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

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

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

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

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

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

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

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

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

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

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

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

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

Which ASX dividend shares I'd look at

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

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

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

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

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

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Some businesses have already provided guidance for the upcoming financial results that show a good dividend yield based on the appealing expectations.

Below are two of the higher-yielding ideas I like a lot.

Future Generation Global Ltd (ASX: FGG)

This idea is a listed investment company (LIC) which is an excellent source of passive income.

Future Generation Global aims to provide a reliable stream of income, which has regularly increased each year since FY19. For FY26, the business has provided guidance that it will increase its annual dividend per share by 5% to 8.4 cents per share.

That forecast translates into a forward grossed-up dividend yield of 7.3%, including franking credits, at the time of writing. I'm assuming no dividend growth from the ASX passive income share in FY27 for this article, but I do think there's likely to be a dividend hike in 2027.

It pays for those dividends from the investment returns of its portfolio. It's invested in a portfolio of 15 funds from fund managers focused on international shares. All of those fund managers work for free so that Future Generation Global can donate 1% of its net assets to charities focused on youth mental health.

There are more than 3,700 underlying shares across different markets and sectors, so it can offer Australians significant diversification.

Dexus Industria REIT (ASX: DXI)

This ASX passive income share is a leading real estate investment trust (REIT), in my view, due to the exposure that the portfolio provides.

It's invested in a portfolio of industrial real estate across Australian cities. It has a diversified tenant base across the sectors of wholesale trade, construction, manufacturing, retail trade, logistics and more.  

The business says that it has '3%+' embedded rental growth, with approximately 87% linked to fixed rental increases, with "strong inflation protection". This can help protect and grow rental earnings amid higher interest rates.

With a 99% occupancy rate and a five-year weighted average lease expiry (WALE), the business has strong rental characteristics that can help fund good distributions.

It expects to pay a distribution per unit of 16.6 cents, which translates into a distribution yield of close to 6.9%.

$700 per month from ASX passive income shares

Neither of these ASX passive income shares pays dividends monthly, so we're going to look at this as an annual goal, which can then be divided into monthly income. Receiving $700 per month is equivalent to $8,400 annually.

Between them, these two names have an average dividend yield of 7.1%. Receiving $8,400 per year at a dividend yield of 7.1% would require a total investment of approximately $118,300.

By investing in these two ASX passive income shares, along with other names for diversification, I think investors can build a solid level of income.

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Preferably, I'd want to own investments that are likely to regularly increase the payouts to help offset inflation and hopefully grow faster than inflation.

Let's look at three businesses that have increasingly excellent track records of dividend growth.

APA Group (ASX: APA)

APA Group is one of the largest energy infrastructure businesses on the ASX. It's invested in various aspects of Australia's energy system including a huge network of gas pipelines, gas storage and processing, gas-powered energy generation, solar farms, wind farms and batteries.

It pays for its impressive distribution from the cash flow that its portfolio of energy assets produces. That cash flow is steadily rising amid additions of new energy assets over the years via acquisitions and project builds, as well as inflation-linked revenue increases.

The ASX dividend share has increased its payout every year for more than 20 years in a row, which is an excellent record of consistency.

It expects to increase its annual distribution to 59 cents per security in FY27, adding to its record. This translates into a forward distribution yield of 5.5%.  

Future Generation Global Ltd (ASX: FGG)

Future Generation Global is a listed investment company (LIC) that gives investors exposure to a portfolio of global stocks and also compelling philanthropic efforts.

It's invested in a portfolio of funds from more than a dozen fund managers focused on global shares, who all work for free. With those investments, there are more than 3,700 underlying shares in the portfolio, which is great diversification.

The shares come from across the world, including North America, the UK, Europe, Asia, other developed markets and emerging markets.

The ASX dividend share's investment returns help pay for a growing dividend, which has increased every year since FY19, so we're already at several years of consecutive payout growth.

It expects to pay an annual dividend of 8.4 cents per share in FY26, which translates into a grossed-up dividend yield of 7.4%, including franking credits.

