Author: openjargon

Something will jump out at you if you take a look at the WAM Capital Ltd (ASX: WAM) share price right now. It’s not the share price itself, although that is notable for reasons we’ll get to momentarily. No, what’s most striking about WAM Capital shares today is the absolutely stonking dividend yield this listed investment company (LIC) is apparently trading on.

Yesterday, WAM Capital shares closed at $1.18. That was down 0.42% for the session.

At that price, WAM Capital was allegedly trading on a trailing dividend yield of 13.19%.

Yep, no typos, no misplaced decimal points. 13.19%.

The prospect of a 13.2% yield is more than enough to grab any investor’s attention, regardless of whether they even invest primarily for income. After all, that implies that one would get back roughly $132 a year for every $1,000 invested. Incredible cash flow if accurate.

The market rarely offers up these sorts of opportunities, so is this a case of ‘too good to be true’?

Well, let’s work our way backwards to find out. WAM Capital has paid out two dividends over the past 12 months. The first was the October 2025 final dividend worth 7.75 cents per share. The second, the interim dividend from May, was also worth 7.75 cents per share. That 15.5 cents per share in dividends over the past 12 months gives WAM Capital that 13.2% yield at the current $1.18 share price.

Is the 13.2% dividend yield on WAM Capital shares for real?

Case closed, right? Well, not exactly. As any good dividend investor knows, a trailing yield only tells us what an investment has paid out over the past 12 months. It doesn’t tell us a lot about what it might fund over the coming 12 months.

As we’ve discussed many times this year, there were many warning signs that WAM Capital was digging itself into a bit of a hole when it came to future payout ability. Its profit reserve, from which dividends can be funded, has all but run dry. WAM Capital itself acknowledged this reality last month. That was when the company told investors that:

Since FY2020, the Board has maintained WAM Capital’s full year dividend at 15.5 cents per share. Over that period, the dividends paid by the Board exceeded the profits generated, drawing down the Company’s accumulated profits reserve. Maintaining the dividend at 15.5 cents per share is no longer sustainable with the profits reserve available.

As a result, WAM Capital has told investors to only expect a total of 8 cents per share (two dividends worth 4 cents each) over 2027. Those will come partially franked at 60%. That’s a cut worth 48.4%. Ouch.

If that is accurate (WAM Capital could downgrade it even further if necessary), WAM Capital shares would have a forward yield of 6.84% at current prices. Not 13.2%.

Of course, that is still a fairly sizeable yield. But bear in mind that it is largely a result of this LIC’s share price collapse in 2026. Since the start of the year, WAM Capital shares have lost more than 35.3% of their value, including 22.5% since this dividend cut was announced. It’s also worth noting that, as of 31 August, WAM Capital only had 5.7 cents in its profit reserve. This means that, as of today, it doesn’t even have the cash on hand to fund 8 cents per share worth of dividends.

Investors might wish to tread very cautiously indeed here.

The post Insane: Do WAM Capital shares really have a 13.2% yield? appeared first on The Motley Fool Australia.

More reading

• 4 ASX shares that pay a dividend yield of 8% (or more)
• Why a fund manager loves these ASX shares right now
• Ouch: WAM Capital shares crash 15% as dividend cut in half
• WAM Capital trims FY27 dividend after portfolio setback in FY26

Motley Fool contributor Sebastian Bowen thankfully 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.

Doubling your money with an ASX share in the space of 12 months is not something that happens too often.

But Bell Potter thinks it could be possible with the one in this article.

Though, it is likely to be only suitable for investors with a high tolerance for risk.

Which ASX share?

The share that has caught the eye of Bell Potter is Kinatico Ltd (ASX: KYP).

It is a leading provider of know your people solutions to organisations in Australia and New Zealand. Its CVCheck business currently provides employment screening and verification services to over 10,000 repeat corporate customers.

The ASX share is also focused on the development and growth of a new SaaS-based business which provides real-time workforce compliance management and monitoring via a suite of software solutions.

