Tag: Stock pick

The WAM Leaders Ltd (ASX: WLE) share price is in focus after the company posted a 14.0% increase in its investment portfolio for FY2026, beating the S&P/ASX 200 Accumulation Index (ASX: XJO) by 7.9%, and announced a higher fully franked full-year dividend of 9.6 cents per share.

What did WAM Leaders report?

• FY2026 investment portfolio return: up 14.0%, outperforming benchmark by 7.9%
• Total shareholder return: 21.0% (24.7% including franking credits)
• Operating profit after tax: up 153.5% to $161.8 million (FY2025: $63.8 million)
• Operating profit before tax: up 176.5% to $218.3 million
• Fully franked full year dividend: increased to 9.6 cents per share (final dividend: 4.8 cps)
• Fully franked dividend yield: 7.2% (grossed-up 10.3%)

What else do investors need to know?

WAM Leaders reduced its share price discount to net tangible assets (NTA) from 7.8% to a 0.2% premium over the year, supporting shareholder returns. Notably, the company has paid out a total of 96.5 cents per share in fully franked dividends since listing in 2016, including franking credits.

The board has launched a Share Purchase Plan (SPP), allowing eligible shareholders to buy up to $30,000 of shares without brokerage, at a discount. A recent placement for professional and sophisticated investors raised $225 million, aiming to capitalise on attractive market opportunities.

What did WAM Leaders management say?

Lead Portfolio Manager Matthew Haupt said:

The 2026 financial year was characterised by changing interest rate expectations, geopolitical tensions, global trade disruption and evolving views on the sustainability of artificial intelligence-led growth. These conditions created periods of volatility and meaningful shifts in market leadership, generating opportunities for active investors

The investment team and I adjusted portfolio positioning as conditions evolved, including maintaining exposure to areas of the market where we saw attractive risk-adjusted opportunities, while remaining disciplined on valuation. This approach enabled the investment portfolio to outperform the S&P/ASX 200 Accumulation Index during the year.

Looking ahead, we remain focused on high-quality companies trading at attractive valuations. Periods of market volatility can create opportunities for active managers, and the investment portfolio is positioned to take advantage of these opportunities as they emerge.

What’s next for WAM Leaders?

Management says WAM Leaders is sticking with its strategy of targeting high-quality companies offering value, especially as volatility creates new opportunities. The $225 million capital raised through the SPP and placement increases flexibility for future investments with an active approach.

Shareholders can expect the board’s dividend-focused approach to remain, with the company aiming to deliver consistent income and capital growth through disciplined stock selection and sector positioning.

View Original Announcement

The post WAM Leaders lifts dividend as portfolio outperforms in FY26 appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has positions in Wam Leaders. 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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.

Looking for a promising S&P/ASX 200 Index (ASX: XJO) dividend to bring in some handy extra passive income and potential capital gains?

Then you may want to have a look into REA Group Ltd (ASX: REA).

That’s according to Lazarus Capital Partners’ Tom Fairchild, who recently issued a buy recommendation on the online property listings company (courtesy of The Bull).

Less than two months ago, on 23 June, REA shares ended the day at a one year closing low of $131.52. In morning trade today, shares in the ASX 200 dividend stock are changing hands for $176.87 apiece.

That sees the REA share price up 34.5% since those June lows. While the REA share price remains down 32.4% since this time last year, Fairchild believes the past two months’ rebound has further to run.

Here’s why.

Should I buy this ASX 200 dividend stock today?

“REA is a multi-national digital advertising group specialising in property,” Fairchild said.

Citing the first reason he’s bullish on the ASX 200 dividend stock here noted:

Revenue from core operations of $1.793 billion in full year 2026 was up 7% on the prior corresponding period. Net profit after tax from core operations of $650 million was up 15%. Earnings per share of $4.93 was up 15%

Then there’s the promising passive income trend.

“The final fully franked dividend of $1.73 was up 25%,” Fairchild said.

REA declared that final dividend on 6 August, following the release of its FY 2026 results.

If you want to score the passive income payout, you’ll need to own REA shares at market close on 26 August. REA trades ex-dividend on 27 August. You can then expect to see that dividend hit your bank account on 11 September.

