Tag: Stock pick

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week in a positive fashion. The benchmark index rose 0.8% to 8,682.1 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set for a positive start to the week following a strong session on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 26 points or 0.3% higher. In the United States, the Dow Jones was up 0.5%, the S&P 500 rose 0.75%, and the Nasdaq stormed 1.2% higher.

Oil prices soften

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued start to the week after oil prices fell on Friday night. According to Bloomberg, the WTI crude oil price was down 1.9% to US$91.11 a barrel and the Brent crude oil price was down slightly to US$102.25 a barrel. This appears to have been driven by optimism that the Strait of Hormuz could reopen soon.

Buy Artrya shares 

Artrya Ltd (ASX: AYA) shares could have major upside potential according to analysts at Bell Potter. This morning, the broker has retained its buy rating and $6.00 price target on the AI stock. It said: “AYA has secured its fourth customer for its Salix platform which improves the detection and management of coronary artery disease (CAD). Huntsville Hospital Health System (HH) is a 14-hospital system (and 19 care centres) across Alabama and Tennessee in the US. […] The material rise in the share price illustrates how significant the HH signing is, albeit completing integration of NGHS / Cone, as well as the FFR-CT FDA submission / approval are more significant catalysts at present.”

Gold price drops

It could be a subdued start to the week for ASX 200 gold shares Capricorn Metals Ltd (ASX: CMM) and Northern Star Resources Ltd (ASX: NST) after the gold price dropped on Friday night. According to CNBC, the gold futures price was down 0.95% to US$4,162.3 an ounce. A strong US dollar and elevated Treasury yields weighed on the gold price last week.

Buy NextDC shares

Dolphin Partners has named NextDC Ltd (ASX: NXT) shares as a buy this week according to The Bull. Commenting on its recommendation, it said: “NXT has invested heavily in infrastructure during the past three years. The recent share price decline enables longer term investors to gain entry into a growth stock with structural tailwinds.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

• How much superannuation do I need to earn $56,000 per year in passive income?
• Tech shares shine while ASX 200 plunges to 4-month low
• If I invest $15,000 in Woodside shares, how much passive income will I receive in 2027?
• Top ASX shares to buy in October 2026
• How many Woodside shares do I need to buy for $1,000 per month of passive income?

Motley Fool contributor James Mickleboro has positions in Nextdc and Woodside Energy Group Ltd. 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.

When it comes to your superannuation, it’s important to keep on track of how much you should have stashed away.

How else will you know if you have enough money to retire when the time comes?

Age 50 and age 60 are important milestones. 

Age 50 marks the final 10-15 years before quitting work. At this point, Australians are usually earning around their peak income, and compound growth is in full force.

At 60, you can access your superannuation if you meet the conditions of release.

These two milestones are important because they mark the lifestyle shift between actively building your wealth, to when you can start drawing down on it.

So, how does your super balance compare to other Aussies the same age?

Let’s take a look.

What is the average superannuation balance of Australian men and women aged 50 in Australia?

There aren’t exact figures for the average balance at age 50, but the Association of Superannuation Funds of Australia (ASFA) provides a handy guide.

The average 50-54 year old male in Australia has around $254,071 in their superannuation. 

But age 50 is right at the bottom of that age bracket. So it can help to look at the one below, too.

The average balance for men aged 45-49 is $193,501.

Meanwhile, women aged 50-54 have an average of $190,175 in superannuation. Those aged 45-49 have less, at around $147.146.

What is the average superannuation balance for 60-year-old men and women?

Again, there aren’t exact figures for the average balance at age 60, but ASFA has some ranges to keep in mind.

The data shows that the average Australian male aged 60 to 64 has around $395,852 in their superannuation.

Looking at the bracket below, ASFA’s data shows that the average superannuation balance for Australian men aged 55-59 is $319,743.

Once again, women the same age have less.

The average balance for Australian women aged 60 to 64 is around $313,360. That’s a huge gap of around $83,000 compared to men the same age.

For the age bracket below, the gap is a little lower. Women aged 55-59 have around $242,945 saved in their superannuation for retirement.

How does your super balance compare with that of men or women your age?

Is it possible to retire comfortably off these average balances?

Unfortunately not.

ASFA calculates that a comfortable retirement will cost single Australians $56,166 per year and couples closer to $78,998 per year.

