It's the type of nest egg that many Aussies aspire to have. They focus hard on building their superannuation balance, ensuring the fund is performing well, and adding extra voluntary contributions wherever they can.

It's a solid plan. But did you know that if you invest your superannuation wisely, you could also generate a passive income to live off when it's time to retire?

But how much passive income could a $650,000 balance realistically generate each month?

Let's break it down.

What passive income can I earn off a $650,000 superannuation balance?

The math is simple. 

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

But the problem is that the answer varies widely depending on what that dividend yield is.

For example, $650,000 x 3% = $19,500 per year in dividend payments.

But if your portfolio has a slightly higher dividend yield of around 4%, your passive income will be higher. That's because $650,000 x 4% = $26,000 per year in dividend payments. 

If your superannuation portfolio yields closer to 5%, you could earn $32,500 every year in dividend payments off the same superannuation balance ($650,000 x 5% = $32,500).

Then, at a 6% yield, you could earn an annual passive income of around $39,000, and at 7%, it could be even higher, at around $45,500.

And so on… 

As your dividend yield increases, the passive income you can earn from your $650,000 superannuation balance also increases.

Note too that these figures are based on cash dividends before any tax or franking credit benefits.

Give me some ideas of what ASX shares I can invest my superannuation in

There is a huge range of shares out there, and their dividend yields vary significantly.

Some of my top picks would be defensive stocks. These are companies whose earnings tend to remain relatively steady throughout times of economic instability. They typically operate in "non-discretionary" industries where demand remains relatively stable even when consumer confidence dips. 

Their stable nature means they can help reduce the volatility of an overall investment portfolio. This is particularly valuable during times when geopolitical tensions are ongoing and inflation is stubbornly high.

These can be supermarket, telecommunications, or infrastructure stocks. Demand for food items and essential services is generally stable throughout all sections of the economic cycle. Think Coles Group Ltd (ASX: COL), TPG Telecom Ltd (ASX: TPG), and Chorus Ltd (ASX: CNU). These shares yield between 3% and 6%.

Major blue chips like Wesfarmers Ltd (ASX: WES) and BHP Group Ltd (ASX: BHP) are generally considered cyclical stocks but with strong defensive qualities (rather than pure defensive stocks). These types of shares are highly regarded for their dominant market position and stable dividends. At the time of writing, the shares yield around 3% to 4%.

Diversify your portfolio

Remember that if you want to aim for, say, a 5% yielding portfolio, not every stock in that portfolio has to yield 5%. You should aim for a diversified range of shares yielding varying amounts, which combined total 5%.

It's also best to focus on a diverse range of high-quality businesses with strong balance sheets and stable earnings. Ideally, you want to focus on stocks that are most likely to stand the test of time.

And you don't need to invest the whole sum in one go. Start with regular monthly investments and let compounding do some of the hard work for you.

The post How much passive income could I earn from a $650,000 superannuation balance? appeared first on The Motley Fool Australia.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set for a decent start to the week following a good session on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.2% higher. In the United States, the Dow Jones was up 1%, the S&P 500 rose 0.85%, and the Nasdaq stormed 0.95% higher.

Oil prices fall

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) will be on watch on Monday after oil prices pulled back on Friday night. According to Bloomberg, the WTI crude oil price was down 2.4% to US$100.05 a barrel and the Brent crude oil price was down 2.8% to US$104.61 a barrel. However, an escalation in the Middle East over the weekend could send oil prices higher when Asian markets open.

Buy NextDC shares

NextDC Ltd (ASX: NXT) shares could be worth a look according to Shaw and Partners. This morning, according to The Bull, its team has named the data centre operator as a buy. It said: "While investment spending remains elevated, management continues to secure long term customer contracts that provide earnings visibility. With structural growth tailwinds expected to persist for many years, NXT remains well positioned to deliver attractive long term shareholder returns."

Gold price edges higher

It could be a mildly positive start to the week for ASX 200 gold shares Capricorn Metals Ltd (ASX: CMM) and Northern Star Resources Ltd (ASX: NST) after the gold price edged higher on Friday night. According to CNBC, the gold futures price was up slightly to US$4,408.9 an ounce. Traders were buying the dip despite increasing US rate hike bets.

