Author: openjargon

Regardless of the size of your superannuation savings pool, an extra $10,000 a year in passive income is always welcome.

If you’re looking to give your retirement lifestyle a boost, then buying the right ASX dividend shares offers one of the best means I know of to achieve that extra income.

One of the advantages ASX investors have, which investors in US and many international stocks don’t, is that a lot of ASX dividend shares come with full franking credits. And these credits won’t be directly impacted by the Federal Budget’s proposed tax changes.

If you’re not familiar, franking credits mean that you get credit for some, or all, of the 30% in corporate taxes that the companies you’re investing in have already shelled out to the ATO on the profits they make.

How much to invest in ASX shares for $10,000 a year in passive income?

Now, just how much you need to invest in ASX dividend shares today to bank that $10,000 in annual passive income depends on how long you have before you plan to retire and tap into your superannuation savings.

One of the golden rules of investing is that the earlier you start, the better your results.

That’s thanks to the magic of compounding.

Here’s what I mean.

Assuming you can achieve an average dividend yield of 6.5% (as we’ll look at below), you’d need to invest $153,846 in ASX shares today to add $10,000 a year to your superannuation savings.

Now, here’s the power of compounding at work.

By investing in a combination of blue-chip stocks and ASX growth shares, I believe you can achieve an average annual return of 10.5%.

By investing just $100 a month in ASX shares, you’d then have $21,386 in 10 years, $81,860 in 20 years, and the required $153,846 somewhere in year 26.

So, what are you waiting for?

Two superannuation boosting ASX dividend shares to consider today

There are a number of quality ASX dividend shares you may wish to buy to top up your superannuation income.

Two passive income stocks you might want to dig into are ASX 200 oil and gas producer Woodside Energy Group Ltd (ASX: WDS) and ASX 300 alternative investment manager Regal Partners Ltd (ASX: RPL).

Both companies pay fully franked dividends. And, importantly, both have outperformed their benchmarks over the past year. Meaning we’re not chasing yields at the expense of capital losses.

Indeed, at the time of writing, Woodside shares have gained 13.8% over the past 12 months while the Regal Partners share price has surged 39.6%. For some context, both the ASX 200 and the ASX 300 have gained less than 5% over the past year.

As for that superannuation boosting passive income, Woodside shares trade on a 5.7% fully franked trailing dividend yield. And Regal Partners shares trade on an even juicier 7.3% fully franked trailing dividend yield.

Based on those trailing yields, an equal investment in each ASX dividend stock would then see you earning a 6.5% yield on Woodside and Regal Partners shares.

The post How I’d aim for $10,000 a year in superannuation boosting passive income buying ASX shares appeared first on The Motley Fool Australia.

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• Oil prices slump to pre-war levels as supply-risk premium evaporates
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• Why has the ASX 200 given up its early rebound today?
• 5 things to watch on the ASX 200 on Thursday
• Why Karoon Energy, Novonix, Transurban, and Woodside shares are sinking today

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.

Starting an ASX share portfolio from scratch can feel like a big decision.

I think the best approach is to start with businesses that can provide the portfolio with a strong foundation. That means looking for companies with scale, staying power, sensible growth options, and the ability to remain relevant through different market conditions.

If I were starting again today, these are five ASX 200 shares I would want on my watchlist.

BHP Group Ltd (ASX: BHP)

BHP is the kind of share I think can give a new portfolio exposure to some of the world’s most important raw materials.

Iron ore still provides major cash flow, but I think the more interesting long-term angle is how the business is being shaped around future-facing commodities. Copper, in particular, could become even more important as electricity grids, data centres, renewable energy, electric vehicles, and industrial systems require more metal.

The Jansen potash project also gives BHP another long-term growth option tied to food production and farming productivity.

BHP will always be cyclical. Commodity prices can change quickly. But I think its scale, asset quality, and capital strength make it one of the better resource shares to own over many years.

