Category: Stock Market

The ASX dividend stock Charter Hall Long WALE REIT (ASX: CLW) could be one of the best opportunities for Australians right now.

The real estate investment trust (REIT) may not be as famous as names like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP). But, in some ways, Charter Hall Long WALE REIT could be more appealing.

For a few different reasons, I think it’s a better buy for the foreseeable future.

Strong dividend yield

I think the Charter Hall Long WALE REIT dividend yield is very attractive compared to many other ASX dividend stock options.

It’s able to deliver such a good dividend yield because it pays out 100% of its operating rental profit each year, making it a very rewarding holding for passive income.

The business can still experience profit and distribution growth while paying out 100% of its operating profit due to contracted rent increases with its tenants.

It increased its FY26 annual payout by 2% to 25.5 cents per security. That translates into a forward distribution yield of 6.7%, at the time of writing. To me, that’s a much more appealing yield than what CBA or BHP have to offer.

Diversification

One of the best things about this ASX dividend stock is its highly diversified portfolio across multiple property sectors. I like that strategy because it reduces the risk of being overly exposed to one area while also giving it the largest investment hunting ground to find the best opportunities.

The business is invested in a number of defensive tenant industries, including government tenants (such as Geoscience Australia), pubs and hotels, grocery and distribution, telecommunications exchanges, data centres, service stations, food manufacturing, waste and recycling management, and so on.

In terms of tenants, some of its key tenants include government tenants, Endeavour Group Ltd (ASX: EDV), Telstra Group Ltd (ASX: TLS), BP, Coles Group Ltd (ASX: COL), Metcash Ltd (ASX: MTS), Westpac Banking Corp(ASX: WES) and Wesfarmers Ltd (ASX: WES).

Long-term rental income

What links all of the properties in the portfolio together is that they have long-term rental agreements with tenants. As of December 2025, it had a weighted average lease expiry (WALE) of more than nine years.

That means it has close to a decade of rental income already signed with tenants, giving the business compelling security for its future distributions.

Its rental income is steadily growing, with the rent either rising at a fixed rate annually or linked to inflation. With that rental income tailwind, the business has a compelling future, barring the short-term headwind of rising interest rates.

It looks like great value to me after reporting net tangible assets (NTA) of $4.68 per security at 31 December 2025, which means it’s trading at a 19% discount to this.

The post Is this the best ASX dividend stock to buy for passive income? appeared first on The Motley Fool Australia.

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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 Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended BHP Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation balances can vary enormously from person to person, depending on income, career breaks, investment choices, and extra contributions.

But averages still give us a useful guide.

Looking at ages 45, 55, and 65 shows how super can build through the later stages of working life, and whether Australians are getting closer to the level needed for retirement.

How do you compare to the average? Let’s find out.

First, what is the end goal?

Before looking at the averages, it helps to understand what those balances are supposed to fund.

According to the Association of Superannuation Funds of Australia (ASFA), a comfortable retirement requires around $630,000 in super for a single person and $730,000 for a couple. This assumes the retiree owns their home outright and receives some Age Pension support over time.

A comfortable retirement is not about living extravagantly. It is about having enough money for private health insurance, a reliable car, regular leisure activities, household repairs, domestic travel, and the occasional overseas trip.

A modest retirement requires far less, at around $110,000 for singles and $120,000 for couples. But this lifestyle is much more constrained and relies heavily on the Age Pension.

With that in mind, the average balances at 45, 55, and 65, according to recent data, tell an interesting story.

The average superannuation balance at 45

At age 45, the average Australian woman is likely to have approximately $130,000 in superannuation, while the average Australian man is likely to have around $170,000.

This is the stage where super starts to become more noticeable. The balance is no longer insignificant, but it may still feel a long way short of what is needed for retirement.

That is completely normal. At 45, most people still have two decades or more before Age Pension age. The priority is not whether the balance is enough today, because it almost certainly is not. The priority is whether the account is set up to keep growing.

This is often a good age to review investment options, check fees, consolidate any old accounts, and consider whether extra contributions are possible.

The average super balance at 55

By age 55, the numbers have usually moved materially higher.

The average Australian woman is likely to have roughly $220,000 in super, while the average Australian man is likely to have about $290,000.

This is where retirement planning starts to feel more personal. The finish line is not right around the corner, but it is close enough that decisions begin to matter more.