ASX shares going ex-dividend

Another group of ASX shares are going ex-dividend this morning and could trade lower. Among them are debt collector Credit Corp Group Ltd (ASX: CCP), telco Chorus Ltd (ASX: CNU), travel and transport company Kelsian Group Ltd (ASX: KLS), and airline operator Virgin Australia Holdings Ltd (ASX: VGN). The latter is paying a fully franked 7.6 cents per share dividend next month on 15 October.

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

We're helping you monitor ex-dividend dates with an article every Friday.

Here are some of the ASX shares due to trade ex-dividend next week.

To be eligible for the dividend, you must own the ASX share before its ex-dividend date.

ASX shares going ex-dividend next week

Check out which ASX shares go ex-dividend today.

The post 33 ASX shares going ex-dividend next week appeared first on The Motley Fool Australia.

What did Chorus Ltd report?

• Operating revenue rose 1.5% to $1,029 million
• EBITDA lifted 3% to $726 million
• Net profit after tax climbed to $37 million (FY25: $4 million)
• Operating expenses reduced 2% to $303 million
• Total FY26 dividend increased 4% to 60 cents per share (final dividend of 36 cents per share)
• Total fibre connections rose by 32,000 to 1,147,000, now 96% of all connections

What else do investors need to know?

Chorus continues to make strong progress transitioning to a simpler, all-fibre business. Fibre uptake reached 75.9% of serviceable addresses, edging closer to the company's 80% target by 2030. The decline in legacy copper connections accelerated, with only 44,000 remaining nationwide at year-end.

Chorus expanded its product range by launching new services such as Express Connect, Unified Transport, and TimeSync, aiming to support next-generation digital needs. The company has also increased its focus on digital inclusion, introducing the affordable Equity Fibre 100 broadband product for eligible low-income households.

What did Chorus Ltd management say?

Chief Executive Officer Mark Aue said:

FY26 marked the start of the second horizon of Chorus' strategy, extending through to FY29, focused on growth, simplicity and efficiency. We are building momentum towards a simpler, more focused business, while continuing to invest in the digital infrastructure New Zealand will rely on for decades.

What's next for Chorus Ltd?

Looking ahead to FY27, Chorus expects EBITDA between $730 million and $760 million, capital expenditure of $375 million to $415 million, and a minimum dividend of 62 cents per share (with partial imputation expected). The company plans to continue its copper network retirement, which is now scheduled to be completed by 2028.

Management sees ongoing demand growth for high-capacity, reliable, low-latency connectivity, driven by increasing adoption of artificial intelligence and data centre services. Chorus believes fibre is well-placed to support this demand and remains focused on disciplined investment, improving operational efficiency, and exploring new infrastructure opportunities.

Chorus share price snapshot

Over the past year, Chorus Ltd's share price has underperformed the S&P/ASX 200 index (ASX: XJO) with a decline of almost 9%.

View Original Announcement

The post Chorus Limited FY26 profit surges as fibre uptake climbs and dividend rises appeared first on The Motley Fool Australia.

Of the four stocks I'm looking at today, not only are the companies expected to pay good dividends, but three are also expected to increase in value.

I've selected the companies from broker reports issued this week. Let's have a look at who they like.

Chorus Ltd (ASX: CNU)

Chorus is a New Zealand-based fibre and copper line infrastructure company that last week reported that its total fixed line connections had fallen by 4,000, while its fibre connections increased by 5,000.

Macquarie has a price target of NZ$10.26 on the company, up from NZ$9.54, and forecasts a dividend yield of 6.3% this year, rising to 6.7% by FY28.

Chorus shares are also listed on the ASX.              

The broker said of the stock:

We see CNU emerging as a cleaner, simpler, and more fibre-led infrastructure business, with improving earnings visibility and an attractive dividend profile. FY26 should confirm this transition, with EBITDA tracking towards the upper half of NZ$710-730m guidance and a 60 cent dividend per share expected.

Aurizon Ltd (ASX: AZJ)

Macquarie has a neutral rating on this rail freight operator's shares, but is forecasting a dividend yield of 5.4% this year, rising to 6% next year.

The broker said the company finished FY26 with a strong quarter, and the outlook for FY27 is positive.

Macquarie added:

Cash generation is strong, balance sheet has capacity, so AZJ can support a higher dividend or further share buybacks. With yield becoming relatively attractive, and AZJ share price re-rated we see lifting the dividend payout as a more attractive option.

Viva Energy Ltd (ASX: VEA)

Viva this week said in a statement to the ASX that the refining margin at its Geelong oil refinery was up 156.4% over the same period last year, while volumes added 1.5% over the period.

