Owning Telstra Group Ltd (ASX: TLS) shares has been a rewarding choice for passive income over the last few years. Its rising payouts have unlocked a growing dividend yield for shareholders.

With how the ASX telco share has drifted 13% lower from May 2026, prospective investors are now being offered a lot of potential income.

When a share price falls, it increases the dividend yield at the same rate. For example, if a business had a 5% dividend yield and the share price falls 10%, the yield becomes 5.5%. A similar sort of effect has happened with Telstra this year.

A rising dividend

While the market may not be as optimistic about the business as it was earlier this year, the dividend payments continue to grow, which I think implies the board of directors remains positive about the future and its financials.

In the FY26 result, Telstra’s board of directors decided to hike its annual dividend per share by 10.5% to 21 cents. That translates into a dividend yield of 4.4% excluding franking credits and approximately 6% including franking credits.

However, I’d say the FY26 dividend is now old news and we should look ahead to the FY27 dividend because we’re already a couple of months into the 2027 financial year.

According to the projection on CMC Invest, the business could grow its annual dividend per share by another 4.75% in FY27. This would mean Telstra could provide a dividend yield of 4.6% excluding franking credits and approximately 6.25% including franking credits in FY27.

Is the Telstra share price a buy?

I wouldn’t necessarily invest in an ASX share just for the passive income. But, if dividends are a primary focus, then Telstra shares could be a solid option.

In FY26, the company grew cash operating profit (EBIT) by 8% to $4.7 billion, underlying net profit rose 4.9% to $2.5 billion and cash earnings per share (EPS) jumped 14% to 25.5 cents.

With how the company has already invested heavily in its 5G network, I think the business’ cash earnings can continue rising at a pleasing pace, funding bigger dividends.

Its mobile earnings continue to rise. FY26 mobile income grew 3% to $11.4 billion and mobile operating profit (EBITDA) grew 3% to $5.4 billion. It saw both mobile users and average revenue per user (ARPU) increase.

I think the company’s earnings can rise again in FY27 thanks to mobile price increases.

I reckon the Telstra share price is attractive for passive income and potential long-term capital growth as Australia becomes increasingly digital.

The post Is the Telstra share price a buy for its 6.25% dividend yield? 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 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.

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.