To fund that, individuals need at least $630,000 saved in their super, and couples need at least $730,000 combined.

These figures also assume you’ll start your retirement at age 67. It also assumes that you’ll receive a part Age Pension around this time and that you own your home outright.

That’s significantly less than the average balances of Australians across all the age brackets mentioned above. 

To reach these figures, all individuals need a superannuation balance of $254,500 at age 50. This increases to $457,500 by the time you reach age 60.

The post The average superannuation balance at ages 50 and 60. How does yours compare? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• PLS vs BHP: Which ASX 200 mining stock looks better today?
• By October 2027, $5,000 invested in this ASX bank stock could turn into…
• Droneshield vs Zip Co: Which tech share is the better ASX growth pick?
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

PLS vs BHP shares: Which ASX 200 mining stock is the better buy?

When you think Australian mining, two names jump to mind: PLS Group Ltd (ASX: PLS) and BHP Group Ltd (ASX: BHP). Both find themselves among the ASX 200’s go-to stocks for anyone keen on Aussie resources exposure, whether it’s booming lithium demand or diversified mining muscle. But with different focuses—PLS charging hard on the lithium front and BHP spanning iron ore, copper, and more—the comparison isn’t apples for apples. If you’re torn between PLS and BHP shares, let’s break down the case for each and see which one might be the better buy right now.

The case for PLS

PLS Group, previously known as Pilbara Minerals, has carved out a spot at the centre of the global lithium story. Its flagship project, the Pilgangoora Lithium-Tantalum Project in Western Australia, is among the world’s largest hard-rock lithium-tantalum deposits. The company also expanded overseas, adding the Colina lithium project in Brazil via an acquisition in 2025. PLS moved from exploration to production remarkably fast and keeps building its international sales channels as electric vehicle demand surges.

From the fundamentals, a few points stand out:

• Market cap: $11.77 billion—a sizeable player in its space but dwarfed by BHP’s heft.
• P/E ratio: 23.92, suggesting investors are paying up for the growth and excitement around lithium, even as the broader market cools on battery metals this year.
• Dividend yield: 1.3% (fully franked), offering returns, but modest compared to mature resource companies.

EPS sits at $0.161, with a dividend per share of $0.05, and 100% franking for Australian investors. Year to date, its shares are down 7.4%, showing how exposed PLS remains to commodity cycles and market sentiment.

The case for BHP

BHP Group is mining royalty—one of the world’s largest diversified mining giants with a vast portfolio that includes iron ore, copper, coal, and nickel. Since unifying its corporate structure in 2022, BHP’s focus has stayed on stable cash flows from its gigantic operations spanning Australia and overseas. With one of the deepest track records on the ASX, BHP is often viewed as a defensive core holding for income and scale.

Notable fundamentals include:

• Market cap: $306.37 billion—massively larger than PLS, reflecting global reach, asset variety, and institutional confidence.
• P/E ratio: 22.09, actually a touch lower than PLS’s (despite the size difference), highlighting steady profits and mature business appeal.
• Dividend yield: 3.98% (fully franked), making BHP an income hunter’s favourite among resource stocks.

EPS sits at $1.932, with dividends per share at $2.42, a hefty payout. Year to date, BHP shares have soared 39.0%, outstripping many on the ASX and dwarfing PLS’s recent performance.

Valuation comparison

Comparing key valuation metrics side by side:

	PLS	BHP
Market Cap	$11.77 billion	$306.37 billion
P/E Ratio	23.92	22.09
Dividend Yield	1.30% (100% franked)	3.98% (100% franked)
EPS	$0.161	$1.932
Dividend per share	$0.05	$2.42

Both companies’ earnings are fully franked—a plus for Australian dividend seekers. Interestingly, PLS’s P/E multiple is a touch above BHP’s, which might look surprising given BHP’s mature, stable cash flows. However, that premium suggests the market is betting on stronger growth for PLS versus more “steady as she goes” from BHP.

Recent share price momentum

Comparing recent share price performance up to 1 October 2026:

• PLS Group Ltd closed at $3.65, having dropped 5.4% on the day. Year to date, PLS is down 7.4%.
• BHP Group Ltd closed at $60.26, declining 0.9% on the day, but its year to date gain is an impressive 39.0%.