This would likely translate into a boost in first-half EBITDA from $305 million last year to $770 to $780 million for the first half this year, the company said.

Macquarie increased its price target for the company on the back of the strong expected results, now at $3.70, up 9% from its previous estimate.

Macquarie is forecasting a 7.6% dividend yield for the current year, falling to 4.2% next year.

Regal Partners Ltd (ASX: RPL)

Regal recently booked what broker Morgans called "another good result" for the first half, growing its funds under management, performance fees, and net profit.

Morgans said regarding the company:

Whilst difficult to forecast, we are confident RPL can continue to grow funds under mangement as performance persists and the alternative strategies reach scale. On this basis we have a BUY recommendation and $4.00 price target.

Regal is expected to pay a dividend yield of 7.4% this year, Morgans said, increasing to 7.8% by 2028.

The post 4 ASX dividend stocks delivering better than 5% returns appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

It was a rough return for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares to trading this Tuesday following the long weekend break.

After closing the trading week on a bit of a sour note last Friday, investors didn't lose their cold feet over the weekend. The ASX 200 did recover a little from a sharp plunge at market open this morning, but still closed 0.24% down for the day. That leaves the index at 8,604.2 points.

This miserly start to the short trading week follows a mixed start to the American trading week on Wall Street last night.

The Dow Jones Industrial Average Index (DJX: .DJI) wasn't in a great Monday mood, falling 0.16%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared much better, though, advancing a confident 0.86%.

But let's get back to the local markets now and take stock of how the various ASX sectors fared amid today's tough trading conditions.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

What did Chorus report?

• Regulated Asset Base increased from $5.9 billion in 2024 to $6.0 billion for 2025
• Core RAB reached $5.1 billion, up $0.2 billion from 2024
• Financial Loss Asset reduced to $0.9 billion in 2025
• 2025 revenues were $101 million below the maximum allowed
• Operating costs for 2025 totalled $94 million (H2) and $97 million (H1) for core fibre
• $129 million in capital expenditure in H2 2025, $178 million in H1 2025

What else do investors need to know?

The 2025 information disclosure highlights Chorus' ongoing investments in expanding and maintaining its fibre network, with $343 million in new RAB assets commissioned during the year. The wash-up balance of $76.3 million, stemming from under-earning allowed revenue, will be carried forward to the next regulatory price-quality period (PQP3).

Chorus noted that both its financial numbers and regulatory calculations remain subject to review by the Commerce Commission. The company has also provided more detail for investors on its disclosures webpage.

What's next for Chorus?

Looking ahead, Chorus is focused on supporting fibre connectivity across New Zealand and optimising its regulatory position for PQP3. The company continues to invest in upgrading its network assets and managing costs as it meets both customer needs and regulatory obligations.

Further updates are expected as the Commerce Commission reviews the submitted disclosures and as Chorus refines its strategy for future periods.

Chorus share price snapshot

Over the past 12 months, Chorus shares have declined 8%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 2% over the same period.

View Original Announcement

The post Chorus's 2025 regulatory report: RAB grows, revenue falls short appeared first on The Motley Fool Australia.

After yesterday's horrid 1.7% drop, investors weren't in the mood to turn the ship around today. The ASX 200 spent the entire session in the red and ended up closing down 0.82%. That leaves the index at 8,428.4 points as we head into the weekend.

This not-so-nice end to the trading week for Australian investors follows a similarly downbeat morning on the American markets.

The Dow Jones Industrial Average Index (DJX: .DJI) couldn't hold water, falling 0.44%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) only managed a slightly better performance, dropping 0.28%.

Time now to get back to the local markets and take a closer look at what was happening amongst the different ASX sectors this Friday.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to fall again

The Australian share market looks set for a disappointing start to the week following declines on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 61 points or 0.7% lower. In the United States, the Dow Jones was down 0.25%, the S&P 500 dropped 0.6%, and the Nasdaq tumbled 0.9%.

Oil prices rise

It could be a positive start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices charged higher on Friday night. According to Bloomberg, the WTI crude oil price was up 3.1% to US$98.71 a barrel and the Brent crude oil price was up 2.7% to US$103.14 a barrel. This was despite US efforts to reduce prices.

