Author: openjargon

National Australia Bank Ltd (ASX: NAB) shares have pulled back meaningfully from their highs.

The bank’s shares are trading around $37.15 at the time of writing, well short of their 52-week high of $49.45.

That recent weakness is not hard to understand. The economic outlook is uncertain following several interest rate hikes and the property market is cooling in response to the Federal Budget.

But at today’s price, I think NAB shares are starting to look attractive for investors considering putting $5,000 to work.

The valuation looks reasonable

The first thing that stands out is the valuation. According to CommSec, NAB is expected to generate earnings per share of $2.43 in FY26 and $2.62 in FY27.

Based on the current share price, that puts the bank on roughly 15 times FY26 earnings and about 14 times FY27 earnings.

That does not look stretched to me for one of Australia’s largest banks.

The dividend outlook also looks appealing. CommSec has NAB paying dividends per share of $1.72 in FY26 and $1.78 in FY27. At the current share price, that implies dividend yields of about 4.6% and 4.8%, respectively.

Those dividends are expected to be fully franked, which could make the income even more attractive for some Australian investors.

Of course, yield alone is not enough. A bank still needs sound credit quality, disciplined lending, strong deposits, and enough capital to support the payout. But I think NAB delivers on all these.

A business bank, not just a mortgage stock

The housing market is clearly important for the major banks. If buyer demand weakens, transaction volumes slow, and mortgage growth becomes harder to find, that can weigh on sentiment toward the sector.

But NAB has an important point of difference: business banking. In its recent half-year update, Business and Private Banking generated $1.85 billion of cash earnings excluding large notable items. That was around half of the group’s cash earnings on the same basis.

That is a meaningful contribution. It means NAB is not simply dependent on the household mortgage cycle. The bank has large exposure to businesses that need loans, deposits, transaction banking, working capital, merchant services, and advice through changing conditions.

That does not remove risk. If the economy weakens, business customers can also come under pressure. But I think NAB’s business banking strength gives it a broader earnings base than investors may appreciate when the market is focused mainly on housing.

Foolish Takeaway

I think NAB shares are worth considering at current levels.

The housing market backdrop is not perfect, and investors should expect some uncertainty to continue. But the share price has already fallen a long way from its 52-week high, and the valuation now looks much more reasonable.

What makes NAB particularly interesting to me is the business banking exposure. If mortgage lending becomes more difficult, that part of the group could help support earnings and give the bank more than one path to growth.

So, would I invest $5,000 into NAB shares? At today’s price, I would be comfortable doing so as part of a diversified ASX share strategy.

The post Should I invest $5,000 into NAB shares? appeared first on The Motley Fool Australia.

More reading

• What does the RBA decision mean for the big four bank shares?
• What are the big four banks expecting at tomorrow’s RBA cash rate meeting?
• Buying ASX 200 bank stocks like Westpac and CBA shares? Here’s why these funds are betting against you
• How many NAB shares do I need to buy for $10,000 of passive income?
• NAB and ANZ shares: One I’d hold and one I’d sell

Motley Fool contributor Grace Alvino 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 Flight Centre Travel Group Ltd (ASX: FLT) share price is in focus today after the company updated its FY26 profit guidance and announced a new $200 million on-market share buy-back. FLT now expects underlying profit before tax (UPBT) of $275 million to $295 million—roughly in line with last year’s $286 million result.

What did Flight Centre Travel Group report?

• FY26 UPBT guidance revised to $275m–$295m (FY25: $286m), down from the previous $310m–$345m target
• Conflict in the Middle East is expected to reduce Q4 leisure earnings by around $50m
• Corporate business remains strong, set for year-on-year profit growth
• Adverse FX impacts of $5m–$10m expected due to a stronger Australian dollar
• Up to $200 million on-market share buy-back to commence

What else do investors need to know?

Flight Centre says the downward revision is due to temporary, conflict-driven disruption—mainly hitting international leisure travel in the fourth quarter. The recently agreed Middle East peace deal should help conditions recover going into FY27, but it won’t have much impact on the current year given the timing.

The company’s global corporate division is less affected and continues to deliver strong profit growth. Cost-saving initiatives are underway, including discretionary spending cuts and a pause on non-essential hiring, balanced with ongoing investment in growth sectors like luxury, cruises, and tours.

