The error that many investors make is thinking they need a million dollar investment portfolio to make it worth it.

The truth is, you don't need to spend millions, or even hundreds of thousands. Any level of passive income can help contribute to your financial independence and also create a buffer against sharemarket volatility.

So, what could that passive income actually look like?

Let's break it down, using a $50,000 investment portfolio as an example. 

What passive income can I earn off a $50,000 portfolio?

The easiest way to calculate your passive income is by multiplying your total portfolio value by your dividend yield.

But, the tricky part is that the answer varies widely depending on the dividend yield of your portfolio.

For example, $50,000 x 3% = $1,500 per year in dividend payments.

But if your portfolio has a dividend yield of around 6%, your passive income will be double the size. That's because $50,000 x 6% = $3,000 per year in dividend payments. 

And so on. As your dividend yield increases, the passive income you can earn off your $50,000 portfolio also increases.  

These figures are based on cash dividends before any tax or franking credit benefits.

Of course, this type of money isn't going to become a primary income stream, but it'll certainly help create an extra buffer.

Which ASX shares will earn me $2,000 per year in passive income?

To earn an annual passive income of around $2,000, your portfolio will need to yield around 4%.

There is a huge range of ASX dividend shares available that pay around that level, so it's certainly achievable.

For example, Argo Investments (ASX: ARG) pays just a little over the 4% mark at the time of writing. As does WCM Global Growth (ASX: WQG).

Major bank Westpac Banking Corp (ASX: WBC) pays a dividend yield of around 4.2% to its shareholders.

ANZ Group Holdings Ltd (ASX: ANZ) and Transurban Group Ltd (ASX: TCL) both pay a little more. Their dividend yields are around 4.6% and 4.7%, respectively.

Of course, ideally, you'd want a mixture of shares that combine to make a 4% yielding portfolio for diversification reasons, rather than a portfolio of only one stock.

What if I want to earn closer to $4,000 per year? Is that possible?

It's also possible to earn a little more. To earn $4,000 in passive income, you'd need a portfolio that yields 8%. 

Again, there are plenty of ASX shares that yield around this level, but it's worth noting that a higher yield generally comes with higher risk.

The Metrics Income Opportunities Trust (ASX: MOT) is a listed investment trust (LIT) which can give investors direct exposure to private credit investments. The Trust targets a cash yield of 7% per year. It has a total target return of 8% to 10% per year, net of fees and expenses. 

Charter Hall Long WALE REIT (ASX: CLW) and WAM Microcap (ASX: WMI) both yield in the low 7%.

And if you're looking to target higher-yielding ASX shares, there are stocks like intellectual property (IP) service provider IPH Ltd (ASX: IPH), which yields around 9.6% and Centuria Office REIT (ASX: COF), which yields around 11.4%, at the time of writing.

Again, I wouldn't suggest investing solely in high-yield shares in order to earn a higher income. But it's possible to create a portfolio mix including high-yield ASX shares and more reliable or defensive assets to get an over 8% yielding portfolio. 

The post How much passive income can I earn off a $50,000 portfolio? appeared first on The Motley Fool Australia.

Mature Australian businesses have usually built a strong reputation for generating profit, they have a big accounting profit reserve and a history of paying resilient dividends to investors.

When I look at ASX shares with market capitalisations of more than $6 billion, the two businesses below are ones that stick out as good providers of passive income.

Argo Investments Ltd (ASX: ARG)

Argo is a listed investment company (LIC) that provides investors with exposure to a portfolio of ASX blue-chip shares. LICs can give Aussies both diversification and a good dividend yield.

The biggest positions in the portfolio includes BHP Group Ltd (ASX: BHP), Macquarie Group Ltd (ASX: MQG), Rio Tinto Ltd (ASX: RIO), Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ) and Telstra Group Ltd (ASX: TLS).

As you can see, Argo gives investors a significant level of allocation to ASX blue-chip shares.

It has a pleasingly low cost, with a management expense ratio of just 0.14%, which is one of the cheapest in the LIC sector. Plenty of exchange-traded funds (ETFs) have a higher cost than that.

Since the GFC, the ASX blue-chip share has reduced the annual dividend a couple of times. In most other years, the annual dividend has been hiked. Its current grossed-up dividend yield is 6%, including franking credits.

It's currently trading at a mid-teen double-digit discount to its net tangible assets (NTA).

Coles Group Ltd (ASX: COL)

Coles is another quality ASX blue-chip share Aussies can buy.

As Australia's second-largest supermarket business, it has a strong market position to continue generating a pleasing level of passive income for shareholders.

Coles has increased its annual dividend each year since 2019, which is a pleasing level of dividend consistency compared to many other large businesses. The steady growth of revenue and net profit has allowed the business to be a consistent dividend provider for investors.

At the time of writing, Coles' last two half-year dividends come to 73 cents per share. That's a grossed-up dividend yield of 4.5%, including franking credits.

The business is steadily building its market position thanks to an expanding store network, rising e-commerce sales and improving profit margins.

In my view, Coles has a promising long-term future – it's a very important business for the Australian economy and could expand into pet retail and vets if the possible Greencross transaction goes ahead.

Overall, there's a lot to like about these ASX blue-chip shares, though they're not the only great businesses to consider.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

The idea that you can invest your money, set and forget, and earn a constant and easy passive income is attractive to pretty much anyone. 

After all, passive income can give you both financial independence and also create a buffer against share market volatility.

But the question always is, what does that passive income actually look like?

Let's break it down, using a $100,000 investment portfolio as an example. 

What passive income can I earn off a $100,000 portfolio?

The easiest way to calculate your passive income is by multiplying your total portfolio value by your dividend yield.

The tricky part is that the answer varies widely depending on the dividend yield of your portfolio.

For example, $100,000 x 3% = $3,000 per year in dividend payments.

But if your portfolio has a dividend yield of around 6%, your passive income will be double the size. That's because $100,000 x 6% = $6,000 per year in dividend payments. 

