The average dividend yield of the S&P/ASX 200 Index (ASX: XJO) is 4.2%, or 6% gross with 100% franking.

That compares to a risk-free return rate of 5.5% on plain old savings accounts these days.

Some investors may feel the risk-reward of ASX dividend shares and ETFs is less than compelling right now.

However, some ASX ETFs can deliver higher than average dividends if their strategies work out.

One ETF that aims to maximise income is the Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX).

At the time of writing, YMAX ETF is trading on a trailing 12-month gross distribution yield of 10.5%.

What this ASX dividend ETF does differently

The first part of this Betashares ETF’s strategy is obvious: it invests in the top 20 stocks, which all pay reliable dividends.

The top holdings are BHP Group Ltd (ASX: BHP) (18.6%), Commonwealth Bank of Australia (ASX: CBA) (14.8%), National Australia Bank Ltd (ASX: NAB) (7.1%), Westpac Banking Corp (ASX: WBC) (6.9%), and ANZ Group Holdings Ltd (ASX: ANZ) (6.7%) shares.

In addition, YMAX ETF also sells covered call options on its shares to generate extra income from the option premiums.

How it works is that YMAX sells options to investors, and each option has a strike price.

If a share’s value rises above the strike price, the option owner has the right to buy the shares from YMAX at that price.

They can then sell the shares and make a profit on the difference between the strike price and current market value.

If the share does not go above the strike price, the option holder is unlikely to exercise the option.

YMAX simply keeps the premium, and no trade occurs.

The income from the options premiums provides a partial hedge against share price falls. This protects YMAX investors in falling markets.

In the calendar year to date, the ASX 200 has fallen 0.2%.

Fundie explains why ‘we’re not fans’

The YMAX ETF is currently $7.27 per unit, up 1% on Friday.

The Market Matters team is neutral towards the YMAX ETF around the $7 mark.

In a recent newsletter, James Gerrish from Market Matters said:

We aren’t fans of the YMAX, its performance has been lacking in our opinion, just when it should have shined.

The fundie explained:

The YMAX has struggled in 2026 relative to its peers, gaining just +3.1% year-to-date.

Given its income-focused strategy and the current choppy market environment, we would have expected more from the fund, particularly compared to its peers.

YMAX ETF’s management fee and expenses are 0.64%.

The post Do you own this ASX dividend ETF? Fundie explains why ‘we aren’t fans’ appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend stocks to provide passive income through retirement 
• Why it could be time to shift from growth to income: Expert
• 2 ASX dividend shares yielding 9.5% (or even more)

Motley Fool contributor Bronwyn Allen 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.

Fortescue vs BHP shares: Which ASX miner pays a better passive income?

When it comes to picking ASX mining shares for passive income, Fortescue Ltd (ASX: FMG) and BHP Group Ltd (ASX: BHP) are two household names. Both have significant scale, long track records, and consistently franked dividends. But for investors focused on dividend income, the details matter—especially when there are major differences in yield, payout trends, and recent share price movements. Here’s what stands out as I weigh up Fortescue vs BHP shares for passive income right now.

The case for Fortescue

Fortescue is a Perth-based iron ore giant operating across the Pilbara in Western Australia. As the world’s fourth largest iron ore producer, Fortescue has built an integrated network of mines, rail, and port infrastructure. Its operations span the Chichester, Solomon, and Western mining hubs, and run one of the world’s fastest heavy haul railways.

Three fundamentals make Fortescue particularly conspicuous for income seekers:

• Dividend yield: Its current dividend yield sits at 6.67%, well above the average for the ASX 200 and higher than that of BHP, making it appealing for those after regular cash returns.
• Franking: Fortescue dividends are 100% franked, maximising after-tax returns for Australian investors.
• P/E and earnings: With a price-to-earnings (P/E) ratio of 12.06 and earnings per share (EPS) of $0.931, the company looks reasonably valued versus BHP when focusing on income.

On the downside, Fortescue’s share price has dropped -21.5% year-to-date, which some might see as a red flag, but for income hunters this could make for an attractive entry on higher yield.