Bell Potter notes that the macro backdrop is weak. However, it believes there will be limited impact on earnings given management’s ability to adjust its cost base. It said:

There is no change in our full year forecasts but we increase the revenue skew in FY27 to H2 given the weak macro backdrop and the likely continued lengthening of decision making and tender processes which was evident in 2HFY26. The risk is this continues into 2HFY27 as well but at this stage we assume the macro environment improves next half post a couple of likely interest rate rises this half. 

In theory this then translates into some enterprise wins for Kinatico Compliance (KC) and drives strong SaaS growth in 2HFY27. Importantly we also expect Kinatico to adjust its cost base over the course of FY27 so that there is little impact on earnings in both H1 and H2.

It then adds:

We now forecast a 1H/2H revenue split of $19.0m/$22.5m compared to $20.2m/$21.3m previously. This equates to growth of 8% in H1 and 28% in H2 and effectively assumes little if any new enterprise wins for KC in H1 but then a few reasonable wins in H2. The growth in each half is still being driven by strong double digit increases in SaaS revenue – 20% in H1 and 46% in H2 – while we continue to expect modest declines in the legacy checks revenue in both halves. 

The change in skew, however, means we now forecast SaaS revenue as a percentage of total revenue to remain flat at 62% in 1HFY27 relative to 2HFY26 but to then increase materially to 70% in 2HFY27.

Should you invest?

As I mentioned at the top, Bell Potter believes there could be significant upside on offer with this ASX share.

According to the note, the broker has retained its buy rating with a trimmed price target of 34 cents (from 36 cents).

Based on its current share price of 14.5 cents, this implies potential upside of over 130% for investors over the next 12 months.

Commenting on its recommendation, Bell Potter said:

While we are not changing our full year forecasts the increase in skew to 2HFY27 increases the risk profile so we adjust the key assumptions in our valuations accordingly. We reduce the multiple we apply in the EV/EBITDA valuation from 10x to 8x and increase the WACC we apply in the DCF from 10.6% to 11.0%. 

The net result is a 6% decrease in our TP to $0.34 which is still more than double the share price so we maintain our BUY recommendation. We note Kinatico recently announced an on-market share buy-back which is scheduled to commence on 5th October. The company has allocated up to $5m to the exercise and, to quote the company, “represents an opportunity to enhance the value of the remaining shares on issue.”

The post Guess which ASX share could rise 130% appeared first on The Motley Fool Australia.

More reading

• Insane: Do WAM Capital shares really have a 13.2% yield?
• 5 ASX ETFs for Aussie investors to buy and hold for 20 years
• Top broker names 2 growing ASX dividend shares to buy now
• This ASX 200 share hit an all-time high yesterday. Is the sky the limit?
• 5 things to watch on the ASX 200 on Thursday

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.

Buy and hold investing can be a great way to build wealth over the long term.

But if you’re not a fan of stock picking, then it can all become too hard.

The good news is that ASX exchange traded funds (ETFs) are here to save the day.

They allow investors to buy large groups of shares in one fell swoop, removing the need to pick individual stocks.

But which ASX ETFs could be great buy and hold picks? Let’s look at five that could be worth considering for the next two decades.

iShares S&P 500 ETF (ASX: IVV)

The first ASX ETF to consider is the iShares S&P 500 ETF. It gives investors exposure to 500 of the largest listed companies in the United States.

That includes businesses involved in technology, healthcare, financial services, consumer products, industrials, and other industries. Holdings include Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and ExxonMobil (NYSE: XOM).

What makes this ETF attractive over a 20-year period is the quality of the companies it holds. Many have strong competitive positions, enormous financial resources, and the ability to keep investing in new products, technologies, and markets. 

That could make the iShares S&P 500 ETF a strong option for Australian investors wanting long-term exposure to some of the world’s most successful businesses.

Betashares Nasdaq 100 ETF (ASX: NDQ)

Another ASX ETF that could be worth buying and holding is the Betashares Nasdaq 100 ETF.

This hugely popular fund provides exposure to 100 of the largest non-financial companies listed on the Nasdaq exchange.

