Your superannuation is a great way to collect a pot of money to fund your retirement. 

But did you know it can also become a regular source of passive income once you stop working? It can help cover day-to-day expenses and enable you to enjoy the lifestyle you’ve worked hard for.

The idea is pretty simple. Instead of sitting as idle cash, your money stays invested and generates dividends and capital growth. You can then use your super to pay a regular income through retirement.

The ultimate goal for many Australians is a $1 million superannuation balance. But exactly how much passive income could a portfolio this size actually generate each month?

Let’s investigate.

What passive income can I earn from my $1 million superannuation balance?

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

But the problem is, the answer varies widely depending on what dividend yield you pick.

For example, $1 million x 3% = $30,000 per year in dividend payments.

But if your portfolio has a slightly higher dividend yield of around 4%, your passive income will be higher. That’s because $1 million x 4% = $40,000 per year in dividend payments. 

If your superannuation portfolio yields closer to 5%, you could earn $50,000 every year in dividend payments off the same superannuation balance ($1 million x 5% = $50,000).

At a 6% yield, you could earn an annual passive income of around $60,000, and at 7%, it could be even higher, at around $70,000.

And so on… 

As your dividend yield increases, the passive income you can earn from your $1 million superannuation balance also increases.

Note that these figures are based on cash dividends before tax or franking credits. 

Also note that most ASX shares pay dividends to shareholders every six months, which means you’ll receive the passive income in chunks rather than on a monthly or annual basis.

Can’t I just invest in the highest-yielding ASX shares to earn the highest passive income?

Technically yes, but it doesn’t make good investment sense.

When it comes to investing your superannuation into ASX dividend shares, generally the higher the yield, the higher the risk associated with that stock.

Diversification is key

Rather than trying to get rich quick, it’s better to focus on a diverse range of high-quality businesses with strong balance sheets and stable earnings. Ideally, you want to focus on stocks that are most likely to stand the test of time.

Also remember, if you want a 5% yielding portfolio, for example, that doesn’t mean that every investment has to yield 5%. It can be a variation which equates to a combined overall 5% yield.

And remember, you don’t need to invest the whole sum in one go. Start with regular monthly investments and let compounding do some of the hard work for you.

Ok, give me some options of ASX shares I can invest my superannuation in

There are a huge range of ASX dividend shares available at a wide range of yields, but here are some of my top picks right now.

Defensive shares like Telstra Group Ltd (ASX: TLS), Transurban Group (ASX: TCL), or APA Group (ASX: APA) are a solid choice for income-seeking investors. These all yield between 4% and 5.5%, at the time of writing.

Non-discretionary ASX consumer staples stocks are also naturally defensive. Supermarket giants like Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) can generate stable cash flow across all phases of the economic cycle. This translates to consistent dividends for shareholders. These shares pay a slightly lower dividend, between 2.5% and 3%, at the time of writing.

Elsewhere, ASX bank stocks remain a popular choice. The four major banks dominate the S&P/ASX 200 Index (ASX: XJO) by market capitalisation, and their defensive qualities mean their shares often bounce back during economic recovery. Commonwealth Bank of Australia (ASX: CBA) yields around 3%, while National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and ANZ Group Holdings Ltd (ASX: ANZ) all yield a little higher, at around 4.5%.

The post How much passive income can I earn off a $1 million superannuation balance? appeared first on The Motley Fool Australia.

More reading

• How much could $10,000 in Woolworths shares be worth in a year?
• 37 ASX shares going ex-dividend next week
• How much is needed in superannuation for $2,500 in weekly passive income?
• Do leading brokers rate Woolworths shares as a buy following its results?
• Buy, hold, sell: Coles, Paladin Energy, and Woodside shares

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

As ASX blue-chip stocks release highly anticipated earnings results, brokers and investors are adjusting their outlooks accordingly. 

Earlier this week, Woolworths Group Ltd (ASX: WOW) released full-year results.

Key results included: 

• Group sales rose 3.6% to $71.54 billion.
• EBITDA before significant items lifted 6.7% to $6.09 billion.
• EBIT before significant items increased 12.7% to $3.11 billion.
• NPAT before significant items jumped 15.4% to $1.60 billion.
• Final fully franked dividend of 52 cents per share, up 15.6% from last year.

Speaking on the results, Woolworths Group CEO Amanda Bardwell said:

The action we have taken in F26 to deliver more value for customers, greater convenience and better execution has improved customer advocacy and sales momentum in our key Australian Food business, particularly in H2. Sales momentum together with strong productivity and cost discipline has delivered solid EBIT growth with an increased contribution from all trading segments.

This prompted a positive reaction from the market, as Woolworths shares have climbed since the announcement. 

However for prospective investors, it is worth noting that Woolworths shares have already climbed over 34% year to date, making it difficult to project big upside. 

What are experts saying?

Yesterday, Woolworths shares closed at $39.55 per share. 

