Wesfarmers vs Qantas shares: Where should a 60-year-old invest?

If you’re in your sixties and weighing up Wesfarmers Ltd (ASX: WES) against Qantas Airways Ltd (ASX: QAN) shares, you’re comparing two iconic names with very different track records and business models. Wesfarmers spans supermarkets to hardware and pharmacies, while Qantas is Australia’s airline. With retirement income, steady dividends and relative stability front-of-mind for many, let’s spark up the Wesfarmers vs Qantas shares debate for those seeking to balance regular income with resilience.

The case for Wesfarmers

Wesfarmers is one of Australia’s largest, longest-standing listed conglomerates. Its household brands include Bunnings, Kmart, Officeworks and Priceline, giving it a retail backbone, plus chemical and fertiliser operations. The group added healthcare in 2022 with the API acquisition, bolstering its “defensive” qualities against economic shocks. As of its company profile, Wesfarmers’ portfolio gives it exposure to daily spending habits of Australians from all walks of life.

For investors near or in retirement, several figures stand out:

• Dividend Yield: 2.93%, fully franked – reliable and tax-friendly income.
• P/E Ratio: 29.94 – more of a premium price, reflecting perceived quality and steadiness.
• Dividend track record: Decades of consistent, fully franked payouts. Recent payments have hovered around $2 or more per share each year, often split between interim and final dividends.

Wesfarmers’ vast scale ($86.58 billion market cap) and stable business mix could provide peace of mind for retirees who value predictability and steady dividends.

The case for Qantas Airways

Qantas is Australia’s flagship airline, with roots stretching back to 1920. Its two main brands, Qantas and Jetstar, connect Australia’s dots across domestic and international routes. According to its most recent public description, Qantas prides itself on safety, reliability, and customer service, and it survived the massive turbulence of the COVID-19 pandemic.

Here’s what might appeal to a sixty-something investor:

• Dividend Yield: 4.40%, fully franked – higher cash return than Wesfarmers as of the latest data, and strongly tax-effective.
• P/E Ratio: 10.64 – much lower than Wesfarmers, appealing for those looking for value.
• Dividend payments have resumed since 2025, after being paused during the pandemic. The most recent payouts were around 40 cents per share over the past year.

Qantas’s business is more cyclical and sensitive to global shocks, but for investors seeking higher income (and comfortable with travel industry risks), it’s worth a look.

Valuation comparison

Let’s put the numbers side-by-side:

	Wesfarmers	Qantas
Market Cap	$86.58 billion	$13.42 billion
P/E Ratio	29.94	10.64
Dividend Yield	2.93% (100% franked)	4.40% (100% franked)
Dividend per share (latest annual)	$2.22	$0.40
Earnings per share (EPS)	2.534	0.845

Note: Qantas’s reported P/E ratio and EPS numbers align as expected, but be mindful that in airline cycles, earnings can fluctuate more dramatically than for a diversified retailer. Both companies offer fully franked dividends, boosting net yield for many Australian retirees.

Recent share price momentum

Comparing recent share price performance up to 7 October 2026:

• Wesfarmers closed at $76.30, up 0.58% for that day. Year to date, its return stands at -3.7%.
• Qantas closed at $8.87, down 1.33% for the day. Its year-to-date return is -9.6%.

Both shares are in negative territory for 2026 so far, but Wesfarmers has held up a little better than Qantas.

Which is the better buy?

If I had to pick for a 60 year old investor seeking reliable, tax-effective income and peace of mind, I’d lean towards Wesfarmers. Its business diversity, decades-long dividend consistency and defensive exposure across everyday retail sectors tick the classic retiree boxes. Qantas’ dividend yield is higher at present, but the airline game is far more turbulent: it paused dividends during COVID, and earnings remain vulnerable to oil prices, wars, and changing travel habits.

