Author: openjargon

Some ASX shares make a lot of noise.

They have exciting growth stories, sharp share price moves, and plenty of attention from investors looking for the next big thing.

But I think quieter businesses can be just as useful in a long-term portfolio, especially when they provide income and exposure to essential assets.

One ASX 200 dividend share I would be happy to buy for the next decade is Transurban Group (ASX: TCL).

A business built around essential roads

Transurban owns and operates toll roads across major cities, including key assets in Sydney, Melbourne, Brisbane, and North America.

That gives the company exposure to a simple but powerful idea: people and goods still need to move around large cities.

Traffic volumes can shift from year to year. Fuel prices, working-from-home trends, economic conditions, and interest rates can all affect sentiment toward the stock.

But over the long term, major urban road networks remain important pieces of infrastructure.

I like businesses that own assets that are difficult to replicate. Building a new major toll road in a developed city is not easy. It requires planning approvals, large amounts of capital, long construction periods, and community support.

That gives existing road assets a valuable position.

Income with growth potential

The main reason many investors look at Transurban is income.

As an infrastructure business, Transurban can generate large amounts of cash flow from its toll road assets and pay distributions to investors.

For retirees or income-focused investors, that can be attractive.

But I also think Transurban offers more than just income today.

Many of its toll roads have long concession lives, and toll increases are often linked to inflation or contractual arrangements. That can help revenue grow over time, especially if traffic volumes also increase.

This is why I think the stock can be useful in a long-term portfolio. Investors may receive regular distributions, while the value of the underlying asset base can also grow if the business keeps executing.

Why it could be interesting now

Transurban has not been the easiest ASX 200 dividend share to own in recent years.

Higher interest rates have weighed on infrastructure and property-style investments. Debt costs are an important factor for a business like this, so the market can become more cautious when rates rise.

But that is also what makes the opportunity interesting.

If investors are too focused on near-term interest rate pressure, they may miss the long-term appeal of owning high-quality infrastructure assets.

Transurban is not going to grow like a small-cap technology company. That is not the role I would expect it to play.

Instead, I would view it as a dependable income and infrastructure holding that can sit in a portfolio for years.

Foolish takeaway

In my opinion, the appeal of Transurban is the boring strength of owning assets that millions of people use, often because they need to rather than because they want to.

That kind of ASX 200 dividend share can be easy to overlook when the market is chasing faster-moving opportunities. But for investors who want income, inflation-linked qualities, and exposure to long-life infrastructure, I think Transurban is worth a close look.

A decade from now, I suspect investors may be glad they owned a share like this while it quietly kept collecting tolls and paying distributions.

The post This ASX 200 dividend share could be a quiet winner for the next decade appeared first on The Motley Fool Australia.

More reading

• How to build a $52,000 annual passive income
• 3 strong ASX 200 shares for retirees to buy and hold
• Here is what Transurban shares are paying income investors in 2026
• The ASX dividend share built for long-term wealth
• How to invest during market chaos and volatility

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

The Vanguard MSCI Index International Shares ETF (ASX: VGS) and the iShares S&P 500 AUD ETF (ASX: IVV) are two of the most popular ASX exchange-traded funds (ETFs) for investors wanting international exposure.

I think both could be excellent long-term holdings.

The tricky part is that they are not as different as they may first appear. The VGS ETF has a large weighting to US shares, which means there is plenty of overlap with the IVV ETF.

Even so, there are some important differences.

The case for the IVV ETF

The IVV ETF gives investors exposure to the S&P 500.

That means investors are buying a slice of 500 large US-listed companies across technology, healthcare, financials, consumer goods, industrials, communications, and more.

For me, the appeal is the sheer quality and depth of the US market.

The S&P 500 has produced an average annual return of around 10% over the very long term. That is not guaranteed to continue, but it is an outstanding track record.

The US market has also been very good at producing world-leading companies. Many of today’s most important businesses in artificial intelligence, cloud computing, software, digital advertising, payments, and consumer technology are listed in the United States.

That makes the IVV ETF a very simple way to access a powerful long-term growth engine.

It is not risk-free. US shares can become expensive, technology exposure can be high, and currency movements can affect Australian investors.

But if I wanted one clean, simple global growth ETF, the IVV ETF would be hard to beat.

The case for the VGS ETF

The VGS ETF takes a broader approach.