Many of these businesses are involved in areas such as artificial intelligence, cloud computing, software, semiconductors, ecommerce, and digital advertising.

Over the next two decades, these businesses could benefit from continued technological change across the global economy.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF could also be worth considering.

It invests in leading Asian technology companies, giving investors exposure to businesses involved in semiconductors, ecommerce, gaming, hardware, and digital platforms.

Asia is home to some of the world’s most important technology manufacturers and enormous consumer markets.

As the region’s economies develop and technology adoption continues, its leading companies could have significant opportunities to grow.

Betashares Global Cybersecurity ETF (ASX: HACK)

A fourth ASX ETF to consider for the next 20 years is the Betashares Global Cybersecurity ETF.

This fund invests in companies providing cybersecurity products and services.

These businesses help protect networks, cloud systems, devices, data, payments, and digital identities.

As more businesses adopt artificial intelligence, cloud computing, and connected technologies, keeping systems secure is likely to become increasingly important.

This bodes well for the companies held by this fund.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

Finally, the VanEck Morningstar Wide Moat ETF could be a strong buy and hold option.

This fund focuses on US companies that have sustainable competitive advantages and are trading at attractive valuations.

These advantages can include strong brands, intellectual property, cost advantages, and customers that are difficult to lose.

This is a philosophy that has helped investors such as Warren Buffett build enormous wealth over time.

Over a 20-year period, owning quality businesses with the ability to protect their profits and compound earnings could be a very sensible approach.

The post 5 ASX ETFs for Aussie investors to buy and hold for 20 years appeared first on The Motley Fool Australia.

More reading

• Here are the most popular ASX share superannuation investments in SMSFs
• Why I’d invest $50,000 of superannuation into these 3 top ASX ETFs
• How to target the different layers of the artificial intelligence buildout
• Where to invest $20,000 in ASX ETFs today
• Aussie investors are pushing their chips into international ASX ETFs – Here are three great options

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Betashares Capital – Asia Technology Tigers Etf, and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Nvidia, VanEck Morningstar Wide Moat ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you on the hunt for some growing ASX dividend shares to buy this week?

If you are, it could pay to hear what Bell Potter is saying about the two listed below.

Here’s why it is bullish on them:

CAR Group Limited (ASX: CAR)

Bell Potter is bullish on auto listings company CAR Group and sees it as an ASX dividend share to buy.

It believes the company has the potential to grow its earnings in the double-digits thanks to its strong pricing power and operating leverage. It said:

CAR delivered another strong result, with FY26 revenue increasing 10% to $1.25bn and EBITDA rising 9% to $699m despite a softer macro backdrop. We see a sustainable pathway to double-digit EPS growth over the medium term, supported by pricing power, international scale and operating leverage. Given its low PE and strong cashflow generation, the dividend is attractive at around 3% today and growing at 10% CAGR.

The broker expects this to underpin partially franked dividends of 94.5 cents per share in FY 2027 and 106 cents per share in FY 2028. Based on its current share price of $23.12, this would mean dividend yields of 4.1% and 4.6%, respectively.

Bell Potter has a buy rating and $34.60 price target on its shares.

Lovisa Holdings Ltd (ASX: LOV)

Bell Potter also thinks Lovisa could be an ASX dividend share to buy now.

Although it remains cautious on consumer spending, it thinks the fashion jewellery retailer is better positioned than most to overcome this. It said:

While we remain cautious on the current weak consumer landscape and investments into market share & store refits to mitigate competitive pressures in key markets, we see a higher tolerance re accessibility from a low price point perspective together with a strong gross margin. LOV stands out in our coverage as a global retailer scaling its presence from ~50 regions with strong US/UK performance with better efficiencies within the US store network.

Post the market sell-off, we think the current valuation at ~22x FY27e P/E (BPe) which is a ~20% discount to LOV’s recent mid-cycle P/E as BPe of 28.5x appears attractive, and we upgrade our recommendation to BUY.

As for income, Bell Potter is forecasting partially franked dividends per share of 98.4 cents in FY 2027 and 115.2 cents in FY 2028. Based on its current share price of $24.52, this equates to dividend yields of 4% and 4.7%, respectively. 