While Wesfarmers trades at a much higher P/E (almost 3x Qantas), I see that as reflecting its more stable earnings and longer-term pedigree as a dividend stock. For retirees focused on sleep-at-night investing, my pick would be Wesfarmers – even if it’s less exciting on the income front right now. Qantas could appeal if you believe in a strong, sustained post-pandemic recovery and are happy to take on extra risk for extra yield, but it wouldn’t be my primary choice for my own nest egg.

The post Wesfarmers vs Qantas: Which ASX share suits a 60-year-old investor? appeared first on The Motley Fool Australia.

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• Why this top broker is buying Charter Hall, Soul Patts, and Wesfarmers shares
• Down 20%: Is the Wesfarmers share price a top buy?
• How much passive income can I earn from a $950,000 superannuation balance?
• How much passive income can I make from a $100,000 ASX share portfolio?

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 positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. 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.

Exchange-traded funds (ETFs) are one of my favourite ways to invest for the long term.

With $5,000 to invest, Vanguard offers plenty of choices across different markets and investment strategies.

Here are three ETFs I would be happy to consider buying with the money today.

Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE)

The first ETF I would consider is the VGE ETF, which provides exposure to businesses across emerging markets.

I like this fund because it offers access to parts of the world that could experience substantial economic development over the coming decades.

For example, India has a growing middle class, rising consumption, and an expanding digital economy. Meanwhile, Taiwan plays an important role in global semiconductor manufacturing, and China remains one of the world’s largest consumer markets.

Through the Vanguard FTSE Emerging Markets Shares ETF, investors can gain exposure to thousands of stocks across these markets and others without having to pick individual winners. I think that is a sensible way to participate in the long-term growth of emerging economies.

Of course, these markets can be volatile. Political uncertainty, changing regulations, and currency movements can all affect returns.

But for someone with a long investment horizon, I believe the potential growth makes this Vanguard ETF worth considering.

Vanguard Global Technology Index ETF (ASX: VTEK)

My second choice would be the VTEK ETF.

Technology continues to change how businesses operate and how people live, and I think some of the biggest developments are still ahead of us.

Artificial intelligence (AI) is one obvious example. Businesses are investing enormous amounts in the computing infrastructure required to develop and run AI applications. As those applications become more widely used, I expect demand for software, semiconductors, and other supporting technologies to keep growing.

The VTEK ETF provides exposure to approximately 300 major technology stocks across developed and emerging markets. This includes NVIDIA, which has become a major supplier of the computing chips powering AI development.

But the opportunity extends beyond AI. Cloud computing, cybersecurity, automation, and the continued digitisation of businesses could all support technology spending over the coming years.

I particularly like being able to participate in these trends through a single investment.

The main risk for investors is concentration. Technology shares can be volatile, particularly when growth expectations are high, and the fund has significant exposure to a relatively small number of global giants.

Nevertheless, I think the VTEK ETF could be a strong long-term investment.

Vanguard Diversified All Growth Index ETF (ASX: VDAL)

My final pick takes a much broader approach. The VDAL ETF is designed for investors who want long-term share market growth without having to assemble and manage a portfolio of different ETFs themselves.

It provides exposure to more than 6,000 stocks across over 50 global markets, including Australian shares, international businesses, emerging markets, and small caps.

I think that makes it an excellent option for someone who wants to keep investing simple.

One important feature is that this Vanguard ETF invests entirely in growth assets, with a 100% allocation to shares.

That gives it substantial long-term growth potential, but it also means investors need to be comfortable with share market volatility. There is no defensive bond allocation to help cushion market downturns.

For someone investing over many years, though, I think that approach makes sense if they have the tolerance for the ups and downs along the way.

Foolish takeaway

I would be happy to invest $5,000 in any of these Vanguard ETFs.

All three offer long-term growth potential, and I think they could reward investors who are prepared to buy and hold for many years.

The post Why I would invest $5,000 in these top Vanguard ETFs appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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 Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I love the idea of investing for the long term and building significant cash flow for retirement. Superannuation could be the best place to invest for those goals.