What did Flight Centre Travel Group management say?

Managing director Graham Turner said:

The change in our short-term expectations reflects a temporary, conflict-driven headwind layered over what was shaping as a very solid year.

It has been driven by an external shock – the Middle East conflict disrupting peak leisure travel – not by a deterioration in our underlying business. Group-wide, the company delivered almost 10% UPBT growth across the first three quarters of FY26, accelerating to ~20% growth during Q3. Even after absorbing Q4 disruption, the group still expects an underlying profit broadly in line with FY25. Looking ahead, we have strong foundations and growth prospects in both the leisure and corporate sectors. This is reflected in the Board’s decision to launch a new up-to-$200m buy-back – which clearly signals that we see our shares as undervalued at current levels.

What’s next for Flight Centre Travel Group?

Flight Centre is rolling out a number of AI-driven initiatives to boost productivity and enhance customer experience, including new corporate travel assistants and smarter leisure booking tools. The company is staying disciplined on costs while continuing to invest in high-potential areas like cruise, tours, and loyalty programs.

Looking ahead to FY27, management is optimistic, expecting a rebound as travel patterns normalise and peace returns to the Middle East. The newly announced share buy-back signals confidence in Flight Centre’s medium-term growth profile.

Flight Centre Travel Group share price snapshot

Over the past 12 months, the Flight Centre shares have declined 6%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Flight Centre updates profit guidance; unveils $200m buy-back appeared first on The Motley Fool Australia.

More reading

• Meet the $1 ASX stock that’s obliterated Nvidia in the last 12 months
• Fletcher Building tips stable FY26 as divestments strengthen balance sheet
• 5 things to watch on the ASX 200 on Wednesday
• 6 ASX 200 shares with fresh buy ratings this week
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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. 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.

If I had $2,500 to invest in Vanguard exchange-traded funds (ETFs), I would look for exposure to parts of the global market that are harder to capture through ASX shares alone.

Australia has plenty of high-quality businesses. But some of the biggest long-term opportunities are tied to regions, industries, and companies that sit well beyond the local market.

With that in mind, there are two Vanguard ETFs I would consider buying.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

The first ETF I would buy is the Vanguard FTSE Asia Ex-Japan Shares Index ETF.

I like this fund because it gives investors a different type of global exposure. Many international ETFs are heavily weighted to the United States. That is not a bad thing, given the quality of many US companies. But I think investors can benefit from having exposure to Asia as well.

This part of the world is home to large populations, rising middle-class spending, major technology platforms, financial services groups, advanced manufacturing, and important semiconductor supply chains.

The VAE ETF gives investors access to companies across markets such as China, Taiwan, India, South Korea, Hong Kong, Singapore, and other parts of the region. That mix can add something quite different to a portfolio.

It is worth remembering that Asian markets can be affected by regulation, politics, currency movements, trade tensions, and shifts in global investor appetite. This could mean that some years could be frustrating. But I think the long-term case remains attractive.

Asia is likely to remain a major driver of global economic growth. Consumers in the region are spending more, companies are becoming more sophisticated, and several markets have industries that are difficult to replicate elsewhere.

For investors with patience, I think this Vanguard ETF offers a great way to own a broad slice of that opportunity without trying to pick individual winners.

Vanguard Global Technology Index ETF (ASX: VTEK)

The second ETF I would buy is the Vanguard Global Technology Index ETF.

Technology is one of the areas where I think global exposure is particularly useful.

The ASX has some strong technology names, but the deepest pool of global technology leaders sits overseas. This Vanguard ETF gives investors access to companies involved in semiconductors, software, cloud computing, digital platforms, artificial intelligence (AI), payments, hardware, and communications technology.

What I like about this fund is that it is not just about one hot trend. Technology keeps spreading into more parts of the economy, from the software banks use to manage security and payments to the digital platforms retailers need for online sales, logistics, and customer data. Healthcare, manufacturing, and consumer services are also becoming more dependent on chips, cloud infrastructure, automation, and connected devices.

That gives the sector several paths for long-term growth.

The VTEK ETF can also help investors avoid the pressure of choosing one technology winner. That is important because the industry changes quickly. Today’s leader may not always be tomorrow’s strongest performer.

By owning a basket of global technology companies, investors can gain exposure to the broader direction of the sector rather than relying on one stock to get everything right.