Bell Potter has a buy rating and $27.00 price target on its shares.

The post Top broker names 2 growing ASX dividend shares to buy now appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Lovisa vs Universal Store shares: Which ASX retail stock is the better buy today?
• Here are the top 10 ASX 200 shares today
• REA Group vs CAR Group: Which is best for income investors?
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended CAR Group Ltd and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Anyone who bought Codan Ltd (ASX: CDA) shares near their 52-week low of $25.18 would now be sitting on a gain of more than 100%.

And Wednesday gave shareholders another reason to be pleased, with the tech company’s shares climbing to a new all-time high of $53.16.

That surpassed the previous record of $51.76 set earlier in the week, with Codan finishing the session up 3.37% at $53.10.

The stock has now gained approximately 77% over the past year, with its recent rally pushing it further into record territory.

So, can Codan shares continue climbing from here?

What’s driving Codan shares higher?

Codan’s latest financial results provide some insight into why investors have been willing to pay more for the stock.

In its FY26 results, the company reported revenue of $875 million, up 30% on the previous year.

Net profit after tax (NPAT) jumped 69% to $175.2 million, while EBIT increased 67% to $244.1 million.

Its communications division delivered revenue of $506.2 million, up 22%, with segment profit climbing 45% to $156 million.

Demand for unmanned radio systems has been particularly strong, with revenue from this market more than doubling to approximately $215 million.

Meanwhile, Codan’s Minelab business benefited from higher gold detector demand and successful product launches.

Revenue increased 42% to $362 million, while segment profit jumped 65% to $162.4 million.

More growth to come?

The good news for shareholders is that Codan expects another strong year, with both divisions positioned to deliver further growth.

Its communications business is targeting revenue growth of approximately 20% in FY27, supported by continued demand for unmanned radio systems.

Management also expects the first half to be significantly stronger than the same period last year, giving the division a positive start to FY27.

Minelab should benefit from a full year of sales from its recently launched GPZ8000 and Gold Monster 2000 detectors.

Early FY27 trading has been positive, with Africa and other markets tracking broadly in line with the second half of FY26.

One thing worth watching, however, is the electronics supply chain, where emerging constraints could affect Codan’s ability to meet customer demand.

Is Codan getting too expensive?

While Codan’s growth has been impressive, I think valuation is becoming an important consideration after such a substantial rally.

At around $53 per share, the stock is trading on approximately 55 times its FY26 earnings per share of 96.5 cents.

That’s a lot to pay for last year’s earnings, despite how well the business has been performing.

And if the next update falls short of expectations, I wouldn’t be surprised to see some of those recent gains disappear.

I still like Codan’s exposure to defence communications and gold detection, but I’d be reluctant to chase the shares at current levels.

The post This ASX 200 share hit an all-time high yesterday. Is the sky the limit? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Viva Energy, Codan, AMP shares reach 52-week highs: How much higher can they go?
• Codan shares hit a new record high after the company predicts another strong year
• Codan vs Pro Medicus: Which ASX growth stock is better value?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Aaron Teboneras 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.

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was on form and edged higher. The benchmark index rose 0.1% to 8,765.3 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to sink

It looks set to be a tough session for Australian investors on Thursday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 104 points or 1.2% lower this morning. In the United States, the Dow Jones fell 0.7%, the S&P 500 dropped 0.75%, and the Nasdaq was 1.1% lower.

ASX 200 shares paying dividends

A number of ASX 200 shares are rewarding their shareholders with dividends on Thursday. This includes PLS Group Ltd (ASX: PLS), Telstra Group Ltd (ASX: TLS), ResMed Inc. (ASX: RMD), Ramsay Health Care Ltd (ASX: RHC), and Rio Tinto Ltd (ASX: RIO). The latter is paying a fully franked $2.96 per share interim dividend later today.

Oil prices rise

ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) could have a good session after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 2.4% to US$92.70 a barrel and the Brent crude oil price is up 4.1% to US$103.35 a barrel. Doubts over a US-Iran peace deal were behind the rise.

