Author: openjargon

ASX blue-chip shares can be a great source of passive income, if we choose the right ones. For me, it’s about more than just what the dividend yield is.

I want to consider businesses that I am confident can deliver resilient payouts. Plus, I prefer ASX blue-chip shares with tailwinds that can enable them to increase their payouts over time.

The below two businesses offer pleasing diversification, a high level of passive income and potential growth. Let’s dive in.

Charter Hall Long WALE REIT (ASX: CLW)

This business is a real estate investment trust (REIT) that owns a diversified portfolio of commercial properties across Australia.

Its portfolio spans government-related buildings (such as Geosciences Australia in Canberra), pubs and hotels, grocery and distribution, telecommunication exchanges, service stations, food manufacturing, waste and recycling, Bunnings properties and plenty more.

I think this ASX blue-chip share’s $6 billion portfolio is very attractive and offers more diversification than any other ASX-listed property investment.

But it’s not just diversification that makes this a good investment – the business also has built-in rental indexation with its tenants. The rent is either growing in line with inflation or at a fixed annual rate.

In the first half of FY26, the business saw 3% growth of like-for-like property income. This allows the business to hike its FY26 annual distribution by 2% to 25.5 cents per unit. That translates into a dividend yield of 7%. That’s a great yield in my book.

It looks great value to me considering it’s trading at a 22% discount to the net tangible assets (NTA) of $4.68 at 31 December 2026.

WAM Leaders Ltd (ASX: WLE)

The other idea I want to tell you about is this listed investment company (LIC) which largely focuses on ASX blue-chip shares with an active management strategy.

That strategy of buying when prices are lower and selling when prices are higher has helped the team at WAM Leaders portfolio outperform the S&P/ASX 200 Accumulation Index (ASX: XJO) by an average of close to 3% more per year since the LIC’s inception in 2016, before fees, expenses and taxes.

By focusing on high-quality businesses, WAM Leaders can produce good returns in most economic conditions.

At the end of June 2026, some of its largest positions included Wesfarmers Ltd (ASX: WES), Woodside Energy Group Ltd (ASX: WDS), Stockland Corporation Ltd (ASX: SGP), Scentre Group (ASX: SCG), Nexgen Energy (Canada) CDI (ASX: NXG), Goodman Group (ASX: GMG), Charter Hall Group (ASX: CHC), Amcor CDI (ASX: AMC) and Ampol Ltd (ASX: ALD).

As you can see, it’s a portfolio full of ASX blue-chip shares.

The business has increased its annual payout each year since FY17, showing it has a great track record of providing rising dividends for investors.

It expects to pay an annual dividend per share of 9.6 cents in FY26, which translates into a forward grossed-up dividend yield of 9.8%, including franking credits, at the time of writing.

These aren’t the only ASX shares I’d buy for income, but they are among the ones I’d be very happy to buy for my portfolio.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

More reading

• How much passive income can I earn off a $50,000 portfolio?
• How to build a successful ASX dividend portfolio
• 2 leading ASX blue-chip shares experts think are buys
• How much do I need in my superannuation to get $52,000 per year in passive income?
• 5 top ASX dividend shares to buy in July

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 positions in and has recommended Goodman Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended 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.

Ballard Mining Ltd (ASX: BM1) has been delivering some encouraging exploration results recently, and the gold company’s story has piqued the interest of the analysts at Moelis Australia, who have just initiated coverage of the stock.

Moelis has a bullish share price target on the company’s shares, which we’ll get to shortly.

First, let’s look at the company’s recent announcements.

ASX gold company delivering with exploration success

Ballard in mid-June said in a statement to the ASX that it had made a new gold discovery north of its Baldock deposit.

The new Pluto discovery included intersections, including 5m at 10.2 grams per tonne of gold from 98m, and 7m at 3.7 grams per tonne from 19m.

Ballard also extended its Ayla discovery by 200m and returned more good results from its Neptune discovery.

Just a week later, the company reported more high grade results at Baldock outside of the current one million ounce resource.