Commonwealth Bank of Australia (ASX: CBA)

Commonwealth Bank is the bank share I would start with.

CBA has a premium valuation, so I would never pretend it is the cheapest bank on the ASX. But I think it has earned its position as the highest-quality major bank.

The bank has a huge role in Australian financial life. Its customer relationships run through home loans, deposits, business banking, everyday payments, apps, merchant services, and financial tools.

That breadth is valuable because banking is becoming more digital and more data-driven. CBA’s advantage is not just that it has many customers. It is that many of those customers interact with the bank constantly.

For a new portfolio, I think that combination of scale, profitability, digital strength, and franked dividends is hard to ignore.

Hub24 Ltd (ASX: HUB)

Hub24 is the platform business I would include.

Australia has a large and growing pool of wealth, and I think the way that money is managed will keep changing. Advisers need efficient systems, clients want better transparency, and investment portfolios are becoming more tailored.

Hub24 sits inside that shift. Its platform helps advisers manage portfolios, reporting, administration, and managed accounts. That may sound technical, but the value is simple: it can save time, reduce friction, and make advice businesses easier to run.

The company is exposed to market movements, and competition is strong. But I like businesses that become part of their customers’ daily workflow. Hub24 has that quality.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is the highest-valuation stock in this group, but I still think it deserves a place.

The company provides medical imaging software through its Visage platform. Hospitals and radiology groups need systems that can handle large imaging files, support fast diagnosis, and integrate into complex clinical environments.

I like that Pro Medicus sells into a market where quality and reliability matter enormously. This is not software for a casual task. It is used in healthcare settings where speed, accuracy, and usability can make a real difference.

The risk is valuation. Expectations are high, and any disappointment could hurt the share price. But if I were starting from scratch, I would want at least one exceptional global software business in the portfolio. And with its shares down heavily from their highs, the risk/reward looks more favourable today.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is the blue-chip share I would buy.

What I like about Wesfarmers is the culture. The company has a long history of buying, building, improving, and sometimes exiting businesses when better opportunities appear elsewhere.

That discipline is valuable. Wesfarmers is not only about one retail brand or one store network. It is about management’s ability to reinvest capital, improve operations, and stay close to what customers want. Its balance sheet strength also gives it room to act when opportunities appear.

The share price can look expensive at times. But I think Wesfarmers has the type of operating discipline and long-term mindset that can help a portfolio compound steadily.

Foolish Takeaway

If I were starting an ASX 200 portfolio from scratch, I would want a mix of different strengths.

BHP brings resources exposure, CBA adds banking quality, Hub24 offers wealth platform growth, Pro Medicus provides global healthcare software, and Wesfarmers brings retail discipline and capital allocation.

No five shares can cover everything. But I think this group would give a new investor a strong starting point, with exposure to businesses that can keep adapting and creating value over time.

The post 5 ASX 200 shares I would buy if I were starting from scratch appeared first on The Motley Fool Australia.

More reading

• How to invest in ASX shares when you can’t find stocks to buy
• How I’d choose the best ASX shares I could hold for 10 years
• Where I’d invest $2,000 in ASX 200 shares
• BHP shares sink as investors react to $2.8 billion cost blowout
• Which Aussie blue-chip stock is the best performer so far in 2026?

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia, Hub24, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended BHP Group, Hub24, Pro Medicus, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telstra Group Ltd (ASX: TLS) shares have had an interesting start to 2026. 

After rallying around 18% to a 10-year high of $5.55 a piece in mid-May, the shares have cooled and fallen nearly 10% and are trading at around $5 at the time of writing.

It’s not all bad news though, Telstra shares are still higher than 12 months ago, at the time of writing.

It’s not all about share price gains and losses though, Telstra has plenty more to offer its shareholders.

What about Telstra’s passive income?

The telecommunications provider is a popular and reliable defensive ASX stock. 

