BHP Group Ltd (ASX: BHP) shares are a popular choice among passive income-seeking investors.

It’s not hard to see why. The blue-chip major is currently the largest stock on the ASX by market capitalisation, and it has a consistently strong operational performance.

BHP is a cyclical, rather than a defensive stock. While cyclical stocks are closely tied to the broad economic cycle, they usually outperform during periods of economic recovery. And this is great news for income-focused investors.

The miner’s strong operational history and diversified commodity exposure also means it has a long history of paying consistent and reliable fully-franked dividends to its shareholders.

But how much passive income could a $10,000 investment actually generate? 

Let’s investigate.

What’s the latest out of BHP shares?

At the time of writing, BHP shares are down about 1% and trading at $60.14. The shares are now up around 31% year-to-date and 48% higher than a year ago.

How many shares can I buy for $10,000?

At the current share price of $60.14, a $10,000 investment would buy about 166 shares.

What dividend does BHP pay its shareholders?

First, we need to understand what dividends the mining giant pays its shareholders.

BHP traditionally pays two fully franked dividends to shareholders each year, in March and September. 

BHP declared a total fully franked FY26 dividend of US$1.72 per share (equivalent to $2.4184) last month. This includes a US$0.73 interim and a US$0.99 final dividend. 

Based on the current share price, that translates to a dividend yield of around 4%.

For FY27, BHP is expected to pay US$1.93 (AU$2.70) to shareholders in FY27. At the time of writing, that implies a forward dividend yield of around 4.5%.

So, what passive income can I earn off my $10,000 investment?

Using the estimated payout figures above, we can calculate roughly how much income you can expect from a $10,000 investment.

If the mining giant were to pay the expected $2.70 per share in FY27, then your 166 BHP shares would generate a total of $448.20 in passive income.

What do brokers tip next for BHP shares?

BHP shares have enjoyed an incredible rally over the past 12 months off the back of stronger commodity prices and the company’s strong operational performance.

But it looks like the shares are now trading around fair value.

Market Index data shows the majority of brokers have a hold rating on BHP shares. The average $61.78 target price implies a potential 3% upside ahead, at the time of writing.

TradingView data shows similar sentiment. The majority of analysts (13 out of 21) have a hold rating on BHP shares. Another five rate the mining stock as a strong buy, and three rate the shares as a sell/strong sell.

The average $61.09 target price now implies a potential 2% upside over the next 12 months, at the time of writing.

However, the range between the maximum and minimum target prices is wide. Some forecast the shares to fall nearly 30% to $42.92. Meanwhile, others are bullish that BHP shares could climb another 12% higher to $67.50 over the next 12 months, at the time of writing.

The post If I invest $10,000 in BHP shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has positions in BHP Group. 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation is more than just a savings pot for retirement, it can also be a powerful tool to help generate long-term wealth and a passive income stream.

By investing today, you can benefit from low tax rates, compounding, and eventually a tax-free passive income once you transition to the pension phase.

But how much do you actually need in your super to generate the passive income you want when you retire?

Let’s break it down, using $5,500 per month as an example.

How much superannuation do I need to earn $5,500 of monthly passive income?

The math is simple.

First, calculate what $5,500 in passive income per month totals over the year. 

So, $5,500 x 12 = $66,000.

Then divide your annual passive income by your overall portfolio’s dividend yield.

But the tricky part is that the answer varies widely depending on your portfolio’s dividend yield.

For example, a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of passive income. 

Let’s break it down further

If your overall portfolio has a dividend yield of around 3%, you’ll need a balance of around $2.2 million to earn $66,000 in passive income each year.

A $2 million-plus portfolio isn’t achievable for many Australian investors, but the good news is that, as the dividend yield of your portfolio increases, the superannuation balance you need to earn the same passive income goes down.

For example, if your portfolio yields closer to 4%, you would need around $1.65 million in your superannuation to earn $5,500 in passive income each month.

Then, if your portfolio yields around 5%, your balance would need to be closer to $1.3 million to generate the same dividend income.

Increase that to a 6% or 7% dividend yield, and you’re looking at closer to $1.1 million or $943,000. You’d still earn $66,000 per year in passive income with these portfolio sizes.

