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Australia’s superannuation industry has undergone a quiet but profound transformation. According to KPMG’s 2026 Super Insights report, the country now has nine superannuation mega funds each managing more than $100 billion in assets.

This is up from eight the prior year after Cbus crossed the $100 billion threshold.

The top 24 funds, those managing more than $20 billion each, now account for around 96% of all superannuation assets in the country.

That level of concentration has happened largely without most members noticing.

Why superannuation mega funds keep growing

The driver behind this consolidation is partly regulatory.

The “Your Future, Your Super” annual APRA performance test continues to apply to MySuper products and certain choice products. Funds that fail the test in consecutive years face restrictions on accepting new members.

That regime has pushed smaller, underperforming funds to merge into larger funds rather than risk being locked out of accepting new members entirely.

Market share held by mega funds increased from 63.1% in FY24 to 67.5% in FY25, with AustralianSuper remaining the nation’s largest fund at $389 billion, subsequently followed by Australian Retirement Trust at $351 billion.

Total superannuation assets have grown beyond $4.5 trillion, equivalent to around 150% of Australia’s GDP.

What bigger super funds mean for fees and performance

The most direct benefit of superannuation consolidation for everyday members is scale.

Larger funds can negotiate lower fees with investment managers, spread administrative costs across a larger member base, and invest in asset classes that smaller funds cannot access. This includes direct stakes in infrastructure, private equity, and unlisted property.

Average operating costs across the industry rose to $250 per member in FY25, driven mainly by technology uplifts and stronger cyber resilience.

These costs are far easier for a $100 billion fund to absorb without materially affecting member returns than for a fund one-tenth that size.

In FY25, the median growth fund returned 10.5%. This marks a third consecutive year of strong outcomes for members across the industry.

The flip side of superannuation mega funds

Consolidation is not entirely positive for members.

As smaller funds disappear into larger ones, product differentiation in the superannuation market narrows.

Members of merged funds are sometimes shifted into investment options that do not perfectly match their original risk profile or values, particularly around ethical or sustainable investment choices that smaller boutique funds had previously offered.

KPMG superannuation advisory lead Lisa Butler-Beatty said:

As the system grows and mega funds continue to emerge, the winners will be those that can convert scale into consistently better outcomes, which includes not only a strong performance, but also stronger member experiences and robust safeguards.

What it means for how you invest

For most Australians, the rise of superannuation mega funds reinforces a simple lesson that applies just as well to investing inside super through shares as it does to choosing a fund.

Scale, diversification, and low costs compound into materially better outcomes over a multi-decade investment horizon.

Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are among the largest individual holdings across Australia’s biggest superannuation funds.

They reflect exactly the kind of large, liquid, dividend-paying businesses that scale and that patience rewards over time.

Foolish Takeaway

Australia’s superannuation system has consolidated dramatically. Nine mega funds now dominate an industry that not long ago was far more fragmented.

For most members, that consolidation has likely delivered lower fees and more consistent performance.

But it has also reduced genuine choice and personalisation in the market.

Understanding which type of fund you are in, and why, is worth a few minutes of your time this year.

The post Australia now has 9 superannuation mega funds. Here is what that means for your retirement appeared first on The Motley Fool Australia.

More reading

• Guess which beaten-down ASX All Ords gold stock is pushing towards production
• This ASX retail stock just rejected a takeover bid. Is a bigger offer coming?
• 3 ASX growth shares to buy next month
• A2 Milk shares jump 7% on big China and special dividend news
• ASX 200 stock drops on FY 2026 results

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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The SGH Ltd (ASX: SGH) share price is in focus after the company announced a new on-market share buy-back of up to $500 million over the next 12 months, highlighting its strong balance sheet and recent progress in cutting debt.

What did SGH report?

• Approval for an on-market buy-back of up to $500 million in ordinary shares
• Leverage reduced below the company’s through-the-cycle target of 2.0x Adjusted Net Debt to EBITDA
• Strong operating cash flow and disciplined capital management cited as key factors behind the buy-back decision
• Buy-back not expected to affect funding for organic growth or further investments

What else do investors need to know?

The buy-back program will start after the company’s blackout period ends, expected around 11 August 2026, following the release of SGH’s FY26 financial results. SGH says the timing and size of actual purchases will depend on market conditions, future capital needs, and other factors that may arise.

The company emphasised that the buy-back is designed to maintain significant balance sheet capacity and flexibility, supporting its ongoing investment in businesses like WesTrac, Boral, and Coates, as well as its holdings in Beach Energy and Southern Cross Media Group.

