Tag: Stock pick

It was a busy week for Australia’s top brokers. This has led to a number of broker notes being released. 

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

DigiCo Infrastructure REIT (ASX: DGT)

According to a note out of Bell Potter, its analysts have retained their buy rating on this data centre company’s shares with a trimmed price target of $3.35. The broker highlights that DigiCo announced its FY 2026 result last week with its underlying EBITDA of $126.6 million slightly above expectations. And while guidance for FY 2027 EBITDA came in below estimates, it believes a material capex spend and customer letters of intent points to earnings ramping up in FY 2028 as billing comes on line. It believes this should support a growing dividend. In addition, with its shares still trading at a deep discount to their net tangible assets, Bell Potter sees a lot of value in them. The DigiCo share price ended the week at $2.53.

Goodman Group (ASX: GMG)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $35.40 price target on this industrial property company’s shares. This follows the release of an FY 2026 result that revealed operating earnings marginally ahead of consensus estimates. Once again, while its guidance for FY 2027 was a touch short of expectations, the broker appears confident it can outperform this and is expecting a double-digit three-year earnings compound annual growth rate. So, with its shares trading at a discount to its long-run PE ratio, Macquarie thinks now could be the  time to buy. The Goodman share price was fetching $27.27 at Friday’s close.

Megaport Ltd (ASX: MP1)

Analysts at Morgans have upgraded this network services company’s shares to a buy rating with a $25.00 price target. According to the note, Megaport delivered both FY 2026 earnings and FY 2027 guidance that were above market expectations. This reflects record network and compute growth. And while there are minor balance sheet concerns, Morgans believes the company will end FY 2027 with surplus liquidity of nearly $600 million. Outside this, it highlights that deals already contracted suggest that EBITDA will lift 3 times in FY 2027 and then more than double in FY 2028. The Megaport share price ended the week at $18.38.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Why Megaport, Lendlease and JB Hi-Fi shares all crashed 14% to 15% this week
• 8 ASX shares just upgraded by the experts
• 3 ASX shares UBS says will return better than 36%
• Buy, hold, sell: Fortescue, Northern Star, and Megaport shares
• Why were Goodman shares just downgraded?

Motley Fool contributor James Mickleboro has positions in Goodman Group and Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Macquarie Group, and Megaport. The Motley Fool Australia has recommended Goodman Group and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX 200 healthcare shares vastly outperformed their peers, rising 9.21%, as earnings season continued last week.

Pleasing FY26 reports from heavyweights CSL Ltd (ASX: CSL) and Pro Medicus Ltd (ASX: PME) turbocharged the sector.

The broader S&P/ASX 200 Index (ASX: XJO) slipped 0.62% over the week to 9,058.9 points on Friday.

Healthcare is in the middle of a rapid recovery following a 29% slump over the 12 months to early June.

The S&P/ASX 200 Health Care Index (ASX: XHJ) reached a 9-year low on 3 June.

The sector then pivoted as value investors rushed in to snap up blue-chips on the cheap.

Healthcare shares have skyrocketed 41% since 3 June, compared to a 3% rise for the ASX 200.

Let’s review some specifics from last week.

Healthcare shares led the ASX sectors last week

Last week, several major healthcare companies revealed their latest periodic earnings results.

The CSL share price leapt 23.3% to $168.30 on the strength of its FY26 results last week.

CSL shares have rocketed 82% since the healthcare sector rebound began on 3 June.  

Pro Medicus shares jumped 7.1% to $191.60 on the back of the company’s FY26 report.

The Pro Medicus share price is up 20% since 3 June. 

The Cochlear Ltd (ASX: COH) share price rose 1.4% to $135.48 following the hearing implant maker’s FY26 report.

Cochlear shares have increased 42% since 3 June.

The Healius Ltd (ASX: HLS) share price jumped 13.8% to 46 cents following its FY26 report last week.

Healius shares are up 38% since 3 June.

The EBOS Group Ltd (ASX: EBO) share price ascended 7.2% to $18.96 following the company’s FY26 results.

EBOS shares are up 20% since 3 June.

The Mesoblast Ltd (ASX: MSB) share price lifted 6.8% to $2.36 following a phase 3 trial update.