And so on. As your dividend yield increases, the passive income you can earn off your $100,000 portfolio also increases.  

These figures are based on cash dividends before any tax or franking credit benefits.

What ASX shares will earn me $4,000 per year in annual passive income?

To earn an annual passive income of around $4,000, your portfolio will need to yield around 4%.

There is a huge range of ASX dividend shares available that pay around that level. 

For example, Telstra Group Ltd (ASX: TLS) pays a dividend yield just under 4% at the time of writing. 

Argo Investments (ASX: ARG) pays just a little over the 4% mark. 

Major bank National Australia Bank Ltd (ASX: NAB) pays around a 4.5% dividend yield to its shareholders.

ANZ Group Holdings Ltd (ASX: ANZ) pays a little more, closer to 4.7%.

Of course, ideally, you'd want a mixture of shares that combine to make a 4% yielding portfolio for diversification reasons, rather than a portfolio of only one stock. 

What if I wanted $6,000 per year in passive income, what shares might pay me that?

It's also possible to earn a little more. Again, there are plenty of ASX shares that yield around 6%, which is what you'd need to earn $6,000 per year in passive income from your $100,000 portfolio. 

AGL Energy Ltd (ASX: AGL), for example, pays its shareholders a little under the 6% mark, at closer to a 5.7% yield.

APA Group (ASX: APA) yields around the same level, paying its shareholders around 5.6% at the time of writing.

But there are some options that yield just over 6%, too. Charter Hall Social Infrastructure REIT (ASX: CQE) pays around 6.2%, and Stockland Corporation Ltd (ASX: SGP) pays closer to 6.3%.

The post How much passive income can I earn off a $100,000 portfolio? appeared first on The Motley Fool Australia.

That's what makes these three ASX dividend shares stand out. Each has built a reputation for rewarding shareholders with growing income streams over long periods of time. For income-focused investors, they could be worth a closer look.

APA Group (ASX: APA)

APA Group owns and operates critical energy infrastructure across Australia, including gas pipelines, electricity transmission assets, and renewable energy connections.

Its biggest strength is the essential nature of its assets. Much of APA's revenue comes from long-term contracts, providing relatively stable cash flows regardless of economic conditions. That predictability has helped support one of the most impressive distribution growth records on the ASX.

The ASX dividend share has increased its annual distribution every year since 2004, delivering more than two decades of uninterrupted growth for investors.

The company has lifted its FY26 annual distribution to 58 cents per security. Based on the current share price, that equates to a distribution yield of around 5.6%.

There are risks to consider. APA carries significant debt and remains exposed to regulatory changes and the long-term transition away from fossil fuels. However, its growing exposure to electricity and renewable energy infrastructure could help offset some of those challenges.

Bell Potter expects APA to pay a distribution of 59 cents per security in FY27. Based on the current share price of $10.36, that would represent a forward yield of approximately 5.7%.

Argo Investments (ASX: ARG)

Argo Investments is one of Australia's oldest listed investment companies.

Rather than operating a business directly, this ASX dividend share owns a diversified portfolio of high-quality ASX shares. Some of its largest holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Rio Tinto Ltd (ASX: RIO).

Its strength lies in that diversification. Investors gain exposure to dozens of leading Australian companies through a single investment, helping reduce company-specific risk.

Argo has paid dividends every year since its inception in 1946. Even more impressively, those dividends have been fully franked since 1995.

While payouts do not rise every single year, the long-term trend remains strongly positive. Since 2010, shareholders have enjoyed dividend increases in most financial years.

The company recently announced an 8.8% increase in its interim dividend to 18.5 cents per share.

Combined with its previous dividend, Argo's latest two payouts total 38.5 cents per share. At current prices, that translates to a grossed-up dividend yield of approximately 4.3%, including franking credits.

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

Washington H. Soul Pattinson has become something of a dividend-growth machine.

The investment company has increased its annual dividend every year since 1998, putting it on the verge of three decades of consecutive dividend growth.

A key reason for that success is diversification. Soul Patts owns investments across energy, resources, telecommunications, industrial property, building products, agriculture, financial services, electrification, swimming schools, and more.

That broad portfolio helps the ASX dividend share generate cash flow from multiple sources and reduces reliance on any single sector.

Importantly, management doesn't distribute all available cash to shareholders. It retains capital and reinvests it into new opportunities, helping grow future earnings and dividends.

This combination of diversification, disciplined capital allocation, and long-term investment growth has enabled Soul Patts to steadily increase shareholder payouts across a wide range of market environments.

Its two most recent dividends currently equate to a grossed-up dividend yield of approximately 3.5%, including franking credits. For investors seeking a growing income stream, that consistency may be just as valuable as the yield itself.

The post Want a pay rise? These ASX dividend shares keep delivering appeared first on The Motley Fool Australia.

Among the 11 market sectors, consumer discretionary shares are in the lead, up 0.3%, while utilities are the laggard, down 1.9%.

Let's find out how the experts rate three stocks across three different sectors today.

Argo Investments Ltd (ASX: ARG)

The Argo Investments share price is $8.80, down 0.1% today and 3% over the past six months.

Jed Richards from Shaw and Partners has a buy rating on this listed investment company (LIC).

He explained why on The Bull this week:

This listed investment company is trading at a material discount to its underlying asset value, offering an attractive entry point.

It provides broad diversity across leading Australian companies and pays a reliable fully franked dividend yield, which was recently above 4.4 per cent.

Recent results highlight steady income growth and a strong balance sheet. Its conservative style suits investors seeking income and stability.

Buying at a discount enhances long term return potential, while maintaining exposure to high quality Australian equities.

Amcor CDI (ASX: AMC)

The Amcor share price is $54.50, down 0.8% today and 17% over the past six months.

Richards gives Amcor shares a hold rating.