Ballard Managing Director Paul Brennan said at the time:

This is a very exciting development for Ballard. These results have the potential to add a material resource uplift to the existing base load +1 Moz Baldock deposit. The Company’s CY2026 exploration program is currently optimised towards near-term development rather than fully testing the potential of the system. These results continue to reinforce our belief that Mt Ida is potentially a camp scale project that has been historically under-explored. As we work through the remainder of our planned drilling for this calendar year, our focus is on identifying the next 1 Moz at Mt Ida.

Shares looking like good value

Moelis said in its report on Ballard that the Australian gold sector was maturing, and it was turning its focus to companies further down the development curve.

Moelis said regarding Ballard:

The key tenements are already mine permitted, and studies are well advanced around the potential to develop a new gold mining operation capable of operating in excess of 8 years producing an initial 80koz Au annually. While very early stage, our modelling suggests total capital of approximately A$270m to establish an operation with competitive industry cash costs (aided by high grade underground ore feed).

Moelis said, on current timelines, the company could be in a position to formally commit to funding and development by the end of FY27, enabling first production at the start of FY29 via an open-pit mine, followed by an underground operation from CY30.

Moelis added:

In our view the exploration potential of the region is significant and could aid both higher production run rates or longer mine life with further discovery.

Moelis has a price target of 90 cents on Ballard Mining shares compared to 63.5 cents at the time of writing.

The post This ASX gold stock could jump more than 40%: Broker appeared first on The Motley Fool Australia.

More reading

• How to invest $20,000 in ASX ETFs in July
• How much passive income can I earn off a $50,000 portfolio?
• Up almost 50%, is it too late to buy BHP shares?
• Forget CBA shares, this ASX financials stock has strong momentum heading into FY27
• After soaring 9% yesterday, is this ASX stock a buy, hold or sell?

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.

A $20,000 investment can go a long way with ASX exchange-traded funds (ETFs).

I would use it to build a portfolio that is simple enough to hold, but still has enough variety to feel well balanced.

The four ETFs below would give me global reach, Australian exposure, US market strength, and a small tilt toward one long-term growth theme.

Here is how I would split the money in July.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

I would put the largest part of the $20,000 into this Vanguard ETF.

The reason is simple: it gives me exposure to a wide range of large companies across developed markets outside Australia.

That can be valuable for Australians because our local market is relatively small. Many of the world’s biggest healthcare, technology, industrial, consumer, and financial businesses are listed overseas.

This fund gives investors a way to own a slice of that global business machine without trying to pick each company individually.

I also like it as a core holding because it can quietly do its job in the background. Some years will be strong, others will be weaker, but a broad international ETF can help investors stay connected to global earnings growth over the long term.

Betashares Australian Quality ETF (ASX: AQLT)

I would still want some local exposure. But rather than simply buying the whole Australian market, I would consider this Betashares ETF because it focuses on quality companies.

The fund’s index looks for businesses with high returns on equity, lower leverage, and steadier earnings.

I like that because the Australian market can be heavily influenced by banks and resources shares. I like the idea of taking a more selective approach and focusing on companies with stronger financial characteristics.

This ETF could still fall when the ASX is weak. But over the long term, I think quality filters can help investors avoid some of the weaker parts of the market.

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

This iShares ETF would give the portfolio an extra tilt toward the US share market.

While the first ETF already has some US exposure, I would still be comfortable adding this fund because Wall Street remains home to many of the world’s most dominant companies.

The S&P 500 is not just a technology story. It includes businesses across healthcare, payments, consumer products, manufacturing, financial services, software, and other areas.

What I like is the depth of the market. The US has a long record of producing companies that can scale globally, reinvest heavily, and become more valuable over time.

Betashares Global Cybersecurity ETF (ASX: HACK)

The final part of the $20,000 would go into a more focused ETF.

Cybersecurity is one of those areas that feels increasingly tied to how the modern economy works. Companies, governments, hospitals, banks, retailers, and households all rely on digital systems that need protection.

That creates demand for businesses involved in security software, threat detection, identity protection, cloud security, and related services.

This Betashares ETF is more targeted than the others, so I would keep the allocation smaller. Further, the share prices of cybersecurity companies can be volatile, especially if valuations become stretched.

