Canaccord Genuity has just released a research report looking into the sectors which tend to do well, and those that tend to suffer as interest rates increase.

Interest rate increase all but certain

The broking house said in its report that expectations for an interest rate hike had increased sharply over the past few months due to persistently high inflation, exacerbated by rising oil prices due to the conflict in the Middle East.

CG added:

The RBA is now very likely to hike the cash rate by 25bps later this month, and markets are also pricing in one to two further hikes beyond September. While accumulating evidence of a slowing economy may allow the RBA to hold rates after September, the policy outlook is nevertheless materially more restrictive than envisaged this time last year.

The broking house said upward pressure on interest rates, a deteriorating consumer backdrop, a softer housing market and slowing economic growth all presented headwinds for Australian shares from a valuation and earnings perspective.

They added:

These pressures have contributed to a ~5% pullback in the ASX 200 since early August, with outsized declines across the rate-sensitive Retail (-18%) and Real Estate (-13%) sectors, as well as growth sectors such as IT (-14%).

CG said the sectors with the strongest negative correlations with interest rates included real estate, retail and information technology.

CG added:

Recent trading updates have pointed to a softening consumer backdrop, with names such as JB Hi-Fi Ltd (ASX: JBH) reporting negative top-line growth in early FY27. Wesfarmers Ltd (ASX: WES) has also shown a negative correlation with short-term rates, consistent with its exposure to discretionary household spending and its sensitivity to the housing market through its Bunnings franchise.

CG said online classifieds companies such as Seek Ltd (ASX: SEK) and REA Group Ltd (ASX: REA) have in the past shown strong negative correlations with rate increases, which, "partly reflects the degree of cyclicality in their earnings, being tied to job ads and property listings, respectively, as well as the valuation impact of higher long-term yields on growth-orientated companies''.

Infrastructure owners such as Transurban Group Ltd (ASX: TCL) and APA Group Ltd (ASX: APA) were also sensitive to rate increases due to their reliance on debt funding.

Small ray of hope in energy

On the positive side of the ledger, CG said energy stood out as the one sector with a clear positive correlation, "with changes in both short-end rates and longer-term yields over the past three years''.

The post Where to invest as interest rates charge higher appeared first on The Motley Fool Australia.

That could make a huge difference to your lifestyle, particularly if you are approaching retirement or hoping to work fewer hours.

And while building a portfolio capable of producing this much income will take time, ASX shares could help you get there.

Here's how it could be done.

Start by building wealth

The first thing to understand is that a $50,000 passive income requires a substantial investment portfolio.

If the goal is to generate this income from dividends with an average dividend yield of 5%, you would need approximately $1 million invested.

That might sound intimidating, but nobody needs to start with $1 million.

In fact, the early years should probably be focused on growing the portfolio rather than generating income.

This could mean investing in quality ASX growth shares such as Goodman Group (ASX: GMG), ResMed Inc (ASX: RMD), and Xero Ltd (ASX: XRO).

Blue chip shares and exchange traded funds (ETFs) could also help build wealth over time.

The aim would be to own investments capable of increasing in value over many years, while reinvesting any dividends received.

Let compounding do its work

Regular investing can make a significant difference to the journey.

For example, investing $500 a month and achieving an average annual return of 10% could grow a portfolio to approximately $1 million in 30 years.

Increase that to $1,000 a month and the same target could be reached in around 23 years.

These returns are not guaranteed, and actual returns will vary from year to year, but they demonstrate how powerful regular investing and compounding can be.

Over time, an increasing portion of the portfolio's growth can come from investment returns rather than new contributions.

Turn the portfolio into an income generator

Once the portfolio approaches $1 million, investors could start shifting their focus towards ASX dividend shares.

That could include infrastructure companies such as APA Group (ASX: APA) and Transurban Group (ASX: TCL), which own assets capable of generating cash flow over long periods.

Property investments such as HomeCo Daily Needs REIT (ASX: HDN) and Charter Hall Long WALE REIT (ASX: CLW) could provide another source of income.

Established businesses such as Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES) could also have a place in the portfolio.

And for investors who would rather not select every dividend share themselves, an income-focused ETF such as the Vanguard Australian Shares High Yield ETF (ASX: VHY) could be worth considering.

Final word

Overall, I think this demonstrates that the share market can be a great place to generate a passive income.

Investors just need a combination of patience, capital, and good investments. The rest will happen in time.

The post How to build a $50,000 passive income from ASX shares appeared first on The Motley Fool Australia.

Let's check out some new ratings from the experts.

Regal Partners Ltd (ASX: RPL) 

The Regal Partners share price has plummeted 29% over the YTD.

Ord Minnett has a buy rating on this specialist alternative investment manager.

In a new note, the broker said:

Regal Partners (RPL) delivered a strong first-half FY26 result (1H26), although the attention was mainly on the announced transition to retirement of founder and portfolio manager Philip King.

Mr King is responsible for approximately 16% of RPL's funds under management (FUM), or $3.4 billion, and will remain in his current roles until at least 30 June 2027.

Financially, the result was robust. Normalised net profit after tax reached $93 million (guidance was for at least $90 million), more than double the prior corresponding period, and 3% ahead of consensus.

RPL ended FY26 with approximately $289 million of balance sheet capital and access to a further $130 million of undrawn debt facilities. 

Despite the leadership transition risk, RPL is trading on an attractive FY27 price to earnings multiple of circa 8x, and on our numbers, offers around 14% per annum growth in EPS over FY26–29.

APA Group Ltd (ASX: APA)

The APA Group share price is up 20% over the YTD.

Andrew Wielandt from DP Wealth Advisory has a hold rating on this ASX 200 utilities share. 

Wielandt said (courtesy The Bull): 

APA owns an extensive portfolio of energy infrastructure assets across Australia and benefits from long term contracts and inflation-linked tariff increases, which the company negotiates directly with its customers.

APA delivered a strong performance in full year 2026. Underlying EBITDA of $2.183 billion was up 8.3 per cent on the prior corresponding period. Underling EBITDA margins increased to 77.9 per cent.

APA remains a reliable income focused investment, but with more capital to be invested, we retain a hold recommendation.

HomeCo Daily Needs REIT (ASX: HDN)

The HomeCo Daily Needs REIT share price has fallen 20% over the YTD.