Mesoblast shares have risen 17% since 3 June.  

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Healthcare (ASX: XHJ)	9.21%
Materials (ASX: XMJ)	5.61%
Energy (ASX: XEJ)	3.5%
Utilities (ASX: XUJ)	0.85%
Communication Services (ASX: XTJ)	(1.41%)
Industrials (ASX: XNJ)	(2.08%)
Consumer Staples (ASX: XSJ)	(2.65%)
Information Technology (ASX: XIJ)	(3.57%)
A-REIT (ASX: XPJ)	(4.43%)
Financials (ASX: XFJ)	(5.11%)
Consumer Discretionary (ASX: XDJ)	(6.55%)

The post ASX 200 healthcare shares soar 9% amid notable FY26 reports from CSL, Pro Medicus appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 16 ASX 200 shares with ex-dividend dates next week
• 3 ASX 200 stocks, including CSL, leaping 15% to 23% in this week’s sliding market
• 8 ASX shares just upgraded by the experts
• Why Guzman Y Gomez, Pro Medicus and James Hardie shares are turning heads on Friday

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 CSL and Cochlear. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended CSL, Cochlear, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Warren Buffett has built his fortune by buying shares in businesses he believes can compound wealth over many years. While the Oracle of Omaha doesn’t typically buy ASX shares, his investing principles can still help Australian investors identify potentially attractive shares.

Here are five things to look for.

Buy businesses you understand

Buffett has repeatedly stressed the importance of staying within his circle of competence.

That means understanding how a company makes money, what drives its earnings and what could threaten its competitive position.

On the ASX, that could mean favouring familiar businesses such as Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW) or Wesfarmers Ltd (ASX: WES), provided their valuations make sense.

The point isn’t to buy familiar names blindly. It’s to avoid investing in ASX shares you can’t properly assess.

A durable competitive advantage

Buffett’s famous economic moat is central to his strategy. I’d look for ASX shares with something that makes it difficult for competitors to steal customers and profits.

That could be a powerful brand, network effects, switching costs, intellectual property, scale or a structural advantage in an industry.

A company with a strong moat can potentially maintain attractive returns on capital for years.

Consistent earnings and cash flow

Great stories aren’t enough. I’d want to see evidence that a business can consistently generate profits and cash.

Strong cash flow gives companies more flexibility to reinvest in growth, reduce debt, pay dividends and potentially buy back shares.

This is particularly important when looking for long-term compounders. A business that repeatedly needs fresh capital to survive isn’t the sort of ASX share Buffett typically favours.

A strong balance sheet

Debt can magnify returns when things go well — and magnify problems when they don’t.

Buffett has long emphasised financial strength and the ability of businesses to withstand difficult economic conditions. I’d therefore examine a company’s debt levels, interest costs, cash position and ability to meet its financial obligations.

A robust balance sheet can give an ASX share the flexibility to take advantage of opportunities when weaker competitors are struggling.

A sensible valuation

Perhaps the biggest mistake investors can make is confusing a great business with a great investment. Even an exceptional company can produce disappointing returns if investors pay an excessive price.

I’d therefore compare the price of an ASX share with earnings, cash flow, growth prospects and the company’s historical valuation.

Buffett doesn’t try to predict what a share will do next month. He focuses on whether the price makes sense relative to the underlying business.

The Buffett test

Finding Buffett-style ASX shares isn’t about discovering a secret formula. I’d look for understandable businesses with durable moats, reliable cash generation, strong balance sheets and attractive valuations.

Then comes the hardest part: having the patience to let those businesses compound.

As Buffett’s strategy demonstrates, successful investing is often less about finding the next hot ASX share and more about avoiding bad businesses and paying too much for good ones.

The post 5 things Warren Buffett looks for before buying ASX shares appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $5,500 monthly passive income?
• 3 reasons to buy CBA shares following its results
• Want income for life? Here’s how I’d build an ASX dividend portfolio
• How ASX dividend growth shares can build lasting income
• My top 5 ASX 200 shares to buy and hold

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 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.

Some businesses make me comfortable looking well beyond the next year or two.

I think the three ASX shares below have strong positions in their markets and clear ways to keep growing for many years.

Here is why they would be on my long-term buy list.

