Warren Buffett built his fortune by doing something that sounds simple, but is surprisingly hard to follow.

He bought high-quality businesses, paid sensible prices where possible, and then held them for a very long time.

That is the approach I would use if I had money to invest in ASX shares today.

I would not try to trade every market move or guess what happens next month. I would focus on owning businesses that can keep growing earnings, paying dividends, and becoming more valuable over time.

Warren Buffett buys businesses, not tickers

The first Buffett lesson I would follow is to think like a business owner.

A share is not just a code on a screen. It is a small ownership stake in a real company.

That changes how I look at the market.

Instead of asking whether a share price might rise next week, I would ask whether the company has a strong competitive position, good management, and a long runway for growth.

On the ASX, that could lead investors toward businesses such as Wesfarmers Ltd (ASX: WES), CSL Ltd (ASX: CSL), Commonwealth Bank of Australia (ASX: CBA), or ResMed Inc. (ASX: RMD).

These are very different companies, but I think they all have qualities Buffett would appreciate: strong brands, scale, cash generation, and positions that are difficult for competitors to copy.

Look for durability

The second lesson is durability.

Warren Buffett often talks about wanting businesses that can remain strong for many years. That is important because compounding needs time.

I think this is where investors can make a big mistake. They buy exciting shares, but the business model does not have enough staying power.

For me, the better approach is to look for companies that customers keep using and that competitors struggle to displace.

That could include toll road operator Transurban Group (ASX: TCL), supermarket giant Woolworths Group Ltd (ASX: WOW), or healthcare leaders like CSL and ResMed.

These businesses may not always look cheap, and they will still have difficult periods. But I think their essential nature gives them a better chance of producing solid long-term returns.

Let compounding do the work

The third part of the Buffett approach is patience.

This is where many investors fall short.

If I bought a quality ASX share, I would want to give it time to grow. That means allowing earnings to compound, dividends to build, and management to reinvest for the future.

A business that grows earnings by 8% to 10% a year can become far more valuable over a decade. Add dividends on top, and the total return can be powerful.

This is not guaranteed, of course. Some investments will disappoint.

But I think the overall strategy is sound: buy good businesses, reinvest dividends where possible, and avoid selling just because the share price has a weak year.

Do not overpay blindly

There is another part of Warren Buffett’s strategy that I think is important.

Quality is not enough on its own. Price still matters.

Even a great company can be a poor investment if investors pay too much for it.

That is why I would be especially interested in ASX shares where the market has become more cautious. When quality companies fall out of favour, investors may get a better entry point.

This is why beaten-down quality names such as CSL, Cochlear Ltd (ASX: COH), Xero Ltd (ASX: XRO), or WiseTech Global Ltd (ASX: WTC) have become particularly interesting in 2026.

Foolish takeaway

If I had money to invest today, I would follow the Buffett approach: buy quality ASX businesses, focus on the long term, be patient, and pay attention to valuation.

Getting rich from shares usually does not happen quickly. But with the right businesses and enough time, I think the ASX can still be a powerful place to build wealth.

The post Money to invest? I’d follow Warren Buffett to get rich appeared first on The Motley Fool Australia.

More reading

• How to build a $1,000 a month passive income from the ASX
• 3 cheap ASX shares for value investors to buy today
• 9,269 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension
• ASX share volatility is rising, are you making this mistake?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Grace Alvino has positions in CSL, Commonwealth Bank Of Australia, Transurban Group, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Cochlear, ResMed, Transurban Group, Wesfarmers, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended ResMed, Transurban Group, WiseTech Global, Woolworths Group, and Xero. The Motley Fool Australia has recommended CSL, Cochlear, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The average age for retirement in Australia is around 64 years old. At this point you can access your superannuation, and you’re only a few years away from receiving the Age Pension (if you’re eligible).

But you don’t want to wait until you retire to work out if you have enough money to fund the lifestyle you want. Your retirement planning needs to start a lot earlier than that.

By age 54, or around 10 years out from your intended retirement age, you need to be aware of exactly how much you have in your superannuation, how much you need to retire, and how to bridge that gap (if there is one).

Here’s a rundown of everything you need to know.

How much will retirement cost me?

