Author: openjargon

Building a portfolio of ASX shares that can generate income alongside your usual earnings is a great way to enhance your financial security and diversify your income streams.

How to get started

Generating substantial earnings from dividends does however demand substantial amounts of savings, and getting there can seem an insurmountable task.

Therefore, it’s good to start relatively small, and use the power of compound interest to your advantage.

Today, I’m looking at what can be built up from a base of $20,000.

To generate the target of $5,000 per year in dividend income, you’d be looking at amassing about $100,000 in capital.

I’d argue you could generate about 7% per year from a combination of capital increases – share price growth – and dividends.

If you start with $20,000 in savings, I’d aim to save a further $100 per week.

Over a nine-year period, and assuming a return of 7% per year, you would have $99,055 at the end of this time.

If you’d like to tweak the calculations yourself, head over to the Federal Government’s Moneysmart calculator and have a play around.

Once you hit the $100,000 mark, if you choose, you could start taking your dividends out as an income stream rather than reinvesting them.

So at this stage, what sort of stocks would you be looking to own?

Building an income-generating portfolio

Firstly, it’s a good idea to keep in mind whether the stocks are paying franked dividends.

A fully-franked share comes with a 30% tax credit for the tax already paid by the company, meaning you do not have to pay your full tax rate on the dividends earned.

In terms of trying to hit our target of $5,000 a year, you’d need to be aiming for a dividend yield of 5% – but keep in mind this doesn’t take into account any tax you’d need to pay.

Tolls roads operator Atlas Arteria Ltd (ASX: ALX) is a reasonable company to consider, as it is currently paying a 9% yield, with brokers expecting a relatively strong yield to be maintained for the next few years.

Gas pipelines operator APA Group Ltd (ASX: APA) is also a good fit, paying a 5.39% dividend, albeit only 31% franked.

Investment company Wam Active Ltd (ASX: WAA) is paying 7.4%, while Argo Investments Ltd (ASX: ARG) is paying 4.18%.

Among the banks, Westpac Banking Corp (ASX: WBC) is paying 4.47% while Bank of Queensland Ltd (ASX: BOQ) is paying 6.1%.

Retailer Universal Store Holdings Ltd (ASX: UNI) also has a healthy dividend yield at 6.22%.

So as you can see, there are plenty of stocks around which can deliver decent yields once your savings have hit the target.

The post Starting with $20,000, how to build a portfolio generating $5,000 a year in passive income appeared first on The Motley Fool Australia.

More reading

• Atlas Arteria declares 20c H1 2026 distribution
• 2 ASX dividend shares raising dividends like clockwork
• How much do I need in superannuation to receive $1,000 passive income per week?
• 3 ASX dividend stocks to provide passive income through retirement 
• How to make $26,000 of passive income from ASX shares

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

The Atlas Arteria Group (ASX: ALX) share price is in focus after the company announced a distribution of 20.0 cents per stapled security for the first half of 2026, to be paid unfranked in October.

What did Atlas Arteria report?

• Interim distribution of 20.0 Australian cents per stapled security for H1 FY26
• Distribution will be unfranked
• Ex-entitlement date: 23 September 2026
• Record date: 24 September 2026
• Estimated payment date: 7 October 2026

What else do investors need to know?

The H1 2026 distribution applies for the six months to 30 June 2026. The payment will be made by both Atlas Arteria Limited and Atlas Arteria International Limited, as part of the group’s usual distribution policy.

This distribution will not be franked for tax purposes. Atlas Arteria shareholders are encouraged to check the company’s website for information about distribution treatment for their specific circumstances.

The business operates toll roads across France, Germany, and the US, including interests in APRR, AREA, A79, ADELAC, Chicago Skyway, Dulles Greenway, and the Warnow Tunnel.

What’s next for Atlas Arteria?

The company remains focused on delivering value for securityholders by managing its global toll road portfolio strategically. Investors can expect continued attention to sustainable business practices and disciplined asset management.

