I’d describe Sigma Healthcare Ltd (ASX: SIG) as one of Australia’s top shares for a variety of reasons, and I think right now is a great time to invest.

Most of the company’s profit generation comes through its ownership of the Chemist Warehouse franchise business. It also owns the Amcal and Discount Drug Store businesses.

In my view, Sigma Healthcare is delivering exceptional growth and its outlook is very compelling. Let me run through three very attractive elements.

Strong Australian growth         

The company’s core earnings driver is Australia, where a vast majority of the franchise stores are located. There were 561 Australian Chemist Warehouse stores at the end of FY26, following the addition of 24 locations in FY26.

The Australian segment saw revenue growth of 14.9% to $10.4 billion, with Chemist Warehouse branded like-for-like network sales growth of 13.4% amid continued demand for GLP-1 medicines.

Over the long term, it has franchise network targets of around 900 Chemist Warehouse stores, around 300 Amcal locations, and approximately 150 Discount Drug Stores.

It expects to open 13 Chemist Warehouse-branded stores in the first half of FY27, with 12 refurbishments also planned.

The fact that the business continues to deliver double-digit revenue growth after such a long time says to me that the business can deliver good revenue growth for the foreseeable future.

Exciting international growth

Australia is not the only market where the company is growing. Excitingly, it has a presence in New Zealand, Ireland, the UAE, and UK. It also has a presence in China where it’s focusing on profitable online sales.

In FY26, 20 stores were opened in international markets, with 14 new stores in New Zealand and four new ones in Ireland.

Impressively, sales grew by 45% in Ireland and 20.3% in New Zealand during FY26. Overall, international revenue increased 33% to $421.4 million.

The business is entering the UK market in FY27, which could be another exciting growth market for one of Australia’s top shares. The success in nearby Ireland – which is now profitable – is a good sign for the UK, in my view.

I think the company could expand to other markets in the longer term.

Operating leverage

Not only is the business growing its top line rapidly, but I think profit can increase even faster thanks to its rising profit margins. Remember, it’s normally profit growth rather than revenue growth that can send a share price higher.

The FY26 financials were a great demonstration of its ability to deliver stronger profits.

While overall revenue rose 15.5%, normalised operating profit (EBIT) climbed 20.6% to $1.09 billion, and normalised net profit grew 22.3% to $732.3 million. It also reduced net debt to $663 million.

Australian segment normalised EBIT grew 18.3% and international segment EBIT soared 91.3% to $55.8 million.

I think the strengthening profit margins are a great sign for one of Australia’s top shares to continue becoming more valuable.

After falling 15% since February 2026, the Sigma Healthcare share price is now valued at 35 times FY27’s estimated earnings. I think Sigma Healthcare, one of Australia’s top shares, could be undervalued at this level.

But, it’s not the only stock I’ve got my eyes on.

The post A rare buying opportunity in 1 of Australia’s top shares? 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 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.

A $550,000 superannuation balance sits well above the typical Australian average for retirees, but it falls short of what you need for a comfortable retirement lifestyle. 

It’s the middle ground which can act as a solid base, but it’s not quite enough to live off.

But what if you didn’t need to live off your superannuation balance alone? What if your superannuation generated enough passive income to partially, or even fully, support you when you quit work?

So, how much passive income could a $550,000 super balance realistically generate each month?

Let’s take a look.

What passive income can I earn off a $550,000 superannuation balance?

To calculate your passive income, you need to multiply your total superannuation balance by the overall dividend yield of your portfolio.

The tricky part is that the answer varies widely depending on what dividend yield you pick.

So, as your dividend yield increases, the passive income you can earn off your $550,000 superannuation balance also goes up.  

Also note, the figures are based on cash dividends before any tax or franking credit benefits.

What can I earn off a 2% to 3% yielding portfolio?

If your portfolio yields 2% or 3%, you’ll earn around $11,000 or $16,500, respectively.

That’s because $550,000 x 2% = $11,000 per year in dividend payments, and $550,000 x 3% = $16,500 in dividends.

Around this level, you could invest in major long-standing ASX blue-chip companies like Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), CSL Ltd (ASX: CSL), or Macquarie Group Ltd (ASX: MQG). These all yield around the 2% to 3% level at the time of writing.