If we add in the interim full franked REA dividend of $1.24 per share, paid on 18 March, the full year payout equates to $2.97 a share, up 20% from the FY 2025 dividend payments. At the current REA share price, that sees this ASX 200 dividend stock trading at a fully franked yield (partly trailing, party pending) of 1.7%. Taking those franking credits into account, that works out to a grossed-up yield of 2.4%.

Which bring us to the third reason Fairchild issued a buy recommendation on REA shares.

He concluded, “Investors responded positively after the full year result was released on August 6. But we believe the company still has ample room to improve its performance from here.”

The post 3 reasons to buy this rebounding ASX 200 dividend stock today appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.

The SKS Technologies Group Ltd (ASX: SKS) share price is in focus today after the company reported a record-breaking FY26, with sales revenue jumping 33.0% to $347.93 million and after-tax profit almost doubling to $27.11 million.

What did SKS Technologies report?

• Sales revenue: up 33.0% to $347.93 million (FY25: $261.66 million)
• Profit before tax: up 89.3% to $39.35 million (FY25: $20.79 million)
• Net profit after tax: up 93.2% to $27.11 million
• EBITDA: up 80.8% to $42.43 million
• Earnings per share: up 91.2% to 23.45 cents
• Full year dividend: 10.0 cents per share (up 66.7%)

What else do investors need to know?

SKS made significant strategic moves over FY26, including the acquisition and integration of Delta Elcom, boosting its presence in New South Wales and accelerating its push into the data centre market. A highlight for the year was securing a $210 million contract for a hyperscale data centre in Melbourne, which set a record for the group and showcased its growing capacity.

The company’s work on hand surged to $312 million at 30 June 2026, up from $200 million a year prior, providing a strong platform for future revenue. Importantly, SKS maintained its excellent safety record with zero lost time injuries, even as its workforce and hours worked both climbed.

What did SKS Technologies management say?

Chief Executive Officer Matthew Jinks said:

For the last several years, we have achieved quantum leaps in our financial, operational and people metrics that defy the norm and despite the challenges of the effect of compounding, take the business to the next level year on year.

What’s next for SKS Technologies?

SKS Technologies is targeting further growth, with the board forecasting FY27 sales revenue in the vicinity of $500 million and profit before tax of $60 million. Its expanded bank facilities and cash position provide flexibility and backing for continued investment and expansion, particularly in data centre infrastructure.

Ongoing improvements in technology, operational systems, and training are in place to ensure sustained productivity and the ability to meet strong demand in targeted markets, including major government and private sector projects.

SKS Technologies Group share price snapshot

Over the past 12 months, SKS Technologies shares have risen 260%, outperforming the All Ordinaries Index (ASX: XAO), which is flat over the same period.

View Original Announcement

The post SKS Technologies reports record FY26 earnings appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sks Technologies Group. 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 summary of the company announcement. 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.

The Pro Medicus Ltd (ASX: PME) share price is in focus today as the company announced full-year revenue of $261.7 million, up 22.9%, with underlying NPAT rising 24.1% to $144.7 million. The company remains debt-free and has lifted its fully-franked total dividend by 25.5% to 69 cents per share.

What did Pro Medicus report?

• Revenue: $261.7 million, up 22.9% year-on-year
• Underlying EBIT: $196.1 million, up 24.4%
• Reported NPAT: $265.3 million, up 130.3%
• Underlying NPAT: $144.7 million, up 24.1%
• Cash and financial assets: $252.3 million, up 19.7%
• Final dividend: 37 cents per share, total full-year dividend 69 cents, up 25.5%

What else do investors need to know?

Pro Medicus signed 10 new contracts during the year, totalling at least $407 million in value, including a major 10-year deal with UC Health Colorado. The company also renewed six key contracts, worth $141 million, all on five-year terms with increased transaction fees.

On a constant currency basis, revenue, EBIT, and NPAT each saw gains above 28%. The company’s pipeline remains strong, supported by new product launches in digital pathology and AI-optimised reporting as well as a nearly complete Trinity implementation.

What did Pro Medicus Limited management say?

