Author: openjargon

Your superannuation shouldn’t sit quietly in the background.

If you can actively and wisely invest it, it can become an excellent tool to generate an easy passive income for retirement.

As an added bonus, not only can it help you build wealth for later on in life, it also comes with the added benefit of low tax rates and long-term compounding.

But how much do you actually need in your super to be able to earn the passive income you want in retirement?

Let’s break it down, using a $60,000 per year passive income as an example.

How much do I need in my superannuation to earn $60,000 per year in passive income?

To calculate the superannuation you’ll need, simply divide your annual passive income by the dividend yield of your portfolio.

Of course, the tricky part is that the answer varies significantly depending on what dividend yield of your portfolio actually is.

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 passive income. 

So, if your overall portfolio has a dividend yield of around 3%, you’ll need a balance of around $2 million to earn $60,000 per year in passive income.

Of course, a $2 million superannuation balance isn’t achievable for many Australians. But the good news is that, as your dividend yield increases, the superannuation balance required to earn the same passive income goes down.

That means, if the yield of your portfolio is around 4%, for example, your balance would need to be closer to $1.5 million to earn the same dividend income.

Raise the dividend yield of your portfolio to 5% and you’d be looking at a balance of closer to $1.2 million to earn the same amount.

Increase that to a 6% or even 8% dividend yield, and you’d need around $1 million or $750,000, respectively. You’d still earn $60,000 per year in passive income from these portfolio sizes.

What ASX shares can I buy around these dividend yields?

There are a huge range of ASX dividend shares available for your superannuation investment. Here are some of my favourites.

Lower-yielding ASX dividend-paying shares such as Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), AMP Ltd (ASX: AMP) and Washington H. Soul Pattinson and Co Ltd (ASX: SOL) are solid and reliable stocks that offer a yield of around 2% to 3%.

For a mid-range yielding ASX dividend option, I’d look at defensive assets like Telstra Group Ltd (ASX: TLS). Santos Ltd (ASX: STO) is a good option if you want oil and gas exposure. Meanwhile, Coles Group Ltd (ASX: COL) and blue-chip majors like Rio Tinto Ltd (ASX: RIO), BHP Group Ltd (ASX: BHP) and National Australia Bank Ltd (ASX: NAB) pay a decent dividend of around 3% to 5%.

For a higher 5% to 6% dividend yield, I’d look at reliable payers like APA Group (ASX: APA) or AGL Energy Ltd (ASX: AGL).

Dexus Industria REIT (ASX: DXI) and Charter Hall Long WALE REIT (ASX: CLW) yield around the 7% mark.

If you want to take on more risk and go for a much higher-yielding ASX stock, my picks would be something like IPH Ltd (ASX: IPH), Centuria Office REIT (ASX: COF), or the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX). These typically yield anywhere between 9% and 12%.

The post How much do I need in my superannuation to earn an annual $60,000 passive income? appeared first on The Motley Fool Australia.

More reading

• Should you buy Rio Tinto and these ASX shares?
• Buy, hold, sell: Coles, Woolworths, Wesfarmers shares
• 5 things to watch on the ASX 200 on Friday
• 3 ASX dividend shares I’d buy for passive income right now
• Here are the top 10 ASX 200 shares today

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 Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended BHP Group, IPH Ltd , and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Income investors are spoilt for choice when it comes to ASX dividend shares on the local market.

To narrow things down, let’s take a look at two that have been named as buys by brokers.

Here’s what they are recommending to clients:

Collins Foods Ltd (ASX: CKF)

Morgans is a fan of this quick service restaurant operator and has been pleased with its performance in a tough operating environment.

Commenting on its recent results, the broker said:

In our view, CKF reported a solid result in light of tough conditions. NPAT grew 17.6%, at the mid-point of guidance. COGS are expected to be flat to modest in FY27, which is better than feared. KFC Australia 1H27-to-date SSS of +4.0% is a stronger-than-expected start. Europe disappointed with early 1H27 SSS tracking deeply negative, though attributable to factors outside CKF’s control. Balance sheet remains strong with ND/EBITDA of 0.8x, keeping CKF well placed to fund the German expansion, accelerate Kwench rollout, and pursue further German bolt-on acquisitions. 