The case for BHP

BHP is a true blue-chip, diversified mining giant with global operations spanning iron ore, copper, coal and more. Formerly known as BHP Billiton, BHP unified its company structure in 2022 and is consistently one of the largest companies on the ASX. It’s well known for its scale, resilience, and ability to ride out commodity cycles.

For passive income investors, BHP has the following on its side:

• Dividend consistency: The company’s dividend per share this year is $2.42, with strong history of regular semi-annual fully franked payouts.
• Balance sheet and stability: BHP’s vast scale (market cap $319.59 billion) and diversified earnings make its dividends feel more robust across the resource cycle.
• Recent momentum: The share price is up an impressive 41.4% year-to-date, suggesting investor confidence and sector tailwinds.

While BHP’s current dividend yield of 3.91% trails Fortescue, its size, stability, and impressive recent returns may justify the lower yield for investors prioritising long-term security and reliable payments.

Valuation comparison

With dividend income in mind, here’s how Fortescue and BHP stack up on key metrics:

	Fortescue	BHP
Market Cap	$50.53 billion	$319.59 billion
P/E Ratio	12.06	22.22
Dividend Yield	6.67%	3.91%
Earnings per share	$0.931	$1.932
Dividend per share	$1.08	$2.42
Franking	100%	100%
YTD Return	-21.54%	41.37%

Note: BHP’s P/E ratio of 22.22 and EPS of $1.932 appear mathematically inconsistent under the usual P/E formula. This could mean BHP’s reported P/E is based on underlying or forward earnings, not the same EPS shown.

The biggest point of difference is dividend yield—Fortescue is nearly 70% higher than BHP on this metric. BHP’s much larger market cap and higher nominal dividend per share are balanced against a much higher share price, keeping its yield lower.

Recent share price momentum

Comparing recent share price performance up to 6 October 2026:

• Fortescue closed at $16.41, up 1.4% for the day but down -21.5% year-to-date.
• BHP closed at $62.86, up 1.6% for the day and up a striking 41.4% year-to-date.
• BHP has significantly outperformed Fortescue in share price terms over the past year.

Which is the better buy?

If my main goal was maximising fully franked passive income today, I’d lean toward Fortescue. Its dividend yield is meaningfully higher (6.67% vs 3.91%), and the fully franked payments provide a strong after-tax cash flow. Yes, the share price has had a rough year, but to me that’s a risk many income-focused investors are often willing to accept for a juicier yield—particularly as Fortescue’s payout has been consistent in recent years, as reflected in its dividend history.

BHP certainly offers greater diversification and recent share price momentum, with a nearly $320 billion market cap and a strong track record. If I wanted stability and a lower-yielding but potentially more sustainable dividend over time, I’d consider BHP. But purely on current yield and franking, Fortescue is my pick for passive income in the mining sector right now.

The post Fortescue vs BHP: Which ASX miner is better for passive income in October? appeared first on The Motley Fool Australia.

More reading

• 6 ASX shares downgraded by experts this week
• Is the Fortescue share price a bargain buy?
• Buy, hold, sell: Rural Funds Group, Imdex, Fortescue shares
• 5 things to watch on the ASX 200 on Friday
• Is BHP the best ASX mining share to buy for the next 5 years?

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 recommended BHP Group. 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.

Bendigo and Adelaide Bank vs Bank of Queensland shares

For Aussie income seekers and value hunters weighing up regional banks, two names often rise to the top: Bendigo and Adelaide Bank Ltd (ASX: BEN) and Bank of Queensland Ltd (ASX: BOQ). Both compete in much the same space beyond the ‘big four’, but their profiles, fundamentals, and market dynamics have diverged. Here’s a friendly, practical run-down for those pondering Bendigo and Adelaide Bank vs Bank of Queensland shares.

The case for Bendigo and Adelaide Bank

Bendigo and Adelaide Bank is a staple of Australia’s regional banking scene. Founded back in 1858, Bendigo rose to prominence through its community branch rollouts, especially in areas overlooked by the majors. The 2007 merger with Adelaide Bank gave it reach into wholesale banking, spreading the business footprint. The bank is often praised for its conservative risk approach and loyal customer base, and today it runs a strong network in retail and small business banking.

