When it comes to passive income, I think CSL Ltd (ASX: CSL) shares are often overlooked.

The biotech shares have had a bad rap recently and its share price has slumped over the past 18 months. 

It doesn’t have the highest yield among ASX dividend shares, but it does have a strong track record of growing its dividend payout over time. And that makes the CSL shares an interesting option for income-focused investors.

But what exactly does that passive income look like?

Let’s take a look.

What’s the latest out of CSL shares?

At the time of writing, CSL shares are down around 1% and changing hands at $171.90 a piece. But the shares jumped higher in mid-August after it posted an impressive FY26 earnings result. An investor rotation back into ASX healthcare shares has also helped drive its share price higher.

CSL shares are now up around 28% over the past month alone, and are nearly flat for the year-to-date.

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

At the current share price of $171.90, a $10,000 investment would buy around 58 shares. 

What dividend does the biotech stock pay its shareholders?

CSL has a long history of paying its shareholders a regular partially franked or unfranked dividend dating back to 2004. These are typically paid out every six months, in April and October.

As part of its FY26 results announcement last month, management declared an unfranked dividend of $2.277 per share. Combined with its $1.81 interim dividend paid in April, that brings CSL’s total FY26 dividend to $4.086.

At the time of writing, this translates to a dividend yield of roughly 2.4% for FY26. 

Going forward, analyst projections suggest CSL could increase its annual payout per share to US$3.10 (equivalent to AU$4.30) in FY27. That translates to a forward dividend yield of 2.5% at the time of writing.

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

I’ve crunched the numbers using the estimated dividend payout figures above, to estimate roughly how much passive income investors can expect from a $10,000 investment in CSL shares.

In FY26, your 58 shares would generate around $236.98 in passive income.

If that increases its dividend to the forecasted $4.30 per share in FY27, those 58 shares would generate around $249.40 in passive income for the year.

What do brokers tip next for CSL shares?

I think there is a lot of potential for the company to grow over the next few years. CSL is operating in a high-growth market, and its blood plasma division dominates the market for rare blood disorders and immunoglobulin products.

And CSL’s latest results show that the company’s growth initiatives are starting to work.

At the moment, forecasts show the experts are mixed about the outlook for CSL shares going forward, but the majority see an upside ahead. 

TradingView data shows that 10 out of 19 have a hold rating on the stock. The other nine rate the shares as a buy/strong buy.

The average $173.04 target price implies a potential upside of around 1%, at the time of writing. But some expect the shares to jump another 20% to $206.76 over the next 12 months.

The post If I invest $10,000 in CSL shares, what passive income will I earn in FY27? appeared first on The Motley Fool Australia.

More reading

• UBS names its 10 top ASX picks for the next 3-6 months
• Are CSL shares still cheap after almost doubling since June?
• CSL led the ASX healthcare shares rebound. Can it continue?
• These ASX shares benefit from a high Aussie dollar
• CSL shares are up 94% from their low. What are brokers forecasting next?

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

Retirement is supposed to be the point when years of saving and investing finally start paying off.

But what if the timing is terrible?

Imagine retiring, beginning to draw on your portfolio, and then watching the ASX fall sharply within the first year.

That would be uncomfortable, but I do not think it automatically ruins a retirement plan.

The early years can be particularly important

A market crash becomes more difficult when an investor is withdrawing money at the same time.

If shares fall heavily and I need to sell some of them to fund living costs, I am locking in losses while the portfolio is already under pressure.

That can leave less capital available to participate in the eventual recovery.

This is often described as sequence-of-returns risk. The order in which good and bad years arrive can have a major impact once withdrawals begin.

Two retirees could earn the same average return over a long period and still end up with very different outcomes depending on when the weakest years occurred.

I would avoid relying on forced selling

If I were approaching retirement, I would want enough flexibility that I was not forced to sell ASX shares immediately after a large fall.

That could mean keeping some cash or lower-volatility assets available for near-term spending.

It could also mean holding companies that continue generating dividends through weaker markets like Coles Group Ltd (ASX: COL) or Telstra Group Ltd (ASX: TLS), although I would never assume those payments are guaranteed.

The aim would be to give the growth side of the portfolio time to recover.

I would still keep growth investments

A crash just after retirement might tempt an investor to move everything into cash.

I would be careful about doing that. Someone retiring at 60 or 65 could still have decades of investing ahead of them. Over that timeframe, inflation can gradually erode the purchasing power of a portfolio that is too defensive.

I would still want exposure to strong ASX businesses and potentially international shares or exchange-traded funds (ETFs) that can grow earnings over time.

The balance between growth and stability may change, but I would not want retirement to mark the end of long-term investing.

Spending can also be flexible

Another tool is simply adjusting withdrawals when the ASX share market is weak.

If the portfolio suffered a large fall, I might temporarily delay major discretionary spending or take slightly less from the portfolio if my circumstances allowed.

Even small changes can reduce the pressure to sell assets at poor prices.

That flexibility becomes much easier if retirement spending has been planned with some margin for error.

Foolish takeaway

An ASX share market crash immediately after retirement would be a difficult start, but it does not have to derail the years ahead.