The benchmark for a comfortable retirement recently increased off the back of higher inflation. 

According to Association of Superannuation Funds of Australia (ASFA) data, a comfortable retirement lifestyle will now cost individuals around $54,840 a year, or for couples, this can be closer to $77,375 a year. 

The cost of a modest retirement is a lot less. In order to live a modest retirement lifestyle at age 60, individual Australians can expect to need $35,503 per year, or for a couple this would be closer to $51,299 per year. 

What’s the difference between a comfortable and a modest retirement?

ASFA defines a comfortable retirement as one which allows Australians to maintain a good standard of living. It assumes you’ll keep top-level private health insurance, will own a reasonable car brand, undertake regular leisure activities, have funds for home repairs and renovations, go for an occasional meal out, and maybe even an annual domestic trip (or occasional overseas one).

A modest retirement is defined as one which allows Australians to cover expenses slightly above the full Age Pension payment. This assumes you’ll hold basic health insurance, a cheap car model (or none at all), a limited home repair budget, minimal utility expenses, limiting dining out, and infrequent travel. 

It goes without saying that nearly all Australians aspire for a comfortable retirement lifestyle.

So, how much should I have in my superannuation today?

To fund a comfortable retirement, ASFA has calculated that single Australians will need a superannuation balance of around $630,000, or couples would need $730,000.

In order to reach that goal, at around 10 years out from retirement you should have close to $439,000 in your superannuation.

Help! I’m 10 years out and my superannuation isn’t ready. What can I do right now to boost my balance?

Don’t panic.

The good news is that, with 10 years left to go, at age 54 you still have time to build up your superannuation balance to be able to live comfortably when you stop work.

First, you want to check that your superannuation fund is performing well, and that its risk profile matches your own.

Then you can look to make additional concessional or non-concessional contributions, whether this is salary sacrificing or after-tax payments (within your annual limits). 

If you don’t have the funds to add more money yourself, you can also look into government initiatives. There’s the downsizer contributions rule, the bring-forward rule, the government co-contribution rule, and many others. These can help boost your balance just a little bit further. 

The post 10 years until retirement: Is your superannuation ready? appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today
• Why is this ASX financial stock dropping despite solid results?
• The ASX 200 just suffered its biggest fall in 7 weeks. Here’s what’s going on
• Alcoa announces June 2026 dividend

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.

I’m a big fan of buy and hold investing and believe it is one of the best ways to grow your wealth.

To demonstrate just how successful this investment strategy can be with shares, I like to see how much a single $10,000 investment in certain ASX 200 shares 10 years ago would be worth today.

Let’s see how investments in these shares have fared during this time:

Breville Group Ltd (ASX: BRG)

The first ASX 200 share that has delivered the goods for investors is Breville.

It is one of the world’s leading appliance manufacturers and the owner of brands such as Breville, Sage, Kambrook, Baratza, and LELIT.

Breville has been growing its sales and earnings at a solid rate over the past decade thanks to its investment in research and development, global expansion, and acquisitions in the at-home coffee market.

This has led to Breville’s shares generating strong returns over the past decade.

They have achieved an average total return of 14.1% per annum since 2016, which means that a $10,000 investment would have grown to be worth over $37,000 today.

NextDC Ltd (ASX: NXT)

Another ASX 200 share that has achieved market-beating returns over the past decade is NextDC.

It is an Australian technology company with a focus on innovative data centre outsourcing solutions, connectivity services, and infrastructure management software.

The data centre market has been a great place to be. Thanks to the shift to the cloud and the artificial intelligence (AI) megatrend, demand for capacity in its centres has been insatiable. This has led to NextDC’s revenue and operating earnings growing at a rapid rate.

Since 2016, its shares have generated an average return of 17.6% per annum. This means that a $10,000 investment in NextDC shares back then would have grown to be worth over $50,000 today.

TechnologyOne Ltd (ASX: TNE)

Another ASX 200 share that has beaten the market over the past 10 years is enterprise software provider TechnologyOne.

Thanks to its successful transition to a software-as-a-service business model, TechnologyOne has been growing its annual recurring revenue (ARR) and earnings at a consistently strong rate for many years.

And with management confident it can double in size every five years, its shares have been popular with Aussie investors.