While the composition of our forecasts has changed, the net profit impact is minor. We believe CKF remains undervalued for its growth profile. Despite the tough consumer environment, CKF proves resilient regardless of numerous challenges and continues to deliver solid growth. We retain our BUY recommendation and revise our price target to A$10.60 from A$12.50.

Morgans is forecasting fully franked dividends per share of 31 cents in FY 2027 and 35 cents in FY 2028. Based on its current share price of $7.95, this would mean dividend yields of around 4% and 4.4%, respectively. 

The broker has a buy rating and $10.60 price target on the company’s shares.

Harvey Norman Holdings Ltd (ASX: HVN)

Another ASX dividend share that brokers are bullish on is retail giant Harvey Norman.

Bell Potter expects FY 2027 to be a tough year, but believes this is more than priced in. And with generous yields expected, it sees now as a good time to snap up Harvey Norman’s shares. It said:

While our views on FY27e sees challenging conditions for retailers with a recovery weighted to 2H, on our revised estimates HVN continues to trade at a 1-year forward P/E of ~13x (as per BPe) which appears attractive. 

We see mid-longer term growth catalysts related to the new store driven growth in international retailing (UK, Malaysia, Croatia), refit program in Australia, expansion of brand partnerships in the midpremium end of the whitegoods market somewhat offsetting the risk in the mid-market space and opportunities to grow their real estate portfolio as Australia’s single largest owner in large format retail with a global portfolio of ~$4.6b. We maintain BUY.

Bell Potter is forecasting fully franked dividends of 31.1 cents per share in FY 2027 and then 33.3 cents per share in FY 2028. Based on its current share price of $4.75, this equates to dividend yields of 6.6% and 7%, respectively.

The broker currently has a buy rating and $6.00 price target on its shares.

The post Brokers name 2 ASX dividend shares to buy with 4% to 7% yields appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Harvey Norman and REA Group shares
• 5 things to watch on the ASX 200 on Friday
• 2 ASX shares near 52-week lows I’d buy today
• These ASX shares could generate $10,000 per year in passive income
• 5 top ASX dividend shares to buy in July

Motley Fool contributor James Mickleboro has positions in Collins Foods. 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 Harvey Norman. The Motley Fool Australia has recommended Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s been a wobbly first half of 2026, with Australian sharemarkets swinging sharply between highs and lows.

During periods of uncertainty, defensive ASX shares are typically thrust into the spotlight as investors rotate towards stable assets.

But after recent price gains, are these major ASX blue chips still a buy?

Here’s what the experts think.

Coles Group Ltd (ASX: COL)

Coles shares have suffered peaks and troughs throughout the first few months of 2026. The shares have traded anywhere between a low of $20.35 a piece and an all-time high of $24.41 in late-June. Overall though, the shares are up around 6% for the year-to-date. 

It looks like Coles shares hit a couple of headwinds this month. After spiking to a historic high, the shares weakened over the past couple of weeks, thanks to a combination of company-specific setbacks. 

These include concerns about a potential acquisition of Petbarn owner Greencross, and news that the Australian Competition and Consumer Commission (ACCC) has ruled against the supermarket giant’s proposed acquisition of a leasehold interest in Kalgoorlie-Boulder, Western Australia. 

But brokers are still bullish about the outlook for Coles shares. TradingView data shows that the majority (nine out of 16) of analysts have a buy or strong buy rating. Another five rate the supermarket stock as a hold and another two have a sell or strong sell rating.

The average $23.65 target price implies a potential 5% upside at the time of writing. 

Woolworths Group Ltd (ASX: WOW)

Coles’ direct rival, Woolworths has fared much better this year. For the year-to-date the supermarket giant’s share price is over 33% higher, and it has mostly trended upwards rather than suffering a series of sharp peaks and falls.

It looks like the steady increase has mostly been driven by investor confidence that the retailer’s earnings are recovering after a difficult period in late-2025.

Woolworths posted a stronger-than-expected first half result in February and is actively pursuing cost cutting initiatives to help support margins and earnings over time. 

But after the incredible run,  it looks like Woolworths shares have now reached their peak and are trading around fair value. 

TradingView data shows that eight out of 17 analysts have a hold rating on the supermarket stock. Another five rate the shares as a buy or strong buy, and four rate Woolworths shares as a strong sell.