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

Soul Patts is another leading investment business on the ASX. It's an investment house that has been listed for more than 120 years.

The beauty of its strategy is that it's invested in a variety of largely uncorrelated assets that can all generate cash flow in most economic conditions and help the company fund its market-leading dividend.

The ASX dividend share is the leader on the ASX in terms of the number of consecutive years it has increased its dividend. The regular dividend has increased every year since 1998. It's not far off 30 years of consecutive dividend growth!

With a regularly expanding portfolio of new investments – along with organic growth of existing investments – I think it's likely to continue hiking its dividend in the years ahead.

It currently has a grossed-up dividend yield of 3.4%, including franking credits, though I expect the yield for the next 12 months will include a dividend hike.

The post 3 ASX dividend shares raising dividends like clockwork appeared first on The Motley Fool Australia.

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

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

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

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

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

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

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

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

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

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

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

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

Where I'd invest for a high dividend yield

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

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

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

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

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

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

Use compounding to build wealth

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

Albert Einstein once supposedly said about compounding:

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

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

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

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

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

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

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

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

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

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

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

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

What did Future Generation Global report?

• Revenue from ordinary activities fell 64.3% to $15.29 million
• Net profit after tax dropped 68.6% to $8.59 million
• Fully franked interim dividend of 4.2 cents per share declared (up from 4.0c last year)
• Net tangible assets (NTA) before tax of $1.62 per share at 30 June 2026 (down from $1.74 at Dec 2025)
• -Total shareholder return (TSR) of 16.5% for the half year, including franking credits

What else do investors need to know?

Future Generation Global's investment portfolio delivered a 2.4% return over the half, lagging the MSCI AC World Index (AUD), which returned 7.4%. The company points to a highly concentrated global share market, with much of the index growth driven by a handful of large technology and AI companies.

FGG's diversified portfolio focuses on small to mid-cap global equities and continues its social impact commitment, with $6.9 million set for donation in 2026 to youth mental health non-profits. Since inception, the company has donated $57.4 million to these causes, enabled by pro bono investment management.

What's next for Future Generation Global?

Looking ahead, FGG's board has raised the interim dividend and maintains a strong profits reserve, with around 7.9 years of dividend cover based on current reserves. The investment team believes the diversified, active fund manager approach will help navigate ongoing global market volatility.

The company will also deliver its eleventh annual donation later this year, reinforcing its commitment to social impact while seeking to grow shareholder returns.

Future Generation Global share price snapshot

Over the past 12 months, Future Generation Global shares have risen 6%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 2% over the same period.

View Original Announcement

The post Future Generation Global earnings: Profit and revenue drop, dividend rises appeared first on The Motley Fool Australia.

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

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

Based on that, investing in superannuation is a more appealing prospect due to that lower tax rate.

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

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

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

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

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

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

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

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

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

The sorts of ASX dividend shares I'd look at

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

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

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

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

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

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

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

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

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

Generating $40,000 of annual passive income

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

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

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

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

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

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

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

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

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

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

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

ASX dividend shares I'd consider for superannuation

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

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

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

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

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

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

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

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

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

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

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

Retire on $100,000 of income at 60

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

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

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

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

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

Passive dividend income ideas

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

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

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

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

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

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

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

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

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

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

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

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

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

How to make $2,000 of monthly passive income

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

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

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

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

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

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

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

What sorts of ASX shares I'd buy

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The types of ASX dividend shares I'd buy

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

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

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

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

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

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

If I were to try to narrow it down, I'd choose ones that have a good starting dividend yield, reliable payouts and a high chance of long-term dividend growth.

With that in mind, I'd suggest the following two stocks fit the bill if I wanted to unlock significant passive income.

Centuria Industrial REIT (ASX: CIP)

The first business I want to highlight is this real estate investment trust (REIT). It is one of the best ways to get exposure to industrial property on the ASX.

Centuria Industrial REIT's properties are predominantly situated in well-located areas of Australian cities where demand is high due to logistics requirements, e-commerce adoption, data centres, and refrigerated space. This helps the business achieve a high occupancy rate and helps grow rental earnings.

