Author: openjargon

The S&P/ASX 200 Index (ASX: XJO) is having a better day on Wednesday. In afternoon trade, the benchmark index is up 0.2% to 8,806 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Aurelia Metals Ltd (ASX: AMI)

The Aurelia Metals share price is down 5% to 29.5 cents. This morning, this gold miner announced that it has achieved financial close on a $150 million senior secured financing package. It notes that this strengthens its balance sheet and increases liquidity. The company’s chief financial officer, Martin Cummings, said: “This refinancing is the culmination of a deliberate strategy and comprehensive process to secure a highly competitive financing package with a flexible structure. The facilities strengthen Aurelia’s balance sheet, increase liquidity and provide long-term support for the Company’s rehabilitation bonding requirements. The strong level of interest received throughout the process enabled us to assemble a high-quality syndicate of global financial institutions that are well positioned to support Aurelia’s next phase of growth.”

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is down 7.5% to 87 cents. This is likely to have been driven by a broker note out of Morgans this morning. According to the note, the broker has downgraded the energy producer’s shares to a sell rating (from hold) with an 81 cents price target (from $1.10). It said: “We mark-to-market our second half estimates for weaker spot gas prices, while also trimming our Waitsia output forecasts for FY26-28 on continuing struggles. After downgrading our Q4 estimates for daily production rates, we see potential for BPT to fall just short of its FY27 group production guidance. While BPT’s share price has already been under pressure, its earnings outlook has declined at a faster rate, with its forward EV/EBITDA actually rising.”

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is down 4% to $7.95. This could also have been driven by a broker note. This morning, Macquarie downgraded the insurance giant’s shares to a neutral rating (from outperform) with a reduced price target of $8.50 (from $9.00). It made the move on the belief that AI could disrupt insurance providers.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is down 2% to $172.37. Investors have been selling the mining giant’s shares following a sizeable pullback in the copper price overnight. This led to significant weakness in the miner’s NYSE listed shares on Wall Street on Tuesday night.

The post Why Aurelia Metals, Beach Energy, IAG, and Rio Tinto shares are falling today appeared first on The Motley Fool Australia.

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• Forget BHP and Rio Tinto, this ASX copper share could rise 100%+
• The US-Iran peace deal just wavered. Here is what this means for these ASX shares
• 5 things to watch on the ASX 200 on Tuesday
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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.

The Metrics Master Income Trust (ASX: MXT) share price is on watch today as the fund announced a monthly unfranked distribution of 1.36 cents per unit for June 2026.

What did Metrics Master Income Trust report?

• Monthly distribution declared: 1.36 cents per unit (unfranked)
• Ex-date: 30 June 2026; Record date: 1 July 2026; Payment date: 8 July 2026
• Distribution relates to the period ending 30 June 2026
• Distribution Reinvestment Plan (DRP) available, with elections due by 2 July 2026
• DRP discount: Nil (0%)

What else do investors need to know?

The distribution is fully unfranked, which means investors may want to consider the potential tax implications. Holders who wish to reinvest their distributions can participate in the fund’s DRP, with no discount being offered. Those who do not elect to participate will receive their payments in cash.

The DRP price will be calculated as set out in the fund’s constitution, and new DRP units will rank equally with existing units. Investors have until 5:00 pm (AEST) on 2 July 2026 to lodge their DRP election.

What’s next for Metrics Master Income Trust?

Metrics Master Income Trust continues its regular monthly payout approach, aiming to provide consistent income to its unitholders. Investors should keep an eye on future announcements for any changes to distribution rates or franking status.

The fund’s ongoing distributions remain a key focus, and the trust’s team will likely update the market regarding its investment performance and outlook in subsequent reports.

Metrics Master Income Trust share price snapshot

Over the past 12 months, Metrics Master Income Trust shares have declined 5%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 3% over the same period.

View Original Announcement

The post Metrics Master Income Trust announces June 2026 monthly payout appeared first on The Motley Fool Australia.

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• Why is ASX 200 jumping on the latest inflation data?
• Why is this ASX retail stock falling 8.5% today?
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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.

S&P/ASX 200 Index (ASX: XJO) investors appear relieved by May’s inflation print, reported by the Australian Bureau of Statistics (ABS) at 11:30am AEST.

In the minutes that followed that release, the ASX 200 jumped 0.2%.

Here’s what we know.