ASX 200 shares going ex-div

A number of ASX 200 shares are going ex-dividend this morning and could trade lower. This includes Capricorn Metals Ltd (ASX: CMM), Chorus Ltd (ASX: CNU), Hub24 Ltd (ASX: HUB), Kingsgate Consolidated Ltd (ASX: KCN), and Ramelius Resources Ltd (ASX: RMS). Hub24 is rewarding shareholders with a 36 cents per share fully franked dividend next month on 21 April.

Gold price falls

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor start to the week after the gold price tumbled on Friday night. According to CNBC, the gold futures price was down 2% to US$5,023.1 an ounce. This was the second week in a row of weekly declines in response to inflation and rate hike concerns.

Buy Cochlear shares

The team at Wilsons thinks investors should be buying Cochlear Ltd (ASX: COH) shares. It highlights that the hearing solution company's shares are trading at a material discount to long-term multiples. The broker said: "Cochlear trades on a forward P/E multiple of ~26x, representing a >10 year low and a material discount to its 10-year average of ~42x. We view this as a compelling entry point for a high-quality business ahead of accelerating earnings growth."

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

In order to receive a dividend, you must own the ASX share before its ex-dividend date.

As we've reported, some of the biggest dividend increases among ASX mining shares this season came from the gold miners.

Next week, two of them go ex-dividend.

Ramelius Resources Ltd (ASX: RMS) shares will pay a fully-franked interim dividend of 3 cents per share on 15 April.

This exceeds the company's commitment to pay a minimum annual dividend of 2 cents per share for FY26.

Ramelius Resources reported a 13% increase in EBITDA to $347.7 million but a 6% fall in net profit after tax (NPAT) to $160 million.

The ASX gold share goes ex-dividend on Monday.

Capricorn Metals Ltd (ASX: CMM) shares will pay a maiden fully franked interim dividend of 5 cents per share.

The gold miner reported a 130% jump in underlying NPAT to $144.8 million for 1H FY26.

The ASX gold share also goes ex-dividend on Monday.

Here is a sample of the other ASX All Ords shares with ex-dividend dates next week.

ASX shares about to go ex-dividend

The post 26 ASX shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

What did Chorus report?

• Operating revenue: $506 million, up 1% year-on-year
• EBITDA: $357 million, up 3% from HY25
• Net profit after tax: $15 million (HY25: net loss of $5 million)
• Operating expenses: $149 million, reduced by $5 million
• Interim dividend: 24 cents per share, up 4% from HY25
• Total fibre connections increased by 31,000 to 1.13 million

What else do investors need to know?

Chorus continued its transition toward being a fully fibre-based network operator, with copper connections now reduced to just 3,000 in Chorus fibre areas and a full withdrawal expected by mid-2026. Fibre uptake rose to 72.4% in serviceable areas, with strong customer demand driving higher data consumption, now averaging 722GB per connection per month.

The company also reported ongoing cost savings, including lower labour costs and reduced maintenance, as fibre proves more resilient and efficient than copper. Capital expenditure declined to $158 million, reflecting tighter investment discipline and project timing.

Chorus has initiated its Equity Fibre product, designed to improve digital inclusion for households facing affordability barriers, highlighting its broader social focus alongside financial performance.

What did Chorus management say?

Chief Executive Officer Mark Aue said:

Our purpose is anchored in enabling better futures for Aotearoa at an intergenerational level. In many cases, a driving role we play is through connectivity. We know we have a role to play in helping address this, and so we are very proud to be launching our Equity Fibre product, designed to provide affordable and accessible connectivity. We're highly committed to driving progress in this space.

What's next for Chorus?

Chorus reaffirmed its full-year FY26 EBITDA guidance range of $710 million to $730 million, noting progress is tracking towards the upper half. The company plans to pay a total dividend of 60 cents per share, subject to no material adverse changes.

Looking ahead, Chorus is focused on achieving 80% fibre uptake by 2030, further streamlining operations, and delivering value by supporting New Zealand's increasing need for high-speed connectivity. The company will continue to reduce copper infrastructure and ramp up copper recycling and property optimisation initiatives.

Chorus share price snapshot

Over the past 12 months, Chorus shares have risen 5%, trailing the S&P/ASX 200 Index (ASX: XJO) which haas risen 9% over the same period.

View Original Announcement

The post Chorus half-year earnings: Profit growth and higher fibre uptake appeared first on The Motley Fool Australia.