The ASX passive income stock's rental income growth potential is particularly strong, with the REIT suggesting its portfolio is 20% 'under-rented'. This suggests a big jump in rental profit is likely to occur as those contracts come up for renewal over the next few years.

The business pays a distribution to investors every quarter, providing a pleasing level of consistency and supporting cash flow.

In FY26, the business grew its distribution by around 3% to 16.8 cents per security, which currently translates into a distribution yield of 5.6%. I expect a similar payout in FY27.

It looks like a great time to buy, especially given that the ASX passive income stock is currently trading at a 24% discount to its net tangible assets (NTA) of $3.95 as of 31 December 2025.

Future Generation Global Ltd (ASX: FGG)

Future Generation Global is the other idea I want to talk about as an idea for dividends.

It's a listed investment company (LIC) with a difference: it's invested in the funds of more than a dozen fund managers who all work pro bono (for free) to enable Future Generation Global to donate 1% of its net assets each year to youth mental health charities.

Not having management fees or performance fees can significantly improve the net returns of an LIC. Some of the fund managers involved include Antipodes, Vinva, Plato, Langdon and WCM.

Overall, there are more than 3,700 underlying securities in the portfolio with these funds, across different sectors, so there's plenty of diversification.

It has delivered solid investment performance – for example, in the past three years the portfolio has returned an average of 14% per year.

This pleasing investment performance has allowed the business to increase its dividend each year for the last seven years, starting in FY18. It expects to pay an annual dividend per share of 8.4 cents in FY26. That's a grossed-up dividend yield of around 7%, including franking credits.

$400 per month of passive income

Between my two above ideas, they have an average dividend yield of 6.3%, including franking credits.

To generate an average of $400 per month, we're talking about an annual goal of $4,800. With a dividend yield of 6.3%, an investor would need to invest around $76,200 across these businesses.

I'd be very happy to make that investment because of their track records of paying pleasing dividends, though they're not the only ASX stocks I'd buy for passive income.

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Once the tax changes kick in, superannuation may have a lower tax rate than what many individuals, trusts and companies experience.

Another benefit of superannuation is how effective it is for long-term investing. That's because we're typically not going to access that money for a very long time.

I love investing for passive income by owning shares. My money is working in the share market for me year-round and unlocking cash payments to my bank account.

Superannuation is important for this endeavour because of how we lose less of the income return to tax.

If a full-time working Australian receives passive income in their own name, they're likely to lose a third (or more) of the passive income to tax, significantly reducing the appeal of the passive income return.

In my view, superannuation can be the most appealing place to invest because of the better tax rate in the accumulation phase of life, compared to an individual's tax rate if they work full-time.

Impressively, an Australian's superannuation tax rate could be 0% in retirement, which is as good as it gets. 

Each Australian's tax rate is different, so I'll focus on targeting a specific income goal from here on, ignoring tax rates.  

How much is needed in superannuation for $80,000 of annual passive income?

Receiving $80,000 in dividends each year sounds good to me, although I'm certainly a long way from that goal. I hope I can reach that target in the future.

I think it's a wise idea for investors to think about what sorts of investments they want to own and the attached dividend yield that comes with that.

There are many different options for investors to consider, but I view ASX shares as the clear leader because of the appealing dividend yields and the fact that company payouts can come with franking credits.

The required portfolio size to reach $80,000 annually depends on the portfolio's dividend yield.

For example, if the portfolio had a 5% dividend yield, it would need to be $1.6 million in size. A 4% dividend yield would require a $2 million portfolio, and a 7% dividend yield would require a $1.15 million portfolio.

Every dividend yield requires a different portfolio size to reach the desired target. As a result, the ASX shares we choose play an essential part in the portfolio's dividend yield. 

Which ASX dividend shares I'd buy

Pleasingly, there are a number of ASX shares that can provide good dividend yields to retiree investors (and anyone else).