The average $36.33 target price now implies a potential 8% downside over the next 12 months, at the time of writing.

Wesfarmers Ltd (ASX: WES)

Wesfarmers shares had a difficult start to the year and slumped to an annual low in mid-May. But the retail conglomerate’s shares quickly rebounded and have now recovered around 29% from that point to the close of the ASX on Thursday afternoon. For the year-to-date, Wesfarmers shares are now up around 12%.

The business benefited from an uptick in consumer spending and news that interest rates could start falling. Wesfarmers’ sheer scale and market dominance across several retail sectors has also helped reinforce the company’s competitive advantage.

The company has also been actively expanding. The company has opened five Anko stores in the Philippines and plans to launch another five by the end of FY27. Locally, its Bunnings brand continues to expand into new categories, including pet products and automotive accessories. And also its Kmart segment is testing larger K Home stores in an attempt to break into the furniture retail market.

But the concern now is that after a huge rebound, Wesfarmers shares have become too expensive.

TradingView data shows half (seven out of 14) of analysts have a hold rating on the stock. Another six rate Wesfarmers shares as a strong sell. Only one broker now holds a buy rating.

The average $77.39 target price implies a potential 16% downside, at the time of writing. 

The post Buy, hold, sell: Coles, Woolworths, Wesfarmers shares appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares I’d buy for passive income right now
• This blue-chip ASX 200 stock is up 30% in 2 months
• How much superannuation is needed to target a $100,000 annual passive income?
• How to build a successful ASX dividend portfolio
• How I’d invest $10,000 in ASX shares for the next decade

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

The team at Bell Potter has released updated guidance on Harvey Norman Holdings Ltd (ASX: HVN) and REA Group Ltd (ASX: REA) shares. 

The broker sees one as a clear buy with healthy upside, while the other is listed as a sell. 

Here is the latest on these retailers.

REA Group not out of the woods yet 

REA Group shares jumped 6% yesterday, however Bell Potter appears unconvinced of a long term rebound. 

Its share price remains down almost 33% in the last year. 

Bell Potter said REA’s final listings data point for FY26 capped off a strong final quarter for volumes. 

National new listings grew 13% for the month of June, supported by 3% and 9% growth in key Sydney and Melbourne markets respectively. Brisbane and Perth outperformed at 22% and 18%. The result lifts our expected FY26 listings to broadly flat from -1.3% previously, with R3m listings performance also strong at 11%.

Bell Potter has increased its price target  to $137 due to earnings estimate revisions and rolling the valuation forward to increasingly include FY28. However the broker maintains a sell rating for several reasons: 

• Higher expected RBA cash rates are forecast to weaken borrowing demand, reducing activity in the housing market.

• Recent government budget measures are expected to discourage property investment (particularly investors), weighing on house prices and listing volumes despite some support from owner-occupiers.
• Lower dwelling prices and fewer listings are expected to outweigh REA’s pricing (“buy yield”) benefits. 

Bell Potter’s updated target is roughly 14% below current levels. 

Healthy upside for Harvey Norman 

Harvey Norman shares have fallen 32% year to date, however Bell Potter is confident it can recover. 

Bell Potter said Harvey Norman concluded a challenging 2H26. 

While our FY26e estimates remain unchanged, we apply some conservatism to our forward estimates within our revenue assumptions in HVN’s Franchising and Retail divisions across all geographies. However, our estimates for the Property division remain largely unchanged as we view HVN’s prime position in Australia’s large format retail market given the sub-asset class continues to see highest rental growth in an under-supplied market.

The broker has slightly lowered its price target to $6.00 (previously $6.70) however has maintained its buy recommendation. 

From current levels, this indicates approximately 26% upside. 

We view FY27 as the cyclical low point for most retailers and see more leading indicators reflecting a tougher year led by the weak Consumer Confidence on a major household item in HVN’s key markets.

The post Buy, hold, sell: Harvey Norman and REA Group shares appeared first on The Motley Fool Australia.

More reading

• Brokers name 2 ASX dividend shares to buy with 4% to 7% yields
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: L1 Long Short Fund, REA, Wesfarmers shares
• Experts name 3 big-name ASX 200 shares to sell

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

On Thursday, the S&P/ASX 200 Index (ASX: XJO) gave back its early gains to finish the day lower. The benchmark index edged a fraction lower to 8,840.7 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to fall on Friday following a poor night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 26 points or 0.3% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.3%, the S&P 500 is down 0.6%, and the Nasdaq is 1.5% lower.

