Superannuation is a great way to build long-term wealth in a tax-effective manner.

Figures from industry analyst Chant West show that since the introduction of mandatory superannuation in the early 1990s, the median growth fund has returned 8% per year, well above the inflation rate over that period.

The big question is, how much superannuation do you need?

Of course, that depends on what sort of income stream you’d like in retirement, and whether you can afford to save enough during your working life to set yourself up.

Having a goal in mind is the first step, so let’s see what it would take to generate $80,000 per year in income from your superannuation.

How much in superannuation savings do you need for $80,000 per year in income?

For simplicity’s sake, I will calculate this based on dividends alone. However, once people start to draw down on their superannuation, it is, in practice, usually a combination of dividends and share sales (capital gains) that creates the income stream.

To calculate how much you will need to generate $80,000 per year, you need to make an assumption about how much you can expect to earn from dividends, or the average dividend yield.

I would argue that with the benefit of franking credits a return of about 7.5% is realistic.

Franking credits pay back a shareholder for the company tax already paid, which is 30% for a fully franked dividend.

In practice this means that a 5% fully franked dividend is worth 7.14% once credits are taken into account for retirees who pay a zero per cent tax rate.

Not all shares you own need to pay this rate. Some can be lower-dividend, higher-growth shares, while some can be high-dividend payers.

Which shares could I buy to generate an $80,000 income stream?

An example of the latter is some infrastructure stocks such as Atlas Arteria Ltd (ASX: ALX), which is currently paying a trailing dividend of 7.6%, albeit without franking.

In the financial services sector, Morgan Stanley predicts Bank of Queensland Ltd (ASX: BOQ) will pay at least a 6% dividend in FY28, while Regal Partners Ltd (ASX: RPL) is paying a trailing dividend of almost 13%.

Among the major retailers, the dividend yields are a bit lower, with Woolworths Group Ltd (ASX: WOW) paying 2.35% and Coles Group Ltd (ASX: COL) 3.27%, although they do come with the security of large, stable markets.

Real estate investment trusts can also be good dividend payers, with Arena REIT (ASX: ARF) paying 7.6%, Charter Hall Long Wale REIT (ASX: CLW) paying 7.84%, while Waypoint REIT (ASX: WPR) pays 8.18%.

The post How much is needed in superannuation to target $80,000 a year in passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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 Pro Medicus Ltd (ASX: PME) share price is in focus after the company secured a major 7-year, A$43 million contract with Virtua Health in the United States. This deal will see PME’s cloud-based Visage 7 enterprise imaging platform rolled out across Virtua’s health system.

What did Pro Medicus report?

• Signed a 7-year contract worth A$43 million with Virtua Health, based in New Jersey, USA
• The agreement covers the unified Visage 7 Viewer, Workflow, Open Archive, and Cardiology products
• Contract to be delivered via PME’s cloud-based platform, supporting hospital-wide image access and EHR integration
• Revenue tied to a transaction-based model, allowing for potential upside
• Implementation to begin immediately, with full rollout targeted for late Q2/early Q3 2027

What else do investors need to know?

Virtua Health is a major healthcare provider in South Jersey with five hospitals and 15,000 employees. This win adds to Pro Medicus’ growing footprint among large US health systems choosing fully cloud-based imaging.

The deal further validates PME’s CloudPACS strategy, which aims to set industry standards in North American healthcare IT. The contract includes Visage’s new cardiology offering, indicating rising demand for ‘full stack’ unified imaging solutions in major health networks.

What did Pro Medicus management say?

Pro Medicus CEO Dr Sam Hupert said:

Virtua provides outstanding, innovative care to all of South Jersey. They join an ever growing list of Visage 7 clients to opt for our fully cloud-based platform, which, as a result of our CloudPACS strategy, is becoming the standard in the North American healthcare IT market.

What’s next for Pro Medicus?

Pro Medicus management reports a strong pipeline across all market segments, with increasing global interest in the company’s end-to-end imaging solutions. The Virtua deal is expected to further entrench PME in the US market and demonstrates traction for their ‘full stack’ strategy including additional specialities like cardiology.

Planning for the Virtua rollout commences immediately, with the system set to go live from late 2027. PME continues to focus on winning large, long-term contracts with major healthcare providers worldwide.

Pro Medicus share price snapshot

Over the 12 months, Pro Medicus shares have declined 38%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 3% over the same period.

View Original Announcement

The post Pro Medicus: $43m US contract boosts outlook 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 recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. 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.

Fortescue Ltd vs Coles Group Ltd shares: Which ASX blue chip could set you up for life?

