Netwealth Group Ltd (ASX: NWL) shares have had a difficult 12 months.

The wealth management platform company’s shares are down around 40% over that period and fell to a fresh 52-week low of $18.29 on Wednesday.

Here’s why I think the lower share price has created an opportunity for investors with this S&P/ASX 200 Index (ASX: XJO) share.

This ASX 200 share is still growing

The first thing I would look at is whether Netwealth’s weaker share price reflects a weaker business.

I do not think that is the case.

Netwealth finished FY26 with $135.7 billion of funds under administration, up more than 20% over the year. It also continued attracting strong net inflows and gaining market share.

That tells me financial advisers and their clients are still putting more money onto the platform.

As those assets grow, Netwealth has more opportunities to earn administration and investment-related revenue from the same expanding customer base.

I think that remains a strong long-term foundation.

AI has added a concern

Artificial intelligence (AI) has recently given investors something else to think about.

Anthropic launched Claude for Financial Advisors on 14 September, providing wealth managers with specialised data connectors and workflow tools. That followed OpenAI launching its own financial industry offering just days earlier.

I can understand why that has caused some concern.

If powerful AI tools can automate more of the research, administration, and client work carried out by financial advisers, investors may question how much value traditional wealth technology platforms can continue adding.

I think it is too early to assume AI will simply replace platforms such as Netwealth.

Financial advisers still need to administer client assets, meet regulatory requirements, execute investments, and keep large amounts of sensitive financial information organised. AI could change how that work is done, but I think established platforms can also use the technology themselves.

The latest acquisition makes more sense in that context

Netwealth’s acquisition announced this week is particularly interesting for that reason.

The company has agreed to buy Paradino, which operates an AI-enabled workflow and automation platform for financial advisers.

Its technology can assist with areas such as documents, meeting notes, client communications, and other administrative work.

The acquisition itself is not large enough to transform Netwealth overnight.

But I like what it says about the direction of the business.

Rather than watching AI develop from the sidelines, Netwealth is bringing more of that capability into its own adviser technology offering.

If AI can help advisers save time and manage more clients efficiently, I think it could ultimately strengthen the value of the wider Netwealth ecosystem rather than undermine it.

Why I would buy before sentiment improves

There are still risks.

Netwealth is investing heavily, margins could face some near-term pressure, and AI could reshape parts of the financial advice industry faster than expected.

But this ASX 200 share is still growing assets, attracting inflows, and investing in technology that could keep its platform relevant as adviser workflows change.

At $18.29, I think the 40% decline has created a much more attractive entry point.

Foolish takeaway

I would be comfortable buying Netwealth shares at current levels.

AI has added a new source of uncertainty, but I do not think it removes the need for wealth platforms or the long-term opportunity in financial advice technology.

If the ASX 200 share can combine its existing platform with better AI tools while continuing to attract client assets, I think today’s weaker sentiment could eventually look like a good buying opportunity.

The post Down 40%: Why I’d buy this ASX 200 share before sentiment improves appeared first on The Motley Fool Australia.

More reading

• Netwealth shares could be set to rise 60% in the next 12 months – Expert
• 5 things to watch on the ASX 200 on Wednesday
• Netwealth to acquire AI platform Paradino, boosting adviser automation
• ASX 200 bank shares led a financial sector rebound last week
• Where I’d invest $15,000 in ASX shares now

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

Wesfarmers vs Telstra shares: which dividend stock is better?

Looking to boost your passive income with ASX blue chips? Wesfarmers Ltd (ASX: WES) and Telstra Group Ltd (ASX: TLS) are two of the market’s giants. Each is a household name, popular with Australian investors for their steady dividends and defensive businesses. If you’re weighing up Wesfarmers vs Telstra shares for your dividend portfolio, here’s how the two compare in 2026.

The case for Wesfarmers

Wesfarmers is one of Australia’s oldest and largest companies. From its 1914 beginnings as a WA farmers’ cooperative, it’s grown into a diversified conglomerate spanning retail, office supplies, pharmaceuticals, and chemicals. Its subsidiaries include iconic names like Bunnings, Kmart, Officeworks, and Priceline. That means revenue is underpinned by everyday essentials, from hardware to health.

For fundamentals, Wesfarmers carries a hefty market cap of $82.64 billion, making it an ASX heavyweight. Its P/E ratio currently sits at 28.64, reflecting a market willing to pay a premium for its brand portfolio and reliability. The company’s dividend yield is 3.06%, fully franked, with a dividend per share of $2.22. Notably, Wesfarmers has a well-established record of regular, fully franked dividends extending back decades, including occasional special payouts. However, its shares are down -7.77% year to date as of mid-September 2026.

The case for Telstra

Telstra is Australia’s dominant telecommunications provider, with roots stretching back to the country’s telecommunications beginnings. Today, Telstra runs core infrastructure and consumer businesses including ServeCo, InfraCo Fixed, Amplitel and Telstra International, all part of a 2022 corporate restructure. The company not only serves millions of Aussies but also has a global presence in 20 countries.

Telstra clocks in with a market capitalisation of $53.91 billion—smaller than Wesfarmers but still a major player by any measure. Its P/E ratio is 24.27, which is noticeably cheaper than Wesfarmers on current earnings. For income investors, Telstra is offering a higher dividend yield: 4.35%, mostly franked (90%+ in recent years). Its dividend per share stands at $0.21 and, pleasingly, Telstra’s dividend growth has resumed after a long flat patch. Its shares are up a solid 3.49% year to date as of the latest data.

