As FY27 gets underway, dividend shares are back in focus following earnings results adjustments. 

During earnings season, investors get a clearer picture of how companies are performing, what management expects for the year ahead, and whether current dividend payouts look sustainable. 

For income-focused investors, this can create an opportunity to reassess dividend shares that combine attractive yields with the potential for reliable earnings and cash flow growth.

Why consistency is just as important as yield 

It’s understandable for income investors to hunt for high yields, however yield alone doesn’t tell the whole story. 

A reliable income stream can be just as valuable, particularly for investors who depend on their portfolio to provide consistent cash flow. 

A slightly lower yield backed by strong, sustainable fundamentals may ultimately prove more attractive than a higher yield that comes with a greater risk of dividend cuts or significant capital losses. 

For income investors, the key is not simply how much an investment pays today, but how dependable that income is likely to be over the long term.

With that in mind, here are three great ASX dividend shares to target right now. 

Wesfarmers Ltd (ASX: WES)

Wesfarmers is the company behind a number of well-known Australian retail names, including Bunnings, Kmart, Officeworks, Priceline, Target, and others.

It has long been a go-to option for income investors for its reliable dividend. 

This is set to continue, as it is expected to offer a grossed-up dividend yield of 4.3%, including franking credits.

This is expected to reach nearly 5% by FY29, offering a long-term option for investors. 

Bank of Queensland Ltd (ASX: BOQ)

Bank of Queensland is one of the largest competitors in the banking sector outside the big four. 

Over the past year, it has paid shareholders a total of 55 cents per share in fully franked dividends, including the special capital return dividend paid on 24 August.

Based on the current share price, Bank of Queensland shares are currently offering a fully franked dividend yield of over 8%. 

This current yield places it at the top end out of every ASX 200 stock. 

ANZ Group Holdings Ltd (ASX: ANZ)

Turning our attention to big four bank shares, which have long provided consistent yields, ANZ currently offers the best yield, along with Westpac Banking Corp (ASX: WBC). 

Both currently offer a yield of roughly 4.5%, however ANZ appears to have the most capital gain upside. 

The bank has a long history of paying regular dividends, with franking credits potentially adding to the value for eligible Australian investors. 

Its established earnings base and strong position in the Australian banking sector also provide a solid foundation for ongoing shareholder returns.

The post 3 top ASX dividend shares to target in September  appeared first on The Motley Fool Australia.

More reading

• Here’s the dividend forecast out to 2029 for Wesfarmers shares
• How much must I invest in ANZ shares to earn $1,000 in passive income in 2027?
• The 2 top yielding ASX 200 bank stocks revealed (Hint: Not CBA shares)
• Are ASX bank shares a buy in September?
• How to build an ASX portfolio you do not need to check every day

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 Wesfarmers. 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.

A new report from Ord Minnett has reiterated a strong outlook for Medibank Private Ltd (ASX: MPL). The report came following its recent financial results. 

Australia’s largest insurance provider released full-year results on August 20. 

Key results included underlying net profit after tax rising 2.9% to $636.8 million. Additionally, MediBank declared a full-year dividend increase of 6.7% to 19.2 cents per share, fully franked.

The Motley Fool’s coverage of the results can be found here.

What was Ord Minnett’s view on the results?

In yesterday’s report, Ord Minnett said FY26 revenue and earnings from Medibank were in line with expectations.

However, the lack of policyholder growth in the second-half (2H26) was slightly disappointing. 

Revenues increased 6% to $9.1 billion. Underlying net profit after tax (NPAT) of $637 million was up 3% on FY25. 

It also noted the company declared a fully franked final dividend of 10.9 cents per share (cps), taking the total FY26 dividend to 19.2 cps, an increase of 7% from FY25.

Focus on policyholders

Ord Minnett also noted the net number of policyholders grew by 1.1% in the year, with Medibank policyholders up 0.6% and ahm up 2.4%, while non-resident policy units fell 2.3%. 

In the second-half (2H26), policyholder growth slowed to 0.2%, with the slowdown blamed on cost-of-living pressures, increased switching by customers, and rising competition in the June quarter as some competitors adopted aggressive growth tactics. 

While policyholder growth was weak in the 2H26, it is not too dissimilar to growth rates in previous corresponding half-years and is typical of seasonal churn in the industry. Further, the policyholder growth delivered in FY26, should not trigger material downgrades, given consensus estimates ahead of the result had a similar level of policyholder growth, of 1.3% for FY27.

Healthy upside intact for MediBank

Medibank Private shares have dipped over the last few weeks, closing trading yesterday at $4.84. 

