Tag: Stock pick

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?
• 5 things to watch on the ASX 200 on Friday
• 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.

BHP vs Codan shares: Which strong performer is the better buy today?

When two ASX 200 shares have both delivered impressive returns lately, it can be tough to choose between them. BHP Group Ltd (ASX: BHP) and Codan Ltd (ASX: CDA) are both strong performers in 2026, but offer totally different business profiles for Aussie investors. Today, I’m comparing BHP vs Codan shares to see which stands out better right now, looking at their fundamentals, dividend potential, momentum, and more.

The case for BHP

BHP Group is a global resources titan, mining everything from iron ore to copper and nickel. It’s one of the largest companies on the ASX. BHP is also famous for its fully franked dividends and its ability to ride the boom-bust cycles of global commodities. According to its most recent public description, the business consolidated its listing recently and operates worldwide.

BHP’s standout fundamentals:

• Market cap: $306.37 billion – BHP dwarfs most other ASX names, highlighting its defensive size and industry standing.
• Dividend yield: 3.98%, fully franked – reliable income, with 100% franking making it especially attractive for many Aussie investors.
• YTD return: 39.0% – a big jump for a miner of this size, showing investors’ confidence in the current commodity cycle.

BHP’s dividend track record is impressive, regularly rewarding shareholders with fully franked income and the occasional special dividend. However, the miner’s profits and share price can swing sharply depending on iron ore and metals prices.

The case for Codan

Codan is an Australian electronics designer and manufacturer, specialising in communications, metal detection, and mining technology. Its products find customers across government, military, and commercial sectors globally, with particular strength in North America. According to its company profile, Codan has a diversified international footprint with manufacturing in Australia and Malaysia, and support operations spanning several countries.

Codan’s most interesting fundamentals:

• Market cap: $12.00 billion – that’s small compared to BHP, but not for a tech-focused midcap.
• P/E ratio: 67.18 – suggests investors are paying up for perceived growth, but this is high even for tech stocks.
• YTD return: 128.3% – a stunning run, more than tripling BHP’s YTD gain in 2026.

Codan pays fully franked dividends, though at a much lower running yield than BHP (0.75%). Its growth profile and global market presence stand out, but income seekers may shrug at the low dividend yield.

Valuation comparison

BHP and Codan sit in different sectors, so direct valuation comparisons need context. That said, there are some stark differences:

Metric	BHP	Codan
Market Cap	$306.37 billion	$12.00 billion
P/E Ratio	22.09	67.18
Dividend Yield	3.98% (100% franked)	0.75% (100% franked)
Earnings Per Share	1.932	0.959
Dividend Per Share	2.42	0.49

Note: Codan’s P/E ratio is unusually high – even for a growth stock – while BHP’s valuation is more moderate for a major miner. Dividend hunters will see a clear win for BHP on current yield.

Recent share price momentum

Comparing recent share price performance up to 30 September 2026:

• BHP Group: closed at $60.82, up 39.0% YTD. The last week saw BHP stay fairly steady, with mild day-to-day moves, and no big volatility spikes.
• Codan: closed at $65.83, up a massive 128.3% YTD. Notably, Codan gained 23.9% in a single day (29 September), showing some serious momentum – but with that often comes higher risk and price swings.

Which is the better buy?

Looking at BHP vs Codan shares, I’m genuinely impressed by both. BHP brings scale, reliability, fully franked income and a more accessible P/E ratio in a highly cyclical sector. Codan, meanwhile, is a clear market darling among growth hunters after more than doubling in 2026 and boasting a diversified, global high-tech business.

But, at current prices, my pick would be BHP. Here’s why: Codan’s massive P/E and wafer-thin dividend make me nervous about how much good news is already factored in. While Codan could continue to outperform if it delivers on growth, that sort of valuation demands everything (and more) goes right.

BHP isn’t cheap compared to its own history, but pays close to four percent yield, fully franked, on a much larger and more resilient resource base. For my money, the combo of income, scale, and a reasonable P/E makes BHP the more balanced opportunity between these two strong performers today.

The post BHP vs Codan: Which ASX 200 share is the stronger buy today? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: CBA, Capstone Copper, Codan shares
• Here are the top 10 ASX 200 shares today
• Regis Resources vs Fortescue: Which ASX miner is the better buy?
• Which were the best-performing ASX 200 shares in September?
• Codan vs Xero: Which ASX tech stock 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.