Looking forward, Atlas Arteria intends to maintain its current approach and provide regular distributions, but future payments will depend on business performance and market conditions.

Atlas Arteria share price snapshot

Over the past 12 months, Atlas Arteria shares have declined 16%, trailing the S&P/ASX 200 Index (ASX: XJO), which is flat over the same period.

View Original Announcement

The post Atlas Arteria declares 20c H1 2026 distribution 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.

ASX dividend shares that increase their payouts regularly are very attractive to me.

I prefer consistent dividend growth over large dividend yields or cyclical payouts that bounce up and down.

If I’m relying on passive income, then I want to have a high level of confidence that my dividends will continue flowing into the bank account.

Below are the two ASX dividend shares that have increased their dividend payouts the most years in a row.  

APA Group (ASX: APA)

APA has the second-best record on the ASX. It has increased its annual distribution every year for the past 22 financial years.

The business describes itself as a leading energy infrastructure business with a portfolio of more than $20 billion of assets. That includes gas transmission, processing, compression and storage assets. It also has gas-powered energy generation and renewable energy generation. Additionally, APA owns and operates battery storage and electricity transmission infrastructure.

The business regularly invests in its portfolio such as new pipelines, new energy generation and new electricity transmission, helping grow its free cash flow, which funds the larger distributions. In FY26, free cash flow grew 3.2% to $1.1 billion and underlying operation profit (EBITDA) grew 8.3% to $2.18 billion.

The ASX dividend share grew its FY26 distribution by 1.8% to 58 cents per security and expects to hike it again in FY27 to 59 cents per security. That translates into a guided distribution yield of 5.5% for FY27.

I like how the business is balancing investing in the business, together with rewarding investors with larger payouts.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts has the best record of all when it comes to consistent dividend growth, which is partly why this business is one of my largest holdings.

The ASX dividend share has increased its regular annual dividend per share every year since 1998, which is a truly impressive streak.

It has managed to deliver that payout growth by maintaining a diversified portfolio across a range of sectors that can produce defensive/largely uncorrelated cash flow. Some of the places it’s invested in includes energy, telecommunications, property, building products, retirement living, agriculture, water entitlements, financial services, electrification, swimming schools, credit and plenty more.

Having that diversification helps reduce risks and helps Soul Patts search for opportunities across a wide array of assets. It has highlighted it’s looking internationally for opportunities too – Australia and the ASX have been the focus.

In the FY26 half-year result, Soul Patts hiked its interim dividend by 9.1% to 48 cents per share, which was a solid increase, in my view.

The ASX dividend share’s latest two dividends amount to a grossed-up dividend yield of 3.5%, including franking credits, at the time of writing.

Overall, I think these are two of the best ASX dividend shares around and are likely to continue hiking their payouts for the foreseeable future.

The post 2 ASX dividend shares raising dividends like clockwork appeared first on The Motley Fool Australia.

More reading

• Starting with $20,000, how to build a portfolio generating $5,000 a year in passive income
• 27,131 shares of this ASX dividend stock pays an income equal to the Age Pension
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• Soul Patts vs PM Capital Global Opportunities Fund: Which is better?
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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Apa Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telstra vs NAB shares: which is the better buy today?

Deciding between Telstra Group Ltd (ASX: TLS) and National Australia Bank Ltd (ASX: NAB) is a classic dilemma for Aussie investors. Both are household names, blue chips to their core, but they play in very different sandboxes: Telstra dominates telecommunications, while NAB is a financial giant. If you’re weighing up Telstra vs NAB shares for your portfolio, there are a few big differences to consider – from their income potential and defensive qualities to their recent performances on the ASX.

The case for Telstra Group

Telstra is Australia’s oldest and most prominent telco, now operating globally across 20 countries. Since its corporate revamp in 2022, Telstra has reorganised under four main arms: ServeCo, InfraCo Fixed, Amplitel, and Telstra International. At heart, though, it remains the backbone of Australia’s mobile, broadband, and fixed-line communications.

