Whether your retirement is just around the corner or decades over the horizon, it's never too early or too late to work on boosting your superannuation income.
While there are a number of ways you can go about that, my preference is to invest in quality ASX dividend stocks.
When it comes to those stocks, I prefer ASX shares that pay fully franked dividends. This gives me credit for the 30% in corporate taxes the companies I've invested in have already paid to the ATO on their profits.
With that in mind, an ASX dividend stock trading at a fully franked 5% yield is equivalent to a grossed-up yield of 7.1%.
So, you can see how that can make a big difference to that superannuation boosting passive income stream we're after.
I also lean towards ASX stocks that have a track record of making reliable dividend payouts. And companies that I believe will see their share price and dividend payouts go up over time.
Now, before we dig in, do keep in mind that the dividend yields you generally see quoted are trailing yields Future yields may be higher or lower depending on a range of company specific and macroeconomic factors.
With that said…
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Three ASX dividend stocks for a $5,000 a year superannuation lift
The first company I'd look at for that welcome superannuation lift is Woodside Energy Group Ltd (ASX: WDS).
The S&P/ASX 200 Index (ASX: XJO) stock ticks all of the key passive income boxes I mentioned above.
Over the last 12 months Woodside paid out two fully franked dividends totalling $1.653 per share.
At the recent Woodside share price of $31.54, that sees Woodside trading on a fully franked trailing dividend yield of 5.2%.
Next up, and with a littler diversification in mind, we have ASX 200 bank stock Westpac Banking Corp (ASX: WBC).
If you'd held Westpac shares over the last year, you would have received two fully franked dividends totalling $1.54 a share. At the recent Westpac share price of $38.73, the big four Aussie bank trades on a fully franked trailing dividend yield of 4.0%.
Which brings to our third superannuation boosting passive income stock, Evolution Mining Ltd (ASX: EVN).
With gold prices surging, Evolution Mining just lifted its interim dividend payout by a whopping 186%. And I expect this trend could have legs.
Taking into account the smaller final dividend payout, Evolution Mining has delivered 33 cents a share in fully franked dividends over the past year. At the recent share price of $13.27, the ASX 200 miner trades on a fully franked trailing dividend yield of 2.5%.
To the maths
Assuming I invest an equal amount in all three of the above ASX 200 dividend stocks, just how much will I need to lift my superannuation income by $5,000 a year?
Well, as they deliver an average yield of 3.9%, you'd need to invest $128,205 today.
Or you can always invest a smaller amount on a regular basis, and you'll reach that passive income goal in good time.