ASX 200 gains on mixed inflation print

The ABS reported that the Consumer Price Index (CPI) rose 4.0% in the 12 months to May 2026. That’s down from the 4.2% reading reported for the 12 months to April last month, likely lifting ASX 200 investor sentiment.

Housing continues to be the biggest driver of rising costs, with housing up 6.5%. Food and non-alcoholic beverages prices increased by 3.3%, with annual transport costs also up 3.3%.

One bright spot was fuel prices.

Rachael McCririck, ABS head of prices statistics, noted:

On a monthly basis, Automotive fuel prices fell 11.9% in May, after falling by 7.0% in April. These monthly falls include the impacts of the halving of the fuel excise on 1 April and lower world oil prices in recent weeks.

But ASX 200 investors aren’t out of the woods yet when it comes to further potential interest rate hikes from the RBA.

Trimmed mean inflation, which takes out certain volatile items (like fuel) and is the RBA’s preferred gauge, increased to 3.6% in the 12 months to May 2026. That’s up from 3.4% in the 12 months to April. And it’s also higher than consensus economist forecasts of a 3.5% increase in trimmed mean inflation.

What are the experts saying on RBA interest rates and the latest inflation print?

As you’re likely aware, a primary concern for ASX 200 investors and mortgage holders alike is how the RBA will respond to the ongoing elevated inflation levels in Australia.

The RBA’s next interest rate setting meeting takes place on 11 August.

According to Josh Gilbert, lead analyst for APAC at eToro:

The board will be watching closely, having finally hit pause after three consecutive hikes since February. Last week, it was clear that the central bank wants to step back and assess how earlier tightening is filtering through, rather than keep its foot to the floor.

The problem is that inflation is still too high, while the labour market is showing clearer signs of softening. That leaves the RBA walking a narrow path between doing enough to bring inflation back to target and doing too much damage to households and the jobs market.

VanEck head of investments and capital markets, Russel Chesler, added (quoted by the Australian Financial Review):

The RBA now faces an increasingly uncomfortable trade-off. We do not expect today’s rise in trimmed mean inflation to be enough to force another hike in August 2026, but the case for easing has become harder to make.

GDP growth is weakening, unemployment has risen to 4.5%, households are running down savings buffers, and spending is already outpacing disposable income.

The post Why is ASX 200 jumping on the latest inflation data? appeared first on The Motley Fool Australia.

More reading

• Metrics Master Income Trust announces June 2026 monthly payout
• Why is this ASX retail stock falling 8.5% today?
• Nickel Industries shares: US$169m TMI HPAL investment boost
• Transurban Group declares FY26 distribution; announces AGM date
• Atlas Arteria shares: IFM extends takeover offer after passing 50% voting power

Motley Fool contributor Bernd Struben 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.

After a brutal start to the week, heavyweight ASX tech stocks have staged a sharp rebound on Wednesday.

WiseTech Global Ltd (ASX: WTC) jumped 11% to $31.91, while Xero Ltd (ASX: XRO) climbed 7% to $69.65. The recovery offered some relief after heavy selling pressure across both stocks.

Despite the bounce, the damage over the past year remains severe for the ASX tech giants. WiseTech is still down around 70% over 12 months, while Xero has fallen roughly 64%. Over the same period, the S&P/ASX 200 Index (ASX: XJO) has gained about 3.7%.

So is the worst over, or just a pause in a broader downtrend?

WiseTech Global: Sentiment-driven sell-off

WiseTech’s recent volatility has been driven less by operational weakness and more by sentiment and headline risk.

The logistics software leader has been caught in a wave of investor concern surrounding governance issues and ongoing scrutiny linked to founder Richard White. That uncertainty has weighed heavily on sentiment, triggering sharp share price de-ratings.

Yet the latest rebound of the ASX tech stock suggests some investors believe the sell-off may have gone too far.

Fundamentally, WiseTech remains a dominant player in global logistics software through its CargoWise platform. The system is deeply embedded in the operations of freight forwarders, customs brokers, and logistics providers around the world.

That level of integration creates strong switching costs. Once customers adopt CargoWise into core workflows, replacing it becomes costly, disruptive, and operationally risky.

This structural moat is why many long-term investors still see underlying value in the business, even as short-term sentiment remains fragile.

Today’s 11% bounce may reflect bargain hunting after an extended period of forced selling rather than a fundamental shift in outlook. However, it does suggest that at least some market participants believe the risk-reward balance is starting to improve.

