I’m sure most readers would love to have an annual passive income return of $40,000 in their superannuation.

For people already getting $40,000 per year in passive income, I reckon receiving an additional $40,000 per year would also be very welcome.

So, what would it take to unlock that river of dividends via superannuation? That’s what I’ll look at in this article.

Superannuation could be the best place to invest for passive income these days following taxation changes to trusts, residential property and capital gains tax.

Owning dividend-paying investments in superannuation means investors won’t lose as much of the return to tax as they would if the investment was in their own name. During the accumulation phase, superannuation has a lower tax rate for income than full-time working individuals, while in retirement the tax rate for income could be 0% for many retirees, depending on the size of their superannuation balance.

With that in mind, I think superannuation is an excellent place to unlock $40,000 per year.

Generating $40,000 of annual passive income

It’ll take a sizeable sum to unlock tens of thousands of dollars of dividends each year.

There’s no single dollar target required because it really depends on what sorts of investments Aussies choose and the dividend yield that comes with that.

For example, if an investor had all of their money in iShares S&P 500 ETF (ASX: IVV), you’d have a dividend yield of around 1%. With a dividend yield of 1%, someone would need a $4 million portfolio to make $40,000 per year in passive income.

The IVV ETF is not the choice I’d make for passive income, though it does have other benefits.

Instead, I’d focus on building a portfolio with a dividend yield of at least 4%, if not more.

With a 4% dividend yield, an investor could generate the desired passive income from a $1 million portfolio.

If an Australian’s portfolio had a 5% dividend yield, they would only need $800,000 for that income.

With a 6.5% dividend yield, an Australian’s portfolio goal would be close to $615,000.

As you can see, the higher the dividend yield, the smaller the portfolio needs to be to achieve the income target.

But, higher dividend yields may be riskier and/or deliver less capital growth for investors.

So, the choices investors make could greatly influence how reliable that passive income is. Not every investment with a high dividend yield may sustain its dividends over the longer term.

ASX dividend shares I’d consider for superannuation

If Australians are willing to accept a lower dividend yield, then it’s hard to look past Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). That’s an investment conglomerate that owns a diversified portfolio of defensive assets, enabling it to pay a reliable and growing dividend. Its payout has grown every year since 1998, though the grossed-up dividend yield is only 3.3%, including franking credits, at the time of writing.

But, there are plenty of businesses with higher dividend yields that I think are compelling.

For example, Centuria Industrial REIT (ASX: CIP) and Dexus Industria REIT (ASX: DXI) are both real estate investment trusts (REITs) with dividend yields of between 5% and 7%. They provide exposure to industrial property, which is benefiting from compelling rental tailwinds.

I also like portfolio investments that can provide diversification and good dividend yields for superannuation investors.

Some of my favourite portfolio-based investments that come to mind include MFF Capital Investments Ltd (ASX: MFF), WCM Quality Global Growth Fund (ASX: WCMQ), WCM Global Growth Ltd (ASX: WQG), Future Generation Australia Ltd (ASX: FGX), Future Generation Global Ltd (ASX: FGG) and L1 Long Short Fund Ltd (ASX: LSF). All of these names have a track record of increasing payouts to shareholders, with dividend yields between 4% and 7%.

There are a number of other attractive ASX shares to consider, in my view, for passive income.

The post How much is needed in superannuation to target a $40,000 annual passive income? appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares look like classic Warren Buffett investments
• Is $2 million really the new superannuation target?
• I’d buy 36,519 shares of this ASX stock to aim for $1,000 a month of passive income
• Buy, hold, sell: Centuria Industrial REIT, Endeavour, Wildcat Resources shares
• How much do I need to retire on $100,000 a year at 60?

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, Future Generation Global, L1 Long Short Fund, Mff Capital Investments, Washington H. Soul Pattinson and Company Limited, Wcm Global Growth, and Wcm Quality Global Growth Fund. 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 iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Mff Capital Investments and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) endured a negative hump day, sending the value of many ASX shares lower.

After opening sharply lower this morning, the ASX 200 spent the entire session in red territory. By the time the closing bell rang, the index had dropped 0.18% to finish at 9,053.8 points.

This miserable Wednesday for the local markets came after a similarly pessimistic night up on the American markets.

The Dow Jones Industrial Average Index (DJX: .DJI) couldn’t hold water, dropping 0.22%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was hit far harder though, falling 1.33%.

But let’s return to ASX shares now and dive into how the different ASX sectors handled today’s tough trading conditions.

Winners and losers

The losers easily outnumbered the winners this Wednesday.

Leading said losers were tech stocks. The S&P/ASX 200 Information Technology Index (ASX: XIJ) had a shocker, plunging 3.15%.

Real estate investment trusts (REITs) were also hit hard, with the S&P/ASX 200 A-REIT Index (ASX: XPJ) cratering by 1.15%.

Financial shares fared a little better. The S&P/ASX 200 Financials Index (ASX: XFJ) still tanked 0.64%, though.

Consumer discretionary stocks were in a similar boat, as you can see by the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ)’s 0.58% dive.

Gold shares weren’t much of a safe haven either. The All Ordinaries Gold Index (ASX: XGD) saw its value shrink 0.18%.

