Author: openjargon

Economic changes in Australia over the past year have significantly changed the investment equation for some compelling ASX shares, with tax changes and higher interest rates.

Changes to negative gearing have made many residential property investments less compelling. Meanwhile, changes to the capital gains discount have made capital gains-focused investments a little less compelling too, when it comes time to sell that asset.

Therefore, commercial property with a focus on income returns could be an excellent buy, particularly following all of the interest rate rises this year, with the valuation discounts that have opened up with some ASX shares.

Four real estate investment trusts (REITs)

There are four REITs that are particularly attractive to me right now.

Two are focused on industrial properties – Centuria Industrial REIT (ASX: CIP) and Dexus Industria REIT (ASX: DXI). Industrial properties have tailwinds for demand like e-commerce adoption, data centres and onshoring of supply chains.

A third REIT I like is farmland owner Rural Funds Group (ASX: RFF). We all need food and the REIT has rental indexation built into its contracts.

The fourth REIT I really like is Charter Hall Long WALE REIT (ASX: CLW), a very diversified option that’s invested in a wide array of properties. It also has contracted rental growth, with fixed increases or rises linked to inflation.

Strong dividend yields

Consider this: many residential properties offer a negative net rental – also called negative gearing, including the likely interest payments. Commercial properties, on the other hand, have a very positive yield. It’s a clear win for income investors, in my view.

Each of the REITs has a dividend yield that’s competitive with or superior to that of term deposits (despite the higher interest-rate environment).

Based on their FY26 payouts, these are the current distribution yields for the ASX shares:

• Rural Funds has a 5.3% distribution yield
• Centuria Industrial REIT has a 5.6% distribution yield
• Dexus Industria REIT has a 6.6% distribution yield
• Charter Hall Long WALE REIT has a 6.9% distribution yield

Big discounts

One of the best reasons to like these REITs is that they are trading at a significant discount to their underlying value.

These ASX shares report a net asset value (NAV) or net tangible assets (NTA), which tells us what the net figure of the property valuations, the loans, cash and so on are worth.

They look great value compared to their December 2025 figures. Higher interest rates may have hurt investor confidence, but I believe that when interest rate cuts occur – possibly next year – this could push up the share prices again.

At the time of writing, these are the following discounts:

• Rural Funds is trading at a 28% discount
• Centuria Industrial REIT is trading at a 24% discount
• Dexus Industria REIT is trading at a 26% discount
• Charter Hall Long WALE REIT is trading at a 21% discount

At the current levels, I think all four could outperform the S&P/ASX 200 Index (ASX: XJO) over the next two to three years.

The post What’s not to love about these discounted ASX shares with big dividend yields? appeared first on The Motley Fool Australia.

More reading

• These ASX shares could generate $12,000 per year in passive income
• 3 ASX dividend shares to buy with 5%+ yields
• How much is needed in superannuation to target a $100,000 annual passive income?
• 2 ASX dividend shares with yields above 7%
• How much do I need in my superannuation to earn an annual $60,000 passive income?

Motley Fool contributor Tristan Harrison has positions in Rural Funds Group. 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 Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Every Aussie investor dreams of making an easy and consistent passive income.

And ASX dividend shares are a fantastic way to get you there.

The problem is that it can be difficult to work out exactly which shares to buy and how much to invest to get the passive income you want. 

To help, here’s a rundown of how to earn a passive income through ASX dividend shares, using $12,000 per year in passive income as an example.

What portfolio size do I need to get $12,000 per year in passive income from ASX shares?

To calculate the portfolio size you’d need to earn $12,000 per year in passive income, you’d need to divide your annual passive income figure by the dividend yield of your overall portfolio. 

So in this case, for example, $12,000 divided by a dividend yield of 3% is $400,000. This $400,000 figure is the portfolio size you’d need to earn this level of passive income each year.

The tricky part is that the answer varies widely depending on the dividend yield of the ASX shares you’d have in your portfolio. 

For example, a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of dividend income. 

How much do I need if my portfolio yields 4% to 8%?

We’ve already calculated (above) the balance you’d need to earn $12,000 off a 3% yielding portfolio.