Xero: Caught in the growth stock unwind

Xero’s recovery has a different driver.

Unlike WiseTech, Xero’s challenges have been less about company-specific issues and more about sector-wide pressure on growth and technology stocks.

Over the past year, investors have aggressively de-rated software companies as interest rate expectations, valuation concerns, and risk appetite all shifted.

The ASX tech stock has not been immune. Despite continued revenue growth, customer base expansion, and strong recurring subscription income, Xero’s share price has been heavily compressed.

That recurring revenue model remains one of Xero’s key strengths. Subscription-based income provides visibility and stability, which is highly valued in software businesses over the long term.

However, in the current environment, the market has been more focused on valuation contraction than underlying growth.

The recent 7% rebound suggests that sentiment may be stabilising, at least in the short term, as investors reassess whether the sell-off has overshot fundamentals.

What happens next?

Both ASX tech stocks now sit at an interesting crossroads.

WiseTech is grappling with rebuilding investor confidence after governance-related uncertainty, while Xero is navigating a broader reassessment of software valuations.

In both cases, the recent rally may reflect a shift in sentiment rather than a full reversal of trend.

The post ASX tech giants bounce back from heavy losses appeared first on The Motley Fool Australia.

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• US chip stocks were smashed overnight. So why are ASX tech shares rising?
• WiseTech shares have crashed: buy, hold, or sell?
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• 5 ASX growth shares I want in my portfolio in FY27
• What’s spooking investors about Xero shares?

Motley Fool contributor Marc Van Dinther has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

DroneShield Ltd (ASX: DRO) shares have continued to slide over the past month.

During this time, the counter-drone technology company’s shares have lost almost 20% of their value.

But that doesn’t reflect a lack of progress from the company. In fact, there have been a number of announcements over the period.

And one that could have flown under the radar from this week relates to its European operations.

Let’s take a closer look at what the company has announced.

What did DroneShield announce?

On Tuesday, DroneShield announced the launch of a strategic supply chain campaign in Poland, which aims to strengthen local industry engagement and support the delivery of next-generation sovereign and allied counter-drone capability across Europe.

The company revealed that the campaign will see DroneShield expand engagement with Polish manufacturing and technology partners to drive a more resilient and scalable supply chain.

This is aligned with growing European demand for counter-uncrewed aircraft systems (CUAS).

DroneShield advised that the initiative is intended to support European military, public safety, and critical infrastructure customers that are seeking proven counter-drone solutions with strong local industrial participation.

The campaign is being timed to coincide with the release of DroneShield’s accompanying European supply chain expansion document. This document will outline its approach to working with Polish partners across areas including advanced manufacturing, subsystem supply, electronics, testing, sustainment, and capability integration.

‘An important strategic market’

Commenting on the plans, DroneShield’s Europe-based technical and supply chain manager, Ciaran Mannion, said:

Poland is an important strategic market for DroneShield and a natural fit for deeper industrial collaboration. This campaign reflects our commitment to working with capable local partners to support European requirements with proven counter-drone technology, responsive delivery, and sovereign capability.

As demand for counter-drone capability continues to grow, customers are increasingly looking for trusted suppliers who can combine world-class technology with strong local industrial support. Our Polish supply chain campaign is designed to help meet that need.

The company notes that the Polish supply chain campaign forms part of its broader international growth strategy. It reflects DroneShield’s focus on building durable partnerships in priority markets where national security, defence modernisation, and critical infrastructure protection remain key policy and procurement priorities.

Despite recent share price weakness, DroneShield’s shares are still beating the market over the past 12 months. During this time, they have generated a 41% return for investors. So, it isn’t all doom and gloom.

The post Own DroneShield shares? Here’s some news you might have missed appeared first on The Motley Fool Australia.

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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 DroneShield. 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.

CSL Ltd (ASX: CSL) shares ended in the red again at the close of the ASX on Tuesday afternoon.

The shares ended around 1% lower for the day, at $112.04 a piece and they’re now around 4% lower over the past week. It looks like investor sentiment has started softening again.

The shares began rebounding through the first three weeks of June, and are still around 19% higher than an all-time low of just $92.24 earlier in the month.

But CSL shares are still 35% lower year to date and 54% lower than this time last year.

The question now is, if you own the ASX healthcare shares, what should you do with them?

Is it time to buy more in the dip? Hold tight until we know what will happen next? Or sell up before the shares drop to a new low?