Both stocks have seen volatility, but BHP’s share price has gained serious momentum in 2026, while PLS has had a tougher year.

Which is the better buy?

If I had to pick one ASX 200 mining stock right now, my vote would go to BHP. The numbers just stack up better at the moment—BHP offers a much higher, fully franked dividend yield (3.98% versus 1.3%), which is a big plus with interest rates still high and investors returning to income stocks. BHP’s year to date share price run (+39.0%) also tells me the market is rewarding its scale and steady cash generation, especially compared to PLS Group’s negative year to date return.

PLS is exciting, no doubt, and will ride every updraft in lithium demand—the P/E premium reflects that optimism. But for income, stability, and sheer momentum, I think BHP is the clearer buy in this head-to-head. If I were seeking higher risk and growth, I might take a deeper look at PLS. But today, BHP’s fundamentals, dividend payout, and recent performance make it my pick of these two ASX mining heavyweights.

The post PLS vs BHP: Which ASX 200 mining stock looks better today? appeared first on The Motley Fool Australia.

More reading

• How much superannuation do I need to earn $56,000 per year in passive income?
• BHP vs Codan: Which ASX 200 share is the stronger buy today?
• PLS Group vs Mineral Resources: ASX mining shares compared
• Regis Resources vs Fortescue: Which ASX miner is the better buy?
• Commonwealth Bank vs BHP: Which ASX blue chip is the better buy in October?

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 BHP 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 draft. 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 bank stocks have been in the spotlight over the past month as rising inflation, higher interest rates, and a cooling property market raise concerns about how the banks could perform over the long run.

The experts are pretty reserved about the outlook for the big four major banks, and most mid-tier ones too. Most are expected to fall lower over the next 12 months as macroeconomic pressures increase.

But there is one ASX bank stock with a very rosy outlook ahead.

Judo Capital Holdings Ltd (ASX: JDO) works differently to its peers. Unlike many other banks in the sector, Judo Bank was built to provide financial services and lending to small and medium enterprises (SMEs). These SMEs have annual turnovers of up to $100 million.

The bank was founded in 2016 and received its banking license in 2019. That means it’s relatively new in comparison to the majors. It was listed on the ASX in 2021.

The bank provides business lending starting at $250,000 and touts itself as providing more flexibility than major banks. It also offers personal term deposit products and home loans.

What’s the latest out of Judo Bank shares?

At the time of writing, the ASX bank stock is trading at 90 cents a piece. That’s around 50% lower for the year to date and 49% lower than this time last year.

The shares suffered a crash of around 40% within one day of trading in late June. This happened after the bank downgraded its profit guidance for FY26. The move left investors questioning the bank’s near-term outlook.

But the final result in August seemed to be a little better than expected. Judo Bank announced strong gains across the board. NPAT increased 29% to $111.1 million, and profit before tax increased 34% to $168.1 million. This was at the top end of Judo’s revised guidance range.

Investors rushed to the stock, and the share spiked by around 16% following the announcement. But then a slump in overall sentiment for bank shares and profit-taking investors has seen those gains reversed over the past seven weeks.

What do brokers tip next for the ASX bank stock?

It looks like the sell-off was way overdone, and the shares are now trading well below fair value.

Brokers are very bullish on the outlook for Judo Bank shares, with the majority holding a strong buy rating, according to Market Index data. The average $1.38 target price currently implies around a 52% potential upside over the next 12 months, at the time of writing.

TradingView data shows something similar. Again, the majority (12 out of 14) have a buy/strong buy rating. The $1.485 average target price implies an upside of around 64%, at the time of writing.

But some think the shares could jump another 86% to $1.68 each over the next 12 months.

Morgans has a buy rating and $1.42 target price on the bank shares.

The broker said Judo’s results were towards the top end of the revised guidance range, and FY27 guidance was reaffirmed, offering strong earnings growth. But it thinks that by the end of this decade, Judo Bank shares could be worth close to $2 per share. 

The bank is higher risk and more cyclically exposed than the major banks, but investors are compensated by higher potential returns at current prices. 

Elsewhere, the team at Macquarie said the question is whether the bank can strike the right balance between margins, growth, and credit quality to achieve returns at scale. Macquarie has a price target of $1.65 on Judo shares.