This has led to TechnologyOne shares delivering a total average return of 19.1% per annum. This would have turn a $10,000 investment in 2016 into over $57,000 today.

The post $10,000 invested in these ASX 200 shares 10 years ago is worth… appeared first on The Motley Fool Australia.

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

If an ASX investor is after exposure to some of the United States’ best growth shares, the BetaShares Nasdaq 100 ETF (ASX: NDQ) is one of the easiest, simplest and most popular avenues to take.

This exchange-traded fund (ETF) allows Australian investors to own a piece of the 100 largest non-financial shares listed on the Nasdaq stock exchange. The Nasdaq is the exchange known for housing most of the popular tech shares that the US is famous for. You have the ‘Magnificent 7’ as the headliners, of course, with the likes of Apple, Amazon, NVIDIA and Alphabet dominating the top echelons of this index fund.

But NDQ also offers decent exposure to smaller tech stocks like Netflix, PayPal, Palantir, Qualcomm, Texas Instruments, and Shopify.

With all of these impressive names under one NDQ roof, many ASX investors have NDQ in their ASX portfolios. I used to be one of them, attracted by the easy exposure to what are undeniably some of the best businesses in the world. But not anymore.

I don’t have a problem with the BetaShares Nasdaq 100 ETF.

However, I simply found what I believed to be a superior alternative.

NDQ is a great ETF. But it does not come cheap. Unlike other ASX index funds, NDQ does not charge a cheap-as-chips management fee of under 0.1%. In fact, NDQ will cost investors 0.48% per annum, or $48 per year for every $10,000 invested. That’s a bit steep for my liking, so a few months ago, I sold my NDQ units and redeployed the capital into a similar ETF that charges a fraction of NDQ’s cost.

That ETF was the Schwab U.S. Large-Cap Growth ETF (NYSE: SCHG).

NDQ, but better?

Yes, this is a US-based ETF, meaning ASX investors will need to buy it on a platform that allows US trading. But aside from this hurdle, I see no reason to own NDQ over SCHG. For one, SCHG invests in a very similar basket of stocks to NDQ. You’ll find all of the names mentioned above in its portfolio, albeit with different weightings. You’ll even get some tech stocks that aren’t on the NASDAQ, and thus, the NDQ ETF. These include Visa, Uber Technologies, and Mastercard.

But the best part? SCHG charges an annual management fee of just 0.04%. That’s more than ten times cheaper than NDQ.

The difference between 0.48% and 0.04% might not look like a significant one. But it can make a real difference to investor returns over long periods of time. That’s why I switched to SCHG, and haven’t looked back since. Something to consider if you like having the US’s top growth stocks in your ASX share portfolio.

The post I love the BetaShares Nasdaq 100 ETF (NDQ). Here’s why I sold it. appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Apple, Mastercard, Netflix, Schwab Strategic Trust – Schwab U.s. Large-Cap Growth ETF, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Mastercard, Netflix, Nvidia, Palantir Technologies, PayPal, Qualcomm, Shopify, Texas Instruments, Uber Technologies, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: short June 2026 $50 calls on PayPal. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Mastercard, Netflix, Nvidia, PayPal, Shopify, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Last week, the Reserve Bank of Australia (RBA) delivered another blow to mortgage holders by increasing the cash rate for a third meeting in a row.

Is this where interest rates peak? Or are there more hikes to come? Let’s see what the economics team at Westpac Banking Corp (ASX: WBC) is expecting from the central bank.

The RBA’s decision

As mentioned above, on Tuesday of last week, the RBA decided to increase the cash rate target by 25 basis points to 4.35%.

Commenting on the decision, RBA governor, Michele Bullock, said:

As expected, developments in the Middle East are having an impact on inflation. Higher fuel prices are adding to inflation and there are indications that this is likely to have second-round effects on prices for goods and services more broadly. This inflation impulse is in addition to the high inflation recorded around the start of 2026, reflecting capacity pressures in the economy.

In light of these considerations, the Board assessed that inflation is likely to remain above target for some time and that the risks remain tilted to the upside, including to inflation expectations. It was therefore judged appropriate to increase the cash rate target.

Where next for interest rates?

Unfortunately for borrowers, Westpac believes that further interest rate hikes will be necessary to tame inflation.

