By investing in established companies with a history of paying dividends, investors can potentially benefit from both regular income and long-term capital growth.

The average dividend yield for ASX 300 shares sits at approximately 3.5%. 

This acts as a solid benchmark for dividend investors and retirees to match or beat through ASX dividend stocks. 

Here are three options right now that can help provide passive income alongside superannuation. 

Centuria Industrial REIT (ASX: CIP)

Centuria Industrial REIT is a real estate investment trust that owns around four billion dollars of industrial properties. These include manufacturing facilities, distribution warehouses, and data centres.

As Australia's largest pure-play industrial property investment vehicle, it has gained a reputation as a high yielding stock. 

It may appeal to income-focused investors because it provides exposure to Australia's industrial property sector while generating regular rental income from its portfolio. 

It also offers quarterly distributions, providing a more consistent income flow than other stocks. 

The trust also benefits from a portfolio of industrial properties leased to tenants across Australia, with high occupancy and relatively long lease terms supporting the underlying rental income.

At the time of writing it offers a dividend yield of approximately 6%. 

Atlas Arteria Ltd (ASX: ALX)

Atlas Arteria is another option for income investors to consider.

The company provides exposure to a portfolio of long-term infrastructure assets, including major toll roads in France, Germany and the United States. 

The group's toll-road concessions generate recurring revenue from motorists using these assets, providing a foundation for distributions to investors. 

It is expected to maintain its distribution at 40 cents per share, in line with current-year guidance, which equates to a yield of over 8%. 

BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX)

An alternative to individual ASX dividend stocks is an ASX ETF focused on generating high yields. 

One option is this Betashares fund.

It aims to generate attractive monthly income and reduce the volatility of portfolio returns by implementing an equity income investment strategy over a portfolio of the 20 largest blue-chip shares listed on the ASX. 

This monthly distribution is a great vehicle for passive income for retirees. 

It currently has a 12-month gross distribution yield of over 9%, making it one of the highest-yielding funds available right now. 

The post 3 ASX dividend stocks to provide passive income through retirement  appeared first on The Motley Fool Australia.

I think the right sort of investment could be one that gives both pleasing passive income and the potential for long-term capital gains.

The two ASX shares I'm going to highlight both have pleasing track records of payouts and underlying earnings growth.  Let's dive in.

Centuria Industrial REIT (ASX: CIP)

This first business is a real estate investment trust (REIT) which is Australia's leading pure play industrial REIT.

Industrial properties in well-located areas are in high demand these days, driven by e-commerce adoption, data centres, increased demand for refrigerated space (for medicine and food), the onshoring of supply chains, and more.

The rising rental potential of the properties is boosting the reported rental income. FY26 saw strong like-for-like net operating income growth of 5.2%, The business also reported a 4% increase of the funds from operations (FFO) – the net rental income – to $114.1 million.

Impressively, the ASX blue-chip share experienced 30% positive re-leasing spreads during FY26. That means its newly signed rental leases are generating 30% more rent than the old lease, so it's seeing significant rental growth.

Considering the business has a weighted average lease expiry (WALE) of around seven years and the portfolio is on average 17% under-rented, I think there could be a solid level of rental growth in the next few years as other leases come up for renewal.

It expects to grow its FFO by up to 5.5% in FY27, and the distribution could grow by another 3% to 17.3 cents per unit. That would translate into a forward dividend yield of 6.1% at the time of writing.

JB Hi-Fi Ltd (ASX: JBH)

In my view, JB Hi-Fi is one of the leading ASX retail shares. The company sells a wide range of electronics, including phones, tablets, computers, wearables, and more.

The JB Hi-Fi share price has fallen by more than 40% in the past year, which has significantly boosted the dividend for prospective investors. It's true that economic conditions are weaker than they were a year ago, but I don't think that justifies such a sharp decline in the valuation.

ASX blue-chip share valuations are meant to take into account the long-term potential, not just shorter-term challenges.

In my view, this decline is an opportunistic time to buy into a business with a strong market position. It has the attributes to excel in all economic conditions – it has a very productive sales floor, low costs, very competitive product prices and so on.

In terms of the potential payout, the projection on Commsec suggests the business could pay an annual dividend of $3.35 in FY27. That translates into a grossed-up dividend yield of 7.4%, including franking credits. The forecasts currently suggest the payout could grow in FY28 and again in FY29, so this could be a great time to buy.

Overall, both ASX blue-chip shares offer compelling dividend yields.

The post 2 ASX blue-chip shares offering big dividend yields 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.

The 50% CGT discount for assets held longer than 12 months will be replaced by a cost base indexation method on 1 July next year.

The new rules grandfather existing ASX shares investments. So, the 50% CGT discount will apply to gains made before 1 July, 2027.

After that date, capital gains on existing investments, and new investments purchased thereafter, will be subject to cost base indexation.

A minimum 30% tax on net capital gains will apply.

Morgans has buy ratings on two ASX dividend shares that offer 6% to 7% annual distribution yields.

Centuria Industrial REIT (ASX: CIP)

The Centuria Industrial REIT share price is $2.89, down 0.5% today and down 14% over 12 months.

Morgans has an accumulate recommendation on this ASX real estate investment trust (REIT).

The broker said the ASX dividend share offers a 6% annual distribution that should continue to grow.

In a recent note, Morgans said:

CIP delivered FY26 FFO of 18.2cpu and distributions of 16.8cpu, both in line with guidance but at the bottom of the upgraded 18.2-18.5cpu range, and 1% below MorgansF of 18.4cpu.

CIP produced +5.2% like-for-like NOI growth, a near record 226,200sqm of leasing completed, spreads moderating to 30%, and +$116m like-for-like valuation gains, resulting in NTA up 2.3% to $4.01/unit.