Foolish takeaway

If I were putting $2,500 into Vanguard ETFs, I would want more than broad exposure for the sake of it.

I would want funds that open the door to markets and industries where long-term growth could be substantial, but where picking individual winners can be hard. Asia and global technology both fit that description for me.

Both ETFs will have weak periods. But for investors willing to look beyond the ASX and think in decades, I think they could be excellent options to buy and hold.

The post Why I’d put $2,500 into these top Vanguard ETFs appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs I’d buy if I wanted easy global investing
• Why I’d buy these Vanguard ETFs with $3,000 in June
• 3 ASX ETFs I’d buy to build a portfolio from scratch
• 3 top ASX ETFs for Gen Z investors to buy
• Why I’d buy these ASX ETFs if I were a beginner

Motley Fool contributor Grace Alvino 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.

Nvidia Corp (NASDAQ: NVDA) shares have delivered strong returns in the last 12 months, but there are ASX stocks that have outperformed the US giant that’s key to enabling AI. The Australian share I want to highlight is L1 Group Ltd (ASX: L1G), which has a share price of around $1.

At the time of writing, in the last 12 months, Nvidia shares have gone up by 47%, while the L1 Group share price has jumped by 108%.

Why has the ASX stock risen so much?

I believe a significant portion of the return can be put down to the acquisition of/merger with Platinum Asset Management. Investors are much more excited about the outlook of the business under L1’s management than Platinum.

L1 has an impressive track record, delivering outperformance with its ASX shares, global shares and gold shares strategies, with each of those significantly outperforming the S&P/ASX 200 Index (ASX: XJO) since the inception of those respective strategies.

Having a good investment performance as a fund manager is integral for a couple of key reasons. Firstly, it organically helps a fund manager grow their funds under management (FUM) – an essential driver of revenue and earnings.

Additionally, great fund performance can help attract new FUM inflows, further boosting the ASX stock’s FUM.

One of the latest moves by the business was to launch the listed investment company (LIC) L1 Gold Fund (ASX: LGF), which raised $950 million and started trading on the ASX in April. This helps lock in more funds within a closed structure, as opposed to exchange-traded funds (ETFs) which are open-ended where it’s easy for clients to permanently remove FUM from a fund manager. Shares of LICs are sold from one investor to another – the FUM still exists.

Out of L1 Group shares or Nvidia shares, I think I’d prefer the funds management business.

Excellent outlook

Nvidia is certainly a great business, operating at the pinnacle of one of the strongest growth areas of the global economy right now.

But, it’s worth asking how much more demand can continue increasing from where it is today and what the price/earnings (P/E) ratio is implying.

L1 Group points to a number of appealing growth areas including growth of existing funds through performance and flows, extension of strategies from the existing investment team (such as L1 Global Long Short Fund Ltd (ASX: GLS) ), joint ventures and potentially further acquisitions of existing fund managers.

Further growth of the ASX stock’s profit could be boosted following the integration of Platinum and the synergies that’s expected to deliver.

According to the forecast on Commsec, the ASX stock is valued at less than 20x FY27’s estimated earnings, with FY27 profit projected to rise by approximately 25% year-over-year compared to the forecast for FY26.

The post Meet the $1 ASX stock that’s obliterated Nvidia in the last 12 months appeared first on The Motley Fool Australia.

More reading

• Flight Centre updates profit guidance; unveils $200m buy-back
• Fletcher Building tips stable FY26 as divestments strengthen balance sheet
• SpaceX shares are rocketing – how can Aussie investors get exposure?
• 5 things to watch on the ASX 200 on Wednesday
• 6 ASX 200 shares with fresh buy ratings this week

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A $2,000 monthly passive income stream would be useful for many investors.

It could help cover groceries, utilities, insurance, travel, or part of a mortgage. It could also make retirement feel a lot more comfortable.

But how could an investor realistically build it? Let’s dig deeper into things.

Build the passive income machine

Aiming for $2,000 a month means aiming for $24,000 a year in passive income.

If an investor can build a portfolio with an average dividend yield of 5%, they would need approximately $480,000 invested to generate that level of income.

However, it is worth noting that ASX dividends do not usually arrive neatly every month. Many companies pay dividends twice a year, while some trusts and ETFs pay quarterly or monthly distributions. So this is best viewed as an average monthly income target, not a monthly payment schedule.