However, Westpac’s chief economist, Luci Ellis, doesn’t believe that it will be another back-to-back hike. She thinks the RBA will want to pause in June to see how the Middle East conflict plays out. Ellis said:

We still expect two more RBA rate hikes after the one this week. However, as we flagged as a consideration on Tuesday, we now think that the Monetary Policy Board (MPB) will want to pause in June. In the post-meeting media conference, Governor Bullock characterised the three rate hikes so far as dealing with the high inflation issue that already existed before the conflict in the Middle East started, and that this “gives space” for the MPB to see how the conflict plays out.

Together with the dissenting vote, we read this as saying that another back-to-back hike in June is no longer a better-than-50% chance. It is not a zero chance, either, but it should not be the base case.

Westpac is forecasting the next interest rate hike in August, followed by another in September. This will take the cash rate to 4.85%.

For the sake of mortgage holders, here’s hoping the RBA won’t have to make these moves. But time will tell if that is the case.

The post Here’s what Westpac says the RBA will do with interest rates next appeared first on The Motley Fool Australia.

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• ASX share volatility is rising, are you making this mistake?
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• Why is the Westpac share price falling today?

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.

ASX shares with the ability to expand the most in the next five years could be great investments because of their future profit potential.

The three businesses I want to highlight are relatively small, are growing at a fast pace, and are delivering rising profit margins.

I’m very bullish on what the below businesses could achieve in the coming years. This is why I’m already a shareholder and would happily buy more.

Siteminder Ltd (ASX: SDR)

Siteminder provides software to hotels around the world to help them with their operations and generate the most revenue from their rooms, including one offering that enables Siteminder to change room prices throughout the year on behalf of the hotel to maximise earnings and occupancy.

The global digitalisation trend is a very useful tailwind for Siteminder. It’s winning thousands of hotels from around the world as subscribers, with a recent focus on larger hotels.

Siteminder has a goal of increasing its annual recurring revenue (ARR) at 30% per year, which is an excellent goal. While it’s not quite there, revenue is currently rising at more than 20% per year through winning new subscribers and increasing its average revenue per user (ARPU) through selling additional modules.

The business is also seeing rising profit margins thanks to the operating leverage of software because costs aren’t increasing at the same pace.

Guzman Y Gomez Ltd (ASX: GYG)

GYG is a Mexican food business with big ambitions in both Australia and internationally.

The ASX share is aiming to quadruple its Australian network to around 1,000 locations within the next 20 years. It’s currently adding around 30 locations annually with a goal to increase that rate in the coming years.

Guzman Y Gomez is currently seeing total network sales growth of around 20% year-over-year thanks to both more restaurants and mid-single-digit comparable sales growth.

It currently has a presence in Singapore, Japan and US, with the Asian markets delivering pleasing double-digit growth. The key market of Australia is growing strongly, and the international markets are a compelling bonus.

As a bonus, the business is paying a dividend, so it could deliver pleasing passive income in the coming years.   

Tuas Ltd (ASX: TUA)

Tuas is a Singapore-based telecommunications business focused on providing mobile services.

The company grew its active mobile services by 21.7% to 1.4 million in the FY26 half-year result. Revenue also rose by 26% to $91.9 million and underlying operating profit (EBITDA) increased 27% to $42.1 million.

As you can see, the business is growing at a strong double-digit rate. This is rapidly increasing its intrinsic value, particularly as its underlying profit margins are increasing.

Excitingly, Tuas is acquiring a Singaporean competitor called M1 which will add significant profit generation to the overall business and remove one of its main competitors from the market.

Additionally, in the coming years, I’m hopeful it will expand into other Asian neighbour countries which could expand its addressable market. Over the long-term, I think it could become a sizeable player in the South East Asia.

The post 3 ASX shares to buy for magnificent long-term growth appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Guzman Y Gomez, SiteMinder, and Tuas. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A $1,000 a month passive income from ASX shares is a big target, but I think it becomes less intimidating when it is treated as a project rather than a single investment decision.

For me, the starting point is not asking which share has the biggest dividend yield today. It is asking what kind of portfolio could still be paying income years from now.

How I would approach it

If I were trying to build $1,000 a month from the ASX, I would think about the portfolio in layers.