For many Australians, the 50s can be a powerful decade for superannuation. Incomes may be higher, mortgage pressure may have eased, and compulsory employer contributions are being added to a larger balance.

The key point is that a balance at 55 is not the final result. There is still time for contributions and investment returns to make a meaningful difference.

The average super balance at 65

By age 65, superannuation is usually front and centre.

The average Australian woman is likely to have around $360,000 in superannuation, while the average Australian man is likely to have approximately $425,000.

For couples, combining two average balances can put retirement much closer to ASFA’s comfortable benchmark. For singles, the average balance is more likely to sit somewhere between modest and comfortable, depending on housing, spending needs, health, and access to other assets.

This is why averages need to be treated carefully. A homeowner with low expenses may feel comfortable on less than someone renting or carrying debt. Two people with the same super balance can have very different retirement experiences.

Foolish takeaway

The average super balance at 45 is likely to be around $130,000 for women and $170,000 for men. By 55, that rises to around $220,000 and $290,000. By 65, it increases again to roughly $360,000 and $425,000.

Those numbers are useful, but they are not the whole story.

What is important is not whether your balance matches the average. It is whether your super, combined with the Age Pension and any other assets, can support the retirement you actually want.

The post Here is the average Australian superannuation balance at ages 45, 55, and 65 appeared first on The Motley Fool Australia.

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

Wesfarmers Ltd (ASX: WES) is one of those ASX shares that can look expensive for long periods.

That can make it easy to put in the too hard basket. But I think patient investors should keep paying attention to the business behind the share price.

Wesfarmers has a rare combination of scale, operating discipline, customer understanding, and balance sheet flexibility. Those qualities can be valuable across many years.

A culture of improvement

The reason I like Wesfarmers is not simply that it owns well-known retail businesses.

The more interesting point is how the company tends to operate them.

Wesfarmers has built a reputation for focusing on returns, productivity, supply chains, customer value, and sensible capital allocation. That culture can show up in small ways: better store layouts, sharper ranging, stronger digital tools, inventory discipline, supplier negotiations, and a willingness to keep refining what already works.

Those details may not sound meaningful, but over time, they can become a major advantage.

Retail is often won through execution rather than grand strategy. A business that keeps getting the basics right can defend margins, win repeat customers, and reinvest from a position of strength.

Optionality is part of the appeal

I also like the optionality inside Wesfarmers.

The company has never been just a passive owner of assets. It has shown a willingness to buy, build, improve, and occasionally exit when the opportunity set changes. That gives the company more ways to create value than a business locked into one narrow path.

That flexibility could be useful in FY27 and beyond.

Consumer conditions may remain uneven. Interest rates, housing turnover, and household budgets can affect parts of the company. But Wesfarmers has a long history of adjusting to changing conditions while keeping a firm eye on returns.

I think that adaptability deserves a premium.

Why I’d buy

The main challenge is valuation.

Wesfarmers is rarely priced like an unloved bargain. Investors often pay up for the company’s quality, and that can limit short-term upside when expectations are already high.

Even so, I think some businesses are worth watching closely because they can keep compounding through repeated improvements rather than one explosive growth event.

Wesfarmers fits that description for me. It has brands people know, operations that can keep improving, and management that has generally treated capital as something to be earned and redeployed carefully.

Foolish takeaway

Wesfarmers is the kind of ASX share I would be comfortable owning with a long time horizon.

The market often focuses on the valuation, and that is fair. But the reason I keep coming back to the business is its ability to adapt, reinvest, and improve.

The best long-term investments often look a little ordinary while they are working. Wesfarmers sells into everyday parts of the economy, but the discipline behind the scenes is what gives the company its edge. For patient investors, I think that remains a compelling reason to consider buying.

The post Why Wesfarmers shares still look like a top buy to me appeared first on The Motley Fool Australia.

More reading

• Chasing early retirement at 55? These ASX shares and ETFs could help
• ASX 200 retail shares outperform on growing hopes interest rates have peaked
• Where should I invest inside SMSFs instead of property?
• How to invest $500, $5,000, and $50,000 on the ASX
• 3 top ASX shares to buy for an SMSF

Motley Fool contributor Grace Alvino has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. 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.

Retiring at 55 is an ambitious goal, but the right investment portfolio can make it far more achievable. For investors pursuing early retirement, the focus should be on owning high-quality assets capable of growing wealth over the long term while also providing some income along the way.