It still gives investors plenty of exposure to US shares, so investors are not missing out on many of the world’s largest technology, healthcare, and consumer businesses. But it also reaches beyond the United States into other developed markets.

That means investors get exposure to companies listed in places such as Japan, the UK, France, Switzerland, Germany, the Netherlands, and Canada.

For example, the VGS ETF can provide access to global leaders that are not part of the S&P 500, such as LVMH Moet Hennessy Louis Vuitton, ASML, and Nestle.

I can see the appeal of that.

The world’s best companies are not all listed in the United States, and the VGS ETF gives investors a more diversified way to invest internationally.

Which one would I choose?

This is a close call. If I could only buy one today, I would choose the IVV ETF.

The S&P 500’s long-term record, the strength of US corporate earnings, and the number of world-class companies inside the index make it my preferred option.

But I do not think this is a one-size-fits-all answer.

The VGS ETF could be the better choice for investors who want broader developed-market diversification. It may also suit investors who prefer not to have so much of their international exposure tied to one country.

Foolish takeaway

I would not lose sleep owning either of these ETFs for the next decade.

The IVV ETF is my pick because I think the S&P 500 remains one of the best long-term wealth-building markets in the world.

But the VGS ETF solves a different problem. It gives investors a wider developed-market footprint and reduces the need to rely so heavily on the United States.

The post VGS vs IVV: Which ASX ETF is better? appeared first on The Motley Fool Australia.

More reading

• These are the cheapest ASX ETFs on the Australian market
• Why I’d buy these ASX ETFs if I were a beginner
• 5 excellent ASX ETFs to buy and hold for 25 years
• How to build a $150,000 ASX share portfolio from scratch
• 2 of the best ASX ETFs to buy and hold

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 ASML and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lvmh Moët Hennessy – Louis Vuitton, Société Européenne and Nestlé. The Motley Fool Australia has recommended ASML, Vanguard Msci Index International Shares ETF, and 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.

Shares in Gold Hydrogen Ltd (ASX: GHY) jumped during the week after the company said it believed it had a “world-leading” hydrogen and helium project in South Australia.

Encouraging results

The company said in a statement to the ASX that drilling and well testing to date had confirmed “exceptional” gas purities at the Ramsay project, with natural hydrogen at up to 97% and helium at up to 36.9%.

The company also said Worley Consulting had completed a high-level commercial assessment of three helium production scenarios.

The company said:

Modelling undertaken by Worley indicates that, based on the inputs provided by the Company, Ramsay may have the potential to be commercially viable with as few as two wells, assuming sustained helium flow rates of ~29 thousand standard cubic feet (Mscf) per day per well. Scaling to ten wells is indicated by Worley to improve the net present value, internal rate of return and payback for a gaseous product.

The company said that while it was still looking to advance its medium to long-term hydrogen opportunities, it had identified the potential for accelerated helium development at Ramsay.

Gold Hydrogen said it would continue working with Worley Ltd (ASX: WOR) to refine the models in parallel with the next flow-testing campaign at Ramsay, which is scheduled for June.

The company said Australia currently imports all of its helium following the closure of the Darwin LNG Helium plant in late 2023.

The company added:

Helium is a high-value, non-manufacturable commodity, with structurally rising demand driven by advanced industrial and technological applications.

Helium in demand

Gold Hydrogen Chair Alexander Downer said:

Helium currently sits on Australia’s Strategic Materials List, but that is a holding pattern, and the events of recent weeks have laid bare just how exposed Australia is. We import 100% of a gas that is essential to chips, MRI, defence and AI infrastructure, and the global supply chain recently lost roughly a third of its production overnight. It is time to move helium from the Strategic Materials List back onto Australia’s Critical Minerals List, where it belongs. Independent commentary, including a recent piece by the Australian Strategic Policy Institute, has put the issue plainly: no Helium, no chips. Gold Hydrogen has a unique opportunity, and a responsibility, to help Australia rebuild a sovereign helium capability and to be part of the solution for our allies and trading partners.

Gold Hydrogen is valued at $72.2 million. The company’s shares are changing hands at 37.5 cents at the time of writing, up 15.4% from a week earlier, after trading as high as 43 cents the week after the announcement.