This ASX ETF is a real estate investment trust (REIT) that holds properties in the retail, health, and services sectors.

Wielandt has a sell rating on this ASX REIT.

He explains:

Occupancy was 99 per cent in full year 2026. The underlying properties continue to perform well, with a steady increase in rental income.

However, like a number of other REITs, I believe the prospect of higher interest rates, finance costs amid struggling consumers may pressure HDN's performance numbers in full year 2027 in what is a challenging retail sector.

HDN shares have fallen from $1.38 on September 18, 2025 to trade at $1.105 on September 17, 2026.

The post Buy, hold, sell: Regal Partners, HomeCo Daily Needs REIT, APA Group shares appeared first on The Motley Fool Australia.

But you don't have to let it sit idly in the meantime.

Instead, you can invest your superannuation balance and generate a regular source of passive income for when you've stopped working.

But exactly how much passive income could a $800,000 superannuation balance generate each year?

Let's investigate.

How much passive income can I generate from an $800,000 superannuation balance?

To calculate the potential passive income from an $800,000 superannuation balance, you need to multiply your total balance by the dividend yield of your portfolio.

It's a simple calculation, but the problem is that the answer varies depending on the yield of the stocks you pick.

For example, a 3% yielding portfolio needs to be twice the size of one that yields 6% to earn the same passive income.

Which also means that as your dividend yield increases, the passive income you can earn from your $8000,000 superannuation balance climbs higher. 

Here's a breakdown by yield. These figures are based on cash dividends before tax or franking credits. 

What can I earn from a 3% to 4% yielding portfolio?

If your superannuation portfolio has a dividend yield of around 3%, your passive income will be around $24,000 per year, because $800,000 x 3% = $24,000.

If your portfolio yields closer to 4%, your passive income could be closer to $32,000 every year ($800,000 x 4% = $32,000).

Major miners like BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) yield around this level. As do banking giant Commonwealth Bank of Australia (ASX: CBA) and conglomerate Wesfarmers Ltd (ASX: WES).

What passive income can I earn if my superannuation portfolio yields 5% or 6%?

If your superannuation portfolio yields closer to 5%, you could earn $40,000 every year in dividend payments off the same superannuation balance ($800,000 x 5% = $40,000).

At a 6% yield, you could earn an annual passive income closer to $48,000.

Classic dividend stocks like APA Group (ASX: APA), Transurban Group (ASX: TCL), and JB Hi-Fi Ltd (ASX: JBH) all pay around this level.

What about a portfolio yielding much higher, around 7% or 8%?

But if your portfolio has a slightly higher dividend yield of around 7% or 8%, your passive income will go up again to around $56,000 or $64,000, respectively.

Again, it's possible to buy shares around this level, but there are fewer options.

Solvar Ltd (ASX: SVR), Waypoint REIT Ltd (ASX: WPR), and HomeCo Daily Needs REIT (ASX: HDN) all pay around this yield at the time of writing.

Is it possible to invest in ASX shares yielding 10% or higher?

It's possible, but generally, the higher the yield, the higher the volatility and risk associated with the stock. 

If high yield and high risk are what you're after, at a 10% yield, a $800,000 balance could earn around $80,000.

You could invest in ASX-listed stocks such as Tower Ltd (ASX: TWR) or Kina Securities Ltd (ASX: KSL). Another option is to invest your superannuation in a high-yielding exchange-traded fund (ETF), such as the VanEck MSCI International Value ETF (ASX: VLUE) or the VanEck Gold Miners ETF (ASX: GDX). These all yield 10% or more at the time of writing.

The post How much passive income can I earn off an $800,000 superannuation balance? appeared first on The Motley Fool Australia.

But there are plenty of other ASX shares that can provide attractive income.

These three would be on my shortlist.

APA Group (ASX: APA)

APA would be one of my first choices outside the banking sector.

The company owns and operates energy infrastructure across Australia, including gas pipelines, electricity transmission assets, and other infrastructure.

I like the type of cash flow these assets can produce.

Much of APA's revenue is supported by long-term contracts, which can give the company reasonable visibility over future earnings and distributions.

APA is also continuing to invest in new infrastructure as Australia's energy system develops. If those projects earn attractive returns, they could help the business grow while its existing assets continue generating cash.

Debt and funding costs are important risks to watch with an infrastructure company like APA. Even so, I think its essential assets and regular distributions make it a strong long-term income option.

BWP Trust (ASX: BWP)

BWP Trust gives investors a different source of income through commercial property.

The real estate investment trust (REIT) owns a portfolio of large-format retail properties, with Bunnings a major tenant.

I like that because the quality of the tenant can be just as important as the property itself.

Bunnings has a strong position in Australian home improvement, and long leases can provide BWP with relatively predictable rental income.

Over time, rent reviews and changes across the property portfolio can also help increase income.

Like most property investments, BWP can be sensitive to interest rates and changes in property valuations. I would also keep an eye on its tenant concentration.

But for an income investor, I think the combination of established properties, a strong major tenant, and regular distributions is worth considering.

Deterra Royalties Ltd (ASX: DRR)

Deterra Royalties would be my third income pick. The company earns royalties from mining operations rather than operating the mines itself.

Its most important asset is the royalty over the Mining Area C iron ore operations in Western Australia, which are operated by BHP Group Ltd (ASX: BHP).

I like that model for income because Deterra receives a share of revenue linked to production without having to fund the enormous operating and development costs that come with running a mine.

That can allow a large proportion of cash generated by the business to flow through to shareholders.

The trade-off is that Deterra's income can still move with commodity prices and production volumes, while the business has historically been heavily dependent on one major royalty asset.

Even with those risks, I think the royalty model gives income investors an interesting way to gain exposure to resources.

Foolish takeaway

I would not feel the need to rely on bank dividends alone for ASX income.

APA, BWP Trust, and Deterra Royalties generate cash in very different ways, through energy infrastructure, property rents, and mining royalties.

For me, that makes all three worth considering when looking beyond the major banks for long-term income.

The post 3 ASX income shares I'd buy outside Westpac and the major banks appeared first on The Motley Fool Australia.

Everyday Aussie investors often weigh Rio Tinto Ltd (ASX: RIO) against APA Group (ASX: APA) when hunting for steady, passive income from shares. The two are giants in totally different fields — with Rio Tinto at the heart of mining, and APA Group a backbone for Australia's energy infrastructure. Both throw off regular dividends, but which one is more compelling for those wanting a reliable stream of cash flow? Here's how they stack up for income-focused portfolios.