FY27 FFO guidance of 18.8-19.2cpu was above market expectations, while the 17.3cpu of distribution guidance in FY27 reflects a more modest 3% growth (vs pcp), driven by rent reversion leasing in the second half.

We rate CIP ACCUMULATE, with a $3.25/sh PT, as the 6% distribution should continue to grow as rental income grows through a mix of positive rent reversion and lease indexation.

Waypoint REIT Ltd (ASX: WPR)

The Waypoint REIT share price is $2.27, down 1.1% today and down 17% over 12 months.

Morgans also has an accumulate rating on this ASX dividend share, which offers a 7% annual distribution.

The broker commented:

WPR's 1H26 result was marginally ahead of our expectations, with management reaffirming CY26 Distributable EPS (DEPS) guidance of 17.14cps.

With limited expiries in CY27/28 (13% of NLA), WPR remains sensitive to the wider rate environment, and physical asset transactions point to some incremental softening in cap rates, albeit highly contingent on asset quality and location.

Trading at a c.7% distribution yield and 20% discount to NTA we do see value.

However, higher rates are likely to remain a headwind to earnings growth over CY27/28.

To this end, our target price remains broadly unchanged at $2.55, as we reiterate our ACCUMULATE recommendation on valuation grounds.

The post 2 ASX dividend shares offering 6% to 7% yields buy-rated by Morgans 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.

For some Aussies, retiring early could be appealing because it could mean enjoying more of life, calling it quits before the body can't do the physical work any more, or just getting away from the desk and out into 'life'.

Whatever the motivation for wanting to unlock $80,000 of annual passive income, reaching that goal could be very compelling.

Use compounding to build wealth

I think that every investor should keep the power of compounding in mind for long-term wealth creation.

One of the smartest people ever to live, Albert Einstein, once reportedly said:

Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it.

By using compounding, we can invest in ASX shares that grow in value on their own. We don't need to contribute any further money ourselves to see that growth in value.

Let's look at two scenarios of how that could play out for someone.

Imagine someone is 20 right now and they manage to save $750 per month to invest in ASX shares. That translates into an annual investment total of $9,000. If we assume the portfolio returns an average of 10%, the portfolio would be worth $1.48 million after 30 years.

In another example, let's consider someone who starts five years later at 25, so they can earn more and they can save $1,500 per month. If the portfolio returned the same 10% per year, it would grow to be worth an incredible $1.77 million.

Which ASX shares investors could buy for passive income to retire

If we go with the two example portfolios above, a $1.48 million portfolio would require a dividend yield of 5.4% to make $80,000 of annual passive income. Meanwhile, the $1.77 million portfolio would require a dividend yield of 4.5%.

There are a wide variety of investments that we can make to generate high passive income.

I'll run through some businesses and other types of businesses that could be great options for a portfolio dividend yield of around 5%.

Firstly, I'll highlight investment businesses such as Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Australian Foundation Investment Co Ltd (ASX: AFI), Australian United Investment Company Ltd (ASX: AUI), Future Generation Australia Ltd (ASX: FGX), PM Capital Global Opportunities Fund Ltd (ASX: PGF) and L1 Long Short Fund Ltd (ASX: LSF).

There are operating businesses like Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), Lovisa Holdings Ltd (ASX: LOV), Medibank Private Ltd (ASX: MPL) and JB Hi-Fi Ltd (ASX: JBH) that could all be compelling options.

Other top options for passive income include Charter Hall Long WALE REIT (ASX: CLW), Centuria Industrial REIT (ASX: CIP), Dexus Industria REIT (ASX: DXI), Rural Funds Group (ASX: RFF) and WCM Quality Global Growth Fund (ASX: WCMQ).

I think investors wanting to retire with $80,000 of annual passive income would be well-served by the above names, as well as other ASX shares that could deliver strong growth.

The post How much do I need to retire on $80,000 a year at 50? appeared first on The Motley Fool Australia.

With earnings season over, brokers have been updating their ratings and 12-month price targets on hundreds of companies.

The following ASX shares are among those that received upgrades based on their latest financial results.

Telstra Group Ltd (ASX: TLS)

The Telstra share price is $4.80, up 0.8% today.

Over the past month, this ASX telco share has fallen 6%.

Citi upgraded Telstra shares to a buy recommendation with a 12-month price target of $5.25.

This implies a potential 9% upside ahead.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is $11.62, up 3.2% today.

Over the past month, this ASX uranium share has ripped 21%.

Macquarie upgraded Paladin Energy shares to a buy rating on Wednesday.

The broker raised its 12-month price target from $12.95 to $13.85.

This implies a potential 19% upside ahead.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is $8.62, up 0.7% today.

Over the past month, this ASX financial share has fallen 14%.

JP Morgan upgraded Magellan shares to a hold rating this week.

The broker lifted its 12-month price target from $9 to $9.80.

This suggest a potential 13% upside ahead.

Centuria Capital Group (ASX: CNI)

The Centuria Capital Group share price is $1.26, up 1.6% today.

Over the past month, this ASX real estate investment trust (REIT) has slumped 16%.

MA Financial Group upgraded Centuria Capital Group shares to a buy call on Wednesday.

The broker lowered its 12-month price target from $2.18 to $1.83.

This indicates capital gains of 45% over the next year. 

IGO Ltd (ASX: IGO)

The IGO share price is $8.08, down 4% today.

Over the past month, this ASX lithium share has jumped 14%.

Goldman Sachs upgraded IGO shares to a buy rating yesterday.

The broker lifted its 12-month price target from $8.10 to $9.50.

This suggests potential capital growth of 17% over the next year. 

Smartgroup Corporation Ltd (ASX: SIQ)

The Smartgroup Corporation share price is $11.55, up 0.2% today.

Over the past month, this ASX industrials share has declined 13%.

Morgan Stanley upgraded Smartgroup shares to a buy rating yesterday.