What’s next for SGH?

SGH is signalling continued financial discipline, aiming to deliver value for shareholders through both the buy-back and further investments. The company indicates it will keep targeting growth opportunities and maintaining the flexibility to act when the right opportunities come along.

With a strong mix of industrial, energy, and media assets, SGH looks set to focus on both organic investment and potential inorganic growth, all while keeping its balance sheet robust.

SGH share price snapshot

Over the past 12 months, SGH shares have declined 20%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post SGH announces $500m buy-back and highlights financial strength appeared first on The Motley Fool Australia.

More reading

• These ASX shares were buy rated even before today’s $500m buyback. How high could they go?
• Metcash shares: FY26 profit edges lower, dividend maintained
• AFIC reveals 2026 dividend plans for shareholders
• a2 Milk Company gets China approval and plans $300m dividend
• 5 things to watch on the ASX 200 on Monday

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 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.

While much of the ASX has lagged in 2026, weighed down by several headwinds, three ASX shares hit fresh 52-week highs on Friday. 

In the past 12 months, these ASX shares have shot higher: 

• Weebit Nano (ASX: WBT) has risen 448%
• Srg Global (ASX: SRG) has climbed 150%
• Dicker Data (ASX: DDR) is up 58%. 

After hitting fresh yearly highs, here’s what brokers are expecting moving forward for these red hot ASX shares. 

Weebit Nano outlook 

Weebit Nano Ltd. develops and licenses Resistive Random-Access Memory (ReRAM), an advanced semiconductor memory technology designed to outperform traditional Flash memory in speed, energy efficiency, and reliability.

Its rise over the past year has been driven by several key tailwinds: 

• Major customer validation – Licensing deals with Tier-1 semiconductor giants signalled industry-wide acceptance of ReRAM as the next-generation memory standard.
• Rapid revenue inflection – Revenue grew exponentially year-on-year, with guidance repeatedly upgraded, confirming the business model is converting technology into real commercial traction.
• Ready to scale – Technology cleared industry manufacturing standards and the company raised significant capital to fund the next phase of growth.

While it could remain a speculative buy based on broker targets, its memory technology addresses a critical challenge in AI, IoT, automotive, and industrial applications, where increasing processing demands are exposing the limitations of conventional memory technologies.

This could give it plenty of runway for further gains despite already rising significantly in the last 12 months. 

SRG can continue to climb

SRG is an engineering-led construction, maintenance and mining services group built to solve complex problems across the entire asset lifecycle.

Its share price has soared in the last 12 months on the back of contract wins and earnings upgrades. 

In good news for prospective investors, it is still generating broker interest despite its massive gain over the last year. 

Morgans recently retained its buy recommendation on these ASX shares, along with an increased price target of $4.20. 

From Friday’s closing price of $3.97, this indicates a further 6% upside. 

Bell Potter is also optimistic on the future for these ASX shares. 

It recently upgraded its price target to $4.25. 

Dicker Data looks fully valued

Dicker Data Ltd is a wholesale distributor of computer hardware, software, cloud, and related products.

It has been one of the ASX technology shares riding the data centre boom in the last year. 

After hitting fresh 52-week highs last Friday, it appears these ASX shares may now be fully valued. 

Morgan Stanley currently has an $11 price target on these ASX shares, which is well below Friday’s closing price of $12.43. 

The post These are three of the hottest ASX shares right now – can they keep rising? appeared first on The Motley Fool Australia.

More reading

• This ASX tech stock just hit a 52-week high after soaring 35% in a month
• 8 ASX 200 shares with renewed buy ratings this week
• After dropping 9% yesterday, should you buy the dip on these ASX shares?
• Why Aeris Resources, Northern Star, REA Group, and Weebit Nano shares are falling today
• ASX 200 tech stocks led the market with big share price gains last week

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 positions in and has recommended Dicker Data. The Motley Fool Australia has recommended Srg Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Australian Foundation Investment Co Ltd (ASX: AFI) share price is in focus after the company outlined plans for a final dividend of 14.5 cents per share (fully franked), together with a previously flagged special dividend of 2.5 cents per share, also fully franked.

What did Australian Foundation Investment Company report?

• Final dividend of 14.5 cents per share, fully franked, intended for FY26
• Special dividend of 2.5 cents per share, fully franked, planned
• Both dividends subject to market conditions and no adverse market shocks
• Dividends to be officially determined with the FY26 results announced 27 July 2026
• Ongoing on-market buy-back program continues

What else do investors need to know?