It makes sense that the company has a defensive nature. After all, internet access and mobile phone connectivity are a daily necessity these days, they’re not a luxury like they once were in the past.

That means the company’s services are in demand regardless of the state of inflation or the cost-of-living.

This means Telstra shares tend to perform steadily throughout all stages of the economic cycle, which is great news for investors who want to hedge against potential volatility elsewhere in the index, too.

Its defensive nature and steady performance means Telstra is able to pay its shareholders a reliable, and constant passive income stream. What’s more, its dividend payout ratio is close to 100% of its earnings which unlocks a great dividend yield.

Telstra traditionally makes two fully-franked dividend payments to shareholders every year, payable in March and September. For FY25 the company paid investors an annual dividend of 19 cents per share. 

Earlier this year, Telstra announced that its first-half FY26 group underlying EBITDA had risen across all major business lines, mobile services revenue was 5.6% higher and group cash EBIT was 14% higher. Underlying operating expenses were also reduced by 2.4%. 

And this meant the telco was able to hike its interim dividend by 5.25% for the first half of FY26, and pay its shareholders 10.5 cents per share, 90.48% franked, in March.

Telstra is forecast to pay a total 20 cent dividend per share in FY26, and then 21 cents in FY27.

At the time of writing, these forecasts translate to a forward dividend yield of around 3.9% for FY26, and just roughly 4.1% for FY27.

What’s next for Telstra shares?

Analysts are unanimously neutral about the outlook for Telstra shares over the next year.

TradingView data shows all 12 analysts have a hold rating on the telco, but the average $5.25 target price still implies a potential 3% upside ahead.

The post Should I buy Telstra shares for passive income? appeared first on The Motley Fool Australia.

More reading

• How to invest in ASX shares when you can’t find stocks to buy
• Here are my 5 best ASX passive income stocks
• 5 years ago, $10,000 bought 2,801 Telstra shares. But how many would it buy now?
• Which is better: A 4% dividend yield or a 5% term deposit?
• How much is needed in superannuation to target an $8,000 monthly passive income?

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.

As you enter your 40s, it’s a great time to have a look at your superannuation balance and see if you’re heading in the right direction.

With two decades at least up your sleeve there’s plenty of time to make some changes and get your super on the right track, even if it’s something you’ve not previously given a great deal of thought to.

Australians’ super balances generally looking pretty healthy

How do I know? By looking at the numbers.

It turns out that on average, Australians are ahead of where they need to be by age 40 to set themselves up for what the Association of Superannuation Funds of Australia (ASFA) deems a comfortable retirement.

The most recent figures for the 40-44 age bracket published by ASFA show that on average, males have a superannuation balance of $140,680, while females have $109, 209.

Compare that to new figures out this week from ASFA which indicate that for someone earning $100,000 per year, a 40 year old only needs $98,000 in their super to consider themselves on track for a comfortable retirement.

And the amount we need for a comfortable retirement is less than many of us think, with the figure sitting at $730,000 for a couple and $630,000 for a single.

This is despite 42% of people polled by ASFA believing they needed more than $1 million to retire comfortably.

How to play catch up

So what if you’ve seen these figures and thought, my superannuation could do with a top up?

There is one key strategy that you could look into before the end of the financial year, which has the potential to both reduce your taxable income and boost your superannuation savings.

It is possible to make concessional contributions into your superannuation, which include the pre-tax payments made by your employer.

Each year you are allowed to make concessional contributions of up to $30,000. Extra contributions made beyond what your employer contributes can serve to reduce your tax load, as contributions are taxed at 15%.

In terms of figuring out how much extra you can put into your super in this way, it is possible to keep track of your concessional contributions by using the Australian Taxation Office’s online services.

Your superannuation fund might also be able to show you where you stand with regards to concessional contributions.

If you do put extra into your super and want it to be a concessional contribution, you need to also lodge a notice of intent to claim, which alerts your super fund that it is a concessional contribution and they will take the 15% tax out as necessary.

