Inflationary pressures affect daily life. But they also affect how we invest. All investments are vulnerable to the corrosive effects of inflation. Investment properties become more expensive as interest rates rise, which means upward pressure on rents. Companies face rising input costs, which they either have to weather or pass onto their customers. Navigating this proverbial minefield as an investor is no easy task.

Unfortunately, it might be something we may have to get used to, though. This week, Commonwealth Bank of Australia (ASX: CBA)'s chief economist, Luke Yeaman, argued the following in a client note:

…the risks to inflation are mounting, and they sit to the upside. As a result, the November meeting remains 'live'. Even if trimmed mean inflation prints at 1.0% in Q3, the RBA may still want to take out some pre-emptive insurance. At a minimum, the RBA will respond aggressively to any new upside surprises, or any signs that the expected slowdown in growth and resultant easing of inflation pressures is not occurring.

More broadly, the structural forces outlined above have materially increased the risk that inflation will be more persistent than forecast and that several more interest rate hikes will be needed over the next 6 – 12 months. Either way, rates will be structurally higher over coming years. Under any near-term scenario, markets are increasingly coming to terms with the fact that we are now in a higher inflation, higher interest rate environment. There is evidence of this in global bond markets, with US 10-year yields recently hitting their highest level since 2002.

Not exactly soothing stuff. However, we must invest in the world we are living in, not the one we wish we were. So how does one invest under a 'higher for longer' inflationary environment?

Well, I think there are two principles to stand by as we continue to build out our portfolios.

Investing in a high inflation world

Firstly, I think it's imperative to only invest in ASX shares, in companies, that have significant pricing power. Companies that make for successful investments need to be able to pass on any increased costs to consumers. As a shareholder, you don't want to be left with that bill. It is usually the ASX shares that display evidence of possessing at least one economic moat that are able to do this most effectively.

Think of Coles Group Ltd (ASX: COL) or Woolworths Group Ltd (ASX: WOW). As they remain amongst the cheapest businesses to purchase groceries and household essentials from, customers will usually keep coming through the door, even if prices are on the rise. As such, much as we detest it, they can pass on those higher costs to us relatively seamlessly.

Ditto for a company like Telstra Group Ltd (ASX: TLS), or Transurban Group (ASX: TCL). Telstra arguably offers superior network coverage compared to its competitors, whilst Transurban has the right to toll some of Australia's most vital arterial roads. This means that many customers will have no choice but to swallow any price rises these two shares choose to pass on. If you're a customer of Transurban or Telstra, you might not like that. But if you are a shareholder, that's mana from heaven.

Secondly, we can consider cash-based investments. With interest rates so high, we are at a rather unique situation that hasn't been seen for decades. It is now possible to obtain a risk-free term deposit or savings account that pays a substantial and real return. After the latest interest rate hike, it is now possible to get a term deposit that yields as much as 5.5% – well above the current rate of inflation.

Sure, you won't get franking credits or the possibility of capital growth. But you won't get any risk or volatility either. In the current environment, I don't see anything wrong with allocating at least a portion of one's portfolio to these cash assets while rates remain so elevated.

The post Higher for longer: How to invest in a high-inflation Australia appeared first on The Motley Fool Australia.

I think I'd approach ASX share picking a little differently.

I'd want businesses I could trust to keep making progress without me watching every announcement or share price movement. Strong market positions, capable management, and long-term growth opportunities would be especially important.

I'd also want variety. Even a great company can have a difficult year, so I wouldn't want the entire portfolio relying on the same industry.

With that in mind, these are the 10 ASX shares I'd choose.

Commonwealth Bank of Australia (ASX: CBA)

I'd start with Commonwealth Bank because I like how firmly established it is in everyday Australian life.

Millions of customers rely on the bank to receive their wages, pay bills, manage savings, and finance their homes. Once people have built their financial lives around a bank, switching can be a considerable undertaking.

That gives CBA a valuable base of long-standing customer relationships.

I also like how seriously the bank takes technology. Its digital services make banking convenient for customers while helping it handle enormous transaction volumes efficiently.

I think that investment could help defend its market position as financial services continue changing.

Of course, CBA isn't immune to problems. Higher borrowing costs can put pressure on households, an economic downturn could increase bad debts, and the shares often trade at a premium valuation.

But if I weren't allowed to check my portfolio until next October, CBA is the kind of business I'd feel comfortable owning.

I think CBA would be a great starting point, but some of the other nine ASX shares could be even more important to the portfolio's success.

Here's what else would make my list.

Goodman Group (ASX: GMG)

Goodman would give me exposure to the growing demand for industrial properties and data centres.

What I particularly like is that the company has spent years building relationships with major customers and securing well-located development sites.

Those advantages are increasingly valuable as businesses look for facilities with reliable electricity access, particularly for data centres.

Developing these properties requires considerable planning and investment, so I wouldn't expect progress to happen overnight.

I'd be happy checking Goodman's development pipeline once a year and seeing how its projects were progressing towards completion and generating income.

BHP Group Ltd (ASX: BHP)

Mining giant BHP earns a place because I like its ability to plan decades ahead.

Building a major mine requires enormous investment, technical expertise, and infrastructure. BHP already owns assets that would be extremely difficult for competitors to replicate.

It also has opportunities to extract more value from existing operations, including its expanding copper business in South Australia.

Commodity prices will fluctuate, sometimes sharply. But I wouldn't want to make investment decisions based on every movement in iron ore or copper prices.

I'd be more interested in whether BHP was keeping costs competitive, maintaining financial strength, and making sensible investments.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is a company I'd trust to make sensible decisions while I wasn't watching.

Bunnings, Kmart, and Officeworks have strong positions in familiar retail markets, but I think the bigger advantage is the group's approach to managing capital.

It can invest in businesses that are performing well, improve weaker operations, and pursue new opportunities when they make sense.

I like having a management team that can adjust its priorities as conditions change, rather than relying on a single growth strategy.

That's a valuable quality when you're leaving investment decisions in the company's hands.

Coles Group Ltd (ASX: COL)

I'd want at least one business providing something households need almost every week.

Coles fits that description. Its supermarkets benefit from regular grocery demand, and its investments in automated distribution could help improve efficiency over time.

What I'd be looking for is steady progress in controlling costs, improving its operations, and keeping customers coming through the doors.

I think Coles has the scale and established network to remain a major part of Australian retailing, making it a reassuring addition to a portfolio I'd rarely check.

Macquarie Group Ltd (ASX: MQG)

Macquarie would add a different kind of financial business to CBA.

Its operations span infrastructure, asset management, banking, and commodities markets, giving it opportunities to invest and generate earnings internationally.

Large investment transactions don't necessarily happen when analysts expect them to, and a quieter period doesn't automatically mean the business is struggling.

I'd rather assess how Macquarie was developing its businesses and investing capital over a full year than worry about the timing of individual transactions.

Sigma Healthcare Ltd (ASX: SIG)

Sigma is another ASX share I'd be happy leaving to get on with its growth plans.

Following its merger with Chemist Warehouse, it has become a major force in Australian pharmacy retailing and pharmaceutical distribution.

What I like is that management has a clear opportunity to grow the business by opening more stores, expanding internationally, and making the combined operations more efficient.

I think an annual review would suit this investment well. I'd want to see whether Sigma was expanding its store network, improving profitability, and delivering the savings expected from the merger.

Those developments would tell me much more about its progress than short-term share price movements.

REA Group Ltd (ASX: REA)

REA is an ASX share I'd want in my portfolio because of its powerful position in Australia's property market.

Its realestate.com.au platform brings together property buyers, sellers, and agents.

Agents want to advertise where buyers are looking, while buyers visit because that's where so many properties are listed. That creates an advantage that I think would be extremely difficult for a competitor to overcome.

Property market conditions will influence advertising activity, but REA has an established audience and opportunities to develop additional services around it.

I like that the business can continue building on a market position it already owns.

Breville Group Ltd (ASX: BRG)

Breville has built a strong reputation for premium coffee machines, particularly in North America and Europe.

What I like is that the company has a clear path to further international growth. It can expand into new markets, reach more customers in existing ones, and introduce products that build on its established reputation.

I wouldn't feel the need to follow every product launch or monthly sales trend.

Checking once a year to see whether Breville was growing its international presence and strengthening its brand would be enough for me.

ResMed Inc (ASX: RMD)

I'd round out my portfolio with ResMed, an ASX share I think has a particularly dependable source of long-term demand.

Millions of people around the world are living with undiagnosed sleep apnoea, and I expect more of them to seek treatment as awareness and diagnosis improve.

ResMed already has a leading position in this market, supported by its established medical technology and relationships with healthcare providers.

I like that its growth doesn't depend on predicting the next big trend. The need for effective sleep apnoea treatment is already there, and I think ResMed is well placed to help more patients each year.