The broker raised its 12-month price target from $11 to $13.

This implies a potential 13% upside ahead.

Centuria Industrial REIT (ASX: CIP)

The Centuria Industrial REIT share price is $2.94, down 0.5% today.

Over the past month, this ASX REIT has fallen 3%.

Morgans upgraded Centuria Industrial REIT shares to a buy call with a $3.25 target.

This suggest a potential 11% upside ahead.

South32 Ltd (ASX: S32)

The South32 share price is $5.22, up 0.1% today.

Over the past month, this ASX mining share has leapt 11%.

RBC Capital upgraded South32 shares to a buy recommendation this week.

The broker increased its 12-month price target from $5.30 to $5.50.

This implies a potential 5% upside ahead.

The post 8 ASX shares upgraded by the professionals post-results this week appeared first on The Motley Fool Australia.

Pleasingly, superannuation has a lower tax rate than many individuals, trusts and companies. The nature of the superannuation (and how we access the money) makes it very easy to invest for the long term.

I think receiving passive income is one of the best elements of owning shares. Being paid money into our bank accounts every year for no ongoing effort sounds good to me.

One of the main benefits of superannuation is that less of the passive income return is lost to tax. I believe that the after-tax figure is what Australian investors should focus on.

If a full-time working Australian is paid passive income in their own name, they may lose a third (or more) of that dividend income to tax. That effect can make passive income seem much less appealing.

Superannuation is often the best place to invest for passive income due to the lower tax rate in the accumulation phase of life, compared to a full-time earner's individual tax rate.

However, each person's tax situation is different, so we'll just run through a particular dividend income level and not consider tax rates from now on.

How much is needed in superannuation for $60,000 of annual passive income?

Being paid $60,000 in dividends each year is appealing to me. I'm nowhere near that goal, but I'd love to reach that level of income one day.

One of the most important decisions to consider is the investments that we want to own and the dividend yield that comes with that.

I think ASX shares are the best choice for passive income, with the attached franking credits being a great bonus.

Reaching $60,000 of annual dividends depends on the size of the dividend yield and the portfolio size.

For example, if an Australian investor had investments with a 6% dividend yield, it would require a $1 million portfolio. If the portfolio had a 3% dividend yield, it would need to be a $2 million portfolio for $60,000 annual income.

As you can see, different investments provide different dividend yields. So, it depends on what Aussies want to choose.

Which ASX dividend shares I'd look at

There are a number of different investment options that investors can choose on the ASX with good dividend yields like real estate investment trusts (REITs), quality operating companies, exchange-traded funds (ETFs) and good listed investment companies (LICs).  

I think REITs are very attractive at these valuations amid high interest rates. Some of my leading ideas are Centuria Industrial REIT (ASX: CIP), Dexus Industria REIT (ASX: DXI), Rural Funds Group (ASX: RFF) and Charter Hall Long WALE REIT (ASX: CLW).

Some of the leading operating companies out there include Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES), Lovisa Holdings Ltd (ASX: LOV), Telstra Group Ltd (ASX: TLS) and Medibank Private Ltd (ASX: MPL).

There are a few very attractive ETFs that could be useful options for dividend income such as WCM Quality Global Growth Fund (ASX: WCMQ), Vanguard Australian Shares Index ETF (ASX: VAS) and Vanguard Australian Shares High Yield ETF (ASX: VHY).

Some of the LICs that I highly rate for superannuation include MFF Capital Investments Ltd (ASX: MFF), WCM Global Growth Ltd (ASX: WQG), Future Generation Australia Ltd (ASX: FGX), Future Generation Global Ltd (ASX: FGG) and Hearts and Minds Investments Ltd (ASX: HM1).

The post How much is needed in superannuation to target a $60,000 annual passive income? appeared first on The Motley Fool Australia.

We don't necessarily need to access the passive income immediately for it to be a good investment. Australians may appreciate owning investments with stable earnings that deliver consistent payouts year to year.

Given that superannuation has a lower tax rate than individual tax rates for full-time earners, there's less of a headwind for the after-tax passive income returns compared to investments made outside of super.

There are many different passive income investments available to people who utilise self-managed superannuation funds (SMSFs). Other super funds can allow investors to invest in assets such as S&P/ASX 300 Index (ASX: XKO) shares – many businesses in that index are appealing options for income.

How to generate $2,500 of monthly passive income from superannuation

Each household has a different financial situation. There isn't a one-size-fits-all approach that I can outline that would say what everyone's net income would be. With that in mind, I'll just talk about gross income, which is before taxes and expenses.

Generating $2,500 of monthly passive income translates into $30,000 per year.

The amount you need to invest to reach that income goal depends on the dividend yield, or interest rate, of the investments.

I'll give you an example. If someone had $1 million invested with a 3% dividend yield, it would generate $30,000 of annual income.

If the dividend yield were higher, an investor wouldn't need as much invested in superannuation to create that same level of annual or monthly passive income.

For example, if an investor's portfolio had a 4% dividend yield, an investor would require $750,000.

A 5% dividend yield would mean investors require a $600,000 portfolio.

If the dividend yield was 6% then the portfolio value required would only be $500,000.

Where I'd invest for a high dividend yield

If I were looking for a high level of monthly passive income, I'd focus on businesses with a good dividend yield but also have delivered reliability.

Some of the names I'd consider would be MFF Capital Investments Ltd (ASX: MFF), WCM Global Growth Ltd (ASX: WQG), Future Generation Global Ltd (ASX: FGG), Future Generation Australia Ltd (ASX: FGX), Centuria Industrial REIT (ASX: CIP), Charter Hall Long WALE REIT (ASX: CLW), Hearts and Minds Investments Ltd (ASX: HM1), Rural Funds Group (ASX: RFF) and PM Capital Global Opportunities Fund Ltd (ASX: PGF).