So, if I invest $5,000 into Judo Bank shares today, what could it be worth by this time next year?

Assuming Judo Bank shares reach the average forecast target price of $1.38 to $1.48 within the next 12 months, a $5,000 investment today could be worth $7,600 to $8,200 by October 2027.

And if the more bullish experts are correct. The same $5,000 investment could climb even higher, up to $9,300, by this time next year.

The post By October 2027, $5,000 invested in this ASX bank stock could turn into… appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Brokers tip these 3 ASX shares to climb between 50% and 122% in the next 12 months
• Top 3 ASX 200 shares now below their 200-day moving average
• Top 3 ASX shares I’d buy after the most recent sell-off
• Brokers rate these 5 ASX shares as a strong buy, and tip upsides of 28% to 62%

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Droneshield vs Zip shares: Which ASX tech stock is better for growth investors?

Trying to choose between Droneshield Ltd (ASX: DRO) and Zip Co Ltd (ASX: ZIP) for your next growth-focused investment? Both are prominent names in Australia’s tech scene, but they offer very different business models and risk profiles. Droneshield is making waves with its counter-drone technology, while Zip is a key player in digital buy-now, pay-later finance. Here’s how they stack up for those seeking the next big thing.

The case for Droneshield

Droneshield is an Australian innovator focused on artificial-intelligence-powered solutions that detect and counter drones—a growing global threat for governments, defence forces, airports, and commercial venues. Its product suite features DroneGun Tactical, RfPatrol, and DroneSentry, among others. These technologies are already in use protecting infrastructure and assets in Australia, the US, and the UK.

Looking at Droneshield’s fundamentals:

• It has a market cap of $1.57 billion, promising for a company outside the mainstream ASX 100.
• The P/E ratio is reported at an eye-watering 433.75, and earnings per share are negative at -0.033, indicating the business is still burning through cash as it scales up. Note: Droneshield’s reported P/E ratio may be based on a different earnings measure (e.g. underlying or forward earnings) than the EPS figure shown, which is why they may appear inconsistent.
• Year-to-date, its share price is down 47.6% — a stark reminder of the volatility that comes with early-stage growth stocks.

Droneshield pays no dividend, opting instead to reinvest in its technology and growth pipeline.

The case for Zip

Zip is an established fintech best known for its Zip Pay and Zip Money platforms. The company offers interest-free buy-now, pay-later services across 12 countries, including major operations in Australia, New Zealand, and the US. Zip Co is a pioneer in delivering digital tools that help consumers split and manage payments, challenging traditional credit providers and tapping into a rapidly shifting payments landscape.

A glance at Zip Co’s metrics:

• It boasts a larger market cap at $2.53 billion, putting it among the more notable fintechs on the ASX.
• The P/E ratio sits at 22.30—a far more conventional number compared to Droneshield, with positive earnings per share of 0.091. This suggests Zip has moved past the loss-making start-up phase and into sustainable profitability.
• Like Droneshield, Zip doesn’t pay a dividend, choosing growth over income for now. Its YTD return is -38.6%, still deeply negative but slightly better than Droneshield’s.

Valuation comparison

Metric	Droneshield	Zip
Market Cap	$1.57 billion	$2.53 billion
P/E Ratio	433.75	22.30
Earnings per Share (EPS)	-0.033	0.091
Dividend Yield	0.00%	0.00%
YTD Return	-47.6%	-38.6%

Note: Droneshield’s negative EPS and its reported P/E ratio appear inconsistent, likely due to different calculation bases (forward/underlying earnings). For both, dividend yields sit at zero—a standard feature of high-growth tech names investing for the future.

Recent share price momentum

Comparing recent share price perfomance up to 30 September 2026:

• Droneshield closed at $1.70, up 4.95% on the day. Its price action across September has been volatile, but the late-month rally could hint at fresh investor interest or news flow.
• Zip finished at $2.03 on the same date, up just 0.5% for the session. Zip’s September showed a mix of sharp down days and small gains, reflecting ongoing uncertainty but also a willingness for traders to buy the dips.
• Both remain well below their January levels, with Droneshield lagging more sharply YTD.

Which is the better buy?