If you’re searching for ASX blue chips to potentially “set you up for life”, you’re likely tossing up between companies with meaty dividends and strong market positions. Fortescue Ltd (ASX: FMG) and Coles Group Ltd (ASX: COL) are two giants, but they could hardly be more different: one’s a mining powerhouse riding the iron ore waves, the other a supermarket stalwart feeding Aussie families. Here’s how they compare if you’re weighing up Fortescue vs Coles shares right now.

The case for Fortescue

Fortescue is a global player in iron ore, operating extensive mines and infrastructure across Western Australia’s Pilbara. It’s established itself as one of the world’s largest iron ore producers, running everything from mines to ports and rail in-house. This scale delivers enviable efficiency and keeps Fortescue near the top of the cost curve.

A couple of fundamentals stand out for Fortescue:

• It offers a fully franked dividend yield of 7.11%, eye-catching even among ASX income stocks.
• Its price-to-earnings (P/E) ratio sits at 11.39, which looks reasonable for a major miner, especially compared to some industrial sectors.
• Market capitalisation is $46.77 billion, putting it among the ASX’s largest companies.

Fortescue has a track record of generous, reliable dividends — every payout shown is 100% franked. That could be compelling if you’re after income, especially when paired with ongoing global demand for iron ore.

The case for Coles

Coles is one of Australia’s best-known food and grocery retailers. With a vast store network and established online offering, Coles is many households’ primary destination for groceries and essentials. The company has been through significant change, spinning out from Wesfarmers in 2018, and now stands alone as a defensive mainstay on the ASX.

Coles’ key stats include:

• A current dividend yield of 3.26%, also fully franked for those who value tax-effective income streams.
• Its P/E ratio comes in at 29.43 — much higher than Fortescue’s. That’s not unusual for supermarkets, given their stable earnings and relative insulation from economic swings, but it is a significant gap.
• Market cap is $32.12 billion — smaller than Fortescue but still a blue chip heavyweight.

Coles has delivered consistent, fully franked dividends since rejoining the ASX. The latest annual payout is $0.74 per share, and the company’s reputation for steadiness might reassure investors wary of volatile sectors.

Valuation comparison

Here’s how Fortescue and Coles line up on some vital numbers:

	Fortescue	Coles
Market Cap	$46.77 billion	$32.12 billion
P/E Ratio	11.39	29.43
Dividend Yield	7.11% (100% franked)	3.26% (100% franked)
Earnings per Share (EPS)	0.931	0.812
Dividend per Share	1.08	0.74

Note: The P/E ratio and EPS for both companies may be based on different earnings definitions (historical, underlying, or forward), so the numbers won’t necessarily line up neatly for direct calculation.

The gap in dividend yield and P/E is stark. Fortescue trades at a much lower multiple and pays more than double Coles’ yield. However, Coles’ higher P/E likely reflects its lower risk profile and steady cash flows, while Fortescue’s earnings are more tightly linked to volatile iron ore prices.

Recent share price momentum

Comparing recent share price performance up to 16 October 2026:

• Fortescue closed at $15.19, up 1.13% for the day. However, its year-to-date return is down sharply at -26.1%.
• Coles Group closed at $23.90, down 1.52% that day, but boasts a year-to-date return of +15.1%.

Which is the better buy?

Both Fortescue and Coles are classic ASX blue chips, but each comes with a distinct risk-reward trade-off. On the numbers, Fortescue wows with its fat, fully franked dividend and lower P/E ratio. If I were hunting for passive income and the chance of cyclical upside, I’d have to give Fortescue the nod. However, that juicy dividend comes hand-in-hand with much more volatile earnings, as the past year’s negative 26% return reminds us. Coles, by contrast, is steady as she goes, with lower yield but consistent price gains and defensiveness — albeit at a steeper price-to-earnings multiple.

For building wealth over the long haul, my pick would be Fortescue. The sizeable, reliable income and current valuation look too tempting to ignore if you’re prepared for the iron ore rollercoaster. For those prioritising lower risk and steady defensiveness, I wouldn’t blame anyone leaning Coles — but for “set you up for life” potential, Fortescue edges it for me.

The post Fortescue vs Coles shares: Which ASX blue chip wins this month? appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target $80,000 a year in passive income?
• I’d buy 2,516 shares of Coles stock to aim for $250 a month of passive income
• Which ASX retailer is a better buy, Coles or Woolworths?
• 3 ASX 200 shares to buy and why: Ord Minnett
• NAB vs Coles: Which is the better ASX blue-chip buy for SMSF investors?

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 draft. 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.