He said: 

This packaging giant continues to face pressure from elevated input costs, particularly linked to higher oil and plastic prices, which have impacted margins. Despite this, the company maintains strong global operations and continues to generate stable cash flow.

A weaker share price provides an attractive dividend yield for income investors.

Recent updates indicate increased costs have been passed through to customers.

Holding is appropriate given its defensive packaging exposure, but upside will likely depend on managing input costs.

Bapcor Ltd (ASX: BAP)

The Bapcor share price is 39 cents, up 1.3% today but down a demoralising 77% over six months.

Mark Elzayed from Investor Pulse has a sell rating on this consumer discretionary share.

Elzayed said: 

Bapcor is an aftermarket automotive parts provider in Australia and New Zealand. It operates the Autobarn, Burson and Autopro brands.

It reported improving sales from turnaround activities between February and April 2026. However, trading conditions had materially deteriorated since late March 2026 in response to the Middle East conflict and an increase in interest rates.

It has reduced fiscal year 2026 earnings guidance on what it provided on February 26, 2026. The company also flagged higher operating costs.

The share price remains under pressure. The stock has fallen from $5.22 on July 14, 2025 to trade at 38 cents on May 21, 2026.

Better options exist elsewhere, in our view.

The post Buy, hold, sell: Argo Investments, Amcor, Bapcor shares appeared first on The Motley Fool Australia.

That's because they have just been named as buy ideas by experts, courtesy of The Bull.

Let's see what they are recommending to investors:

Argo Investments Ltd (ASX: ARG)

The team at Shaw and Partners thinks that this investment company's shares are undervalued at current levels and has named them as a buy.

The broker likes the company due to the discount to its underlying asset value, as well as its attractive fully franked dividend yield. It said:

This listed investment company is trading at a material discount to its underlying asset value, offering an attractive entry point. It provides broad diversity across leading Australian companies and pays a reliable fully franked dividend yield, which was recently above 4.4 per cent. Recent results highlight steady income growth and a strong balance sheet.

Its conservative style suits investors seeking income and stability. Buying at a discount enhances long term return potential, while maintaining exposure to high quality Australian equities.

Commonwealth Bank of Australia (ASX: CBA)

Over at Investor Pulse, it has named CBA shares as a buy. It believes that recent share price weakness has created a buying opportunity for long-term focused investors.

This is especially the case given Investor Pulse's belief that CBA shares could recover once sentiment in the banking sector stabilises. It said:

CBA remains Australia's dominant retail bank. The recent sharp sell-off has created a more attractive entry point for long term investors. The bank generated unaudited cash net profit after tax of $2.7 billion in the third quarter of fiscal year 2026, up 4 per cent on the prior corresponding period. Lending and deposits continued to grow despite a softer economic backdrop.

CBA also maintains strong capital levels and recently paid a fully franked interim dividend of $2.35 a share for the first half of fiscal year 2026. The shares fell heavily following housing concerns flowing from the Federal Budget. We see scope for a recovery once sentiment stabilises.

Kingsgate Consolidated Ltd (ASX: KCN)

Another ASX share that Investor Pulse rates as a buy this week is gold miner Kingsgate.

It highlights its exposure to elevated gold prices as a reason to be positive, commenting:

Kingsgate operates the Chatree gold mine in Thailand and is benefiting from elevated gold prices and improving operational momentum. We like the stock because March quarter gold production reached 21,036 ounces, with record margins of $US2613 per ounce.

Total cash and bullion climbed to $213.4 million, while debt was significantly reduced. Management is also targeting gold production of between 85,000 ounces to 95,000 ounces in full year 2026, supported by stronger grades and ongoing exploration upside near Chatree.

The post Experts recommend CBA and these ASX shares as buys appeared first on The Motley Fool Australia.

Superannuation has a low tax rate compared to individuals, trusts and companies. Plus, it's easy to invest for the long-term through the investment vehicle.

It's important to remember that the net income is an after-tax figure. An Australian working full-time could lose approximately a third of their passive income return to tax.

Therefore, investing in superannuation is a much more appealing prospect compared to other options. Superannuation has a lower tax rate in the accumulation phase than the standard individual tax rates for a full-time earner. In retirement, the tax rate could be 0%.

However, every Australian's tax position is different, so we're going to look at targeting a particular income level without mentioning tax any further.

How much is needed in superannuation for $7,500 of monthly passive income

Receiving $7,500 in dividends per month translates into $90,000 per year. I reckon many Australians would love to receive that level of dividends each year without having to do any ongoing work for it.

Australian investors need to decide what investments they want to own and the dividend yield that comes with that.

A portfolio with a dividend yield of 7% can be half the size of a portfolio with a dividend yield of 3.5% and earn the same level of passive income.

For example, if a portfolio were $1.3 million in size, it would generate $91,000 of annual passive income with a 7% dividend yield. If a portfolio had a dividend yield of 3.5%, the portfolio would need to be $2.6 million in size to generate the same level of cash payments.

To generate almost exactly $90,000 of annual passive income with a 7% dividend yield, an investor would need a portfolio size of $1.286 million.

A 5% dividend yield would require a portfolio size of $1.8 million to make $90,000 annually.

A 4% dividend yield would require a portfolio size of $2.25 million.

The types of ASX dividend shares I'd want to buy

If a superannuation investor is targeting mid-to-higher dividend yields, then I'd look at reliable and discounted real estate investment trusts (REITs), growing companies with a generous dividend payout ratio and listed investment companies (LICs) with a good track record of dividends.

Appealing businesses with a dividend yield of around 5% to 6%, in my view, include WCM Quality Global Growth Fund (ASX: WCMQ), Telstra Group Ltd (ASX: TLS), Rural Funds Group (ASX: RFF), Centuria Industrial REIT (ASX: CIP), Australian Foundation Investment Co Ltd (ASX: AFI) and Argo Investments Ltd (ASX: ARG).