There are a number of ASX income options that could help investors achieve a dividend yield around this level.

This includes HomeCo Daily Needs REIT (ASX: HDN), which offers exposure to everyday-needs property assets and Universal Store Holdings Ltd (ASX: UNI), which offers a higher-yielding retail option.

In addition, APA Group (ASX: APA) is a high-yield option that provides exposure to energy infrastructure, and Harvey Norman Holdings Ltd (ASX: HVN) can offer attractive fully franked dividends when conditions support them.

Investors could also look at an income-focused ETF such as the Vanguard Australian Shares High Yield ETF (ASX: VHY), which provides exposure to a basket of higher-yielding ASX shares.

But it is important to note that a dividend yield should never be the only consideration. A 5% target is useful, but the income still needs to be sustainable. Dividends can be cut, distributions can change, and share prices can fall.

That is why a passive income portfolio should be built around quality, diversification, and financial strength, not just the highest yield on the screen.

What if you are starting from zero?

Of course, many investors will not have $480,000 ready to invest.

That changes the game. The first goal is not to generate the income immediately, it will be to build the capital base that can later produce the income.

This is where regular investing can do the heavy lifting.

If an investor starts from zero, invests $1,000 a month, and achieves an average annual return of 10%, they could build a portfolio worth approximately $480,000 in just over 16 years.

That return is not guaranteed, but it is in line with historical returns.

Which shares should you buy at this stage?

Dividend shares may not be the best way to deliver on our target return. High-yield shares can be useful once the income portfolio is built, but they may not deliver the strongest total returns during the accumulation phase.

Instead, investors may want to focus on quality ASX shares that can compound over time.

That could include Goodman Group (ASX: GMG), which has exposure to logistics, industrial property, and data centres, and Wesfarmers Ltd (ASX: WES), which has a strong portfolio of retail and industrial businesses.

In addition, tech stocks WiseTech Global Ltd (ASX: WTC) and Xero Ltd (ASX: XRO) could be great long-term options for Aussie investors.

The idea is to build the engine first. Once the portfolio reaches the required size, investors can gradually shift more attention toward income, dividends, and cash flow.

That may not happen overnight. But with patience, regular investing, and a focus on quality, a $2,000 monthly passive income stream from ASX shares can become a realistic long-term goal.

The post How to make $2,000 of monthly passive income from ASX shares appeared first on The Motley Fool Australia.

More reading

• Forget CBA and buy these ASX dividend shares
• 2 ASX shares with dividend yields above 8%
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• Which is better: A 4% dividend yield or a 5% term deposit?
• Down 46%: What should I do with my WiseTech shares now?

Motley Fool contributor James Mickleboro has positions in Goodman Group, Universal Store, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Wesfarmers, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Apa Group, Harvey Norman, WiseTech Global, and Xero. The Motley Fool Australia has recommended Goodman Group, HomeCo Daily Needs REIT, Universal Store, Vanguard Australian Shares High Yield ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I’ve been investing in ASX shares for years now, longer than I care to admit to be frank. It has been one of the most rewarding experiences of my life, not just financially, but intellectually too.

Investing in shares can never truly be mastered. Even Warren Buffett freely admitted to making mistakes late in his career at Berkshire Hathaway. The constant journey of learning keeps one on their toes, and, although mistakes can have a real financial impact, they are part of that ultimately rewarding learning curve too.

I have made more than a few mistakes when it comes to ASX share investing over the years. Some of the most egregious include buying Slater & Gordon shares only to see the company go bankrupt, and participating in the Raiz Invest Ltd (ASX: RZI) IPO and getting wiped out.

But today, I’d rather discuss one of the challenges of investing that I have had to overcome. This challenge will confront everyone who buys ASX shares, and can either make or break your portfolio and your long-term returns.

This challenge is not learning how to decipher a balance sheet, or knowing which sticks will shoot the moon. It is far more simple than that. It is the simple act of doing nothing.

One of the most under-appreciated aspects of investing is that the act of buying an owning shares seems to elicit a need to attend to them. To buy more or sell down, to move our money around and ‘react’ with agility to whatever is happening in the world.