Oil prices ease

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 0.7% to US$79.05 a barrel and the Brent crude oil price is down 0.75% to US$84.32 a barrel. This is despite rising tensions between the US and Iran.

Buy Netwealth shares

Bell Potter thinks Netwealth Group Ltd (ASX: NWL) shares are good value. In response to the investment platform provider’s quarterly update, the broker has retained its buy rating and $30.00 price target. It said: “Our Buy rating and target price are unchanged. NWL remains on track to deliver free cash flow margins in-line with 5Y historical standards, balancing growth investments and profitability. Market share cadence and the current multiple make this attractive.”

Gold price sinks

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a poor finish to the week after the gold price sank overnight. According to CNBC, the gold futures price is down 1.8% to US$3,979 an ounce. Increasing US interest rate hike bets are weighing on the precious metal.

Buy Harvey Norman shares

Bell Potter sees a lot of value in Harvey Norman Holdings Ltd (ASX: HVN) shares. This morning, the broker has retained its buy rating on the retail giant’s shares with a trimmed price target of $6.00. This implies potential upside of 26%. In addition, a dividend yield greater than 6% is expected in FY 2027. It said: “While our views on FY27e sees challenging conditions for retailers with a recovery weighted to 2H, on our revised estimates HVN continues to trade at a 1-year forward P/E of ~13x (as per BPe) which appears attractive.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• Brokers name 2 ASX dividend shares to buy with 4% to 7% yields
• Buy, hold, sell: Harvey Norman and REA Group shares
• Here are the top 10 ASX 200 shares today
• AMP expects higher 1H26 earnings on China growth
• Netwealth delivers record FUA in June 2026 quarter

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group. The Motley Fool Australia has positions in and has recommended Harvey Norman and Netwealth 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 Kerry Craig, Global Market Strategist at J.P. Morgan Asset Management has reinforced the importance of targeting growth opportunities outside Australia. 

It’s very normal for investors to focus on equities in their own country, but Australians who only invest in the domestic market could be missing out on emerging themes and sectors internationally. 

Home bias 

According to the report, Australia represents just 1.4% of the global share market. 

However, many local investors allocate a large share of their portfolios to ASX-listed companies. 

This tendency is known as home bias and, while it’s understandable, it can also be limiting.

Investing close to home can feel reassuring: familiar brands, known businesses and local news you can follow. But familiarity is not the same as opportunity. Some of the world’s major growth themes are playing out in markets, sectors and companies that many Australian portfolios may not fully capture.

Craig also highlighted that being a small share of the global market wouldn’t matter as much if Australia was consistently outperforming. 

However, it made 9.4% annualised returns over the past 10 years, which sounds good until you realise that, over that same time period, the US returned 15.5% and Japan 14.5%. 

Major growth themes are global not domestic 

Additionally, it’s important to remember that buying equities is buying expected future earnings growth, and by focusing on Australia you could be missing out on some of the major growth themes in investing today. 

While the Australian market might have ridden high on the mining boom and trade links with China in the past, it has limited exposure to some of today’s key growth drivers.

Take Artificial Intelligence. The opportunity is not only in US technology companies, but in the infrastructure behind them, including semiconductors, memory, data centres, power generation and electricity networks. Much of that spending flows through global supply chains, including markets like Korea, Japan and Taiwan, while Australia has only limited exposure.

Looking past AI 

While AI is perhaps the most obvious example, it is far from the only growth opportunity sitting outside the Australian market. 

For example, Craig highlights that European countries are spending heavily to secure reliable and sustainable energy supplies. 

At the same time, geopolitical tensions are driving higher defence spending across Europe.

As well as missing out on growth opportunities, investors should be aware the Australian share market is relatively concentrated in financials like major banks, and materials/mining. There is nothing inherently wrong with these sectors or businesses, but a well-constructed portfolio often seeks to diversify its sources of return across industries, economies, business models and growth drivers.

How to target international shares

For investors seeking exposure to international equities, there are numerous ASX ETFs that track other markets. 