The first layer would be reliable dividend payers. These are the companies I would expect to keep paying through different market conditions.

That could include names like Telstra Group Ltd (ASX: TLS), Transurban Group (ASX: TCL), Woolworths Group Ltd (ASX: WOW), and Commonwealth Bank of Australia (ASX: CBA). They all have different risks, but they also sit in parts of the economy that people use regularly: communications, toll roads, groceries, and banking.

I think that kind of everyday relevance is useful when building an income portfolio.

Add some higher-yield exposure carefully

The second layer would be higher-yield shares or income-focused ETFs.

This is where investors might look at stocks such as HomeCo Daily Needs REIT (ASX: HDN) or Harvey Norman Holdings Ltd (ASX: HVN), depending on valuation and outlook.

An ETF such as Vanguard Australian Shares High Yield ETF (ASX: VHY) could also help spread the risk across a wider basket of dividend-paying companies.

I would be careful here. A high yield can be attractive, but it can also signal pressure on the business or a dividend that may not be sustainable.

That is why I would prefer a mix rather than relying too heavily on one or two generous dividend payers.

Use growth to fund future income

The third layer is the one I think investors often overlook.

To build a serious passive income stream, I would want some capital growth as well.

A portfolio that only focuses on income from day one might grow too slowly. By including some businesses with the ability to lift earnings and dividends over time, the income target can become easier to reach.

That could include quality compounders such as Wesfarmers Ltd (ASX: WES), Goodman Group (ASX: GMG), or even a broad ETF such as the Vanguard MSCI Index International Shares ETF (ASX: VGS).

These may not provide the highest income today, but they can help the portfolio become larger over time. A larger portfolio can then produce more income later.

What size portfolio is needed?

The maths depends on yield. A portfolio yielding 4% would need around $300,000 to generate $12,000 a year, or $1,000 a month.

At a 5% yield, the required portfolio falls to $240,000.

At 6%, it falls again to $200,000.

Personally, I would be cautious about building the whole plan around a 6% yield. I think a more balanced target of 4% to 5% is healthier because it leaves room for quality and diversification.

Foolish takeaway

For me, building a $1,000 a month passive income from the ASX is about building a layered portfolio: reliable dividend payers, some carefully chosen higher-yield exposure, and enough growth to keep pushing the portfolio forward.

Done patiently, with reinvested dividends and regular additions, I believe the ASX can be a powerful place to build a meaningful second income over time.

The post How to build a $1,000 a month passive income from the ASX appeared first on The Motley Fool Australia.

More reading

• How to make $12,000 of passive income from these ASX ETFs
• 9,269 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension
• How much do I need to invest in ASX dividend shares for a retirement income of $5,000 per month?
• Buy, hold, sell: ARB, Aurizon, and Goodman shares
• The ASX 200 just suffered its biggest fall in 7 weeks. Here’s what’s going on

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia, Transurban Group, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Harvey Norman, Telstra Group, Transurban Group, and Woolworths Group. The Motley Fool Australia has recommended Goodman Group, HomeCo Daily Needs REIT, Vanguard Australian Shares High Yield ETF, Vanguard Msci Index International Shares ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A passive income stream of $12,000 a year sure would be nice.

It works out to $1,000 a month, which could help cover bills, boost savings, or provide extra breathing room in retirement.

But the key question is this: how much money would you actually need to invest to generate it?

Here is how the numbers stack up for three ASX exchange traded funds (ETFs) based on their current dividend yields.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first ASX ETF to look at is the Vanguard Australian Shares High Yield ETF.

This fund gives investors exposure to ASX shares with higher forecast dividends than the broader market. It is focused on Australian income shares and includes a range of large companies across sectors such as banks, resources, energy, and telecommunications.

Its holdings include the likes of BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Telstra Group Ltd (ASX: TLS).

This makes the Vanguard Australian Shares High Yield ETF a simple way to gain diversified exposure to Australian dividend shares without having to choose individual income stocks.

Based on its current dividend yield of 4.15%, an investor would need to invest approximately $290,000 to generate $12,000 of annual passive income.

Betashares Global Royalties ETF (ASX: ROYL)

Another ASX ETF that could be used for passive income is the Betashares Global Royalties ETF.