The post This natural hydrogen company says it has a world-leading project appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Catapult Sports, Worley, CBA shares
• Worley shares jump as another $300 million buyback lands
• Worley unveils new growth strategy and $300m buyback at Investor Day
• Why these 2 ASX 200 heavyweights just got a big buy call
• Up 329% in a year, ASX All Ords mining stock surging again today on big Worley news

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.

Starting out with investing can feel harder than it needs to be.

There are thousands of shares, endless opinions, and plenty of noise about what the market might do next.

That is why I think exchange-traded funds (ETFs) can be so useful for beginners. They allow investors to buy a basket of shares in one trade, spread risk across many companies, and build a portfolio without needing to pick every winner.

If I were beginning today, three ASX ETFs I would consider are named in this article.

iShares S&P 500 AUD ETF (ASX: IVV)

The iShares S&P 500 AUD ETF gives investors exposure to 500 of the largest listed companies in the United States.

I think the IVV ETF is a strong starting point because it gives Australian investors access to parts of the market that are not well represented on the ASX.

The Australian market has plenty of financials, miners, supermarkets, and infrastructure shares. The US market adds exposure to global leaders in technology, healthcare, consumer brands, payments, software, industrials, and communications.

This ETF owns companies such as Microsoft, NVIDIA, Apple, Amazon, and Meta Platforms.

For beginners, I think that is powerful. Instead of trying to decide which global giant will perform best, the iShares S&P 500 AUD ETF lets investors own a broad slice of corporate America.

It will still fall when US shares sell off. But over long periods, the S&P 500 has been one of the world’s great wealth-building markets.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

The Vanguard FTSE Asia Ex-Japan Shares Index ETF gives investors exposure to Asian markets outside Japan.

I think this is an interesting ETF for beginners because it adds a different kind of growth exposure.

Many Australian portfolios end up heavily focused on Australia and the United States. That can work well, but Asia is home to some of the world’s largest populations, fastest-growing consumer markets, and most important technology supply chains.

The VAE ETF gives investors access to companies across markets such as China, Taiwan, India, South Korea, Hong Kong, Singapore, and others.

Its holdings can include major businesses such as Taiwan Semiconductor Manufacturing, Tencent, Samsung Electronics, and Alibaba Group.

This ASX ETF can be more volatile than a broad US or Australian index fund. Currency movements, politics, regulation, and emerging market risks can all affect returns.

But for a beginner investing for decades, I think having some exposure to Asia’s long-term growth could make sense.

VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)

Lastly, the VanEck Morningstar Wide Moat AUD ETF takes a more selective approach. It focuses on US companies that have durable competitive advantages, or wide moats.

That could mean strong brands, cost advantages, network effects, switching costs, or valuable intangible assets.

I like this idea for beginners because it encourages investors to think about business quality rather than just share price movements.

The MOAT ETF is not trying to own every company. It is trying to own companies that may be better placed to defend profits over time.

That does not guarantee outperformance. No ETF can do that. But I think quality is a sensible principle to build around, especially for investors who want to hold through market cycles.

Foolish takeaway

For beginners, I think the biggest advantage of ETFs is that they remove some of the pressure from investing.

There is no need to find the next superstar stock on day one. A beginner can start with broad, sensible exposure and let time do a lot of the work.

That is why I like this mix. It gives an investor exposure beyond Australia, across different regions, sectors, and investment styles.

From there, the most important step is simple: keep going.

The post Why I’d buy these ASX ETFs if I were a beginner appeared first on The Motley Fool Australia.

More reading

• How to build a $20,000 ASX share portfolio with $100 a month
• 5 excellent ASX ETFs to buy and hold for 25 years
• 3 of the best performing Vanguard ASX ETFs over the last year
• How to build a $150,000 ASX share portfolio from scratch
• How to generate $20,000 a year in passive income on the ASX

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 Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, Tencent, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group. The Motley Fool Australia has recommended Amazon, Apple, Meta Platforms, Microsoft, Nvidia, VanEck Morningstar Wide Moat ETF, and 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.

Hitting 65 is a major turning point for many Australians.

While the age pension currently starts at 67, plenty of people begin thinking seriously about retirement around 65.

Some are already winding back work, others are planning their final few years in the workforce, and many are asking the same question: is my superannuation balance enough?

Before looking at the average, it helps to understand what super is actually trying to fund.

What does retirement cost?