The case for Rio Tinto

Rio Tinto is one of the world's largest miners, producing iron ore, aluminium, lithium, copper, and more. This global giant has been a mainstay of the ASX for decades. Its revenue streams are deeply tied to commodity cycles, but the company's vast, low-cost assets and operational scale give it firepower for substantial and regular dividend payouts.

Looking at the latest numbers, Rio Tinto boasts a market cap of $61.76 billion and a price-to-earnings (P/E) ratio of 16.07. Its dividend yield stands at 3.99%, fully franked at 100%, meaning investors get the full benefit of franking credits. According to its most recent company profile, Rio Tinto has grown through many mergers and acquisitions, which has helped it become such a dominant force. Its scale, reliable cash flows, and tendency for occasional special dividends make it a go-to for income-seekers, especially those who value franking.

The case for APA Group

APA Group is Australia's top energy infrastructure company, running a sprawling network of gas, electricity, solar, and wind assets. It owns and operates much of the country's gas pipeline network and is steadily expanding into renewables. APA Group's revenues are less sensitive to the wild ups and downs of commodities, thanks to long-term contracts and regulated assets. This can make its dividends feel steadier to income investors.

APA Group's market cap is $14.27 billion, with a notably higher dividend yield at 5.39%. However, its P/E ratio is a lofty 68.36, which stands out compared to Rio Tinto's much lower multiple. The franking level on APA's dividends is well below Rio's: the latest is just 31.4%, and looking back, many past dividends have variable (often low) franking. As of its company overview, APA Group actively invests in renewable assets amid its historical strength in gas. Investors who favour essential services or lower volatility in earnings may prefer APA's business exposure and defensive qualities.

Recent share price performance

Here's how their shares performed between 18 August 2026 and 17 September 2026.

• Rio Tinto: YTD return of 17.8%. During this month, the share price was somewhat volatile, starting around $167, peaking above $179 in early September before easing back to $166.09.
• APA Group: YTD return of 23.4%. APA shares began the period near $9.85 and rose steadily, ending at $10.78, representing a much smoother upward trend compared to Rio's swings.

Which is the better buy?

For pure, reliable passive income, I'd lean toward Rio Tinto over APA Group. While APA Group boasts a punchier 5.39% yield and a record for steady dividends, its lower franking credit levels and extremely high P/E ratio (68.36) give me pause. By contrast, Rio Tinto's 3.99% yield may not look as high at first glance, but it is fully franked, so the return after tax is more compelling — especially for those who benefit from franking credits.

Rio's dividend history also shows substantial, ongoing payouts (plus occasional special dividends) backed by strong earnings and underlying cash flow. APA's payout, while reliable, comes with much less franking and looks more stretched against its underlying earnings.

APA Group may appeal to investors more focused on lower earnings volatility and the appeal of essential infrastructure. But when I focus on the net after-tax income into my bank account — and factor in value metrics and payout sustainability — Rio Tinto is my pick for better passive income.

The post Rio Tinto vs APA Group: Which is better for passive income? appeared first on The Motley Fool Australia.

How to get started

Generating substantial earnings from dividends does however demand substantial amounts of savings, and getting there can seem an insurmountable task.

Therefore, it's good to start relatively small, and use the power of compound interest to your advantage.

Today, I'm looking at what can be built up from a base of $20,000.

To generate the target of $5,000 per year in dividend income, you'd be looking at amassing about $100,000 in capital.

I'd argue you could generate about 7% per year from a combination of capital increases – share price growth – and dividends.

If you start with $20,000 in savings, I'd aim to save a further $100 per week.

Over a nine-year period, and assuming a return of 7% per year, you would have $99,055 at the end of this time.

If you'd like to tweak the calculations yourself, head over to the Federal Government's Moneysmart calculator and have a play around.

Once you hit the $100,000 mark, if you choose, you could start taking your dividends out as an income stream rather than reinvesting them.

So at this stage, what sort of stocks would you be looking to own?

Building an income-generating portfolio

Firstly, it's a good idea to keep in mind whether the stocks are paying franked dividends.

A fully-franked share comes with a 30% tax credit for the tax already paid by the company, meaning you do not have to pay your full tax rate on the dividends earned.

In terms of trying to hit our target of $5,000 a year, you'd need to be aiming for a dividend yield of 5% – but keep in mind this doesn't take into account any tax you'd need to pay.

Tolls roads operator Atlas Arteria Ltd (ASX: ALX) is a reasonable company to consider, as it is currently paying a 9% yield, with brokers expecting a relatively strong yield to be maintained for the next few years.

Gas pipelines operator APA Group Ltd (ASX: APA) is also a good fit, paying a 5.39% dividend, albeit only 31% franked.

Investment company Wam Active Ltd (ASX: WAA) is paying 7.4%, while Argo Investments Ltd (ASX: ARG) is paying 4.18%.

Among the banks, Westpac Banking Corp (ASX: WBC) is paying 4.47% while Bank of Queensland Ltd (ASX: BOQ) is paying 6.1%.

Retailer Universal Store Holdings Ltd (ASX: UNI) also has a healthy dividend yield at 6.22%.

So as you can see, there are plenty of stocks around which can deliver decent yields once your savings have hit the target.

The post Starting with $20,000, how to build a portfolio generating $5,000 a year in passive income appeared first on The Motley Fool Australia.

I prefer consistent dividend growth over large dividend yields or cyclical payouts that bounce up and down.

If I'm relying on passive income, then I want to have a high level of confidence that my dividends will continue flowing into the bank account.

Below are the two ASX dividend shares that have increased their dividend payouts the most years in a row.  

APA Group (ASX: APA)

APA has the second-best record on the ASX. It has increased its annual distribution every year for the past 22 financial years.

The business describes itself as a leading energy infrastructure business with a portfolio of more than $20 billion of assets. That includes gas transmission, processing, compression and storage assets. It also has gas-powered energy generation and renewable energy generation. Additionally, APA owns and operates battery storage and electricity transmission infrastructure.

The business regularly invests in its portfolio such as new pipelines, new energy generation and new electricity transmission, helping grow its free cash flow, which funds the larger distributions. In FY26, free cash flow grew 3.2% to $1.1 billion and underlying operation profit (EBITDA) grew 8.3% to $2.18 billion.