Term deposits may stop capital destruction, but they also lack the ability to deliver capital growth. ASX 200 shares can deliver capital growth, income growth and a good dividend yield. The term deposit return is limited to the interest rate it offers.

The two businesses that I'll highlight are defensive companies with intentions to grow their payout in the coming year (and likely beyond).

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is a global pathology business with a presence in multiple countries including Australia, Germany, Switzerland, the UK, the US and New Zealand.

We don't choose when to get sick based on how the economy is performing, so demand is consistent. People generally place a high importance on their health, so I'd describe the company as defensive.

Impressively, the ASX 200 share has grown its payout in most years over the last three decades, with only a couple of years in which the dividend was maintained. It has delivered shareholders significant dividend growth over the years.

I'm expecting more growth in the coming years as the company benefits from rising and ageing populations in its key markets. Plus, new technology and tools can help the business provide better, more efficient pathology.

Sonic grew its operating profit (EBITDA) by 8% to $1.7 billion in FY25, with the normalised EBITDA margin expanding by 40 basis points. It's expecting to grow its EBITDA to between $1.87 billion to $1.95 billion in constant currency terms, or around $2 billion at the exchange rate at the time of the guidance.

The company is expecting its earnings per share (EPS) to grow by around 19% in FY26 using (at the time) current exchange rate.

The ASX 200 share says that future earnings growth is expected to support its "progressive dividend strategy".

It currently has a 5.1% dividend yield, excluding franking credits, which is stronger than what an Aussie can get from a term deposit these days.

Chorus Ltd (ASX: CNU)

Chorus is a New Zealand business that owns a high-speed fibre broadband network. The business has invested significantly in its infrastructure over the last few years and now the business can benefit from the cash flow generation of the assets.

With higher profits, the ASX 200 share can deliver larger dividends and shareholders can reap the benefits.

Western society is becoming increasingly digital, so Chorus is well placed to benefit as more traffic goes through its cables.

In FY25, the business grew its annual dividend per share by 21% and it's expecting to hike its FY26 dividend by another 4.3% to NZ 60 cents. At the current Chorus share price, that translates into a dividend yield of 6.3%.

The post Forget term deposits! I'd buy these two ASX 200 shares instead appeared first on The Motley Fool Australia.

It's the businesses that are overlooked by the market that could be the most undervalued.

Both of the companies I'll highlight in this article are well-liked by the fund manager L1 Capital. Both businesses are benefiting from the ongoing digitalisation of their respective markets.

Let's take a look at why both businesses are appealing businesses to own.

Imdex Ltd (ASX: IMD)

Imdex describes itself as a leading global mining technology company, which enables successful and cost-effective operations from exploration to production. It develops cloud-connected sensors and drilling optimisation products to improve the process of identifying and extracting mineral resources for drilling optimisation products to improve the process of identifying and extracting mineral resources for drilling contractors and resource companies globally.

Fund manager L1 said junior miner capital raising activity, a key leading indicator for exploration spending, continues to "trend positively" and has reached the highest levels since 2021.

The investment team believes this should provide a "strong tailwind" for the company as exploration activity increases after a period of weak underlying market conditions.

L1 also said that the ASX 200 share continues to execute well, reporting increased market share and resilient margins due to its leading product offering and strong cost management. The fund manager then said:

We still see positive tailwinds for the business, above and beyond the improving market environment, underpinned by further market share gains, margin expansion and digital penetration.

In the first quarter of FY26, Imdex reported 10% revenue growth of 10% year-over-year and 3% quarter-over-quarter. The gross profit margin and operating profit (EBITDA) margins continue to perform as expected.

Chorus Ltd (ASX: CNU)

Chorus is best known for being the builder and owner of a major fibre network in New Zealand. It continues to see strong growth for data. September 2025 data usage increased 10% year-over-year.

L1 notes that Chorus has benefited from several incremental but positive events.

In August, the ASX 200 share delivered a FY25 result and FY26 outlook that was broadly in line with expectations.

However, the FY26 guidance of 60 cents per share (up 4.3% year-over-year) was "modestly ahead" of market expectations and is well supported by ongoing discipline over the levels of sustaining capital expenditure. In the three months to September 2025, Chorus implemented speed boosts and also flagged price changes for 2026, which were also slightly ahead of market expectations.