That's the kind of business I'd feel comfortable checking in on annually.

Foolish takeaway

I wouldn't expect these 10 shares to outperform every year, and I'd still want to review their investment cases during my annual check.

But I like the thought of owning businesses with established strengths and management teams capable of making good decisions without my constant attention.

If I could only look at my portfolio once every 12 months, these are the companies I'd trust to get on with the job.

The post If I could only check my ASX portfolio once a year, these are the 10 shares I'd own appeared first on The Motley Fool Australia.

And this doesn't just apply to ASX share prices. It can also apply to dividend income.

For example, if a company increases its dividend by approximately 7.2% annually, its payout will double over 10 years.

That means an investment generating $1,000 in annual dividends today could potentially provide $2,000 in 2036, without the investor having to buy another ASX share.

Of course, achieving that requires a business capable of growing its earnings and cash flows consistently enough to support those increases.

So, I decided to look for ASX shares that I believe could potentially double their dividends over the next decade.

Here are five that caught my attention.

Coles Group Ltd (ASX: COL)

The first ASX share I would consider is Coles. I think the supermarket giant has many of the qualities that make a good long-term dividend investment.

It operates in an industry where demand is relatively dependable, with millions of Australians visiting its stores every week to buy everyday essentials.

But what I like most is the opportunity to improve profitability. Coles has invested heavily in automated distribution centres, technology, and improving its supply chain. These investments are already helping the company become more efficient, and I believe there are further benefits to come.

Its FY 2026 results were encouraging, with underlying net profit increasing by approximately 13%. The company also paid fully franked dividends totalling 78 cents per share for the year.

If that payout doubled by 2036, shareholders would be receiving $1.56 per share annually.

I think this makes Coles a good starting point, but I believe some of the other companies on my shortlist have the potential to deliver even greater dividend growth.

In fact, a couple could be paying substantially more to shareholders by 2036 if their ambitious growth plans deliver.

So, which other ASX shares do I believe could double their dividends over the next decade?

Dicker Data Ltd (ASX: DDR)

Another ASX share I believe could potentially double its dividends by 2036 is Dicker Data.

The company distributes technology products, software, and cloud solutions to thousands of Australian and New Zealand businesses through its reseller network.

I like this business because technology spending is becoming increasingly important to organisations of all sizes. Whether companies are upgrading computers, moving to the cloud, or strengthening cybersecurity, Dicker Data is well positioned to benefit.

And there is evidence that demand remains strong. During the first half of FY 2026, Dicker Data increased its gross revenue by 14.2%, while net profit jumped 54.1%.

The company has also announced plans to acquire Sektor Group, which will give it an established presence in parts of Southeast Asia and expand its range of technology products. I think this could open up additional growth opportunities over the coming decade.

Dicker Data currently pays quarterly dividends of 11.5 cents per share, equivalent to 46 cents annually if maintained. Doubling that annualised amount would mean shareholders receiving 92 cents per share in 2036.

While its relatively high dividend payout ratio means earnings growth will be important, I believe Dicker Data has the potential to deliver it.

REA Group Ltd (ASX: REA)

The next ASX share I would consider is property listings company REA Group. I think this is one of the best businesses on the Australian share market, largely because of the powerful competitive position enjoyed by its realestate.com.au platform.

Its enormous audience makes it an essential advertising destination for real estate agents, which in turn helps attract even more property buyers and sellers.

And that gives REA considerable pricing power. As agents become increasingly dependent on its platform, the company can continue introducing higher-value advertising products and services.

Importantly, REA doesn't necessarily need property listings to grow substantially to increase its earnings. That was demonstrated in FY 2026, when its Australian residential revenue increased by 12%, despite relatively flat listing volumes.

Its fully franked annual dividend also increased by 20% to $2.97 per share. If REA could sustain average dividend growth of around 7.2%, that payout would reach approximately $5.94 by 2036.

I wouldn't be expecting 20% growth every year, but given its competitive advantages and opportunities to increase revenue per listing, I think doubling its dividend is achievable.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is another ASX share that I believe deserves a place on this list. The enterprise software provider supplies essential systems to councils, universities, government organisations, and businesses.

I like the stickiness of its offering. Once customers have adopted TechnologyOne's software, switching to another provider can be expensive and disruptive. This helps the company retain customers and generate recurring revenue.

And as its customer base expands, I believe profitability could grow considerably. In fact, TechnologyOne reported annual recurring revenue of $598 million at the end of March 2026, representing an increase of 17%.

But management isn't resting on its laurels. It is targeting more than $1 billion in annual recurring revenue by FY 2030.

That provides a strong foundation for future earnings and dividend growth, particularly as the company benefits from the economies of scale of its cloud software platform.

WiseTech Global Ltd (ASX: WTC)

A final ASX share I think has a lot of dividend growth potential is WiseTech Global.

The logistics software company is best known for CargoWise, which helps freight forwarders and logistics providers manage complex international supply chains.

I think the long-term opportunity here is significant. Global logistics remains a complicated industry, and companies are increasingly turning to technology to improve efficiency and manage their operations.

CargoWise is deeply embedded in many customers' businesses, making it difficult to replace and providing WiseTech with recurring revenue.

In FY 2026, WiseTech generated US$410.7 million in free cash flow, an increase of 43%. I believe continued growth in CargoWise and successful integration of its acquisitions could support significantly higher earnings and dividends by 2036.

However, WiseTech arguably carries greater execution and governance risks than some of the other companies on this list.

Its borrowings following the e2open acquisition also mean debt reduction will compete with dividend growth for cash.

Nevertheless, with its relatively low dividend payout ratio and significant growth opportunities, I believe its dividends could potentially more than double over the next decade.

Which would I choose?

All five ASX shares offer different paths to higher dividend income, but I think REA Group and TechnologyOne stand out for their combination of competitive advantages, recurring revenue, and long-term growth potential.

Neither necessarily offers the highest dividend yield today. However, if they can continue growing earnings at attractive rates, I believe their dividends could be substantially larger in 2036.

The post I looked for ASX shares that could double their dividends by 2036. Here's what I found appeared first on The Motley Fool Australia.

Why? The answer is obvious: Retirees have no primary source of income to fill in the gaps if there are any hiccups with their portfolio's income stream. They only get one shot at building a portfolio of reliable income providers. Miss that shot, and you miss your paycheque.

That's why selecting the right shares is absolutely vital. Luckily for any investors who find themselves in that camp, I think there are characteristics we can look out for in a retirement share that indicate whether it will be a suitable candidate for providing income that one can live off.

Let's examine these characteristics by going through five ASX dividend stocks that I think have what it takes to pay you for life.

5 ASX dividend stocks that can pay you for life

National Australia Bank Ltd (ASX: NAB)

The ASX banks are well-known for providing fat, franked dividends, and NAB is no different. It has funded generous shareholder payouts for decades, almost all of which have come with full franking credits attached. But does this bank and dividend stock have what it takes to pay you for life?

Well, I think that it does. NAB is one of the big four banks, forming an essential pillar of the Australian financial system. It comfortably inhabits that cozy oligopoly, with a rusted-on customer base, healthy profitability, and a sound loan book. It has been around and paying dividends for decades, and should be for decades to come.

Like all banks, NAB's fortunes do tend to rise and fall alongside the broader Australian economy. Saying that, I think this bank will have the capacity, whenever the economic signs are clear, at least, to fund generous, franked dividends for the foreseeable future.

BHP Group Ltd (ASX: BHP)

Next up, we have the largest public company in Australia to discuss. BHP is Australia's largest miner, and one of the most prominent mining companies in the world. Normally, I prefer not to include resources or energy stocks in a portfolio, at least in meaningful allocations, due to the volatile nature of the commodities business. Even dividend stocks that irregularly deliver massive payouts.

However, I think BHP is worthy of an exception. For one, its profits don't rise or die on just one metal. BHP has significant operations in a range of vital commodities. There's its flagship iron ore, of course. But also potash, metallurgical coal, and copper. Copper in particular is exciting and future-facing. BHP has been expanding its operations in the red metal, which is an essential ingredient in electric vehicles, batteries, solar panels, data centres, and much more.

Thanks to this company's size and scale, BHP should be able to supply massive amounts of these essential commodities for decades to come. Shareholders stand to benefit, particularly when prices are high, and BHP turns on its famous dividend spigots.

MFF Capital Investments Ltd (ASX: MFF)

Turning to a lesser-known ASX dividend stock now, let's talk about MFF Capital. MFF is a listed investment company (LIC). This means it owns and manages its own portfolio of underlying investments on behalf of its shareholders. In MFF's case, this portfolio is almost entirely made up of top US dividend stocks. These include the likes of Alphabet, Visa, Mastercard, American Express, and more.