Looking at the fundamentals, Telstra offers a market cap of $54.36 billion and a P/E ratio of 24.32, positioning it as a sizeable defensive play. Its current dividend yield stands at 4.34%, supported by franking of just over 90%, giving it decent appeal for income seekers – though that franking is a little less than fully franked. Year to date, Telstra shares have returned 3.70%, so it’s actually in positive territory for 2026 so far.

Telstra’s dividend track record shows reliability (with some years of special dividends thrown in), but the actual dividend per share of $0.21 is lower in absolute terms than NAB. Its earnings per share is $0.199, so profitability is modest but steady.

The case for National Australia Bank

NAB is one of Australia’s big four banks, with roots across Australia, New Zealand, and select overseas markets. It’s a stalwart of the financial sector, with its core business spanning personal and business banking, lending, and wealth management.

NAB’s market cap dwarfs Telstra at $118.53 billion. Its P/E ratio is 19.11, which comes in lower than Telstra’s, meaning NAB shares look cheaper by this measure. NAB’s dividend yield is fractionally ahead at 4.45%, and crucially, its dividends remain fully franked – a key point for many Aussie investors seeking tax benefits from franking credits. The current dividend per share is $1.70, substantially higher in dollar terms than Telstra’s, with a stronger earnings per share at $2.00.

The trade-off? NAB’s year-to-date return is negative, sitting at -7.66% for 2026 so far. While it’s built a solid reputation for consistency, the recent share price drift is worth noting.

Valuation comparison

Here’s how the key metrics stack up side by side:

Metric	Telstra	NAB
Market Cap	$54.36b	$118.53b
P/E Ratio	24.32	19.11
Dividend Yield	4.34%	4.45%
Dividend per Share	$0.21	$1.70
Earnings per Share	$0.199	$2.00
Franking	90.48%	100%
YTD Return	+3.70%	-7.66%

There are clear contrasts: NAB is larger, sports a higher fully franked dividend per share, and appears modestly cheaper on a P/E basis. Telstra is faring better for share price performance so far in 2026.

Recent share price performance

Telstra’s shares have mostly ticked upwards in recent weeks. From $4.63 on 1 September 2026, TLS closed at $4.88 on 16 September, a gain of around 5.4% in just over a fortnight. Volatility has been low, and the overall trend is steady to mildly positive.

NAB shares, in contrast, have trended downwards. From $38.50 on 1 September 2026 to $38.02 on 16 September, that’s a mild decline. NAB saw sharper sell-offs and higher day-to-day swings.

So for recent momentum, Telstra is comfortably ahead.

Which is the better buy?

If I were forced to pick between Telstra and NAB right now, my lean would be toward Telstra.

There are a few points that guide my thinking. NAB’s fully franked, high-dollar dividends are undeniably attractive, especially for those seeking regular franking credit income. But Telstra is holding up far better in terms of recent share price growth and offers most of NAB’s income appeal, with a still-solid 4.34% dividend yield and over 90% franking.

NAB shares do look cheaper on a P/E basis, and its much larger scale gives it some defensive strength. But banking sector pressures have dragged on its price, and year to date, NAB is negative, while Telstra is up.

Telstra’s defensive telco business, clearer price momentum, and stable dividends make it my preferred option at today’s prices. For me, Telstra edges past NAB for a balanced mix of growth and income right now.

The post Telstra vs NAB: Which ASX blue chip is the better buy? appeared first on The Motley Fool Australia.

More reading

• How many Telstra shares do I need to buy to earn $500 of passive income every month?
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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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. 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.

Wondering which ASX shares could be buys? 

Well, to narrow things down, let’s see what analysts are saying about the popular shares listed below.

Are they buys, holds, or sells? Here’s what they are recommending:

James Hardie Industries PLC (ASX: JHX)

Morgans is feeling more positive about this building products company following the release of its investor day update.