When Donald Trump announced a tentative peace deal, all we hear is that investors are buying shares like crazy. Conversely, we investors are the first to hear about “$50 billion wiped off the share market as US-Iran war escalates”.

The hardest part of investing in ASX shares

This implies that we, as investors, should be doing something similar. Surely one isn’t a real investor if one isn’t constantly dipping in and out of shares. Or selling high, buying low, pruning their portfolios, or even jumping into the latest IPO.

If your job is trading stocks or assets, then this might be acceptable. But for the average investor who just wishes to slowly-but-surely build wealth by investing in Australian businesses over long periods of time, I am of the firm belief that less is more. Quality businesses adapt to their circumstances. They tend to survive when times are tough, and thrive when the proverbial sun is shining.

To be a successful investor means trusting the companies themselves to deliver, not that the market will always give you the stock price you might want to see. As Warren Buffett once said:

If you have to closely follow a company, you shouldn’t own it… If you buy a farm, do you go and look every couple of weeks to see how far the corn is up, or whether people say this might be a year of low prices? No, you buy a farm and hold it. I bought a farm in the ’80s and I’ve been there once. It doesn’t grow faster if I go there and stare at it or cheer for it.

I think most ASX share investors, and especially those who just invest in index funds, should adopt this attitude. Trading based on what is happening around the world will almost certainly whittle down your capital and returns.

Sure, if a company is fundamentally disrupted or makes a calamitous management error, you may want to think about selling its shares. Just as Buffett would for his farm if it was discovered that corn was somehow carcinogenic.

However, most of the time, doing nothing is probably the right course of action. Even if it can be the hardest course to take.

The post The hardest part of ASX share investing (that no-one talks about) appeared first on The Motley Fool Australia.

More reading

• Flight Centre updates profit guidance; unveils $200m buy-back
• Why I’d put $2,500 into these top Vanguard ETFs
• Meet the $1 ASX stock that’s obliterated Nvidia in the last 12 months
• How to make $2,000 of monthly passive income from ASX shares
• Fletcher Building tips stable FY26 as divestments strengthen balance sheet

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

The Fletcher Building Ltd (ASX: FBU) share price is in focus as the company expects FY26 EBIT of $375–$380 million, helped by $40 million in property deal profits.

What did Fletcher Building report?

• FY26 forecast EBIT: $375 million to $380 million, excluding discontinued operations
• Includes about $40 million of earnings from property sales
• Six recent divestments and property sales to deliver around $450 million in cash
• Net debt forecast to sit marginally above the mid-point of the $400–$900 million target range at 30 June 2026
• Moody’s credit rating to be withdrawn following balance sheet improvements

What else do investors need to know?

Fletcher Building has completed or agreed to six asset sales since the start of 2026, including divestments of its New Zealand construction business and several properties in Australia. The transactions, expected to yield about $450 million in net cash, will help pay down debt and simplify operations.

Management spotlighted steady demand in ongoing construction projects, but rising fuel and input costs are causing delays and some cancellations—especially in commercial projects. Fletcher Building cautions these pressures may affect performance in the first half of FY27.

What’s next for Fletcher Building?

The company is advancing its strategy to reduce debt and focus on core businesses after recent divestments. With a more stable and simplified capital structure, Fletcher Building aims to maintain investment-grade credit metrics, even after withdrawing its Moody’s credit rating.

Looking ahead, the company will keep a close eye on volatile trading conditions and cost pressures, especially in the commercial construction sector. Fletcher Building expects subdued new project activity could affect performance into FY27 if current trends persist.

Fletcher Building share price snapshot

Over the past 12 months, Fletcher Building shares have declined 11%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Fletcher Building tips stable FY26 as divestments strengthen balance sheet appeared first on The Motley Fool Australia.

More reading

• Flight Centre updates profit guidance; unveils $200m buy-back
• Meet the $1 ASX stock that’s obliterated Nvidia in the last 12 months
• 5 things to watch on the ASX 200 on Wednesday
• 6 ASX 200 shares with fresh buy ratings this week
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Australian Age Pension is one of the most generous in the world, but I’d rather rely on quality, high-yield ASX dividend stocks.

I appreciate owning businesses that are able to offer a good level of passive income and payout growth over time.

Future Generation Australia Ltd (ASX: FGX) is one of the ASX dividend stocks I’d be comfortable relying on, though not the only one. I believe it’s essential to have a diversified portfolio when it comes to dividends.