MFF has been investing in the US for many years, and has shown that it can deliver market-beating returns for its ASX investors. It has one of the best dividend growth streaks on the ASX, with its annual payouts rising from 6.5 cents per share in 2021 to 21 cents per share in 2026 (that's with an annual hike every year along the way). It also attaches full franking credits to these payouts.

I'd be happy to spruik this income powerhouse as a cornerstone of an early retirement portfolio.

Coles Group Ltd (ASX: COL)

Returning to a well-known ASX blue-chip dividend stock, Coles is another prime candidate for a retirement portfolio. Coles is a stock known and perhaps loved by most Australians. It boasts the second-largest supermarket chain in the country, alongside its Liquorland chain of bottle shops.

Coles boasts a profitable and mature business, which is a great start. But its true strength comes from its nature as a consumer staples share. As a purveyor of food and household essentials, Coles sells goods that we tend to need to buy. That's regardless of the state of the broader economy. This gives Coles a highly defensive earnings base from which it can pay its dividends. Since listing on the ASX in its own right back in late 2018, Coles has managed to hike its annual dividends every single year. It also tends to pay full franking credits too.

As long as Coles is one of the cheapest places to purchase food and household essentials, it should be a fantastic investment to own if you wish to fund an early retirement.

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

Last, but certainly not least, we have investing house Washington H. Soul Pattinson, or Soul Patts for short. Soul Patts is an interesting and quite unique ASX dividend stock. Similarly to MFF, it invests in an underlying portfolio of investments for its shareholders. This portfolio is hugely diversified. It ranges from stakes in other ASX blue chips to venture capital, property, private credit, and more.

Now, that in itself is not a reason to invest in this dividend stock. However, Soul Patts has been around for more than a century. Over that long time span, it has consistently generated market-beating returns for its investors. This includes what is the ASX's best dividend track record, bar none.

This company has increased its annual dividend every single year since 1998, including in 2026. That's through the dot-com bust, the global financial crisis, and the COVID-19 pandemic. The rate of these increases has far outstripped inflation too. Just to put a cherry on this cake, those dividends almost always come fully franked.

With this inherent diversity and indomitable track record, I think this ASX dividend stock would be the crown jewel in any retirement portfolio, or any ASX share portfolio, for an investor who wants financial success and freedom for the rest of the 2020s, the 2030s, and beyond.

The post Plan on retiring early? I've found 5 dividend stocks that have what it takes to pay you for life appeared first on The Motley Fool Australia.

Figures from industry analyst Chant West show that since the introduction of mandatory superannuation in the early 1990s, the median growth fund has returned 8% per year, well above the inflation rate over that period.

The big question is, how much superannuation do you need?

Of course, that depends on what sort of income stream you'd like in retirement, and whether you can afford to save enough during your working life to set yourself up.

Having a goal in mind is the first step, so let's see what it would take to generate $80,000 per year in income from your superannuation.

How much in superannuation savings do you need for $80,000 per year in income?

For simplicity's sake, I will calculate this based on dividends alone. However, once people start to draw down on their superannuation, it is, in practice, usually a combination of dividends and share sales (capital gains) that creates the income stream.

To calculate how much you will need to generate $80,000 per year, you need to make an assumption about how much you can expect to earn from dividends, or the average dividend yield.

I would argue that with the benefit of franking credits a return of about 7.5% is realistic.

Franking credits pay back a shareholder for the company tax already paid, which is 30% for a fully franked dividend.

In practice this means that a 5% fully franked dividend is worth 7.14% once credits are taken into account for retirees who pay a zero per cent tax rate.

Not all shares you own need to pay this rate. Some can be lower-dividend, higher-growth shares, while some can be high-dividend payers.

Which shares could I buy to generate an $80,000 income stream?

An example of the latter is some infrastructure stocks such as Atlas Arteria Ltd (ASX: ALX), which is currently paying a trailing dividend of 7.6%, albeit without franking.

In the financial services sector, Morgan Stanley predicts Bank of Queensland Ltd (ASX: BOQ) will pay at least a 6% dividend in FY28, while Regal Partners Ltd (ASX: RPL) is paying a trailing dividend of almost 13%.

Among the major retailers, the dividend yields are a bit lower, with Woolworths Group Ltd (ASX: WOW) paying 2.35% and Coles Group Ltd (ASX: COL) 3.27%, although they do come with the security of large, stable markets.

Real estate investment trusts can also be good dividend payers, with Arena REIT (ASX: ARF) paying 7.6%, Charter Hall Long Wale REIT (ASX: CLW) paying 7.84%, while Waypoint REIT (ASX: WPR) pays 8.18%.

The post How much is needed in superannuation to target $80,000 a year in passive income? appeared first on The Motley Fool Australia.

If you're searching for ASX blue chips to potentially "set you up for life", you're likely tossing up between companies with meaty dividends and strong market positions. Fortescue Ltd (ASX: FMG) and Coles Group Ltd (ASX: COL) are two giants, but they could hardly be more different: one's a mining powerhouse riding the iron ore waves, the other a supermarket stalwart feeding Aussie families. Here's how they compare if you're weighing up Fortescue vs Coles shares right now.

The case for Fortescue

Fortescue is a global player in iron ore, operating extensive mines and infrastructure across Western Australia's Pilbara. It's established itself as one of the world's largest iron ore producers, running everything from mines to ports and rail in-house. This scale delivers enviable efficiency and keeps Fortescue near the top of the cost curve.

A couple of fundamentals stand out for Fortescue:

• It offers a fully franked dividend yield of 7.11%, eye-catching even among ASX income stocks.
• Its price-to-earnings (P/E) ratio sits at 11.39, which looks reasonable for a major miner, especially compared to some industrial sectors.
• Market capitalisation is $46.77 billion, putting it among the ASX's largest companies.

Fortescue has a track record of generous, reliable dividends — every payout shown is 100% franked. That could be compelling if you're after income, especially when paired with ongoing global demand for iron ore.

The case for Coles

Coles is one of Australia's best-known food and grocery retailers. With a vast store network and established online offering, Coles is many households' primary destination for groceries and essentials. The company has been through significant change, spinning out from Wesfarmers in 2018, and now stands alone as a defensive mainstay on the ASX.

Coles' key stats include:

• A current dividend yield of 3.26%, also fully franked for those who value tax-effective income streams.
• Its P/E ratio comes in at 29.43 — much higher than Fortescue's. That's not unusual for supermarkets, given their stable earnings and relative insulation from economic swings, but it is a significant gap.
• Market cap is $32.12 billion — smaller than Fortescue but still a blue chip heavyweight.

Coles has delivered consistent, fully franked dividends since rejoining the ASX. The latest annual payout is $0.74 per share, and the company's reputation for steadiness might reassure investors wary of volatile sectors.

Valuation comparison

Here's how Fortescue and Coles line up on some vital numbers:

Note: The P/E ratio and EPS for both companies may be based on different earnings definitions (historical, underlying, or forward), so the numbers won't necessarily line up neatly for direct calculation.

The gap in dividend yield and P/E is stark. Fortescue trades at a much lower multiple and pays more than double Coles' yield. However, Coles' higher P/E likely reflects its lower risk profile and steady cash flows, while Fortescue's earnings are more tightly linked to volatile iron ore prices.

Recent share price momentum

Comparing recent share price performance up to 16 October 2026:

• Fortescue closed at $15.19, up 1.13% for the day. However, its year-to-date return is down sharply at -26.1%.
• Coles Group closed at $23.90, down 1.52% that day, but boasts a year-to-date return of +15.1%.

Which is the better buy?

Both Fortescue and Coles are classic ASX blue chips, but each comes with a distinct risk-reward trade-off. On the numbers, Fortescue wows with its fat, fully franked dividend and lower P/E ratio. If I were hunting for passive income and the chance of cyclical upside, I'd have to give Fortescue the nod. However, that juicy dividend comes hand-in-hand with much more volatile earnings, as the past year's negative 26% return reminds us. Coles, by contrast, is steady as she goes, with lower yield but consistent price gains and defensiveness — albeit at a steeper price-to-earnings multiple.

For building wealth over the long haul, my pick would be Fortescue. The sizeable, reliable income and current valuation look too tempting to ignore if you're prepared for the iron ore rollercoaster. For those prioritising lower risk and steady defensiveness, I wouldn't blame anyone leaning Coles — but for "set you up for life" potential, Fortescue edges it for me.

The post Fortescue vs Coles shares: Which ASX blue chip wins this month? appeared first on The Motley Fool Australia.

Think about it, food is one of the most fundamental things that we need to live. Coles is one of the biggest food retailers in the country. Only Woolworths Group Ltd (ASX: WOW) has a larger market share in Australia.