Businesses with a higher dividend yield include Future Generation Global Ltd (ASX: FGG), Future Generation Australia Ltd (ASX: FGX), Hearts and Minds Investments Ltd (ASX: HM1), WCM Global Growth Ltd (ASX: WQG), WAM Leaders Ltd (ASX: WLE), WAM Microcap Ltd (ASX: WMI) and Charter Hall Long WALE REIT (ASX: CLW).

The post How much is needed in superannuation to target a $7,500 monthly passive income? appeared first on The Motley Fool Australia.

Unlike many ASX-listed exchange-traded funds (ETFs) that listed in the last decade or two, Argo is very old and has a demonstrated track record of stability and longevity. It has been operating since 1946, making it one of the oldest companies on the ASX.

LICs are not a high-growth area, but they have unique benefits compared to ETFs and operating companies that makes Argo an appealing choice.

Solid passive dividend income

The business says it provides fully franked sustainable dividends. It has paid dividends every year since inception in 1946 and those payments have been fully franked since 1995.

That doesn't mean the payout will necessarily be bigger every single year. But, since 2010, most financial years have seen a payout increase for shareholders.

In the FY26 half-year result, the business announced that it's going to increase its interim dividend per share by 8.8% to 18.5 cents.

That means the last two dividends to be declared by the business come to 38.5 cents per share, translating into a grossed-up dividend yield of 6.2%, including franking credits, at the time of writing.

There are not many ASX dividend stalwarts that have a higher dividend yield than that.

Diversification

The business does not follow an index, so it gives investors a different exposure than the S&P/ASX 200 Index (ASX: XJO), but it does still invest in a variety of recognisable names.

Some of its biggest positions include BHP Group Ltd (ASX: BHP)), Macquarie Group Ltd (ASX: MQG), Commonwealth Bank of Australia (ASX: CBA), Rio Tinto Ltd (ASX: RIO), Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ), Wesfarmers Ltd (ASX: WES) and Telstra Group Ltd (ASX: TLS).

I like that the risks are spread across a number of businesses, rather than just one. Plus, Argo can switch its portfolio to different investments if one stock goes wrong. This can be contrasted to a concentrated investment such as a bank (a bank is stuck as a bank!).

Great value

A business like Argo is backed by its significant portfolio value. We can price it largely to the underlying value of all of the shares it owns. It seems to be trading very cheaply.

The ASX dividend stalwart regularly tells investors about its underlying value, which is measured with the net tangible assets (NTA) figure.

On 8 May 2026, the business had a pre-tax NTA of $10.48. It's currently trading at a 16% discount, at the time of writing, which is around the biggest discount it has traded within the last 30 years.

I think this is a good time to invest in the business for the long-term.

The post An ASX dividend stalwart every Australian should consider buying appeared first on The Motley Fool Australia.

It's true that investing is a complicated process, with strange apps or websites to navigate, unfamiliar jargon to get one's head around, and money to part with. However, the rewards are so compelling that I think it is essential that Australians who can invest do so, for the sake of their own financial futures.

So with that in mind, let's talk about three ASX shares that I think would make for a perfect pick for a beginner investor today. These ASX shares are all inherently diversified and have a decent track record of delivering real returns for investors over many years – two factors I think are essential for a first investment.

3 ASX shares perfect for beginners

Vanguard Australian Shares Index ETF (ASX: VAS)

First up, we have the ASX's most popular index fund. Like all index funds, this ETF from Vanguard holds every share in an index. In this case, that's the S&P/ASX 300 Index (ASX: XKO). In effect, this means that VAS holds a small portion of all 300 of the largest companies listed on the Australian share market. That's everything from Commonwealth Bank of Australia (ASX: CBA) and Telstra Group Ltd (ASX: TLS) to Ampol Ltd (ASX: ALD) and JB Hi-Fi Ltd (ASX: JBH).

This makes the Vanguard Australian Shares ETF a bet of sorts on the future of the Australian economy as a whole. That has always worked out well for investors in the past.

Argo Investments Ltd (ASX: ARG)

Next up, we have a listed investment company (LIC) in Argo. LICs are companies that own and manage a portfolio of underlying investments on behalf of their investors. Argo has been doing this for decades, managing a collection of some of Australia's best blue-chip stocks. Those ASX shares include CBA and Telstra, as well as Woolworths Group Ltd (ASX: WOW), BHP Group Ltd (ASX: BHP), and Bunnings-owner Wesfarmers Ltd (ASX: WES).

Argo has delivered market-matching returns for decades, and also pays a decent dividend, which usually comes with full franking credits attached.

iShares S&P 500 ETF (ASX: IVV)

Our last stock for a beginner investor today is not really an ASX share. It is another index fund, but this one doesn't hold CBA, Woolies, or Telstra. Instead, it tracks the S&P 500 Index (SP: .INX). This index represents the largest 500 stocks listed on the American markets, just as VAS represents Australia's largest 300 companies. So instead of JB Hi-Fi and Wesfarmers, you are getting exposure to the likes of Apple, Microsoft, Amazon, Coca-Cola, and Netflix.

The US is unquestionably home to many of the world's best businesses. As such, I think it is a mistake for any Australian investor to just stick with our local companies. This index fund is an easy and effective way to add some of the world's best companies to your portfolio.

The post 3 ASX shares perfect for beginners appeared first on The Motley Fool Australia.

When valuations appear full, it can be a good time for investors to consider generating passive income through dividend shares. 

Dividend shares can bring steady passive income should markets correct or stay flat. 

Here are three options to consider with healthy yields right now. 

Argo Investments Ltd (ASX: ARG)

Argo is a listed investment company (LIC) with a diversified portfolio of more than 90 ASX-listed companies. 

It has a healthy track record of consistent dividends dating back more than 20 years. 

This aligns with its ethos, as it aims to provide shareholders with long-term growth as well as reliable dividend income.

Argo released its half-year results to 31 December 2025 on Monday. 

The announcement included an interim dividend worth 18.5 cents per share for the first half of FY2026.