In response, the broker has upgraded James Hardie shares to an accumulate rating with a trimmed price target of $43.00. It said:

JHX held its combined James Hardie and AZEK Investor Day in New York on 15 September 2026. The day centred on the “built to outperform, resilient by design” tagline, as management guided to 4% to 7% organic sale growth above market, while stressing the growth did not require a US housing recovery to work. 

The growth is meant to come from the AZEK combination, synergies running ahead of plan, and a leaner, lower-capex portfolio after the Europe sale. The positive company story and the growth trajectory are only partially offset by the tough macro, a 75bps rise in the 30-year mortgage rate over the past six months, and a peer multiple de-rate. On this basis we upgrade to an Accumulate rating, whilst moderating our target price to A$43.00 (from A$45.00).

Ramelius Resources Ltd (ASX: RMS)

Another ASX share that Morgans is positive on is gold miner Ramelius Resources.

It is feeling upbeat on its outlook and has put a buy rating and $4.74 price target on its shares. It commented:

RMS is expected to release FY27 guidance and an updated outlook to FY30 in Sep-26, following execution of the EPC contract for the Mt Magnet mill expansion, providing greater clarity on project costs and timing. Following an analyst change, we retain our BUY recommendation with a revised price target of A$4.74 per share.

REA Group Ltd (ASX: REA)

Finally, Bell Potter remains bearish on this property listings company and has named its shares as a sell this week with a $148.00 price target.

The broker has concerns that listings volumes could fall well short of consensus estimates due to it operating in a challenging environment at present. Bell Potter explains:

We retain our Sell recommendation. Despite REA’s ability to generate strong results in challenged operating environments, we continue to see significant downside risk to listings volumes/earnings vs. company guidance and consensus and await further data points via lending volumes and market listings before re-considering our thesis.

The post Buy, hold, sell: James Hardie, REA Group, and Ramelius shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
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• 6 ASX 200 shares boosted by brokers this week
• James Hardie says it doesn’t need a US housing recovery. Can it prove it?
• Down 6% today: What’s going on with the James Hardie share price?

Motley Fool contributor James Mickleboro has positions in REA 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are plenty of ASX dividend shares for passive income investors to choose from on the local market.

But with so many to choose from, it can be hard to decide which ones to buy.

To narrow things down, let’s take a look at three ASX dividend shares that I think could be worth considering for an income-focused portfolio.

Cedar Woods Properties Ltd (ASX: CWP)

Cedar Woods Properties could be a good option for passive income.

The property developer has projects across residential communities, apartments, townhouses, and commercial developments in several Australian states.

That gives the company exposure to long-term population growth and demand for housing.

Cedar Woods has also built a strong pipeline of projects, which can help support earnings over time as developments move through planning, construction, and settlement.

Property development can be cyclical, but the company has been operating for decades and has a history of returning cash to shareholders through dividends.

For income investors, that combination of development profits, land holdings, and a strong dividend track record could make Cedar Woods worth a closer look.

Harvey Norman Holdings Ltd (ASX: HVN)

Another ASX dividend share to consider is Harvey Norman.

The retailer has exposure to furniture, bedding, appliances, electronics, and other household goods through its stores in Australia and several overseas markets.

But Harvey Norman is more than just a retailer. It also owns a substantial property portfolio, which gives the business another source of value and income.

Consumer spending is under pressure as interest rates rise, so the near term could be tough. But Harvey Norman has a strong brand, a large store network, and exposure to categories that can benefit when housing activity and consumer confidence improve.

This could make it attractive for investors looking for income from both retail and property exposure.

Transurban Group (ASX: TCL)

A final ASX dividend share to look at is Transurban.

It owns and operates toll roads in Australia and North America, including major roads in Sydney, Melbourne, and Brisbane.

These are valuable infrastructure assets that can generate cash flow over long periods. This is especially the case given population growth, urban congestion, and the value motorists place on saving time.