For growth investors, I’d lean toward Zip right now, even with its own sizeable share price slump. Zip has reached profitability, giving it a lower and more grounded P/E ratio, and offers greater operational scale as seen in its higher market cap and international reach. While Droneshield is an exciting play in the defence tech space, it remains loss-making and considerably more volatile—its negative EPS and extremely high P/E imply a lot of hope is baked in, but earnings haven’t caught up yet.

If you’re comfortable with risk and want “moonshot” potential, Droneshield could be your ticket—a single contract or regulatory change could turbocharge its prospects. But for most growth-focused portfolios, I think Zip offers the better balance of proven scalability and upside at today’s prices. Of course, neither is for the faint-hearted, and sharp reversals are always possible.

The post Droneshield vs Zip Co: Which tech share is the better ASX growth pick? appeared first on The Motley Fool Australia.

More reading

• Zip vs Megaport: Which ASX tech share is the better buy?
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Should I buy DroneShield shares after its big US news?
• 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 positions in and has recommended DroneShield. 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 draft. 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.

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:

Megaport Ltd (ASX: MP1)

According to a note out of Bell Potter, its analysts have initiated coverage on this cloud infrastructure provider’s shares with a buy rating and $27.00 price target. Bell Potter believes Megaport is exceptionally well-placed for growth over the coming years thanks to strategic contracts which are being rolled out this year. In fact, the broker believes that underlying EBITDA will grow from $77 million in FY 2026 to $329 million in FY 27 and then $726m in FY 2028. Importantly, it notes that all the capex required for the roll out of the strategic contracts is fully funded. Bell Potter also highlights that Megaport is trading on an FY 2028 EV/EBITDA multiple of around 7x, while the median multiple of the domestic comps is around 15x and international comps is around 11x (based on 2027 forecasts). The Megaport share price ended the week at $22.34.

Navigator Global Investments Ltd (ASX: NGI)

A note out of Morgans reveals that its analysts have retained their buy rating and $3.04 price target on this global investments company’s shares. The broker notes that Navigator Global has agreed to sell a stake in Invictus Capital Partners to New York Life Investment Management. It points out that the sale crystallises a premium of up to ~8% to cost on the initial 12.7% stake, while the company keeps its carry and future upside through a residual 8.3% stake. The good news is management believes the retained stake could be worth meaningfully more, on a pro-rata basis, when it is transferred in 2031, helped by the New York Life Investment Management partnership. In Morgans’ view, the sale shows the optionality and embedded value in its portfolio. The Navigator Global share price was fetching $2.30 at Friday’s close.

Netwealth Group Ltd (ASX: NWL)

Another note out of Bell Potter reveals that its analysts have retained their buy rating on this investment platform provider’s shares with a reduced price target of $25.00. The broker has updated its model to reflect equity market movements and commentary on net flow expectations. Bell Potter believes that consensus forecasts are too high. It notes that they imply that net inflows would be run rating at the upper end of the $18 billion to $20 billion guidance range during the final six weeks of the first quarter despite equity markets weakening. Nevertheless, the broker remains positive and sees value in its shares at current levels. As a result, it thinks investors should be buying the dip. The Netwealth share price ended the week at $17.21.

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

More reading

• Tech shares shine while ASX 200 plunges to 4-month low
• Top ASX shares to buy in October 2026
• 3 ASX 200 shares I would buy and hold for 10 years
• Zip vs Megaport: Which ASX tech share is the better buy?
• Here are the top 10 ASX 200 shares today

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

The Association of Superannuation Funds of Australia (ASFA) calculates that a comfortable retirement will cost single Australians approximately $56,166 per year.

To fund that, the association assumes that a single retiree will need a superannuation balance of at least $630,000.

That’s the minimum amount you’ll need to have stashed away to be able to afford the retirement lifestyle you want.

But what if you didn’t live off your superannuation balance at all?

Instead of steadily drawing down on your superannuation capital to cover retirement lifestyle expenses, what if you could earn enough passive income to cover your living expenses?

This would let your superannuation balance keep compounding. Instead, you’d live solely off the income it generated.

It’s very possible.

Here’s how it could work.

How much superannuation do I need to generate $56,000 per year in passive income?

The calculation is relatively straightforward. You’ll need to divide your annual passive income by the overall dividend yield of your investment portfolio.

The tricky part is that the answer varies depending on what that dividend yield is.

Generally, as the dividend yield of your portfolio increases, the superannuation balance you need to earn the same passive income goes down.