But, I also wouldn't ignore investments with somewhat lower yields that have a track record of regular dividend growth as well as appealing capital growth.

The post How much is needed in superannuation to target a $2,500 monthly passive income? appeared first on The Motley Fool Australia.

Dividends aren't guaranteed, but some investments can provide payout guidance that can give us a high level of confidence of what the payment may be for the coming financial year.

I'll run through two of my favourite picks for payouts.

Centuria Industrial REIT (ASX: CIP)

I think this is one of the best options in the real estate investment trust (REIT) sector for payouts because of the tailwinds it's benefiting from and the rising distributions.

It describes itself as Australia's largest domestic pure-play industrial REIT and is in the S&P/ASX 200 Index (ASX: XJO). It wants to provide investors with income and an opportunity for capital growth.

The properties are located in key metropolitan areas throughout Australia and it's underpinned by a quality and diverse tenant base.

In FY26, the business experienced like-for-like net operating income (NOI) growth of 5.2%. There are a number of drivers increasing the rent value of industrial real estate such as data centres, e-commerce adoption, a growing population, the onshoring of logistics, and refrigerated storage for food and medicine.

The ASX passive income idea also reported in FY26 that it saw 30% positive re-leasing spreads – its rental income is seeing a big jump, with new contracts generating much stronger rent than the old rent. The REIT reckons that its portfolio is, on average, 17% under-rented, suggesting further strong growth as leases come up for renewal in the coming years.

Centuria Industrial REIT has provided guidance that its FY27 distribution will grow by 3% year-over-year to 17.3 cents per security, while net rental profit could grow by up to 5.5% per unit.

At the time of writing, the FY27 distribution guidance translates into a forward yield of 5.8%.

WCM Quality Global Growth Fund (ASX: WCMQ)

I think plenty of Australian investors could benefit from owning quality exchange-traded funds (ETFs) that give exposure to global shares. However, not many of those ETFs have a good dividend yield.

I believe the WCMQ ETF can provide a pleasing mixture of capital growth and dividends, which is why I think it's a top option to consider.

WCM is a California-based fund manager. It has two criteria for including any company in its portfolio. The company must have a growing competitive advantage (or expanding economic moat) and a corporate culture that supports expanding the moat.

WCM believes the direction of a company's economic moat is more important than the actual current size of its moat. It focuses on companies with a positive moat 'trajectory', measured by rising return on invested capital (ROIC), rather than those with a large but static or deteriorating moat.

Since the ETF's inception in August 2018, its portfolio has returned an average of 15.2% per year.

The fund aims to provide investors with a minimum annualised cash yield of 5% per year, based on the net asset value on 30 June 2026.

It has provided guidance that it will pay quarterly distributions of 53.6 cents over the next year, which is a yield of around 5.3% at the time of writing.

$300 per month from these ASX passive income ideas

At the time of writing, the distribution guidance for these two ideas comes to an average dividend yield of 5.55%.

They don't pay monthly, but they do pay quarterly. So, I think it's better to think of the target as an annual goal and then split that into a monthly amount.

Achieving $300 per month translates into an annual target of $3,600. To deliver that goal at an average of 5.55%, we're talking about investing approximately $64,900 across these two names. But I'd ensure I spread my money across more than just two names for good diversification.

The post 2 ASX passive income ideas I'd use to generate $300 a month in 2027 appeared first on The Motley Fool Australia.

For some people, retiring early sounds good because it could mean enjoying more of life, stopping before the body can't do the physical work anymore, or simply getting away from the desk.

Whatever the reason for wanting $120,000 per year of passive income, unlocking that level of dividends is enticing.

Use compounding to build wealth

One of the best things that investors can utilise to get to retirement is the power of compounding.

Albert Einstein once supposedly said about compounding:

Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it.

Compounding allows our ASX share investments to grow in value over time without us needing any more money ourselves to increase that value.

By regularly putting additional money into the stock market, investors can see the value of their portfolio increase.

I'll run through two examples of how it could work.

If someone is 25 and can invest $1,000 per month, they'd be able to invest $12,000 per year. Assuming the portfolio returns an average of 10% per year, that portfolio would grow to be worth $1.97 million after 30 years.

With the second example, let's imagine someone is 30 and has more earning power, allowing them to invest $2,000 per month. If the portfolio were to return 10% per year, it would grow to $2.36 million after 25 years.

Which ASX shares I'd buy for passive income to retire

If we go with those two examples above, a $1.97 million portfolio would require a portfolio dividend yield of approximately 6.1% to make $120,000 of annual passive income. Meanwhile, a $2.36 million portfolio would require a dividend yield of 5.1%.

I'm going to highlight some ASX shares with a lower-to-medium dividend yield and some with a higher dividend yield.

Some of the stocks with a dividend yield of around 5% (or a little less) that I like include Rural Funds Group (ASX: RFF), Centuria Industrial REIT (ASX: CIP), L1 Long Short Fund Ltd (ASX: LSF), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), APA Group (ASX: APA), Coles Group Ltd (ASX: COL), Telstra Group Ltd (ASX: TLS) and WCM Quality Global Growth Fund (ASX: WCMQ).

The ASX shares that have a higher dividend yield that I'm a big fan of with a higher dividend yield include WCM Global Growth Ltd (ASX: WQG), MFF Capital Investments Ltd (ASX: MFF), Future Generation Australia Ltd (ASX: FGX), Future Generation Global Ltd (ASX: FGG) and Hearts and Minds Investments Ltd (ASX: HM1).

The post How much do I need to retire on $120,000 a year at 55? appeared first on The Motley Fool Australia.

Investing for passive income through superannuation makes sense for various reasons, with the low tax rate being a key benefit.

Keep in mind that the net income we receive from our investments is what we receive after taxes. It's possible that an Australian working full-time could lose a third of their passive income to tax, or more, depending on their tax rate.