What can I earn if my portfolio yields around 4% or 5%?

If your portfolio has a slightly higher dividend yield, closer to 4% or 5%, you could earn a much higher dividend income of around $22,000 or $27,500, respectively.

There are still plenty of good-quality stocks yielding around this level. For example, mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO). Major banks National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) also yield around the 4% to 5% range. As do energy majors Woodside Energy Group Ltd (ASX: WDS) and APA Group (ASX: APA). 

What if I want to invest my superannuation in high-yielding shares around 10% or even higher?

If you have the stomach to withstand the volatility and elevated risk, you could earn a much higher passive income from high-yielding stocks.

At a 10% yield, a $550,000 balance could earn about $55,000.

And there are still several options paying around this level too. If you’re after a single stock, then GQG Partners Inc (ASX: GQG) and IPH Ltd (ASX: IPH) both yield above 11% at the time of writing.

Another option is to invest your super into an ETF like the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX), the BetaShares Global Cybersecurity ETF (ASX: HACK), or the iShares S&P 500 ETF (ASX: IVV). These all yield 10% or higher at the time of writing.

The post How much passive income can I earn off a $550,000 superannuation balance? 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 positions in and has recommended BetaShares Global Cybersecurity ETF, CSL, Macquarie Group, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool Australia has recommended BHP Group, CSL, Gqg Partners, IPH Ltd , Macquarie Group, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Santos Ltd (ASX: STO) share price has rewarded investors handsomely so far in 2026.

The energy producer’s shares have climbed around 37% since the beginning of the year and are now trading at approximately $8.41, close to a 52-week high.

After such a strong run, I think it is worth asking whether there is still enough value left for investors buying today.

Earnings could move higher

The first thing I would look at is where Santos’ earnings are expected to go from here.

Santos has substantial exposure to natural gas and liquefied natural gas (LNG), which gives the business opportunities to benefit from continued energy demand across Australia and Asia.

According to consensus estimates, earnings per share are forecast to come in at 60.2 cents in FY26 before increasing to 75.3 cents in FY27 and 77.9 cents in FY28.

Of course, earnings from an energy producer will never be completely predictable. Commodity prices can move quickly, while large projects bring execution and cost risks.

Still, if analysts are close to the mark, the earnings outlook makes today’s share price considerably easier to justify.

What are investors paying?

At $8.41, Santos shares are trading on a P/E ratio of roughly 14 times forecast FY26 earnings.

The valuation drops to around 11 times FY27 earnings and remains close to that level based on the FY28 forecast.

I think that looks quite reasonable.

Santos is a cyclical energy producer, so I would not expect it to command the type of earnings multiple investors might pay for a highly predictable defensive or technology business.

But an earnings multiple of around 11 times does not look demanding if profits rise as currently expected.

Dividends add to the case

There could also be a meaningful income stream for shareholders.

Consensus forecasts point to dividends per share of 41.7 cents in FY26, 49.4 cents in FY27, and 64.4 cents in FY28.

At today’s share price, those estimates imply forward dividend yields of roughly 5%, 5.9%, and 7.7%, respectively.

I would be cautious about assuming the FY28 payment will definitely arrive. Energy earnings can change significantly with commodity prices, and dividends can move with them.

Even so, the forecasts suggest investors may receive a substantial amount of cash while they wait for the longer-term investment case to play out.

What could go wrong?

There is genuine uncertainty to consider.

Oil and LNG prices can weaken, development projects can cost more than expected, and Santos operates in a capital-intensive industry where investment decisions can have consequences for many years.

That means I would want a margin of safety rather than buying the shares purely because forecast earnings are rising.

At around 11 times FY27 earnings, I think there is still one.

Foolish takeaway

The Santos share price has already had an excellent 2026, but I do not think the rally has exhausted the opportunity.

At $8.41, I would describe the shares as good value rather than obviously cheap.

Forecast earnings growth brings the forward valuation down quickly, while the potential dividend income adds another reason to be interested.

For investors comfortable with commodity-price volatility and the risks that come with large energy projects, I think Santos shares are still a buy at current levels.

The post Is the Santos share price still good value after rising 37% in 2026? appeared first on The Motley Fool Australia.

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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 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.