Buy Nufarm shares

Nufarm Ltd (ASX: NUF) shares could be a good option for investors according to Bell Potter. This morning, the broker has retained its buy rating on the agricultural chemicals company’s shares with an improved price target of $3.90 (from $3.75). It said: “Our Buy rating is unchanged. In FY26e NUF has delivered a result that was consistent with our expectations, while incurring costs related to plant outages that were not expected. The underlying performance looks to be stronger than what is implied at the headline, with material YoY growth in Seeds and the basis of the next leg of cost outs now articulated.”

Gold price falls

It could be a poor day for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price fell overnight. According to CNBC, the gold futures price is down 1.2% to US$4,323.9 an ounce. A rebound in oil prices appears to have led to increased US rate hike bets.

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

More reading

• Here are the most popular ASX share superannuation investments in SMSFs
• Here are the top 10 ASX 200 shares today
• ASX 200 turns higher after a rocky start. Is a recovery on the table?
• PLS shares have surged 85% in a year. So why are short sellers circling?
• Buy, sell, hold: AMP, Wesfarmers, Woodside shares

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 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.

It’s interesting to look at the types of investments that other Australian investors own. It could be very informative to see what the most widely held ASX shares are in self-managed superannuation funds (SMSFs).

SMSF investors have more flexibility than other superannuation investors about where to put their money. ASX shares have the biggest allocation, followed by owned property, cash and term deposits, managed funds, exchange-traded funds (ETFs), unlisted trusts, ‘other’, international shares and finally debt securities.

Let’s see which ASX shares are the most popular within SMSF portfolios.

The most popular ASX shares

SMSF cloud accounting software provider Class recently released its 2026 annual benchmark report, which gave a lot of insights into the SMSF landscape. Class is owned by Hub24 Ltd (ASX: HUB).

At 30 June 2026, there were 12 ASX shares that were held in at least 20% of SMSF portfolios:

• BHP Group Ltd (ASX: BHP) – 46.6% of all SMSF portfolios
• Woodside Energy Group Ltd (ASX: WDS) – 37.2%
• National Australia Bank Ltd (ASX: NAB) – 34.4%
• Westpac Banking Corp (ASX: WBC) – 34.1%
• ANZ Group Holdings Ltd (ASX: ANZ) – 34.1%
• Commonwealth Bank of Australia (ASX: CBA) – 31.9%
• CSL Ltd (ASX: CSL) – 31.4%
• Telstra Group Ltd (ASX: TLS) – 31.4%
• Wesfarmers Ltd (ASX: WES) – 29.4%
• Macquarie Group Ltd (ASX: MQG) – 29.5%
• Woolworths Group Ltd (ASX: WOW) – 24.1%
• Rio Tinto Ltd (ASX: RIO) – 21.8%

It makes sense that these ASX shares have been chosen by SMSF investors. Almost all of them have a solid dividend yield. Passive income may be exactly what investors in retirement are looking for.

I think it’s interesting that BHP and Woodside appear in the most portfolios. But it’s also intriguing that NAB, Westpac and ANZ all feature in more portfolios than CBA. Commonwealth Bank also has the lowest dividend yield of the big four banks.

However, while they are in more portfolios, things look different when looking at which ASX shares have the most overall SMSF dollars invested in them.

According to Class data, order of most dollars allocated to ASX shares (with a weighting of more than 2%):

• CBA – 5.9%
• BHP – 5.5%
• Westpac – 3.6%
• NAB – 3.4%
• ANZ – 3.2%
• Wesfarmers – 3.2%
• Macquarie – 3.1%
• Telstra – 2%

ASX bank shares still have a very large place in SMSF portfolios, though BHP has significant SMSF dollars invested in it too.

What about exchange-traded funds (ETFs)?

ETFs are becoming increasingly popular investors as a way to gain exposure to certain sectors or geographies for a low cost.

According to the Class SMSF benchmark report, 35.5% of SMSFs now own at least one ETF, though they only account for a 7.2% allocation of overall SMSF dollars.