REA Group Ltd (ASX: REA)

REA Group owns one of the most powerful digital platforms in Australia through realestate.com.au.

People looking to buy, sell, or rent property naturally want to use the website with the most listings. At the same time, property agents want to advertise where the largest audience is searching.

I think that gives REA Group a strong competitive position that would be difficult to replicate.

There is also more to the opportunity than simply attracting property listings.

REA Group can keep improving the tools available to buyers, sellers, and agents, including property data, personalised recommendations, and artificial intelligence. It can also build closer relationships with people as they move through the property journey, including when they need financing.

Australia should continue adding people and homes over the long term, giving REA Group an expanding market to serve.

For me, the combination of a powerful brand, enormous audience, and opportunities to make the platform more valuable makes REA Group a business I would be comfortable owning for many years.

SiteMinder Ltd (ASX: SDR)

Another ASX share I would buy and hold is SiteMinder. It gives hotels the technology they need to sell rooms and manage their presence across online booking channels.

I like the long-term opportunity because the global accommodation market remains highly fragmented.

Large hotel chains may have substantial technology budgets, but there are countless independent hotels and smaller accommodation providers that still need better ways to manage pricing, bookings, distribution, and guest relationships.

SiteMinder can bring many of those functions together through one platform.

I also like that the company has been expanding what its technology can do. Products such as Channels Plus and Dynamic Revenue Plus are designed to help hotels reach more travellers and make better pricing decisions.

Artificial intelligence could make those tools even more valuable by helping hotel operators automate more of the work involved in managing rooms and responding to changing demand.

If SiteMinder can keep adding properties while increasing the amount of technology each customer uses, I think the business could have a long growth runway ahead.

ResMed Inc (ASX: RMD)

ResMed is an ASX share operating in an area of healthcare where I think demand could continue expanding for decades.

The company develops devices and masks used to treat sleep apnoea, a condition affecting a huge number of people worldwide.

What I like is that the relationship with a patient can continue well beyond the initial sale of a device.

Masks and other components need replacing, while ResMed’s digital platforms can help patients and healthcare providers manage treatment over time.

That creates an opportunity to keep serving existing patients while also reaching people who have yet to be diagnosed or treated.

Greater awareness of sleep health could help with that. Improvements in diagnosis and easier access to treatment could bring more people into the market over the years ahead.

Foolish takeaway

The businesses I most enjoy owning are those where I can see several ways for the company to be stronger five or 10 years from now.

For me, REA Group, SiteMinder, and ResMed are three shares I would be happy to hold patiently for the long term.

The post 3 excellent ASX shares I would buy and hold for 10 years or more appeared first on The Motley Fool Australia.

More reading

• How I’d use ASX growth shares to build long-term wealth
• 16 ASX 200 shares with ex-dividend dates next week
• Buy, hold, sell: REA, Northern Star Resources, Suncorp shares
• 3 ASX shares I’d buy if I could only check my portfolio once a year
• How to find ASX shares that Warren Buffett might buy

Motley Fool contributor Grace Alvino 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 ResMed and SiteMinder. The Motley Fool Australia has positions in and has recommended ResMed and SiteMinder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are various ways that Australians can invest in ASX shares for passive income. We can invest in our own names, through a company, a trust, superannuation and so on.

Investing for passive income through superannuation makes sense for various reasons, with the low tax rate being a key benefit.

Keep in mind that the net income we receive from our investments is what we receive after taxes. It’s possible that an Australian working full-time could lose a third of their passive income to tax, or more, depending on their tax rate.

Based on that, investing in superannuation is a more appealing prospect due to that lower tax rate.

Super has a lower tax rate in the accumulation phase compared to normal individual tax rates for a full-time earner. In retirement, the tax rate could be 0%.

Every Australian’s tax position is different, so I’ll just talk about targeting a certain income level, without mentioning tax any further.

How much is needed in superannuation for $5,500 of monthly passive income?

Receiving $5,500 per month of dividends translates into $66,000 annually. I’m sure most Australians would love to receive that level of dividends each year without needing to do any ongoing work for it, assuming they don’t already receive that much each year.

A key question is deciding what sort of investments Australians want to own and the dividend yield attached to those stocks.