Looking at the numbers:

• Dividend yield: 6.16%, fully franked, which is attractive for income-oriented investors.
• P/E ratio: 16.32, notably lower than Bank of Queensland’s, suggesting a more moderate valuation.
• Market cap: $5.96 billion, making it the larger of the two regionals in this comparison.

Bendigo’s dividends have been paid like clockwork, with full franking credited every time—see the unbroken line running through the dividend history. As of its company profile, Bendigo lays claim to having a reputation as a community banking leader and has maintained high customer loyalty, a potential defender of long-term franchise value.

The case for Bank of Queensland

Bank of Queensland (BOQ) stands out as one of the few sizeable regionals still operating outside of major bank ownership. It has diversified in recent years, now controlling brands like Virgin Money Australia and Me Bank. Alongside the main home loan and business lending operations, BOQ also targets specialist banking services, particularly for professionals like medicos and accountants.

A scan of BOQ’s key numbers:

• Dividend yield: 6.19%, again fully franked—slightly higher than Bendigo, making it an appealing feature for yield chasers.
• P/E ratio: 43.65, much higher than Bendigo’s. This flag is worth watching, as it points to possible earnings challenges or higher market expectations.
• Market cap: $4.29 billion, a tad smaller within this comparison.

Dividend history shows consistency, and the recent special cash dividend signals some flexibility with returns. As of its most recent public description, the bank’s presence in niche lending segments and its brand-playing approach (like Virgin Money) offer growth levers beyond standard regional banking.

Valuation comparison

The two banks stack up differently in terms of value and yield. Here’s a head-to-head for the big investor questions:

	Bendigo and Adelaide Bank	Bank of Queensland
P/E Ratio	16.32	43.65
Dividend Yield	6.16% (100% franked)	6.19% (100% franked)
Market Cap	$5.96 billion	$4.29 billion
Earnings per Share (EPS)	0.627	0.148
Dividend per Share	0.66	0.40
Franking	100%	100%
YTD Return	3.23%	4.29%

Note: Bank of Queensland’s reported P/E ratio and EPS appear inconsistent (a P/E of 43.65 with EPS of 0.148), suggesting different earnings measures might be used for these calculations.

Recent share price momentum

Comparing recent share price performance up to 6 October 2026:

• Bendigo and Adelaide Bank: Closed at $10.24, barely nudging up 0.1% on the day. The recent weeks have seen moderate ups and downs, but overall a fairly steady line since September.
• Bank of Queensland: Closed at $6.51, rising 0.77% on the day. Short-term, BOQ has shown a similar pattern of gentle swings, with some recovery action in early October.
• YTD returns: As of the data provided, BOQ sits at 4.3% for the year, while Bendigo is up 3.2%—not a dramatic difference, but worth noting if momentum matters to you.

Which is the better buy?

After sizing up Bendigo and Adelaide Bank and Bank of Queensland side by side, my pick for value hunters leans to Bendigo and Adelaide Bank. The case comes down to a much lower P/E ratio, supporting the argument for better relative value compared to BOQ’s high multiple. Both offer similar, healthy dividend yields and fully franked payouts—but Bendigo’s yield looks more sustainable sitting beside stronger earnings per share and a bigger dividend per share.

While BOQ’s brand diversification strategies are intriguing for future growth, the valuation chasm (whether due to lower earnings or higher market optimism) dials up near-term risk on a value basis. Unless you have conviction in BOQ’s turnaround or niche plays, I think Bendigo and Adelaide Bank offers steadier value and income appeal for the classic regional bank portfolio spot.

The post Bendigo and Adelaide Bank vs Bank of Queensland: Which is better value? appeared first on The Motley Fool Australia.

More reading

• 6 ASX shares downgraded by experts this week
• Buy, hold, sell: Orica, Bank of Queensland, Megaport shares
• Are ASX 200 bank stocks a buy in October?
• Buy, hold, sell: BOQ, Harvey Norman, Lynas shares
• How much superannuation do I need to earn $1,000 per week in passive income?

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 positions in and has recommended Bendigo And Adelaide Bank. 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.