Here’s what the experts think.

Are CSL shares a buy, sell or hold?

Analysts are divided on the outlook for CSL shares, although the majority agree there should be some upside ahead.

Market Index data shows most brokers (five out of seven) have a hold rating on CSL shares. However, the $137.04 target price implies a potential 22% upside at the time of writing.

TradingView data also shows that, of 18 analysts, 10 have a hold rating and another eight have a buy or strong buy rating on the stock. 

The average $138.48 target price implies a potential 25% upside at the time of writing. However, some analysts tip the ASX healthcare shares to fall around 8% to $103.49, while others forecast CSL to jump around 76% higher to $197.66, at the time of writing.

UBS recently renewed its buy rating on CSL shares with a 12-month price target of $158. The broker is feeling more positive about the company’s outlook, and believes that this year could mark the low point for CSL’s earnings.

But the team at Peak Asset Management is more bearish and is one of the brokers with a sell rating on the ASX stock. 

The broker said that the biotech giant has materially downgraded its FY26 outlook while announcing about $5 billion of additional non-cash pre-tax impairments across fiscal years 2026 and 2027. It also noted that the CSL Vifor acquisition has underperformed amid government healthcare cost pressures and a higher-interest-rate environment.

Meanwhile, Ord Minnett recently confirmed its hold rating and $117 target price on CSL shares. The broker also said it believes the market is underestimating the challenges its Vifor business is facing and expects earnings to be below consensus estimates.

My view of CSL shares

I don’t think things look too good for CSL shares right now, and short-term growth appears to be limited.

Over the longer term, I think there is still potential. CSL’s growth initiatives seem to be working, and it is operating in a dominant position in a high-growth market.

I think it’s possible that if CSL can turn around its financials, investor confidence will follow. But until then, I’m holding tight. 

The post Down 54%: What should I do with my CSL shares now? 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 positions in and has recommended CSL. 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.

Premier Investments Ltd (ASX: PMV) looks like one of Australia’s top shares to consider, given the growth in its business yet lower valuation.

As the chart below shows, the Premier Investments share price is down by 35% since September 2025, despite a bit of recovery in recent weeks.

Premier Investments has three important contributors to its value – Peter Alexander, Smiggle and a large stake of Breville Group Ltd (ASX: BRG.

It’s true that the business faces tougher trading conditions with higher interest rates and stronger inflation, potentially affecting both customers and the company’s cost base.

But, I think the hefty decline has been overdone and seems to assume major, long-term impacts. I think this is an opportunity to invest in one of Australia’s top shares, particularly given Peter Alexander’s prospects.

Strong prospects for Peter Alexander

A few months ago, the pyjamas business reported that in the first half of FY26, it delivered sales growth of 4.9% to $312.3 million. Since the first half of FY20, the business has grown sales at a compound annual growth rate (CAGR) of 13.7%

Peter Alexander continues to invest in its retail channel, delivering good growth within its existing markets of Australia and New Zealand.

It noted that it opened four new stores in the first half of FY26, with one in Victoria and three in NSW.

The company also noted that four existing stores were relocated and/or expanded during the first half of FY26, with investment in upgraded store fitouts aiming to significantly improve the customer shopping experience. Of those four stores, three were in Victoria and one was in New Zealand.

It was noted that more than 15 additional opportunities have been identified for both new and/or larger-format stores in existing markets to better showcase the wider product offering.

I’m particularly excited by the fact that this division has established a presence in the UK, which has a large addressable market. It started with a few stores in London and could continue growing in the years ahead. The growth prospects here make it one of Australia’s top shares to consider, in my view.

It also said it’s exploring international wholesale opportunities with global, quality wholesale partners.

Smiggle is struggling at the moment, but Premier Investment is looking to reset the business and I don’t think the market is considering the fact that conditions could improve.

Finally, Breville has proven itself over the years and continues to expand geographically into markets such as China, South Korea and the Middle East. I’m glad Premier Investments still owns this holding.

Valuation and dividend yield

This looks like one of Australia’s top shares, in my opinion, and its valuation is very compelling.

Based on the FY26 projection on Commsec, the Premier Investments share price is valued at 15x FY26’s estimated earnings with a possible grossed-up dividend yield of 7.5%, including franking credits, at the time of writing. This seems far too cheap to me.