This is necessary as it is also possible to make non-concessional contributions of up to $130,000 per year.

It is also possible to make concessional contributions above the $30,000 cap, which is explained further in this article.

The post At 40 how does your superannuation balance compare? It might be time for a tune up appeared first on The Motley Fool Australia.

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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 post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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

It has been a busy week for many of Australia’s top brokers. This has led to a number of broker notes hitting the wires.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone right now:

Flight Centre Travel Group Ltd (ASX: FLT)

According to a note out of Morgans, its analysts have retained their buy rating on this travel agent’s shares with an improved price target of $14.80. Morgans notes that given recent downgrades from other travel industry peers due to the conflict in the Middle East, it wasn’t surprised to see Flight Centre downgrade its earnings guidance. The broker believes that if it were not for the conflict, FY 2026 would have had a great year given its results for the first nine months were strong. Looking ahead, Morgans is positive on Flight Centre’s outlook and expects a strong rebound in the second half of FY 2027. As a result, it thinks investors should be buying Flight Centre shares while they are down, noting that when operating conditions ultimately improve, both its earnings and share price will be materially higher. The Flight Centre share price is trading at $11.97 on Friday.

Santos Ltd (ASX: STO)

A note out of Citi reveals that its analysts have retained their buy rating on this energy giant’s shares with a reduced price target of $8.50. The broker has lowered its earnings estimates for energy stocks to reflect softer oil price assumptions after the Strait of Hormuz reopened following a US-Iran peace deal. Citi believes that there will be a sizeable oil surplus by 2027, which will weigh on oil prices. However, it remains positive on Santos and highlights that its shares trade at a discount to its larger rival Woodside Energy Group Ltd (ASX: WDS) but believes this valuation discount could narrow in the future. The Santos share price is fetching $7.31 at the time of writing.

Seek Ltd (ASX: SEK)

Analysts at Bell Potter have retained their buy rating and $18.60 price target on this job listings company’s shares. According to the note, the broker has been looking at industry data and appears positive. It believes that when interest rates start to fall, Seek will start outperforming like it did in previous cycles. Outside this, the broker believes AI disruption concerns are overdone and highlights its underlying proprietary data (~750m points per day) as a reason to be positive. Bell Potter notes that a lot of this is traffic metadata which is unable to be scraped by third parties, is valuable for targeted job placements, and should support yield through soft volume environments. The Seek share price is trading at $13.50 this afternoon.

The post Brokers name 3 ASX shares to buy right now appeared first on The Motley Fool Australia.

More reading

• Oil prices slump to pre-war levels as supply-risk premium evaporates
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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in 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 recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There aren’t many ASX income stocks left on the Australian share market with a dividend yield above 4%.

You can rule out Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), Coles Group Ltd (ASX: COL), Woolworths Group Ltd (ASX: WOW), Wesfarmers Ltd (ASX: WES), and many others.

Even fewer still yield 4% or more, and pay out monthly dividends. But let’s talk about one ASX income stock that ticks all of those boxes.

Well, technically, it is not a stock, but an exchange-traded fund (ETF). But income investors, don’t let that put you off the BetaShares S&P Australian Shares High Yield ETF (ASX: HYLD).

Like most ASX ETFs, HYLD allows investors to indirectly own a piece of an underlying portfolio of assets. In this case, this portfolio consists solely of other ASX income stocks – about 50 to be precise.

This portfolio concentrates on the highest-yielding sectors of the ASX, so investors shouldn’t be surprised to see that bank shares make up about 40% of HYLD’s weighted portfolio. But this ETF also holds ASX income stocks from other corners of the market, ranging from mining and energy to consumer staples and utilities.

At present, the income stocks that take up the most room in the Betashares Australian Shares High Yield ETF include BHP Group Ltd (ASX: BHP), ANZ Group Holdings Ltd (ASX: ANZ), Macquarie Group Ltd (ASX: MQG), Rio Tinto Ltd (ASX: RIO), and Transurban Group (ASX: TCL).