There are compelling companies, quality real estate investment trusts (REITs) and compelling listed investment companies (LICs).

Some of the businesses I like include Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), Lovisa Holdings Ltd (ASX: LOV), Propel Funeral Partners Ltd (ASX: PFP) and Universal Store Holdings Ltd (ASX: UNI).

Some of the fund-based investments that pay attractive dividends include MFF Capital Investments Ltd (ASX: MFF), WCM Quality Global Growth Fund (ASX: WCMQ), Future Generation Global Ltd (ASX: FGG) and Future Generation Australia Ltd (ASX: FGX).

In terms of property investments, I think some of the undervalued names with useful organic rental income growth are Rural Funds Group (ASX: RFF), Dexus Industria REIT (ASX: DXI), Centuria Industrial REIT (ASX: CIP) and Charter Hall Long WALE REIT (ASX: CLW).

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Share prices face headwinds when interest rates go up because rates act like gravity – when rates go up it pulls down on the valuation. But, I like that as a buyer of shares because it means shares are cheaper and dividend yields are larger.

I'd rather invest when yields are higher, rather than when they are lower.

Future Generation Global Ltd (ASX: FGG)

I believe that the listed investment company (LIC) structure is a very effective way to invest for passive income, diversification and stability.

LICs invest in a portfolio of shares or other assets, depending on their investment strategy.

Future Generation Global is not like a normal LIC though. Typically, it's one funds management business that looks after the portfolio. Future Generation Global is invested in a portfolio of funds from 15 different managers, Antipodes, Vinva, Plato, WCM, Life Cycle, Langdon, Paradice and a few others.

This strategy gives investors a huge amount of diversification – there are more than 3,700 underlying shares across different sectors inside the ASX dividend share's portfolio. There are not many investments on the ASX that give as much diversification as that.

Future Generation Global's portfolio managers have chosen to be underweight America and overweight Europe. I like this aspect of Future Generation Global because it provides a type of exposure that differs from some of the ASX's most popular exchange-traded funds (ETFs).

Its solid dividend is funded by the pleasing investment returns. Future Generation Global has increased its annual dividend per share each year since FY19, giving investors several years of dividend growth already.

For 2026, it plans to hike its annual dividend per share by 5% to 8.4 cents. That translates into a grossed-up dividend yield of 7.1%, including franking credits, at the time of writing.

Dexus Industria REIT (ASX: DXI)

The other ASX dividend share I want to highlight is this real estate investment trust (REIT) which is invested in high-quality industrial warehouses across the country. It aims to provide sustainable income and capital growth prospects for shareholders over the long-term.

In its FY26 half-year result, the business outlined why it has such a promising outlook:

While the industrial sector has continued to normalise, underlying supply-demand fundamentals are solid. Vacancy remains low across core industrial markets, with high land and construction costs putting pressure on pipelines. In the medium to long term, the sector will continue to be supported by a growing population and limited available supply.

The fund manager Jason Weate also highlighted how it's maximising its rental income from the portfolio:

Our high performing portfolio continues to generate secure income and our active management approach has helped increase occupancy above 99% during the half. With the benefit of our strong balance sheet, we remain focused on higher-returning opportunities, with momentum across our value accretive development pipeline and increased exposure to the Sydney industrial market through recent acquisitions.

The business paid an annual distribution per unit of 16.6 cents, which translates into a distribution yield of 6.8%. I expect its distributions can grow in the coming years thanks to solid rental income – HY26 like-for-like income growth was 7.4%, with rental escalations, strong re-leasing spreads and higher average occupancy.

These aren't the only two ASX dividend shares I'd buy today for passive income, though.

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One of the best things about superannuation is the fact that it has a lower tax rate than the individual tax rate and company tax rate. It may have a lower tax rate than trusts too.

Another advantage of superannuation investing is its structure, which promotes long-term investing. For people in the accumulation phase, they may make investments for decades before they can access that money.