Even so, I like the idea of having a small position in a theme that could remain important for many years.

Foolish takeaway

If I were investing $20,000 into ASX ETFs in July, I would focus most of the money on broad exposure and then add a couple of deliberate tilts.

The aim would be to own a portfolio that can grow with global markets, include some local quality, and capture a small slice of a powerful digital security trend.

I would not overcomplicate it.

A mix like this could give investors plenty of diversification while still making the portfolio feel purposeful. For me, that is exactly what a long-term ETF portfolio should do.

The post How to invest $20,000 in ASX ETFs in July 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 BetaShares Global Cybersecurity ETF and iShares S&P 500 ETF. The Motley Fool Australia has recommended 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.

Passive income is a great way for investors to build financial security, benefit from compounding, and create another income stream without working any extra hours.

The error that many investors make is thinking they need a million dollar investment portfolio to make it worth it.

The truth is, you don’t need to spend millions, or even hundreds of thousands. Any level of passive income can help contribute to your financial independence and also create a buffer against sharemarket volatility.

So, what could that passive income actually look like?

Let’s break it down, using a $50,000 investment portfolio as an example. 

What passive income can I earn off a $50,000 portfolio?

The easiest way to calculate your passive income is by multiplying your total portfolio value by your dividend yield.

But, the tricky part is that the answer varies widely depending on the dividend yield of your portfolio.

For example, $50,000 x 3% = $1,500 per year in dividend payments.

But if your portfolio has a dividend yield of around 6%, your passive income will be double the size. That’s because $50,000 x 6% = $3,000 per year in dividend payments. 

And so on. As your dividend yield increases, the passive income you can earn off your $50,000 portfolio also increases.  

These figures are based on cash dividends before any tax or franking credit benefits.

Of course, this type of money isn’t going to become a primary income stream, but it’ll certainly help create an extra buffer.

Which ASX shares will earn me $2,000 per year in passive income?

To earn an annual passive income of around $2,000, your portfolio will need to yield around 4%.

There is a huge range of ASX dividend shares available that pay around that level, so it’s certainly achievable.

For example, Argo Investments (ASX: ARG) pays just a little over the 4% mark at the time of writing. As does WCM Global Growth (ASX: WQG).

Major bank Westpac Banking Corp (ASX: WBC) pays a dividend yield of around 4.2% to its shareholders.

ANZ Group Holdings Ltd (ASX: ANZ) and Transurban Group Ltd (ASX: TCL) both pay a little more. Their dividend yields are around 4.6% and 4.7%, respectively.

Of course, ideally, you’d want a mixture of shares that combine to make a 4% yielding portfolio for diversification reasons, rather than a portfolio of only one stock.

What if I want to earn closer to $4,000 per year? Is that possible?

It’s also possible to earn a little more. To earn $4,000 in passive income, you’d need a portfolio that yields 8%. 

Again, there are plenty of ASX shares that yield around this level, but it’s worth noting that a higher yield generally comes with higher risk.

The Metrics Income Opportunities Trust (ASX: MOT) is a listed investment trust (LIT) which can give investors direct exposure to private credit investments. The Trust targets a cash yield of 7% per year. It has a total target return of 8% to 10% per year, net of fees and expenses. 

Charter Hall Long WALE REIT (ASX: CLW) and WAM Microcap (ASX: WMI) both yield in the low 7%.

And if you’re looking to target higher-yielding ASX shares, there are stocks like intellectual property (IP) service provider IPH Ltd (ASX: IPH), which yields around 9.6% and Centuria Office REIT (ASX: COF), which yields around 11.4%, at the time of writing.

Again, I wouldn’t suggest investing solely in high-yield shares in order to earn a higher income. But it’s possible to create a portfolio mix including high-yield ASX shares and more reliable or defensive assets to get an over 8% yielding portfolio. 

The post How much passive income can I earn off a $50,000 portfolio? appeared first on The Motley Fool Australia.