The ASX ETFs that are the most widely held include:

• Vanguard Australian Shares Index ETF (ASX: VAS)
• iShares S&P 500 ETF (ASX: IVV)
• VanEck MSCI International Quality ETF (ASX: QUAL)
• Vanguard Msci Index International Shares ETF (ASX: VGS)
• Vanguard All-World ex-US Shares Index ETF (ASX: VEU)
• Betashares Nasdaq 100 ETF (ASX: NDQ)

If SMSF investors use a mix of investments, they can build an ASX share portfolio that delivers strong returns and diversification.

The post Here are the most popular ASX share superannuation investments in SMSFs appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
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• ANZ shares have climbed 13% in a year. Is there still room to run?
• Bought $5,000 worth of New Hope and BHP shares 5 years ago? Guess how much passive income you’ve already earned!
• Is NAB one of the best ASX dividend shares to buy?

Motley Fool contributor Tristan Harrison has positions in VanEck Msci International Quality ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF, CSL, Hub24, Macquarie Group, Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF and Telstra Group. The Motley Fool Australia has recommended BHP Group, CSL, Hub24, Macquarie Group, Vanguard Msci Index International Shares ETF, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Having a good handle on how much in superannuation savings you need to generate the sort of income you want to fund your retirement is a good strategy.

The sooner you start planning, the sooner you can reap the benefits of compound interest.

Today I’m looking at how much you’d need to have saved to generate $1,000 a week, or $52,000 a year, in income.

This level is slightly below the level of income the Association of Superannuation Funds of Australia (ASFA) says is necessary for a comfortable retirement.

How much do you need for a comfortable retirement?

ASFA has pegged this at $56,166 for singles or $78,998 for couples, but keep in mind they assume the retiree owns their home and draws a part pension.

This so-called comfortable retirement would include the ability to hold top-level private health cover, own and maintain a reasonable car, and travel occasionally.

How much would you need in retirement to generate $1,000 per week?

If you are earning 5% on your superannuation savings, you would need $1.04 million. That drops to $520,000 if you earn 10%.

I would argue that, with the benefit of franking credits, a retiree could comfortably aim for a dividend stream returning about 7.5%. This would mean you would need about $693,333 in superannuation to generate $1,000 per week in income.

Franking credits pay back the tax a company has already paid to the shareholder – 30% in the case of fully franked dividends.

Given retirees don’t pay tax, they receive this amount back in cash.

This means a 5% fully franked dividend becomes a “grossed-up” 7.14% dividend yield for retirees.

Which shares have strong dividend yields?

Plenty of companies deliver solid dividend yields.

In the property sector, Arena REIT (ASX: ARF) is currently paying 9.03%, Centuria Office REIT (ASX: COF) is paying 11.7%, and Cromwell Property Group (ASX: CMW) is paying 8.57%.

In the financial services sector, Regal Partners Ltd (ASX: RPL) is paying 12%, Bank of Queensland Ltd (ASX: BOQ) 6.01%, and Prime Financial Group Ltd (ASX: PFG) 8.6%.

Toll roads operator Atlas Arteria Ltd (ASX: ALX) recently reiterated its dividend payout and is currently delivering a yield of 8.98%.

What if your superannuation is falling short?

If your superannuation could use a top-up, it’s worth exploring concessional contributions.

Up to a cap of $32,500, which includes your employer’s superannuation contributions, you can make extra contributions into your retirement savings at a tax rate of 15%.

The post How much superannuation do I need to earn $1,000 per week in passive income? appeared first on The Motley Fool Australia.

More reading

• Bank of Queensland shares hit a 52-week low in June. Are they cheap today?
• Buy, hold, sell: Regal Partners, HomeCo Daily Needs REIT, APA Group shares
• 5 things to watch on the ASX 200 on Wednesday
• 4 ASX shares that pay a dividend yield of 8% (or more)
• Ord Minnett tips this ASX financials stock to double within the next 12 months 

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

Xero vs Life360 shares: Which ASX tech stock has more upside?