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

How much do I need if my portfolio yields, 4% to 6%?

If your overall portfolio has a dividend yield of 4%, you’ll need a superannuation balance of around $1.4 million. That’s because $56,000 ÷ 4% = $1.4 million.

If your portfolio yield is a little higher, at around 5%, your balance will need to be closer to $1.12 million to earn the same amount.

Raise that to 6% and you’ll need around $934,000 to earn $56,000 per year in passive income.

Remember that not every ASX share in your portfolio needs to yield the same amount. What matters is the overall dividend yield of your portfolio.

Ideally, you want to buy shares with various yields to hedge against volatility and protect your portfolio from fluctuating prices.

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

What ASX shares pay a dividend yield between 4% and 6%?

Several options are available at this level, but here are my top picks.

Large blue-chip companies like BHP Group Ltd (ASX: BHP), National Australia Bank Ltd (ASX: NAB) and Woodside Energy Group Ltd (ASX: WDS) pay around the 4-6% level.

Elsewhere, defensive shares like Telstra Group Ltd (ASX: TLS), Origin Energy Ltd (ASX: ORG), AGL Energy Ltd (ASX: AGL), or Amcor PLC (ASX: AMC) are another solid choice for income-seeking investors. These picks could be particularly advantageous in the current environment, marked by rising inflation and heightened volatility.

The post How much superannuation do I need to earn $56,000 per year in passive income? appeared first on The Motley Fool Australia.

More reading

• If I invest $15,000 in Woodside shares, how much passive income will I receive in 2027?
• BHP vs Codan: Which ASX 200 share is the stronger buy today?
• How many Woodside shares do I need to buy for $1,000 per month of passive income?
• Fortescue vs National Australia Bank: Which ASX blue chip is the better buy this month?
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Samantha Menzies has positions in BHP Group. 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 Amcor Plc 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.

S&P/ASX 200 Index (ASX: XJO) tech shares led the 11 market sectors with an impressive 7.34% increase last week.

Meanwhile, the benchmark index edged 0.2% higher to close at 8,682.1 points on Friday.

ASX 200 tech shares were the surprise performer during a topsy-turvy week for the local bourse.

Tech shares are recovering from a 48% drop between 29 August 2025 and 30 March due to fears over artificial intelligence (AI).

Since then, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has rallied 15% versus a 3% lift for the benchmark.

A changing of the guard helped push the tech sector higher amid turbulent trading on the ASX 200.

Communications and metals detection designer and manufacturer Codan Ltd (ASX: CDA) overtook logistics software provider WiseTech Global Ltd (ASX: WTC) as the sector’s largest company by market capitalisation after a trading update last week.

Meanwhile, the ASX 200 had its worst one-day fall in six months on Thursday amid concerns over rising interest rates and bond yields trading at close to multi-decade highs.

The Reserve Bank of Australia raised the official cash rate by 0.25% to 4.6% on Tuesday.

Meanwhile, the 10-year US Treasury bond yield was 5.24% and Australia’s was 5.33% on Friday.

Six of the 11 ASX 200 market sectors finished in the green last week.

Let’s review.

ASX 200 tech shares led the market sectors last week

Let’s take a look at how the biggest ASX 200 tech shares by market cap performed last week.

The Codan share price soared 29.09% to close at $67.45 on Friday after a trading update.

Codan’s market valuation is now $12.3 billion.

The WiseTech share price ascended 6.7% to close at $33.43 with a valuation of $10.5 billion.

TechnologyOne Ltd (ASX: TNE) shares rose 4.2% to $30.52 apiece.

The Xero Ltd (ASX: XRO) share price edged 0.85% higher to $57.85.

The Nextdc Ltd (ASX: NXT) share price fell 4.19% to $10.74.

Megaport Ltd (ASX: MP1) shares soared 13.86% to $22.34 on news of $1 billion in new AI infrastructure contracts.

The Life360 Inc (ASX: 360) share price rose 5.59% to $20.40.

The Dicker Data Ltd (ASX: DDR) share price lifted 2.67% to $15.40 apiece.

The Data#3 Ltd (ASX: DTL) share price soared 22.61% to $13.61 on the back of a trading update.

The Bravura Solutions Ltd (ASX: BVS) share price rose 0.96% to $3.15.