Coles has a powerful business model which is hard to challenge with its advanced distribution centres, customer fulfilment centres, e-commerce offering and the convenience of a national supermarket network.

The company has delivered regular revenue, profit and dividend growth since it split from Wesfarmers Ltd (ASX: WES) several years ago, as it benefited from population growth, inflation and business expansion.

While its profit is not shooting higher like a tech stock, it has proven it can deliver regular financial progress, including rising dividends.

Coles is a contender for regular passive income of $250 per month or more.

How Coles stock can deliver $250 per month of passive income

The business doesn't pay dividends every month, it pays every six months. So I think it's better to treat the goal as an annual target. $250 per month translates into $3,000 per year of passive income.

In FY26, Coles' board of directors hiked the annual dividend per share by 13% to 78 cents per share following a 13.7% rise in the underlying net profit to $1.26 billion and a 2.8% rise in revenue to $45.6 billion.

But the 2026 financial year dividend has already happened, so I think it's more useful to look at what the next annual dividend could be.

The projection on Commsec suggests the company could hike its annual dividend by 7% year-over-year to 83.5 cents per share in FY27.

At the time of writing, that works out to be a forward dividend yield of 3.5% excluding franking credits and 5% including franking credits. I think that's a solid starting point for investors looking to buy Coles shares today.                  

To generate an average of $250 per month, or $3,000 per year of dividend cash, it would require 3,593 Coles shares excluding franking credits.

If we include the franking credits as part of the income goal, it would require 2,516 Coles shares for the dividend cash.

If I were focused on resilient dividend income, I'd be happy to make that investment, given that its dividend has increased every year over the past decade.

Is this a good time to invest?

According to CMC Invest, there have been 11 broker ratings within the last three months, with six of those analyst ratings being a buy and five being a hold.

The average price target of those 11 ratings is $24.67, implying the Coles stock price could rise by just 3% over the next 12 months, from where it is at the time of writing. It's a solid business for passive income, but expert analysts suggest it's better to look at other ASX shares with stronger return potential.

The post I'd buy 2,516 shares of Coles stock to aim for $250 a month of passive income appeared first on The Motley Fool Australia.

Woolworths shares are up 55.8% on a 12-month basis, while Coles shares have risen just 4.5%.

So, is Coles poised to catch up over the next 12 months?

Broker has run the numbers on the ASX retailers

The Jarden analyst team examined the retailers and came to a conclusion as to which one of the major supermarket operators represents the best value from a shareholder perspective.

The broker has just finalised its 15^th fast-moving consumer goods survey, which points to 2% sector growth over the next six months, with Woolworths tipped to be the top performer again.

Jarden said themes over the past 12 months have remained consistent, with suppliers ceding terms to retailers, and shoppers increasingly seeking out promotions.

The broker said:

The results support stronger margins for COL and WOW, which could suggest some upside to FY27/28 forecasts for 10 basis points of expansion. We leave forecasts unchanged, with the view that WOW's investment in below the line, momentum from Ooshies and customer offer reset opportunity leave it well placed to maintain momentum. Overall we believe retailers are extracting better terms and looking to put this into price. The question is whether this will flow through into margins? We would argue consensus assumes WOW can maintain stronger top-line, with neither COL or WOW banking margin.

Woolworths Chief Executive Officer Amanda Barwell said recently while announcing the company's full year results that they had had a "pleasing" start to the year supported by the strong performance of the Disney Ooshies collectibles program.

She added:

Customers are expected to remain value-focused in the year ahead and we are committed to limiting the impact of rising costs through low and dependable prices. Wage growth is also expected to remain elevated by historical standards reflecting the current year's annual wage increase of 4.75% in Australia and progressive changes to pay for our 18 and 19-year-old retail team members. These cost pressures challenge us to be even more efficient, leveraging technology to be more productive in order to reinvest back into the business for our customers.

Woolworths edges out its rival

Jarden has an overweight rating on Woolworths shares. Its price target is $42, which sits slightly above the current price of $41.74.

It has a neutral rating Coles shares. Its price target is $22.80, which sits below the current share price of $24.22.

Among other retailers, Jarden has overweight ratings on Wesfarmers Ltd (ASX: WES) and Metcash Ltd (ASX: MTS), and a buy rating on Sigma Healthcare Ltd (ASX: SIG).

The post Which ASX retailer is a better buy, Coles or Woolworths? appeared first on The Motley Fool Australia.

If you're looking at National Australia Bank Ltd (ASX: NAB) shares versus Coles Group Ltd (ASX: COL) shares for your SMSF, you're not alone. Both are household-name blue chips on the ASX, known for reliable dividends, defensive business models, and roles as core holdings in many Australian portfolios. But which deserves a spot in your next SMSF purchase? Let's break down the fundamentals, dividend outlook, recent momentum, and relative value to help you decide.

The case for National Australia Bank

National Australia Bank, or NAB, is one of the 'big four' banks dominating Australian and New Zealand banking. Its mainstays are retail and business banking, plus some operations overseas. NAB's size and scale, with a strong local focus, give it a distinct position as a pillar of the Australian financial system.

Notable fundamentals jumping out include:

• Market cap: $120.18 billion, one of the biggest companies on the ASX
• P/E ratio: 19.63, on the lower side for a blue-chip, partly reflecting the lower-growth, higher-stability banking sector
• Dividend yield: 4.33%, fully franked at 100%, meaning those dividends can be particularly attractive for SMSFs seeking income with franking credits

NAB's earnings per share comes in at $2.00, with a dividend per share of $1.70, showing it's distributing a healthy portion of its profits. Year-to-date return is -5.22%, meaning the share price has drifted lower this year, but the dividend cushion gives some comfort. According to its most recent public description, NAB has built a dominant presence in local banking, serving millions of Australians and New Zealanders.

The case for Coles

Coles is Australia's second-largest supermarket operator, with a nationwide footprint spanning Coles Supermarkets, Coles Liquor, and an online offering. Famous for its weekly specials and focus on essential products, Coles is a true consumer staple — the sort of retailer that hums along no matter what the economy is doing.

A few highlights from the numbers:

• Market cap: $31.76 billion (significantly smaller than NAB, but still a titan in listed retail)
• P/E ratio: 29.19, higher than NAB's, reflecting different growth expectations for supermarket retail versus banking
• Dividend yield: 3.29%, also fully franked, making Coles appealing to income-seeking SMSFs

Coles delivers earnings per share of $0.812 and a dividend per share of $0.74 — again, a decent portion of profits returned to shareholders. Year-to-date, Coles shares are up 14.18%, outpacing much of the market. According to its latest company profile, Coles operates across groceries, liquor, and household goods, maintaining a huge retail presence and brand recognition.

Valuation comparison

Here's how NAB and Coles stack up on the key valuation and income stats:

NAB currently offers a materially higher dividend yield than Coles and does so with full franking. The P/E ratio for NAB is noticeably lower — but keep in mind: banks and retailers tend to trade at different benchmarks, so comparing their P/E ratios should be done in context. Coles' higher P/E may price in its perceived stability and growth outlook in groceries, while NAB's lower multiple can reflect sector trends or short-term headwinds.

Recent share price momentum

Comparing recent share price performance up to 14 October 2026:

• National Australia Bank: Closed at $38.55, down 1.78% for the day, and -5.2% year-to-date. NAB's shares have seen some bouts of volatility lately, with a short-term downward drift this year.
• Coles Group: Closed at $23.63, down 0.30% for the day, but is up 14.2% year-to-date. Coles shares have been far more resilient in 2026, delivering strong positive momentum versus the banking giant.

Which is the better buy?

If I could only add one of these blue chips to my SMSF right now, my pick would be Coles. Here's why: Coles may be on a higher P/E multiple, but its share price has delivered stronger momentum all year. The retail staple is churning out reliable profits and still providing a solid, fully franked dividend — albeit at a slightly lower yield than NAB. The steady consumer staples business has shown real resilience, especially through periods of economic uncertainty.

Meanwhile, NAB's dividend yield edges out Coles and may appeal to income-focused SMSFs, particularly with those juicy franking credits. But the negative share price performance year-to-date — and sensitivity to interest rate cycles and regulatory shifts — gives me pause. Until NAB can demonstrate steadier share growth or less sector risk, I'd lean toward the proven strength and momentum of Coles as a solid core holding for a long-term SMSF strategy.

The post NAB vs Coles: Which is the better ASX blue-chip buy for SMSF investors? appeared first on The Motley Fool Australia.

3 things to look for in a retirement stock

Firstly, it needs to demonstrate some signs of possessing what legendary investor Warren Buffett would call a wide economic moat. This concept refers to an intrinsic competitive advantage that a company can possess, which it can use to fend off its competitors and keep its customers coming back. That could be a price advantage, a powerful and trusted brand, or offering a good or service that customers find difficult to avoid using.