AFIC’s Board reiterated its commitment to regular returns for shareholders, reaffirming that the final and special dividends will be determined alongside the financial year result. The Board emphasised that dividends remain subject to market conditions holding steady and no significant negative events.

Additionally, the Company will continue its on-market buy-back. This move is designed to optimise capital management and support the share price, aligning with AFIC’s long-standing approach to shareholder value.

What’s next for Australian Foundation Investment Company?

Investors can expect a dividend update, including confirmation of both the final and special dividends, along with the Company’s annual results on 27 July 2026. The Board’s message makes it clear that AFIC is focused on steady, reliable returns but remains watchful of market conditions.

Looking forward, the ongoing buy-back is set to provide further flexibility in AFIC’s capital management, potentially enhancing value for shareholders in the months ahead.

Australian Foundation Investment Company share price snapshot

Over the past 12 months, AFIC shares have declined 12%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post AFIC reveals 2026 dividend plans for shareholders appeared first on The Motley Fool Australia.

More reading

• a2 Milk Company gets China approval and plans $300m dividend
• 2 ASX blue-chip shares offering big dividend yields
• 5 things to watch on the ASX 200 on Monday
• Healthcare shares led the ASX 200 last week. Is a sector comeback underway?
• At 40 how does your superannuation balance compare? It might be time for a tune up

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 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.

iShares Core S&P/ASX 200 ETF (ASX: IOZ) offers a simple way to invest in the Australian share market.

This indices-tracking ASX exchange-traded fund (ETF) seeks to mirror the total returns of the S&P/ASX 200 Index (ASX: XJO).

This means IOZ ETF investors own a piece of each of Australia’s top 200 listed companies by market capitalisation.

According to the latest ASX data, Australians have almost $8.69 billion invested in the IOZ ETF.

Today, the IOZ ETF’s portfolio has changed because the ASX 200 Index has been updated.

Every quarter, S&P Dow Jones Indices rebalances Australia’s leading indexes, including the ASX 200.

Some companies are added, and some are taken out, depending on how their valuation has changed and other criteria.

The June quarter rebalance takes effect today.

When the index changes, BlackRock is compelled to update the IOZ ETF holdings to match the index.

This ensures investors will receive returns that mirror the performance of the index, minus management fees.

Own IOZ ETF? Here are the new shares you own

As of today, investors now own the following newly appointed ASX 200 shares.

ASX 200 share	About	2026 share price change	12-month change
Electro Optic Systems Holdings Ltd (ASX: EOS)	Defence and space technology solutions provider	8%	282%
Elevra Lithium Ltd (ASX: ELV)	Lithium miner	51%	468%
Firefly Metals Ltd (ASX: FFM)	Copper and gold miner	(4%)	88%
Kingsgate Consolidated Ltd (ASX: KCN)	Gold miner	(7%)	133%
Minerals 260 Ltd (ASX: MI6)	Gold miner	107%	643%

You no longer own these ASX shares

These companies were dumped from the ASX 200 in the June rebalance. As a result, they are out of the IOZ ETF portfolio.

ASX share	About	2026 share price change	12-month change
Guzman Y Gomez Ltd (ASX: GYG)	Mexican franchise quick-service restaurant	(13%)	(36%)
IDP Education Ltd (ASX: IEL)	Language testing and student placement company	(56%)	(33%)
Siteminder Ltd (ASX: SDR)	Hotel industry bookings platform	(34%)	(12%)
Temple & Webster Group Ltd (ASX: TPW)	Online furniture retailer	(59%)	(74%)
Web Travel Group Ltd (ASX: WEB)	B2B wholesale travel business centred on WebBeds	(37%)	(33%)

Aussie investors love their ASX ETFs

ASX ETFs like IOZ allow investors to buy a basket of local or international shares in one trade for a single brokerage fee.

ETFs also have low ongoing management fees. BlackRock charges IOZ ETF investors 0.05% per year.

IOZ ETF has delivered an average annual return, comprising capital growth and dividends, of 8.26% since inception.

The post Invested in IOZ ETF? Your portfolio has changed today appeared first on The Motley Fool Australia.

More reading

• These are three of the hottest ASX shares right now – can they keep rising?
• AFIC reveals 2026 dividend plans for shareholders
• a2 Milk Company gets China approval and plans $300m dividend
• 2 ASX dividend shares with yields above 7%
• Why CSL, Westpac, and this big-name ASX 200 share could be sells

Motley Fool contributor Bronwyn Allen 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 BlackRock, Electro Optic Systems, SiteMinder, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The A2 Milk Company Ltd (ASX: A2M) share price is in focus today after it received final regulatory approval in China for its infant milk formula products, with the board proposing a special $300 million dividend.