For example, a portfolio with a dividend yield of 6.6% can be half the size of a portfolio with a dividend yield of 3.3%.

For example, if a portfolio is $1 million in size with a 6.6% dividend yield, it would create $66,000 of annual passive income. If a portfolio had a dividend yield of 3.3%, the portfolio would need to be $2 million in size to make the same level of income.

If the portfolio had a dividend yield of 5%, the portfolio would need to be $1.32 million in size to generate an average of $5,500 per month of monthly passive income.

The final dividend yield we’ll look at is 4%. It would take a portfolio value of $1.65 million to unlock $66,000 of annual dividends.

The sorts of ASX dividend shares I’d look at

There is a wide range of ASX dividend shares available for superannuation investments, investing in our own name or other structures.

Some of the lower-yielding stocks I’d look at are Wesfarmers Ltd (ASX: WES), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), L1 Long Short Fund Ltd (ASX: LSF) and Lovisa Holdings Ltd (ASX: LOV).

Some of the mid-range yielding stocks I’d consider for passive income include WCM Quality Global Growth Fund (ASX: WCMQ), Telstra Group Ltd (ASX: TLS), Rural Funds Group (ASX: RFF) and Centuria Industrial REIT (ASX: CIP).

Among the higher-yielding ASX dividend shares I’d consider are WCM Global Growth Ltd (ASX: WQG), Charter Hall Long WALE REIT (ASX: CLW), Dexus Industria REIT (ASX: DXI), Future Generation Australia Ltd (ASX: FGX), Future Generation Global Ltd (ASX: FGG) and PM Capital Global Opportunities Fund Ltd (ASX: PGF).

The post How much is needed in superannuation to target a $5,500 monthly passive income? appeared first on The Motley Fool Australia.

More reading

• Want income for life? Here’s how I’d build an ASX dividend portfolio
• If I invest $15,000 in Telstra shares, how much passive income will I receive in 2027?
• 16 ASX 200 shares with ex-dividend dates next week
• Rural Funds Group FY26 earnings: Asset sales boost profit
• How ASX dividend growth shares can build lasting income

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, Future Generation Global, L1 Long Short Fund, Rural Funds Group, Washington H. Soul Pattinson and Company Limited, Wcm Global Growth, and Wcm Quality Global Growth Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Rural Funds Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Lovisa and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investment property has long been one of Australia’s favourite ways to generate wealth and income. 

However a new report from Global X has shed light on how a changing market is causing many investors to reassess that strategy.

Key market changes 

Rising interest rates, falling home prices and the Federal Government’s changes to negative gearing and capital gains tax (CGT) concessions are reshaping the economics of property investing. 

According to Global X, investors are increasingly turning to alternative sources of income, particularly exchange-traded funds (ETFs). 

ETFs offer access to dividends, bond yields and infrastructure income without the costs and complexity of owning property.

The shift is already showing up in the data.

The latest ABS Lending Indicators report revealed that investor housing activity weakened significantly in the June quarter. The number of new investor loan commitments fell 8.6%, while the value of investor loans declined 10.2% to $37.1 billion. That was by far the largest fall among major borrower groups and marked the sharpest quarterly decline in investor lending since 2022.

While property investors are pulling back, money is flowing strongly into income-focused investment products.

Property is becoming less attractive 

Global X highlighted that residential property has traditionally rested on two pillars: rental income and capital growth. Today, both are facing headwinds.

Borrowing costs remain elevated, reducing the cash flow generated by investment properties. Meanwhile, Australia’s housing market is beginning to lose momentum. Cotality’s national Home Value Index fell 0.7% in July, the largest monthly decline since December 2022. Major banks are reporting that mortgage applications have also fallen by as much as 20% since Budget night, highlighting weaker investor appetite.

Additionally, The Federal Government’s changes to negative gearing and CGT have added another layer of pressure. 

While investors once relied on generous tax benefits to enhance after-tax returns, the reduction of these incentives means many are now taking a closer look at whether property still delivers the income and return profile they need.

These factors are pushing income investors towards a different asset class. 

Income ASX ETFs

According to Global X’s latest ETF Market Scoop, Australian investors allocated a record $6.8 billion into ETFs in July alone, making it the strongest month on record for the industry. 