A mix of proven ASX shares and diversified ETFs can be a powerful combination. Here are five investments I’d consider for investors aiming to build wealth and potentially retire earlier than the traditional retirement age.

Wesfarmers Ltd (ASX: WES)

Wesfarmers has been one of Australia’s great long-term wealth creators.

The company owns a collection of market-leading businesses, including Bunnings Group, Kmart, Officeworks, and a growing portfolio of healthcare and industrial assets.

Its strength lies in diversification, strong management, and an ability to allocate capital effectively. Over decades, Wesfarmers has repeatedly reinvested profits into growth opportunities while delivering attractive shareholder returns.

For investors with a long time horizon and aiming for early retirement, those qualities can be extremely valuable.

Macquarie Group Ltd (ASX: MQG)

Macquarie Group is another business that has consistently rewarded patient shareholders eying retirement at 55 or earlier.

Often described as Australia’s investment bank, Macquarie has built a global platform spanning infrastructure, asset management, renewable energy, commodities, and financial services.

One of its biggest strengths is its ability to identify emerging investment opportunities and scale them globally.

As infrastructure investment and the energy transition continue to expand worldwide, Macquarie remains well-positioned to benefit from long-term structural growth trends.

Vanguard Australian Shares Index ETF (ASX: VAS)

This popular ASX ETF provides broad exposure to Australia’s largest listed companies.

The ETF holds leading businesses such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Ltd (ASX: CSL).

For investors seeking simplicity, VAS offers instant diversification across the local share market while also providing exposure to Australia’s relatively strong dividend culture.

It can serve as a reliable core holding within a retirement-focused portfolio.

Betashares Global Shares ETF (ASX: BGBL)

Betashares Global Shares ETF helps retirement investors look beyond Australia’s borders.

The ETF owns hundreds of companies across developed markets, including many of the world’s largest and most successful businesses.

Its top holdings include Microsoft Corp (NASDAQ: MSFT) and Apple Inc (NASDAQ: AAPL).

Global diversification can reduce reliance on the Australian economy and provide exposure to industries that are underrepresented on the ASX.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

BetaShares Nasdaq 100 ETF adds a growth engine to the early retirement portfolio.

The ETF tracks many of the world’s leading technology and innovation businesses, including Microsoft, Apple, and NVIDIA Corp (NASDAQ: NVDA).

Technology has been one of the strongest long-term wealth creation themes globally. While NDQ can be more volatile than broader market ETFs, its exposure to innovation leaders offers significant long-term growth potential.

Foolish takeaway

For investors targeting early retirement, combining quality ASX shares such as Wesfarmers and Macquarie with diversified ETFs can create a portfolio capable of compounding wealth over many years.

While no investment guarantees early retirement, owning great businesses and broad market ETFs gives investors a strong foundation for pursuing that goal.

The post Chasing early retirement at 55? These ASX shares and ETFs could help appeared first on The Motley Fool Australia.

More reading

• Why Wesfarmers shares still look like a top buy to me
• ASX 200 retail shares outperform on growing hopes interest rates have peaked
• Where should I invest inside SMSFs instead of property?
• How to invest $500, $5,000, and $50,000 on the ASX
• 3 top ASX shares to buy for an SMSF

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, CSL, Macquarie Group, Microsoft, Nvidia, and Wesfarmers. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, BHP Group, CSL, Macquarie Group, Microsoft, Nvidia, and Wesfarmers. 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) consumer discretionary shares led the 11 market sectors last week with a 3.61% gain.

Meanwhile, the ASX 200 Index drifted 0.73% lower to finish at 8,764.2 points on Friday.

Economic data released last week suggests the Reserve Bank (RBA) may keep interest rates on hold for a while.

Unemployment fell 0.1% to to 4.4% and annual inflation dropped 0.2% to 4% in May, according to the Bureau of Statistics.

Commonwealth Bank of Australia (ASX: CBA) economist Ashwin Clarke said a 1.3% increase in household spending last month “surprised markets to the upside”.

Analysts are pricing in an 81% chance that the RBA will keep interest rates on hold at the next meeting on 11 August.

This is why ASX 200 retail shares outperformed their peers last week.

Let’s take a look at some individual company performances.