As Sebastian Bowen reported on Monday, this is a record high interim dividend for the company. 

It's important to note the ex-dividend date for this payout has been set for this Friday, 13 February.

This means you need to have bought Argo shares by market close on Thursday to qualify for the payment. 

The updated interim dividend means these ASX dividend shares now give the company a forward dividend yield of roughly 4.2%.

CAR Group Ltd (ASX: CAR)

Car Group is another ASX dividend stock that announced positive news for investors this week. 

On Monday, the company also released half-year results, which included a bumped up dividend payment. 

Car Group announced its next interim dividend will be 42.5 cents per share.

This is a significant jump from the interim dividend of 38.5 cents per share that investors saw last year.

The stock now has a forward dividend yield of 3.16%.

While 3.16% isn't the best yield on the market, it's the consistency of passive income that might attract investors. 

As far as dividend shares go, Car Group has now put together 10 years of consistent increases. 

Qantas Airways Ltd (ASX: QAN)

Qantas is one of Australia's most recognisable ASX dividend shares. 

New data from UBS has projected a cash dividend yield of almost 5% in 2026 including the franking credits.

Macquarie also expects Qantas to deliver a dividend yield of around 5% in FY26.

This is expected alongside further share price gains, which could bring the magical combination of capital gains and passive income. 

Its dividend is also expected to continue to grow through 2030, giving these ASX dividend shares strong long term potential. 

Qantas will release its half-year results on February 26.

The post 3 of the best ASX dividend shares right now appeared first on The Motley Fool Australia.

Ever since, Argo has painstakingly built up a reputation as a conservative steward of investor capital, investing its shareholders' money in blue-chip ASX investments.

With many shareholders across the country entrusting Argo with their capital, there would have been more than a few eyes on this LIC's latest financial results, unveiled this morning.

As we covered at the time, Argo had some decent numbers to show off for its half year ending 31 December 2025.

The company brought in a profit of $130.8 million, up 7.9% from the $121.2 million recorded for the same period in 2024. In some good news for investors, this enabled Argo to reduce its management expense ratio from 0.15% per annum to 0.14%.

Investors are reacting positively this session, with the Argo share price currently up a healthy 1.44% to $9.15 (at the time of writing).

But let's talk about dividends.

Argo shares unveil record interim dividend

One of the most exciting bits of news in today's earnings was undoubtedly the new dividend that was revealed. Argo has elected to fund an interim dividend worth 18.5 cents per share for the first half of FY2026. As is Argo's habit, this dividend will come with full franking credits attached.

This 18.5-cent payout will be the largest interim dividend Argo has ever paid, exceeding last year's 17 cents per share interim dividend by 8.8%.

Together with last September's final dividend, worth 20 cents per share, this will take Argo's 12-month dividend total to 38.5 cents per share.

This latest interim dividend from Argo will be sent to shareholders on 20 March next month. For investors who don't yet own Argo shares but might wish to get a slice of this action, the ex-dividend date for this payout has been set for this Friday, 13 February. That means investors will need to have bought shares by market close on Thursday if they wish to bag a payment.

Argo is also offering a dividend reinvestment plan (DRP). If shareholders so choose, they can opt to receive this dividend as additional Argo shares rather than cash. The cutoff to nominate for the DRP is 17 February next week.

Argo shares currently trade on a trailing dividend yield of 4.04%. However, this new dividend will give the company a forward dividend yield of 4.21%.

The post Own Argo shares? A record dividend has just been announced! appeared first on The Motley Fool Australia.

What did Argo Investments Limited report?

• Half-year profit: $130.8 million, up from $121.2 million last year
• Earnings per share: 17.2 cents, up from 15.9 cents
• Interim dividend: 18.5 cents per share (fully franked), up 8.8%
• Management expense ratio: 0.14%, improved from 0.15%
• Grossed-up annual yield: 6.1% based on the last closing share price

What else do investors need to know?

Argo's investment revenue from its portfolio was flat over the half, but profit was lifted by trading and options income. The company has boosted its fully franked dividend by 37.5% over the past five years, maintaining 100% franking even throughout volatile market conditions.

During the period, Argo made some notable investment changes, adding CSL Ltd (ASX: CSL), Amcor (ASX: AMC), Worley Ltd (ASX: WOR), Rio Tinto Ltd (ASX: RIO), BHP Group Ltd (ASX:BHP) , Generation Development Group Ltd (ASX: GDG), and Clarity Pharmaceuticals Ltd (ASX: CU6), while selling all shares in Healius Ltd (ASX: HLS) and GPT Group (ASX: GPT). The total number of portfolio stocks decreased slightly from 85 to 83.

What did Argo Investments management say?

Managing Director Jason Beddow said:

We considered it appropriate to meaningfully increase the interim dividend. The Board is committed to sustainably growing Argo's fully franked dividends.

What's next for Argo Investments?

Looking ahead, Argo noted the outlook remains highly uncertain given ongoing geopolitical risks and shifting monetary policy, including higher Australian interest rates. The team highlighted Australia's structural advantages, particularly in resources and critical minerals.

Argo plans to keep its diversified approach, spanning more than 80 ASX-listed companies. The company says it aims to provide shareholders with reliable income and long-term capital growth, even through volatile markets.

Argo Investments share price snapshot

Over the past 12 months, Argo Investments shares have risen 1%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

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The S&P/ASX 200 Index (ASX: XJO) closed 1.81% lower at 8,708.8 points as earnings season got underway.

The week began with a commodities rout that pummelled ASX 200 mining shares.

Investors took profits as metals, particularly gold and silver, plunged on news of the US President's Fed chair pick.

On Tuesday, a 0.25% interest rate hike in Australia benefitted the ASX 200 financial sector but created pain for tech.

ASX 200 tech shares fell almost 12% last week. The sector is now down almost 20% in the year to date.

Out of the 11 market sectors, only two finished the week in the green.

Let's review.