Dr Sam Hupert, Chief Executive Officer, said:

We were aiming for 30% increases in EBIT and NPAT, and we exceeded both on a constant currency basis. Importantly, we have proven that with one platform and one business model we can address virtually every opportunity in diagnostic imaging, providing us with the largest total addressable market. Progress made in the cardiology market represents another important string to our bow. We see this trend continuing.

What’s next for Pro Medicus?

Looking ahead, Pro Medicus says it expects to benefit from its newly signed contracts and recent implementations, particularly as the Trinity rollout is now largely complete. Management highlights a strong pipeline with a growing number of inbound requests from major US healthcare institutions.

The company is aiming to further expand its presence in both diagnostic imaging and cardiology, leveraging its one-platform approach and ongoing product innovation.

Pro Medicus share price snapshot

Over the past year, the Pro Medicus share price has underperformed the S&P/ASX 200 index (ASX: PME) with a decline of around 45%.

View Original Announcement

The post Pro Medicus FY26: Strong earnings growth and higher dividend appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. 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 summary of the company announcement. 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.

The Sims Ltd (ASX: SGM) share price is in focus after the company posted a 6.9% rise in full-year group revenue to $8,007.5 million, and underlying EBIT up 167.6% to $468.0 million.

What did Sims Ltd report?

• Group sales revenue increased 6.9% to $8,007.5 million
• Underlying EBITDA jumped 69.3% to $727.8 million
• Underlying EBIT surged 167.6% to $468.0 million
• Underlying NPAT rose to $289.1 million (up from $83.1 million)
• Return on Invested Capital (ROIC) improved by 7.2 percentage points to 11.7%
• Final fully franked dividend of 20.0 cents per share, bringing the full-year total to 34.0 cents

What else do investors need to know?

Sims’ Sims Lifecycle Services (SLS) division delivered standout growth, with sales revenue up 77.4% to $757 million, and underlying EBIT climbing 429.8% to $172.7 million, driven by strong demand for recovered memory components in the AI infrastructure sector. Repurposed units almost doubled to 16.8 million, reflecting deepening relationships with hyperscale data centre customers.

The North American and SA Recycling segments benefited from favourable non-ferrous prices and domestic US steel demand, offsetting ongoing challenges in the Australian and New Zealand metals business due to soft steel markets and limited tariff protection.

What’s next for Sims Ltd?

Looking ahead, Sims expects supportive market conditions for non-ferrous metals and AI-related asset recovery to continue into FY27. While the timing of data centre decommissioning remains variable, the company expects SLS to contribute first-half underlying EBIT between $75 million and $90 million.

The group also sees ongoing US tariffs and new electric arc furnace capacity supporting demand for ferrous scrap in North America. In Australia and New Zealand, domestic demand could strengthen over the medium term as new steel production capacity comes online. Sims remains focused on recovery optimisation, operational excellence, and disciplined growth through targeted investments and bolt-on acquisitions.

Sims share price snapshot

The Sims share price has been a very strong performer over the past 12 months, outperforming the S&P/ASX 200 index (ASX: XJO) with a gain of around 50%.

View Original Announcement

The post Sims delivers strong FY26 earnings growth as AI demand fuels SLS division appeared first on The Motley Fool Australia.

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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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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.

The Lycopodium Ltd (ASX: LYL) share price is in focus after the company secured a major EPCM contract worth roughly $37 million for the San Cristóbal Silver Oxide Project in Bolivia. The contract will see Lycopodium design and manage construction of a new 15,000 tpd silver oxide processing plant adjacent to the existing operation.

What did Lycopodium report?

• Awarded a $37 million Engineering, Procurement and Construction Management (EPCM) contract for the San Cristóbal project in Bolivia
• New plant to treat 15,000 tonnes per day of oxidised material, producing silver doré
• Project is a brownfields expansion, complementing the existing 52,000 tpd sulphides processing plant
• Works to commence immediately, with completion targeted for 2030
• Contract is subject to a final investment decision by the client

What else do investors need to know?

The San Cristóbal Mine is one of the world’s largest open-pit silver, zinc and lead operations, and this new contract will expand Lycopodium’s international footprint. The project presents unique engineering challenges, requiring design and construction at over 4,000 metres above sea level.