The ASX dividend share grew its FY26 distribution by 1.8% to 58 cents per security and expects to hike it again in FY27 to 59 cents per security. That translates into a guided distribution yield of 5.5% for FY27.

I like how the business is balancing investing in the business, together with rewarding investors with larger payouts.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts has the best record of all when it comes to consistent dividend growth, which is partly why this business is one of my largest holdings.

The ASX dividend share has increased its regular annual dividend per share every year since 1998, which is a truly impressive streak.

It has managed to deliver that payout growth by maintaining a diversified portfolio across a range of sectors that can produce defensive/largely uncorrelated cash flow. Some of the places it's invested in includes energy, telecommunications, property, building products, retirement living, agriculture, water entitlements, financial services, electrification, swimming schools, credit and plenty more.

Having that diversification helps reduce risks and helps Soul Patts search for opportunities across a wide array of assets. It has highlighted it's looking internationally for opportunities too – Australia and the ASX have been the focus.

In the FY26 half-year result, Soul Patts hiked its interim dividend by 9.1% to 48 cents per share, which was a solid increase, in my view.

The ASX dividend share's latest two dividends amount to a grossed-up dividend yield of 3.5%, including franking credits, at the time of writing.

Overall, I think these are two of the best ASX dividend shares around and are likely to continue hiking their payouts for the foreseeable future.

The post 2 ASX dividend shares raising dividends like clockwork appeared first on The Motley Fool Australia.

That is $52,000 a year arriving without having to go to work for it.

But how much superannuation would I actually need?

It depends on the income your portfolio produces

The answer comes down to the income yield you expect from your investments.

If the goal is to generate $52,000 a year without regularly selling down the portfolio, I am going to need a substantial superannuation balance.

For example, with a 4% dividend yield across the portfolio, I would require a balance of approximately $1.30 million. 

However, with a 5% dividend yield, the balance would fall to around $1.04 million, while a 6% yield would reduce the figure to about $867,000. 

All examples are before considering any potential benefit from franking credits.

Why I wouldn't simply chase a big yield

It would be tempting to decide that $867,000 is all I need and just aim for a 6% dividend yield in retirement.

But I would be careful with that.

A very high dividend yield can sometimes be a warning sign. A company may be struggling, its dividend may be unsustainable, or the share price may have fallen because investors expect earnings to deteriorate.

For retirement income, I would prefer a portfolio built around businesses and funds capable of supporting their payments over many years.

That could include infrastructure shares such as APA Group (ASX: APA) and Transurban Group (ASX: TCL), property investments such as Charter Hall Long WALE REIT (ASX: CLW), and established companies such as Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW).

Dividend-focused ASX exchange traded funds (ETFs) could also help spread the income across a larger collection of businesses.

Growth still has a role

Even in retirement, I would not necessarily turn the entire superannuation balance into income investments.

Inflation does not stop when you retire. If the portfolio can continue growing over time, that can help the income stream grow as well.

A mix of ASX dividend shares, quality growth companies, ETFs, and defensive assets could therefore make more sense than simply trying to maximise the starting yield.

Foolish takeaway

I think targeting around $1.04 million would be a sensible starting target for someone hoping to generate $1,000 per week from a portfolio yielding approximately 5%.

The important part is building an income stream that has a good chance of still being there many years into retirement.

The post How much do I need in superannuation to receive $1,000 passive income per week? appeared first on The Motley Fool Australia.

Once you have built a large enough portfolio, money can arrive in your account without having to work another hour for it.

That could eventually mean extra holidays, fewer days at work, help with household bills, or simply more freedom.

Yet I think many people underestimate what they could build by starting with relatively modest amounts.

Let's look at what could happen with $500 a month.

Getting started

Investing $500 does not feel life-changing in itself.

Even after a year, you would have contributed just $6,000.

But the real value of those early investments is the amount of time they have to compound.

If $500 were invested every month and the portfolio generated an average return of 10% per annum, the balance could grow to approximately $100,000 after 10 years.

After 15 years, it could be worth around $200,000.

And after 20 years, the portfolio could reach approximately $360,000.

These figures assume returns are reinvested and are only illustrations. A 10% annual return is possible to achieve, but certainly not guaranteed.

Overall, I think this demonstrates how seemingly small decisions made today can have major consequences decades later.

I wouldn't chase dividends straight away

If I were starting this portfolio from scratch, income would not be my main priority.

I would want to grow the capital first. That could mean investing in high-quality ASX growth shares such as Xero Ltd (ASX: XRO), Goodman Group (ASX: GMG), and ResMed Inc (ASX: RMD).

Blue chips such as Wesfarmers Ltd (ASX: WES) could also have a role.

And ASX exchange traded funds (ETFs) such as the iShares S&P 500 ETF (ASX: IVV) or Vanguard MSCI Index International Shares ETF (ASX: VGS) could provide exposure to hundreds of global companies.

The aim during these years would be simple. It would be to keep investing, reinvest anything the portfolio pays out, and give compounding as much time as possible.

Turning growth into income

To generate $26,000 of passive income, I would target a portfolio valued at approximately $520,000 and a 5% dividend yield across it.

At our assumed 10% return, investing $500 every month could take the portfolio to this level in roughly 23 years.

Once there, this is when I would start thinking much more seriously about income.

Some of the growth investments could remain, while more money could gradually move toward dividend shares such as APA Group (ASX: APA), Transurban Group (ASX: TCL), HomeCo Daily Needs REIT (ASX: HDN), and Charter Hall Long WALE REIT (ASX: CLW).

A $520,000 portfolio yielding 5% would then produce $26,000 a year.

And all of it could have started with the decision to put aside $500 each month.

The post How to make $26,000 of passive income from ASX shares appeared first on The Motley Fool Australia.

But which ones could be buys this week?

Let's take a look at three with big yields that could be excellent picks for income investors.

APA Group (ASX: APA)

APA could be a strong option for income investors. It owns and operates a large portfolio of energy infrastructure assets across Australia, including gas pipelines, processing facilities, storage assets, and electricity transmission infrastructure.

These are important assets that help move energy around the country.

A large portion of APA's earnings is also supported by long-term contracts and regulated revenue, which gives the business good visibility over future cash flows.