I’m excited about the long-term potential of the business, as well as a few other ASX shares that could help us outperform.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

More reading

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

There have been some big returns generated in the mining sector over the next past 12 months.

But what about the next 12 months?

Well, one ASX mining stock that is being tipped by Bell Potter to rise materially is named below.

Let’s see why it could be destined to outperform the market by some distance between now and this time next year.

Which ASX mining stock?

The stock that is getting the team at Bell Potter excited is WA1 Resources Ltd (ASX: WA1).

It is a niobium explorer which owns the Luni Niobium Project in Western Australia.

Bell Potter has been pleased with recent developments and particularly the scaled-up beneficiation testwork results across four composites. It explains:

WA1 Resources has announced scaled-up beneficiation testwork results across four composites representing key Indicated Mineral Resource Estimate (MRE) zones at its 100%-owned Luni Niobium Project (Luni) in Western Australia. The testwork confirms a two-stage flotation regime can produce high-quality niobium concentrates with commercially relevant recoveries across the deposit, using raw site water. The testwork is a significant metallurgical data point and materially de-risks the beneficiation stage of the processing flowsheet.

Bell Potter was also pleased with the concentrate grades that were revealed. It adds:

The headline result is a weighted average concentrate grade of 44% Nb₂O₅ at 54% overall recovery across all four composites (open cycle, bulk float). Critically, Composite A, which incorporates material from the higher-grade portion of the resource area and that also represents the focus area for early years of mining, returned 46% Nb₂O₅ at 67% recovery, a significant uplift on prior results from this area. These results support an upward revision to our recovery assumptions and are directly feeding into the PFS, which remains on track for Q4 CY2026.

Big potential returns

According to the note, the broker has retained its speculative buy rating on the ASX mining stock with an improved price target of $27.20. Based on its current share price of $12.36, this implies potential upside of almost 120%. Bell Potter concludes:

We increase our valuation for WA1 to $27.20/sh (previously $24.40/sh) and maintain Our Speculative Buy recommendation. Our valuation for WA1 is based on a notional development scenario (NDS) for Luni discounted at 10% and risked at 30% to reflect the project’s current stage. We revise our recovery assumptions in our model upward to 54%, which sees our unrisked NPV10% increase from A$1,814m to ~A$2,021m — an ~11% uplift. Key catalysts include: PFS completion and Reserve declaration, further beneficiation optimisation of Composites B– D, downstream refining results, and strategic partner/government engagement.

The post Which ASX mining stock could rocket 100%+ after ‘breakthrough’? appeared first on The Motley Fool Australia.

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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.

I’d describe Rural Funds Group (ASX: RFF) as one of the most attractive high-yield ASX dividend stocks Aussies can buy. For me, it’s more appealing than the Age Pension.

Rural Funds Group is a real estate investment trust (REIT) that owns hundreds of millions of dollars of farmland across Australia. Its farms are spread across a number of farming areas, including cattle, almonds, macadamias, vineyards and cropping.

If I were thinking about an investment in retirement, owning farmland does sound appealing. Land always has value, it can produce something extremely essential to the population (food) and long-term inflation can be a useful tailwind to rental income.

Just to clarify, Rural Funds itself isn’t a farming operator, it just leases its land to high-quality tenants.

I think it offers a number of benefits for investors.

Strong rental income credentials

Rural Funds generates excellent rental income from tenants like Olam, JBS, Select Harvests Ltd (ASX: SHV), Stone Axe, Australian Agricultural Company Ltd (ASX: AAC) and Treasury Wine Estates Ltd (ASX: TWE). These businesses are among the leading operators nationally or even internationally.

Pleasingly, most of its rental income is steadily growing, with most contracts either being linked to CPI inflation, or having fixed annual increases, plus market reviews. This steady growth can help increase distributions organically in the coming years.

Additionally, I like that the rental income comes from a variety of areas, in different states and climate conditions.

Finally, the business has a weighted average lease expiry (WALE) of approximately 13 years, giving investors clear rental stability and visibility.

Why I think it’s more appealing than the Age Pension

To get a huge amount of passive income, you’d need to buy a lot of Rural Funds shares. I think it’s important to have diversification when it comes to a dividend portfolio.

But, I’d like to own Rural Funds shares because of the huge asset backing it would provide. That asset base can also climb in value over time, which can help boost our financial position.

Rural Funds has been paying an annual distribution per unit of 11.73 cents amid the headwinds of higher interest rates. That translates into a distribution yield of 5.7%. That makes it a high-yield ASX dividend stock, in my view.  

