Another positive is that its outlook commentary was unchanged, which it believes points to new run rate momentum. 

Outlook comments are unchanged and indicate new run rate momentum: 1) elevated outflow impacts are expected to be temporary; 2) FY27 net flows of $18-20B, which would imply organic momentum and the partial benefit of new products; 3) EBITDA margins of 47%; and 4) investment in capitalised software of $17M. Net flow guidance wraps well around consensus expectations for $18.2B. Initiatives delivered in the period include an agentive AI agent for real-time support and improved execution.

Should you buy Netwealth shares?

According to the note, Bell Potter has retained its buy rating and $30.00 price target on Netwealth’s shares.

Based on its current share price of $23.50, this implies potential upside of approximately 28% for investors over the next 12 months.

In addition, a dividend yield of 2.2% is expected in FY 2027. This stretches the total potential return over the period to approximately 30%.

If Bell Potter is on the money with its recommendation, this would turn a $10,000 investment into approximately $13,000.

Commenting on its buy recommendation, the broker said:

Our Buy rating and target price are unchanged. NWL remains on track to deliver free cash flow margins in-line with 5Y historical standards, balancing growth investments and profitability. Market share cadence and the current multiple make this attractive.

Overall, this could make the company worth considering if you are looking for exposure to this side of the market.

The post Are Netwealth shares a top buy after its update? appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Netwealth, Silver Mines, and Qantas shares
• 5 things to watch on the ASX 200 on Friday

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

Your superannuation shouldn’t sit quietly in the background.

If you can actively and wisely invest it, it can become an excellent tool to generate an easy passive income for retirement.

As an added bonus, not only can it help you build wealth for later on in life, it also comes with the added benefit of low tax rates and long-term compounding.

But how much do you actually need in your super to be able to earn the passive income you want in retirement?

Let’s break it down, using a $60,000 per year passive income as an example.

How much do I need in my superannuation to earn $60,000 per year in passive income?

To calculate the superannuation you’ll need, simply divide your annual passive income by the dividend yield of your portfolio.

Of course, the tricky part is that the answer varies significantly depending on what dividend yield of your portfolio actually is.

For example, a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of passive income. 

So, if your overall portfolio has a dividend yield of around 3%, you’ll need a balance of around $2 million to earn $60,000 per year in passive income.

Of course, a $2 million superannuation balance isn’t achievable for many Australians. But the good news is that, as your dividend yield increases, the superannuation balance required to earn the same passive income goes down.

That means, if the yield of your portfolio is around 4%, for example, your balance would need to be closer to $1.5 million to earn the same dividend income.

Raise the dividend yield of your portfolio to 5% and you’d be looking at a balance of closer to $1.2 million to earn the same amount.

Increase that to a 6% or even 8% dividend yield, and you’d need around $1 million or $750,000, respectively. You’d still earn $60,000 per year in passive income from these portfolio sizes.

What ASX shares can I buy around these dividend yields?

There are a huge range of ASX dividend shares available for your superannuation investment. Here are some of my favourites.

Lower-yielding ASX dividend-paying shares such as Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), AMP Ltd (ASX: AMP) and Washington H. Soul Pattinson and Co Ltd (ASX: SOL) are solid and reliable stocks that offer a yield of around 2% to 3%.

For a mid-range yielding ASX dividend option, I’d look at defensive assets like Telstra Group Ltd (ASX: TLS). Santos Ltd (ASX: STO) is a good option if you want oil and gas exposure. Meanwhile, Coles Group Ltd (ASX: COL) and blue-chip majors like Rio Tinto Ltd (ASX: RIO), BHP Group Ltd (ASX: BHP) and National Australia Bank Ltd (ASX: NAB) pay a decent dividend of around 3% to 5%.

For a higher 5% to 6% dividend yield, I’d look at reliable payers like APA Group (ASX: APA) or AGL Energy Ltd (ASX: AGL).