Transurban isn’t standing still. It has been investing in new infrastructure projects, which could provide another source of growth in future years.

Overall, for investors looking for passive income backed by large-scale infrastructure assets, Transurban could be a strong option to consider.

The post Which ASX dividend shares are buys for passive income? appeared first on The Motley Fool Australia.

More reading

• Transurban posts 3.4% August traffic growth
• How much do I need in superannuation to receive $1,000 passive income per week?
• JB Hi-Fi vs Harvey Norman: Which dividend stock wins?
• How to make $26,000 of passive income from ASX shares
• My top ASX passive income stocks for the next 10 years

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 positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Harvey Norman and Transurban Group. The Motley Fool Australia has recommended Cedar Woods Properties. 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) had a positive day and charged higher. The benchmark index rose 0.4% to 8,732.4 points.

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

ASX 200 expected to rise

The Australian share market looks set for another good session on Friday following a strong night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 54 points or 0.6% higher this morning. On Wall Street, the Dow Jones was up 0.6%, the S&P 500 rose 1.15%, and the Nasdaq jumped 1.7%.

Oil prices fall

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 fell overnight. According to Bloomberg, the WTI crude oil price is down 1.15% to US$101.26 a barrel and the Brent crude oil price is down 1.55% to US$104.19 a barrel. This reflects more crude oil being brought to market.

Sell REA shares

The REA Group Ltd (ASX: REA) share price could be overvalued according to analysts at Bell Potter. This morning, the broker has retained its sell rating on the property listings company’s shares with an improved price target of $148.00. It said: “We retain our Sell recommendation. Despite REA’s ability to generate strong results in challenged operating environments, we continue to see significant downside risk to listings volumes/earnings vs. company guidance and consensus and await further data points via lending volumes and market listings before re-considering our thesis.”

Gold price softens

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a subdued finish to the week after the gold price edged lower overnight. According to CNBC, the gold futures price is down 0.15% to US$4,380.8 an ounce. The precious metal has come under pressure this week after US interest rates were increased.

James Hardie shares upgraded

Morgans was pleased with the investor update from James Hardie Industries PLC (ASX: JHX) this week. In response, the broker has upgraded the building materials company’s shares to an accumulate rating with a $43.00 price target. It said: “…management guided to 4% to 7% organic sale growth above market, while stressing the growth did not require a US housing recovery to work. The growth is meant to come from the AZEK combination, synergies running ahead of plan, and a leaner, lower-capex portfolio after the Europe sale.”

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

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Motley Fool contributor James Mickleboro has positions in REA Group and Woodside Energy Group Ltd. 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.

South32 vs Rio Tinto shares: which ASX mining stock is better?

When you think of big-name Australian mining shares, it’s hard to look past South32 Ltd (ASX: S32) and Rio Tinto Ltd (ASX: RIO). Both are resource powerhouses, but they’ve taken different approaches to growth, dividends, and the commodities they dig up. If you’re weighing up South32 vs Rio Tinto shares for your portfolio, here’s what stands out.

The case for South32

South32 emerged from BHP’s 2015 demerger and now runs mining operations across ten countries, extracting everything from bauxite and aluminium to copper, silver, zinc, nickel, and manganese. According to its most recent company description, it employs around 9000 people and provides the raw materials crucial for construction, energy, renewables, and consumer products worldwide.

Among South32’s fundamentals, a few things jump out. Its P/E ratio sits at 14.79, putting it in the reasonable valuation camp—neither super cheap nor stretched. The company’s year-to-date (YTD) return is a real eye-catcher: up 38.07%, a hefty gain for any mining stock. Its dividend yield is a modest 1.94%, but it comes fully franked—a plus for Aussie income hunters. Over recent years, dividends have been consistently franked at 100%, and recent payouts, while not the highest, have shown reasonable regularity.