The delivery will be a collaborative effort, drawing expertise from Lycopodium’s offices in Toronto, Lima, and Argentina. The company highlighted that once complete, both sulphide and oxide plants will run side-by-side, increasing production capacity at the site.

What did Lycopodium management say?

Lycopodium Managing Director and CEO Peter De Leo said:

We are extremely pleased to be given this opportunity to work with Minera San Cristóbal SA in the development of the San Cristóbal Mine. This strategic project positions the mine to become a significant silver producer on a global scale and includes challenges of design and construction at a high altitude, at 4,000 metres above sea level. Execution of the project will include significant collaboration across our Americas team, with input from our Toronto, SAXUM (Argentina) and Lima offices.

What’s next for Lycopodium?

Lycopodium will begin work on the San Cristóbal Silver Oxide Project immediately, focusing on engineering and planning while awaiting the client’s final investment decision. The company expects strong collaboration across its international teams to deliver the project, with completion forecast for 2030.

This contract strengthens Lycopodium’s global pipeline and underscores its capability to deliver large, complex resource projects. Investors will be watching for updates as work ramps up in the Americas.

Lycopodium share price snapshot

Over the past 12 months, Lycopodium shares have risen 57%, outperforming the All Ordinaries Index (ASX: XAO), which is flat over the same period.

View Original Announcement

The post Lycopodium lands $37 million contract for Bolivian silver project appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Lycopodium. 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 summary of the company announcement. 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.

ASX dividend shares have an income competitor for the first time in years.

The Reserve Bank left the cash rate unchanged at 4.35% at its June meeting, following three increases since the start of the year.

That has pushed term deposit rates to levels Australian savers have not seen for some time.

Commonwealth Bank of Australia (ASX: CBA) is currently advertising a 12-month term deposit special of 5.25% per annum, with a standard 12-month rate of 4.75%.

Both are guaranteed, and deposits are protected up to $250,000 per person per institution.

So the following question is a fair one: Why own bank shares when the bank itself will pay you more for a term deposit?

The case against ASX dividend shares right now

On headline yield alone, cash wins comfortably.

Analysts expect CBA to pay a total dividend of $5.15 per share in FY26, which is equivalent to a forward yield of around 3% at the current share price.

FY27 forecasts of $5.45 per share imply about 3.2%.

A 5.25% term deposit beats both, with none of the volatility.

Term deposits also beat annual inflation, which the RBA recorded at 4.0% for the year to May.

Franking credits change the maths

The comparison is not quite complete, though.

CBA’s dividends are fully franked, which means the company has already paid 30% tax on the profits behind them.

Grossing up a 3% cash yield produces an effective pre-tax yield of roughly 4.3%.

On the FY27 forecast, that rises to about 4.6%.

For an investor in a low- or zero-tax environment, such as a pension-phase superannuation fund, those credits are refundable in full.

However, a term deposit pays the same rate for the whole term and then rolls over to whatever rates exist at the time (reinvestment risk), which is a real risk if the RBA does begin cutting in 2027.

CBA, by contrast, has delivered a rising dividend every year since 2021, meaning your yield on cost can grow over time, which a term deposit cannot do.

CBA’s most recent earnings

So what has been driving these dividend increases? To answer this question, it is worthwhile to look at the results.

CBA delivered cash net profit of $5,445 million in its FY26 half-year result, up 6% on the prior period.

The company lifted its interim dividend 4% to $2.35 per share, fully franked.

In contrast, the March quarter update was steadier. Cash net profit came in at around $2.7 billion, up 4% year on year but down 1% on the first-half quarterly average. Business lending grew 12.5%, household deposits rose 9.1%, and home lending increased 7.1%.

A $316 million loan impairment expense reflected what the bank described as heightened geopolitical and macroeconomic uncertainty.

Full-year results for CBA are due on 12 August.

Foolish takeaway: ASX dividend shares versus cash

If you need a known sum on a known date, the term deposit is the better instrument today.

But ASX dividend shares are not really competing on this year’s yield.

They are competing on the next decade of dividend growth, franking credits and capital appreciation, all of which come with the very real risk of losing money along the way.