Wesfarmers vs Woolworths shares: Which dividend stock is better today?

When it comes to blue-chip dividend shares on the ASX, Wesfarmers Ltd (ASX: WES) and Woolworths Group Ltd (ASX: WOW) are two names I hear mentioned time and again. Both are household names, both deliver franked dividends, and both have substantial histories as Australian retail powerhouses. If you’re trying to decide between the two, you’re not alone—so let’s take a closer look at where their shares stand today.

The case for Wesfarmers

Wesfarmers is one of Australia’s largest diversified conglomerates. With origins back in 1914 as a Western Australian farmers’ cooperative, today it’s home to familiar brands like Bunnings, Kmart, Officeworks, Priceline, and a growing health and wellbeing business after buying Australian Pharmaceutical Industries. This breadth means Wesfarmers is exposed to multiple sectors—from consumer retail to chemicals, energy and fertilisers—making it less reliant on any one division.

A few points leap out in the fundamentals:

• Market Cap: $86.93 billion, making it one of the country’s biggest listed companies
• Dividend Yield: 2.99%, fully franked at 100%
• P/E Ratio: 29.34

Wesfarmers’ dividend has been not only consistent but also fully franked, and the last payout (final and interim for FY26) totals $2.22 per share. According to its most recent public description, Wesfarmers is continuing to invest and broaden its portfolio.

The case for Woolworths

Woolworths Group is the dominant supermarket retailer across Australia and New Zealand. If you’ve set foot in a Woolies or Big W store lately, you’ve experienced just a slice of its immense retail presence. With its core focus on groceries and everyday needs, Woolworths is often seen as a “defensive” stock, aiming for stability even during tougher economic times. It divested its drinks and hospitality business in 2021, sharpening its focus on supermarkets and general merchandise.

Key fundamentals include:

• Market Cap: $47.89 billion
• Dividend Yield: 2.49%, also fully franked at 100%
• P/E Ratio: 42.04

Woolworths’ most recent declared dividends (final and interim for FY26) total $0.97 per share. In its company profile, Woolworths highlights its large store network and massive workforce supporting steady cashflows from groceries and essentials.

Valuation comparison

Let’s put some of the main valuation and return metrics side by side:

Metric	Wesfarmers	Woolworths
Market Cap	$86.93b	$47.89b
P/E Ratio	29.34	42.04
Dividend Yield	2.99%	2.49%
Dividend per Share	$2.22	$0.97
Franking	100%	100%
EPS	2.534	0.925
YTD Return	-5.6%	35.7%

It’s notable that Wesfarmers trades on a much lower P/E ratio than Woolworths—29.34 compared to 42.04—even though both are in sectors that typically attract market premiums. Wesfarmers’ full-year dividend is also higher in absolute terms and yield, with both companies offering the stability of full franking.

Note: While both companies’ P/E and EPS are presented side by side, keep in mind sector differences—Wesfarmers’ more diversified earnings base vs Woolworths’ retail focus—may affect how much weight I’d give to a headline multiple.

Recent share price performance

Comparing recent share price activity up to 30 September 2026:

• Wesfarmers closed at $76.61, up 3.0% on the day, but has returned -5.6% YTD
• Woolworths finished at $39.20, up 0.8% on the day, with a very strong YTD return of 35.7%

That’s a huge divergence over 2026 so far—Woolworths has enjoyed a stellar run, while Wesfarmers has pulled back.

Which is the better buy?

Balancing strong dividend credentials with business quality and recent momentum, my pick today would be Wesfarmers. Here’s why: The absolute dividend yield is higher, the payout is fully franked, and Wesfarmers’ diversified portfolio is built to weather different macro conditions—not just those that support grocers. While Woolworths has shot the lights out with a 35.7% return this year, its P/E ratio is substantially higher, suggesting markets may already be pricing in a lot of optimism. I see more sustainable value and income potential in Wesfarmers at these levels, especially for those who care about fully franked dividends and a lower entry multiple. For income investors, Wesfarmers ticks more boxes for me. Woolworths is certainly quality, but at 42 times earnings, I’d rather wait for a better entry point there.

The post Wesfarmers vs Woolworths: Which ASX dividend share looks better this month? appeared first on The Motley Fool Australia.