Secondly, it needs to have a strong and resilient earnings base. The world is an ever-changing and unpredictable place. As an investor, we need to be as confident as we possibly can that a company we invest our hard-earned dollars into will be able to make its crust in all kinds of economic weather. After all, if a retirement is to last for two, three, or even four decades, it must be funded by companies that can navigate whatever the world can throw in their way.

Thirdly, a company must be able to pay a reliable and meaningful dividend, preferably with full franking credits attached. When the rubber hits the road on our retirement, retirement stocks need to be able to pay us an income. We can never know for sure what kind of dividend a company will pay in the future. But it's my belief that what it has paid in the past is one of the best indicators of what to expect going forward.

So, now that we have our three criteria unpacked, let's talk about five retirement stocks that I think check all three boxes.

Coles Group Ltd (ASX: COL)

First up, we have the grocery giant Coles. Almost all readers would be familiar with this company thanks to its dominant network of eponymous supermarkets across the country. Coles also owns the Liquorland chain of bottle shops.

Coles clearly checks all three of our selection criteria. Starting off, it arguably possesses two moats: a well-known and trusted brand, as well as a clear price advantage when it comes to food and household essentials. Most people would assume that their local Coles store is one of the cheapest places to do the weekly grocery shop, and that the products that Coles sells can't be purchased at a meaningfully lower price elsewhere.

It also has one of the most resilient earnings bases on the ASX. We all need to stock our households with food and essentials on a regular basis. That is irrespective of whether the economy is booming or busting, or whether inflation is high or low. As such, it is pretty clear that Coles will have customers walking through the door no matter the economic weather outside.

Coles also has an exceptional dividend track record. It has paid a reliable dividend every six months since it first hit the ASX in its own right back in late 2018. What's more, Coles has managed to increase its annual dividend total every single year since then too. Given this company's payouts also tend to come with full franking credits attached, I think this could be a great retirement stock.

Transurban Group (ASX: TCL)

Next, let's talk Transurban. This is a company that any motorist in Sydney or Melbourne, and perhaps in Brisbane too, would be intimately familiar with. It owns the vast majority of this nation's tolled arterial roads. This in itself is enough to tick our first box. A toll road network is, by definition, a form of moat, given that customers find it difficult to avoid using. This moat is widened by the fact that Transurban often enjoys exclusive, decades-long contracts which allow it to increase its tolls by at least the rate of inflation.

That bleeds into our second retirement stock criteria too. This exclusive right to roll some of the country's most vital road corridors gives Transurban a highly defensive earnings base. Sure, it may see some reduced traffic if there is a severe recession. But given we will always need to get to work, and move goods around our cities, Transurban is a solid choice for a retirement stock, in my view.

This plays out in the company's dividend history. Transurban has a staircase-like pattern of delivering dividend increases over the past two decades, with the only major hiccups coming in COVID-ravaged 2020 and 2021.

Telstra Group Ltd (ASX: TLS)

Our third retirement stock to discuss is Telstra. This telco is another household name, thanks to its long history as Australia's major telecommunications provider. Not only does Telstra continue to benefit from this powerful brand association, it also enjoys another form of moat. This company's mobile network is almost universally regarded as the best in Australia, covering many rural and regional areas that its competitors don't.

This means that many customers have no choice but to use Telstra for their mobile connectivity.

Telstra's nature as a telco provider also grants it a defensive earnings base. Fixed-line and mobile internet connectivity are vital, essential services in today's modern world. If times do get tougher, consumers will arguably pull back on spending on many other things before they will cut back on their internet and phone use. That makes Telstra a fantastic stock for investors looking for a stable retirement investment.

Let's talk cash now, though. Telstra is one of the ASX's most famous dividend payers. It has always paid out a strong dividend, which usually comes with at least some franking credits attached. Telstra has been growing its annual payouts every year for many years now as well.

Commonwealth Bank of Australia (ASX: CBA)

Our penultimate retirement stock today is yet another company most Australians would be familiar with. Commonwealth Bank of Australia is, without question, our strongest and best-run bank. Like Telstra, it has a history as a government-owned company, which gives CBA a lot of legacy brand goodwill.

That forms part of CBA's moat, which is supplemented by its status as our largest bank, lending CBA strength and scale.

However, CommBank is probably our least resilient stock on this list. Banks are notoriously vulnerable to economic shocks, given the crucial role they play in providing credit in the economy. CBA has cut its dividend in the past when the economy has been under pressure. Saying that, this bank's payouts have always bounced back quickly and have gone on to hit new heights. Over the cycle, CommBank should provide a healthy stream of fully-franked dividend income, and thus, makes for a valuable retirement stock.

Wesfarmers Ltd (ASX: WES)

Our fifth and final retirement stock is not exactly a household name. However, the plethora of successful Australian companies that it runs most certainly are. Wesfarmers is the sprawling industrial and retailing conglomerate behind Bunnings Warehouse, OfficeWorks, Target, and Kmart. The company also owns a range of other businesses, which span from fertiliser and chemical manufacturing to healthcare and mining.

These high-quality individual businesses stitch together to form a formidable moat that surrounds Wesfarmers' earnings base. The company has so many fingers in so many pies that it tends to survive just fine when economic conditions are tough, and thrive when optimism returns.

Wesfarmers has a long history of looking after its shareholders. The company has delivered above-market returns for decades, coming from both capital growth and a rising dividend.

Wesfarmers has always paid a reliable dividend, which usually comes with full franking credits attached. 2026 was the sixth year in a row that investors have enjoyed an annual dividend pay hike. Given this ASX share's long-term focus and diverse earnings base, I think it can be called the perfect retirement stock.

The post I look for 3 things in a retirement stock. These 5 shares have them all appeared first on The Motley Fool Australia.

Some companies will struggle to keep up with changing technology and consumer habits, while others could grow into much larger businesses.

For me, the challenge is identifying ASX shares that have what it takes to remain successful over such a long period.

Here are three ASX shares I think could still be thriving in 2040.

Coles Group Ltd (ASX: COL)

Coles is my first pick because I think it has the foundations of a business that can remain successful for decades.

Australians will always need groceries, and Coles has spent years building the stores, distribution networks, and supplier relationships needed to serve millions of customers.

I think that gives it a strong starting point. But what I like most is how the business could evolve between now and 2040.

Coles has been investing heavily in automated distribution centres and more efficient fulfilment operations. These investments should help reduce costs, improve productivity, and support its growing online business.

I also expect technology to play a bigger role in how Coles manages inventory, predicts demand, and serves customers.

If management continues making the right investments, I think the company could become considerably more efficient over time.

Competition will remain strong, and consumers will always be sensitive to grocery prices. Nevertheless, I like Coles' position in an essential industry and believe it could be a much stronger business by 2040.

REA Group Ltd (ASX: REA)

REA Group is another ASX share I would be comfortable backing over the next 14 years.

Its realestate.com.au platform has become a central part of how Australians search for property. I think that position gives REA a significant competitive advantage.

Homebuyers and renters visit the platform because it has an enormous selection of property listings. Meanwhile, real estate agents want their properties advertised where they can reach the largest audience. That creates a powerful relationship between the platform, its users, and advertisers.

I also think there is considerable scope for REA to keep developing its offering. Property search is only one part of the process of buying or selling a home. REA can continue expanding into related services, including property data, financing, and tools that help consumers make decisions.

Its international operations offer another potential source of growth.

Housing market conditions will influence results from year to year, but I expect digital property services to become even more important by 2040.

And I think REA is exceptionally well positioned to benefit.

TechnologyOne Ltd (ASX: TNE)

My final pick is TechnologyOne, an Australian software company that I think has an excellent opportunity to keep expanding internationally.

TechnologyOne provides enterprise software to organisations including universities, local councils, and government departments.

These customers rely on its systems to manage important functions such as finances, payroll, and administration. Once this technology becomes embedded in an organisation's operations, replacing it can be expensive and disruptive.

I think that creates a strong foundation for long-term customer relationships.

TechnologyOne has also successfully transitioned customers to its software-as-a-service platform, providing a more predictable revenue base and opportunities to keep improving its products.

Looking towards 2040, I particularly like its potential to grow beyond Australia. The United Kingdom offers a significant opportunity as public sector organisations modernise their technology.

Artificial intelligence (AI) could also help TechnologyOne deliver more capable software and improve productivity for customers.

There will be competition and technological changes to navigate, but I think TechnologyOne has the foundations to become a much larger global software business.

Foolish takeaway

I think the best long-term investments are businesses that can keep finding ways to grow as the world changes around them.

That is what I would be looking for when choosing ASX shares to hold until 2040.

All three of these companies have strong market positions and opportunities to keep building on their success. I would be happy to buy them today and give them the next 14 years to prove their worth.