The choice investors make should be aligned with their risk appetite.

The post Term deposits at 4.35% vs. ASX dividend shares: which one wins? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven 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.

Not every ASX exchange traded fund (ETF) needs to chase the hottest theme in the market.

Sometimes the better move is to own funds that can make a portfolio stronger, broader, and less dependent on one narrow idea.

With that in mind, here are three ASX ETFs that could be worth considering in FY 2027.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The Vanguard MSCI Index International Shares ETF could be a strong foundation holding.

It gives investors exposure to more than 1,000 stocks across developed markets outside Australia.

That means a portfolio can look beyond the usual local mix of banks, miners, supermarkets, and property groups.

This fund owns international businesses across sectors such as technology, healthcare, industrials, consumer goods, financials, and communications.

The big advantage is that investors do not need to know which country, sector, or company will lead the next decade. They can own a broad slice of the developed world through one ASX trade, which is never a bad thing.

Betashares Australian Quality ETF (ASX: AQLT)

The Betashares Australian Quality ETF takes a more selective approach to the local share market.

Rather than buying Australian shares simply because they are large, this fund focuses on companies with quality characteristics.

That can include stronger profitability, lower debt, and more stable earnings.

This can be an attractive way to invest locally because the Australian share market can be heavily influenced by banks and resources companies. A quality filter gives investors a different way to sort through the ASX.

The fund still provides Australian exposure, but it does so with more discipline than a plain market-cap index.

That could make it interesting for investors who like the idea of owning local shares, but want a portfolio tilted toward stronger businesses. It was recently recommended by analysts at Betashares.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

Finally, the Betashares Global Cash Flow Kings ETF brings a different type of discipline.

It focuses on global companies that generate high levels of free cash flow.

That is important because free cash flow is the money left over after a company has paid the bills needed to keep the business running and growing.

Businesses with strong cash generation often have more choices. They can reinvest, strengthen the balance sheet, buy back shares, pay dividends, or ride out difficult periods without as much pressure.

This fund is not trying to own the loudest growth stories. It is looking for companies with financial strength sitting behind the share price. It was also recently recommended by the team at Betashares.

The post 3 strong ASX ETFs to buy for FY27 appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s been another painful session for investors in WiseTech Global Ltd (ASX: WTC) shares.

The logistics software company’s shares tumbled 7% on Thursday to $31.48. That leaves the stock down almost 73% over the past year and close to $90 below its peak.

After such a dramatic collapse, investors are asking an obvious question: could WiseTech shares really recover from here?

Why the shares have crashed

The sell-off hasn’t been driven by a collapse in demand.

WiseTech’s flagship CargoWise platform remains one of the world’s leading logistics software solutions, used by freight forwarders, customs brokers, and supply chain operators globally. The business continues to benefit from the long-term shift towards digitising global trade.

Instead, governance concerns have weighed heavily on sentiment. Questions surrounding founder and executive chairman Richard White first emerged late last year and have continued to overshadow the company’s operational performance.

More recently, media reports that the Australian Federal Police is investigating White over alleged trafficking matters have added fresh uncertainty.

WiseTech responded by stating the reported investigation relates to White in his personal capacity.

Results could be a turning point

The next major catalyst arrives with WiseTech’s FY26 results next month.

Earlier this year, management reaffirmed guidance for revenue of US$1.39 billion to US$1.44 billion, representing growth of 79% to 85%.

The company also expects EBITDA of US$550 million to US$585 million, up between 44% and 53% on FY25.

If WiseTech meets or exceeds those targets, investors in WiseTech shares may start shifting their focus back to the company’s underlying growth rather than governance issues.

Brokers still see substantial upside

Despite the collapse, several brokers remain optimistic. Citi recently retained its buy rating, although it reduced its 12-month price target to $52 from $65.65. Even after the downgrade, that implies gains of more than 65% from current levels.

Bell Potter is even more bullish. The broker also has a buy rating and a $71.75 price target, implying the shares could more than double over the next 12 months.

Bell Potter believes WiseTech has largely missed the recent rally in ASX technology stocks because of company-specific headwinds. However, it expects those issues to gradually fade, beginning with the appointment of Raelene Murphy as chair.