That has helped APA build a long record of growing its distributions.

Management is expecting FY 2027 dividends of 59 cents per share, up from 58 cents in FY 2026.

Based on its current share price of $10.81, this represents a forward dividend yield of approximately 5.5%.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share for income investors to consider is the HomeCo Daily Needs REIT.

It is a property company that owns neighbourhood retail, large-format retail, healthcare, and other properties focused on everyday spending.

Its tenants include supermarkets, pharmacies, healthcare providers, childcare operators, and other businesses that tend to remain well used through different economic conditions. This creates a relatively defensive source of rental income.

More positives are that HomeCo Daily Needs REIT has high occupancy levels and has been growing rental income across its portfolio.

This is expected to underpin a dividend of 8.6 cents per share in FY 2027. Based on its current share price of around $1.11, this would mean a very large dividend yield of approximately 7.7%.

Universal Store Holdings Ltd (ASX: UNI)

A final ASX dividend share for income investors to look at this week is Universal Store.

The youth fashion retailer operates Universal Store, Perfect Stranger, and Thrills, giving it exposure to several different customer groups and price points.

Across these brands, Universal Store has built a clear position in the youth fashion market. Its stores are carefully curated, while its growing portfolio of owned brands gives the company more control over margins and product.

The retail industry has been a tough place to be recently, but that hasn't stopped Universal Store from growing its sales, profits, and dividends strongly.

The good news is that the market expects this trend to continue in FY 2027. It is forecasting a fully franked dividend of 46 cents per share.

Based on its current share price of $7.09, this represents a generous 6.5% dividend yield.

The post 3 excellent ASX dividend shares with 5.5% to 7.7% yields appeared first on The Motley Fool Australia.

There are calculators online, such as the federal government's Moneysmart calculator, which can show you how much in today's dollars you are likely to have at retirement, depending on your current circumstances.

This is extremely useful as it allows you to adjust your superannuation contributions if you feel you'll be falling short of what you need.

But how do you figure out what you need in the first place?

What is a comfortable retirement?

According to the Association of Superannuation Funds of Australia's (ASFA) retirement standard, singles need $56,166 in income per year to have a comfortable retirement, while couples need $78,998.

Their definition of a comfortable retirement involves the ability to afford top-level private health cover, to own and maintain a reasonable car, to travel occasionally and to afford social activities.

Keep in mind, though, that ASFA's standard assumes you own your own home and also draw a part pension once you hit the age of 67.

How much superannuation do I need to earn $70,000 per year in passive income?

Today we're assuming you're aiming for an income stream of $70,000 per year.

I will calculate this on the basis of dividends alone, with no drawdown of capital.

If you were able to earn a very high dividend yield of 10%, you'd need just $700,000 in retirement savings.

I'd suggest this level of earnings is unsustainable.

If you earned just 5% you'd need double this, at $1.4 million.

But I'd argue that with the benefit of franking credits, this is aiming too low.

So let's assume you could earn 7.5%. In this case, you'd need $933,333 in superannuation savings.

Franking credits are crucial to this equation. If you invest in fully franked dividends, you get back all the tax the company has already paid.

This is because retirees are not taxed on their superannuation earnings.

In practical terms, this means a share paying a 5% dividend yield actually pays 7.14% once franking credits are included.

So what shares might help hit this target?

Real estate investment trusts can be solid investments.

Digico Infrastructure REIT (ASX: DGT) pays a 4.65% dividend, albeit unfranked, GPT Group (ASX: GPT) pays 5.38%, and Centuria Office REIT (ASX: COF) pays 11.36%.

Infrastructure stocks such as APA Group Ltd (ASX: APA) and toll roads operator Atlas Arteria Ltd (ASX: ALX) pay healthy dividends of 5.33% and 8.98%, respectively.

Among the utilities, Origin Energy Ltd (ASX: ORG) is paying 5.14% fully franked, AGL Energy Ltd is paying 5.9%, and Telstra Ltd (ASX: TLS) is paying 4.34%, 90% franked.

In the financial services sector, Regal Partners Ltd (ASX: RPL) is paying 11.53%, Bank of Queensland Ltd (ASX: BOQ) is paying 6.08%, and Westpac Banking Corporation (ASX: WBC) is paying 4.45%.

How to give your super a boost

If you want to top up your superannuation, it's also worth reading up on concessional contributions, which are contributions you can make to your superannuation each year up to a cap of $32,500, which are only taxed at 15%.

Keep in mind that the $32,500 cap includes any employer contributions and salary sacrifice contributions.

The post How much superannuation do I need to earn $70,000 per year in passive income? appeared first on The Motley Fool Australia.

Investing for passive income through superannuation makes sense to me for various reasons. I believe the low tax rate is a key benefit.

Remember that the net income we can use for spending is what we receive from our investments after tax. A full-time working Australian may lose a third (or more) of the received passive income to tax – it depends on what tax bracket they're in.

Due to the above, Australians can benefit from superannuation because of the lower tax rate.

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

Each Australian's household tax position is different, so we'll just look at targeting a certain passive income level, without talking about tax for the rest of the article.

How much is needed in superannuation for $6,500 of monthly passive income?

Receiving $6,500 per month in dividends translates into $78,000 annually. I'd bet most Australians would love to receive that level of dividends each year without having to do any further work for the money.

One of the main questions Aussies need to think about is what sort of investments they want to own and what dividend yield comes with that investment.

For example, a portfolio with a dividend yield of 6.5% can be half the size of a portfolio with a dividend yield of 3.25% when targeting $78,000 of yearly income (or any other income goal).

This means that for a 6.5% yield, the portfolio would need to be $1.2 million, whereas it would need to be $2.4 million at a 3.25% yield.

Using a middle value, a 5% dividend yield would require a $1.56 million portfolio to generate an average of $6,500 in monthly passive income.

The final dividend yield I'll note is 4%. It would take a $1.95 million portfolio value to unlock $78,000 of annual dividends.

The types of ASX dividend shares I'd look at

There are plenty of ASX dividend shares that superannuation investors can use to invest in superannuation, in their personal name, or through other structures.

Some of the stocks with lower yields that I'd look at are Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), L1 Long Short Fund Ltd (ASX: LSF), Lovisa Holdings Ltd (ASX: LOV), Wesfarmers Ltd (ASX: WES) and APA Group (ASX: APA).