L1 notes that Chorus has a dividend yield of around 7%. The fund manager concluded its thoughts on the ASX 200 share with the following:            

Chorus remains an attractive asset, with the business well placed to deliver robust earnings and dividend growth in the years ahead from a unique platform as a scarce, regulated, essential digital infrastructure operator.

The post 2 ASX 200 shares to buy with strong growth outlooks appeared first on The Motley Fool Australia.

Of course, term deposits are still effective at protecting capital and generating a bit of passive income. But, the level of yield on offer is now lower than it was last year.

I can understand why investors would not want to go from 'safe' term deposits to a somewhat higher-risk ASX dividend share like an ASX mining share.

That's why I think the businesses APA Group (ASX: APA) and Chorus Ltd (ASX: CNU) are both compelling options.

Defensive earnings

Both of the ASX 200 shares I just mentioned are infrastructure-style businesses with a strong level of demand each year and good prospects for further growth.

APA owns a portfolio of energy assets across Australia, including a major network of gas pipelines. It's also invested in other gas assets, renewable energy generation, and electricity transmission. The vast majority of its revenue is linked to inflation, which provides pleasing organic growth for its top line.

Chorus provides telecommunications infrastructure throughout New Zealand. It has invested significantly in a fibre network, and Chorus has agreed with the Commerce Commission and Crown Infrastructure Partners that data traffic through its core network supporting copper and fibre broadband at any one time must not exceed more than 90% of network capacity.

The New Zealand company says that even as New Zealand's data usage continues to grow, its network will always have at least 5% more than it needs. With traffic currently less than 70% of the capacity available, there is plenty of room for growth.

In my view, both APA and Chorus tick the box for defensive earnings.

Better yield

Both ASX 200 shares have good prospects for earnings growth, and they're currently offering very pleasing yields for investors.

Payouts are not guaranteed, of course, but the FY25 payouts were compelling and sizeable for investors focused on income.

In the 2025 financial year, APA decided to pay a distribution per security of 57 cents, which translates into a trailing distribution yield of 6.4%.

Chorus also paid a pleasing amount of passive income to investors. The board of directors decided on an annual payout of NZ 57.5 cents per share. That translates into a dividend yield of 6.2%.

Payout growth

The last positive is payout growth. Payments we receive from term deposits are fixed – the payout is guaranteed, but there's no prospect of organic growth.

ASX 200 shares can increase their payout and send cash our way each year.

APA is expecting to increase its FY26 payout to 58 cents per security, representing a forward distribution yield of 6.5%, which I think represents a very good yield.

Chorus is expecting to increase its annual payout to NZ 60 cents in FY26, which would represent a forward dividend yield of 6.4%.

If those guided payouts become reality, they would provide significantly more passive income than what term deposits are now offering.

The post Forget term deposits! I'd buy these two ASX 200 shares instead appeared first on The Motley Fool Australia.

With the August reporting season in the rearview mirror, dozens of companies have ex-dividend dates next week.

Here's a sample of the ASX shares going ex-dividend soon.

23 ASX shares going ex-dividend next week

How to make ex-div dates work for you

To receive an ASX company's next dividend, you must buy or already own the shares before the ex-dividend date.

If you're interested in buying a stock trading cum dividend, you have two options.

Buy it before the ex-dividend date, and earn a quick return with the upcoming dividend payment.

Alternatively, buy the stock on its ex-dividend date, when it will likely trade lower because the dividend entitlement is no longer attached.

We've seen examples of this recently, with CSL Ltd (ASX: CSL) shares dropping 2.15% on their ex-dividend date.

TV network owner Nine Entertainment Co Holdings Ltd (ASX: NEC) plummeted 36% yesterday after going ex-dividend, too.

Sometimes there are exceptions, like we are seeing with WiseTech Global Ltd (ASX: WTC) shares today.

The post 23 ASX shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

Firstly, while the downside of term deposits is limited, so is the upside. There is no potential growth at all, the return is the fixed interest rate. Plus, with the RBA rate cuts happening, new term deposits are now offering lower rates than they were a year or two ago.

ASX 200 shares can pay dividend yields that are similar (or better) than term deposits. Most importantly, the companies can grow earnings over time, sending the share price and passive income higher with it.

With that in mind, the below two ASX 200 shares are more attractive to me than term deposits.

Transurban Group (ASX: TCL)

Transurban is a major toll road business, with assets in both Australia and North America.