The post 3 ASX shares I think could still be thriving in 2040 appeared first on The Motley Fool Australia.

But would I put $10,000 into Coles shares today?

There are three reasons I would consider it.

Defensive demand

The first is the nature of Coles' business. Groceries are an essential part of household spending, and that gives Coles a level of resilience that many other retailers simply do not have.

Even when consumers are struggling financially, they still need to buy food and everyday essentials.

They might switch to cheaper products, look for more specials, or reduce discretionary purchases, but supermarkets should continue seeing relatively consistent demand.

I think that makes Coles a good business to own through different economic conditions.

Its national store network, established supply chains, and growing online business also give it considerable scale.

Of course, competition remains intense, particularly from Woolworths Group Ltd (ASX: WOW) and Aldi. But Coles has continued investing in its customer offering, and I think it is well positioned to defend its place in the market.

Some protection against inflation

My second reason is Coles' ability to manage inflation.

Coles has the ability to adjust its prices when the costs of purchasing and distributing groceries increase, giving it a degree of protection against inflation.

In addition, Coles' investment in automation could become increasingly important.

Its automated distribution centres and improved fulfilment capabilities should help make operations more efficient, reducing some of the cost pressures associated with running a large supermarket network.

If Coles can keep improving productivity while remaining competitive on price, I think that will put it in a stronger position to protect its profit margins.

A positive earnings outlook

The third reason I would consider investing $10,000 in Coles shares is the growth expected over the next few years.

Coles generated earnings per share (EPS) of 81.5 cents in FY26.

Consensus forecasts point to EPS increasing to 98.2 cents in FY27, $1.05 in FY28, and $1.15 in FY29. That would represent earnings growth of approximately 41% over three years.

I think that is a strong outlook for a business operating in such a mature industry.

The dividend is also expected to benefit. After paying a fully-franked 78 cents per share in FY26, analysts expect Coles to increase its annual payout to 83.5 cents in FY27, 88.8 cents in FY28, and 97.4 cents in FY29.

With Coles shares trading around $23.70 on Wednesday, the FY27 forecast represents a dividend yield of approximately 3.5%, before franking credits.

I think that provides a good income component alongside the prospect of further capital gains.

Foolish takeaway

I would be happy to invest $10,000 in Coles shares at current levels.

I like the resilience of its supermarket operations, the opportunity to improve efficiency, and the earnings growth analysts are expecting.

For me, Coles looks like a business that could deliver solid returns over the coming years while remaining a dependable long-term holding.

The post 3 reasons I would invest $10,000 in Coles shares appeared first on The Motley Fool Australia.

In fact, this supermarket operator has one of the better track records of providing dividend income to its investors. Since it spun off from Wesfarmers Ltd (ASX: WES) in late 2018, the company has delivered an annual dividend increase every year.

Saying that, it has not all been smooth sailing for Coles and its investors over the past 12 months. Since this time last year, the grocery giant has traded as high as $24.59 per share and as low as $20.10 per share. At the time of writing, Coles is sitting at $23.31, essentially flat for the day.

With that in mind, let's dive a little deeper into Coles shares and discuss what kind of dividend yield one can expect from this company right now.

So, over the past 12 months, Coles has paid out two dividends to investors, as is its habit. The first of those came in March, with Coles funding an interim dividend worth 41 cents per share. The second was September's final dividend, which was worth 37 cents per share. Both payments came with full franking credits attached.

Coles shares: What is the current dividend yield?

This annual total of 78 cents per share for 2026 represents a healthy 13% rise over the 69 cents per share in dividend income that Coles investors enjoyed over 2025.

At the current Coles share price of $23.30, the 79 cents per share in dividends that Coles has doled out this year gives the company a trailing dividend yield of 3.35%.

However, as any prudent dividend investor knows, a trailing dividend yield only tells us what a company has paid out in the past, not what it may provide going forward. Of course, there's no way to know what dividend any company will pay until it announces it.

Saying that, my Fool colleague Tristan recently covered analysts' views on Coles' 2027 dividend potential. He reported that CommSec is pencilling in a consensus forecast of 83.5 cents per share in dividends for 2027. If accurate, that would represent a 7.05% rise over 2026's payouts. It would also give Coles shares a forward yield of 3.58% at current prices. Let's see if that turns out to be the case.

The post Buying Coles shares? Here's the dividend yield you'll get today appeared first on The Motley Fool Australia.

I'm going to outline three stocks that offer good yields and have a track record of underlying growth.

One business is a real estate investment trust (REIT), one is a leading supermarket business, and one is a quality exchange-traded fund (ETF) that provides a solid distribution yield.

I'd happily split $10,000 among the ASX dividend shares below.

Centuria Industrial REIT (ASX: CIP)

This business describes itself as Australia's largest ASX-listed domestic pure-play industrial REIT. It has 83 assets worth around $4 billion across metropolitan locations nationwide.

Industrial properties have several demand drivers, including e-commerce adoption, data centres, the onshoring of supply chains, and refrigerated space requirements (for food and medicine). This is helping increase the value of industrial land.

In FY26, it grew net operating income (NOI) by 5.2%, and it expects to grow its funds from operations (FFO) by up to 5.5% in FY27.

The ASX dividend share grew its annual distribution per unit by 3% in FY26 and expects to increase it by another 3% to 17.3 cents per unit, yielding 6.2%.

Coles Group Ltd (ASX: COL)

Coles is one of the leading supermarket businesses in Australia, with hundreds of supermarkets around the country. It also has Coles Liquor and Liquorland stores within its liquor division.

The business has succeeded at providing customers with what they want over the last several years through the products it sells, the convenience of its store network, an improving online shopping offering, and other factors.

Coles has benefited from Australia's growing population, and it has also invested significantly in huge distribution centres and customer fulfilment centres (CFCs). This has helped efficiencies, stock flow, and more.

The ASX dividend share has grown its payout every year for the last several years, and I expect that can continue as its store network expands and e-commerce sales grow.

Its FY26 payout translates into a grossed-up dividend yield of 4.75%, including franking credits.  

WCM Quality Global Growth Fund (ASX: WCMQ)

The final investment I want to highlight is this ETF.

WCM is a fund manager based in California, so it operates in quite a different environment to the analysts in Wall Street (New York).

The fund manager wants to invest in businesses with an expanding economic moat, measured with a rising return on invested capital (ROIC). WCM also wants to find businesses with a corporate culture that supports an expansion of the economic moat.

WCM believes that corporate culture is the biggest influence on a company's ability to grow its economic moat, so it has analysts specifically focused on corporate culture.

The investment strategy seems to be working. Over the past three years, the ASX dividend share's portfolio has delivered a net return of 22% and 14.9% per year since inception (in August 2018). It has outperformed the global share market over the past three years and since inception.

In terms of passive income, the ASX dividend stock aims to pay a minimum annualised cash distribution yield of 5%.

The post Where to invest $10,000 in ASX dividend shares today appeared first on The Motley Fool Australia.

Thinking about putting a decent sum of money to work at age 50? You might be weighing up blue-chip mainstays like Commonwealth Bank of Australia (ASX: CBA) and Coles Group Ltd (ASX: COL). Both are household names, offer steady dividends, and can anchor a portfolio for long-term wealth – but which really stacks up as the better buy now?

The case for Commonwealth Bank of Australia

Commonwealth Bank of Australia is the country's largest bank by market value, with a history dating back over a century. It's truly a financial powerhouse, serving millions of Aussies and Kiwi customers across banking, funds management, insurance, and broking. CBA's brand is instantly recognisable and its digital banking platform is widely regarded as an industry leader.

Looking at the fundamentals:

• P/E Ratio: 23.38 – a not-uncommon range for the big banks in recent years.
• Dividend yield: 3.31%, fully franked, with a long record of consistent, rising payouts (recent years showing annual increases).
• Market Cap: $251.64 billion – it absolutely dominates the ASX banking sector by size.
• CBA's earnings per share is 6.517, supporting its substantial dividends.
• Importantly for many retirees or near-retirees, it franks all its dividends at 100%.

The case for Coles

Coles is a giant of the Australian supermarket scene, serving everyday groceries to millions of households each week. The company includes Coles Supermarkets, Coles Liquor, and significant online channels, making it a true consumer staple. Once part of the old Coles Myer empire, it found new independence after spinning off from Wesfarmers in 2018.

Some standout numbers:

• P/E Ratio: 28.18 – that's above CBA's, but supermarkets can warrant higher multiples due to their stable, recurring demand.
• Dividend yield: 3.41% (fully franked), a touch higher than CBA's, and the dividend per share has shown steady growth since relisting.
• Market Cap: $30.75 billion – much smaller than CBA, but still a top-20 ASX company and a true blue-chip by any measure.
• Earnings per share: 0.812, in line with its sector and size.