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
Information Technology (ASX: XIJ)	7.34%
Consumer Discretionary (ASX: XDJ)	2.64%
Communication (ASX: XTJ)	1.81%
Utilities (ASX: XUJ)	0.64%
Industrials (ASX: XNJ)	0.47%
Financials (ASX: XFJ)	0.15%
A-REIT (ASX: XPJ)	(0.19%)
Consumer Staples (ASX: XSJ)	(0.2%)
Materials (ASX: XMJ)	(0.45%)
Energy (ASX: XEJ)	(1%)
Healthcare (ASX: XHJ)	(1.21%)

The post Tech shares shine while ASX 200 plunges to 4-month low appeared first on The Motley Fool Australia.

More reading

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• 3 ASX 200 shares I would buy and hold for 10 years
• Zip vs Megaport: Which ASX tech share is the better buy?
• Here are the top 10 ASX 200 shares today

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 Bravura Solutions, Life360, Megaport, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Dicker Data, Life360, WiseTech Global, and Xero. The Motley Fool Australia has recommended Data#3. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Insurance Australia Group vs Coles Group shares: which is better for income investors?

Investors looking for reliable income from their ASX portfolios might have their eyes on Insurance Australia Group Ltd (ASX: IAG) and Coles Group Ltd (ASX: COL). Both are heavyweights in their respective sectors and regular dividend payers, but offer very different business models, dividend profiles, and outlooks. Here’s my take on how these two stack up for income-focused investors.

The case for Insurance Australia Group

Insurance Australia Group is the leading general insurer in Australia and New Zealand, underwriting a wide range of policies—including motor vehicle and home insurance—for individuals and businesses. With top brands under its umbrella and a sizeable presence across both countries, IAG is a go-to name for everyday insurance needs.

The key fundamentals from the latest snapshot are:

• Dividend yield of 4.02%, ahead of Coles
• A P/E ratio of 18.59, which is well below Coles’ figure
• Market cap of $18.57 billion, making it a substantial player but smaller than Coles
• Earnings per share shown as -0.901, which doesn’t line up with the positive P/E (more on that in a moment)

When it comes to dividends, IAG’s payout has fluctuated over recent years. IAG’s businesses have long underwritten substantial premium volumes, but recent dividends have come with lower franking levels—only 25% for the most recent payment. Franking levels have shifted over time, often below full 100% franking in recent years, which could impact after-tax returns for those relying on franking credits.

The case for Coles

Coles is one of Australia’s leading supermarket and retail operators, serving millions of Aussies with groceries, liquor, and everyday essentials through its national store network and growing digital footprint. Coles is seen as a defensive, staples-oriented business, benefiting from the ongoing need for food and essentials regardless of the economic cycle.

Highlight fundamentals for Coles include:

• Dividend yield of 3.35%, slightly lower than IAG’s but very consistent
• A notably higher P/E ratio of 28.71
• Market cap of $31.40 billion—substantially larger than IAG, reflecting its consumer-facing scale and lower perceived risk
• Strong reported earnings per share of 0.812
• Full 100% franking on its dividends, boosting the loyalty of income investors who value franking credits

Coles has a solid record of regular, fully franked dividends, with recent payments showing both frequency and predictability. According to its most recent public description, Coles offers a comprehensive store network and has continued to innovate with its online shopping and loyalty programs, helping underpin its resilient earnings and reliable payouts.

Valuation comparison

There are a few clear divergences between IAG and Coles in terms of valuation and dividend attractiveness. Here’s how they compare on core metrics:

Metric	Insurance Australia Group	Coles Group
Market Cap	$18.57 billion	$31.40 billion
P/E Ratio	18.59	28.71
Dividend Yield	4.02%	3.35%
Dividend per Share	$0.32	$0.74
Franking	25%	100%
Earnings per Share	-0.901	0.812

Note: IAG’s reported P/E ratio appears inconsistent with its negative EPS figure. This may be because the P/E is based on normalised or forecast earnings, rather than the statutory EPS shown above.

The main takeaway here for income investors is that IAG offers a higher dividend yield, but with lower franking and some inconsistency in earnings figures. Coles provides lower yield, but its dividends are fully franked and supported by positive reported earnings.