Based on that, investing in superannuation is a more appealing prospect due to that 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 tax rate could be 0%.

Every Australian's tax position is different, so I'll just talk about targeting a certain income level, without mentioning tax any further.

How much is needed in superannuation for $5,500 of monthly passive income?

Receiving $5,500 per month of dividends translates into $66,000 annually. I'm sure most Australians would love to receive that level of dividends each year without needing to do any ongoing work for it, assuming they don't already receive that much each year.

A key question is deciding what sort of investments Australians want to own and the dividend yield attached to those stocks.

For example, a portfolio with a dividend yield of 6.6% can be half the size of a portfolio with a dividend yield of 3.3%.

For example, if a portfolio is $1 million in size with a 6.6% dividend yield, it would create $66,000 of annual passive income. If a portfolio had a dividend yield of 3.3%, the portfolio would need to be $2 million in size to make the same level of income.

If the portfolio had a dividend yield of 5%, the portfolio would need to be $1.32 million in size to generate an average of $5,500 per month of monthly passive income.

The final dividend yield we'll look at is 4%. It would take a portfolio value of $1.65 million to unlock $66,000 of annual dividends.

The sorts of ASX dividend shares I'd look at

There is a wide range of ASX dividend shares available for superannuation investments, investing in our own name or other structures.

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

Some of the mid-range yielding stocks I'd consider for passive income include WCM Quality Global Growth Fund (ASX: WCMQ), Telstra Group Ltd (ASX: TLS), Rural Funds Group (ASX: RFF) and Centuria Industrial REIT (ASX: CIP).

Among the higher-yielding ASX dividend shares I'd consider are WCM Global Growth Ltd (ASX: WQG), Charter Hall Long WALE REIT (ASX: CLW), Dexus Industria REIT (ASX: DXI), Future Generation Australia Ltd (ASX: FGX), Future Generation Global Ltd (ASX: FGG) and PM Capital Global Opportunities Fund Ltd (ASX: PGF).

The post How much is needed in superannuation to target a $5,500 monthly passive income? appeared first on The Motley Fool Australia.

For people already getting $40,000 per year in passive income, I reckon receiving an additional $40,000 per year would also be very welcome.

So, what would it take to unlock that river of dividends via superannuation? That's what I'll look at in this article.

Superannuation could be the best place to invest for passive income these days following taxation changes to trusts, residential property and capital gains tax.

Owning dividend-paying investments in superannuation means investors won't lose as much of the return to tax as they would if the investment was in their own name. During the accumulation phase, superannuation has a lower tax rate for income than full-time working individuals, while in retirement the tax rate for income could be 0% for many retirees, depending on the size of their superannuation balance.

With that in mind, I think superannuation is an excellent place to unlock $40,000 per year.

Generating $40,000 of annual passive income

It'll take a sizeable sum to unlock tens of thousands of dollars of dividends each year.

There's no single dollar target required because it really depends on what sorts of investments Aussies choose and the dividend yield that comes with that.

For example, if an investor had all of their money in iShares S&P 500 ETF (ASX: IVV), you'd have a dividend yield of around 1%. With a dividend yield of 1%, someone would need a $4 million portfolio to make $40,000 per year in passive income.

The IVV ETF is not the choice I'd make for passive income, though it does have other benefits.

Instead, I'd focus on building a portfolio with a dividend yield of at least 4%, if not more.

With a 4% dividend yield, an investor could generate the desired passive income from a $1 million portfolio.

If an Australian's portfolio had a 5% dividend yield, they would only need $800,000 for that income.

With a 6.5% dividend yield, an Australian's portfolio goal would be close to $615,000.

As you can see, the higher the dividend yield, the smaller the portfolio needs to be to achieve the income target.

But, higher dividend yields may be riskier and/or deliver less capital growth for investors.

So, the choices investors make could greatly influence how reliable that passive income is. Not every investment with a high dividend yield may sustain its dividends over the longer term.

ASX dividend shares I'd consider for superannuation

If Australians are willing to accept a lower dividend yield, then it's hard to look past Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). That's an investment conglomerate that owns a diversified portfolio of defensive assets, enabling it to pay a reliable and growing dividend. Its payout has grown every year since 1998, though the grossed-up dividend yield is only 3.3%, including franking credits, at the time of writing.

But, there are plenty of businesses with higher dividend yields that I think are compelling.

For example, Centuria Industrial REIT (ASX: CIP) and Dexus Industria REIT (ASX: DXI) are both real estate investment trusts (REITs) with dividend yields of between 5% and 7%. They provide exposure to industrial property, which is benefiting from compelling rental tailwinds.

I also like portfolio investments that can provide diversification and good dividend yields for superannuation investors.

Some of my favourite portfolio-based investments that come to mind include MFF Capital Investments Ltd (ASX: MFF), WCM Quality Global Growth Fund (ASX: WCMQ), WCM Global Growth Ltd (ASX: WQG), Future Generation Australia Ltd (ASX: FGX), Future Generation Global Ltd (ASX: FGG) and L1 Long Short Fund Ltd (ASX: LSF). All of these names have a track record of increasing payouts to shareholders, with dividend yields between 4% and 7%.

There are a number of other attractive ASX shares to consider, in my view, for passive income.

The post How much is needed in superannuation to target a $40,000 annual passive income? appeared first on The Motley Fool Australia.

Let's take a look at some new expert ratings.

Wildcat Resources Ltd (ASX: WC8)

The Wildcat Resources share price is 40 cents, down 5.4% today and up 101% over 12 months. 

Arthur Garipoli from Dolphin Partners has a buy rating on this ASX 200 lithium share. 

On The Bull this week, Garipoli explained:

This Western Australian explorer is advancing the Tabba Tabba Lithium-Tantalum project, which is a large-scale, hard rock development in an established mining jurisdiction with low sovereign risk and close to Port Hedland infrastructure.