Valuation comparison

Here’s how the numbers stack up side by side:

Metric	Wesfarmers	Telstra
Market Cap	$82.64 billion	$53.91 billion
P/E Ratio	28.64	24.27
Dividend Yield	3.06% (100% franked)	4.35% (90% franked)
Dividend per Share	$2.22	$0.21
Year-to-date Return	-7.77%	+3.49%

Wesfarmers is bigger and arguably more diversified, but you’re paying a higher price for it, both in terms of P/E and a lower yield. Telstra, on the other hand, currently offers a much more generous dividend yield and is trading at a lower earnings multiple.

Recent share price performance

Share prices for both companies, as at mid-September 2026, tell an interesting story.

Wesfarmers shares have retreated from above $83 to $72.83 over the past three weeks. That translates to a loss of about 12% in less than a month. The broader 2026 year-to-date figure is also negative at -7.77%.

Telstra, by contrast, has been stable or slightly positive. In September, its price has hovered around the $4.70–$4.85 level, with occasional dips and rebounds. Telstra shares are up 3.49% for the year to date, showing relative resilience and steady investor support.

All prices and returns are as per the data provided, current to 15 September 2026.

Which is the better buy?

If I’m choosing for dividend income right now, my pick would be Telstra. The numbers are pretty clear: Telstra’s dividend yield of 4.35% is comfortably ahead of Wesfarmers’ 3.06%, and while franking isn’t quite 100%, it’s still generous for most Australian shareholders. Add to that its lower P/E ratio, indicating better value, and its positive share price momentum so far in 2026.

Wesfarmers is a quality blue-chip and has one of the best dividend records on the ASX, but you’re currently paying a premium for its diversification and brand power. The lower yield and negative short-term return make it less attractive for pure income seekers. For yield-focused investors looking for relatively defensive income in 2026, I think Telstra is the more appealing buy out of the two right now.

The post Wesfarmers vs Telstra: Which ASX dividend stock comes out on top? appeared first on The Motley Fool Australia.

More reading

• How much passive income could I earn from a $650,000 superannuation balance?
• How to make $26,000 of passive income from ASX shares
• How much of my superannuation do I need to invest to earn $60,000 of passive income in 2027?
• How much superannuation do I need to earn $70,000 per year in passive income?
• Buy, hold, sell: Domino’s Pizza, Telix Pharmaceuticals, Westfarmers shares

Motley Fool contributor Laura Stewart 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 positions in and has recommended Telstra Group. 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

A $1.2 million superannuation balance is a substantial amount of money.

But what sort of retirement income could it fund?

The answer to that depends on how the money is invested and how quickly the retiree is comfortable drawing it down.

Start with the withdrawal rate

One simple way to think about retirement income is as a percentage of the starting balance.

If someone withdrew 4% from a $1.2 million portfolio in the first year, that would provide around $48,000.

A 5% withdrawal would increase the annual income to $60,000, while 6% would provide $72,000.

That gives us a fairly wide range.

I would not automatically choose the highest figure simply because the portfolio could support it in the first year. Retirement could last for decades, and the balance still needs to cope with market downturns, inflation, and future spending.

For me, the amount withdrawn would need to make sense alongside the investments held and the lifestyle I wanted.

Income does not have to come entirely from dividends

It is important to note that a $1.2 million portfolio doesn’t necessarily have to generate a 5% dividend yield to provide $60,000 of annual income.

Retirement income can come from several places.

A portfolio might receive dividends and distributions from shares and exchange-traded funds (ETFs), interest from defensive assets, and cash from selling a small portion of investments when required.

That gives an investor more freedom when building the portfolio.

I would rather hold a mixture of investments with good long-term prospects than force the entire $1.2 million into high-yield assets purely to produce a particular income figure.

Growth still has a role

Even after retirement, I would want part of the portfolio invested for growth.

If someone retires in their 60s, their superannuation may still need to support them for another 30 years.

Over that period, living costs are likely to rise.

An income of $60,000 may feel comfortable today, but it will not have the same purchasing power decades from now.

Holding Australian and international shares gives the portfolio a chance to keep growing while withdrawals are being made.

Of course, share markets will not rise every year. That is why I would also want some cash or more defensive investments available for spending during weaker periods.

How much would I aim for?

If I had $1.2 million in superannuation, I would probably think about an initial income somewhere around $48,000 to $60,000 a year rather than immediately targeting $72,000.

That is not because $72,000 is impossible.

It simply places more pressure on the portfolio from the beginning, particularly if withdrawals later need to rise with inflation.

Someone with lower expenses may be happy to take much less, while another retiree may deliberately draw down their capital more quickly because they want to spend more in the early years of retirement.

There is no single number that will suit everyone.

Foolish takeaway

A $1.2 million superannuation balance could potentially provide a meaningful retirement income without requiring an unusually high investment return.

At withdrawal rates of 4% to 5%, it could provide roughly $48,000 to $60,000 in the first year.

For me, the bigger goal would be finding a level of income that supports the lifestyle I wanted while still giving the remaining balance a chance to keep working for the years ahead.

The post How much income could a $1.2 million superannuation balance generate? appeared first on The Motley Fool Australia.

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• Is the Australian Age Pension enough to retire comfortably?
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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.