Valuation comparison

Here's how the two stack up on key metrics:

Both companies pay fully franked dividends, nice for after-tax income in retirement. Coles edges out CBA for current yield (3.41% vs 3.31%) but trades at a noticeably higher P/E ratio. Just note, as banking and supermarket stocks belong to very different sectors, their typical P/E ranges don't always line up apples-for-apples – supermarkets are often seen as more consistent defensive earners.

Recent share price momentum

Comparing recent share price momentum up to 7 October 2026:

• CBA: Closed at $150.37, down 1.32% on the day. Year to date, the return sits at -2.0%, showing modest underperformance in 2026 so far.
• Coles: Closed at $22.88, flat on the day. Year to date, the return is 10.4% – Coles has delivered a solid positive run in 2026 to date.

So if you're after recent price momentum, Coles has the edge.

Which is the better buy?

If I was making a large investment at 50 and wanted a reliable, lower-volatility cornerstone holding, I'd personally lean toward Commonwealth Bank of Australia. Its size gives it economic moat, its payout history oozes consistency (with strong franking), and its banking model has longer-term pricing power. While its dividend yield is slightly lower than Coles', the payout per share is much higher and has grown considerably over decades.

Coles is no slouch – I really like the company for its dependable earnings, and its share price has outperformed CBA over the past year. But at a noticeably higher P/E ratio and with much slower historical dividend growth, I see CBA as a more attractive blend of yield, scale, and proven resilience, especially if income and peace of mind are top priorities in the run-up to retirement.

That said, if steady capital growth and lower bank sector exposure appeal more, Coles is by no means a bad alternative. But for a large, set-and-forget holding at age 50, my pick would be Commonwealth Bank.

The post CBA vs Coles shares: Which is the better buy at age 50? appeared first on The Motley Fool Australia.

If I'm working full-time and want to invest, putting money into shares in my own name could mean paying at least 30% tax on investment returns. Investing through superannuation could mean paying a tax rate of half that.

One of the main perceived negatives of superannuation is that the money is locked away for so long. It's true that the money contributed to superannuation may not be accessible for decades. But that's the point – we're saving for retirement.

With mandatory contributions (and possibly topped up by additional amounts), investors can build towards a very pleasing net worth.

When it comes to building annual passive income, tax can play an important part because the income we can spend/invest is what we earn after tax. So, the tax rate affecting our investments is important.

Reaching $100,000 in annual passive income can be assisted by using superannuation, due to lower taxes during the accumulation phase and in retirement. Investing in our own name as an individual can come with higher taxes throughout life compared to the superannuation tax rate.

Let's look at what is needed to make $100,000 of dividends within superannuation, while ignoring tax from now on because everyone has a different tax position.

Dividend yields are important

Any share investment that pays a dividend has a dividend yield.

That dividend yield is decided by how much of its annual earnings it pays out – the dividend payout ratio – and the valuation of the business.

A business can be valued in many ways, such as its price-earnings (P/E) ratio, the price-to-book ratio, and so on. The more expensive an asset is, the lower the dividend yield becomes.

Investors seeking dividend income will probably hunt for a solid dividend yield, but I think yields can be excessive if the dividend payout ratio gets too high, so I wouldn't fill my portfolio with the highest yields I can find.

How large an investment balance needs to be to generate $100,000 of annual passive income depends on the dividend yield.

For example, if a portfolio had a dividend yield of 4%, it would need to be $2.5 million in size.

If the portfolio had a 5% dividend yield, it would need to be a $2 million portfolio.

A portfolio with a 6% dividend yield would require a $1.67 million portfolio.

Each portfolio yield comes with a different target, so it depends on what sorts of ASX shares investors buy.

So, let's run through some businesses with their dividend yields.

Examples of top ASX shares with their dividend yields

I think investors should focus on the forecast upcoming payments where possible, rather than the past dividends. Forecasts are either from CMC Invest or the business itself. So, I'll largely be looking at forecast grossed-up dividend yields, including franking credits if that's relevant.

First, I'll mention a couple of blue chips for superannuation dividend investing. In FY27, Coles Group Ltd (ASX: COL) is forecast to pay a grossed-up dividend yield of 5.2%, and Telstra Group Ltd (ASX: TLS) is projected to pay a grossed-up dividend yield of 6.5%.

Real estate investment trust (REIT) yields are looking particularly appealing following elevated interest rates. For example, Centuria Industrial REIT (ASX: CIP) is projected to pay a distribution yield of 6.2%, and Charter Hall Long WALE REIT (ASX: CLW) is forecast to pay a distribution yield of 7.8%.

Finally, I'm a big fan of compelling investment businesses with good investment strategies. Three of my favourites include Washington H. Soul Pattinson and Co Ltd (ASX: SOL), with a current grossed-up dividend yield of 3.4%, L1 Long Short Fund Ltd (ASX: LSF), with a current grossed-up dividend yield of 4.5%, and MFF Capital Investments Ltd (ASX: MFF), with a current grossed-up dividend yield of 6.7%.

The above ASX shares, and others, could be great contenders to produce an annual passive income of $100,000.

The post How much is needed in superannuation to target a $100,000 annual passive income? appeared first on The Motley Fool Australia.

Everyday investors looking for reliable, fully franked dividends often land on two household names: Wesfarmers Ltd (ASX: WES) and Coles Group Ltd (ASX: COL) Both are ASX giants with strong brands, defensive business models and long histories of shareholder payouts. But for retirees focused on dependable income and capital stability, which one comes out on top? Here's my break down of Wesfarmers vs Coles Group shares.

The case for Wesfarmers

Wesfarmers is a true blue-chip conglomerate, operating across retail, hardware, office supplies, health and chemicals. With famous brands like Bunnings, Kmart, Officeworks and Priceline under its belt, plus a chemicals and fertilisers division, its earnings are spread across sectors that tend to do well in most economic environments.

Personally, I like Wesfarmers for its size, diversity and strategic flexibility. Its $86.08 billion market cap makes it one of Australia's largest listed companies, which can help cushion the business during downturns.

Key fundamentals for Wesfarmers:

• Market cap: $86.08 billion
• Dividend yield: 2.94% (fully franked)
• P/E ratio: 29.78
• Recent dividend per share: $2.22, with a strong history of fully franked payments
• Year-to-date return: -4.2%

Wesfarmers has a solid record of paying dividends. It has delivered decades of fully franked payouts, often topping them up with occasional specials. For retirees, that 100% franking can make a big difference come tax time.

The case for Coles

Coles is one of Australia's top supermarket and liquor retailers, with Coles Supermarkets and its bottle shop chains a staple in almost every suburb. While it used to be part of Wesfarmers, Coles was spun out in 2018 and is now very much its own beast.

For conservative, income-focused investors—particularly retirees—Coles' appeal is simple: Food retailing is a defensive sector, and people have to eat whatever the economy is doing.

Notable fundamentals for Coles Group:

• Market cap: $30.75 billion
• Dividend yield: 3.39% (fully franked)
• P/E ratio: 28.33
• Recent dividend per share: $0.74, also fully franked with a stable payout pattern
• Year-to-date return: 10.9%

Coles has consistently paid out fully franked dividends since relisting, and the current yield is a touch higher than Wesfarmers. This direct income edge may appeal to retirees wanting to maximise after-tax income.

Valuation comparison

With both companies in the ASX's top ranks and fully franked dividends on offer, it's worth drilling into their key valuation measures to spot the differences most relevant to retirees:

Wesfarmers trades at a slightly higher P/E than Coles, but both are in the same ballpark. The standout difference for retirees is Coles' higher yield—3.39% versus Wesfarmers' 2.94%—on current prices.

Recent share price momentum

Comparing recent share price momentum up to 6 October:

• As of 6 October 2026, Wesfarmers closed at $75.86, up 0.52% on the day, but its year-to-date return sits at -4.2%.
• As of the same date, Coles closed at $22.88, down 0.52% on the day, but boasts a year-to-date return of +10.9%.

That's a steady outperformance from Coles in 2026 so far, while Wesfarmers has dropped back a touch.

Which is the better buy?

Weighing up Wesfarmers vs Coles, if I were a retiree focused on maximising regular, tax-effective income, I'd lean toward Coles right now. The dividend yield is modestly higher (3.39% vs 2.94%), both are fully franked, and Coles' supermarket focus means cashflows tend to be steady and recession-resistant. Add to that its positive year-to-date share price momentum (despite a few wobbles in the broader market), and Coles looks to be delivering both income and capital stability.

Wesfarmers is more diversified—and in the long run, that can mean more growth potential—but for a retiree's portfolio, I think the steadiness, relative simplicity, and strong current yield of Coles get it over the line for me today.