More reading

• How to build a $52,000 passive income with ASX shares
• In a tough retail environment, what’s the outlook for Wesfarmers shares?
• AGL Energy vs Wesfarmers: Which share delivers better passive income?
• How much could the Wesfarmers share price rise in the next year?
• How many Wesfarmers shares do I need to buy for $8,000 of passive income?

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 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. 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.

I’m a big fan of investing in ASX dividend shares, but I also own some ASX growth shares that I’m bullish about.

One of the very best businesses on the ASX is Pro Medicus Ltd (ASX: PME) and I recently invested $1,500 in it. It’s not the first time I’ve invested in the company, but I thought the valuation was attractive enough to invest in the business again.

Pro Medicus is a leading healthcare informatics company, providing a full range of medical imaging software and services to hospitals, imaging centres and healthcare groups globally.

Three factors drove my decision to invest in the ASX growth share.

Much better valuation

I believe investing in great businesses leads to better long-term returns. However, wonderful companies usually come with a higher price tag.

The Pro Medicus share price certainly isn’t cheap, but it’s a lot cheaper than it used to be, and that’s what triggered my decision to buy. I like to invest during dips and take advantage of the lower price.

Not only has the Pro Medicus share price fallen 24% since July 2026 (at the time of writing), but it’s down more than 50% since July 2025. How often will you see one of the ASX’s best companies fall by that much? Not very often.

According to the projection on CMC Invest, the Pro Medicus share price is now valued at 88x FY27’s earnings and 70x FY28’s estimated earnings.

Of course, those are still high price/earnings (P/E) ratios. Why be willing to pay that price for the ASX growth share? There are two factors that really stick out.

Ongoing impressive contract performance

The company’s financials continue to compound at a strong pace and this is helping justify the valuation.

Revenue growth is a core driver of the company’s progress – in FY26 the business reported revenue grew 22.9% to $261.7 million. That revenue generation is mostly from contracts signed before FY26.

During FY26, the company announced it had signed 10 new contracts worth a minimum of A$407 million.

It also renewed six out of six contracts worth A$141 million on five-year terms. Those renewals included increased minimums and an increased fee per transaction, which is a great sign of organic revenue growth and client appreciation of Pro Medicus’ software.

Some investors may be worried about AI, but the company has proven it continues to attract new contracts. In August 2026, it announced a seven-year A$25 million contract with Valley Health which included the full stack of technology, as well as cardiology imaging, which is another growth avenue for the company.

Profit margins continue to rise

Not only is the ASX growth share’s revenue growing at a fast pace, but the company’s incredibly high profit margins continue to improve. This means that each new revenue dollar is even more profitable than it was before.

During FY26, the company’s operating profit (EBIT) margin improved by 90 basis points to 74.9%. That’s an insanely high figure. It also rose despite management indicating they weren’t expecting the margin to stay as high as it was during COVID-19 – it’s a lot higher now.

Given the size of the EBIT margin improvement in FY26 and the potential for further tech-driven margin gains, I think its profit margins can continue to climb.

While the P/E ratio is still relatively high, I believe its strong revenue growth and high margins will allow the earnings multiple to quickly become more reasonable over the next few years.

But it’s not the only ASX growth share I’ve got my eyes on.

The post Why I just invested $1,500 into this top ASX growth share appeared first on The Motley Fool Australia.

More reading

• CSL vs Pro Medicus: Which ASX healthcare share is better?
• 5 leading ASX shares I’d buy and hold until 2040
• 6 ASX shares set to soar 39% to 135%
• 5 best ASX shares to buy in October
• $10,000 invested in Pro Medicus and CSL shares 3 years ago is now worth…

Motley Fool contributor Tristan Harrison has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

October is underway, and I have been looking at which ASX shares I would be comfortable adding to a portfolio this month.

The three below are exposed to very different industries, but each has a growth story I think could have plenty further to run.

Here is why they make my October buy list.

NEXTDC Ltd (ASX: NXT)

NEXTDC is my pick for exposure to the rapid growth in digital infrastructure.

The company is benefiting from rising demand for data centre capacity as artificial intelligence (AI), cloud computing, and other digital services require more computing power.

That demand is already showing up in the business. In FY26, net revenue increased 16% and underlying EBITDA rose 15%. More importantly for the years ahead, contracted utilisation more than tripled as customers locked in substantial amounts of future capacity.