According to the Association of Superannuation Funds of Australia (ASFA), there are two main retirement lifestyles to consider: modest and comfortable.

A modest retirement is designed to sit slightly above the age pension. It covers the basics, but leaves limited room for discretionary spending, travel, major home repairs, or unexpected costs.

A comfortable retirement is very different. It allows retirees to enjoy a broader lifestyle, including private health insurance, regular leisure activities, a reasonable car, household goods, domestic holidays, and occasional international travel.

ASFA estimates that a comfortable retirement requires around $630,000 in super for a single person and $730,000 for a couple. A modest retirement requires far less, at around $110,000 for singles and $120,000 for couples.

So, what is the average superannuation balance at 65?

There isn’t a precise official figure for exactly age 65, but we can make a reasonable estimate using the surrounding age brackets.

Based on recent data, the likely average balance is approximately $353,000 for women and $422,000 for men.

That means a couple where both partners are around the average could have a combined super balance of roughly $775,000.

How does that compare?

For couples, the average balance at 65 is above ASFA’s comfortable retirement benchmark. That is an encouraging sign, particularly when the age pension becomes available from 67 and may provide additional support.

For singles, the picture is more mixed. The estimated average balance for both women and men is well above the modest retirement benchmark, but below the amount ASFA suggests is needed for a comfortable retirement.

This means many single retirees may need to rely partly on the Age Pension, adjust their spending expectations, or continue working for longer if they want more flexibility in retirement.

The important caveat

Averages only tell part of the story. Some Australians reach 65 with very high super balances, while others have far less because of career breaks, part-time work, lower wages, divorce, health issues, or time spent outside the workforce.

Housing also matters enormously. ASFA’s figures assume home ownership. A retiree who owns their home outright is in a very different position from someone still paying rent or carrying a mortgage.

Foolish takeaway

The average Australian superannuation balance at age 65 is likely to be around $353,000 for women and $423,000 for men.

For couples, that may be enough to support a comfortable retirement, especially with the age pension later playing a role. For singles, the average balance is more likely to sit somewhere between modest and comfortable.

Ultimately, age 65 is not just about comparing your balance to the average. It is about understanding what kind of retirement you want, how much it may cost, and whether your super is ready to support it.

The post Here’s the average superannuation balance at age 65 appeared first on The Motley Fool Australia.

More reading

• 3 reasons to buy this battery, tech and lithium ASX ETF
• Where I’d invest $5,000 in ASX shares this week
• How many CBA shares do I need to buy for $10,000 of passive income?
• Thinking about dividend yields? Here’s how much the top 10 ASX 200 shares pay
• How big will the BHP dividend be in 2027?

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 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.

There has been plenty of coverage on the global AI boom. 

Artificial intelligence has moved from a niche technology theme into a foundational force reshaping industries, infrastructure, and global investment markets.

For investors, there are many ways to target this emerging market. 

A new report from Global X highlights the opportunity that may lie outside of AI companies, and in the backbone of energy storage. 

For investors, this growing demand could create a significant long-term opportunity for companies involved in lithium, battery production and energy storage technology.

These areas are all targeted by the Global X Battery Tech & Lithium ETF (ASX: ACDC). 

Here are three reasons why investors should be considering this ASX ETF. 

AI data centres need batteries

Artificial intelligence is driving a massive global buildout of data centres. Every time an AI model answers a question, generates an image or processes information, it relies on powerful servers housed inside these facilities.

However, AI data centres consume huge amounts of electricity, and in many cases, the power grid isn’t keeping up. That’s where batteries are becoming increasingly important.

Battery technology is no longer just a backup system sitting quietly in the background. It is rapidly becoming a core piece of AI infrastructure, helping data centres manage surging energy demand, avoid grid bottlenecks and keep operations running around the clock.

Energy storage is becoming a major growth industry

Research from BloombergNEF suggests data centre operators could add between 2 and 3 gigawatt-hours (GWh) of battery storage capacity each year through to 2028. 

More significantly, there are already more than 40GWh of additional projects that have been confirmed but are yet to be installed.

Together, these figures underline the pace at which demand for battery technology could grow as AI adoption accelerates.

The opportunity also extends far beyond data centres themselves. Large-scale battery deployments require lithium, battery cells, raw materials and specialised energy storage systems, creating potential tailwinds across the broader battery and lithium supply chain.