The team at Bell Potter was impressed by the recent results and raised its price target to $42.35. 

This indicates 7% upside. 

Elsewhere, Morgans has a price target of $43.50, indicating a 10% upside. 

However, let’s not forget the recently updated forward dividend yield of 2.38%. 

Taking all of this into consideration, if Woolworths shares were to reach the target set by Bell Potter in the next 12 months, the shares would be worth about $10,707.98, while the estimated dividends would add approximately $238, giving a total value of around $10,945.98, or a 9.46% total return.

If Woolworths shares reached the target set by Morgans, the investment would be worth approximately $10,998.74 plus the estimated $238 dividend, for a total of about $11,236.74, representing a 12.37% total return. 

These calculations assume the 2.38% forward yield remains unchanged and dividends are taken as cash rather than reinvested; actual returns will vary with the share price and dividends paid

Why there might be more upside somewhere else 

While these projections would be a healthy return, there is another ASX consumer staples stock worth considering over the next 12 months. 

Treasury Wine Estates Ltd (ASX: TWE) are trading at around $5.55 per share, but could be set to rise significantly over the next 12 months. 

A recent target from Morgans suggests this could hit $7.30 in the next year. 

From current levels, this indicates over 31% upside. 

This means a $10,000 investment could grow to approximately $13,153 if it met this target. 

The post How much could $10,000 in Woolworths shares be worth in a year? appeared first on The Motley Fool Australia.

More reading

• Do leading brokers rate Woolworths shares as a buy following its results?
• 3 ASX 200 dividend shares that just hiked their payouts
• South32, Woolworths, BHP shares reach 52-week high: Buy, sell or hold?
• Everything you need to know about the Woolworths dividend
• Why Woolworths, Domino’s and DroneShield shares are turning heads on Wednesday

Motley Fool contributor Aaron Bell 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 Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL) shares have staged an extraordinary comeback, jumping 49% in just one month. But after a bruising year, investors face a crucial question: has the turnaround finally arrived, or has the rebound run too far?

Following last week’s FY26 result, brokers have reassessed their forecasts, revealing a striking divide over where CSL shares could head next.

Where do brokers see CSL shares going?

CSL has spent the past few years battling higher costs, operational problems and fading investor confidence. And not every broker believes the recovery is firmly established.

TradingView data shows 10 of 18 analysts rate CSL a hold, while eight have a buy or strong-buy rating. The average 12-month price target is $164.69, below the current share price of around $173.88.

However, the forecasts vary dramatically. The most bullish target sits at $205.22, implying another 18% upside, while the lowest is just $132.25, pointing to more than 23% downside.

Macquarie is the most bearish among the major brokers, with a neutral rating and target of just over $133. UBS is considerably more optimistic at $181, while Morgan Stanley has a $172 target.

Bell Potter recently retained its hold rating on CSL shares but increased its price target from $120 to $150.

Why has the biotech stock surged?

The catalyst was CSL’s FY26 result, released last week. On the surface, it looked ugly: the company reported a US$2.6 billion net loss after tax.

But there was much more to the number. The loss included US$7.1 billion of pre-tax impairments and US$799 million of restructuring costs, much of which was non-cash. Most impairments related to CSL Vifor intangibles and under-utilised property, plant and equipment.

Investors had already received a warning in May, when CSL flagged around US$5 billion of impairments and cut its FY26 guidance. Excluding these exceptional items, underlying NPATA was US$3.1 billion, down just 2%. Revenue fell 1% to US$15.8 billion but still beat analyst expectations.

For investors, the result therefore represented something potentially more valuable than headline profit: a reset year, cleaner balance sheet and better-than-feared outlook.

CSL Behring remains the standout. Its plasma division generated US$11.4 billion of revenue, with immunoglobulin revenue steady at US$6.2 billion.

CSL Vifor grew revenue 3% to US$2.4 billion, while Seqirus remained under pressure, with revenue down 8% to US$2 billion.

Could the forecast send CSL shares higher?

The bull case centres on FY27. CSL expects underlying NPAT to grow approximately 5%, ahead of consensus expectations of around 2%.

Behring is forecast to deliver mid-single-digit growth, with immunoglobulins growing at a mid-to-high single-digit rate.

The major challenge remains Vifor, where revenue is expected to plunge about 25% as iron generics enter the market.

For CSL shares, the recovery story is clearly gaining momentum. But with the stock already up sharply, investors must decide whether improving fundamentals can justify the renewed optimism.

The post CSL shares have surged 49%: Are brokers finally turning bullish? appeared first on The Motley Fool Australia.

More reading

• Should I buy CSL shares before the end of August?
• Buy, hold, sell: CSL, BHP, Westpac shares
• Could CSL shares really hit $200? Experts reveal their 12-month targets
• ASX 200 healthcare shares soar 9% amid notable FY26 reports from CSL, Pro Medicus
• 3 ASX 200 stocks, including CSL, leaping 15% to 23% in this week’s sliding market

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 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.