Dexus Industria REIT (ASX: DXI) and Charter Hall Long WALE REIT (ASX: CLW) yield around the 7% mark.

If you want to take on more risk and go for a much higher-yielding ASX stock, my picks would be something like IPH Ltd (ASX: IPH), Centuria Office REIT (ASX: COF), or the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX). These typically yield anywhere between 9% and 12%.

The post How much do I need in my superannuation to earn an annual $60,000 passive income? appeared first on The Motley Fool Australia.

More reading

• Should you buy Rio Tinto and these ASX shares?
• Buy, hold, sell: Coles, Woolworths, Wesfarmers shares
• 5 things to watch on the ASX 200 on Friday
• 3 ASX dividend shares I’d buy for passive income right now
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Samantha Menzies 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 Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended BHP Group, IPH Ltd , and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Income investors are spoilt for choice when it comes to ASX dividend shares on the local market.

To narrow things down, let’s take a look at two that have been named as buys by brokers.

Here’s what they are recommending to clients:

Collins Foods Ltd (ASX: CKF)

Morgans is a fan of this quick service restaurant operator and has been pleased with its performance in a tough operating environment.

Commenting on its recent results, the broker said:

In our view, CKF reported a solid result in light of tough conditions. NPAT grew 17.6%, at the mid-point of guidance. COGS are expected to be flat to modest in FY27, which is better than feared. KFC Australia 1H27-to-date SSS of +4.0% is a stronger-than-expected start. Europe disappointed with early 1H27 SSS tracking deeply negative, though attributable to factors outside CKF’s control. Balance sheet remains strong with ND/EBITDA of 0.8x, keeping CKF well placed to fund the German expansion, accelerate Kwench rollout, and pursue further German bolt-on acquisitions. 

While the composition of our forecasts has changed, the net profit impact is minor. We believe CKF remains undervalued for its growth profile. Despite the tough consumer environment, CKF proves resilient regardless of numerous challenges and continues to deliver solid growth. We retain our BUY recommendation and revise our price target to A$10.60 from A$12.50.

Morgans is forecasting fully franked dividends per share of 31 cents in FY 2027 and 35 cents in FY 2028. Based on its current share price of $7.95, this would mean dividend yields of around 4% and 4.4%, respectively. 

The broker has a buy rating and $10.60 price target on the company’s shares.

Harvey Norman Holdings Ltd (ASX: HVN)

Another ASX dividend share that brokers are bullish on is retail giant Harvey Norman.

Bell Potter expects FY 2027 to be a tough year, but believes this is more than priced in. And with generous yields expected, it sees now as a good time to snap up Harvey Norman’s shares. It said:

While our views on FY27e sees challenging conditions for retailers with a recovery weighted to 2H, on our revised estimates HVN continues to trade at a 1-year forward P/E of ~13x (as per BPe) which appears attractive. 

We see mid-longer term growth catalysts related to the new store driven growth in international retailing (UK, Malaysia, Croatia), refit program in Australia, expansion of brand partnerships in the midpremium end of the whitegoods market somewhat offsetting the risk in the mid-market space and opportunities to grow their real estate portfolio as Australia’s single largest owner in large format retail with a global portfolio of ~$4.6b. We maintain BUY.

Bell Potter is forecasting fully franked dividends of 31.1 cents per share in FY 2027 and then 33.3 cents per share in FY 2028. Based on its current share price of $4.75, this equates to dividend yields of 6.6% and 7%, respectively.

The broker currently has a buy rating and $6.00 price target on its shares.

The post Brokers name 2 ASX dividend shares to buy with 4% to 7% yields appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Harvey Norman and REA Group shares
• 5 things to watch on the ASX 200 on Friday
• 2 ASX shares near 52-week lows I’d buy today
• These ASX shares could generate $10,000 per year in passive income
• 5 top ASX dividend shares to buy in July

Motley Fool contributor James Mickleboro has positions in Collins Foods. 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.