If you’re looking at ASX technology shares, chances are both Xero Ltd (ASX: XRO) and Life360 Inc (ASX: 360) are on your radar. They’re standout names in Australian tech, but both have hit rough patches lately. So, which has the stronger investment case and might offer more upside from here? Let’s take a closer look at Xero vs Life360 shares.

The case for Xero

Xero is a New Zealand-born technology company, now with a global reach, that provides cloud-based accounting software to small and medium businesses. Its product helps businesses manage financials, payroll, invoicing, and compliance, all via an easy-to-use, subscription-based platform.

A few key things jump out from Xero’s current numbers:

• A sizeable market cap of $10.25 billion, which signals strong market presence and brand trust.
• The P/E ratio sits at 49.87, suggesting that the company may be priced with future growth in mind, although such a high multiple could also mean the market is demanding a lot out of it.
• Xero is not currently paying a dividend (dividend yield 0.00%), instead, the company seems to be retaining capital, likely to focus on reinvestment and growth.
• Year to date, its return is -44.9%, which certainly isn’t pretty for anyone who bought in the past twelve months.

It’s also worth noting that Xero’s most recent earnings per share is reported as -0.158, which is negative. That calls out some near-term profit challenges, worth keeping in mind.

According to its most recent public description, Xero is considered a leader in cloud accounting for small and medium-sized businesses and works off a recurring revenue, subscription-based model.

The case for Life360

Life360 is a US-based software company best-known for its popular family safety app. This app allows families and friend groups to share their locations, connect, and access helpful safety features like driver monitoring, medical and roadside assistance, and theft alerts. It’s widely used by families worldwide and, per its company profile, boasts more than 104 million monthly active users globally.

Several fundamentals stand out for Life360 right now:

• Market cap is $4.56 billion—substantial, but less than half that of Xero, so this is a more mid-cap opportunity.
• Life360’s P/E ratio is 23.51, meaning investors are paying roughly half as much per dollar of earnings compared to Xero. That’s appealing if you’re looking for value in the tech sector.
• The company has positive earnings per share of 0.573—a big contrast with Xero’s negative result—implying improved profitability.
• Like Xero, Life360 pays no dividend.
• Year to date, its share price is down 43.3%, only a hair less painful than Xero.

Valuation comparison

Here’s how some core valuation numbers stack up:

	Xero	Life360
Market Cap	$10.25 billion	$4.56 billion
P/E Ratio	49.87	23.51
Earnings per Share	-0.158	0.573
Dividend Yield	0.00%	0.00%
YTD Return	-44.9%	-43.3%

Note: Xero’s reported P/E ratio is positive despite a negative EPS. This likely means the P/E is calculated on a different earnings measure (such as underlying or forward earnings) rather than the reported statutory EPS, which is why the two figures may not neatly align.

Neither company pays a dividend, so dividend hunters may want to look elsewhere for income. Life360 looks notably cheaper on a P/E basis and is actually reporting positive earnings per share, whereas Xero is not.

Recent share price performance

Both companies have had a rough ride lately. Comparing 24 Aug – 21 Sep 2026:

• Xero shares fell from $86.73 on 24 August to $60.08 on 21 September 2026, a sharp drop over this period, in line with its -44.9% year to date return.
• Life360 shares dipped from $20.78 on 24 August to $18.68 on 21 September 2026, which works out as a slide of about 10% for the month, and mirrors its -43.3% YTD return figure.

Both have lost a lot of ground lately, with neither showing clear momentum over the past month per the numbers supplied.

Which is the better buy?

Both Xero and Life360 are quality businesses shaking up their respective fields, but neither is in market favour right now, judging by their steep share price declines this year. If I’m picking based on the fundamentals provided, I’d lean toward Life360 at this moment. While it’s smaller, Life360 boasts positive earnings per share and trades at a P/E ratio less than half Xero’s. That could suggest a more appealing balance between growth potential and value, especially with Life360 expanding into new revenue streams like advertising.