More reading

• ANZ, NAB, Westpac and CBA shares: Brokers rate 2 a sell, and 2 a hold
• Here’s the earnings forecast out to 2027 for ANZ shares
• How to build a successful ASX dividend portfolio
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• 2 ASX shares with dividend yields above 9.5%

Motley Fool contributor Samantha Menzies 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 Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended IPH Ltd. 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) shares have been one of the stronger blue-chip performers over the past year.

That’s great for shareholders. But after this big move higher, is the mining giant still worth buying?

I think the answer is yes, but the case is very different from a year ago.

The easy bargain has passed

BHP shares are trading around $58.71, up almost 50% over the past 12 months.

That is a huge move for a company of this size. Investors who bought near the lows have already done very well.

So, I would not call BHP a bargain today in the same way it was when the market was more pessimistic. But I still think the shares offer reasonable value.

According to CommSec consensus estimates, BHP is expected to generate earnings per share of $3.56 in FY26 and $3.77 in FY27.

Based on the current share price, that puts the stock on a price-to-earnings ratio of around 16.5 times FY26 earnings and 15.6 times FY27 earnings.

That does not look demanding to me for a world-class resources business with long-life assets and exposure to commodities that could remain important for decades.

The dividend profile is also attractive. CommSec estimates dividends per share of $2.10 in FY26 and $2.06 in FY27, implying forward dividend yields of around 3.6% and 3.5%.

Why I still like BHP shares

The main reason I would still buy BHP is that the company is evolving.

Iron ore remains a major part of the business, and it will likely continue driving a large share of earnings for some time. But I think the long-term investment case is becoming broader.

Copper is the key one for me. The world is likely to need more copper for electricity networks, data centres, renewable energy, electric vehicles, industrial development, and general infrastructure. It is difficult to see how many of those trends grow without significantly more copper supply.

BHP already has strong copper exposure, and I think that part of the business could become increasingly important over the next decade.

The company is also expanding into potash through its Jansen project in Canada. That adds another long-term growth option tied to food production and agricultural productivity.

Mining projects can be expensive, slow, and difficult. Capital discipline still needs watching. But I like that BHP is positioning itself beyond just the next iron ore cycle.

Why resources exposure can help

The past year is a good reminder of why resources exposure can play a role in a diversified ASX portfolio.

Since July 2025, the S&P/ASX 200 Resources index (ASX: XJR) is up 38%, while the broader ASX 200 is up just 2.8%.

That gap is significant.

Resources shares can be volatile, and they often move for reasons outside a company’s control, including commodity prices, China demand, currency moves, and global growth expectations.

But that is also why they can add something different to a portfolio.

When resources are performing well, they can provide a source of returns that may look very different from banks, supermarkets, healthcare shares, or technology companies.

Foolish takeaway

I do not think it is too late to buy BHP shares.

The easy bargain has passed, and investors today are paying a much higher price than they were a year ago.

Even so, the valuation still looks reasonable to me, the forecast dividend yield is solid, and the company has exposure to commodities that could become more valuable over the next decade.

The post Up almost 50%, is it too late to buy BHP shares? appeared first on The Motley Fool Australia.

More reading

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• How much superannuation do you need to earn $5,000 a month in passive income?
• Should you buy BHP shares FY27? Here’s what experts are saying
• Do you want to earn passive income from your superannuation? Here’s a guide to get you started
• Top brokers name 3 ASX shares to buy next week

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 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.

While many of the biggest ASX financials stocks have seen slow growth in 2026, Cuscal Ltd (ASX: CCL) has brought strong returns.

The S&P/ASX 200 Financials Index (ASX: XFJ) is up just over 2% year to date. 

Meanwhile, Cuscal shares have risen over 10% in the same span and over 52% in the last 12 months. 

What does Cuscal do?

Cuscal is a payment and regulated data services provider in Australia. 

The group offers a comprehensive suite of payment infrastructure solutions to a diversified client base. 

It enables a range of payment types, from physical cards to real-time payments, in the payment value chain and constantly evolves its offerings to meet the demands of a rapidly changing economy.

In the last 12 months, it has risen significantly on the back of a solid, growing business in a hot sector (digital payments). It has also been spurred on by strategic acquisitions and delivering the profit growth to back it up. 