This fund provides exposure to global companies that earn royalties from assets such as commodities, intellectual property, infrastructure, and other long-life revenue streams.

Royalty businesses can be attractive because they often receive income linked to the use or production of an asset without carrying the same operating burden as the companies running those assets directly.

Its holdings include companies such as Franco-Nevada Corporation (NYSE: FNV), Texas Pacific Land Corporation (NYSE: TPL), and Wheaton Precious Metals Corp (NYSE: WPM).

Based on its current dividend yield of 5.6%, an investor would need to invest approximately $215,000 to generate $12,000 of annual passive income.

Betashares S&P 500 Yield Maximiser Complex ETF (ASX: UMAX)

A third ASX ETF that may appeal to income-focused investors is the Betashares S&P 500 Yield Maximiser Complex ETF.

This fund provides exposure to the US share market while using an options strategy to help generate income. This means its distributions are not driven only by dividends from the underlying shares. A key part of the income comes from option premiums generated by selling call options.

Its underlying exposure includes major US shares such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN).

This strategy can produce higher income than a standard S&P 500 ETF, though it may also limit some upside if markets rise strongly.

Based on its current dividend yield of 5.7%, an investor would need to invest approximately $210,000 to generate $12,000 of annual passive income.

The post How to make $12,000 of passive income from these ASX ETFs appeared first on The Motley Fool Australia.

More reading

• How much do I need to invest in ASX dividend shares for a retirement income of $5,000 per month?
• Top 10 ASX shares bought and sold in April
• $250,000 to invest for passive income? Here’s how I would build a portfolio
• $10,000 invested in the Vanguard Australian Shares High Yield (VHY) ETF a year ago is now worth?
• How to dollar-cost average your way to passive income with ETFs

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, and Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund and Telstra Group. The Motley Fool Australia has recommended Amazon, Apple, BHP Group, Microsoft, and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Australian Age Pension is one of the most generous in the world, but there are a few high-yield ASX dividend stocks I’d rather rely on for income, such as Wesfarmers Ltd (ASX: WES) shares.

Some businesses look very appealing to me as options because of their strength and their ability to deliver passive income growth that’s stronger than inflation.

Wesfarmers is best known as the owner of Kmart Group, Bunnings Group, and Officeworks.

When it comes to the Age Pension, we’re talking about approximately $28,600 annually from the maximum basic rate for a single person.

With that target in mind, let’s take a look at the potential dividend income from the high-yield ASX dividend stock I want to highlight.

Dividend projections

The most important metrics that investors may want to know relate to the dividend.

I’m going to look at analyst projections for Wesfarmers for the 2026 financial year.

According to CommSec’s projection, the high-yield ASX dividend stock is forecast to pay an annual dividend per share of $2.16 in FY26.

If the company does pay that dividend, it would represent year-over-year growth of close to 5%, which I’d describe as a solid increase.

At the time of writing, the current Wesfarmers share price could yield approximately 4.2% grossed-up, including franking credits. In my view, that’s a great starting point, and the business could continue hiking its annual payment in the coming years.

Currently, the projection on CommSec implies the high-yield ASX dividend stock could grow its FY27 payout by 7.9% to $2.33 per share – much stronger growth than inflation. This would be, at the time of writing, a grossed-up dividend yield of more than 4.5%, including franking credits.

I should also note that the business is expected to continue a healthy dividend payout ratio, giving a healthy balance between rewarding shareholders and investing for growth. The projected dividend payout ratio is around 85% for FY26.

How many Wesfarmers shares are needed?

To generate $28,600 of annual grossed-up dividend income (including franking credits), an investor would need 9,269 Wesfarmers shares.

That would be a major investment, so I’d strongly encourage investors not to put all of their portfolio money into Wesfarmers shares. Diversification is important for a dividend portfolio.

Why I’d buy Wesfarmers shares for passive income

I’d describe Kmart and Bunnings as two of the best businesses in Australia, and this high-yield ASX dividend stock owns both of them. They’re market leaders in their respective retail categories, offer consumers great value, and generate high returns for shareholders (including a strong return on capital (ROC)).