There are a few aspects that make Future Generation Australia an appealing option.

Diversification

If I were to rely on an ASX dividend stock to continue paying passive income across all economic conditions, I’d pick an investment with the ability to pay resilient passive income.

Older Australians relying on dividend income from the major ASX bank shares and ASX mining shares have already seen their payouts reduced this decade. COVID-19 hurt bank payouts, while lower iron ore prices led to dividend cuts for the miners.

Future Generation Australia’s business model is about having a diversified portfolio of funds from more than a dozen different fund managers. All of those fund managers work for free so that Future Generation Australia can donate 1% of its net assets each year to youth charities.

This investment setup means the fund can offer investors significant diversification – there are more than 450 underlying shares in the portfolio, across different sectors.

High-yield ASX dividend stock

One of the most appealing aspects of Future Generation Australia is the pleasing level of passive income it can provide to our bank accounts.

It grew its annual dividend per share by 0.2 cents in 2025 and I expect it will increase its payout by that amount again in FY26. This would take the annual payout to 7.4 cents per share.

At the time of writing, that possible payout translates into a forward grossed-up dividend yield of 7.9%, including franking credits. In my view, that’s superior to the best savings accounts out there, with payout growth potential.  

Rising payout

Future Generation Australia has a great record of dividend growth. For me, this is one of the main reasons why I prefer the ASX dividend stock compared to the age pension.

The business has increased its annual payout every year since 2015 – more than a decade of continuous passive income growth. The 2025 payout was hiked by close to 3%.

I’m not predicting rapid payout growth in the short term, but Future Generation Australia’s steady payout progress is a real positive for income-focused investors, considering it already has a very high dividend yield.

How many Future Generation Australia shares would it take to match the Age Pension?

Right now, the maximum Age Pension for a single person is approximately $31,200 annually.

To receive $31,200 annually from Future Generation Australia, an investor would need 295,148 shares based on the potential FY26 payout including the franking credits, or 421,622 shares excluding the franking credits.

I’d suggest Australians should have more than just one high-yield ASX dividend stock in a portfolio, though Future Generation Australia would certainly be an effective inclusion, in my opinion.

The post 295,148 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $9,000 monthly passive income?
• 3 ASX dividend shares raising dividends like clockwork
• How to invest $25,000 for passive income in superannuation?
• How much is needed in superannuation to target a $7,500 monthly passive income?
• Get paid huge amounts of cash to own these ASX dividend shares

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares recovered early losses to close just inside the green after interest rates were kept on hold yesterday.

ASX 200 shares had been sharply lower in early trading but moved up immediately after the rates announcement at 2.30pm.

The ASX 200 closed 0.042% higher at 8,917.7 points.

Meanwhile, brokers indicated continuing confidence in several ASX 200 shares by renewing their buy recommendations.

Let’s take a look.

Resmed CDI (ASX: RMD)

The Resmed share price closed 1.3% lower at $27.39 on Tuesday.

Over the past six months, this ASX 200 healthcare share has fallen 28%.

Citi renewed its buy rating on Resmed shares this week.

The broker cut its 12-month price target substantially from $48 to $38.

This still suggests a potential near-40% upside ahead.

NextDC Ltd (ASX: NXT)

The NextDC share price closed 0.4% higher at $14.87 on Tuesday.

This ASX 200 tech share has risen 21% in the calendar year to date (YTD) amid a broader sector rebound.

Citi reiterated its buy rating on NextDC shares on Monday with a price target of $19.10.

This implies potential capital gains of almost 30% ahead.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price finished at $70.79, down 0.9%, yesterday.

Over the past six months, this ASX 200 mining share has soared 40%.

Bell Potter reaffirmed its buy rating on Mineral Resources shares on Monday.

The broker lifted its 12-month target from $80.50 to $83.

This suggests a potential 17% upside ahead.

Newmont Corporation CDI (ASX: NEM)

The Newmont share price finished at $150.16 on Tuesday, up 2%.

This ASX 200 gold share has been volatile in 2026, and is down 0.6% YTD.

Macquarie renewed its buy rating on Newmont shares on Tuesday.

The broker lowered its 12-month target from $192 to $176.

This implies potential capital growth of 17% over the next year.