Turning to investment options with higher dividend yields, I'd consider names like Future Generation Australia Ltd (ASX: FGX), Telstra Group Ltd (ASX: TLS), WCM Quality Global Growth Fund (ASX: WCMQ), Centuria Industrial REIT (ASX: CIP), Rural Funds Group (ASX: RFF), Charter Hall Long WALE REIT (ASX: CLW), Dexus Industria REIT (ASX: DXI), PM Capital Global Opportunities Fund Ltd (ASX: PGF) and Hearts and Minds Investments Ltd (ASX: HM1).

The post How much is needed in superannuation to target a $6,500 monthly passive income? appeared first on The Motley Fool Australia.

Super remains a cornerstone of retirement planning, but a diversified basket of dividend-paying companies may give investors greater flexibility and regular cash flow.

Start with dependable income

A successful superannuation portfolio isn't necessarily about chasing the highest dividend yields. Instead, investors should look for companies with resilient earnings, sustainable payouts and the potential to grow dividends over time.

Woolworths Group Ltd (ASX: WOW) is one example. Supermarkets may not be the most exciting businesses, but Australians continue buying groceries and household essentials through different economic conditions.

Diversification is also important. Building a portfolio dominated by banks or miners can create significant exposure to a particular part of the economic cycle.

Add infrastructure income

APA Group (ASX: APA) could provide another source of diversification for the superannuation portfolio.

APA owns and operates energy infrastructure, including gas pipelines and renewable energy assets. That means its revenue is linked more closely to essential infrastructure and contracted arrangements than simply the underlying commodity price.

For an income-focused portfolio, adding businesses with different earnings drivers can help reduce reliance on any single sector.

Look for dividend consistency

There aren't many ASX companies with a dividend history quite like Sonic Healthcare Ltd (ASX: SHL).

The healthcare giant has paid dividends since 1994 and has increased its payout almost every year since then. The exceptions were 2011 and 2012, when Sonic maintained rather than increased its dividend.

In FY26, Sonic continued its progressive dividend policy, lifting the payout by 1 cent per share to $1.08.

Based on the current share price, that's a dividend yield of approximately 5.4% before franking credits, or roughly 7% including franking credits.

Of course, a high yield is only attractive if the underlying earnings can support it.

Don't ignore dividend growth

Wesfarmers Ltd (ASX: WES) is another potential superannuation portfolio candidate.

Its dividend yield isn't normally among the highest on the ASX. But that's not necessarily a problem.

Wesfarmers has historically focused on reinvesting in its businesses, improving operations and allocating capital towards growth opportunities. If those investments translate into higher earnings, they could support larger dividends over time.

Foolish takeaway

Generating $50,000 a year requires meaningful capital. For example, a portfolio yielding 5% would need $1 million invested to produce $50,000 in annual income before considering tax, franking credits and changes in dividends.

The key is not simply finding the biggest yields. A diversified superannuation portfolio that combines dependable income, dividend growth, and resilient businesses may offer a more sustainable path to retirement cash flow.

The post How to build a superannuation portfolio generating $50,000 a year appeared first on The Motley Fool Australia.

Starting early brings with it the benefits of compound interest and can make what seems like a large savings task much more achievable.

Savings currently falling short

It's true that, on average, people's superannuation savings at age 60 fall well short of being able to generate the $80,000 per year in passive income I am looking at today.

Figures from the Association of Superannuation Funds of Australia show that men aged 60-64 have on average $395,852 in superannuation while women have $313,360.

So, how much would you need in your super to generate $80,000 per year in passive income?

Let's do the sums.

If you were able to generate a 10% average dividend yield on your investments, which would be a difficult task, you'd need $800,000 in superannuation.

If you were getting just a 5% return, you would need double this, at $1.6 million.

I would argue that with the benefit of franking credits, retirees can aim for a return somewhere in the midpoint. So, to generate $80,000 from a 7.5% return, you would need to have $1.06 million in retirement savings.

Franking credits are crucial to this equation. If you invest in fully franked dividends, you get back all the tax the company has already paid.

This is because retirees are not taxed on their superannuation earnings.

In practical terms, this means a share paying a 5% dividend yield actually pays 7.14% once franking credits are included.

Which shares might help you hit the $ 80,000-per-year goal?

Infrastructure stocks such as APA Group Ltd (ASX: APA) and toll roads operator Atlas Arteria Ltd (ASX: ALX) pay healthy dividends of 5.36% and 8.86%, respectively.

In the resources sector, iron ore miner Fortescue Group Ltd (ASX: FMG) pays 6.07%, Santos Ltd (ASX: STO) pays 3.67%, and Woodside Energy Group Ltd (ASX: WDS) pays 5.04%.

In the financial services sector, Regal Partners Ltd (ASX: RPL) is paying 11.06%, Bank of Queensland Ltd (ASX: BOQ) is paying 6.03%, and Westpac Banking Corporation (ASX: WBC) is paying 4.39%.

How to check your progress

If you're keen to check how much superannuation you're likely to have when you retire, it's worth checking out the federal government's Moneysmart website, which has an easy to use calculator.

And if you want to top up your superannuation, it's also worth reading up on concessional contributions, which are contributions you can make to your superannuation each year up to a cap of $32,500, which are only taxed at 15%.

Keep in mind that the $32,500 cap includes any employer contributions and salary sacrifice contributions.

The post How much superannuation do I need to earn $80,000 per year in passive income? appeared first on The Motley Fool Australia.

Pleasingly, superannuation has a lower tax rate than many companies, trusts and individuals. The way superannuation works also means it's very easy to invest for the long term.

In my view, receiving passive income is one of the top benefits of owning shares. It's really rewarding to receive passive income from owning ASX shares.

Getting paid money each year for no ongoing effort seems like a compelling arrangement to me.

One of the best benefits about superannuation is that Australians lose less of their passive income return to tax. I think it's important to remember that it's the after-tax passive income that investors can use.

If an Australian working full-time receives passive income in their name, they could lose a third (or more) of that dividend income to income tax, which makes the passive income return less appealing.

Following proposed taxation changes earlier this year, superannuation could be the best place to invest for passive income because of the lower tax rate in the accumulation phase of wealth building, compared to an individual owning income-paying assets as a full-time earner.