The report also revealed which type of ASX ETFs investors found most appealing.

Income-focused ETFs attracted a record $1.8 billion, including a record $1.4 billion into bond ETFs.

This surge suggests investors are actively seeking income opportunities outside traditional property investments.

Unlike residential property, income ETFs can provide diversified exposure to dozens or even hundreds of underlying securities through a single investment. Depending on the strategy, investors can access income from government bonds, corporate bonds, listed infrastructure, dividend-paying companies or a combination of these assets.

For investors accustomed to relying on rental income, these products offer an alternative source of regular cash flow without tenant management, maintenance costs, land tax or the need to take on large amounts of debt.

Investors seeking income-oriented ASX ETFs have several options to consider: 

• Global X S&P/ASX 200 High Dividend ETF (ASX: ZYAU)
• Betashares Australian Dividend Harvester Fund (ASX: HVST)
• Betashares S&P Australian Shares High Yield ETF (ASX: HYLD). 

The post The property market is cooling: Here’s how income investors are adapting appeared first on The Motley Fool Australia.

More reading

• Expert names 2 top ASX ETFs to buy today
• This ASX income ETF yields 4.3% and pays monthly dividends
• 3 of the best dividend ASX ETFs right now for passive income
• Why I’d buy these 2 ASX ETFs for $10,000 a year in passive income
• $10,000 invested in these dividend ETFs will bring how much passive income?

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.

ASX ETFs, or exchange traded funds, provide a handy one-stop-shop for Aussie investors seeking to gain exposure to a basket of stocks with a single investment.

Rather than having to research and buy multiple stocks, you can get that diversity, and more, from an ETF.

Below we look at two ETFs that DP Wealth Advisory’s Andrew Wielandt recently issued buy recommendations for (courtesy of The Bull).

ASX ETF offers international stock exposure

The first ASX ETF Wielandt has a bullish outlook on is Betashares Global Royalties ETF (ASX: ROYL).

“ROYL is a diverse exchange traded fund operating across a number of countries, including the United States, Canada, Brazil and Denmark,” he said.

“It holds about 40 companies, with investments including ARM Holdings PLC, Texas Pacific Land Corporation and Wheaton Precious Metals at August 11, 2026,” he added.

Summarising his buy recommendation on ROYL, Wielandt concluded:

ROYL focuses on companies earning royalty and intellectual property income. What appeals is relatively steady returns compared to other cyclical investments. The company posted a return of 15.59% after fees in the past 12 months to July 31, 2026.

Which brings us to…

Exchange traded fund with an ESG bent

The second ASX ETF Wielandt recommends buying will hold particular appeal to investors who place a high value on companies’ environmental, social, and governance (ESG) standards.

The fund in question is the Munro Climate Change Leaders Fund Active ETF (ASX: MCCL), which Wielandt noted that he holds in is own self-managed super fund.

“This exchange traded fund holds a concentrated portfolio of companies aiming to benefit from decarbonisation during the next decade,” he said.

According to Wielandt:

The ETF holds between 15 and 25 positions involved in clean energy, clean transport and energy efficiency. The fund posted a return of 16.9% for the 12 months to July 31, 2026. However, given its highly concentrated nature, it’s important to note that returns can be volatile.

In our view, MCCL can also be considered an investment in the future and can be part of a balanced portfolio.

A bonus passive income ETF

If it’s passive income you’re targeting, then you might want to look into the BetaShares Australian Dividend Harvester Fund (ASX: HVST).

This ASX ETF gives investors instant exposure 40 to 60 high-yielding, blue-chip ASX shares.

And HVST pays out dividends every month, so your next income payout is never too far away.

As at 31 July the HVST had 12-month trailing yield of 5.6%, 63% franked. Taking those franking credits into account, the grossed-up yield comes out to 7.1%.

The post Expert names 2 top ASX ETFs to buy today appeared first on The Motley Fool Australia.

More reading

• 2 ASX ETFs to buy as the market gathers strength: expert
• 3 of the best dividend ASX ETFs right now for passive income
• Why I’d buy these 2 ASX ETFs for $10,000 a year in passive income
• $10,000 invested in these dividend ETFs will bring how much passive income?
• How much is needed in superannuation to target a $6,000 monthly passive income?