The Age Pension currently pays a maximum of around $31,200 for a single person, which is one of the most generous in the world.

To receive that much from Rural Funds, an investor would need to own 265,985 Rural Funds shares.

Again, I wouldn’t make Rural Funds my entire portfolio, though I’d be happy with exposure to this pleasing REIT as my ‘farm’ investment because of how passive it can be.

It looks like a great time to invest because, at the time of writing, it’s trading at a discount of around 34% to its adjusted net asset value (NAV). In other words, we’re able to get exposure to these farms for a very cheap price.

However, Rural Funds is not the only ASX share I’d buy for passive income today.

The post 265,985 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Rural Funds Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Rural Funds Group and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The recent Australian federal budget changes appear to make superannuation the best way for Australians to invest for passive income.

I think that’s true because superannuation has a lower tax rate compared to many individuals, trusts and companies. With the set-and-forget nature of superannuation, it makes it very easy to invest for the long-term with the retirement system.

Receiving passive income is a very simple and laid-back strategy when it comes to investing in shares. However, when considering the passive income return, we need to remember that the focus should be on the net income, meaning the after-tax return. Full-time working Aussies that invest for passive income in their own name could lose a third of those payments to tax each year, which isn’t ideal.

In my view, investing in superannuation is more appealing because of its lower tax rate in the accumulation phase compared to the typical individual’s tax rate for a full-time earner. It’s possible that the tax rate could be 0% in retirement.

It should be said that every household’s tax situation is different, so let’s look at the targeted income level of $11,000 per month, without talking about tax for the rest of this article.

How much is needed in superannuation for $11,000 of monthly passive income?

Receiving $11,000 in dividends each month equates to an annual goal of $132,000 per year. I bet lots of Australians would like to receive that amount of dividends each year without needing to do ongoing work to get the money flowing into the bank account.

I’d suggest Australian investors need to consider what types of investments they want to own and the yield that comes with it. In my view, ASX shares are the best pick for passive income, partially due to the likely franking credits that come attached to dividends from companies.

A portfolio with a dividend yield of 6% could be half the size of a portfolio with a dividend yield of 3% and generate the same level of dividend income.

For example, if a portfolio were approximately $2.2 million in size, it would generate approximately $132,000 of annual dividends with a 6% dividend yield. If a portfolio had a 3% dividend yield, it would need to be around $4.4 million in size to generate the same amount.

Of course, other dividend yields would require different-sized portfolios to achieve targeted levels of passive income. For example, a 5% dividend yield would require a portfolio size of $2.6 million to reach $132,000 annually.

The types of ASX dividend shares I’d want to buy

If an Australian superannuation investor wants to unlock mid-to-higher dividend yields, then they’re in luck. The ASX share market gives access to great companies with franking credits, real estate investment trusts (REITs) with compelling payouts and attractive valuations, as well as listed investment companies (LICs) with a pleasing track record of rising dividends.

Two of the businesses with a great track record of growing their payouts include investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and Kmart and Bunnings owner Wesfarmers Ltd (ASX: WES). I believe these two businesses will be able to compound their payouts.

I’m attracted to some mid-yielding names like Rural Funds Group (ASX: RFF), Centuria Industrial REIT (ASX: CIP), Australian Foundation Investment Co Ltd (ASX: AFI), Telstra Group Ltd (ASX: TLS) and WCM Quality Global Growth Fund (ASX: WCMQ).

Finally, for a higher dividend yield, I’d look at names like MFF Capital Investments Ltd (ASX: MFF), WCM Global Ltd (ASX: WQG), Future Generation Global Ltd (ASX: FGG) and Future Generation Australia Ltd (ASX: FGX).

The post How much is needed in superannuation to target an $11,000 monthly passive income? appeared first on The Motley Fool Australia.

More reading

• How I’d build $50,000 of ASX passive income
• There are still some well-priced ASX dividend shares. Here’s where to look
• 3 ASX dividend shares to buy and hold for years of income
• Here are the top 10 ASX 200 shares today
• Where to invest $500 on the ASX right now

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, Future Generation Global, Mff Capital Investments, Rural Funds Group, Washington H. Soul Pattinson and Company Limited, Wcm Global Growth, and Wcm Quality Global Growth Fund. 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 Mff Capital Investments, Rural Funds Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. 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.