Consumer discretionary shares led the ASX sectors last week

The Wesfarmers Ltd (ASX: WES) share price rose 5.81% to finish at $90.74 on Friday.

Shares in gaming technology company Aristocrat Leisure Ltd (ASX: ALL) lifted 6.81% to $58.69.

The Lottery Corporation Ltd (ASX: TLC) share price rose 1.26% to $5.63.

The JB Hi-Fi Ltd (ASX: JBH) share price ascended 4.98% to $81.84 on Friday.

Guzman Y Gomez Ltd (ASX: GYG) shares increased 7.42% to $20.27.

Temple & Webster Group Ltd (ASX: TPW) shares ripped 8.64% to $6.16.

The Harvey Norman Holdings Ltd (ASX: HVN) share price rose 1.04% to $4.88.

Super Retail Group Ltd (ASX: SUL) shares finished the week steady at $13.12.

ASX 200 travel share Flight Centre Travel Group Ltd (ASX: FLT) managed a 0.52% lift to $11.99.

Shares in Premier Investments Ltd (ASX: PMV) rose 2.45% to $14.65.

Myer Holdings Ltd (ASX: MYR) shares rose 6.9% to close the week at 31 cents per share.

The Breville Group Ltd (ASX: BRG) share price inched 0.38% ahead to $31.43.

Not all ASX 200 retail shares followed the trend.

The Light & Wonder Inc (ASX: LNW) share price tumbled 13.68% to $110.78.

Eagers Automotive Ltd (ASX: APE) shares dropped 4.5% to $21.43 apiece.

Lovisa Holdings Ltd (ASX: LOV) shares eased 0.68% to $23.25.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Consumer Discretionary (ASX: XDJ)	3.61%
Consumer Staples (ASX: XSJ)	3.26%
Utilities (ASX: XUJ)	2.42%
Healthcare (ASX: XHJ)	1.64%
A-REIT (ASX: XPJ)	1.62%
Industrials (ASX: XNJ)	1.31%
Financials (ASX: XFJ)	(0.02%)
Communication (ASX: XTJ)	(1.22%)
Materials (ASX: XMJ)	(4.06%)
Energy (ASX: XEJ)	(4.13%)
Information Technology (ASX: XIJ)	(5.19%)

The post ASX 200 retail shares outperform on growing hopes interest rates have peaked appeared first on The Motley Fool Australia.

More reading

• Where should I invest inside SMSFs instead of property?
• Buy, hold, sell: Beach Energy, Flight Centre, and Judo Capital shares
• How to invest $500, $5,000, and $50,000 on the ASX
• 3 top ASX shares to buy for an SMSF
• 6 ASX shares with upgraded ratings from experts this week

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 Light & Wonder Inc, Lovisa, Super Retail Group, Temple & Webster Group, The Lottery Corporation, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Harvey Norman and Super Retail Group. The Motley Fool Australia has recommended Eagers Automotive Ltd, Flight Centre Travel Group, Light & Wonder Inc, Lovisa, Myer, Premier Investments, Temple & Webster Group, The Lottery Corporation, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are times when the market gives investors a better price for businesses that still have plenty going for them.

I think this could be one of those moments for two ASX 200 shares that have just fallen to 52-week lows.

REA Group Ltd (ASX: REA) hit a 52-week low of $131.07 on Friday, while Hub24 Ltd (ASX: HUB) shares dropped to a 52-week low of $68.70.

I see those prices as a chance to look again at two high-quality businesses with long-term growth potential.

REA Group shares

REA Group is one of the ASX businesses I would be happy to own for the long term.

The share price has come under pressure for a few reasons. Proposed changes to negative gearing, higher interest rates, and housing market weakness have all weighed on sentiment toward the property sector.

I can understand why investors are cautious. If sellers hold back, listings volumes can soften, and that can affect a business like REA.

But I think a lot of that concern is now reflected in the share price.

REA still sits close to one of the most important financial decisions many people make: buying and selling property. When someone is searching for a home, checking a suburb, comparing prices, finding inspection times, or contacting an agent, the process often starts online.

That is a powerful position because property advertising has high intent. A serious buyer is valuable to agents, sellers, developers, lenders, and other related businesses.

I also think REA has more ways to grow than just waiting for listing volumes to improve. It can keep improving the consumer experience, offer agents better digital tools, expand premium products, and use data to make the property search more useful.