To earn the same passive income off a 4% yielding portfolio, you’d need around $300,000.

Then, to earn $12,000 from a 5% yielding portfolio, it would need to be closer to $240,000.

If your portfolio has an overall dividend yield of around 6%, you’d need to invest closer to $200,000 to receive your $12,000 per year in passive income.

Your portfolio would only need to be around $171,500 to earn $12,000 if it had an overall yield of 7%.

Portfolios yielding 8% would need to be around $150,000 to earn the same $12,000 per year.

And so on. As your dividend yield increases, the portfolio size needed to earn the same level of passive income goes down.

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

Can’t I just invest in the highest-yielding stocks so I don’t need to put up as much money up front?

Technically, yes, but it would be a bad investment decision.

Generally, the higher yielding the ASX shares, the more risk they carry.

Instead, you’ll want to focus on creating a diversified portfolio. For example, you could split your portfolio so that around 70% is invested in mid-range yielding ASX shares, and the remaining 30% is invested in high-yield stocks or riskier shares.

I’d also look to buy ASX shares across multiple sectors to further diversify my portfolio.

It’s important to note that your passive income will likely fluctuate with the company’s profits and dividend decisions.

Give me some examples of passive-income earning ASX shares that yield around 3% to 6%

There is a huge range of ASX dividend shares available to buy, but here are a few of my favourites, currently yielding between 3% and 6%.

Investment banking business Macquarie Group Ltd (ASX: MQG) pays a dividend yield of around 2.7%.

Meanwhile, mining giant Rio Tinto Ltd (ASX: RIO) pays its shareholders a yield of around 3.6%, and Brambles Ltd (ASX: BXB) yields a little lower at around 3.4%. 

QBE Insurance Group Ltd (ASX: QBE) pays a yield around 4.4%, at the time of writing. ANZ Group Holdings Ltd (ASX: ANZ) yields close to 4.6%.

Woodside Energy Group Ltd (ASX: WDS) pays around a 5.4% dividend yield to shareholders. Meanwhile, packaging giant Amcor Ltd (ASX: AMC) pays closer to 6%.

… and some high-yield options around 7% or more

For higher yields, real estate investment trusts (REITs) are a great option because they still offer diversity across a range of assets or shares. Charter Hall Long WALE REIT (ASX: CLW) yields around 6.8% at the time of writing. 

Elsewhere, Wam Leaders (ASX: WLE) yields just shy of 7%, and Lendlease Group Ltd (ASX: LLC) yields around 7.8%.

The post These ASX shares could generate $12,000 per year in passive income appeared first on The Motley Fool Australia.

More reading

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• 3 ASX dividend shares to buy with 5%+ yields
• 2 ASX mining shares to sell: experts
• Could CSL shares double from here? Here’s what the experts think
• What is Morgan’s updated view on Rio Tinto and BHP shares?

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

The best money-saving techniques are the ones you can stick to for decades.

Building lasting wealth is rarely about a single big win, but rather about small, repeatable habits.

Do them consistently, and the results can be incredible.

Here are some of the best saving techniques to help you build long-term wealth.

Simple saving techniques that build wealth

Start by making your money work for you.

Move money into savings the day you get paid, before you spend a cent.

Automating this step removes willpower from the equation, and so when the transfer happens by itself, you never miss the money.

Next, get on top of the big three costs: housing, transport, and food.

These usually dwarf the small stuff like your morning coffee.

Trimming a large recurring bill saves you money every single month.

Similarly, refinancing a loan or renegotiating a plan can free up hundreds of dollars a year.

Another of the most effective saving techniques is tracking where your money goes. You cannot fix what you cannot see.

A simple spreadsheet or budgeting app will do the job. Review it once a month and look for leaks.

Finally, treat windfalls with care.

Tax refunds, bonuses, and pay rises are easy to spend away. Instead, directing even half of these windfalls to savings can accelerate your progress.

None of these steps requires a finance degree. They just require consistency.

Put your savings to work

Saving is only half the story.

Cash sitting idle in the bank slowly loses value to inflation.

To get a grip on inflation, the Reserve Bank of Australia held the cash rate at 4.35% in June 2026.