In yesterday’s report, Ord Minnett retained its buy recommendation and $5.10 price target on MediBank Private shares thanks largely to its defensive profile. 

We reduce our EPS by 1.5–2.0% per annum in FY27–29 driven by lower policyholder growth and higher cyber litigation costs, partially offset by higher investment income. 

Our target price is unchanged at $5.10 as the earnings reductions are offset by an increase to the valuation multiple, following a rise in the price-earnings multiple of the market. 

We keep the Buy recommendation viewing MPL as a relatively defensive option for the next 12 months, with circa 5-10% annual EPS growth on our forecasts.

From yesterday’s closing price, this target indicates just over 5% upside. 

The post Why now is the time to buy MediBank Private shares: Expert appeared first on The Motley Fool Australia.

More reading

• 2 ASX blue-chip shares offering big dividend yields
• 37 ASX shares going ex-dividend next week
• 3 great dividend stocks with 6% yields to boost passive income in FY27
• Here are the top 10 ASX 200 shares today
• Why I’d buy Medibank shares for the dividend yield

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 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.

Superannuation is a fantastic tool to help Australians build wealth to support themselves in retirement.

Your super provides the benefit of concessional tax rates, and compound growth.

It can also act as a tool to generate a passive income once you transition to the pension phase.

But how much superannuation do you need to accumulate to target your ideal passive income amount?

Let’s investigate, using a $90,000 annual passive income as an example.

How much do I need in my superannuation to get $90,000 per year in passive income?

To calculate the balance you need, you need to divide your ideal annual passive income by the dividend yield of your portfolio.

For example, $90,000 ÷ 3% = $3 million (that’s the amount you’ll need in your superannuation to earn the $90,000 per year).

A $3 million superannuation portfolio isn’t achievable for many Australians. But the good news is that as your dividend yield increases, the superannuation balance needed to earn the same passive income decreases. 

For example, a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of passive income.

What balance do I need if my portfolio yields 4%, 5% or 6%?

We already know what portfolio size you’d need to earn $90,000 per year off a 3% yielding account.

But if your overall portfolio has a slightly higher dividend yield of around 4%, you’ll need a balance of around $2.25 million to earn the same $90,000 per year in passive income.

If the yield of your portfolio is higher still, at around 5% for example, your balance would need to be closer to $1.8 million to earn the same dividend income.

For a 6% yielding portfolio, you’d need a superannuation balance closer to $1.5 million to earn the same amount again.

And so on…

You’d still earn $90,000 per year in passive income from each of these superannuation balance sizes.

Diversification is key

It can be tempting to go for the highest-yielding portfolio so you don’t need as much in your superannuation.

But that would be a risky move. The higher the yield, generally the more risk associated with that stock.

Also note, if you want a portfolio yielding around 5% or even higher, it doesn’t mean that every investment in that superannuation portfolio has to yield that level. It can be a combination that yields 5% overall.

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

I’d look at splitting my superannuation portfolio into investments across several different yielding assets, preferably across different sectors.

This diversification strategy means that if one asset drops in value, its performance can be offset by other ASX shares, leading to a more consistent overall result.

I’m aiming for a 5% yielding superannuation portfolio, what ASX shares can I invest in?

To earn a $90,000 passive income off a 5% yielding portfolio, you’d need around $1.8 million saved.

There are plenty of good-quality ASX shares around this level. But here are my top picks.

Defensive shares like Telstra Group Ltd (ASX: TLS), Transurban Group (ASX: TCL), AGL Energy Ltd (ASX: AGL) or APA Group (ASX: APA) are a solid choice for income-seeking investors. These all yield around the 5% level, at the time of writing.

Non-discretionary ASX consumer staples stocks are also naturally defensive, but many of them yield slightly less. 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 around 3%, at the time of writing.

Elsewhere, ASX shares like Amcor Ltd (ASX: AMC), Ebos Group Ltd (ASX: EBO) and Harvey Norman Holdings Ltd (ASX: HVN) are popular options for income-seeking investors. 

The post How much superannuation do I need to earn $90,000 per year in passive income? appeared first on The Motley Fool Australia.

More reading

• Up 12%: Is there still value in Coles shares?
• Why Liontown, Northern Star and Telstra shares are turning heads on Monday
• 3 ASX dividend shares raising dividends like clockwork
• How to build an ASX portfolio you do not need to check every day
• Why I think these boring ASX shares could build serious wealth

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 Amcor Plc, Apa Group, Harvey Norman, 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.