Government investment growing

Additionally, governments are increasingly focused on energy security and reducing dependence on imported energy.

Geopolitical tensions and global conflicts have highlighted the risks of relying too heavily on overseas energy supplies.

As a result, many countries are investing heavily in renewable energy and battery storage systems to strengthen domestic energy infrastructure.

Renewable energy sources like solar and wind are intermittent, meaning they don’t produce electricity constantly. Batteries help solve this problem by storing excess energy and releasing it when needed.

This creates another powerful demand driver for battery technology alongside the rapid growth of AI infrastructure.

Gaining exposure with a single ASX ETF

For investors looking to gain exposure to this theme, the Global X Battery Tech & Lithium ETF invests across areas such as:

• Lithium mining and refining
• Battery manufacturing
• Energy storage technology
• Electric vehicle battery production. 

The fund focuses on a trend sitting at the intersection of two major long-term trends: the rise of AI and the global transition toward cleaner, more resilient energy systems.

The post 3 reasons to buy this battery, tech and lithium ASX ETF appeared first on The Motley Fool Australia.

More reading

• Here’s the average superannuation balance at age 65
• Where I’d invest $5,000 in ASX shares this week
• How many CBA shares do I need to buy for $10,000 of passive income?
• Thinking about dividend yields? Here’s how much the top 10 ASX 200 shares pay
• How big will the BHP dividend be in 2027?

Motley Fool contributor Aaron Bell 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.

There are still plenty of ASX shares I would be happy to buy despite the recent market volatility.

Some are trading at more attractive prices after pullbacks. Others continue to look like high-quality long-term options, even if they are not obvious bargains.

If I had $5,000 to put to work this week, three ASX shares I would be looking at closely are named in this article.

Hub24 Ltd (ASX: HUB)

The first ASX share I would buy is Hub24.

Hub24 is one of the standout platform businesses on the ASX. It provides technology that helps financial advisers manage client portfolios, administration, reporting, and investment access.

What I like about Hub24 is that it sits behind the scenes in a large and growing wealth industry.

Australians are building wealth through superannuation, property, shares, inheritance, and retirement savings. Many people need advice as their financial lives become more complicated. Advisers, in turn, need better systems to serve clients efficiently.

That is where Hub24 has been winning.

The company has built a strong reputation for service, functionality, and innovation. Once advisers use a platform and build client processes around it, those relationships can become hard to shift.

Hub24 will still be affected by market movements, as weaker share markets can reduce funds under administration. But over the long term, I think the shift toward modern investment platforms remains very attractive.

Codan Ltd (ASX: CDA)

The second ASX share I would consider is Codan.

Codan is an interesting mix of businesses. It is known for metal detection through Minelab, but it also has a growing communications and technology side through Zetron and Domo Tactical Communications.

That combination gives investors exposure to more than one theme.

Minelab can benefit when gold prices are strong and demand for gold detectors improves. But the communications side is increasingly important, particularly in areas such as public safety, defence, security, and mission-critical communications.

I like Codan because it has a history of finding specialist markets and building strong positions inside them.

It is not trying to be everything to everyone. It makes products for customers that need reliability in difficult environments. That can create pricing power and brand strength if the technology performs well.

The share price can be cyclical, especially because gold detector demand can move around. But I think Codan’s broader technology base gives it a stronger long-term story than the market sometimes appreciates.

Commonwealth Bank of Australia (ASX: CBA)

The third ASX share I would buy is Commonwealth Bank of Australia.

CBA remains the highest-quality major bank in Australia in my view. It has enormous scale, a powerful deposit base, strong digital capability, and deep customer relationships.

The recent share price weakness has made the buying case more appealing.

CBA is still not a bargain-basement stock, and investors are usually asked to pay a premium for its quality. But I think that premium is understandable.

The bank has a long record of generating strong profits, paying large fully franked dividends, and maintaining a strong position in home lending, deposits, and business banking.

The economic backdrop is more challenging now, with households dealing with cost-of-living pressure and interest rates. That could keep bank shares volatile.

But if I were investing for the next five to 10 years, CBA is the kind of blue-chip share I would be comfortable holding through the cycle.

Foolish takeaway

For me, the appeal of these three ASX shares is that each has a clear reason to exist in a long-term portfolio. They are not chasing the same opportunity, and they are not all exposed to the same risks.