For example, the Betashares Capital – Asia Technology Tigers ETF (ASX: ASIA) targets Asian technology companies. 

It has risen more than 60% in the last 12 months. 

Another popular fund is the BetaShares Nasdaq 100 ETF (ASX: NDQ) which targets the largest non-financial companies listed on the Nasdaq market.

For European exposure, there is the BetaShares Europe ETF – Currency Hedged (ASX: HEUR) which provides exposure to Europe’s largest companies that generate a substantial portion of their revenues outside the Eurozone.

The post Why it’s vital for investors to look to international shares for growth: Expert  appeared first on The Motley Fool Australia.

More reading

• Own NDQ, GAME, or other Betashares ASX ETFs? It’s pay day for you!
• 3 amazing ASX ETFs I’d buy this month
• SK Hynix IPOs in the US. Here’s what that means for ASX investors
• Analysts are still bullish on SpaceX shares after Nasdaq inclusion. Here is what that means for ASX investors
• 3 ASX ETFs with strong long-term growth potential

Motley Fool contributor Aaron Bell has positions in BetaShares Europe ETF – Currency Hedged, BetaShares Nasdaq 100 ETF, and Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you’re looking for good ASX dividend stocks, it can pay to check out the various funds run by Wilson Asset Management.

They have a number of funds listed on the ASX, including WAM Income Maximiser Ltd (ASX: WMX), which pays out monthly, WAM Microcap Ltd (ASX: WMI), which is currently paying a trailing dividend of 7.1%, and WAM Active Ltd (ASX: WAA).

Good news for this ASX dividend performer

Today, I’m going to focus on WAM Active because it recently reported strong investment returns, which have translated into a strong final dividend and a special dividend, both of which are still on the table, with record dates much later this year.

WAM said in its recent statement to the ASX that its investment portfolio increased by a record 75.5% in the year to the end of June, outperforming the Bloomberg AusBond Bank Bill Index (Cash) and the S&P/ASX All Ordinaries Accumulation Index by 71.6% and 69.8%, respectively.

Chairman Geoff Wilson said regarding the result:

FY2026 is the strongest year in WAM Active’s history since the Company was established in January 2008. This record result reflects the strength of WAM Active’s disciplined and flexible investment strategy, outstanding stock selection and active portfolio management. We remained focused on delivering strong long term returns and a growing stream of fully franked dividends for shareholders.

The WAM board declared a fully-franked final dividend of 3.2 cents per share and a special dividend of 2 cents per share.

The ex-dividend dates for the fund’s ordinary dividend and special dividend are 17 November and 4 December, respectively, meaning there’s plenty of time to buy if you’re keen on those dividends.

So, let’s look at our $1,000 target. In order to reap this from the upcoming dividends, you’d need to hold 19,230 WAM Active shares.

It’s also useful to look at it from a full-year perspective.

WAM Active will pay a total of 9.4 cents per share, fully franked over the full year, including the recently declared dividends.

That would translate to $1807.62 in dividends, or as the company said in its recent statement, a fully-franked dividend yield of 8.6% and a grossed-up dividend yield of 12.3%.

While past performance is not a predictor of future performance where investing is concerned, that’s an impressive effort over the past year by any measure.

Fund invests into major macroeconomic themes

The fund’s lead portfolio manager, Oscar Oberg, explained that the fund’s outperformance was driven by exposure to four key themes: critical minerals, electrification and grid infrastructure, precious metals, and artificial intelligence (AI).

He added:

Equity markets over the 2026 financial year were characterised by elevated volatility, rapid shifts in macroeconomic expectations and pronounced rotation across sectors and themes. Changes to interest rate outlooks, geopolitical developments and the accelerating AI adoption contributed to periods where company fundamentals were often overshadowed by broader market positioning. These conditions created dislocations across parts of the market, particularly in smaller and less well-covered companies, providing opportunities for the investment team to identify mispriced securities using WAM Active’s market-driven approach.

The post This ASX dividend stock could pay me $1,000 this year. Here’s how many shares I’d need appeared first on The Motley Fool Australia.

More reading

• How much do I need in superannuation to receive $6000 per month in passive income?
• This fund’s 75% return smashed its benchmark, and it’s celebrating with a special dividend
• Leading fund manager reveals 2 exciting ASX shares to buy

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.