I would want a retirement portfolio that gives me options during weak markets rather than depending on continually rising share prices.

For me, the combination of some near-term liquidity, ongoing growth exposure, diversification, and flexible withdrawals would make a bad first year far easier to manage.

The post What happens if the ASX share market crashes just after I retire? appeared first on The Motley Fool Australia.

More reading

• Is the Telstra share price a buy for its 6.25% dividend yield?
• How much passive income could a $500,000 superannuation balance generate?
• How much is needed in superannuation for $3,000 in weekly passive income?
• How much do I need in my superannuation to earn $10,000 passive income every month?
• Post-earnings: I’d buy these ASX dividend stocks for income today

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

ASX 200 healthcare shares are on a roll, up by a staggering 42% since the sector began a rapid rebound, after a horror year, on 3 June.

The S&P/ASX 200 Health Care Index (ASX: XHJ) reached a 9-year low on 3 June following a 39% 12-month pummelling.

Healthcare shares tanked due to many industry headwinds, including the FX rate for companies reporting in US dollars; cost of living pressures; higher shipping and labour costs, and US regulatory uncertainty for biotech businesses. 

Value investors have since swooped in, and reassuring FY26 results and guidance during earnings season last month propelled the rebound further.

Healthcare shares are now 42% higher since 3 June versus a 2% rise for the broader S&P/ASX 200 Index (ASX: XJO).

During the August earnings season, ASX 200 healthcare shares jumped 19% while the ASX 200 moved up 1.1%.

Here are 3 ASX 200 healthcare shares with buy recommendations and promising 12-month price targets from Bell Potter.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is $2.21, down 0.9% today and steady over 12 months. 

Since 3 June, this ASX 200 healthcare share has risen 9.4%.

Bell Potter has a buy recommendation on Mesoblast shares with a $4.45 target.

This implies the Mesoblast share price could double over the next 12 months.

Analyst John Hester said: 

(All US$m) Revenues $120.2m and loss at the EBIT line -$49.9m were in line with our forecast. Ryoncil sales of $115m were at the mid-point of the guidance range.

Operating expenses $153m were dominated by R&D expense ($97m), driven by the investment in label expansion for Ryoncil and the ongoing Phase 3 trial for Rexlemestrocel in chronic lower back (CLBP).

Loss at NPAT $57.4m with net cash burn for the year -$43.8m inclusive of just -$13m in 2H26.

MSB has a long pipeline and label expansions for Ryoncil alone which we expect will come to market on a 3 to 5 year time horizon.

Pivotal moments in the short term include the interim readout on adult GvHD and the pending submission of the BLA for Rexlemestrocel in HF.

Neuren Pharmaceuticals Ltd (ASX: NEU)

The Neuren Pharmaceuticals share price is steady at $20.46 on Tuesday, and down 2% over 12 months.

Since 3 June, this ASX 200 healthcare share has streaked 51% higher.

Bell Potter has a buy rating on Neuren Pharmaceuticals shares with a $25.50 target.

This implies a potential 25% gain over the next 12 months.

Neuren Pharmaceuticals has also just started paying investors dividends.

Analyst Thomas Wakim said:

NEU remains very well capitalised with $286.5m in cash at 30-June. Considering the (1) strong cash position, (2) recent Daybue guidance upgrade, and (3) imminent Daybue launch in Europe, NEU have commenced a dividend program, starting with an interim dividend of $0.15/share (fully franked).

The dividend provides a moderate yield for shareholders, however capital growth will dominate future shareholder returns and is the reason to own the stock in our view, particularly as the binary Phase 3 readout in PMS draws closer (estimated in ~1H CY28), the result of which will largely determine whether NEU is a one-trick pony or whether they repeat the glory a second time round with NNZ-2591.

Sonic Healthcare Ltd (ASX: SHL)

The Sonic Healthcare share price is $19.44, down 0.7% today and down 15% over 12 months. 

Since 3 June, this ASX 200 healthcare share has risen 3%.

Bell Potter says ‘buy’ with a $27.50 target, suggesting a possible 41% upside ahead.

Analyst Martyn Jacobs commented:

SHL reported EBITDA of c.$1.92b (cc) which was within the guidance range of c.$1.87b – c.$1.95b.

On a reported basis, EBITDA of c.$1.93 was in line with consensus, but c.1.5% below BPe.

The result was impacted by a range of nonrecurring items that more than offset the one-off gain from the Brisbane lab sale &
leaseback transaction.

While the headline EBITDA margin was c.10bp lower than pcp, margins in the 2H showed meaningful improvement at c.19% v
c.16.7%.

The post 3 ASX healthcare shares to buy with 25% to 100% upside as sector rebound races higher appeared first on The Motley Fool Australia.

More reading

• How much passive income could a $500,000 superannuation balance generate?
• How much do I need in my superannuation to earn $10,000 passive income every month?
• Why brokers see 85% upside for this ASX biotech stock
• Sonic Healthcare shares crash 21%: What on earth is going on?
• Why these ASX shares are worth watching closely today

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.