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.

Although the S&P/ASX 200 Index (ASX: XJO) is still pretty close to its August all-time highs, there are still a few well-known blue-chip shares that are offering dividend yields above 4% today. But despite popular dividend shares like Telstra Group Ltd (ASX: TLS), Westpac Banking Corp (ASX: WBC), and Fortescue Ltd (ASX: FMG) offering yields over 4%, they still only pay out two dividends a year.

That might be fine for some investors. But others would very much prefer a more regular payment schedule. After all, our bills and living expenses don’t get invoiced to us every six months. So why not invest in a dividend-paying stock that accommodates more frequent paycheques?

Investors who agree with that sentiment might wish to check out a certain income-focused exchange-traded fund (ETF).

That ETF is none other than the BetaShares S&P Australian Shares High Yield ETF (ASX: HYLD).

How does this ASX income ETF work?

Like most ASX ETFs, HYLD holds a portfolio of underlying investments, which it manages on behalf of its investors. In this case, that portfolio consists of dozens of proven dividend stocks from the ASX. These range from the usual suspects like BHP Group Ltd (ASX: BHP), National Australia Bank Ltd (ASX: NAB), and Telstra, to others like Coles Group Ltd (ASX: COL), Suncorp Group Ltd (ASX: SUN), and Ampol Ltd (ASX: ALD).

You might also recognise Medibank Private Ltd (ASX: MPL), Metcash Ltd (ASX: MTS), and APA Group (ASX: APA).

This income ETF is able to extract and pass on the dividends it receives from these holdings, alongside profits from rebalancing its portfolio, to its own investors as dividend distributions. This it does 12 times a year.

Yes, HYLD is a monthly dividend payer. Additionally, its dividends tend to come not fully franked, but partially franked to a high level. To illustrate, this ETF’s most recent payout, which arrived on 18 August, was franked at 77.84%.

But let’s get to some numbers. HYLD has just passed its twelfth dividend payment (the one we just discussed). That means we can give it a proper trailing yield for the first time. So over the past 12 months, this ASX income ETF has doled out a total of $1.4275 in dividends per unit. At the current (at the time of writing) unit price of $33.50, that 12-month dividend total gives this ASX income ETF a trailing yield of 4.26%.

Given that yield, as well as this ASX income ETF’s monthly payout schedule, this investment might well be worth a look today if dividends are a priority of your ASX investing portfolio.

The post This ASX income ETF yields 4.3% and pays monthly dividends appeared first on The Motley Fool Australia.

More reading

• 3 of the best dividend ASX ETFs right now for passive income
• Why these 2 ASX ETFs could be the best dividend funds for retirees
• How much passive income could I earn from a $600,000 superannuation balance?

Motley Fool contributor Sebastian Bowen 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 Apa Group and Telstra Group. 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.

If you’re ready to retire, or perhaps already have, you may be looking to invest some of your hard-earned superannuation savings to provide an annual passive income stream.

While there are a few ways you could go about this, I believe the best means to achieving an extra $20,000 of passive income a year from superannuation is by investing in quality ASX dividend shares.

We’ll look at two ASX dividend gems below you may wish to buy today.

They both currently pay market beating yields.

And while one has seen a modest share-price retracement over the past year, the other has gained. (Share prices as of 19 August.)

That’s important, because when you’re looking for ASX shares offering higher dividend yields, you’ll often find this is because their share prices have cratered in recent months. Which in turn often means that their future dividend payouts will be coming down as well.

Now before we dive in, do be aware that the yields you generally see quoted are trailing yields. Future passive income payouts may be higher or lower depending on a range of company specific and macroeconomic factors.

With that said…

Two ASX dividend shares for a $20,000 superannuation income stream

Our first ASX dividend gem is Helia Group Ltd (ASX: HLI).

Shares in the S&P/ASX 200 Index (ASX: XJO) lenders mortgage insurance (LMI) provider were recently trading for $5.72. That sees the Helia share price up around 1% over the past year.

As for the passive income on offer from your superannuation investment, Helia paid (or shortly will) two partly franked dividends and a special dividend over the past year, totalling $1.26 per share.