The company has shown a willingness to change its business portfolio and invest in new industries that have a compelling, long-term future, including lithium mining and healthcare. I think it’s moves like this that will help the business deliver a lot more growth than the Age Pension over the rest of the decade.

Wesfarmers has an ultra-long-term track record of strong performance, and I’m confident that it can continue for the foreseeable future. It’s one of the leading large ASX dividend shares to own, in my view.

The post 9,269 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

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• The Aussie dollar just hit a 4-year high. Which ASX shares will benefit?
• 2 ASX shares I would buy for both growth and passive income today
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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 recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX has moved higher over the past year, but not every share has joined the rally.

Some quality shares have been sold down heavily, leaving them trading on P/E ratios that look far more interesting than they did in the past.

Three ASX shares I think value investors could consider buying today are named below.

Cochlear Ltd (ASX: COH)

Cochlear has had a tough period, and I do not think investors should pretend otherwise.

The hearing implant leader recently downgraded guidance after softer-than-expected trading conditions in developed markets. That has shaken confidence and pushed the share price down sharply.

I think Cochlear now looks more interesting for value investors.

According to CommSec, the shares trade on around 18.5 times consensus FY27 earnings. For a company with Cochlear’s market position, brand strength, and long-term healthcare opportunity, I think that is a much more attractive valuation than investors have usually been offered.

The near-term recovery may take time. Hospital capacity issues, weaker referral activity, and softer demand in parts of the adult and seniors market are all weighing on the business. But the long-term need for hearing solutions has not gone away.

In fact, Cochlear continues to see adults and seniors as its largest long-term growth opportunity, and it remains confident in its innovation pipeline, including next-generation implants and a totally implantable cochlear implant.

For me, this looks like a high-quality ASX share going through a difficult patch, rather than a permanently impaired business.

James Hardie Industries plc (ASX: JHX)

James Hardie is another ASX share that looks more attractive after its reset.

The building products company has been dealing with a softer housing and renovation backdrop, particularly in North America. That is never easy for a business tied to construction activity.

But at around 16 times FY27 estimated earnings, I think the market may now be offering an attractive entry point for investors willing to look through the cycle.

James Hardie remains a leading player in exterior home and outdoor living solutions. Its fibre cement products have strong positions in key markets, and the AZEK acquisition gives it broader exposure to decking, railing, and outdoor living.

The company has also been focused on cost savings, manufacturing efficiency, and integration benefits. Management has highlighted progress on cost synergies and a longer-term commercial synergy opportunity from the AZEK deal.

If US housing conditions improve and the AZEK integration delivers, James Hardie shares could re-rate meaningfully over the medium term.

Endeavour Group Ltd (ASX: EDV)

Endeavour is the most defensive-looking option of the three in my view.

The owner of Dan Murphy’s, BWS, and a large hotels business has been out of favour, but it still owns a collection of well-known brands and assets with everyday relevance.

According to CommSec, Endeavour trades on under 13 times FY27 estimated earnings. That looks inexpensive to me for a business with its scale, customer base, and potential for improvement.

There are issues to work through. The liquor retail market has been competitive, and Endeavour has been investing in lower prices to rebuild momentum. But I think that strategy could support customer loyalty and market share over time.

Its hotels business also gives the company a different earnings stream, and recent updates suggest that part of the group has been performing well. Endeavour has also been working through a strategic refresh, with a focus on price leadership, hotel renewals, cost simplification, and better use of its asset base.

For value investors, I think the lower valuation and recovery potential make Endeavour shares look appealing.

Foolish Takeaway

Value investing usually requires some patience and a willingness to buy when sentiment is weak.

That is what I see with these three ASX shares.

Cochlear, James Hardie, and Endeavour all have issues to work through, but I do not think their long-term prospects have disappeared.

At today’s lower valuations, I think they could offer attractive recovery potential for investors who are prepared to wait.

The post 3 cheap ASX shares for value investors to buy today appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• The Aussie dollar just hit a 4-year high. Which ASX shares will benefit?
• CSL, Wesfarmers, Endeavour shares crash to multi-year lows: Buy, hold, or sell?
• Forget gold! Start hunting fallen ASX 200 shares to buy for an earlier retirement
• CSL and Wesfarmers among scores of ASX shares hitting fresh 52-week lows

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