What did The a2 Milk Company report?

• Received State Administration for Market Regulation (SAMR) approval in China for two infant milk formula (IMF) product registrations
• Regulatory step completes the transition of a2 Pokeno facility registrations to a2 branded products
• Launch of new China label IMF products expected later in 2026
• Board intends to declare a fully franked and unimputed $300 million special dividend

What else do investors need to know?

With the SAMR approval secured, a2MC cannot unwind its acquisition of the a2 Pokeno manufacturing facility. This step finalises the regulatory requirements set out during the initial purchase, allowing the company to move forward with product launches as originally planned.

The a2 Milk Company has confirmed there is no change to either the timing of new product launches or its previously stated financial forecasts as a result of this approval. Details regarding the timing and payment of the special dividend will be shared in a separate announcement once approved by the board.

What did The a2 Milk Company management say?

Managing Director and CEO David Bortolussi said:

SAMR approval marks a significant milestone in our China growth strategy and Supply Chain transformation. It supports long-term growth in our core IMF business through market access and innovation, accelerates the development of advanced nutritional manufacturing capability, and captures attractive financial returns through incremental brand contribution and vertical margin capture.

What’s next for The a2 Milk Company?

The company expects to launch its newly approved China label IMF products later in the 2026 calendar year, delivering on its growth and innovation plans for the key Chinese market. Management remains committed to delivering the previously outlined financial and strategic benefits from the acquisition and product transition.

Shareholders can expect more information soon about the timing and payment of the proposed $300 million fully franked special dividend, pending formal board approval.

The a2 Milk Company share price snapshot

Over the past 12 months, a2 Milk Company shares have declined 17%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post a2 Milk Company gets China approval and plans $300m dividend appeared first on The Motley Fool Australia.

More reading

• AFIC reveals 2026 dividend plans for shareholders
• 5 things to watch on the ASX 200 on Monday
• Healthcare shares led the ASX 200 last week. Is a sector comeback underway?
• At 40 how does your superannuation balance compare? It might be time for a tune up
• Here are the top 10 ASX 200 shares today

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 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.

In an era where capital gains and negative gearing are less appealing, ASX dividend shares could be particularly attractive to invest in. Given how high term deposit rates are now, an investment may need a particularly high dividend yield to be appealing.

Ultra-high dividend yields may not necessarily be the best choice for passive income because their payouts may be less reliable.

So, if we aim for yields that are a little lower, investors may get a good dividend yield, payout growth and hopefully long-term capital gains.

WCM Global Growth Ltd (ASX: WQG)

This business is a listed investment company (LIC), which I’d describe as one of the ideal types of investments for passive income.

LICs invest in other shares, giving investors diversification through a single investment, while being a company gives the board of directors control over the size (and reliability) of the dividend, assuming the company has the accounting profit reserve to do so.

High-performing LIC investment teams can deliver pleasing portfolio returns, a solid rising dividend and an increasing profit reserve.

That’s exactly what it has been happening at WCM Global Growth – the ASX dividend share’s portfolio has delivered an average return after fees of 15.8% per year since inception in June 2017. Past performance is not a guarantee of future performance, of course.

The company’s strategy is based on the belief that corporate culture is the biggest influence on a company’s ability to grow its competitive advantages (otherwise known as an economic moat).

It’s growing its quarterly dividend every quarter and has been doing so since FY23. Its next four dividends are guided to come to 9.59 cents per share, which translates into a grossed-up dividend yield of 7.2%, including franking credits, at the time of writing.

MFF Capital Investments Ltd (ASX: MFF)

The other ASX dividend share I want to highlight is investment business MFF.

While it was a pure LIC for most of its life, it now owns a small funds management business called Montaka. That move gives MFF a larger team of professionals to draw on for investment ideas and an additional earnings stream.

But, it’s important to note that virtually all of the ASX dividend share’s value is still tied up in its excellent investment portfolio that is focused on global shares that are competitively advantaged with long-term growth potential.

MFF has hiked its regular annual dividend per share each year since FY18. Its half-year dividend has been hiked by 1 cent per share every six months for the last few years and I expect that to continue for the foreseeable future. If that happens in FY27, it offers a grossed-up dividend yield of 7.02%, including franking credits, at the time of writing.

