BHP Group Ltd (ASX: BHP) has long been a favourite among Australian dividend investors.

And with its enormous mining operations, strong cash generation, and history of returning billions of dollars to shareholders, it isn’t difficult to see why.

But how much would you need invested in the mining giant to generate $10,000 in annual passive income? Let’s take a look.

Why BHP remains popular

One of the main reasons BHP is so popular is the scale and quality of its mining operations.

The company owns some of the world’s most important mineral resources, including operations that have been producing for decades and still have substantial reserves remaining.

This gives BHP opportunities to keep generating cash and investing in production for many years.

Its financial strength is another reason. BHP has generally been able to maintain a strong balance sheet while funding major projects and returning substantial amounts of money to shareholders.

Of course, mining is a cyclical business, and even BHP cannot escape fluctuations in commodity prices.

When prices are high, profits and dividends can be enormous. When they weaken, shareholder returns can fall significantly.

However, BHP’s size, asset quality, and financial resources arguably make it one of the better options for investors seeking dividend income from the resources sector.

So, what could its shares deliver over the coming years?

How many BHP shares would you need?

According to CommSec, BHP is forecast to pay fully franked dividends of $2.07 per share in FY 2027.

Based on its current share price of $60.94, this represents a forecast dividend yield of approximately 3.4%.

To generate $10,000 in annual passive income at that rate, an investor would need to own approximately 4,831 BHP shares.

Buying that many shares today would require an investment of around $294,400.

That’s certainly a substantial amount of money to have invested in one company, which is why I would generally favour building a diversified income portfolio rather than relying entirely on BHP.

However, eligible Australian investors could also benefit from franking credits attached to those dividends.

What about future passive income?

The good news for investors is that CommSec expects BHP’s dividends to increase over the following two years.

Despite an expected earnings dip in FY 2028, dividends are forecast to edge higher to $2.10 per share.

For someone holding 4,831 shares, that would mean approximately $10,145 in annual passive income.

By FY 2029, CommSec expects dividends to increase to $2.38 per share, potentially lifting annual passive income from the same holding to almost $11,500.

It is worth remembering that these are only forecasts and actual dividends will depend heavily on commodity prices and BHP’s earnings.

Nevertheless, they demonstrate why the mining giant remains a popular option for Australian income investors.

The post How many BHP shares do I need to buy for $10,000 of passive income? appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Goodman, Wesfarmers, BHP shares
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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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Xero Ltd (ASX: XRO) shares have fallen a staggering 62% over the past 12 months.

That is a remarkable decline for a technology company that has spent years building one of the world’s leading small business accounting platforms.

Could this make Xero shares a must-buy for patient investors?

An enormous market opportunity

The first thing that stands out to me is just how much room Xero still has to grow.

The company finished FY26 with 4.92 million customers globally, having added another 506,000 during the year. By July, it had reached the 5 million customer milestone.

That is an impressive achievement, but it is still a relatively small share of its potential market.

Xero estimates that its total addressable market includes around 100 million small and medium-sized businesses globally.

Of course, I would not expect the company to capture anything close to that entire market. Competition is fierce, and small businesses have different accounting requirements. But it gives investors a sense of the opportunity.

Overall, I think there is plenty of scope for Xero to keep adding customers for many years.

Getting more value from existing customers

Xero has been steadily increasing the amount of revenue it generates from each customer.

In FY26, average monthly revenue per customer increased 23% to NZ$55.44, although the addition of payments business Melio contributed to that growth.

Even excluding Melio, average revenue per customer increased, demonstrating that Xero is finding ways to generate more revenue from its existing platform.

I think that trend can continue. Xero is increasingly offering services beyond traditional bookkeeping, including payroll, payments, cash flow management, and other financial tools.

The acquisition of Melio gives it a stronger position in business payments, particularly in the United States.

As customers adopt more of these services, Xero can potentially generate additional revenue without needing to win a completely new subscriber.

That combination of customer growth and higher average revenue per customer could be powerful over time.

What about the AI threat?

This is probably the biggest question I have about Xero’s future.

Artificial intelligence (AI) is developing quickly, and it is not difficult to imagine a future where somebody asks ChatGPT to help prepare their tax return or manage parts of their business finances.

Could that eventually reduce the need for traditional accounting software? I certainly would not dismiss the possibility.

But I think Xero has some important advantages. Accounting involves much more than answering financial questions. Businesses need accurate records, bank reconciliations, payroll compliance, tax reporting, and reliable information that can be shared with accountants and regulators.

Xero brings those processes together, with years of financial information often embedded in the platform.

That makes switching software a significant undertaking, particularly for businesses that rely on Xero every day.

The company is also developing its own AI capabilities through JAX, which aims to automate bookkeeping tasks and help customers manage their finances more efficiently.

I think that gives Xero an opportunity to benefit from AI rather than simply defend itself against it.

The challenge will be making sure its software continues providing enough value as AI tools become more capable.

Foolish takeaway

I think Xero is still one of the ASX shares I would most want to own for the long term.

The 62% share price fall is certainly concerning, and AI could change the accounting software industry considerably.

But with millions of potential customers still to reach and opportunities to generate more revenue from those already using its platform, I believe Xero has plenty of growth ahead.

For me, that makes the shares a buy today.

The post Are Xero shares a must-buy for investors? appeared first on The Motley Fool Australia.

More reading

• 6 ASX shares to buy in today’s weak market: experts
• Here are the top 10 ASX 200 shares today
• Xero shares crash 63% in a year: Is there any upside left?
• Down 60%, is this ASX growth share now too cheap to ignore?
• 2 ASX shares tipped to grow 62% or more in the next 12 months

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

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.

More reading

• Wesfarmers vs Coles: Which dividend share is better for retirees?
• 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.