But let’s talk about what kind of income this stock could provide.

An ASX monthly income stock with a 4.2% yield?

The HYLD ETF has only been around on the ASX for a relatively short period of time. It first floated on the ASX back in August of last year.

Since then, this fund has doled out ten dividend distributions on its monthly pay schedule. The last four of these payments were worth 11.7 cents per unit each. The first six came in at 11.9 cents.

If we annualise the former metric, just to be conservative, we get a figure of $1.40 per unit in dividend distributions. At the current HYLD unit price, that gives this ASX income stock a trailing yield of 4.21%. Due to the varied nature of the portfolio, these dividend distributions usually come partially franked at varying degrees.

Now, as with any ASX dividend stock, we shouldn’t assume this is the yield one can expect going forward. However, we can say that, given the nature of HYLD’s portfolio, the yield from this stock should continue to come in at the upper end of what the broader ASX is offering.

As such, I think the Betashares Australian Shares High Yield ETF is an income investment well worth considering for any dividend seeker in 2026.

The post This ASX income stock has a 4.2% yield and pays out monthly dividends appeared first on The Motley Fool Australia.

More reading

• 5 steps to bring in $1,000 per month in passive income

Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group and Transurban Group. The Motley Fool Australia has recommended BHP Group, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I must admit, I’ve had a hard time finding quality ASX stocks at cheap prices to buy in recent months. And I’m sure I’m not alone.

Most of my favourite ASX stocks, namely Washington H. Soul Pattinson and Co Ltd (ASX: SOL), MFF Capital Investments Ltd (ASX: MFF) or Wesfarmers Ltd (ASX: WES) are either approaching their record highs, or just look prohibitively expensive.

Other options, particularly dividend stocks like Telstra Group Ltd (ASX: TLS), Coles Group Ltd (ASX: COL), or Commonwealth Bank of Australia (ASX: CBA), aren’t offering much, at least relatively speaking, in dividend income potential. As a result, I’ve found little reason to buy.

As an investor who attempts, with varying degrees of success, to follow Warren Buffett’s value investing style, this makes life difficult. After all, Buffett teaches us that merely finding high-quality, moat-protected companies doesn’t make for a compelling investment. You also have to buy those stocks at what Buffett’s late right-hand man Charlie Munger once called “prices that make sense”.

So, what’s an investor to do when facing this devilish conundrum?

Investing when you don’t know which ASX stocks to buy

I think ASX investors have three choices if hamstrung by the current market conditions.

The first is just continuing to look under more and more proverbial rocks for investing opportunities. Just because the blue chips of the ASX are pricey doesn’t mean every single stock on the market is expensive to buy too. You never know when you might find a stock with potential to buy that the broader market has missed. One could even extend that to the US markets, or other international stock exchanges, if one has the appetite.

If that all sounds a bit tricky, I don’t think there’s anything wrong with investing in cash assets at this point in time. Cash assets like term deposits, savings accounts or cash-based exchange-traded funds (ETFs) haven’t looked this good in years. With interest rates at levels unseen for most of the past decade, you can lock in a risk-free return of over 5% right now on many cash assets. That’s not a bad return for a zero-risk investment.

Finally, investors can consider index funds. Yes, index funds rise and fall with the broader market, and as such, are quite pricey right now. But I think a period, passive investing strategy, ideally using dollar-cost averaging, works in any investing environment, provided the investor keeps a long-term mindset. Plus, I always say that, given markets go up far more often than they go down, it’s not a terrible idea to keep investing in index funds when they are at, or near, all-time highs.

The post How to invest in ASX shares when you can’t find stocks to buy appeared first on The Motley Fool Australia.