Of course, these are not the only two ASX shares I have my eyes on.

The post 2 ASX dividend shares with yields above 7% appeared first on The Motley Fool Australia.

More reading

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• How to invest $9,000 for passive income in superannuation?
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• I’d buy 37,540 shares of this ASX stock to aim for $300 a month of passive income
• How much is needed in superannuation to target an $8,000 monthly passive income?

Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments and Wcm Global Growth. 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 positions in and has recommended Mff Capital Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When you are aiming to outperform the market, it can be just as important to know which ASX shares to avoid as it is to know which ones to own.

After all, if you own shares that are likely to fall in value, your portfolio returns could suffer.

With that in mind, let’s look at three ASX shares that analysts have named as sells this week, courtesy of The Bull. Here’s what they are bearish on:

CSL Ltd (ASX: CSL)

The team at Peak Asset Management has named CSL shares as a sell this week.

Peak believes its sell rating is justified given CSL’s recent outlook downgrade and the ongoing challenges that it faces. It explains:

A sell rating is justified as this biotechnology giant has materially downgraded its fiscal year 2026 outlook while announcing about $5 billion of additional non-cash pre-tax impairments across fiscal years 2026 and 2027. Revenue expectations have been reduced due to US immunoglobulin channel normalisation and weaker albumin prices in China. The CSL Vifor acquisition has under-performed. Also, government healthcare cost pressures and a higher interest rate environment present ongoing challenges for the biotechnology sector, further weighing on sentiment.

Northern Star Resources Ltd (ASX: NST)

Baker Young thinks that gold mining giant Northern Star could be an ASX 200 share to sell this week.

Although there is optimism around the emergence of an activist investor, Baker Young is more focused on the underperformance of Northern Star’s operations and thinks investors should look elsewhere in the sector. It said:

The emergence of prominent US based activist investor Elliott Investment Management has prompted optimism surrounding the gold miner. However, in our view, it doesn’t alter the underperformance of NST’s asset base involving production volumes, costs and capital expenditure requirements. A new management team will likely rebase expectations. But we would seek alternative gold exposure for those still playing the theme. The shares have fallen from $31.73 on March 2 to trade at $21.44 on June 18.

Westpac Banking Corp (ASX: WBC)

Bell Potter remains bearish on Westpac shares and has named the big four bank as a sell this week.

While the business is improving, this is happening at the same time that the operating backdrop is weakening. In addition, the broker sees potential for an earnings downgrade in the near term. It said:

The business is improving on the metrics that matter, but the operating backdrop is weakening. Mortgage applications since the Federal Budget in May are below the prior two quarters, pointing to a slowdown in housing credit growth into next year. Proposed tax changes to capital gains tax and negative gearing have soured sentiment, and there’s no fresh financial guidance to lean on. With Westpac’s stock trading near the top of its range amid a possible earnings downgrade, I see more downside than upside from here.

The post Why CSL, Westpac, and this big-name ASX 200 share could be sells appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Here’s where I would invest $5,000 in ASX shares
• Buy, hold, sell: CSL, Steadfast, and Wesfarmers shares
• How to know when a beaten-down ASX share is worth buying
• Healthcare shares led the ASX 200 last week. Is a sector comeback underway?

Motley Fool contributor James Mickleboro has positions in CSL. 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.

The ASX blue-chip share space is a good hunting ground to find ideas that offer significant passive income and long-term growth. Franking credits can be a very pleasing, yield-boosting bonus.

If I were investing for dividends, I’d be careful about choosing businesses that are exposed to cycles and could consequently suffer profit falls, leading to potential dividend reductions. That’s why I’m cautious on investing in ASX bank shares and ASX mining shares at the wrong point in the cycle.

In my view, the following two names are two of the best options for passive income from ASX blue-chip shares with solid dividend yields.

Telstra Group Ltd (ASX: TLS)

Telstra is Australia’s leading telecommunications business with a market-leading network. It has the biggest network coverage, the most subscribers and strong profit margins.

As the country becomes increasingly digital and reliant on technology, I think Telstra is becoming increasingly defensive. It has a large wholesale customer base, as its mobile network powers a number of other telcos, including ALDI Mobile, Exetel, Tangerine and Superloop Ltd (ASX: SLC).

In terms of the dividend, the ASX blue-chip share has increased its annual payout each year since FY22 as the financial strength of its network plays out. The company’s average revenue per user (ARPU) is steadily rising amid regular price increases, which is a helpful boost for operating leverage.