Financial shares led the ASX sectors last week

Share price performance varied across the ASX 200 financial sector, which incorporates bank shares, insurers, fund managers, and more.

The Commonwealth Bank of Australia (ASX: CBA) share price soared 6.39% to finish at $158.91 on Friday.

CBA will reveal its 1H FY26 results on Wednesday.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares closed the week at $37.01, up 0.84%.

Westpac Banking Corp (ASX: WBC) shares ascended 1.57% to $39.43.

National Australia Bank Ltd (ASX: NAB) shares fell 0.02% to $43.36.

The Macquarie Group Ltd (ASX: MQG) share price lost 2.05% to close at $207.83.

Among the investment companies and fund managers, Washington H. Soul Pattinson and Co Ltd (ASX: SOL) shares fell 4.09% to $37.01.

GQG Partners Inc (ASX: GQG) shares rose 7.96% to $1.70.

Shares in Argo Investments Ltd (ASX: ARG), which reports on Monday, descended 0.77% to $9.02 apiece.

Among the financial services providers, AMP Ltd (ASX: AMP) shares fell 2.94% to $1.65.

AMP will release its 1H FY26 results on Thursday.

The Challenger Ltd (ASX: CGF) share price dropped 3.15% to $8.92.

Buy now, pay later share Zip Co Ltd (ASX: ZIP) fell 10.19% to $2.38.

Among the ASX 200 insurers, Medibank Private Ltd (ASX: MPL) shares fell 1.08% to $4.57.

The QBE Insurance Group Ltd (ASX: QBE) share price ascended 2.23% to $20.18.

Insurance Australia Group Ltd (ASX: IAG) shares rose 1.71% to $7.73.

IAG will release its 1H FY26 results on Thursday.

See our earnings calendar to find out when the companies you're invested in will announce their dividends.

ASX 200 market sector snapshot

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

Over the five trading days:

The post ASX 200 financials flew but tech and mining shares faltered last week appeared first on The Motley Fool Australia.

Choosing those shares is the hard part, of course. With so many options on the ASX alone, it can be overwhelming to sift through the wheat to find the proverbial chaff.

To make things easier, I've concocted a simple, three-stock ASX share portfolio that I think any investor, beginner or veteran, can construct with confidence if they are hoping to build long-term wealth.

A simple ASX stock portfolio for building wealth

First up, investors can consider investing in Argo Investments Ltd (ASX: ARG). Argo is a listed investment company (LIC). This means it holds an underlying portfolio of investments, which the company manages on behalf of its shareholders. In Argo's case, these underlying investments are mostly blue-chip ASX shares, ranging (as of 31 December) from BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) to Santos Ltd (ASX: STO) and Aristocrat Leisure Ltd (ASX: ALL).

Since Argo manages this portfolio, investors can sit back and forget about buying and selling the right ASX shares. In this way, Argo is a fantastic choice for investors who want to invest in Australian shares but are happy to outsource the hard work.

In that vein, MFF Capital Investments Ltd (ASX: MFF) is a complementary investment to Argo. MFF is another LIC. Instead of holding a portfolio of Australian shares, it opts for the best stocks on the American markets to build wealth for shareholders. MFF has always followed a long-term buy-and-hold mindset. Many of its largest holdings, including Meta Platforms, Google owner Alphabet, Mastercard, and American Express, have been in its portfolio for years.

Adding companies of this world-leading calibre to a portfolio is, in my view, a great way to complement Argo's Australian blue chips.

Our final investment is another inherently diversified, passive-friendly choice. It is the Vanguard Diversified High Growth Index ETF (ASX: VDHG). This exchange-traded fund (ETF) is really a collection of different index funds. It offers investors exposure to the entire ASX, as well as international markets, emerging markets, and international small companies. It also has a small allocation to fixed-interest investments.

This 'ETF of ETFs' is a highly diversified passive investment that offers exposure to almost all corners of global markets.

Foolish takeaway

This simple three-stock portfolio may suit an investor looking to passively build wealth using stocks. You are getting some of the ASX's most reliable blue-chip shares through Argo. MFF complements them with some of America's best companies, while Vanguard's VDHG ETF adds a layer of diversification to the mix. If I were starting an investing journey in 2026, dividing your capital equally between these three investments would, at least in my view, be a good place to start building wealth.

The post Any ASX investor can use this simple 3-stock portfolio to build wealth appeared first on The Motley Fool Australia.

At the time of writing, the listed investment company (LIC)'s shares are up 0.32% to $9.15.

By comparison, the S&P/ASX 200 Index (ASX: XJO) is slightly higher by 0.1%.

While today's announcement is mostly administrative, it provides useful visibility for income-focused investors.

Let's take a look at what's ahead for the start of the year.

Key dates now locked in

According to the release, Argo confirmed the key dates tied to its half-year results and interim dividend for early 2026.

The company will release its half-year results for the period ending December 31, 2025, on Monday, February 9, 2026. That announcement will also include confirmation of the interim dividend, subject to board approval.

For shareholders, the important dividend dates are:

• Ex-dividend date: Friday, 13 February 2026

• Record date: Monday, 16 February 2026

• Last day to elect the DRP or DSSP: Tuesday, 17 February 2026

• Dividend payment date: Friday, 20 March 2026

Why this matters for income investors

Argo is widely held by investors seeking steady, tax-effective income rather than rapid capital growth. As a long-established LIC, its appeal lies in diversification, low turnover, and consistent fully-franked dividends over time.

While today's announcement does not reveal how large the interim dividend will be, it does give shareholders a clear roadmap for early 2026. That can be very useful for retirees and self-managed super fund investors who rely on predictable income streams.

Argo's most recent final dividend for 2025 was 20 cents per share, fully franked. Over the longer term, the company has built a strong reputation for maintaining dividends through market cycles, supported by a conservative investment approach.

A steady performer in a volatile market

The relatively muted share price reaction reflects the administrative nature of the update. There was no change to earnings guidance or portfolio positioning, and nothing unexpected for investors already familiar with Argo's dividend pattern.