We could almost say the same for broader mining stocks, with the S&P/ASX 200 Materials Index (ASX: XMJ) retreating 0.04%.

Let’s turn to the winners now.

Leading the team were healthcare shares. The S&P/ASX 200 Healthcare Index (ASX: XHJ) roared 2.6% higher today.

Energy stocks also ran hot, as evidenced by the S&P/ASX 200 Energy Index (ASX: XEJ)’s 0.77% surge.

Utilities shares were a little tamer. The S&P/ASX 200 Utilities Index (ASX: XUJ) jumped 0.35% this session.

Consumer staples stocks were right behind that, with the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) advancing 0.31%.

Industrial shares got out unscathed this hump day. The S&P/ASX 200 Industrials Index (ASX: XNJ) ended up lifting 0.05%.

Finally, communications stocks notched a dodge, illustrated by the S&P/ASX 200 Communication Services Index (ASX: XTJ)’s 0.04% bump.

Top 10 ASX 200 shares countdown

It was REIT Stockland Corporation Ltd (ASX: SGP) that took out today’s top spot. Stockland units shot up 12.35% this Wednesday to finish at $4.55 each.

This came after the REIT reported its latest earnings, which clearly delighted the market.

Here’s how the other top shares landed their planes:

ASX-listed company	Share price	Price change
Stockland Corporation Ltd (ASX: SGP)	$4.55	12.35%
Fletcher Building Ltd (ASX: FBU)	$3.35	8.77%
Superloop Ltd (ASX: SLC)	$3.33	6.73%
Mirvac Group (ASX: MGR)	$1.85	6.32%
CSL Ltd (ASX: CSL)	$166.48	5.49%
Champion Iron Ltd (ASX: CIA)	$3.51	4.46%
SRG Global Ltd (ASX: SRG)	$4.10	3.54%
Graincorp Ltd (ASX: GNC)	$5.66	2.72%
Santos Ltd (ASX: STO)	$8.31	2.47%
Sonic Healthcare Ltd (ASX: SHL)	$23.56	2.35%

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• CSL shares: 1 number that investors shouldn’t ignore
• CSL shares rebound 79% from multi-year low: Here’s what brokers tip next
• Why Evolution Mining, Whitehaven and Santos shares are creating a buzz on Wednesday
• Rate rises have finally caught house prices. What does that means for ASX property shares?
• Santos posts lower first-half profit as new LNG projects ramp up

Motley Fool contributor Sebastian Bowen has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL, Sonic Healthcare, and Srg Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Well, one of the biggest pieces of news on the ASX so far this week has been the blockbuster earnings of healthcare giant CSL Ltd (ASX: CSL). CSL delivered its full-year results for FY2026 yesterday. And boy, did the markets grab them (and plenty of CSL shares) and run.

By the end of yesterday’s session, the CSL share price had rocketed a massive 17.25% for its best day in 20 years.

As we covered yesterday, there were a lot of lukewarm numbers in this ASX 200 healthcare stock‘s latest report. The company reported total revenues of US$15.89 billion for the year ended 30 June 2026. That was down 1% year-on-year. Underlying net profits after tax dropped 2% to US$3.1 billion.

A number of one-off costs and impairments drove CSL to a statutory net loss after tax of US$2.6 billion.

However, as my Fool colleague Mark discussed yesterday, it seems that the unbridled optimism we have seen for CSL shares this week has stemmed from its optimistic guidance for FY2027 and beyond.

CSL told investors to expect underlying net profits after tax growth of around 5% over FY27. This indicates a return to form is on the cards for a company that repeatedly dazzled investors for the decade leading up to 2020, before a series of events tanked the company’s fortunes.

Hopefully, CSL can deliver this turnaround. But now, I want to focus on one metric that has caught my eye in CSL’s latest numbers.

CSL shares surge despite a dividend hold

That metric is the final dividend that CSL will pay out in October. Yesterday, CSL revealed that this dividend will be worth US$1.60 per share. Coupled with April’s interim dividend of US$1.30 per share, the company is set to dole out a total of US$2.92 in dividends per share in 2026.

That metric is significant because it marks only the second time that CSL will not be delivering a dividend hike to its shareholders. In fact, the last time that CSL didn’t increase its year-on-year payouts was in 2022, largely thanks to the aftermath of the pandemic. You’d have to go back at least another decade to find any more instances of a dividend hold from this company.

This is a personal disappointment for me. I bought CSL shares many years ago, in part thanks to its strong history of dividend growth. As such, I was rather dismayed to see another hold on CSL’s 2026 payout. A company’s dividend growth is, in my view, one of the most vital indicators of a company’s health. It is difficult to fudge and provides a sharp insight into the health of a company. Not to mention the fact that ASX shares that consistently grow their dividends over time tend to be market beaters.

Now, CSL has been upfront about its challenges for a while now. So this hold isn’t really a surprise. But it is still something I didn’t want to see. That’s why I’ll be watching the payouts that this company declares next year like a hawk.

The post CSL shares: 1 number that investors shouldn’t ignore appeared first on The Motley Fool Australia.

More reading

• CSL shares rebound 79% from multi-year low: Here’s what brokers tip next
• CSL shares just had their best day in 20 years. What did I just miss?
• Is the CSL share price in the buy zone after the biotech giant’s results?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Sebastian Bowen has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.