The case for Rio Tinto

Rio Tinto needs little introduction: this is one of the world’s largest and oldest mining operations, tracing its roots to 1873. Listed on the ASX since 1962, Rio focuses on three major pillars—iron ore (its biggest earner), aluminium and lithium, and copper. The group also dabbles in other critical minerals through exploration and development, making it a true heavyweight in global resources.

Looking at Rio Tinto’s metrics, scale is the first thing that stands out. With a market cap of $61.82 billion, it dwarfs South32. Rio also offers a more generous dividend yield at 4.07%, again fully franked. Earnings per share are much higher (7.382 vs South32’s 0.235), consistent with its size and profitability. The P/E ratio is slightly higher at 15.94, but still sits in a similar band—a sign that you’re not paying a huge premium for the blue-chip name. YTD, Rio’s return is 16.56%: less blazing than South32’s, but still a solid result considering its scale.

Valuation comparison

There’s enough difference across important metrics to pop them into a table for an at-a-glance check:

Metric	South32	Rio Tinto
Market Cap	$22.48 billion	$61.82 billion
P/E Ratio	14.79	15.94
Dividend Yield	1.94% (100% franked)	4.07% (100% franked)
Earnings per Share	0.235	7.382
Dividend per Share	0.13	6.70
Year To Date Return	38.07%	16.56%

Rio commands a huge lead in size, dividends, and profit per share. South32 is a smaller, more diversified operator and has delivered outsized returns so far this year.

Recent share price performance

Let’s look at how the share prices have moved in recent weeks. Both companies’ price history data covers the same date range: from 18 August to 16 September 2026.

South32 started on 18 August at $4.82 and finished on 16 September at $5.01. That’s a gain of about 3.9% over this short period, consistent with its strong year-to-date performance. Rio Tinto started this period at $167.40 (18 August), ending at $166.25 on 16 September—a slight drop of roughly 0.7%. While Rio had some up days, the overall trend recently has been a touch negative.

It’s worth noting, South32 has enjoyed a positive burst inline with its year-to-date trend, while Rio has flattened out.

Which is the better buy?

If I had to pick between South32 and Rio Tinto right now, my lean would be toward South32. Here’s why: Its huge 38% YTD gain stands out—it’s been a clear outperformer, and the recent price momentum shows buyers remain enthusiastic. While its dividend isn’t as juicy as Rio’s, it’s fully franked and shows reasonable consistency.

Rio Tinto is a true blue-chip, offering scale, stability, and a far bigger dividend—great reasons for conservative, income-focused investors to be interested. But its recent share price has drifted sideways or down, and it lags South32 in YTD returns.

For those seeking growth and recent market momentum, South32 is my pick. But if you value big, steady dividends and market dominance, I can completely understand going with Rio. With both stocks offering 100% franking and trading at similar valuations, the edge for me goes to South32 on its current performance and uptrend.

The post South32 vs Rio Tinto: 2 popular ASX mining shares compared appeared first on The Motley Fool Australia.

More reading

• Woodside Energy vs Fortescue: Which ASX mining share is best for passive income?
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• Should I buy Rio Tinto shares for passive income?
• BHP vs Rio Tinto: What’s the better buy?

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 recommended BHP Group. 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 draft. 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.

When it comes to passive income, Telstra Group Ltd (ASX: TLS) shares are up at the top of my list.

As an ASX telecommunications business, the company is classically defensive. Which means that no matter how high inflation gets, or what state the Australian economy is in, its services will always be in strong demand.

After all, the telco owns and operates Australia’s largest mobile network, and is also a major home internet provider. Both of these are considered essential services.

The defensive nature of Telstra means the company has a strong competitive advantage over other ASX shares, and it also means it can generate stable earnings and revenue on a consistent basis.

As a result, it can pay reliable passive income to its shareholders through dividend payments.

How often does Telstra pay dividends to shareholders?

Telstra traditionally pays its shareholders two dividends every year, in March and September. Until FY26, these have been fully-franked. But in March this year, and again this month, the dividend payments have been partially franked at 90.48%.