In a market that can swing quickly from optimism to caution, I think shares like these are worth considering.

The post Where I’d invest $5,000 in ASX shares this week appeared first on The Motley Fool Australia.

More reading

• How many CBA shares do I need to buy for $10,000 of passive income?
• Thinking about dividend yields? Here’s how much the top 10 ASX 200 shares pay
• This red-hot ASX 200 defence stock is rising again. Here’s why
• How to build a $20,000 ASX share portfolio with $100 a month
•  3 ASX shares that could be future blue chips

Motley Fool contributor Grace Alvino has positions in Codan, Commonwealth Bank Of Australia, and Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owning Commonwealth Bank of Australia (ASX: CBA) shares over the last 30 years has been a smart choice for passive income, with the dividend growing significantly in that time, and the bank typically delivering a solid dividend yield.

When I think about investing in ASX blue-chip shares, CBA is one of the names that spring to mind because of its market-leading position, its ability to regularly grow earnings, and its usually growing dividend.

In the past, I’ve come across people who received several thousand dollars of annual dividends from Commonwealth Bank. They lacked portfolio diversification, but the long-term investment returns from the ASX bank share were compelling.

Commonwealth Bank remains a solid business, though I wouldn’t advocate for any investor to have CBA be a majority of their portfolio or dividend income.

So, assuming CBA shares wouldn’t be a massive percentage of the portfolio, let’s take a look at what it would take to unlock $10,000 of passive income through owning CBA shares.

Potential Commonwealth Bank dividend income

According to the independent forecasts on CommSec, the business is projected to increase its payout in FY26 and then again in FY27.

Starting with the projection for the 2026 financial year, owners of CBA shares are estimated to receive an annual dividend per share of $5.15 – that would represent year-over-year growth of 6.2%. It would also be a grossed-up dividend yield of approximately 4.5%, including franking credits, at the time of writing.

Investors may be even more interested in the possible payout for the 2027 financial year. The annual dividend per share is projected to be $5.45 per share, which is a forecast year-over-year rise of 5.8%. That annual payment would represent a grossed-up dividend yield of 4.8%, including franking credits.

$10,000 passive income goal

Using the $5.15 forecast payment for FY26, and ignoring the franking credits, an investor would need to own 1,942 CBA shares for $10,000 of annual passive income.

But, if we look ahead to FY27’s potential payout of $5.45, an investor would only need to own 1,835 CBA shares.

Is this a good time to invest in CBA shares?

According to the CommSec collation of analyst opinions on the ASX bank share, it’s not a good time to invest.

Of 16 analyst ratings tracked by CommSec, only two of them were holds, and the rest were sell ratings.

That’s not a good outlook for strong returns, so it could be wise to look at other ideas.

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

More reading

• Thinking about dividend yields? Here’s how much the top 10 ASX 200 shares pay
• How to build a $20,000 ASX share portfolio with $100 a month
• Here’s a 9% ASX dividend stock to consider for a monthly passive income
• If you invested $10,000 in CBA shares a decade ago, here’s what it would be worth now
• 3 ASX stocks expected to increase their dividends in 2026

Motley Fool contributor Tristan Harrison 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.

Experts say proposed changes to capital gains tax (CGT) may prompt investors to prioritise ASX dividend yields over growth.

That means ASX dividend shares may become more interesting than growth stocks if the CGT changes get through Parliament.

In a recent newsletter, private wealth and investment advisory firm, Medallion Financial Group, said:

At a high level, the changes tilt the playing field toward yield. If a larger portion of capital gains is taxed away, the after-tax return profile of growth assets; equities, start-ups, and expansionary investments becomes less compelling.

In contrast, income streams such as dividends retain their relative appeal, particularly where they are franked.

The most reliable dividend yields come from ASX 200 large-cap shares.

Large caps have a minimum market capitalisation of $10 billion. They are our biggest and most established listed companies.

They typically offer high dividend payout ratios because they are long-standing, well-established businesses with reliable profits.

At the top of the ASX 200 today is a mix of bank shares, mining shares, property shares, and others.

Let’s take a look at the current trailing dividend yields of the top 10 ASX 200 shares today.