The post Wesfarmers vs Coles: Which dividend share is better for retirees? appeared first on The Motley Fool Australia.

I would want businesses with strong earnings, the capacity to continue paying dividends, and the potential for income to grow over time.

These are three ASX passive income shares I particularly like.

Coles Group Ltd (ASX: COL)

Coles would be one of my first choices because grocery spending tends to be relatively resilient.

Households may change what they buy when budgets become tighter, but supermarkets remain an essential part of everyday life. That gives Coles an earnings base that I think suits investors who depend on their portfolio for income.

There is also growth behind the story. Coles generated earnings per share (EPS) of 81.3 cents in FY26. Consensus forecasts point to 98.2 cents in FY27, $1.05 in FY28, and $1.15 in FY29.

I expect that profit growth will create room for dividends to rise as well.

For retirees, I think that combination of defensive demand and potentially rising income is compelling.

Telstra Group Ltd (ASX: TLS)

Telstra could be another quality share for an ASX passive income portfolio.

Mobile and internet services have become essential for households and businesses, giving Australia's largest telecommunications company a substantial base of recurring demand.

I also think Telstra's investment case has improved because management is aiming to grow the business rather than simply protect the dividend.

Under its Connected Future 30 strategy, Telstra is targeting mid-single-digit growth in cash earnings through to FY30 and has expressed an ambition to deliver a sustainable and growing dividend.

That is the direction I would want to see as a retiree.

I would still expect periods of share price volatility, but the underlying telecommunications demand gives me confidence in Telstra as a long-term income holding.

Commonwealth Bank of Australia (ASX: CBA)

CBA would round out my three picks.

The bank is not necessarily the highest-yielding option on the ASX, but I think the strength of the franchise counts for a lot when passive income reliability is important.

CBA has leading positions across deposits and home lending, a huge customer base, and one of Australia's strongest digital banking platforms.

That has helped it consistently generate the profits needed to fund substantial fully-franked dividends.

CBA paid $5.05 per share in FY26. Consensus forecasts point to $5.15 in FY27 and $5.30 in FY28, alongside modest earnings growth over the same period.

The shares can trade at a premium valuation, and that is something I would consider before buying. But for retirees looking beyond the highest immediate yield, I think CBA's financial strength and dividend record make it one of the ASX banks worth considering.

Foolish takeaway

For retirees looking for passive income, I think Coles, Telstra, and CBA are three strong options to consider.

Each has an established business, dependable cash flow, and the potential to keep growing dividends over time.

The post My favourite ASX passive income shares for retirees appeared first on The Motley Fool Australia.

Coles is best known for its supermarket business, the second-largest operator in Australia. It also has a liquor division which includes Coles Liquor and Liquorland, a 50% stake in Flybuys, and it offers financial products like insurance, credit cards and personal loans.

Given that food is a life essential, I think Coles is one of the leading ASX defensive shares in Australia. Australia's steady population growth is a key driver of demand for Coles' products.

I think Coles is one of the leading ASX blue-chip shares because of its track record of growing its payout and delivering a solid dividend yield.

Let's take a look what could happen with a $6,000 investment in Coles shares.

Strength of the dividend

Coles spun off from Wesfarmers Ltd (ASX: WES) more than seven years ago. Since then, the supermarket business has increased its annual dividend every year. None of Australia's largest businesses can say that they have done the same – COVID-19 impacts, lower commodity prices, or inflation led to dividend cuts this decade for many of the large ASX shares.

Coles has kept things consistent, and shareholders' bank accounts have benefited.

The ASX blue-chip share generated underlying net profit after tax (NPAT) growth of 13.7% to $1.25 billion in FY26, helping fund a 13% increase in the annual dividend per share to 78 cents per share.

At the time of writing, the FY26 payout translates into a grossed-up dividend yield of 4.8%, including franking credits. But, that's the past. Any investors buying Coles shares will receive the 2027 financial year dividend next, so we should focus on that.

Excitingly, the payout is forecast to increase again in FY27. According to CommSec's projection, the ASX blue-chip share is expected to pay an annual dividend of 83.5 cents per share. That would be year-over-year growth of 7%, much stronger than inflation.

That projected payout for FY27 would also represent a forward grossed-up dividend yield of 5.2%, including franking credits.

$6,000 investment in Coles shares

If someone were to buy $6,000 of Coles shares today, they'd be able to buy 260 Coles shares.

That could mean dividend cash of $217.10 from FY27 and grossed-up dividend income of $310.14 including franking credits.

If I were looking for dividend income from an ASX blue-chip share, Coles would be a strong contender. But it's not the only business I'd look at today for returns.

The post If I buy $6,000 of Coles shares, how much dividend income will I receive? appeared first on The Motley Fool Australia.

Investors looking for reliable income from their ASX portfolios might have their eyes on Insurance Australia Group Ltd (ASX: IAG) and Coles Group Ltd (ASX: COL). Both are heavyweights in their respective sectors and regular dividend payers, but offer very different business models, dividend profiles, and outlooks. Here's my take on how these two stack up for income-focused investors.

The case for Insurance Australia Group

Insurance Australia Group is the leading general insurer in Australia and New Zealand, underwriting a wide range of policies—including motor vehicle and home insurance—for individuals and businesses. With top brands under its umbrella and a sizeable presence across both countries, IAG is a go-to name for everyday insurance needs.

The key fundamentals from the latest snapshot are:

• Dividend yield of 4.02%, ahead of Coles
• A P/E ratio of 18.59, which is well below Coles' figure
• Market cap of $18.57 billion, making it a substantial player but smaller than Coles
• Earnings per share shown as -0.901, which doesn't line up with the positive P/E (more on that in a moment)

When it comes to dividends, IAG's payout has fluctuated over recent years. IAG's businesses have long underwritten substantial premium volumes, but recent dividends have come with lower franking levels—only 25% for the most recent payment. Franking levels have shifted over time, often below full 100% franking in recent years, which could impact after-tax returns for those relying on franking credits.

The case for Coles

Coles is one of Australia's leading supermarket and retail operators, serving millions of Aussies with groceries, liquor, and everyday essentials through its national store network and growing digital footprint. Coles is seen as a defensive, staples-oriented business, benefiting from the ongoing need for food and essentials regardless of the economic cycle.

Highlight fundamentals for Coles include:

• Dividend yield of 3.35%, slightly lower than IAG's but very consistent
• A notably higher P/E ratio of 28.71
• Market cap of $31.40 billion—substantially larger than IAG, reflecting its consumer-facing scale and lower perceived risk
• Strong reported earnings per share of 0.812
• Full 100% franking on its dividends, boosting the loyalty of income investors who value franking credits

Coles has a solid record of regular, fully franked dividends, with recent payments showing both frequency and predictability. According to its most recent public description, Coles offers a comprehensive store network and has continued to innovate with its online shopping and loyalty programs, helping underpin its resilient earnings and reliable payouts.

Valuation comparison

There are a few clear divergences between IAG and Coles in terms of valuation and dividend attractiveness. Here's how they compare on core metrics:

Note: IAG's reported P/E ratio appears inconsistent with its negative EPS figure. This may be because the P/E is based on normalised or forecast earnings, rather than the statutory EPS shown above.

The main takeaway here for income investors is that IAG offers a higher dividend yield, but with lower franking and some inconsistency in earnings figures. Coles provides lower yield, but its dividends are fully franked and supported by positive reported earnings.

Recent share price performance

Comparing recent share price activity as of 30 September 2026:

• Insurance Australia Group: Closed at $7.94 as of 30 September 2026, slightly down -0.25% on the day. Its year-to-date (YTD) return is 3.8%.
• Coles Group: Closed at $23.36 as of 30 September 2026, up 0.21% on the day. Its YTD return stands at 12.4%.

Coles has outperformed IAG in recent months, delivering a much higher YTD return for shareholders.

Which is the better buy?

For income investors—with one eye on yield and the other on dividend predictability—my pick would be Coles Group over Insurance Australia Group.

Coles delivers fully franked dividends, which can boost after-tax returns for many Aussies, especially those investing via super funds or directly. While IAG's yield is a touch higher on headline numbers, its payouts carry much lower franking, reducing their appeal for income seekers chasing franked income. There's also some concern on the consistency front: IAG's negative EPS versus a stated positive P/E ratio makes me pause, as it might flag earnings volatility or reliance on one-off adjustments.

Coles' more expensive P/E might make value hunters wary, but as an income investor, I think the reliability, fully franked dividends, and solid recent performance tip the scales. You may give up a fraction of yield, but in exchange you get consistency, reliability, and maximum franking credits. That's why, if I had to pick just one for an income-focused portfolio, my vote would go to Coles Group.

The post Insurance Australia Group vs Coles: Which ASX dividend comes out on top? appeared first on The Motley Fool Australia.