The recent share price fall may represent a good entry opportunity for investors looking for a recovery in lithium markets and in a company with near term catalysts.

WC8 has completed a pre-feasibility study. A large resource base and an upcoming definitive feasibility study de-risks the company.

In our view, WC8 represents a compelling risk-reward scenario.

Centuria Industrial REIT (ASX: CIP)

Centuria Industrial REIT shares are $3.04, down 0.2% today and down 9% over 12 months. 

Bell Potter has a hold rating and $3.35 price target on this ASX real estate investment trust (REIT).

Analyst Andy MacFarlane said:

CIP announced its FY26 result with FFO / share of 18.2c slightly below BPe (-2%) and Visible Alpha consensus (-1%), and at the bottom end of its guidance range.

FY27 guidance provided for FFO / share range of 18.8c – 19.2c (BPe 18.3c; VA consensus 18.7c) and DPS of 17.3c (BPe 16.8c, VA consensus 17.0c).

A solid result for CIP with some plus and minuses, but ultimately the forward earnings outcome to be driven by two leasing campaigns, as it navigates higher CoD which will increase again into FY28 (all else equal) as it explores ways to fund its growth ambitions.

Endeavour Group Ltd (ASX: EDV)

The Endeavour share price is $3.47, down 1.6% today and down 17% over 12 months. 

Garipoli has a sell rating on this ASX 200 consumer staples share. 

He commented on the liquor and hotel operator's unaudited preliminary results for FY26:

Total group sales of $12.212 billion were up 1.3 per cent on the prior corresponding period. However, total group underlying net profit after tax of $363 million was down from $426 million in full year 2025.

The group expects to recognise after tax significant items, predominately non-cash, of $311 million.

The recent share price recovery since the start of June and August 13 provides an opportunity for investors to cash in some gains.

In our view, better investment opportunities exist elsewhere given recent numbers and high cost of living expenses.

The post Buy, hold, sell: Centuria Industrial REIT, Endeavour, Wildcat Resources shares appeared first on The Motley Fool Australia.

Australians have a variety of investment options for generating income in retirement. Bonds, term deposits, dividend shares and property are all options for passive income.

I think shares are best placed to provide good passive income because they can offer both a good dividend yield and rising payouts driven by profit growth.

Term deposits and bonds offer a fixed return, while the net rental yields from residential property are not particularly appealing to me.

So, let's explore using ASX shares to generate the six-figure annual sum.

Retire on $100,000 of income at 60

Every household has different spending requirements and retirement goals, but $100,000 would be a pleasing level of investment income for most households.

If we invest well, someone could start their retirement with $100,000 of income, and those payouts could steadily grow over time.

Investors wanting $100,000 per year will need a sizeable portfolio, with the exact amount depending on the investment portfolio's dividend yield.

If an investor had assets that had an average dividend yield of 5%, they would need a portfolio size of $2 million. If someone wanted to retire on $100,000 per year and they had $1.5 million, we'd be talking about a dividend yield of approximately 6.66%.

Investors may be wondering what sorts of investments could deliver that sort of dividend yield.

Passive dividend income ideas

Many Aussie investors are probably aware of, and perhaps invested in, Vanguard's most popular option, which focuses on ASX shares: Vanguard Australian Shares Index ETF (ASX: VAS). This ASX ETF gives exposure to 300 of the largest businesses on the ASX.

For investors specifically targeting passive income, Vanguard Australian Shares High Yield ETF (ASX: VHY) focuses on larger high-yielding ASX shares.

Other popular options for passive dividend income include Australian Foundation Investment Co Ltd (ASX: AFI) and Argo Investments Ltd (ASX: ARG), two of the largest and oldest listed investment companies (LICs).

The benefit of the four options I mentioned above is that they offer fairly diversified portfolios, with significant exposure to stable, ASX blue-chip shares and sizeable dividend yields.

I think they're all solid options to consider for dividend yields of around 5%. I'd also highlight a couple of real estate investment trusts (REITs), such as Rural Funds Group (ASX: RFF) and Centuria Industrial REIT (ASX: CIP), that have reliable payout records, organic revenue growth, distribution yields of just over 5% and trade at appealing prices.  

But, there are a few stocks that I believe could be compelling options to buy for a dividend yield of approximately 6.7%, while also providing payout consistency (and potentially growth).

Some of the ideas that come to mind include the LICs Future Generation Australia Ltd (ASX: FGX), Future Generation Global Ltd (ASX: FGG) and WCM Global Growth Ltd (ASX: WQG), as well as the REITs Charter Hall Long WALE REIT (ASX: CLW) and Dexus Industria REIT (ASX: DXI).

Some operating Australian companies, such as Telstra Group Ltd (ASX: TLS), are also options to consider for passive income.

The post How much do I need to retire on $100,000 a year at 60? appeared first on The Motley Fool Australia.

This business describes itself as Australia's largest domestic pure-play industrial real estate investment trust (REIT). It owns a portfolio of high-quality industrial assets that are located in key metropolitan areas.

The ASX dividend stock recently announced its FY26 result, which made it even more compelling.

Higher distribution yield

I'm sure most passive income investors want to know about the potential payouts, so let's start there.

The business increased its payout by 3% in FY26 to 16.8 cents per security, following a 4% rise in funds from operations (FFO) – essentially net rental profit – per unit.

It's expecting to grow its FFO per unit by between 3.3% to 5.5% in FY27, to a range of between 18.8 cents to 19.2 cents per unit. This will help fund the guided distribution of 17.3 cents per unit, which would be a solid year-over-year rise of 3%.

Given that this payout guidance comes at a time of higher interest rates, I think it's especially impressive.

At the time of writing, the likely payout translates into a forward distribution yield of 5.6%. Considering that it's highly competitive with term deposit returns and offers potential for future growth in FY28, I think this ASX dividend stock is a great option for passive income.