Note that the higher the yield, generally the higher the risk associated with that ASX stock.

Ok, so what ASX shares can I buy with dividend yields between 3% and 7%?

A wide range of shares yield 3% to 7%, but here are a few of my top picks.

ASX dividend-paying shares, such as large-cap companies like Commonwealth Bank of Australia (ASX: CBA) or mining giant BHP Group Ltd (ASX: BHP), pay their shareholders a 3-4% dividend yield. 

Defensive shares like Telstra Group Ltd (ASX: TLS), Origin Energy Ltd (ASX: ORG) or Amcor PLC (ASX: AMC) are a solid choice for income-seeking investors. These all yield around the 5% to 6% level (at the time of writing).

For a higher 7% dividend yield, or even above, I’d look at dividend-payers like Shaver Shop Group Ltd (ASX: SSG), IPH Ltd (ASX: IPH), or even a real estate investment trust like Charter Hall Long Wale REIT (ASX: CLW).

The post How much superannuation is needed to target $5,500 per month in passive income? appeared first on The Motley Fool Australia.

More reading

• If I invest $10,000 in BHP shares, how much passive income will I receive in 2027?
• My top ASX passive income stocks for the next 10 years
• Down almost 7% in 3 days, are BHP shares finally good value?
• Experts name CBA and these big-name ASX 200 shares as sells this week
• Buy, hold, sell: NextDC, South32, CBA shares

Motley Fool contributor Samantha Menzies has positions in BHP Group. 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 Amcor Plc and Telstra Group. The Motley Fool Australia has recommended BHP Group, IPH Ltd , and Shaver Shop Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Fortescue Ltd (ASX: FMG) shares are back at levels investors have not seen for a year.

The iron ore giant is down 0.60% to $16.57 during Monday trade, putting the stock right on its 52-week low.

That extends what has been a rough run in 2026, with Fortescue shares now down around 25% since the start of the year.

The stock was trading as high as $23.13 on 14 May, so the decline from those levels is now close to 30%.

So, just how much further could Fortescue shares fall?

Let’s take a closer look.

Why are Fortescue shares struggling?

Fortescue’s FY26 result actually had a few decent numbers in it.

Revenue rose 9% to US$16.97 billion, helped by higher shipments and iron ore prices, while both operating cash flow and free cash flow moved higher.

However, statutory net profit fell 15% to US$2.86 billion, while the final fully-franked dividend dropped to 46 cents per share from 60 cents a year earlier.

There are a few other concerns hanging over the stock as well.

Fortescue is expecting higher spending in FY27, while the iron ore outlook remains difficult to read with China’s property sector still weak.

Could the shares fall below $16?

Looking at the latest broker targets, I wouldn’t rule it out.

TipRanks shows 11 recent analyst ratings on Fortescue, with 2 buys, 6 holds, and 3 sells.

The average 12-month price target is $17.91, which is around 8% above the current share price.

But some analysts are much more cautious.

The lowest target is $15.40 from Jarden, with Morgan Stanley close behind at $15.45. Jefferies has a $16 target, which is already below where the shares are trading today.

At the other end, RBC Capital, Macquarie, and BMO Capital each have $20 targets, around 21% above Fortescue’s current price.

What would I watch from here?

Iron ore prices are probably the first thing I’d be watching.

Fortescue is still very heavily exposed to the commodity, so any further weakness could put more pressure on earnings and the share price.

I’d also keep an eye on the current 52-week low of around $16.57.

If the shares break below that level, the $15.50 area starts to come into play, especially with Jarden and Morgan Stanley already sitting around there with their price targets.

Fortescue shares are obviously a lot cheaper than they were a few months ago, but I’m not convinced the fall is over just yet.

The post Fortescue shares just hit a 52-week low. Could $16 be next? appeared first on The Motley Fool Australia.

More reading

• Experts name CBA and these big-name ASX 200 shares as sells this week
• Buy, hold, sell: Corporate Travel Management, Wesfarmers, Fortescue shares
• $10,00 invested in Rio Tinto and Fortescue shares 3 years ago is now worth…
• 3 ASX 200 shares I’d buy if I couldn’t sell for 10 years
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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 positions in and has recommended Jefferies Financial Group. 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.