At the recent share price, that sees this ASX 200 dividend stock trading at a partly franked trailing yield (including that special dividend) of 22%.

The second ASX dividend gem I’d invest my superannuation savings in for passive income is Fortescue Ltd (ASX: FMG).

At the recent share price of $18.12, Fortescue shares are down 7.8% in 12 months. But I believe the ASX 200 mining giant can return to capital growth along with paying regular dividends.

Over the last 12 months, Fortescue paid two fully franked dividends totalling $1.22 per share.

At the recent Fortescue share price, that ASX 200 mining stock trades on a fully franked trailing dividend yield of 6.7%.

How much to invest for $20,000 of passive income?

Based on the trailing yields, and assuming you invest an equal amount in both ASX dividend gems, you could expect to see a yield of 14.3%.

To secure a $20,000 annual passive income stream, you’d then need to invest $139,860 of your superannuation savings today.

The post 2 ASX dividend gems I’d buy for a $20,000 superannuation income boost 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.

A $100,000 retirement income is well above what most superannuation benchmarks assume you will actually need.

But it is also the number a lot of Australians aim towards.

So what balance gets you there?

The answer is more encouraging than you might expect, though it does demand some planning.

What the superannuation benchmarks actually say

The Association of Superannuation Funds of Australia publishes the country’s most widely used retirement budgets.

For the March quarter of 2026, its comfortable standard sits at $55,923 a year for a single person and $78,566 for a couple.

The modest standard is much lower, at $36,434 and $52,473 respectively.

ASFA estimates a single homeowner needs a lump sum of $630,000 to fund a comfortable retirement, while a couple needs $730,000.

Those figures assume a 6% investment return alongside some Age Pension support.

A $100,000 income is therefore roughly 80% above the comfortable benchmark for a single retiree.

It also sits well beyond the point where the Age Pension assets test offers any assistance at all.

The maths behind $100,000 a year

Once you retire and convert your balance into an account-based pension, the government sets minimum withdrawal rates.

For anyone aged between 65 and 74, that minimum is 5% of the balance each year.

Running that calculation in reverse gives you the following figures.

A balance of $2 million drawn at 5% produces exactly $100,000 a year.

That is the headline answer.

For a couple the burden is shared, so around $1 million each achieves the same household income.

It is worth remembering that earnings inside a retirement phase pension are generally tax free, and so are the withdrawals for anyone over 60.

A $100,000 pension income is consequently worth a great deal more than a $100,000 salary.

Where the transfer balance cap fits in

There is a ceiling on how much you can move into that tax-free environment.

From 1 July 2026, the general transfer balance cap rose to $2.1 million per person.

This means that at the 5% minimum drawdown rate, a fully used $2.1 million cap generates $105,000 a year.

The system is effectively designed to support roughly this level of income for one retiree.

How much superannuation you would realistically need

The honest answer is around $2 million in superannuation for a single retiree.

A couple targeting the same household income needs a similar amount between them.

That may seem like a daunting figure against the average balance, which sits closer to $308,600 for Australians aged 70 to 74.

Getting there with ASX shares

This is where growth assets do the heavy lifting.

The Vanguard Australian Shares Index ETF (ASX: VAS) is the most popular way Australians own the local market.

It tracks the S&P/ASX 300 Index (ASX: XKO) across more than 300 holdings and charges just 0.07% a year.

Since inception the fund has returned an average of roughly 9.22% annually.

At that rate, $500,000 invested at age 45 would grow to about $2 million by age 61 without a single extra contribution.

Compounding, rather than the size of your contributions, does most of the work.

Foolish takeaway

Retiring on $100,000 a year is achievable, but it takes roughly $2 million and a long runway.

The good news is that superannuation remains one of the most tax-effective structures available to Australian investors.

Start early, keep your fees low, and let the market do the compounding for you.

The difference between a modest retirement and a comfortable one is usually decided decades before you stop working.

The post How much super do you need to retire on $100,000 a year? appeared first on The Motley Fool Australia.

More reading

• How I’d make investing easy with Vanguard ETFs
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• How to turn $10,000 into $100,000 with ASX shares
• Is $2 million really the new superannuation target?
• How much do I need to retire on $100,000 a year at 60?

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.