Although that is a reasonable return on savings, shares have historically returned more to ASX investors.

The S&P/ASX 200 Index (ASX: XJO) has delivered a long-term annualised return of roughly 8.2%, including dividends.

But what if you don’t know what to invest in? Low-cost index funds (or ETFs) are a simple way to capture market returns without having to do any of the heavy lifting.

Two examples of this are VAS and A200.

The Vanguard Australian Shares Index ETF (ASX: VAS) tracks the top S&P/ASX 300 Index (ASX: XKO) companies, whereas the BetaShares Australia 200 ETF (ASX: A200) tracks the largest 200.

Both charge tiny fees of 0.04% and can be bought in a single trade.

Reinvesting distributions from these funds, along with additional savings, lets compounding do the heavy lifting.

Over many years, that compounding effect can turn modest savings into serious wealth.

Foolish Takeaway

None of these saving techniques is complicated, which is the point.

Pay yourself first, automate, track your spending, and invest the difference.

Start small if you need to, then build from there.

Repeat the process long enough, and with compounding, the numbers can look after themselves.

Master a few simple saving techniques today, and your future self may thank you.

The post Best money-saving techniques to build long-term wealth appeared first on The Motley Fool Australia.

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• 5 ASX ETFs for beginner investors in July
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• VAS vs VGS: Which Vanguard ETF is winning so far this year?
• Should I target high growth or balanced strategies for my superannuation?
• Own Vanguard ASX ETFs? It’s dividend payday!

Motley Fool contributor Mark Verhoeven 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.

Everyone loves a bargain and there could be a number of ASX 200 shares offering just that right now after heavy share price falls.

In this article are three ASX 200 shares I’d buy that have fallen by more than 30% over the past year.

REA Group Ltd (ASX: REA)

REA shares are down around 33% over the past 12 months.

This ASX 200 share owns realestate.com.au, which attracts an enormous audience of buyers, sellers, renters, and property watchers. That attention gives REA a major advantage because agents and developers want their listings placed where Australians are already looking.

The more people who use the platform, the more important it becomes to advertisers. That helps REA protect its market position, charge more for premium products, and keep investing in a better experience for users.

I also think the opportunity extends beyond property listings. REA can use its audience, data, and relationships to grow areas such as seller leads, property insights, financial services, and tools for agents.

Housing activity can slow when interest rates remain high or confidence weakens, which may weigh on listing volumes and near-term earnings. However, those conditions do not remove the competitive advantage created by REA’s scale.

After the share price decline, I think investors are being offered a more attractive entry point into one of the strongest online businesses on the ASX.

Life360 Inc (ASX: 360)

Life360 shares have dropped around 31% since this time last year.

The tech company has built a digital platform that helps families stay connected and respond when something goes wrong. Users can check whether a child has arrived at school, receive driving alerts, find a lost item, or keep an eye on an elderly relative.

Those frequent interactions can make Life360 part of a household’s normal routine, which helps explain the scale the platform has reached.

Life360 finished the first quarter of 2026 with 97.8 million monthly active users and 3 million paying Circles. Advertising revenue also climbed to US$19.7 million during the quarter.

That large audience gives the company several ways to keep growing. Life360 can attract more users, convert more families into paying subscribers, sell connected devices, introduce additional safety services, and earn more advertising revenue.

Given its strong growth potential and the share price decline, I think an attractive buying opportunity has opened up.

DroneShield Ltd (ASX: DRO)

DroneShield shares are down approximately 38% over the past year and I think that has created a buying opportunity.

The company develops counter-drone technology that helps defence forces, governments, and security operators detect, track, and respond to unwanted drones.

Hardware remains its biggest revenue generator, with DroneShield supplying portable and fixed systems designed to protect military sites, airports, prisons, critical infrastructure, and public events.

I think demand could keep growing as drones become cheaper, more capable, and more widely used.

DroneShield also has a major opportunity to grow its software revenue. Counter-drone systems need to keep pace with new drone models, signals, and tactics, creating demand for updates, threat libraries, support, and ongoing improvements.

That could extend customer relationships beyond the original hardware sale and gradually make more of its revenue recurring.