Why it can continue 

A recent report from Ord Minnett has reinforced that there is still plenty of room for growth remaining. 

Ord Minnett said Cuscal’s share price has been supported by improved earnings momentum. This has been aided by the two strategically important acquisitions of Indue and Paymark. 

In addition, the FY26 price-to-earnings (P/E) multiple that investors have been willing to apply to Cuscal’s earnings has risen 21x from 11x at the time of the IPO to 21x currently. We see a forward P/E multiple of 18–20x as appropriate,given Cuscal’s strong defensive earnings growth outlook and B2B infrastructure positioning in the payments industry.

We expect FY26 results to beat market expectations, with net operating income (NOI) boosted by ongoing solid transaction volume growth and strong client deposit balances driving net interest income. Company guidance is for “mid-teens” underlying net profit growth in FY26, with Ord Minnett estimating growth of 16.8%.

Upside remains for this ASX financials stock 

‍Looking ahead, Ord Minnett believed the FY27 result will be underwritten by the contributions from Indue & Paymark. It projects further growth into FY29–30 as Cuscal banks the cost savings and other synergies from the acquisitions, and the outlook supports expectations for sustainable underlying net profit growth of 15–20% per annum. 

Based on this guidance, Ord Minnett has retained its buy recommendation on this ASX financials stock.

It has also retained its target price of $5.45.

From yesterday’s closing price of $4.89, this indicates a healthy upside of over 11%. 

The post Forget CBA shares, this ASX financials stock has strong momentum heading into FY27 appeared first on The Motley Fool Australia.

More reading

• How much passive income can I earn off a $50,000 portfolio?
• Up almost 50%, is it too late to buy BHP shares?
• After soaring 9% yesterday, is this ASX stock a buy, hold or sell?
• Top broker tips 47% upside for this ASX financials stock 
• How much do I need in superannuation to receive $6000 per month in passive income?

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.

Mayfield Group Holdings Ltd (ASX: MYG) shot ahead of the ASX yesterday when it rose 9% in a single session. 

This brings its 12-month growth spree to over 152%. 

Despite already rising significantly this past year, the team at Bell Potter still believes there is more room for growth. 

Why did Mayfield Group shares rise?

Mayfield Group provides communication network solutions to government agencies, military organisations, and corporate clients

It appears Mayfield Group is enjoying strong investor interest following its announcement on July 13. 

The company  has entered into a binding Asset Sale Agreement to acquire Switchboards Division of Nilsen (SA) Pty Ltd (SDN), including its N-Series product line and associated intellectual property for a $4.0m cash consideration. 

The acquisition consideration will be funded from existing cash reserves. The deal is expected to complete on 31 July 2026, with progressive transfer of employees and assets through to 31 October 2026. SDN supplies products into the Commercial, Industrial, Infrastructure, Defence, Mining, Utilities and Data Centre construction markets.

In simple terms, Mayfield is spending $4 million to buy Nilsen’s switchboard business. 

This includes its products, skilled employees, customer orders, and technology to grow its sales, strengthen its manufacturing business, and increase future earnings.

What did Bell Potter have to say?

Following the announcement, Bell Potter provided updated guidance on this ASX stock. 

The broker said the move broadens Mayfield’s switchboard offering across key growth markets in Australia. 

It also strengthens the company’s ability to grow organically through an expanded workforce, IP and new customer relationships. Additionally, it enables the company to pursue larger and more diverse switchboard opportunities nationally.

The acquisition includes the transfer of $3.9m of WIH and is expected to add $10-15m of revenue in FY27 (effective November 2026; $15-23m annualised). Importantly, improved utilisation at the Royal Park facility should enhance site profitability.

Healthy upside 

Based on this guidance, the team at Bell Potter retained its buy recommendation on this ASX stock. 

However, it slightly lowered its price target to $3.20 (previously $3.40). 

From yesterday’s closing price of $2.41, this still indicates 32% upside. 

The SDN acquisition is strategic, supporting MYG’s expansion into new markets and with new customers. The acquisition consideration is not onerous; MYG maintains financial flexibility to continue pursuing other M&A opportunities.

