For retirees, building a portfolio of quality ASX dividend shares could provide a valuable income stream alongside superannuation, while retaining potential for long-term growth.

Super remains a cornerstone of retirement planning, but a diversified basket of dividend-paying companies may give investors greater flexibility and regular cash flow.

Start with dependable income

A successful superannuation portfolio isn’t necessarily about chasing the highest dividend yields. Instead, investors should look for companies with resilient earnings, sustainable payouts and the potential to grow dividends over time.

Woolworths Group Ltd (ASX: WOW) is one example. Supermarkets may not be the most exciting businesses, but Australians continue buying groceries and household essentials through different economic conditions.

Diversification is also important. Building a portfolio dominated by banks or miners can create significant exposure to a particular part of the economic cycle.

Add infrastructure income

APA Group (ASX: APA) could provide another source of diversification for the superannuation portfolio.

APA owns and operates energy infrastructure, including gas pipelines and renewable energy assets. That means its revenue is linked more closely to essential infrastructure and contracted arrangements than simply the underlying commodity price.

For an income-focused portfolio, adding businesses with different earnings drivers can help reduce reliance on any single sector.

Look for dividend consistency

There aren’t many ASX companies with a dividend history quite like Sonic Healthcare Ltd (ASX: SHL).

The healthcare giant has paid dividends since 1994 and has increased its payout almost every year since then. The exceptions were 2011 and 2012, when Sonic maintained rather than increased its dividend.

In FY26, Sonic continued its progressive dividend policy, lifting the payout by 1 cent per share to $1.08.

Based on the current share price, that’s a dividend yield of approximately 5.4% before franking credits, or roughly 7% including franking credits.

Of course, a high yield is only attractive if the underlying earnings can support it.

Don’t ignore dividend growth

Wesfarmers Ltd (ASX: WES) is another potential superannuation portfolio candidate.

Its dividend yield isn’t normally among the highest on the ASX. But that’s not necessarily a problem.

Wesfarmers has historically focused on reinvesting in its businesses, improving operations and allocating capital towards growth opportunities. If those investments translate into higher earnings, they could support larger dividends over time.

Foolish takeaway

Generating $50,000 a year requires meaningful capital. For example, a portfolio yielding 5% would need $1 million invested to produce $50,000 in annual income before considering tax, franking credits and changes in dividends.

The key is not simply finding the biggest yields. A diversified superannuation portfolio that combines dependable income, dividend growth, and resilient businesses may offer a more sustainable path to retirement cash flow.

The post How to build a superannuation portfolio generating $50,000 a year appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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 Apa Group. The Motley Fool Australia has recommended Sonic Healthcare and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owning Woodside Energy Group Ltd (ASX: WDS) shares could be an underrated choice for passive income in the coming years. As one of the largest oil and gas businesses in the Asia Pacific region, the business is able to give useful exposure to energy markets.

Woodside has energy projects around the world, including Australia, Africa and North America.

Given the ongoing situation in the Middle East, I think Woodside is an interesting one to consider in the current environment. The ASX energy share could pay large dividend income in the coming reporting periods, so let’s look at the passive income projections.

Upcoming dividends

Higher energy prices could significantly boost the company’s earnings and dividends.

According to the projection on Commsec, the business could deliver pleasing passive income for the next few financial years. Woodside’s annual dividend per share is forecast to be $1.76 in 2026 – the company’s FY26 finishes in December 2026.

That forecast for the 2026 financial year translates into a grossed-up dividend yield of 7.6%, including franking credits, at the time of writing.

The 2027 financial year payout could be even better. According to the estimate on Commsec, Woodside is projected to pay an annual dividend per share of $2.14 in the 2027 financial year. That would be a grossed-up dividend yield of 9.3%, including franking credits.

Not many businesses inside the S&P/ASX 200 Index (ASX: XJO) are projected to pay passive income that large in FY27. It looks like a particularly large dividend yield when compared to the yields of other ASX blue-chip shares of Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).

A $4,000 investment in Woodside shares

With a large dividend yield, it’s clear that investors can unlock significant dividend income. We’re going to look at what a $4,000 investment could unlock for investors.

By investing in $4,000 in the ASX energy share today, an investor may be able to buy 121 Woodside shares, which could unlock around $260 dividend cash and $361.91 dividend income overall (including franking credits).

That’s an impressive level of investment income, in my view.

Is this a good time to invest in the ASX energy share?

Analysts have given their view on the business amid the events in the Middle East.

According to CMC Invest, there have been nine analyst ratings on the business within the last three months. The average price target from those experts is $31.34, implying a possible decline of 4% over the next year.

So, while it may provide significant passive income, the experts seem to think it’s fully priced. Therefore, there could be better ASX share opportunities out there to buy.

The post If I buy $4,000 of Woodside shares, how much dividend income will I receive? appeared first on The Motley Fool Australia.

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• 2 ASX dividend gems I’d buy today for $10,000 a year in passive income
• $10,000 invested in Santos and Woodside shares 3 years ago is now worth…
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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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Once a week, I like to look at ASIC’s short position report to find out which ASX shares are being targeted by short sellers.

That’s because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

The top 10 most shorted ASX shares

• Lotus Resources Ltd (ASX: LOT) has moved back to the top of the table with short interest of 15.9%, up from 15% last week. Short sellers may still have doubts over the uranium developer’s path to production and whether stronger uranium demand will arrive quickly enough to support its plans.
• DroneShield Ltd (ASX: DRO) has short interest of 15.4%, which is broadly unchanged week on week. The counter-drone technology company remains a favourite with short sellers, possibly due to its valuation and uncertainty surrounding the ASIC investigation.
• 4DMedical Ltd (ASX: 4DX) has seen its short interest ease to 12.2%. Its valuation remains very high relative to its current revenue base, which appears to be keeping short sellers interested despite its significant commercial potential.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has short interest of 11.8%, which is down again week on week. Short sellers may still need convincing that its restructuring efforts can deliver the earnings recovery investors are hoping for.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest ease slightly to 11.7%. Weakness in luxury wine demand and uncertainty around the pace of improvement in the Americas could be keeping short sellers interested.
• Zip Co Ltd (ASX: ZIP) has seen its short interest rise to 11.6%. The buy now pay later company’s strong recovery may have prompted some short sellers to question whether its valuation now leaves enough room for disappointment.
• PLS Group Ltd (ASX: PLS) has 11.2% of its shares held short, which is up slightly week on week. Short sellers may be betting that the lithium market remains difficult for longer, delaying a meaningful recovery in margins and cash flow.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rise to 11.1%. This may reflect concerns over the strength of consumer travel spending and how quickly the company can improve margins.
• Paladin Energy Ltd (ASX: PDN) has short interest of 11%, which is up from 10.7% last week. Short sellers may remain cautious over production expectations and whether the uranium price can stay strong enough to support the current outlook.
• IperionX Ltd (ASX: IPX) has entered the top ten with short interest of 10.6%. Short sellers may be questioning the company’s valuation and the execution required as it works to scale up its US titanium operations.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• $10,000 invested in DroneShield and Core Lithium shares 3 years ago is now worth…
• Energy shares rose while the ASX 200 slumped last week. Here’s why
• DroneShield shares are down 75%. Could this huge short bet backfire?
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• 9 ASX 200 shares earning strengthened buy ratings this week

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, DroneShield, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Domino’s Pizza Enterprises and Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.