If interest rates ease, I would expect housing confidence and listing activity to recover over time. At this lower price, I think REA is worth buying before that rebound becomes obvious.

Hub24 shares

Hub24 is another ASX 200 share I would buy after its recent pullback.

The company is exposed to a part of the financial system that keeps becoming more demanding. Financial advisers are dealing with more complex client needs, more reporting requirements, more investment options, and higher expectations around transparency.

That creates a real operational challenge. A strong wealth platform can help advisers manage portfolios, reporting, tax information, managed accounts, and client communication more efficiently. That is where Hub24’s appeal sits for me.

It is not just a business collecting funds under administration. I think it is becoming part of how advisers run their practices.

Australia’s wealth pool remains large, and the need for advice should continue as more people navigate retirement, superannuation, inheritance, and portfolio decisions. If Hub24 can keep making life easier for advisers and their clients, it should have a long runway for growth.

The risks include competition, valuation, market movements, and weaker investor sentiment toward growth shares. But I think Hub24 still has the usefulness and customer relevance to become more valuable over time.

Foolish Takeaway

I like using market pullbacks to revisit businesses with strong positions and clear long-term demand.

Neither of these ASX 200 shares needs perfect conditions to be attractive. They need to stay useful, keep improving their platforms, and remain important to the customers who rely on them.

At these lower prices, I think both are worth buying now.

The post 2 quality ASX 200 shares at 52-week lows to buy now appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Karoon Energy, Brambles, REA shares
• Why these top fundies are buying REA and TechnologyOne shares
• 3 quality ASX shares I’d buy (that aren’t CBA or Wesfarmers)
• 5 ASX growth shares I want in my portfolio in FY27
• These ASX 200 shares are down 40% to 65% and could be bargain buys

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

Woodside Energy Group Ltd (ASX: WDS) shares are one of the most popular ASX dividend options because of the company’s strength, dividend yield and potential future passive income payouts.

The ASX energy share usually has a good dividend yield, superior to that of peers like Santos Ltd (ASX: STO) and Beach Energy Ltd (ASX: BPT).

Woodside’s dividend has jumped around over the last decade, with significant shifts in resource prices over time.

In the company’s FY25 annual result (reported in February), it said that operating revenue declined 1%, underlying net profit declined 8%, statutory net profit dropped 24% and operating cash flow rose 23%. This led to the full-year dividend declining by 8%.

In this article, we’re going to look at the potential annual FY27 dividend, which will be paid partly in 2027 and partly in 2028 because its FY27 annual result and final dividend won’t be announced until February 2028.

FY 2027 dividend projection for owners of Woodside shares

According to the projection on Commsec, the ASX energy share is estimated to pay an annual dividend per share of A$2.918 for the 2027 financial year.

At the time of writing, this forecast translates into a dividend yield of 10.1% excluding franking credits and 14.5% including franking credits.

If someone were to invest $8,000 in Woodside, they would be able to buy 278 Woodside shares (with a little bit of money left over).

With those 278 Woodside shares, investors could receive $811.20 of cash and perhaps $347.66 of franking credits.

Is this a good time to invest in the ASX energy share for passive income?

According to CMC Invest, there have been nine recent analyst rating calls on the business in the last three months.

Of those nine ratings, two were a buy, five were a hold and two were a sell. So, on average, the investment professionals are neutral on the company’s valuation right now (at the time of writing).

The average price target of those nine analyst ratings is $31.39. That means, collectively, those analysts are predicting the Woodside share price will (at the time of writing) rise by around 10% over the next year.

In the past year, the Woodside share price has been close to $22 and above $35. So, analysts are expecting the company to be closer to its 52-week high than its 52-week low, following the Middle East events. The dividend could play an important part in whether the Woodside shares deliver a market-beating return in the next 12 months or not.

But, energy prices can be volatile, so other ASX shares may prefer investments that are more stable and are more predictable.

The post If I invest $8,000 in Woodside shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

More reading

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• Is the Woodside share price a buy in July?
• 5 things to watch on the ASX 200 on Thursday

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 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.

When it comes to building long-term wealth for my kids, my focus is on high-quality ASX shares that can compound over decades.

After all, my kids are still little. So there’s no point in me chasing the next big booming growth stock when consistent growth is much more valuable for my kids’ futures

Here are two ASX 200 shares I’d buy and hold for my kids.

iShares S&P 500 ETF (ASX: IVV)

I think one of the best ASX shares to buy for kids is a broad-market ETF. Rather than picking individual stocks, an ETF gives its shareholders a stake in multiple companies at once.