That said, the shares continue to trade at a modest premium to net tangible assets, which is common for well-regarded LICs with long dividend track records.

Foolish Takeaway

Today's update is unlikely to shift Argo's share price in the short term, but it reinforces the stock's position as a dependable income option.

With key dividend dates now confirmed for early 2026, investors have greater clarity around timing, which matters for anyone planning regular income.

That helps explain why Argo continues to attract income-focused investors, even though the share price has moved little over the past year.

The post Argo just locked in its key dates for 2026. Here's what investors need to know appeared first on The Motley Fool Australia.

What did Argo Investments report?

• Maximum of 37 million shares to be bought back on market
• Total shares on issue: 758,789,060
• Buy-back will run from 2 January 2026 to 31 December 2026
• Macquarie Securities (Australia) Ltd appointed as broker
• Buy-back to be conducted in Australian dollars (AUD)
• No security holder approval required

What else do investors need to know?

The buy-back is intended as part of Argo Investments' ongoing capital management strategy. By renewing its on-market buy-back facility for another 12 months, the company is providing itself an additional lever to support its share price and return surplus capital to shareholders when appropriate.

The buy-back does not specify a minimum number of shares to be purchased, giving the company flexibility to act in shareholders' best interests depending on market conditions. Shareholders are not required to approve this buy-back.

What's next for Argo Investments?

The buy-back program gives Argo Investments the ability to manage its capital more efficiently, potentially enhancing returns for existing shareholders. The company will review market opportunities throughout the year and adjust the pace and scale of buy-backs as needed.

Looking ahead, continued focus on disciplined capital management is likely to remain a core part of Argo's strategy, with an eye on delivering steady returns for investors.

Argo Investments share price snapshot

Over the past 12 months, Argo Investments shares have risen 2%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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If an investor wishes to take a path of lesser resistance, they only need to buy one Aussie stock for lifelong income.

However, if an investor is only going to buy one stock, it should arguably be one that is inherently diversified. Buying a company like Telstra Group Ltd (ASX: TLS) or Commonwealth Bank of Australia (ASX: CBA) won't cut it, as it opens one up to severe industry risk.

Luckily, there are quite a few Aussie dividend stocks that do fit the bill if an investor wishes to buy one income-producing stock to set them up for life.

Buying an Aussie dividend stock for lifelong income

It's my view that buying any one of the following Aussie stocks (or exchange-traded funds (ETFs)) will deliver that kind of sustainable income.

These Aussie income stocks can set anyone up for life.

To start with, an income-seeking investor could opt for either Argo Investments Ltd (ASX: ARG) or the Australian Foundation Investment Co Ltd (ASX: AFI). Both of these stocks are listed investment companies (LICs) that have been around for decades and own vast portfolios of underlying shares within them. These diversified portfolios, which are built on blue-chip stocks like Telstra and CBA, are managed on behalf of shareholders.

Both AFIC and Argo have long track records of providing substantial and fully franked dividend payments. As such, they make fine candidates for single, simple investments that can set income investors up for life.

Investors could also consider ETFs, though.

ASX ETFs for dividends?

Even a basic index fund like the Vanguard Australian Shares Index ETF (ASX: VAS) would make a compelling option. The ASX is home to dozens and dozens of strong dividend payers. This ETF houses them all and provides investors with what could be described as the average level of dividend income that the Australian stock market pays.

It has paid out four dividend distributions over the past 12 months, which gives this index fund a trailing yield of 3.09% today. As this yield does represent an average of the entire market, it does tend to fluctuate over time. But long term, the trajectory should be up-and-to-the-right.

If that yield doesn't look big enough, investors also have the option to go for an ASX ETF that prioritises maximising income. Two ETFs that could fit this bill include the Vanguard Australian Shares High Yield ETF (ASX: VHY) and the BetaShares S&P Australian Shares High Yield ETF (ASX: HYLD).

These funds hold a basket of underlying shares, all selected on their ability to fund large, sustainable income into the future. Again, the dividend distributions from these funds will differ from year to year. Both are offering trailing yields well north of 4% right now.

Foolish Takeaway

Those investors seeking dividend income need not build out a full portfolio of dozens of dividend shares. Any one of the options named above would, at least in my view, be a perfectly adequate lifelong income investment on its own merits.

If you choose one, invest as much as you can, and as often as you can, and reinvest all dividends to start with. Your passive income will snowball and become an avalanche before you know it.

The post The only Aussie stock you'll need for lifelong income appeared first on The Motley Fool Australia.

Argo Investments Limited (ASX: ARG)

The venerable Argo Investments is one of Australia's oldest and largest listed investment companies. Established in 1946, it has delivered consistent returns to shareholders. The firm now invests about $8 billion on behalf of more than 89,000 shareholders and has delivered an annualised total shareholder return of 6.2% over the past decade.

Australian Foundation Investment Company (ASX: AFI) 

AFIC's 10-year returns are almost a carbon copy of Argo's, coming in at 6.5%, and the similarities don't end there. AFIC is even older than Argo, established in 1928, and similarly looks to invest over the long term, focusing on safety and dividend payments. Investing in AFIC gives exposure to Australia's top blue-chip shares, with its largest holdings in stocks such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Ltd (ASX: CSL).

Washington H Soul Pattinson & Company (ASX: SOL)

Soul Patts, as this investment outfit is generally known, has hit it out of the park over the past 12 months, delivering shareholders a return of 31.7%, and 14.4% over the past decade. The fund boasts that it has not missed a dividend payment since it was listed in 1903 and has increased dividend payments in each of the past 24 years.

WAM Leaders (ASX: WLE)

This fund looks to invest in large-cap companies "with compelling fundamentals, a robust macroeconomic thematic and a catalyst''. It claims to have returned 12.5% per annum since May 2016 and now manages just under $2 billion, so it must be doing something right. Currently, the fund's fully-franked dividend yield is sitting at 7%.