Foolish takeaway

Falls of more than 30% show that the market has already lowered its expectations for these companies.

I think each business still has clear ways to become larger and more valuable, supported by customer relationships and capabilities that have taken time to develop.

Further volatility is possible, particularly with Life360 and DroneShield. But at sensible position sizes and with a long holding period, I would use the recent weakness to buy all three ASX 200 shares.

The post 3 ASX 200 shares down over 30% that I’d buy appeared first on The Motley Fool Australia.

More reading

• I’d listen to Warren Buffett and buy cheap ASX shares
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• Buy, hold, sell: Harvey Norman and REA Group shares
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Nextdc Ltd (ASX: NXT) share price is in focus after the company reported an 11% jump in contracted utilisation to 740MW, following new customer contract wins. The company’s forward order book has also risen, now standing at 565MW.

What did NEXTDC report?

• Contracted utilisation as at 30 June 2026 grew by 73MW (up 11%) to 740MW.
• Pro-forma forward order book increased to 565MW.
• Order book expected to convert to billings, revenue and EBITDA from FY26 to FY30.
• FY26 net revenue, underlying EBITDA and capex guidance remain unchanged.

What else do investors need to know?

NEXTDC attributes its contracted utilisation lift to recent customer contract wins, strengthening its position as a leading data centre platform for the digital economy. The company says its pro-forma forward order book, now at 565MW, will progressively convert to revenue streams over the coming years.

Importantly, NEXTDC confirmed that guidance for FY26 net revenue, underlying EBITDA and capital expenditure is unchanged from previous updates. This gives investors some predictability for near-term financial performance.

What’s next for NEXTDC?

NEXTDC intends to deliver on its strong contract pipeline, moving forward orders to revenue and earnings between FY26 and FY30. The stability in earnings guidance suggests management is confident in executing its growth plans.

With its expanding customer base and certified Tier IV operations, NEXTDC is well-placed to respond to continued demand for cloud and data centre services across Australia and Asia.

NextDC share price snapshot

The NextDC share price has underperformed the market over the past 12 months with a decline of almost 7%. This compares to a gain of almost 1.5% from the S&P/ASX 200 Index (ASX: XJO).

View Original Announcement

The post NEXTDC share price on watch as contracted utilisation rises and forward order book grows appeared first on The Motley Fool Australia.

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• 3 top ASX 200 shares I’d buy for a self-managed superannuation fund
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Motley Fool contributor James Mickleboro has positions in Nextdc. 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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.

The Contact Energy Ltd (ASX: CEN) share price is on investors’ radar after the company posted higher electricity and gas sales for June 2026, along with ongoing progress on major renewable energy projects.

What did Contact Energy report?

• Mass market electricity and gas sales reached 495 GWh in June 2026, up from 410 GWh last year
• Contracted wholesale electricity sales totalled 1,056 GWh (June 2025: 810 GWh)
• Electricity and steam net revenue was $175.68/MWh, compared to $186.08/MWh in June 2025
• Electricity generated (or acquired) increased to 1,101 GWh (June 2025: 846 GWh)
• Unit generation cost, including acquired generation, dropped to $38.16/MWh from $54.27/MWh
• Retail netback decreased slightly, to $141.18/MWh from $146.32/MWh

What else do investors need to know?

Contact Energy is progressing with several renewable energy developments, including the Kōwhai Park Solar, Te Mihi Stage 2 geothermal, Glenbrook-Ohurua Battery 2, and Glorit Solar, with a combined approved cost of over $1.5 billion and staggered completion dates out to 2028.

Hydro storage levels were well above average as of mid-July 2026, with the South Island at 145% and the North Island at 123% of mean levels. The Clutha catchment saw strong inflows, supporting overall storage and generation options.

New Zealand’s electricity demand remained broadly steady, down 0.04% on June 2025, but up 1.1% versus June 2024, during what was the warmest June on record.

What’s next for Contact Energy?

Contact Energy is maintaining its focus on expanding renewable energy, reducing unit generation costs, and delivering reliable energy for customers. Upcoming project completions, especially in solar and battery storage, are poised to increase renewable supply in the next few years.