IVV is a great example. The ETF provides its shareholders with exposure to around 500 of the largest US-listed companies, including well-known global brands, businesses with large customer bases, and those with strong balance sheets. 

The ETF holds major names that even your kids would be aware of. Such as Nvidia, Apple, Amazon, Tesla, Netflix and many others.

The benefit of investing in an ETF rather than a single stock is that if one company suffers a share price decline, it would have a limited impact on the ETF as a whole. 

And this is ideal for investors looking to buy ASX shares for their kids to hold for the long term. 

IVV is generally a low-risk investment versus trying to pick an individual winner. Instead of betting on a single company, investors are effectively buying their kids a slice of all the largest US businesses at once.

IVV pays passive income, too. It generally pays its shareholders four dividends per year. Most recently, it paid shareholders 13.95 cents per share in April, which translates to a trailing dividend yield of roughly 1% at the time of writing.

Telstra Group Ltd (ASX: TLS)

If I were to buy a single stock for my kids, it would be a classic ASX defensive share, such as Telstra.

The telecommunications company is dominant in Australia. It operates one of the country’s largest mobile networks and is a major fixed-line internet provider. 

Mobile phone and internet use are already considered necessities, and I think both services will only continue to grow over the next few decades.

This stable and growing demand means Telstra is also well-positioned to benefit from recurring revenue and earnings. And this will be the case regardless of the stage of the economic cycle we are in. 

This type of stock is also perfect for investors who want to hedge against potential volatility elsewhere in their kids’ portfolio.

And if that isn’t enough, Telstra’s defensive nature means it can also pay shareholders a consistent passive income, too.

The ASX 200 telco most recently paid shareholders a dividend of 10.5 cents per share in March, 90.48% franked. Analysts forecast Telstra to pay a total dividend of 21 cents in FY26. This translates to a forward dividend yield of around 4.1% excluding franking credits, at the time of writing.

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

If I were to focus on long-term dividend income. Soul Patts is another ASX share I’d consider buying for my kids. 

Soul Patts is an Australian diversified investment house. It’s often compared to Warren Buffett’s Berkshire Hathaway because it invests in a broad portfolio of assets ranging from ASX-listed companies, to private credit, to real estate, and others.

Not only is it widely regarded as Australian dividend royalty, but it’s also one of the few ASX shares that have continually raised its dividend payments over the past 28 years.

Soul Patts historically pays its fully-franked dividends twice per year in May and a final dividend in December. It occasionally also pays shareholders an additional special dividend.

For the first half of FY26, Soul Patts paid a fully-franked interim dividend of 48 cents per share. This was a 9.1% increase on the prior corresponding period.  At the time of writing, the ASX shares have a grossed-up dividend yield of around 2.4%, including franking credits.

The post 3 ASX shares I’d buy and hold for my kids appeared first on The Motley Fool Australia.

More reading

• Where should I invest inside SMSFs instead of property?
• Why US stocks have hit record highs while ASX shares have barely risen in 2026
• How to invest $500, $5,000, and $50,000 on the ASX
• Want a pay rise? These ASX dividend shares keep delivering
• 3 strong ASX ETFs for beginner investors

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended 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.

ASX dividend shares are some of my favourite investments in my portfolio because they provide a mix of passive income and long-term growth.

I own a mixture of ASX dividend shares, ASX growth shares and exchange-traded funds (ETFs) for a variety of investment purposes.

One of the businesses that I’ve made among my biggest positions is L1 Long Short Fund Ltd (ASX: LSF).

For me, there are three key reasons that I really like the listed investment company (LIC).

Good and growing passive income

The LIC has an impressive track record of delivering consistent dividend growth.

It has increased its annual payout each year since it started paying in FY21. The business recently changed to paying a quarterly dividend and it has been increasing its dividend every quarter.

If it continues growing its quarterly dividend at a similar pace, the next four dividends would come to a grossed-up dividend yield of 4.9%, including franking credits, at the time of writing.

I think that’s a solid starting point, with plenty of room for further dividend growth as a result of strong investment performance. I expect the November 2026 quarterly dividend to be 11.4% larger than the November 2025 quarterly dividend.