That gives NEXTDC a large pipeline of business that should progressively move into revenue as new capacity comes online.

There is still plenty to execute, particularly given the enormous investment required to build data centres. But I think NEXTDC has a much clearer growth runway today than it did a few years ago.

That puts this ASX share firmly on my October buy list.

CSL Ltd (ASX: CSL)

CSL makes the list for a completely different reason.

FY26 was a difficult year, but I think the healthcare giant now has a clearer opportunity to rebuild growth.

Underlying demand for immunoglobulin therapies remains healthy, while CSL has been improving efficiency across its plasma collection network and investing in manufacturing technology designed to increase yields.

Newer products also give the company additional avenues for growth.

For me, the opportunity is not dependent on CSL suddenly returning to the growth rates investors once expected. A steady recovery in margins, improving plasma economics, and continued demand for its therapies could be enough to produce a much healthier earnings trajectory over the next few years.

I think that makes the current recovery story worth buying into.

Netwealth Group Ltd (ASX: NWL)

Netwealth rounds out my three October picks.

The wealth platform provider continues to attract substantial amounts of investor money, which gives the business a growing base from which to generate revenue.

I like the structural story here. Financial advisers and their clients are increasingly using modern investment platforms to manage portfolios, reporting, administration, and other parts of their wealth.

Netwealth has established itself as one of the major beneficiaries of that shift and continues to win new funds onto its platform.

That creates a relatively straightforward growth opportunity. If more advisers and investors choose Netwealth, the amount of money administered through the platform can keep expanding alongside earnings.

For me, that makes Netwealth a quality ASX growth share I would be happy to buy in October and hold for many years.

Foolish takeaway

I am looking beyond what these companies might deliver over the next few months and focusing on the long term.

NEXTDC already has a huge pipeline waiting to be built, CSL has an opportunity to restore momentum, and Netwealth continues taking a larger share of Australia’s wealth platform market.

Those are growth stories I think still have plenty of chapters left, which is why all three ASX shares would be on my buy list in October.

The post Top ASX shares to buy in October 2026 appeared first on The Motley Fool Australia.

More reading

• This ASX 200 share is tipped to return over 50%
• 5 things to watch on the ASX 200 on Friday
• CSL vs Pro Medicus: Which ASX healthcare share is better?
• 5 leading ASX shares I’d buy and hold until 2040
• Expert names Woodside and CSL shares as top buys today

Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. 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.

Imagine having an extra $1,000 arriving in your bank account every week without having to work for it.

That could make a huge difference to your lifestyle, particularly if you are approaching retirement.

And while building a portfolio capable of producing this income will take time, it is something you can start working towards today.

Here’s how.

Start by buying yourself some future income

One way to approach this goal is to think about how much income each investment could eventually provide.

For example, every $20,000 invested in a portfolio yielding 5% would generate $1,000 in annual passive income.

Build that portfolio to $100,000 and you’re looking at $5,000 a year. Reach $200,000 and the potential income doubles to $10,000.

Ultimately, you would need approximately $1.04 million invested at a 5% yield to generate $52,000 a year.

But of course, starting from zero means there is plenty of work to do before those dividends start paying the bills.

Let growth do the heavy lifting

Rather than chasing dividends immediately, I would start by focusing on building the portfolio’s value.

This could mean investing in quality ASX growth shares such as Goodman Group (ASX: GMG) and ResMed Inc (ASX: RMD), alongside established companies such as Wesfarmers Ltd (ASX: WES).

Exchange traded funds (ETFs) could also play a role, providing exposure to hundreds of Australian and international stocks.

The idea is to build a portfolio capable of growing over many years while reinvesting any dividends received.

Regular contributions would be equally important. Investing $1,000 a month and achieving an average annual return of 10% could potentially build a portfolio worth approximately $1.04 million in 23 years.

That return isn’t guaranteed, nothing is in the share market, but it demonstrates what consistent investing and compounding could achieve.

Increasing those monthly contributions as your income grows could also bring the target forward.

Turn your wealth into passive income

As the portfolio approaches its target, the investment strategy could gradually change.

Instead of focusing primarily on capital growth, investors could start directing more money towards companies offering attractive and sustainable dividends.

This could include infrastructure shares such as APA Group (ASX: APA) and Transurban Group (ASX: TCL), property investments such as HomeCo Daily Needs REIT (ASX: HDN), and dividend-focused ETFs.

