What if the biggest dividend yield on the ASX is actually a trap? For investors chasing income for decades, I’d rather own quality ASX shares with resilient cash flows, sustainable payouts and room to grow their dividends.

A strong ASX dividend portfolio should also avoid relying too heavily on any single industry. The goal is to build several income streams that can keep flowing through different economic conditions.

A defensive foundation

Coles Group Ltd (ASX: COL) is one example. Supermarkets may not be glamorous, but Australians need groceries and household essentials in good times and bad.

Coles still faces competition, rising costs and changing consumer behaviour, but its defensive business model and recurring customer demand can provide the earnings stability income investors seek.

Consensus forecasts point to fully franked dividends per share of 83.5 cents in FY27, 88.8 cents in FY28 and 97.4 cents in FY29. That equates to estimated dividend yields of around 3.5% to 4%.

Add essential infrastructure

Transurban Group (ASX: TCL) could provide another income stream. The toll-road operator owns and operates infrastructure across Australia and North America, collecting revenue from millions of journeys.

That can produce relatively predictable cash flows, although investors need to consider its debt, capital requirements and regulatory risks.

For a dividend portfolio, toll roads offer exposure to essential infrastructure without relying directly on consumer spending or commodity prices. Transurban also has major projects that could support future growth.

The ASX shares currently offer a forward FY2027 dividend yield of around 5.2%.

Diversify beyond banks and miners

APA Group (ASX: APA) could add another layer of diversification. The company owns and operates energy infrastructure, including gas pipelines and renewable energy assets. Its revenues are therefore tied more closely to infrastructure than the underlying commodity price itself.

Based on current estimates, this ASX share offers an FY2027 dividend yield of approximately 5.4%.

Property can also have a place in an income-focused portfolio. Digico Infrastructure REIT (ASX: DGT) provides exposure to global data centres through their ownership, operation and development.

Bell Potter forecasts dividend yields of 5.9% in FY2027, 7.3% in FY2028 and 8.3% in FY2029.

Don’t overlook dividend growth

A high yield today doesn’t necessarily mean higher income tomorrow.

Commonwealth Bank of Australia (ASX: CBA) has a long history of rewarding shareholders through dividends and capital growth. Its scale, balance sheet and strong market position make it a major ASX income stock, although banks remain exposed to economic cycles.

Wesfarmers Ltd (ASX: WES) is another ASX share I’d consider. Its dividend yield isn’t usually among the highest on the ASX, but that isn’t necessarily a weakness.

By reinvesting in its businesses and pursuing attractive growth opportunities, Wesfarmers has the potential to grow earnings and, over time, increase shareholder distributions.

Foolish takeaway

Building an ASX dividend portfolio for life isn’t about finding the biggest yield.

I’d rather combine defensive companies, essential infrastructure, property and dividend growers to create multiple income streams.

The objective isn’t simply to collect big dividends today. It’s to own quality ASX shares that can keep paying — and ideally increasing — those dividends for many years to come.

The post Looking for income for life? These are the ASX shares I’d consider appeared first on The Motley Fool Australia.

More reading

• These are the 10 richest people in the world in September
• How to build a winning ASX share portfolio and create wealth
• ASX 200 bank shares led a financial sector rebound last week
• If I invest $15,000 in CBA shares, how much passive income will I receive in 2027?
• Is Coles still one of the best defensive ASX shares to own?

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 Transurban Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group and Transurban 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.

There is wealthy, and then there is seriously wealthy.

At the very top end, fortunes can rise or fall by tens of billions of dollars in the space of a month as share prices and company valuations move around.

So, who sits at the top of the pile right now?

According to Forbes, these are the 10 richest people in the world as of 1 September 2026.

1. Elon Musk – US$892 billion

Elon Musk remains comfortably on top with an estimated fortune of US$892 billion.

His wealth is largely tied to SpaceX (NASDAQ: SPCX) and Tesla (NASDAQ: TSLA). Forbes estimates that his fortune jumped by US$202 billion during August as both companies increased in value. To put this wealth into context, Australia’s largest bank, Commonwealth Bank of Australia (ASX: CBA), has a market capitalisation of around A$270 billion.

2. Larry Page – US$277 billion

Google co-founder Larry Page is second with US$277 billion.

Much of his wealth comes from his holding in Google parent Alphabet Inc (NASDAQ: GOOGL), where he remains a board member and controlling shareholder.

3. Jeff Bezos – US$268 billion

Amazon.com (NASDAQ: AMZN) founder Jeff Bezos sits in third place with US$268 billion.

Bezos remains Amazon’s executive chairman and owns around 8% of the ecommerce and cloud computing giant.

4. Sergey Brin – US$256 billion

Fellow Google co-founder Sergey Brin is worth an estimated US$256 billion.

Like Page, his fortune is closely linked to Alphabet. Forbes notes that Brin has also become more involved with the company’s artificial intelligence efforts.

5. Michael Dell – US$241 billion

Michael Dell has built a US$241 billion fortune.

He founded Dell Technologies (NYSE: DELL) as a teenager and remains its chairman and CEO.

6. Mark Zuckerberg – US$197 billion

Meta Platforms (NASDAQ: META) CEO Mark Zuckerberg is sixth with US$197 billion.