Xero’s negative EPS and much higher valuation multiple are red flags for me, especially when the company is also coming off a big share price fall. That’s not to say Xero couldn’t bounce back—its subscription model and global reach are real strengths—but on the raw numbers in front of me, Life360 looks the nimbler, less expensive, and more profitable tech play of the two.

Neither stock pays a dividend, so near-term income isn’t on the cards from either name. Ultimately, with Life360 priced lower, earning positive profits, and exploring new business avenues, my pick would be Life360 for greater potential right now.

The post Xero vs Life360: Which ASX tech share has more upside? appeared first on The Motley Fool Australia.

More reading

• Down 5% today to a 7-year low: What is going on with Xero shares?
• Should I invest $5,000 into WiseTech and Xero shares?
• How to build a $50,000 passive income from ASX shares
• Do these ASX technology shares have too much upside to ignore?
• Xero shares crash to a 7-year low after a brutal sell-off

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 positions in and has recommended Life360 and Xero. The Motley Fool Australia has positions in and has recommended Life360 and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

DroneShield Ltd (ASX: DRO) shares just can’t seem to turn the tide.

The counter-drone technology stock closed Thursday down 3% at $1.62. This caps a 12% slide over the month and a brutal 52% collapse over the past year. That’s a fall from a 52-week high of $6.71 to a low of $1.57, carnage by any measure.

But buried beneath the wreckage is a potentially intriguing new chapter that has almost nothing to do with the company’s existing drone-jamming products. It’s called RfRecon, and it might just be the thing the market is overlooking.

First, the elephant in the room

DroneShield’s spectacular growth story has hit real turbulence. First-half revenue jumped 74% to $125.8 million, but underlying EBITDA swung to a $12.4 million loss, and gross margins weakened along the way.

Then came the bigger blow. CY26 revenue guidance of $250–270 million landed substantially below the roughly $323 million consensus investors in DroneShield shares had been banking on.

For a growth stock priced for perfection, that’s more than enough to trigger a serious valuation reset. And that’s precisely what happened.

Brokers are deeply split

The latest price targets tell you just how divisive DroneShield shares have become. Bell Potter has a buy rating with a $2.40 target, and Canaccord Genuity is similarly bullish at $2.60. This points to 61% upside at the time of writing.

On the other side, Jefferies has slapped on a sell rating with a $1.45 target, while Ord Minnett sits at sell with $1.50.

That’s an unusually wide spread for one stock. The answer to who’s right may hinge partly on what happens with RfRecon.

DroneShield’s potential secret weapon

RfRecon is designed to push DroneShield beyond simply detecting and defeating drones. Its RF intelligence technology aims to identify, locate and assess radio-frequency activity, powered by the company’s new RfAI-3 software architecture.

This is potentially opening doors for DroneShield shares into electronic warfare, military intelligence and force protection. DroneShield has already landed its first RfRecon order from an existing Western European military customer. The caveat: that initial order isn’t financially material. But the size of the first order might not be the point.

DroneShield says RfRecon has already been placed with selected European and US end users and deployed during a major international defence exercise, with management expecting sales to build through 2027.

If those trials convert into repeat procurement, the revenue opportunity could look dramatically different from today. RfRecon is targeting a potential global addressable market of US$1–3 billion a year over time.

The existing pipeline still matters

None of this happens in isolation from DroneShield’s core business. The company says it now has $251 million of committed CY26 revenue, plus another $46 million committed for FY27 and beyond.

Europe remains crucial, accounting for roughly 52% of first-half revenue, and DroneShield continues chasing major defence programmes, including a sizeable European opportunity tied to the COBBS/Anduril/Nokia consortium.

Investors, though, shouldn’t count potential contracts as revenue for DroneShield shares until ink actually hits paper.

The post DroneShield shares crashed 52%. This new weapon could flip the script appeared first on The Motley Fool Australia.

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• Codan vs Droneshield shares: Which is the better buy?
• DroneShield shares just hit a new low. Is the only way up from here?
• DroneShield shares have crashed 51% in a year. Here’s why I’d buy them today

Motley Fool contributor Marc Van Dinther 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.