We believe this valuation rebasing has created a good buying opportunity of a small-cap industrial business which we expect to deliver EPS growth of 36.7% in FY27 and 27.5% in FY28, and has strong upgrade potential.

The post After soaring 9% yesterday, is this ASX stock a buy, hold or sell? appeared first on The Motley Fool Australia.

More reading

• How much passive income can I earn off a $50,000 portfolio?
• Up almost 50%, is it too late to buy BHP shares?
• Forget CBA shares, this ASX financials stock has strong momentum heading into FY27
• Top broker tips 47% upside for this ASX financials stock 
• How much do I need in superannuation to receive $6000 per month in passive income?

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 recommended Mayfield Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A new report from the team at Bell Potter has tipped big upside for ASX financials stock COG Financial Services Ltd (ASX: COG). 

COG Financial Services is a collection of distribution businesses focused in Australia.

It provides access to credit (and related insurance) for commercial assets through a broker network and maintains the balance sheet capacity to fund direct originations, capturing some overflow on non-prime chattel mortgages. 

The acquisition of Paywise in 2023 marked a shift in the expansion and capital recycling approach, with greater strategic focus on novated leasing.

Year to date, its share price has fallen 30%, however Bell Potter is tipping a strong rebound in the next 12 months. 

Novated leasing 

Bell Potter highlighted that June was a record month for novated lease vehicle sales. 

Private buyers were up 11%, and business buyers were up 6%, even despite interest rates staying high. 

Some of this comes from normal seasonal price cuts, but carmakers also ran extra discounts through specific sales channels. 

Bell Potter expects this ASX financials company to sound upbeat about this part of the business, since electric vehicles’ share of sales jumped from 10% to 24%, marketing campaigns are working well, and BYD is running fresh cashback deals for specific orders placed in July and delivered by August.

In short, the company’s car-leasing business (novated) looks strong going into the results, driven by EV demand and discounts.

Broking 

The report from Bell Potter said ABS data on business investment won’t be released before COG reports its results. 

Therefore Bell Potter is basing its view on the broader weak economy and high interest rates, which are expected to weigh on the broking side of the business. 

Small business confidence is poor, having dropped sharply in March with little recovery since. Business investment plans hit a record low in April. 

On top of that, profit margins on loans keep shrinking, while loan volumes are actually rising. This pushes up the cost of running this part of the business.

Big upside in tact for this ASX financials stock 

Despite the mixed outlook, recent share price weakness makes this ASX financials stock an attractive proposition. 

Bell Potter has retained its buy recommendation and has an updated price target of $2.10. 

From yesterday’s closing price of $1.425, this indicates an upside potential of 47%. 

Recent commitment from government has extended the adjustment on electric vehicles and made this measure permanent. We see this as a multi-year-outcome, enhanced through successful tendering.

The post Top broker tips 47% upside for this ASX financials stock  appeared first on The Motley Fool Australia.

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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.

Investing money into your superannuation is for many Australians a great, tax-effective way to build wealth.

The downside is that the funds are locked away until we hit at least 60 years of age, but for those who start early, the magic of compound interest can build a substantial nest egg.

Superannuation calculations can help achieve your goal

So, how much superannuation do you need? That’s obviously a very subjective question, but the Association of Superannuation Funds of Australia (ASFA) has pegged the number at $55,923 per year for singles and $78,566 per year for couples for what they have determined to be a comfortable retirement.

ASFA’s numbers also assume the retiree owns their own home.

Today, I’m looking at how much superannuation is needed to support $6000 per month in passive income, which equates to $72,000 per year, well above the comfortable benchmark.

How much money you’ll need in your superannuation to generate this amount depends on the income stream you can depend on from your portfolio – assuming you don’t sell down any shares to generate income.

If you can generate a 7.2% return, you’d need $1 million worth of investments.

While this might sound like a high return, remember that superannuation funds benefit from franking credits – in lay terms, they are paid back the tax already paid by a company on its earnings.

If you generate just a 5% return on your investments, you’d need $1.44 million in superannuation savings, while if you were able to generate 10% returns, the figure drops to just $720,000.