The company’s continued investments in sustainability, along with a healthy pipeline of projects, underline its commitment to low-carbon generation and growing market share in a stable demand environment.

Contact Energy share price snapshot

Over the past 12 months, Contact Energy shares have declined 6%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 1% over the same period.

View Original Announcement

This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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.

The post Contact Energy June 2026 earnings: Sales rise, renewables progress appeared first on The Motley Fool Australia.

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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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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.

The Telix Pharmaceuticals Ltd (ASX: TLX) share price is in focus after the company posted Q2 2026 group revenue of US$247 million, up 21% on the prior year, and reaffirmed its full-year revenue guidance.

What did Telix Pharmaceuticals report?

• Q2 2026 group revenue: US$247 million, up 21% year-over-year and 7% quarter-on-quarter
• Precision Medicine revenue: US$202 million, up 30% year-over-year and 9% quarter-on-quarter
• TMS revenue: US$45 million
• FY 2026 revenue and other income expected to exceed US$1 billion, tracking towards the upper end of guidance (US$950–970 million plus US$40 million Regeneron income)
• R&D expenditure guidance updated to US$230–270 million, reflecting increased investment capacity
• Initial non-refundable payment of US$40 million received from strategic partner Regeneron

What else do investors need to know?

Telix Pharmaceuticals continues to make progress across both its Precision Medicine and Therapeutics businesses. The company achieved a key regulatory milestone for the global Phase 3 trial of TLX591-Tx in prostate cancer, with FDA alignment allowing the study to advance to Part 2 in the US. Enrolment is ongoing in several regions, including Australia and China.

In its Precision Medicine business, Telix is nearing full patient enrolment in the BiPASS Phase 3 study for initial prostate cancer diagnosis, and has completed enrolling for its Phase 3 registrational study in Japan for Illuccix. The company is also progressing new regulatory filings and expanding its manufacturing footprint with new facilities in Melbourne, Brussels, and Yokohama.

Telix finalised a major strategic collaboration with Regeneron to develop radiopharmaceutical therapies, receiving an upfront payment and creating a strong platform for future oncology programs. The company also refinanced existing convertible bonds, boosting its capital flexibility.

What did Telix Pharmaceuticals management say?

Dr. Christian Behrenbruch, Managing Director and Group CEO, said:

We delivered another quarter of growth with U.S. dose volumes increasing 7% during the quarter, driven by growing demand for Gozellix and continued strength across our PSMA imaging portfolio. This performance underscores the strength of our differentiated two-product PSMA imaging strategy and reinforces Telix’s market leadership, built on clinical differentiation, supply chain resilience and commercial execution. During the quarter, we achieved key regulatory, commercial and clinical milestones across both our Precision Medicine and Therapeutics businesses. We are tracking in line with the upper end of our FY 2026 revenue guidance and are investing further in R&D to accelerate a number of high-value programs that have the potential to create significant future growth and shareholder value

What’s next for Telix Pharmaceuticals?

Looking ahead, Telix expects FY 2026 revenue and other income to top US$1 billion, and is allocating additional funds to R&D to support the expansion of key clinical programs. Progress in product development, regulatory filings, and the new Regeneron partnership are expected to underpin further growth.

Management flagged ongoing milestones for pivotal clinical trials in both the Therapeutics and Precision Medicine businesses, as well as continued global geographic expansion. The company’s strengthened capital position will support investment in its late-stage pipeline and manufacturing capability, with a focus on bringing new therapies to market.

Telix Pharmaceuticals share price snapshot

Over the past 12 months, Telix shares have declined 40%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 1% over the same period.

View Original Announcement

The post Telix Pharmaceuticals: Q2 2026 revenue jumps 21% appeared first on The Motley Fool Australia.

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• Contact Energy June 2026 earnings: Sales rise, renewables progress
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. 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 summary of the company announcement. 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.

The ASX dividend share Future Generation Australia Ltd (ASX: FGX) could be one of the best choices that Aussie retirees could make. It offers numerous benefits to investors focused on passive income, as well as people who want diversification.

Future Generation Australia is a name I’ve had in my portfolio for several years already and I plan to continue holding it for a few different reasons.