Strong rental tailwinds

One of the key reasons I think this REIT is so appealing is its strong rental growth.

There is strong demand for well-located industrial properties due to multiple tailwinds, such as data centres, e-commerce adoption, refrigerated space (for food and medicine), and so on.

The vacancy rate for metropolitan industrial properties is very low due to strong demand, which is driving rental values.

During FY26, the business reported 5.2% like-for-like rental growth, along with 30% positive re-leasing spreads. In other words, new leases are earning 30% more rental income than the old rental rate.

Management also believes the portfolio is, on average, 17% 'under-rented' compared to its potential market rent. As leases come up for renewal over the next several years, there could be a noticeable jump in rental earnings.

Undervalued assets

There are multiple indicators of this business being undervalued.

The most obvious one is to look at the net tangible assets (NTA) of $4.10 – which rose by 2.3% during FY26 – and see that the unit (share) price is trading at a 25% discount to this figure.

Secondly, it's possible the NTA may be understated. During FY26, the business achieved $200 million in divestments at an average premium of 17% to book value, which is reflected in the NTA.

Third, I don't expect interest rates will remain this high forever, so the property values could get a further boost when the RBA does reduce rates, which could possibly happen as early as next year.

When you put all of the above together, I think this is the right time to invest in this ASX dividend stock, though it's not the only name I'm thinking about buying.

The post 1 ASX dividend stock down 27% I'd buy right now appeared first on The Motley Fool Australia.

Dividend income is an excellent aspect of owning ASX shares, but tax is an obvious headwind for the return.

An Australian investor working full-time could lose a third (or more) of their passive income return to tax if they own those shares directly. Recently announced tax changes may also mean that investing in shares through trusts is not as compelling.

Therefore, superannuation could be the best place to invest for passive income and unlock significant cash flow.

Each household's taxation position is different, so I'm not going to mention tax again for the rest of this article.

How to make $2,000 of monthly passive income

Generating $2,000 per month, which equates to $24,000 per year, may not be enough to live an extravagant lifestyle. But, it could be a significant addition to other forms of income, such as interest or rental profits.

How large a portfolio needs to be to make $24,000 per year largely comes down to what the portfolio's average dividend yield is.

The higher the dividend yield, the smaller the portfolio can be to generate the same level of dividend income.

However, not all dividend yields are necessarily as reliable as others. I'd rather invest in a business that's likely to keep paying dividends than go for a huge dividend yield and see the payments disappear during an economic downturn.

If a portfolio had a dividend yield of 4%, the portfolio would need to be $600,000 in size to generate $24,000 of annual passive income.

A portfolio with a 5% dividend yield would require the portfolio to be $480,000 in size.

If the portfolio had a dividend yield of 6%, it would only need to be $400,000 in size.

What sorts of ASX shares I'd buy

There is a wide range of investment choices available for investors to choose from for passive income in superannuation.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) is a very compelling idea for income because its annual dividend has been hiked every year since 1998. However, its grossed-up dividend yield (including franking credits) is currently less than 4%.

In my view, many retiree investors could benefit from considering compelling listed investment companies (LICs) because their portfolios can provide diversification, and dividends can be smoothed for consistent payouts.

I think some of the leading LICs for passive income include WCM Global Growth Ltd (ASX: WQG), MFF Capital Investments Ltd (ASX: MFF), L1 Long Short Fund Ltd (ASX: LSF), WAM Microcap Ltd (ASX: WMI), WAM Leaders Ltd (ASX: WLE), Future Generation Australia Ltd (ASX: FGX) and Future Generation Global Ltd (ASX: FGG).

A few quality real estate investment trusts (REITs) also look significantly undervalued to me, such as Centuria Industrial REIT (ASX: CIP), Dexus Industria REIT (ASX: DXI), Charter Hall Long WALE REIT (ASX: CLW) and Rural Funds Group (ASX: RFF).

The above ASX shares, among others, are top ideas for passive income in superannuation (or outside it).

The post How much is needed in superannuation to target a $2,000 monthly passive income? appeared first on The Motley Fool Australia.

What did Centuria Industrial REIT report?

• FFO of $114.1 million, up 4% from FY25, or 18.2 cents per unit
• Distribution per unit of 16.8 cents, in line with FY26 guidance
• Net Tangible Assets (NTA) per unit lifted to $4.01
• Like-for-like Net Operating Income (NOI) grew by 5.2%
• $200 million in asset sales at an average 17% premium to book value
• Portfolio occupancy of 95.2% and 7.0-year WALE

What else do investors need to know?

Centuria Industrial REIT delivered nearly record leasing volumes during the year, with 226,200sqm leased—representing 18% of portfolio space. Leasing spreads remained highly positive, averaging 30%, propelled by robust tenant demand and low national industrial vacancy rates.

The REIT is making meaningful moves into the data centre sector, securing two strategic assets valued at roughly $60 million. Several properties are flagged as possible future data centre conversions, with the pipeline potentially providing over 250MW in capacity.

Balance sheet strength remains a highlight, with gearing at 34.9%, $457 million in liquidity, and 54% of debt hedged. Divestment proceeds have helped pay down debt, while the group also refinanced $775 million at improved margins.

What did Centuria Industrial REIT management say?

Grant Nichols, CIP Fund Manager and Centuria Head of Listed Funds, said:

FY26 has been another impressive year for CIP, marked by nearly record-breaking leasing activity. The high volume of leasing, along with consistently strong re-leasing spreads, enabled CIP to achieve significant Net Operating Income (NOI) growth, which translated into tangible growth in Funds From Operations (FFO).

What's next for Centuria Industrial REIT?

The outlook remains upbeat, with Centuria forecasting FY27 FFO of 18.8–19.2 cents per unit (up to 5.5% higher year on year) and distributions of 17.3 cents per unit (3% above FY26). These are expected to be paid quarterly.