Qantas Airways Ltd (ASX: QAN)

The Qantas share price finished yesterday’s trading session at $9.96, up 0.2%.

The ASX 200 airline share has ripped 18% over the past month.

UBS renewed its buy rating on Qantas with a $11.15 share price target.

This suggests a potential 12% upside ahead.

Goodman Group (ASX: GMG)

The Goodman share price closed at $32.26 on Tuesday, up 0.6%.

This ASX 200 real estate share has popped 7% higher over this past month of trading.

Bell Potter reiterated its buy rating on Goodman shares on Monday with a price target of $35.50.

This implies a potential 10% upside ahead.

Goodman announced a dividend of 15 cents per share for 2H FY26 on Tuesday.

The ex-dividend date is 29 June. Investors will receive their dividend on 26 August.

The post 6 ASX 200 shares with fresh buy ratings this week appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• ASX 200 jumps back into the green as RBA keeps interest rates on hold
• Brokers rate these 6 ASX 200 shares a strong buy, and tip upsides of up to 227%
• Goodman Group announces June 2026 distribution
• Why is the ASX 200 falling despite a huge Wall Street rally?

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

Last month’s Australian federal budget changes seem to make superannuation the best financial tool for Australians to invest for passive income.

Superannuation has a lower tax rate compared to many individuals, trusts and companies. Pleasingly, it’s easy to invest for the long-term through the superannuation structure.

Receiving passive income is a very pleasing element of investing in shares. When thinking about the benefits of passive income, we need to remember that with investment income, we need to focus on the net income, meaning the after-tax figure. 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.

So, in my view, 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. In retirement, the tax rate could be 0%.

Of course, every household’s tax situation is different, so let’s look at the desired income level, without mentioning tax for the rest of the article.

How much is needed in superannuation for $8,000 of monthly passive income?

Receiving $8,000 in dividends each month equates to an annual goal of $96,000 per year. I’m sure lots of Australians would love to receive that amount of dividends each year without needing to do ongoing work for it.

Aussie investors need to think about what kind of investments they want to own and the yield that’s attached. I believe that ASX shares are the best choice for passive income, partly because of the likely franking credits that are attached to dividends from companies.

A portfolio with a dividend yield of 7% could be half the size of a portfolio with a dividend yield of 3.5% and generate the same level of dividend income.

For example, if a portfolio were approximately $1.37 million in size, it would generate approximately $96,000 of annual dividends with a 7% dividend yield. If a portfolio had a 3.5% dividend yield, it would need to be close to $2.74 million in size to generate the same amount.

Of course, other dividend yields would require different-sized portfolios.

A 5% dividend yield would require a portfolio size of $1.92 million.  

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

If an Australian superannuation investor wants to unlock mid-to-higher dividend yields, I’d consider excellent companies with franking credits, attractively priced real estate investment trusts (REITs) with resilient payouts, as well as listed investment companies (LICs) with a good history of growing dividends.

Some of the excellent lower-yielding companies I’d consider are Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES) and Lovisa Holdings Ltd (ASX: LOV). I’m expecting excellent compounding payout growth from these names.

A few of the mid-range yielding ASX dividend stocks I’d look at are WCM Quality Global Growth Fund (ASX: WCMQ), Centuria Industrial REIT (ASX: CIP), Dexus Industria REIT (ASX: DXI) and Telstra Group Ltd (ASX: TLS).

I think some of the most attractive names with a higher yield include MFF Capital Investments Ltd (ASX: MFF), WCM Global Growth Ltd (ASX: WQG), Future Generation Global Ltd (ASX: FGG) and Hearts and Minds Investments Ltd (ASX: HM1).

The post How much is needed in superannuation to target an $8,000 monthly passive income? appeared first on The Motley Fool Australia.

More reading

• Brokers rate these 4 ASX 200 shares as a sell!
• Buy, hold, sell: Coles, Telstra, Wesfarmers, and Woolworths shares
• Centuria Industrial REIT unveils data centre strategy
• Centuria Capital Group unveils AI-powered growth at Investor Day
• These ASX dividend shares keep giving investors a pay rise

Motley Fool contributor Tristan Harrison has positions in Future Generation Global, Hearts And Minds Investments, Mff Capital Investments, 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 Lovisa, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Lovisa, Mff Capital Investments, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.