Let’s look at why it’s such a compelling reason for retirees to buy for the long-term.

Diversification

Future Generation Australia is a listed investment company (LIC) that is invested in the funds of fund managers like Paradice, L1 Group Ltd (ASX: L1G), Wilson Asset Management, Vinva, Eley Griffiths and so on.

All of those find managers work for free so that Future Generation Australia can donate 1% of its net assets each year to youth charities, including Giant Steps, Mirabel Foundation, Raise, Karinyahouse and Lighthouse.

By being invested in so many different fund managers, the ASX dividend share gives investors exposure to more than 430 businesses.

I think it really ticks the diversification box, while also giving more market capitalisation diversification.

Around 19% of the portfolio is invested in companies outside of the S&P/ASX 300 Index (ASX: XKO), showing that the LIC can give exposure to some of the smaller and more growth-orientated stocks in Australia – I think this is a key reason why Future Generation Australia’s portfolio has beaten the return of the S&P/ASX All Ordinaries Accumulation Index (ASX: XAOA) by an average of around 1% per year.

Large dividend yield

One of the main reasons to like this ASX dividend share is its strong dividend yield. There are few businesses that I’d be more willing to invest in for a large dividend yield than Future Generation Australia.

The business expects to pay an annual dividend per share for 2026 of 7.6 cents. At the time of writing, that translates into a grossed-up dividend yield of 8%, including franking credits.

In my view, that’s a far better yield than what term deposits and most other ASX blue-chip shares have to offer.

Growing payouts

Another reason for retirees to love this business is that it has regularly increased its annual dividend for investors. It has increased its annual payout each year since 2015, so 2026 is more than a decade of increases.

Dividend growth is not guaranteed, of course, but with Future Generation Australia’s impressive track record and profit reserve of 41.8 cents per share, I think it’s well positioned to continue growing dividends in the next few years.

Over the long-term, I think Future Generation Australia can continue to deliver rising payouts for retirees and other shareholders.

The post Why this ASX dividend share is a retiree’s dream for 2026 appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $100,000 annual passive income?
• How much superannuation is needed to target a $100,000 annual passive income?
• 2 ASX shares with dividend yields above 7.5%
• How much is needed in superannuation to target $60,000 in annual passive income?
• $1,000 buys 735 shares in an incredibly reliable ASX dividend stock

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia. 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.

Westpac Banking Corp (ASX: WBC) shares usually come with a pleasing level of passive income, more than what someone could get from a term deposit.

It’s a good idea to remember that Westpac wants to keep shareholders happy, so dividends are likely to keep flowing unless something goes really wrong, like we saw at the start of 2020.

Westpac is one of the leading ASX bank shares, along with names like Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Macquarie Group Ltd (ASX: MQG) and ANZ Group Holdings Ltd (ASX: ANZ).

By owning enough Westpac shares, an investor could generate $1,000 of passive income, or even more.

What would it take to create $1,000 of passive income?

Westpac’s dividends have been stable (with a little bit of growth) over the last couple of years. I think it’s likely the ASX bank share will aim to continue gradually increasing its payouts in the coming years.

According to Commsec’s projections, Westpac is forecast to slightly increase its annual payout in FY27 to $1.55 per share. That translates into a grossed-up dividend yield of 6.1% with franking credits and 4.2% without.

If an investor wanted to receive $1,000 of dividend income, it’d take 646 Westpac shares. If we include the franking credits as part of the income, it’d take 452 Westpac shares to generate that level of income based on the projected payout for FY26.

At the time of writing, that means an investor would need to invest approximately $23,600 or $16,500, depending on whether franking credits are included.

Is this a good time to invest in Westpac shares?

Analysts are not convinced that the Westpac share price is good value, despite the fact that it’s down more than 10% since the 2026 high in April 2026.

According to CMC Invest, there have been eight analyst ratings on the ASX bank share within the last three months, with three of them being holds and five of them being sells. In other words, not a single buy recommendation among them.

The average price target from those analysts is $32.84, implying a possible decline of 10% from where it is at the time of writing. Therefore, the ASX bank share may not be a great investment to consider today.

According to the projection on CMC Invest, the Westpac share price is now valued at around 18x FY26’s estimated earnings, at the time of writing.