In retirement, an Australian's superannuation tax rate could be as low as 0%. We can't get a lower tax rate than that!

Of course, every household's taxation situation may be different, so I'll just look at targeting a particular dividend goal and ignore tax rates for the rest of the article.

How much is needed in superannuation for $70,000 of annual passive income?

Receiving $70,000 of annual passive income sounds great to me. I'd like to get there one day, though I'm a long way off the goal.

Australian superannuation investors should think about what sort of investments they want to own and the scale of the dividend yield of that asset.

In my opinion, ASX shares are the best choice for passive income, partly because of the great franking credits that are attached to dividends.

Based on all of the above, we can see that the required superannuation balance to earn $70,000 each year depends on the dividend yield of the portfolio.

For example, if a portfolio has a 5% dividend yield, it'd require $1.4 million, a 4% dividend yield would require $1.75 million and a 7% dividend yield would require a $1 million portfolio.

It depends on which ASX shares investors choose.

The types of ASX dividend shares I'd buy

There are lots of appealing ideas on the ASX that can deliver good dividend yields.

For example, we can choose wonderful operating companies, fantastic listed investment companies (LICs) and impressive yet discounted real estate investment trusts (REITs).

Some of the names I'd consider with low-to-medium dividend yields but with good growth and/or payout stability include L1 Long Short Fund Ltd (ASX: LSF), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES), Lovisa Holdings Ltd (ASX: LOV) and APA Group (ASX: APA).

Some of the businesses with larger dividend yields include Future Generation Australia Ltd (ASX: FGX), Hearts and Minds Investments Ltd (ASX: HM1), Dexus Industria REIT (ASX: DXI), Telstra Group Ltd (ASX: TLS), Charter Hall Long WALE REIT (ASX: CLW), Rural Funds Group (ASX: RFF), Centuria Industrial REIT (ASX: CIP), MFF Capital Investments Ltd (ASX: MFF) and WCM Global Growth Ltd (ASX: WQG).

The post How much is needed in superannuation to target a $70,000 annual passive income? appeared first on The Motley Fool Australia.

Once retirement arrives, though, the size of the balance is only part of the picture. The next question becomes what sort of lifestyle that money could support and how long it might need to last.

For someone hoping to draw $50,000 a year, there are a few things I would think about before assuming the numbers will work.

Start with the withdrawal rate

Taking $50,000 from a $1 million super balance represents a 5% annual withdrawal.

On the surface, that does not look unreasonable. If the portfolio earned an average return of 5% after fees, a $50,000 withdrawal would roughly match those returns in the first year. Stronger investment returns could allow the balance to grow, while weaker years could see it fall.

Of course, markets do not deliver the same return every year.

A portfolio might rise strongly one year and fall the next. That means the sustainability of a $50,000 annual income would depend on what the investments earn over many years, rather than whether they happen to generate 5% in any individual year.

Which ASX shares would I buy?

One way to generate $50,000 of income a year would be to build a portfolio averaging a dividend yield of 5%.

There are certainly ASX shares capable of contributing meaningful dividend income, but I would not force the entire portfolio into high-yield investments just to hit that figure.

I would rather own a mixture of income and growth investments.

APA Group (ASX: APA), for example, could provide exposure to infrastructure and regular dividends. Macquarie Group Ltd (ASX: MQG) offers another source of income while retaining opportunities to grow across its global businesses.

I would also want investments with stronger capital growth potential, potentially including international shares through an exchange-traded fund (ETF) such as the Vanguard MSCI Index International Shares ETF (ASX: VGS).

Some years, dividends might cover much of the $50,000. In others, I would be comfortable selling a small portion of the portfolio to cover the balance.

Retirement income does not have to come entirely from dividends.

Inflation changes the calculation

Inflation is another challenge if retirement lasts 20 or 30 years.

A $50,000 annual income today will not buy the same amount decades from now.

If living costs rise by 2.5% each year, for example, an investor would eventually need considerably more than $50,000 just to maintain the same spending power.

That is one reason I would keep a meaningful allocation to growth assets after retiring.

If the portfolio can continue increasing in value over time, withdrawals may also be able to rise without putting as much pressure on the remaining balance.

Foolish takeaway

So, could $1 million in superannuation provide $50,000 a year in retirement?

I think it could.

A 5% starting withdrawal is not an extreme figure, but I would want the portfolio to keep working well beyond the first few years of retirement.

For me, the stronger approach would combine income, long-term growth, diversification, and some flexibility around withdrawals. That gives the $1 million balance a good chance of supporting a comfortable income while still having plenty left to fund the years ahead.

The post Could a $1 million superannuation balance provide $50,000 a year in retirement? appeared first on The Motley Fool Australia.

It's the middle ground which can act as a solid base, but it's not quite enough to live off.

But what if you didn't need to live off your superannuation balance alone? What if your superannuation generated enough passive income to partially, or even fully, support you when you quit work?

So, how much passive income could a $550,000 super balance realistically generate each month?

Let's take a look.

What passive income can I earn off a $550,000 superannuation balance?

To calculate your passive income, you need to multiply your total superannuation balance by the overall dividend yield of your portfolio.

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

So, as your dividend yield increases, the passive income you can earn off your $550,000 superannuation balance also goes up.  

Also note, the figures are based on cash dividends before any tax or franking credit benefits.

What can I earn off a 2% to 3% yielding portfolio?

If your portfolio yields 2% or 3%, you'll earn around $11,000 or $16,500, respectively.

That's because $550,000 x 2% = $11,000 per year in dividend payments, and $550,000 x 3% = $16,500 in dividends.

Around this level, you could invest in major long-standing ASX blue-chip companies like Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), CSL Ltd (ASX: CSL), or Macquarie Group Ltd (ASX: MQG). These all yield around the 2% to 3% level at the time of writing.

What can I earn if my portfolio yields around 4% or 5%?

If your portfolio has a slightly higher dividend yield, closer to 4% or 5%, you could earn a much higher dividend income of around $22,000 or $27,500, respectively.

There are still plenty of good-quality stocks yielding around this level. For example, mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO). Major banks National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) also yield around the 4% to 5% range. As do energy majors Woodside Energy Group Ltd (ASX: WDS) and APA Group (ASX: APA). 

What if I want to invest my superannuation in high-yielding shares around 10% or even higher?