Recent share price performance

Comparing recent share price activity as of 30 September 2026:

• Insurance Australia Group: Closed at $7.94 as of 30 September 2026, slightly down -0.25% on the day. Its year-to-date (YTD) return is 3.8%.
• Coles Group: Closed at $23.36 as of 30 September 2026, up 0.21% on the day. Its YTD return stands at 12.4%.

Coles has outperformed IAG in recent months, delivering a much higher YTD return for shareholders.

Which is the better buy?

For income investors—with one eye on yield and the other on dividend predictability—my pick would be Coles Group over Insurance Australia Group.

Coles delivers fully franked dividends, which can boost after-tax returns for many Aussies, especially those investing via super funds or directly. While IAG’s yield is a touch higher on headline numbers, its payouts carry much lower franking, reducing their appeal for income seekers chasing franked income. There’s also some concern on the consistency front: IAG’s negative EPS versus a stated positive P/E ratio makes me pause, as it might flag earnings volatility or reliance on one-off adjustments.

Coles’ more expensive P/E might make value hunters wary, but as an income investor, I think the reliability, fully franked dividends, and solid recent performance tip the scales. You may give up a fraction of yield, but in exchange you get consistency, reliability, and maximum franking credits. That’s why, if I had to pick just one for an income-focused portfolio, my vote would go to Coles Group.

The post Insurance Australia Group vs Coles: Which ASX dividend comes out on top? appeared first on The Motley Fool Australia.

More reading

• Why I’d buy CBA and Coles shares in October
• BHP vs Coles: Which ASX share is better for passive income?
• How much is needed in superannuation to target a $10,000 monthly passive income?
• Here are the top 10 ASX 200 shares today
• Investors get defensive as ASX 200 drifts to a 15-week low

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 draft. 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.

Woodside Energy Group Ltd (ASX: WDS) shares can be a great source of passive income in the year ahead.

The company is seeing higher earnings due to stronger energy prices, which can lead to larger distributions.

Woodside has operations across the world, with projects in Australia, Africa and North America.

Let’s take a look at what the business is projected to deliver in passive income in the coming year.

2027 financial year projection

The company’s payout depends heavily on energy prices, which is why it has fluctuated so much over the years. Production costs usually don’t change much in the short term, so a rise in revenue can largely boost net profit too.

But the opposite can also be true. When energy prices and revenue decline, net profit can drop significantly, likely reducing passive income for owners of Woodside shares, too.

The FY26 half-year result showed what the company is capable of when energy prices rise.

Operating revenue grew 13% to US$7.4 billion, underlying net profit after tax (NPAT) rose 7% to US$1.3 billion and free cash flow soared 159% to US$352 million. The financial improvement was helped by a 20% rise in the average realised price to US$74 per barrel of oil equivalent (BOE).

As the company noted, total production volume fell only 13% to 86.5 million barrels of oil equivalent (MMboe), while production costs rose 12% to US$749 million. I think those figures explain why the financials didn’t grow even more during the first six months to June 2026.

There was an improvement in net profit, which allowed the company to hike its interim dividend per share by 8% to US 57 cents in its HY26 result. But I’m going to look at the 2027 financial year prediction by analysts.

Based on the projection on CMC Invest, Woodside could pay an annual dividend per share of $1.94, which translates into a potential grossed-up dividend yield of 8.7%, including franking credits, at the time of writing.

What passive income would a $15,000 investment in Woodside shares create?

If an investor wanted to put $15,000 into Woodside shares, they would be able to buy 470 Woodside shares, at the time of writing.

With that investment and the projection for FY27, an investor could receive $911.8 of dividend cash and $1,302.6 of overall dividend income, including the franking credits.

Should investors actually do that? According to CMC Invest, analysts have issued 10 ratings on the business in the last three months: two buys, seven holds, and one sell.

The average price target of those 10 analyst ratings was $32.11, implying little positive movement (at the time of writing) over the next year. Therefore, it appears fully valued and it could be better to look at other ASX share opportunities today.

The post If I invest $15,000 in Woodside shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

More reading

• How many Woodside shares do I need to buy for $1,000 per month of passive income?
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• 5 things to watch on the ASX 200 on Thursday
• Expert names Woodside and CSL shares as top buys today
• Woodside Energy vs Ampol: Which ASX oil stock looks better this week?

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.