The aim would be to achieve an average yield of approximately 5% without relying too heavily on any individual company.

Once the portfolio reaches $1.04 million, that yield would produce $52,000 annually before tax.

And if the underlying companies can grow their dividends over time, the income stream could increase as well, potentially helping it keep pace with rising living costs.

The post How to build a $52,000 passive income with ASX shares appeared first on The Motley Fool Australia.

More reading

• 5 ASX 200 shares brokers tip to rocket 25% to 77%
• In a tough retail environment, what’s the outlook for Wesfarmers shares?
• AGL Energy vs Wesfarmers: Which share delivers better passive income?
• How much could the Wesfarmers share price rise in the next year?
• Transurban Group share price: $4.5bn deal for bigger Sydney road stakes

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

How does your superannuation balance compare with other Australians approaching retirement?

It is a question worth asking, particularly as you get closer to finishing work and enjoying your retirement.

So, let’s look at the latest figures for Australians aged around 57 and 67.

What’s the average super balance at 57?

According to the latest Australian Prudential Regulation Authority (APRA) figures, Australians aged 55 to 59 have an average superannuation balance of $243,300. This gives us a reasonable guide for someone aged 57.

At this stage, retirement may be getting closer, but there could still be plenty of opportunities to increase your savings.

Someone planning to retire at 67, for example, would have another decade of potential investment returns and superannuation contributions ahead of them.

Those final working years could make a considerable difference, particularly if earnings are higher than earlier in their career.

Making additional contributions, where affordable and within contribution limits, could also help improve their retirement position.

How much super does the average 67-year-old have?

By age 67, things look a little different. APRA’s latest figures show that Australians aged 65 to 69 have an average superannuation balance of $290,600.

That is approximately $47,300 more than the average for Australians aged 55 to 59.

However, there is something important to remember when comparing these numbers. Many Australians in their late 60s have already retired and started accessing their superannuation.

Their balances may reflect a combination of investment returns and retirement withdrawals.

How much super is enough?

Of course, knowing the average balance is only part of the story.

The more important thing to know is whether those savings will provide enough income to enjoy retirement.

The Association of Superannuation Funds of Australia (ASFA) estimates that a single homeowner needs approximately $630,000 in retirement savings at age 67 to support a comfortable retirement.

For couples, ASFA estimates that a total combined balance of $730,000 is required for a comfortable retirement.

Both estimates assume they receive some Age Pension support over time.

These figures are considerably higher than the average super balance reported by APRA for Australians aged 65 to 69, although the couples’ target represents combined savings.

Someone who owns their home outright and qualifies for the Age Pension may need considerably less than someone who is renting or hoping to fund a more expensive lifestyle.

For Australians approaching 57, these figures could provide a good reason to review their superannuation strategy while there is still time to make changes.

And for those approaching 67, understanding their expected spending, other savings, and potential Age Pension entitlement could help determine how far their superannuation will go.

The post Here’s the average Australian superannuation balance at 57 and 67 appeared first on The Motley Fool Australia.

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

Woodside Energy Group Ltd (ASX: WDS) shares have been pushed into the spotlight in 2026 amid ongoing oil supply concerns and macroeconomic pressures.

Volatility surrounding continued conflict in the Middle East has been a strong tailwind for Woodside shares so far this year. 

The US-Iran war has shown renewed signs of cooling. But each time it looks like conflict is calming down, it ramps back up again. The region is highly volatile, and the movement of oil from the area will continue to be uncertain until a final resolution is reached. 

Oil shipping disruptions and production cuts pushed oil prices to a multi-year high of around US$111 per barrel in April. 

Trading Economics data crude oil is now trading around US$89 per barrel. That’s a 4% increase over the past month and 45% higher than last year.

It’s not just volatile oil prices driving the company’s shares higher, either. ASX energy companies have also enjoyed a rise in production and improved cash flow.

Woodside grabbed headlines late last month when it posted its first-half FY26 update. The company reported a 13% increase in operating revenue, a 27% increase in NPAT, a 7% increase in underlying NPAT, and a huge increase in free cash flow to US$352 million.

This strong performance is great news for investors, especially those looking to earn a good passive income from their investment in Woodside shares.

What’s the latest out of Woodside shares?

At the time of writing, Woodside shares are trading for $31.41 each. That’s a 33% increase for the year-to-date and 26% higher than this time last year.