How much can be generated from superannuation savings?

I would argue that it is possible to put together a diversified portfolio that can consistently generate returns of about 7%.

In terms of stocks to buy, there are some income-focused funds and exchange-traded funds that might be worth a look.

For example, WAM Active Ltd (ASX: WAA) just this week announced it had a stellar year, and declared a special dividend on top of its final dividend, which the fund said in a statement to the ASX would bring its fully-franked dividend yield to 8.6% and its grossed-up dividend yield to 12.3%.

On the ETF front, there are products such as the Betashares Global High Dividend Aristocrats ETF (ASX: INCM), which pays a quarterly dividend and, for the July quarter, paid out 5.74%.

There is also the S&P/ASX 200 Covered Call Complex ETF (ASX: AYLD), which uses a more complex strategy to deliver high yields, paying 9.64% over the past 12 months, albeit only franked at 15.3%.

There are also traditional stocks which pay strong dividends, including Fortescue Ltd (ASX: FMG) at 6.49%, Woodside Energy Group Ltd (ASX: WDS) at 5.63%, and on the lower but dependable end, Telstra Group Ltd (ASX: TLS) at 4.01%.

The post How much do I need in superannuation to receive $6000 per month in passive income? appeared first on The Motley Fool Australia.

More reading

• How to build a successful ASX dividend portfolio
• How much superannuation do you need to earn $5,000 a month in passive income?
• Here are the top 10 ASX 200 shares today
• With Hormuz closed, is there an opening to buy Woodside shares?
• This fund’s 75% return smashed its benchmark, and it’s celebrating with a special dividend

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

A new report from VanEck has highlighted the impressive resilience of the Australian market in recent years. 

It has weathered the pandemic, inflation and the fastest interest-rate tightening cycle in decades without falling into recession.

However VanEck believes this resilience should not be mistaken for strength. 

While inflation has eased from its peak, underlying price pressures remain among the highest in the developed world, business hiring intentions are softening and consumer confidence remains subdued. Together, they point to an economy that is slowing rather than stalling.

This combination of factors reinforces that investors’ portfolios should not be overexposed to the big banks and miners that dominate the ASX 200. 

VanEck contends that there are several reasons investors should look beyond simply tracking the S&P/ASX 200 Index (ASX: XJO). 

Trailing global equities

VanEck argues that simply buying the index is not always the most effective way to build wealth. 

The past financial year has brought this case to the fore more than ever.

Since the start of 2010, the S&P/ASX 200 has trailed the MSCI World, which tracks developed markets globally, in 11 of the past 17 financial years.

But the bigger concern is that the underperformance is getting worse. FY26 saw the underperformance run extend to four consecutive years, and the second biggest performance gap since 1996.

If Australia’s economy is entering a period of more subdued growth, investors should not be surprised if earnings growth becomes harder to find domestically. That strengthens the case for looking beyond a standard S&P/ASX 200 index fund.

The case for mid-caps 

According to the report, one option for investors looking to avoid overconcentration is to target mid-caps. 

One way to do this is through the VanEck S&P/ASX MidCap ETF (ASX: MVE). 

The fund focuses on Australia’s mid-cap companies, a part of the market that has historically offered an attractive balance between earnings growth and business maturity.

VanEck believes this could be a “sweet spot” of the market. 

They are typically more established than emerging small companies but still have meaningful scope to grow earnings. Analysts expect company profits in this part of the market to grow much faster than Australia’s largest companies, while valuations are still around their long-term averages.

MVE provides exposure to this often-overlooked part of the market through the S&P/ASX MidCap 50 Index. For investors looking to complement a large-cap Australian allocation, it offers access to businesses with greater growth potential, without moving too far down the risk spectrum.

The post The growing case for ASX mid-caps: Expert appeared first on The Motley Fool Australia.

More reading

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• PLS shares are down 28%. Are they a buy, hold, or sell?
• Why are Light & Wonder shares flying 9% higher today?
• 4 ASX shares rated a strong buy and with upsides of up to 109%
• This ASX gold stock could jump 150%: Broker

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.