The fall in the RBA interest rate is a major positive for Transurban. It can reduce the cost of debt (boosting profitability) and it may also lead to investors being willing to value the cash flow at a higher multiple.

I'm expecting Transurban's underlying earnings to continue growing thanks to a combination of both growing traffic (including new projects such as the West Gate Tunnel project) and rising toll prices.

In FY25, the ASX 200 share reported a 2.2% increase of overall average daily traffic (ADT). Sydney ADT rose 2.7%, Melbourne ADT grew 1.2%, Brisbane ADT rose 1.5% and North America ADT increase 6.4%. This helped proportional toll revenue grow 5.6% and proportional operating profit (EBITDA) rising 7.4%.

Transurban is expecting to grow its distribution by 6% to 69 cents per security in FY26. This translates into a forward distribution yield of 4.8%.

Chorus Ltd (ASX: CNU)

Chorus is not a well-known business, but it plays an important part in the New Zealand economy.

It owns a significant fibre cable network in New Zealand. After a period of building its network, it's now reaching a point where it's spending less on constructing and the cash generation can now flow through the business.

With higher cash flow, the ASX 200 share can pay growing dividends to shareholders, which is pleasing for income-focused investors.

In FY25 the business grew its annual dividend per share by 21% year-over-year to NZ 57.5 cents.

The ASX 200 share has provided guidance that it expects to grow its annual dividend by 4.3% in FY26 to NZ 60 cents per share. At the current Chorus share price, that represents a forward dividend yield of 6%. Operating profit (EBITDA) is expected to grow by between approximately 1% to 3.5%.

The post Forget term deposits! I'd buy these two ASX 200 shares instead appeared first on The Motley Fool Australia.

These range from healthcare and financials to energy, information technology, and consumer staples – with the latter home to supermarket giants such as Coles Group Ltd (ASX: COL).

Then there's also the communication services sector, which is made up of two industry groups.

Firstly, the 'media and entertainment' group includes a range of companies involved in advertising, broadcasting, publishing, and interactive media.

Secondly, the 'telecommunication services' group covers businesses operating in mobile and integrated communications services.

And leading the charge in the telecom space is a name that needs little introduction: Telstra Group Ltd (ASX: TLS).

Telstra operates Australia's largest mobile network.

It also provides a wide array of services, including mobile and fixed-line telecommunications, data, and digital content, for both consumers and businesses.

Like many other blue-chip shares, Telstra is preparing to report its financial results for FY25 during August.

But it is not going solo, with several other prominent ASX 200 communication services stocks also due to deliver their earnings results in the coming weeks.

Reporting galore

Below, we provide the key reporting dates for the communication services sector.

Firstly, however, a small word of caution.

These dates are subject to change as companies fine tune their financial numbers. And this list is not exhaustive.

Secondly, investors with a broader interest can view reporting dates for leading ASX companies from different sectors in the following links:

• 9 ASX 200 Mining Stocks
• 6 ASX 200 Energy Companies
• 7 ASX 200 Consumer Staples Businesses
• 10 ASX 200 Healthcare Shares

Reporting dates – ASX 200 communication services stocks

• Wednesday 6 August – Rea Group Ltd (ASX: REA): Digital advertising business specialising in real estate. It owns several residential and commercial property websites in Australia, as well as mortgage broking assets.
• Monday 11 August – CAR Group Limited (ASX: CAR): Runs a leading digital vehicle marketplace portfolio, including Carsales in Australia and Trader Interactive in the US.
• Thursday 14 August – Telstra Group Ltd (ASX: TLS): The headline act for this sector's earnings season. Telstra delivers comprehensive mobile, broadband, and digital services across the country.
• Tuesday 19 August – Seek Ltd (ASX: SEK): Operator of online employment marketplaces in Australia, New Zealand, and parts of Asia.
• Monday 25 August – Chorus Ltd (ASX: CNU): New Zealand-focused provider of fixed-line communications infrastructure.
• Wednesday 27 August – Nine Entertainment Co Holdings Ltd (ASX: NEC): Integrated media entertainment company spanning TV, radio, digital publishing, and newspapers.
• Thursday 28 August – TPG Telecom Ltd (ASX: TPG): Telecommunications provider and owner of household names such as Vodafone, TPG, and Internode unveils its results for the half-year ending in June.

The post Telstra shares lead reporting dates for 7 ASX 200 communication services stocks appeared first on The Motley Fool Australia.