How much has Telstra paid its shareholders in FY26?

Telstra paid its shareholders a partially franked 10.5 cent-per-share dividend in March, and a final 9.5 cent fully franked dividend this month. 

That totals 21 cents for FY26, giving a dividend yield of around 4.3%.

What’s the forecast for the telco’s dividend for FY27?

Based on the latest Commsec forecasts, the telco is also expected to pay a total dividend of 22 cents per share in FY27.

At the $4.87 share price at the time of writing, a 22 cent dividend translates to a forward dividend yield of around 4.5% for FY27.

So, how many Telstra shares do I need to generate $500 of monthly passive income in FY27?

Remember, Telstra doesn’t pay dividends on a monthly basis. So first you need to calculate what a $500 per month passive income is over the financial year. That’s $6,000.

In order to earn $6,000 per year in passive income from Telstra shares, at 22 cents per unit, you’d need to own around 27,272 shares.

To buy all of those shares right now, you’d need to invest just over $132,814.

Can Telstra’s dividend payout keep climbing higher?

Well, according to Commsec data, yes. In fact, Commsec forecasts that Telstra’s dividend will increase again to 22.5 cents in FY28. It’s not a huge increase, but the benefit of a defensive stock is stability, and that’s what Telstra shares can provide its shareholders. 

The post How many Telstra shares do I need to buy to earn $500 of passive income every month? appeared first on The Motley Fool Australia.

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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 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.

New analysis from the team at Morgans has included significant upgrades for two ASX 200 shares. 

Both James Hardie Industries PLC (ASX: JHX) and Lottery Corporation Ltd (ASX: TLC) received a new accumulate rating from the broker. 

These two ASX 200 stocks have moved in opposite directions in 2026. 

James Hardie Industries shares have risen by over 21% year-to-date, while Lottery Corporation has fallen almost 7%. 

However both have upside moving forward according to the team at Morgans. 

Here is the latest outlook. 

James Hardie

James Hardie is the world’s leading producer and marketer of fibre cement building products and a major supplier of fibre gypsum and cement-bonded boards. 

The ASX 200 company held its combined James Hardie and AZEK Investor Day in New York on 15 September 2026. 

The day centred on the “built to outperform, resilient by design” tagline, as management guided to 4% to 7% organic sales growth above market, while stressing that this growth did not require a US housing recovery. 

Morgans said growth will come from the AZEK combination, synergies ahead of plan, and a leaner, lower-capex portfolio after the Europe sale. 

The positive company story and the growth trajectory are only partially offset by the tough macro, a 75bps rise in the 30-year mortgage rate over the past six months, and a peer multiple de-rate. On this basis we upgrade to an Accumulate rating, whilst moderating our target price to A$43.00 (from A$45.00).

From current levels, this updated price target indicates an upside potential of 20%. 

Lottery Corporation

This ASX 200 company is Australia’s largest provider of lottery, Keno, and instant scratch products.

The team at Morgans has updated its forecasts on the company given domestic lottery conditions have not improved since the FY26 result. 

We have marked our lottery tracker to market and now have tracked turnover running high single digits behind the prior comparative period. We cut FY27/28F Lotteries revenue by 2-3% and Lotteries EBITDA by 3-4%, with EPS down 6%/4%. 

The change is a lower jackpot assumption, partly offset by a lower jackpot share of turnover, as base games and three price increases carry more of the mix.

The broker has upgraded its target price to $5.40 (previously $5.60). 

From current levels, this indicates an upside potential of over 15%. 

Following the September bond issue, our FY27 interest costs remain broadly unchanged with FY28 lifted nominally. At c.16.5x 12-month forward EV/EBITDA and a 3.3% fully franked yield, we think a poor sequence is in the price, and see upside from here if conditions improve.

The post 2 ASX 200 stocks that Morgans just upgraded 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 positions in and has recommended The Lottery Corporation. The Motley Fool Australia has recommended The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.