More reading

• Here are my 5 best ASX passive income stocks
• How I’d choose the best ASX shares I could hold for 10 years
• Where I’d invest $2,000 in ASX 200 shares
• Woolworths shares vs Coles: Buy, hold, or sell these ASX giants?
• Which Aussie blue-chip stock is the best performer so far in 2026?

Motley Fool contributor Sebastian Bowen has positions in Mff Capital Investments, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. 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, 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.

Wilson Asset Management says proposed changes to capital gains tax (CGT) will encourage investors into higher-yielding assets.

In the share market, that means ASX dividend shares, especially those that offer high franking, over ASX growth shares.

Under the changes announced in the Federal Budget, the 50% CGT discount for assets held longer than 12 months will be replaced by a cost base inflation indexation method from 1 July next year, and a minimum 30% CGT rate will apply.

While existing investments will be grandfathered, so the 50% CGT discount will continue to apply to gains before 1 July 2027, the rules change after that date.

That means existing investors will pay CGT based on two sets of calculations: pre-1 July 2027 gains using the 50% discount, and post-1 July 2027 gains using the inflation-indexed method.

Wilson Asset Management’s view

Wilson advocated for keeping the CGT discount for ASX shares and all other assets except investment property.

In a submission to a Senate enquiry, Wilson explained that “capital flows toward the highest after-tax risk-adjusted return”.

‘After-tax’ is the key term there.

Wilson said retail investors were likely to gravitate toward higher-yielding assets offering passive income if they have to pay more CGT.

The fundie said:

By increasing the tax burden on long-term capital gains while leaving income-producing assets comparatively more attractive, the Bills will, over time, redirect Australian savings away from growth companies, founders, venture capital and productive enterprise, and toward yield-producing assets that generate income.

Wilson manages about $6 billion for 130,000 Australian investors who own shares in its ASX listed investment companies (LICs).

Those LICs include WAM Capital Ltd (ASX: WAM), WAM Leaders Ltd (ASX: WLE), and WAM Research Limited (ASX: WAX).

Wilson said the changes would discourage investment, entrepreneurship, and economic growth, and “alter investor behaviour”.

Capital will increasingly favour mature yield-producing assets rather than growth-oriented investments whose returns are realised predominantly through future capital appreciation.

Currently many of Australia’s most successful businesses generate limited income in their formative years.

Investors accept risk in exchange for the prospect of long-term capital growth. The proposed tax changes reduce that outcome.

The consequence of this will be a gradual reallocation of capital … toward assets producing immediate taxable income.

Chairman and Chief Investment Officer of Wilson Asset Management, Geoff Wilson AO, also appeared before the committee.

In his speech, Wilson said:

Australia’s prosperity has always depended on a simple idea: that if people work hard, save carefully and take considered risks with their capital, they can build a better future for themselves and their families.

We believe this legislation weakens that social contract.

ASX dividend shares will become more appealing: experts

Wilson Asset Management is among many professional managers who say the proposed CGT tax changes will encourage investors to pursue ASX dividend shares over ASX growth shares.

Wealth and investment advisory firm Medallion says:

At a high level, the changes tilt the playing field toward yield.

If a larger portion of capital gains is taxed away, the after-tax return profile of growth assets; equities, start-ups, and expansionary investments becomes less compelling.

In contrast, income streams such as dividends retain their relative appeal, particularly where they are franked.

Market Partners analysts James Gerrish and Shawn Hickman said income investments were already more appealing in today’s economic environment.

In a webinar presentation, they said:

Sticky inflation, higher rates and geopolitical uncertainty all increase the value of tangible cash flow today.

So, when the proposed CGT changes are added on top, they concluded:

Growth still has a role, but strategies that rely heavily on after-tax capital gains look relatively less attractive.

The post Wilson Asset Management says CGT tax changes will ‘redirect’ investment toward yield appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy right now
• This ASX income stock has a 4.2% yield and pays out monthly dividends
• How to invest in ASX shares when you can’t find stocks to buy
• Here are my 5 best ASX passive income stocks
• Why Aeris, Newmont, PLS, and REA Group shares are tumbling today

Motley Fool contributor Bronwyn Allen has positions in Wam Capital. 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.