The Reserve Bank of Australia (RBA) cash rate has already been cut twice in 2025. Experts predict that the rate could reduce multiple times over the next 12 months.

Each time the RBA rate is reduced, I'd expect virtually every financial institution to reduce the interest they pay on their term deposit.

But, ASX dividend shares don't cut their dividend just because the RBA has cut rates. Indeed, the two ASX 200 shares below seem likely to grow their dividends for the foreseeable future.

Chorus Ltd (ASX: CNU)

Chorus describes itself as a builder and manager of an open-access internet network. It's also rolling out ultra-fast broadband that should be an ultra-long-term asset. The ASX dividend share also works with various New Zealand phone and broadband providers.

As fund manager L1 has pointed out, it's one of the few regulated digital infrastructure assets that can still be bought on a stock exchange.

Given how the company's infrastructure work is progressing, its profile is changing from a network builder to a network operator. This can help produce strong cash flow and pay shareholders significant dividends.

L1 is predicting that Chorus can continue its dividend growth going into FY26, with a payout of NZ 60 cents per share. This means the ASX 200 dividend share could pay a dividend yield of almost 7%.

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

Soul Patts is an investment conglomerate that has been operating for over 120 years. I think the ASX 200 share is an excellent choice compared to a term deposit.

I'd describe the company as one of the most defensive ASX 200 shares for dividends because of how it has a portfolio designed to generate resilient cash flow, which in turn can pay for ongoing dividends.

The ASX 200 share has paid a dividend in every year in its 120-year existence and has increased its annual ordinary payout each year since 2000, which is the best record on the ASX.

In terms of sectors it's invested in, the portfolio includes telecommunications, resources, financial services, industrial properties, building products, financial services, agriculture, swimming schools, electrification and plenty more.

I'm expecting continuing dividend growth from the business and it currently has trailing grossed-up dividend yield of 3.5%, including franking credits.

The post Forget term deposits! I'd buy these two ASX 200 shares instead appeared first on The Motley Fool Australia.

And while Australia's dominant telco is certainly a good option right now, there is another ASX telco stock that could deliver even greater returns.

That's the view of analysts at Macquarie Group Ltd (ASX: MQG), which are recommending this stock to clients.

Which ASX telco stock?

The telco stock in question is Chorus Ltd (ASX: CNU). It is New Zealand's largest telecommunications infrastructure company, building and operating nationwide fibre broadband and copper telecommunication network.

Macquarie notes that the company has released a quarterly update, which was largely in line with expectations. It said:

Fibre uptake: Fibre uptake reaches 72.1%, with 8,000 new connections in 4Q (Auckland 76.3% (flat), Dunedin 76.5% (+0.1%), Wellington 70.9% (+0.1%)). Copper withdrawal continuing: Copper connections decreased by 10,000 in 3Q (-19K in 3Q). Just 13,000 copper connections remain in areas where CNU has fibre available. Full withdrawal expected by mid-2026.

In addition, the broker was pleased to see that management has reaffirmed its full year guidance for FY 2025. It explains:

CNU delivered 1H25 EBITDA of $346m and reaffirmed FY25 guidance of $700m-$720m (currently tracking to the lower half of the range). We (and consensus) remain comfortable with guidance, supported by the quarterly connections trend. The implied strength in 2H25 EBITDA is in part underpinned by the new pricing schedule, effective from 1 Jan 2025. There is evidence that the cyclical headwinds called out in 1H25 have continued, with some consumers trading down their broadband tier, but more significantly, not trading up as might have been expected, both impacting ARPU.

Big potential returns

This morning, the broker has reaffirmed its outperform rating and NZ$9.83 (A$8.96) price target on the ASX telco stock.

Based on its current share price of A$7.75, this implies potential upside of 15.6% for investors over the next 12 months.

In addition, Macquarie is forecasting very attractive dividend yields of approximately 6.7% in FY 2025 and then 6.9% in FY 2026. Combined, this stretches the total potential 12-month return to approximately 22%.

Commenting on its outperform recommendation, Macquarie said:

We retain an Outperform recommendation, reflecting increased regulatory certainty and the lift in FY25 dividend (along with increased visibility into the medium-term dividend trajectory), and non-regulated revenue opportunities.

Catalysts: Quarterly connections updates, accelerated copper network closure, second till revenue opportunities.

The post Macquarie tips 22% return for this ASX telco stock appeared first on The Motley Fool Australia.