Strong investment performance

A LIC funds its dividends from the investment performance of its portfolio. With the ASX dividend share’s excellent long-term performance, it can continue paying pleasing passive income and funding growing payouts.

The performance has been so good that it has been able to deliver excellent capital growth too. In the past eight years, the L1 Long Short Fund share price has risen close to 130%.

The LIC targets a mixture of both ASX shares and international shares, through both normal investing and short-selling. Through that strategy, it’s able to utilise both good value and expensive shares, locally and globally, to its advantage.

In the past five years, the L1 Long Short Fund portfolio has returned an average of 17% (net) per year. That’s a great return, in my opinion! Of course, past performance is not a guarantee of future performance.

Diversification

One of the best reasons I like this business is how it generates returns. It hasn’t relied on technology businesses due to how it invests – it’s more likely to short a tech stock than invest in it for the long-term.

Instead, it looks at opportunities in other areas such as gold shares, copper shares, industrials and telecommunications. In other words, the ‘real’ economy.

You can make good returns in almost any business, including cyclical ones, if bought at the right price. So, by investing in this ASX dividend share, I’m getting exposure to companies and sectors I don’t in other parts of my portfolio.  

But, this isn’t the only ASX dividend share I want to buy for my portfolio.

The post Why I made this top ASX dividend share one of my biggest investments appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund. 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.

Working out what superannuation balance you need at any retirement age depends entirely on your living situation, financial situation, and the lifestyle you want to live when you finally stop working.

The average retirement age in Australia is 65. But some like to wait a little longer, until they can (if eligible) access the Age Pension at age 67. Meanwhile, others might delay their retirement into their 70s to let their superannuation compound a little longer.

Don’t want to wait any longer than the average Aussie? Let’s break down what retiring at 65 might look like and how much money you will need.

What type of retirement do you want?

In Australia, retirement is generally split into two broad categories: modest and comfortable. 

A modest retirement, according to the Association of Superannuation Funds of Australia (ASFA), is defined as being able to cover expenses slightly above what the full Centrelink Age Pension would provide from age 67. This would cover things like basic health insurance and home repairs, but wouldn’t leave much room for leisure activities, and certainly not a holiday.

ASFA defines a comfortable retirement as one that enables retirees to maintain a good standard of living well beyond the age pension. It budgets for expenses beyond a modest retirement, including top-tier private health insurance and regular leisure activities. It allocates funds for home repairs or renovations, and perhaps even an annual holiday. 

What will a modest or a comfortable retirement cost me?

ASFA estimates that a modest retirement will cost around $36,434 per year for singles and $52,473 per year for couples. These figures assume you’ll also receive a part Age Pension.

For many Australians, a modest retirement is achievable, but it’ll require a tight budget, strict financial goals, and careful planning. But it goes without saying that every Australian strives to live a comfortable retirement far above the bare minimum.

A comfortable lifestyle means your budget will be a lot more flexible. 

ASFA data shows that a comfortable retirement is estimated to cost around $55,923 per year for singles and $78,566 for couples. Again, it assumes you’ll receive a part Age Pension and that you own your home in full. 

What do I need in my superannuation by age 65 to be able to afford that?

In order to fund a modest retirement, singles will need around $110,000 in their superannuation when they retire, and couples around $120,000. This should be achievable by the majority of Aussies by the time they reach age 65 and want to retire.

A comfortable retirement requires a lot more, though. Single Australians will need around $630,000 in their superannuation by age 65, and couples will need around $730,000.

There’s another catch

Keep in mind also that ASFA calculates these figures assuming you’ll access your superannuation from age 67. If you want to retire a little earlier at age 65, you’ll need to account for those two extra years of funds. 

You’ll also need to take into account your life expectancy from that point. 

For example, $54,840 per year on a balance of approximately $640,000 means ASFA’s data assumes you’ll only need to fund around 11 years of a comfortable retirement.

Add an extra two years on that, and your superannuation money will need to be spread more thinly.

Also, if you don’t own your home outright, you’ll also need to consider how you’ll pay your mortgage or rent on top of your other bills. 

It’s also wise to have an emergency fund set aside.

The post How much superannuation do I really need to retire comfortably at age 65? appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Beach Energy, Flight Centre, and Judo Capital shares
• How to invest $500, $5,000, and $50,000 on the ASX

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 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.