Dividend yields

ASX 200 rank	Company	Trailing dividend yield	Typical franking level	Gross yield (including franking)
1	BHP Group Ltd (ASX: BHP)	3.31%	100%	4.73%
2	Commonwealth Bank of Australia (ASX: CBA)	3.02%	100%	4.31%
3	Westpac Banking Corporation (ASX: WBC)	4.24%	100%	6.06%
4	National Australia Bank Ltd (ASX: NAB)	4.51%	100%	6.45%
5	ANZ Group Holdings Ltd (ASX: ANZ)	4.7%	70%-75%	6.16%
6	Macquarie Group Ltd (ASX: MQG)	2.91%	35%	3.35%
7	Wesfarmers Ltd (ASX: WES)	3.38%	100%	4.84%
8	Rio Tinto Ltd (ASX: RIO)	3.24%	100%	4.63%
9	Fortescue Ltd (ASX: FMG)	5.62%	100%	8.02%
10	Goodman Group (ASX: GMG)	0.97%	0%	0.97%

Things to consider

A company’s trailing dividend yield is calculated by dividing its total dividends (usually two) paid over the past 12 months by the current share price and multiplying by 100.

This means trailing dividend yields are based on the previous year’s income and do not account for this year’s market conditions.

For example, the impact of the global oil shock, which is raising input costs for many companies right now, is not reflected in current trailing dividend yields. Those rising costs today may reduce the dividend amounts some companies can pay over the next year.

So, use trailing dividend yields as a guide, not a guarantee, of future dividend income.

The post Thinking about dividend yields? Here’s how much the top 10 ASX 200 shares pay appeared first on The Motley Fool Australia.

More reading

• How many CBA shares do I need to buy for $10,000 of passive income?
• How big will the BHP dividend be in 2027?
• 5 ASX retail shares whose 12-month price targets just got slashed
• Why Appen, Guzman Y Gomez, Monadelphous, and PMET shares are racing higher today
• Up 72% in a year, Monadelphous just scored another win

Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Macquarie Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended BHP Group, Goodman Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) has long been one of the most popular ASX dividend shares with income investors.

That is not hard to understand. The Big Australian is one of the world’s largest mining companies, has exposure to major commodities such as iron ore and copper, and has rewarded shareholders with some very large dividends over the years.

The BHP dividend

The BHP dividend can move around more than those of many defensive income shares.

This is because its earnings are heavily influenced by commodity prices, exchange rates, operating costs, and global demand conditions.

But that has not stopped investors from being drawn to the stock. When times are good, BHP can generate enormous cash flows. And because its dividends are usually fully franked, they can be particularly attractive to Australian investors seeking income.

So, how big could the BHP dividend be in 2027?

BHP dividend forecasts

Based on current consensus forecasts, BHP is expected to pay fully franked dividends of $1.91 per share in FY 2026.

After that, the market is expecting the mining giant to pay a slightly lower dividend of $1.80 per share in FY 2027.

This means that, based on the latest BHP share price of $59.75, investors would be looking at a forward fully franked dividend yield of approximately 3% for FY 2027.

Looking a little further ahead, the market is then forecasting a dividend of $1.95 per share in FY 2028. That would represent a fully franked dividend yield of approximately 3.3%.

These dividend yields are not as high as some income investors may have seen from BHP in recent times, but that’s because its shares have been very strong performers and recently reached a record high.

In addition, investors should remember that these are only forecasts. If iron ore or copper prices move materially, BHP’s earnings and dividends could look quite different by the time FY 2027 arrives.

Should you buy BHP shares?

BHP remains a high-quality mining giant with world-class assets and exposure to long-term demand themes, particularly through copper and the minerals needed for electrification and infrastructure.

However, after a strong run in its share price, many analysts appear to believe the stock is broadly fair value at current levels.

Morgan Stanley is more positive. Earlier this month, the broker put an overweight rating and $67.50 price target on BHP shares.

That implies potential upside of approximately 13% from where BHP ended the week.

The post How big will the BHP dividend be in 2027? appeared first on The Motley Fool Australia.

More reading

• How to build a $20,000 ASX share portfolio with $100 a month
• Here’s a 9% ASX dividend stock to consider for a monthly passive income
• The top 3 Betashares ASX ETFs over the past year
• 5 things to watch on the ASX 200 on Friday
• Why CBA shares might never retake the biggest ASX stock crown from BHP

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.