What does Woodside’s dividend look like?

Woodside traditionally makes two fully franked dividend payments to shareholders every year, payable in March and September.

As part of the company’s latest financial update, its management declared a fully franked interim dividend of 57 US cents per share (the equivalent of 79.5 Australian cents). It paid this to investors last month. 

At the time of writing, that translates to a dividend yield of around 5.1%.

What is the oil and gas major forecasted to pay its shareholders in FY26 and FY27?

CommSec forecasts show Woodside is expected to pay a full-year FY26 dividend of AU$1.764 in FY26 and AU$2.149 in FY27.

So, how many Woodside shares do I need to generate $1,000 per month in passive income in FY27?

First, we’d need to calculate what $1,000 per month in passive income is over the year ($12,000). The oil and gas giant doesn’t pay monthly, so we can only calculate it annually.

In order to earn $12,000 per year in passive income from Woodside shares in FY26, at $1.764 per unit, investors would need to own around 6,802 shares.

To earn the same amount from the $2.149 projected dividend in FY27, investors would need to own roughly 5,583 Woodside shares.

What would that cost?

At a $31.41 share price, 6,802 shares would require an investment of approximately $213,650 for FY26. This would give an annual passive income of around $12,000 (equivalent to $1,000 per month).

To earn the same amount in FY27, the 5,583 shares would cost closer to $175,362.

The post How many Woodside shares do I need to buy for $1,000 per month of passive income? appeared first on The Motley Fool Australia.

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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.

10 years is a long time in the share market.

If I were buying S&P/ASX 200 Index (ASX: XJO) shares with that timeframe in mind, I would want businesses with opportunities that can keep expanding.

With that in mind, these three ASX 200 shares stand out to me.

Sigma Healthcare Ltd (ASX: SIG)

I think Sigma Healthcare looks very different today following last year’s merger with Chemist Warehouse.

The combined business now brings together a major pharmacy retail network and Sigma’s pharmaceutical wholesale operations, creating scale across several parts of the healthcare supply chain.

FY26 gave investors an early look at that potential. Revenue reached $10.8 billion, while normalised EBIT increased by more than 20%. Sigma is also working towards $100 million of annual integration synergies by FY29.

But I think the 10-year opportunity goes far beyond extracting merger savings.

Chemist Warehouse still has room to expand its store network and international presence, while Sigma can use its scale across distribution, retail pharmacy, and own-brand products to keep growing alongside it.

If management executes well, I think this ASX 200 share could be significantly larger a decade from now.

Breville Group Ltd (ASX: BRG)

Breville is an ASX 200 share that I think has done an excellent job of turning a local brand into a global one.

Its premium coffee machines remain an important growth engine, but what interests me over 10 years is the model behind them.

Breville continually invests in new products, marketing, and new geographic markets, giving it several ways to keep growing without relying on consumers simply buying more of the same appliances.

FY26 revenue reached a record $1.81 billion, and remarkably, the company has now increased revenue, gross profit, and EBIT in every financial year since FY15.

Newer markets also provide another avenue for expansion. Breville has been building its presence in markets including China and the Middle East while continuing to develop its established businesses in the Americas, Europe, and Asia-Pacific.

I think that global runway could keep the business growing well beyond the next few years.

Megaport Ltd (ASX: MP1)

Megaport is the higher-growth pick of the three ASX 200 shares.

It has traditionally helped businesses connect data centres and cloud providers through its global software-defined network. More recently, its acquisition of Latitude.sh has expanded that opportunity into AI infrastructure.

Latitude.sh provides GPU and CPU computing power, storage, and networking for AI workloads, and the early demand has been strong. 

Megaport has already announced a series of very large strategic contracts through the business, giving it a much bigger growth avenue than connectivity alone.

For me, that is what makes the 10-year story so compelling. 

If Megaport can keep building both sides of the business, it could become a much larger digital infrastructure company by 2036.

Foolish takeaway

I cannot know what the market will look like in 2036.

I would rather spend a 10-year holding period backing ASX 200 shares that still have ways to expand. Sigma, Breville, and Megaport all give me that potential, but through three completely different parts of the economy.

That is enough for me to be comfortable buying them and giving the businesses plenty of time to grow.

The post 3 ASX 200 shares I would buy and hold for 10 years appeared first on The Motley Fool Australia.

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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 Megaport. 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.