Ophir High Conviction Fund (ASX: OPH)

This fund looks to find high-quality companies which are generating good cash returns before the rest of the market catches on, or in their own words, when they are "typically under-researched and undervalued by the investment market''. The fund has notched up more than 300% in total net returns since inception in August 2015 and an impressive 26.7% over the past 12 months.

The post These are the five stocks I'd build a long-term portfolio around appeared first on The Motley Fool Australia.

Although it is difficult to achieve this and requires a large investment of both money and time, it can most certainly be done. Today, let's discuss the easiest way I think any Australian can get to $50,000 in passive income from ASX dividend shares.

The first thing you need to do is make sure your budget has enough spare room in it to afford a regular investment plan. To do this, one needs to ensure that they are spending less than they're earning, and are, apart from mortgages and HECS, debt-free.

Once that's been achieved, the next step is finding the ASX dividend shares to invest in.

Buying ASX dividend shares

There are countless options to choose from in this regard. Many investors opt for a collection of the ASX's most famous and prominent dividend payers. These include Telstra Group Ltd (ASX: TLS), Woolworths Group Ltd (ASX: WOW), or Commonwealth Bank of Australia (ASX: CBA).

Whilst this is certainly a valid path to tread, I think newer investors might be better off sticking with a diversified company or exchange-traded fund (ETF). These investments typically pool other ASX dividend shares within an underlying portfolio and look after them on your behalf.

Some examples of these investments include listed investment companies (LICs) like Argo Investments Ltd (ASX: ARG) or the Australian Foundation Investment Co Ltd (ASX: AFI).

Other investors might prefer a dividend-focused ETF, such as the Vanguard Australian Shares High Yield ETF (ASX: VHY).

All you need is one of these funds, and you're off to the races.

It's not a sprint race though, but a marathon. Building up an income stream as quickly as possible requires regular investing and the reinvestment of dividends.

There are no shortcuts here. It's simply a matter of the more you invest, and the more frequently you do so, the faster you'll get to your goal.

Many investors worry about timing the market, about 'buying low' and 'selling high'. This is almost always a mistake. I think a better creed for investors to hold to is that 'the best time to invest was 10 years ago, the second best, right now'.

Contrary to what you might see in the media, markets go up far more often than they go down. As such, we should all endeavour to invest as much as we can, as soon as we can.

Buy more shares, get a higher second income

Now, if you buy any of the investments listed above, you'll start receiving dividend income right away. It might be tempting to spend this or keep it in your savings account. But if you wish to build wealth (and passive income) as fast as possible, consider just ticking the 'reinvest my dividends' box when you initially buy the shares. This ensures that your dividends will buy more shares, which will then pay you even more dividends and so on, accelerating the compounding process.

Now, let's talk numbers. To get to $50,000 per year in passive income, let's assume that your investment offers a 4% dividend yield. By that logic, you'll need a portfolio worth just over $1.2 million before you can stop those dividends reinvesting and enjoy that passive income.

If your investment earns 8% per annum, it will take about 28 years investing $1,000 every month to get there. Again, you can speed this up by either increasing your regular investments, or by finding higher-returning assets. To illustrate, increasing your investment to $2,000 a month brings your wait time down to about 20 years.

But if one starts young enough, this strategy can certainly help fund an early retirement.

The post Here's how to target a $50,000 annual second income, starting from zero appeared first on The Motley Fool Australia.

At the start of 2025, one might have considered just leaving that $10,000 in a savings account or term deposit and receiving passive income in the form of interest. But after what has now been three interest rate cuts this year so far, that option is fast becoming less attractive.

So what's the alternative? Investing in ASX dividend shares, of course. Dividend shares are one of the assets to use if you want to build up a stable source of passive income.

There are obviously dozens, if not hundreds, of individual ASX dividend shares to choose from, which can make starting an investing journey quite daunting.

However, if you have $10,000 or a similar amount and wish to start, it might be a good idea to start with one diversified investment.

There are many options to choose from. The best choices for a beginner investor, in my view anyway, are index funds and listed investment companies (LICs).

Choosing a passive income investment for $10,000

These investments group a selection of underlying shares within a single investment. For example, an ASX index fund like the iShares Core S&P/ASX 200 ETF (ASX: IOZ) holds the 200 largest stocks on our share market.

An index fund like this would be a good choice. Most of the largest 200 companies on the ASX pay out dividends. By grouping them all together, investors can achieve an average of these dividends. The IOZ index fund currently has a trailing dividend yield of roughly 3.4% at current pricing. That's enough to start a substantial stream of passive income right off the bat.

If you are after a bit more income up front, you can opt instead for a dividend-focused exchange-traded fund (ETF) like the Vanguard Australian Shares High Yield ETF (ASX: VHY). This ETF works similarly to IOZ, but rather than holding the largest 200 companies on the ASX, it holds a smaller portfolio of stocks selected for their dividend history and potential.

LICs are an alternative to index funds. Rather than blindly tracking an index, LICs function as companies that manage an underlying portfolio of diverse stocks on behalf of shareholders.

Two prominent examples are Australian Foundation Investment Co Ltd (ASX: AFI) and Argo Investments Ltd (ASX: ARG). Both of these LICS have been around for decades. Since their inception, both have developed well-earned reputations as conservative wealth managers, investing in sound companies for the benefit of their long-term investors. Both pay out generous passive income too, in the form of fully franked dividends. AFIC is currently trading on a dividend yield of 3.57%, while Argo is closer to 4%.

Foolish Takeaway

Whether you opt for an index fund or an LIC for your first $10,000 investment, you are taking a decisive first step in starting a source of passive income. If you just set these funds and forget about them, while reinvesting any and all dividends you receive, you will have a strong and growing source of passive income before you know it.

The post $10,000 in savings? Here's a smart passive income plan for investors to consider appeared first on The Motley Fool Australia.