The post How much must I invest in Westpac shares to earn a $1,000 passive income in 2027? appeared first on The Motley Fool Australia.

More reading

• Are Westpac shares a top buy this week?
• If I invest $10,000 in Westpac shares, how much passive income will I receive in 2027?
• What are experts tipping for the big four bank shares in the back half of 2026?
• How much passive income can I earn off a $50,000 portfolio?
• ANZ, NAB, Westpac and CBA shares: Brokers rate 2 a sell, and 2 a hold

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

CSL Ltd (ASX: CSL) and Telstra Group Ltd (ASX: TLS) shares offer investors two very different paths.

One is working through a difficult reset, while the other continues to deliver the steadier performance investors expect from a defensive blue chip.

If I could buy only one today, which would I choose?

The case for Telstra shares

I can see plenty to like about Telstra.

Connectivity has become essential to how Australians work, communicate, shop, travel, and access entertainment. That gives the company a level of demand that many businesses would love to have.

Its mobile division remains the main attraction for me. Telstra has continued growing mobile revenue as customers choose its network and accept higher prices, while cost reductions have also supported earnings.

I also value the income profile. Telstra has been growing its dividend, and its cash flow gives investors a degree of stability that CSL cannot currently match.

The trade-off is the valuation. At a share price of around $5.07, Telstra trades on a price-to-earnings ratio of approximately 25.6 times estimated FY26 earnings of 19.8 cents per share. The multiple remains around 25.4 times based on the FY27 consensus estimate of 20 cents.

That feels quite full when consensus forecasts suggest very little earnings growth between those years.

Why CSL shares look more compelling

CSL shares are trading around $122.61, compared with consensus earnings estimates of $8.22 per share in FY26 and $8.36 in FY27.

That places the biotechnology company on price-to-earnings ratios of approximately 14.9 times and 14.7 times, respectively.

Their sectors and earnings profiles are different, so those multiples need context. But even with that caveat, the gap is hard to ignore.

CSL is cheaper because confidence has collapsed.

Management has reduced its outlook, the Vifor acquisition has underperformed, and growth initiatives are taking longer to improve the financial results. The company has also faced challenges involving US immunoglobulin inventories, albumin pricing in China, research productivity, a change of CEO, and operating complexity.

Those problems could continue testing shareholders. However, the current valuation appears to reflect a deeply pessimistic view of what comes next.

CSL still owns a global plasma collection and manufacturing network that has taken decades to build. Demand for immunoglobulin therapies continues to grow, while large numbers of potential patients remain undiagnosed or untreated.

Management is also simplifying the organisation, improving plasma and manufacturing efficiency, and targeting substantial annual savings by FY28.

The recovery may take time, but I don’t think CSL needs to return immediately to its former market valuation for shareholders to do well from here. Better execution and a return to dependable earnings growth could be enough to change sentiment considerably and support a re-rating.

Which share would I buy?

Telstra would be my choice for an investor who prioritises defensive earnings and dividends.

For my own portfolio, I would buy CSL shares.

The biotech carries greater uncertainty, and another disappointment could send the share price lower. In return for accepting that risk, investors are being offered a much cheaper valuation and what I believe is considerably more upside if conditions improve.

Foolish takeaway

Telstra is doing many of the things shareholders would want to see, but its valuation already gives the company credit for that steadiness.

CSL is being priced as though its recent problems will weigh on the business for years. That could happen, although I think the strength of its core operations gives it a credible route back to growth.

I would be happy to own both shares. But choosing just one at current prices, I think CSL offers the more compelling balance between risk and potential reward.

The post CSL vs Telstra shares, which should I buy? appeared first on The Motley Fool Australia.

More reading

• I’d listen to Warren Buffett and buy cheap ASX shares
• How to build an ASX dividend portfolio that keeps paying you for decades
• Down 50%+: Are these ASX healthcare shares finally worth buying?
• Could CSL shares double from here? Here’s what the experts think
• How much is needed in superannuation to target a $100,000 annual passive income?

Motley Fool contributor Grace Alvino 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 positions in and has recommended Telstra Group. 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.