Foolish takeaway

WiseTech’s underlying business continues to deliver strong growth, but governance concerns have dominated the investment story.

Whether the shares recover will likely depend less on revenue growth, which remains robust, and more on whether management can rebuild investor confidence.

Some brokers believe the upside could be enormous. Even so, after one of the ASX’s biggest share price collapses, investors should expect the road to recovery to remain volatile.

The post WiseTech shares have crashed 73%. Is this the buying opportunity of the decade? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation can be a great place to build passive income for retirement.

The tax settings can be attractive, the investment time horizon is long, and investors have the ability to reinvest returns for years before they need to draw on the money.

But how much would someone actually need in superannuation to target a $3,000 monthly passive income?

Let’s break it down.

How much is $3,000 per month?

A $3,000 monthly passive income works out to $36,000 per year.

That could make a meaningful difference in retirement. It could help cover groceries, insurance, bills, travel, healthcare, or provide extra breathing room alongside the Age Pension or other income sources.

To achieve this, the amount needed in superannuation depends on the dividend yield generated by the portfolio.

A simple way to estimate it is to divide the annual income target by the portfolio yield.

How much superannuation is needed?

If a superannuation portfolio generated a 3% yield, an investor would need around $1.2 million to earn $36,000 per year in passive income.

At a 4% yield, the required balance falls to around $900,000. A portfolio yielding 5% would need approximately $720,000, while a 6% yield would require about $600,000.

That is a wide range, but it shows how much the yield changes the equation.

A lower-yielding portfolio may require more capital, but it could offer stronger growth or lower income risk. A higher-yielding portfolio can make the income target look easier, but it may come with greater risk.

Should you aim for the highest yield?

It can be tempting to focus only on the biggest dividends.

But that can be a mistake. A very high dividend yield can sometimes be a warning sign. The market may be expecting the dividend to fall, or the company could be facing pressure from weaker earnings, debt, regulation, lower commodity prices, or a difficult cycle.

The best approach is arguably to think about income that is sustainable. That means looking for ASX shares with reliable cash flow, manageable payout ratios, robust balance sheets, and business models that can keep supporting dividends over time.

It is important to remember that a $3,000 monthly passive income target is not just about getting paid next year. It is about building an income stream that can last through retirement.

What ASX shares could help?

ASX shares can be attractive inside superannuation because many pay dividends and some offer franking credits.

Lower-yielding blue chips such as Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), and Washington H. Soul Pattinson and Co Ltd (ASX: SOL) may be good options for investors who want quality and long-term dividend growth potential.

Shares such as Telstra Group Ltd (ASX: TLS), APA Group (ASX: APA), and Transurban Group (ASX: TCL) can provide exposure to telecommunications and infrastructure-style cash flows.

Property trusts such as Charter Hall Long WALE REIT (ASX: CLW) and Charter Hall Retail REIT (ASX: CQR) can also play a role. And investors willing to accept more cyclicality might look at names such as Harvey Norman Holdings Ltd (ASX: HVN) or Universal Store Holdings Ltd (ASX: UNI), which can offer attractive fully franked dividends when trading conditions are supportive.

Foolish takeaway

Aiming for $3,000 per month in passive income from superannuation is achievable, but the required balance depends heavily on the portfolio yield.

At a 5% yield, the rough target is around $720,000. At 6%, it falls to around $600,000.

The best answer may sit somewhere between growth and income. A portfolio that combines quality dividend shares, infrastructure, property income, and some dividend growth potential could give retirees a better chance of building an income stream that lasts.

The post How much is needed in superannuation to target a $3,000 monthly passive income? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Woolworths, Elders, Wesfarmers shares
• 8 ASX 200 shares downgraded by experts this week
• How much could a $100,000 ASX share portfolio pay in dividends?
• How much does Morgan Stanley think Wesfarmers shares will fall?
• 3 shares with above-average dividend yields to supplement your superannuation

Motley Fool contributor James Mickleboro has positions in Universal Store and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Charter Hall Retail REIT, Harvey Norman, Telstra Group, Transurban Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Universal Store and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.