According to the projection on Commsec, the business is forecast to pay an annual dividend per share of 21 cents in FY26 – a possible rise of 10.5%, year over year. That translates into a forward grossed-up dividend yield of close to 6%, including franking credits, at the time of writing.

Australian Foundation Investment Co Ltd (ASX: AFI)

While this listed investment company (LIC) isn’t in the S&P/ASX 200 Index (ASX: XJO) itself, its portfolio is full of ASX blue-chip shares.

Some of its biggest portfolio includes names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Macquarie Group Ltd (ASX: MQG), Westpac Banking Corp (ASX: WBC), Transurban Group (ASX: TCL), Wesfarmers Ltd (ASX: WES), National Australia Bank Ltd (ASX: NAB) and Telstra.

The above names account for 46.9% of the portfolio, so it gives excellent exposure to Australia’s biggest companies.

AFIC said that it aims to provide shareholders with “attractive investment returns through access to a growing stream of fully franked dividends and enhancement of capital invested over the medium to long term”.

Excluding special dividends, the last two half-year ordinary dividends from the ASX blue-chip share amounts to 26.5 cents per share. At the time of writing, that means AFIC has a grossed-up dividend yield of 5.9%, including franking credits.

The business hasn’t given investors any regular dividend cuts this decade, so it has been very reliable for investors.

In terms of how appealing it is, its pre-tax net tangible assets (NTA) was $7.90 as of 12 June 2026. That means it’s trading at a 19% discount to its latest weekly NTA update. That’s a great discount, in my opinion.

These aren’t the only ASX shares I’d happily buy for income, though.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

More reading

• Close to retirement? 4 ASX shares for decades of income
• Should I buy Telstra shares for passive income?
• How to invest in ASX shares when you can’t find stocks to buy
• Here are my 5 best ASX passive income stocks
• 5 years ago, $10,000 bought 2,801 Telstra shares. But how many would it buy now?

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

The ASX dividend stock JB Hi-Fi Ltd (ASX: JBH) has fallen heavily over the last several months, making this a great time to look at the discounted business.

As the above chart shows, the JB Hi-Fi share price has fallen 35% since its peak in August 2025.

Of course, something is not a buy just because it has fallen. But, as an ASX retail stock, it’s understandable there is cyclicality to the JB Hi-Fi share price and somewhat to the earnings as well.

After such a large decline, I think it’s a great time to consider investing in this market-leading business.

ASX dividend stock credentials

The company has a strong track record of dividend growth over the years. In the past 13 years, its dividend has been hiked for nearly every one of those years, aside from one year during the high inflation period a few years ago.

Time will tell what the FY26 annual dividend is, but it’s important to remember that the business has already paid its FY26 interim dividend.

According to the projection on Commsec, the business is forecast to pay an annual dividend per share of $3.38 in FY26.

At the time of writing, that translates into an estimated annual grossed-up dividend yield of 6.1%, including franking credits. There are not many ASX blue-chip shares that have a dividend yield as attractive as that.

Why this looks like a good time to invest

While the current economic conditions are not ideal for a retailer, it’s this environment that has led to the much lower JB Hi-Fi share price.

I think it’s essential to remember that all we can do is buy the business at a good price, which is what we’re being presented with right now.

According to the projection on Commsec, the ASX dividend stock is forecast to generate earnings per share (EPS) of $4.50 in FY26. That means it’s valued at 17x FY26’s estimated earnings. I think that’s an appealing level, considering earnings are expected to grow in both FY27 and FY28.

In its latest quarterly update, the business reported ongoing sales growth for the period of 1 January 2026 to 31 March 2026. JB Hi-Fi Australia sales rose 4% year over year, JB Hi-Fi New Zealand sales grew 23.2%, The Good Guys sales climbed 2.5% and only E&S (its smallest business) saw sales drop by 1.4%.

If it can keep its costs low and continue growing sales (and profit) over time, then I think this ASX dividend has a very promising future as Australia continues its digitalisation.

But, it’s not the only business I have my eyes on right now.

The post 1 ASX dividend stock down 35% I’d buy right now appeared first on The Motley Fool Australia.

More reading

• Experts name 3 ASX 200 shares to buy
• Why did ASX 200 retail shares outperform last week?
• Why Develop Global, IDP Education, JB Hi-Fi, and Wesfarmers shares are pushing higher today
• Here are the top 10 ASX 200 shares today
• Australia’s minimum wage just rose 4.75%. Here is what it means for ASX consumer stocks

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 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.