If I’m working full-time and want to invest, putting money into shares in my own name could mean paying at least 30% tax on investment returns. Investing through superannuation could mean paying a tax rate of half that.

One of the main perceived negatives of superannuation is that the money is locked away for so long. It’s true that the money contributed to superannuation may not be accessible for decades. But that’s the point – we’re saving for retirement.

With mandatory contributions (and possibly topped up by additional amounts), investors can build towards a very pleasing net worth.

When it comes to building annual passive income, tax can play an important part because the income we can spend/invest is what we earn after tax. So, the tax rate affecting our investments is important.

Reaching $100,000 in annual passive income can be assisted by using superannuation, due to lower taxes during the accumulation phase and in retirement. Investing in our own name as an individual can come with higher taxes throughout life compared to the superannuation tax rate.

Let’s look at what is needed to make $100,000 of dividends within superannuation, while ignoring tax from now on because everyone has a different tax position.

Dividend yields are important

Any share investment that pays a dividend has a dividend yield.

That dividend yield is decided by how much of its annual earnings it pays out – the dividend payout ratio – and the valuation of the business.

A business can be valued in many ways, such as its price-earnings (P/E) ratio, the price-to-book ratio, and so on. The more expensive an asset is, the lower the dividend yield becomes.

Investors seeking dividend income will probably hunt for a solid dividend yield, but I think yields can be excessive if the dividend payout ratio gets too high, so I wouldn’t fill my portfolio with the highest yields I can find.

How large an investment balance needs to be to generate $100,000 of annual passive income depends on the dividend yield.

For example, if a portfolio had a dividend yield of 4%, it would need to be $2.5 million in size.

If the portfolio had a 5% dividend yield, it would need to be a $2 million portfolio.

A portfolio with a 6% dividend yield would require a $1.67 million portfolio.

Each portfolio yield comes with a different target, so it depends on what sorts of ASX shares investors buy.

So, let’s run through some businesses with their dividend yields.

Examples of top ASX shares with their dividend yields

I think investors should focus on the forecast upcoming payments where possible, rather than the past dividends. Forecasts are either from CMC Invest or the business itself. So, I’ll largely be looking at forecast grossed-up dividend yields, including franking credits if that’s relevant.

First, I’ll mention a couple of blue chips for superannuation dividend investing. In FY27, Coles Group Ltd (ASX: COL) is forecast to pay a grossed-up dividend yield of 5.2%, and Telstra Group Ltd (ASX: TLS) is projected to pay a grossed-up dividend yield of 6.5%.

Real estate investment trust (REIT) yields are looking particularly appealing following elevated interest rates. For example, Centuria Industrial REIT (ASX: CIP) is projected to pay a distribution yield of 6.2%, and Charter Hall Long WALE REIT (ASX: CLW) is forecast to pay a distribution yield of 7.8%.

Finally, I’m a big fan of compelling investment businesses with good investment strategies. Three of my favourites include Washington H. Soul Pattinson and Co Ltd (ASX: SOL), with a current grossed-up dividend yield of 3.4%, L1 Long Short Fund Ltd (ASX: LSF), with a current grossed-up dividend yield of 4.5%, and MFF Capital Investments Ltd (ASX: MFF), with a current grossed-up dividend yield of 6.7%.

The above ASX shares, and others, could be great contenders to produce an annual passive income of $100,000.

The post How much is needed in superannuation to target a $100,000 annual passive income? appeared first on The Motley Fool Australia.

More reading

• 17 ASX shares going ex-dividend next week
• Wesfarmers vs Coles: Which dividend share is better for retirees?
• How much superannuation do I need to generate $100,000 per year in passive income?
• Woolworths Group vs Telstra Group: Which ASX blue chip pays better passive income?
• 2 ASX passive income share ideas I’d use to generate $600 a month in 2027

Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund, Mff Capital Investments, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Mff Capital Investments, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.