Management's focus will be on maximising returns from its under-rented assets, progressing data centre conversion opportunities, and capitalising on urban infill scarcity to drive further income and valuation growth.

Centuria Industrial REIT share price snapshot

Over the past 12 months, Centuria Industrial REIT shares have declined 9%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 4% over the same period.

View Original Announcement

The post Centuria Industrial REIT delivers higher FY26 earnings and guidance upgrade appeared first on The Motley Fool Australia.

During times of elevated uncertainty, I'd want to invest in names that have strong balance sheets, a clear path to growth and look undervalued.

The two Australian stocks I'm going to highlight are among the national leaders at what they do and really fit the bill of what I'm looking for. I'd happily invest $9,000 today.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is one of the leading online retailers in Australia, selling hundreds of thousands of homewares, furniture and home improvement products.

A large majority of the products sold on the Temple & Webster website are shipped directly by suppliers, so Temple & Webster has a very capital-light model for the volume of physical products that are sold through its platform.

Its business model means the company is highly cash flow generative and it has a good level of cash on its balance sheet. It had $161 million of cash at 31 December 2025. During the FY26 half-year period, it generated $31.3 million of operating cash flow and free cash flow of $22.9 million, compared to $13.5 million of operating profit (EBITDA).

Even though the company is facing challenging retail conditions, the business expects EBITDA to double in FY27, even in a low-growth environment, thanks to a focus on profitability. I'd say that's very respectable in the current economic climate.

In three years, I think the Australian stock's revenue could significantly grow, while also improving its operating leverage.

Centuria Industrial REIT (ASX: CIP)

Industrial properties are a great place to invest right now, in my view.

Centuria Industrial is the largest industrial pure-play real estate investment trust (REIT). It gives investors exposure to a pleasing subsector of the property market that is experiencing strong rental growth.

Industrial properties are benefiting from demand related to e-commerce adoption, the onshoring of supply chains, growing refrigerated space requirements (for food and medicine), data centres and more.

The low vacancy rate and strong organic rental growth give support to industrial property valuations, which is a strong tailwind for the business.

Earlier this year, the Australian stock said that its portfolio was 20% under-rented, which implies pleasing impending rental growth as its various rental contracts come up for renewal in the next few years.

The business grew its annual distribution by 3% in FY26 to 16.8 cents per security. At the time of writing, that translates into a distribution yield of 5.5%.

I also believe it's trading at a large discount to its net tangible assets (NTA). We'll have to see what the reported NTA Is for June 2026 – it will report that figure during this month's reporting season.

I think this Australian stock is one of the best to buy right now.

The post 2 strong Australian stocks to buy now with $9,000 appeared first on The Motley Fool Australia.

The tax rate of investment earnings for individuals, trusts and companies may be higher than the tax rate of investment returns inside superannuation.

Another bonus of the super set-up is that, in most cases, we won't access the money for many years, promoting the idea of long-term investing inside superannuation. Investing for the long-term gives us the best chance that an investment will play out positively.

I'd say that receiving passive income is one of the best elements of owning shares. It requires virtually no additional effort to receive money into our bank account once we hold that investment.

Why is superannuation important for passive income? Less tax in super means losing less of the passive income return to tax.

Outside of super, a full-time working Australian could lose a third (or more) of the passive income return to tax, which makes that type of return less appealing.

Superannuation looks significantly more appealing, in my view, given how much lower the tax rate is during the asset accumulation phase of life when compared to a full-time individual's tax rate.

It could get even better in retirement, where a person's superannuation tax rate may be 0%. You can't get a tax rate lower than that!

Of course, every Australian's tax position is different, so we'll just look at the particular income goal from here and ignore the tax rates.

How much is needed in superannuation for $90,000 of annual passive income?

Being paid $90,000 in dividends each year sounds amazing to me. I'm a very long way from that goal, but I would like to reach that annual dividend target eventually.

Australians need to think about what sorts of investments they want to own and the dividend yield those investments provide.

I believe ASX shares are the best pick for passive income. That's partly because the franking credits attached to dividends from Australian companies are an excellent addition to the return.

What's actually required to earn $90,000 annually depends on the dividend yield of the portfolio.

For example, a portfolio with a 5% dividend yield would need to be $1.8 million in size, while a dividend yield of 7% would need to be $1.29 million in size.

The required portfolio size varies significantly in size, so it depends on the sorts of investments we make in our portfolio.

The types of ASX dividend shares I'd buy

There are a number of high-quality ASX dividend shares that Aussies can buy for yield, such as quality operating companies, listed investment companies (LICs) or real estate investment trusts (REITs).

In my view, Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) may be the strongest choice for reliable and rising dividends, but it has a relatively low dividend yield.

Some of the businesses I like with a dividend yield around 5% includes Telstra Group Ltd (ASX: TLS), APA Group (ASX: APA), Rural Funds Group (ASX: RFF), Centuria Industrial REIT (ASX: CIP), MFF Capital Investments Ltd (ASX: MFF) and L1 Long Short Fund Ltd (ASX: LSF).

My favourite ideas with an expected dividend yield of around 7% (or more) include WCM Global Growth Ltd (ASX: WQG), Future Generation Australia Ltd (ASX: FGX), Future Generation Global Ltd (ASX: FGG), Charter Hall Long WALE REIT (ASX: CLW), Dexus Industria REIT (ASX: DXI), WAM Microcap Ltd (ASX: WMI), WAM Leaders Ltd (ASX: WLE) and Hearts and Minds Investments Ltd (ASX: HM1).

These aren't the only compelling ASX dividend shares for superannuation investors to consider, but I think they're a great place to start.

The post How much is needed in superannuation to target a $90,000 annual passive income? appeared first on The Motley Fool Australia.