If passive income were the goal, I would want ASX shares backed by robust cash flows.

I would be asking whether the business sells something people keep using, owns assets that are hard to replace, or serves customers that need its products in good times and bad.

With that in mind, these are five ASX passive income stocks I would consider buying.

Telstra Group Ltd (ASX: TLS)

Telecom giant Telstra is one of the first names I would look at for passive income.

The company’s biggest strength is its role in everyday life. Mobile connectivity is now essential for households, businesses, payments, entertainment, travel, security, and work.

That gives Telstra a level of repeat demand that many businesses would love.

I also like its leadership position in mobile. Network quality still counts, and Telstra has the scale to keep investing in coverage, capacity, and technology upgrades.

For income investors, the attraction is the mix of defensive earnings, a strong brand, and a dividend profile that has become easier to understand in recent years.

APA Group (ASX: APA)

APA is another passive income stock I would be happy to own.

The business owns energy infrastructure that helps keep Australia running. Its pipelines, processing assets, storage assets, power generation, batteries, and transmission infrastructure all play a role in energy supply.

That infrastructure base is the appeal. These are long-lived assets, and they are difficult to replicate quickly. Australia’s energy system is also becoming more demanding as the country tries to balance reliability, affordability, and lower emissions.

Debt and interest rates need watching, as with any infrastructure-style business. But for long-term income, I think APA has useful qualities.

Amcor plc (ASX: AMC)

Amcor gives investors a different type of income exposure.

The company supplies packaging and dispensing solutions across food, beverages, healthcare, beauty, wellness, and other consumer categories.

That may sound simple, but packaging is part of a huge number of everyday products. Food needs protection. Medicines need safe packaging. Consumer brands need containers, cartons, closures, and flexible packaging that work properly and meet changing sustainability expectations.

Amcor’s global footprint gives it spread across customers, countries, and end markets. It still faces risks from input costs, currencies, debt, and customer demand, but I like the repeat-use nature of what it provides.

Transurban Group (ASX: TCL)

Transurban is one of the more interesting infrastructure-style income shares on the ASX.

Its toll roads are woven into major cities, particularly in Australia and North America. These assets are valuable because they sit on transport corridors that are hard to duplicate.

Traffic volumes can shift with the economy, work patterns, fuel prices, and population growth. But over long periods, well-located urban roads can remain important pieces of infrastructure.

The business is capital intensive, so debt always deserves attention. Still, I think Transurban has several income-friendly traits: scale, scarcity, regular usage, and exposure to growing cities.

BWP Group (ASX: BWP)

BWP Group is a property name I would include.

It owns a portfolio of large-format retail properties, with a strong connection to Bunnings-leased assets. That gives it exposure to a tenant and category with a long record of relevance to Australian consumers.

Hardware, renovation, trade, gardening, and home improvement spending can move with the cycle, but well-located large-format sites remain valuable.

For passive income investors, I think the attraction is the simplicity of the model. BWP owns physical properties, collects rent, and distributes income to investors.

Foolish takeaway

Passive income investing works best when the dividend has something solid behind it.

That is what I like about this group. These companies touch communications, energy, packaging, transport, and property, giving investors exposure to different parts of the economy that people and businesses continue to use.

They are not risk-free, and issues such as debt, regulation, inflation, and interest rates always need watching. But if I were building an ASX portfolio for passive income, I would want businesses with staying power rather than just big yields.

These five stocks fit that brief for me.

The post Here are my 5 best ASX passive income stocks appeared first on The Motley Fool Australia.

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• Where to invest $10,000 in ASX dividend shares

Motley Fool contributor Grace Alvino has positions in Transurban Group. 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 Amcor Plc, Apa Group, Telstra Group, and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.