He still owns approximately 13% of the company behind Facebook, Instagram, and WhatsApp.

7. Larry Ellison – US$193 billion

Oracle (NYSE: ORCL) co-founder Larry Ellison is worth US$193 billion according to Forbes.

His fortune increased by US$25 billion during August, helping him move back up the rankings.

8. Jensen Huang – US$191 billion

Nvidia (NASDAQ: NVDA) co-founder and CEO Jensen Huang has an estimated US$191 billion fortune.

His rise has been driven by Nvidia’s extraordinary growth as its chips have become central to the artificial intelligence boom.

9. Steve Ballmer – US$155 billion

Former Microsoft (NASDAQ: MSFT) CEO Steve Ballmer is back in the top 10 with US$155 billion.

Forbes notes that Ballmer has retained a significant Microsoft shareholding since leaving the company.

10. Amancio Ortega – US$148 billion

Finally, Zara co-founder Amancio Ortega has an estimated fortune of US$148 billion.

He owns around 60% of Zara parent Inditex (BME: ITX), with his wealth also reportedly spread across a substantial global property portfolio.

The post These are the 10 richest people in the world in September appeared first on The Motley Fool Australia.

More reading

• Looking for income for life? These are the ASX shares I’d consider
• ASX 200 bank shares led a financial sector rebound last week
• If I invest $15,000 in CBA shares, how much passive income will I receive in 2027?
• What’s driving the ASX 200 higher today?
• ASX shares investors are getting younger and trading more often: CBA report

Motley Fool contributor James Mickleboro 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 Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, Oracle, and Tesla. The Motley Fool Australia has recommended Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building wealth on the ASX is not about finding one perfect share.

It is about putting together a portfolio that can keep growing even when individual companies disappoint, markets fall, or the economy changes.

That sounds simple enough, but there is a big difference between owning a collection of shares and owning a portfolio with a clear purpose.

Here is how I would approach it.

Build around your best long-term ideas

I would start with the companies I would be most comfortable owning for the next five to ten years.

These should be businesses with strong market positions, healthy balance sheets, and opportunities to keep growing earnings.

Examples could include companies such as Goodman Group (ASX: GMG), ResMed Inc (ASX: RMD), TechnologyOne Ltd (ASX: TNE), REA Group Ltd (ASX: REA), and Wesfarmers Ltd (ASX: WES).

They operate in different industries, but each has qualities that could allow it to become more valuable over time.

This is where a large part of the ASX share portfolio’s wealth creation can come from.

Give growth shares room to compound

A winning portfolio should probably have some exposure to faster-growing businesses as well.

Technology companies such as Xero Ltd (ASX: XRO), Life360 Inc (ASX: 360), and HUB24 Ltd (ASX: HUB) operate in markets where there is still considerable room to expand.

These shares can be more volatile, and valuations can move around quickly.

But if earnings grow strongly for many years, the eventual value of the business can look very different from where it started.

The important thing is giving successful investments enough time.

Selling a great company simply because its share price has already risen can sometimes cut short the most valuable part of the compounding process.

Do not let one idea control the portfolio

Conviction is useful, but concentration can become dangerous.

Even excellent businesses can run into unexpected problems.

I would therefore spread investments across different industries and earnings drivers rather than allowing one company or sector to dominate the portfolio.

Australian investors should also think beyond the local market.

ASX exchange traded funds (ETFs) such as the Vanguard MSCI Index International Shares ETF (ASX: VGS) or iShares S&P 500 ETF (ASX: IVV) can provide global exposure alongside individual Australian shares.

Pay attention to price

Quality alone is not enough. A fantastic company bought at an extreme valuation can still deliver disappointing returns.

I would rather keep a company on my watchlist than convince myself I have to buy it immediately.

There will usually be another opportunity. Results disappoint, markets correct, sentiment changes, and shares fall out of favour. Having cash ready when a quality business becomes more reasonably priced can be valuable.

Keep adding to the portfolio

The portfolio itself is only one part of the equation. Regular contributions can make an enormous difference over a long period.

Adding money each month or quarter means investors continue buying through strong markets, weak markets, recessions, recoveries, and everything in between.

Over decades, the combination of new contributions, rising company earnings, reinvested dividends, and compounding can become extremely powerful.

For example, $1,000 a month into an ASX share portfolio would turn into approximately $725,000 in 20 years with an average 10% annual return.

A winning ASX share portfolio does not need every decision to be right. It needs enough good businesses, sensible diversification, reasonable purchase prices, and plenty of time to compound.

The post How to build a winning ASX share portfolio and create wealth appeared first on The Motley Fool Australia.

More reading

• ASX 200 bank shares led a financial sector rebound last week
• These are the most popular ASX ETFs. Which has performed best over the last year?
• Down 55%: Should I buy Life360 shares in September?
• Top 3 ASX shares I’d buy with $5000 right now
• Buy, hold, sell: Wesfarmers, Endeavour, Macquarie shares

Motley Fool contributor James Mickleboro has positions in Goodman Group, Life360, REA Group, ResMed, Technology One, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Hub24, Life360, ResMed, Wesfarmers, Xero, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Life360, ResMed, and Xero. The Motley Fool Australia has recommended Goodman Group, Hub24, Vanguard Msci Index International Shares ETF, 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.