The ASX is well known for its abundance of high-quality dividend shares.

Investors chasing reliable, fully franked income have plenty to choose from on the ASX right now.

Here are three shares worth a look for a passive income portfolio.

National Australia Bank Ltd (ASX: NAB)

National Australia Bank is one of the big four lenders and remains a core income holding for many Australian portfolios.

The bank pays a fully franked dividend of 4.3% (not including franking credits). What’s more, its valuation typically sits at a discount to sector leader Commonwealth Bank.

This gives income investors a comparatively attractive entry point among the majors.

NAB’s earnings are underpinned by home lending, business banking, and a large deposit base. All of these support a stable dividend through most parts of the economic cycle.

Bank dividends can come under pressure during a serious credit downturn, so investors should keep an eye on bad debt trends and net interest margins.

Telstra Group Ltd (ASX: TLS)

Telstra is the classic Australian dividend share, built on the country’s largest mobile and fixed line network.

The telco generates highly predictable, subscription-style revenue from millions of customers. This has historically supported a consistent, largely franked dividend.

Currently, Telstra’s dividend yield stands at 4.10% (not including franking credits).  

Telstra has also been investing in infrastructure monetisation, including its InfraCo assets.

Management has flagged as a way to unlock further shareholder value over time.

The main risks are intense mobile competition from Optus and TPG, and the capital intensity of maintaining and upgrading network infrastructure.

Wesfarmers Ltd (ASX: WES)

Wesfarmers owns a portfolio of well-known Australian retail and industrial brands, including Bunnings, Kmart, and Officeworks.

Bunnings in particular has proven remarkably resilient through multiple economic cycles, giving the group a defensive earnings base that supports steady dividend growth.

Wesfarmers has also been diversifying into lithium and healthcare, adding growth optionality alongside its retail core.

The shares typically trade at a premium multiple given the quality of the underlying businesses. Investors are therefore paying up for that consistency rather than buying deep value.

Foolish Takeaway for ASX dividend shares

NAB, Telstra, and Wesfarmers each offer a different flavour of passive income, from banking to telecommunications to retail.

Combining shares from different sectors can help smooth out portfolio income if one industry hits a rough patch. Meanwhile, franking credits add a further boost for local investors.

For ASX investors looking to generate substantial passive income through ASX dividend shares, they should look no further than these three Aussie companies.

The post 3 ASX dividend shares I’d buy for passive income right now appeared first on The Motley Fool Australia.

More reading

• This blue-chip ASX 200 stock is up 30% in 2 months
• What are experts tipping for the big four bank shares in the back half of 2026?
• How much superannuation is needed to target a $100,000 annual passive income?
• How much do I need in superannuation to receive $6000 per month in passive income?
• ANZ, NAB, Westpac and CBA shares: Brokers rate 2 a sell, and 2 a hold

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

Qantas Airways (ASX: QAN) shares have been in focus again as Project Sunrise edges closer to reality.

The airline recently unveiled its first purpose-built Airbus A350-1000ULR in Toulouse, France.

Non-stop flights from Sydney to London are now locked in for October 2027, with tickets going on sale from February 2027.

A Sydney to New York route will follow, though a launch date has not yet been confirmed.

What is the new aircraft?

The new aircraft will carry just 238 passengers, well down on the 410 seats found on a standard A350. This will make room for extra fuel tanks and a dedicated wellbeing zone.

Qantas has ordered 12 of the ultra-long-range jets in total.

Management says the intent to book a Project Sunrise flight has climbed sharply among premium leisure travellers since February 2026.

This is a promising signal for a product built around high-margin cabins.

So where does that leave Qantas shares?

Qantas shares are trading on a price to earnings ratio of around 10 times, below the global airline industry average of roughly 9 to 12 times depending on the peer set used.

The stock carries a dividend yield near 3.5%, with the payout covered by earnings.

Analyst sentiment remains firmly positive.

Multiple brokers rate Qantas a buy or outperform, with average 12-month price targets clustering between roughly $11 and $12.

That implies modest to solid upside from current levels, though estimates vary depending on each analyst’s fuel and demand assumptions.

The bull and bear case for Qantas shares

The bull case rests on Qantas converting its domestic duopoly position, its loyalty program, and Project Sunrise into durable earnings growth over the next several years.