If you have the stomach to withstand the volatility and elevated risk, you could earn a much higher passive income from high-yielding stocks.

At a 10% yield, a $550,000 balance could earn about $55,000.

And there are still several options paying around this level too. If you're after a single stock, then GQG Partners Inc (ASX: GQG) and IPH Ltd (ASX: IPH) both yield above 11% at the time of writing.

Another option is to invest your super into an ETF like the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX), the BetaShares Global Cybersecurity ETF (ASX: HACK), or the iShares S&P 500 ETF (ASX: IVV). These all yield 10% or higher at the time of writing.

The post How much passive income can I earn off a $550,000 superannuation balance? appeared first on The Motley Fool Australia.

All four major banks now expect the Reserve Bank to tighten again this year.

A term deposit paying close to 5% becomes a competitor for income money.

The three companies below each deal with that problem in different ways.

1. Macquarie Group Ltd (ASX: MQG)

Macquarie Group is the one of the few companies that benefits from higher rates.

The company earns on client cash balances, and its markets businesses tend to do better when volatility rises.

FY26 net profit rose 30% to $4.85 billion and earnings per share climbed 30% to $12.77.

Return on equity recovered to 14.0% and assets under management reached $748 billion.

The full-year dividend was $7.00 per share, though franked at only 35%.

Today, the shares trade on a price-to-earnings ratio near 19.9 with a 2.78% yield.

The trade-off is a dividend that grows with earnings.

2. Transurban Group (ASX: TCL)

Transurban Group is the classic rate-sensitive income stock, and it has been treated accordingly.

The shares closed at $13.63, within a few cents of a 52-week low, and are down 4.82% over twelve months.

The trailing yield is 5.01%.

Despite all of this, the company's operating result was solid.

Proportional toll revenue rose 6.7% to $3,982 million and proportional EBITDA rose 7.5% to $3,063 million.

Free cash increased 5.1% to $2,111 million.

The FY26 distribution was 69.0 cents per security, up 6.2%, and management has guided to 72 cents in FY27.

Proportional drawn debt sits at $27.1 billion with gearing of 37.4%.

The weighted average cost of Australian dollar debt is 4.8% and 87.8% of debt is hedged.

That hedging is what buys the company time if rates keep climbing.

Toll escalation is linked to inflation, so the same forces pushing rates higher also lift Transurban's revenue.

Chief executive Michelle Jablko noted that despite the macroeconomic backdrop the group's roads proved relatively resilient through the year.

3. APA Group (ASX: APA)

APA Group has been the best performer of the three, rising 22.23% over twelve months to $10.83.

The company's dividend yield is 5.32%, though franked at only about 31%.

FY26 underlying EBITDA rose 8.3% to $2,183 million, above the midpoint of guidance.

Free cash flow rose 3.2% to $1,118 million and the distribution lifted 1.8% to 58.0 cents per security.

FY27 guidance calls for EBITDA of $2,260 million to $2,340 million and a 59.0 cent distribution.

The organic growth pipeline has expanded to roughly $3.5 billion.

Chief executive Adam Watson summed it up.

Our underlying earnings were up 8.3% and above the mid-point of guidance, supported by new assets and ongoing strong operational performance.

The catch is the price.

Brokers are split between hold and sell ratings, with an average target below the current share price.

Foolish takeaway

The instinct when rates rise is to sell every yield stock in sight.

That is too blunt, because these three respond to the same cash rate in opposite directions.

I would rather own a 5% distribution that grows with inflation than a term deposit that does not.

Transurban is the ASX dividend shares idea I find most interesting today, purely because the market has already marked it down.

Macquarie is the one I would be happiest holding if the Reserve Bank continues to look to increase rates.

The post Top 3 ASX dividend shares to buy if interest rates go up appeared first on The Motley Fool Australia.

So how much do you need? What most of us aim for is a comfortable retirement, which means something different to everyone.

But it's fair to say that an income stream of $3,000 per week would provide a standard of living most people would deem very comfortable.

How much is needed for a comfortable retirement?

Indeed, the Association of Superannuation Funds of Australia (ASFA) estimates singles will need $55,923 per year to fund a comfortable retirement. So $3,000 per week, or $156,000 per year, is well above this.

The ASFA figure does assume a retiree owns their own home and draws a part pension from the age of 67 when they become eligible.

So, how much superannuation would you need to generate $3,000 per week in passive income?

For simplicity's sake, I will assume that a retiree is living off of dividends and not drawing down any capital.

Naturally, how much you would need in superannuation savings depends on what sort of dividend yield you can regularly rely on.

If the figure was just 5%, you would need $3.12 million in superannuation savings.

I would argue that this figure is too low, as retirees who are paying a zero per cent tax rate get the benefit of franking credits – that is, they get paid back the tax already paid by the companies whose shares they own.

In practice, this means that if a company is paying a 5% dividend yield, what is called the "grossed up" yield comes out at 7.14%.

If you were able to maintain a 10% dividend yield, you'd only need $1.56 million in superannuation, but I'd argue that somewhere in the middle, let's call it 7.5%, is realistic.

At this level you'd need $2.08 million in retirement savings.

Which shares deliver good dividend yields?

So, what are some shares you might consider investing in to deliver these sorts of returns?

Keep in mind that companies with excessively high returns might not be able to sustain them over time.

A class of shares that tends to offer stability over time is infrastructure. In this sector, gas pipeline operator APA Group Ltd (ASX: APA) pays a 5.29% dividend yield, 31% franked, while toll roads operator Atlas Arteria Ltd (ASX: ALX) pays 8.84% with no franking.

Among financial services stocks, Regal Partners Ltd (ASX: RPL) is paying 11.15%, fully franked, while among the banks, Westpac Banking Corporation (ASX: WBC) is paying 4.4%.

Retailer Universal Store Holdings Ltd (ASX: UNI) is paying 5.67% (fully franked), while major retailer Coles Ltd (ASX: COL) is paying 3.29% fully franked.

There are also a diverse array of exchange traded funds such as the Betashares Australian Dividend Harvester (ASX: HVST) which are focussed on dividend payouts, with this one yielding 5.53%.

So as you can see, it's possible to build a portfolio returning a decent yield, which can help hit your income targets.

The post How much is needed in superannuation for $3,000 in weekly passive income? appeared first on The Motley Fool Australia.