The bear case is the one that has dogged all airlines recently.

Fuel costs have risen sharply on the back of the conflict involving Iran, and Qantas has flagged higher near-term jet fuel bills as a result.

Airlines are also inherently cyclical, and a downturn in travel demand can hit margins quickly.

Project Sunrise itself has already been delayed roughly six months from its original schedule, a reminder that execution risk on a genuinely novel aircraft program is real.

For investors comfortable with cyclical risk, Qantas offers a rare combination of a reasonable valuation, a growing loyalty and freight business, and a marquee growth catalyst in Project Sunrise that could open a new premium revenue stream from 2027.

For more conservative investors, the fuel cost backdrop and the airline’s history of guidance resets are worth weighing carefully before buying.

Foolish Takeaway

Project Sunrise gives Qantas a new growth catalyst heading into 2027.

The shares still trade at an undemanding multiple relative to the broader airline sector.

But investors should size any position with the industry’s fuel and demand cyclicality firmly in mind.

The post Project Sunrise incoming: Are Qantas shares a buy? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Netwealth, Silver Mines, and Qantas shares
• Buy, hold or sell, PEXA, ASX and Qantas shares
• How much do I need in my superannuation to get $6,000 per month in passive income?
• 5 things to watch on the ASX 200 on Tuesday
• How Qantas shares soared ahead of the ASX 200 in June

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.

A 10-year investment period gives investors time to think beyond the next market wobble.

With $20,000, ASX exchange traded funds (ETFs) can provide exposure to global quality companies, robotics and artificial intelligence, and China’s consumer and technology economy.

Here are three ASX ETFs that could be top long-term picks.

Betashares Global Quality Leaders ETF (ASX: QLTY)

The Betashares Global Quality Leaders ETF could be worth considering.

This ASX ETF is designed to provide exposure to global companies with quality characteristics. That can include strong profitability, solid balance sheets, and earnings that have shown a degree of resilience over time.

The idea is not to chase the most exciting theme in the market. It is to own companies that have already proven they can make money at a high level and keep doing so through different conditions.

That can be important over a 10-year period because markets never move in a straight line. There will be recessions, inflation scares, rate changes, earnings downgrades, and plenty of volatility along the way.

A quality-focused fund can help anchor the portfolio with businesses that have the financial strength to keep investing, defend margins, and compound over time. It was recently recommended by the team at Betashares.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

Another ASX ETF to look at is the Betashares Global Robotics and Artificial Intelligence ETF.

This fund gives investors exposure to companies involved in robotics, automation, artificial intelligence, drones, unmanned vehicles, and related technologies. That makes it a more targeted growth holding.

The long-term case is tied to how work is changing. Factories, warehouses, hospitals, farms, logistics networks, and transport systems are all looking for ways to become more efficient, precise, and automated.

Robotics is not just about humanoid machines. It can include industrial equipment, sensors, robotic surgery tools, autonomous systems, and the software that helps machines make better decisions.

Artificial intelligence could increase the opportunity by making machines more capable in real-world settings.

This ASX ETF is likely to be volatile, but as a 10-year holding, it gives the portfolio exposure to a powerful structural theme. It was also recently recommended by analysts at Betashares.

VanEck China New Economy ETF (ASX: CNEW)

The final ASX ETF to look at is the VanEck China New Economy ETF.

This is arguably the higher-risk idea in the group.

The fund gives investors exposure to Chinese companies linked to areas such as consumer spending, healthcare, technology, industrial innovation, and other parts of the country’s changing economy.

Over a 10-year period, China’s middle class, domestic consumption, healthcare needs, digital services, and advanced manufacturing ambitions could still create strong investment opportunities.

This fund gives investors a way to access that potential without trying to pick individual Chinese shares. It was recently recommended by analysts at VanEck.

The post Where to invest $20,000 in ASX ETFs for 10 years appeared first on The Motley Fool Australia.

More reading

• Where to invest $50,000 in ASX ETFs this month
• ASX ETFs are booming. Should you join in?
• How should I invest my money in FY27?
• 3 ASX ETFs to buy and hold for 10 years
• Own NDQ, ARMR, HACK or other Betashares ASX ETFs? Dividends just announced

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.