When it comes to investing in passive income, the money we can use is the after tax amount. That's why it's more fruitful to invest for passive income in superannuation because less of the income is being lost to tax than most of the tax brackets for individuals. I'd prefer not to lose a third of my passive income to tax each year.

Pleasingly, not only is the tax rate lower in the superannuation accumulation phase, it could be as low as 0% in retirement, depending on the superannuation balance.

The taxation circumstances of each household is different, so we'll just look at the income goals from now on.

How much is needed in superannuation for $7,000 of monthly passive income?

Receiving $7,000 in dividends each month equates to an annual goal of $84,000 per year. I'd love to receive that level of dividend income.

The question of how much it would take to generate that much income comes down to the yield of the investment. Of course, there's more to investing than just the yield. Reliability and growth are also important factors.

Many ASX shares offer the great bonus of franking credits, boosting the dividend yield on offer.

I'll point out that a portfolio with an average dividend yield of 3% would need to be double the size of a portfolio with a dividend yield of 6% to generate the same level of passive income.

For example, if a portfolio were $1.4 million in size, it would generate $84,000 of annual passive income with a 6% dividend yield. If the portfolio had a 3% dividend yield, it would need to be $2.8 million in size to achieve the same level of annual payments.

Every dividend yield would require a different portfolio size to achieve $84,000 annually. For example, a 4% dividend yield would require a $2.1 million portfolio and a 5% dividend yield would require a $1.68 million portfolio.

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

As stated earlier, if I'm investing for passive income in superannuation, I'd also want to consider reliability and growth. I rate all the investments I'm about to highlight as above-average for payout reliability.

If investors want to unlock mid-to-higher dividend yields, I'd look at quality companies with franking credits, good value and reliable real estate investment trusts (REITs), and listed investment companies (LICs).

Some of the businesses with a dividend yield of between 5% to 7% that I'd look at include Telstra Group Ltd (ASX: TLS), WCM Global Growth Ltd (ASX: WQG), Centuria Industrial REIT (ASX: CIP), Dexus Industria REIT (ASX: DXI), Rural Funds Group (ASX: RFF), Charter Hall Long WALE REIT (ASX: CLW), MFF Capital Investments Ltd (ASX: MFF) and L1 Long Short Fund Ltd (ASX: LSF).

Then there's ASX dividend shares with a larger dividend yield. Some of my favourites with bigger yields include WAM Microcap Ltd (ASX: WMI), Future Generation Global Ltd (ASX: FGG), Future Generation Australia Ltd (ASX: FGX), WAM Leaders Ltd (ASX: WLE), Universal Store Holdings Ltd (ASX: UNI) and Hearts and Minds Investments Ltd (ASX: HM1).

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Pleasingly, superannuation has a lower tax rate than many individuals, trusts and companies. The way that superannuation works, and the nature of how we access the money, means it's very easy to invest for the long term inside the super system.

In my view, being paid passive income is one of the best elements of owning shares. Receiving money into our bank account every year for no effort sounds good to me.

How does superannuation play into passive income? Investors lose less of the passive income payments to tax.

Superannuation looks comparatively much more appealing because if a full-time working Aussie receives passive income in their own name, they could lose a third (or more) of that passive income to tax, significantly reducing the effectiveness of the passive income return.

In my opinion, superannuation is therefore a more appealing place to invest because of the lower tax rate in the accumulation phase of life, compared to an individual's tax rate if they're a full-time earner.

In retirement, a person's superannuation tax rate could be 0%. You can't get any better than that.

Of course, each Australia's tax position is different, so I'll just look at targeting a particular income goal from here and ignore the tax rates.

How much is needed in superannuation for $100,000 of annual passive income?

Receiving $100,000 in dividends each year sounds excellent to me. I'm definitely a long way from that target, but I'd love to receive that much in dividends each year.

Australians need to consider what types of investments they want to own and what size dividend yield comes with those investments.

I think ASX shares are the best choice for passive income. The attached franking credits are an excellent bonus.

How much is needed to earn $100,000 annually depends on the dividend yield of the portfolio.

For example, a portfolio with a 6% dividend yield would require $1.67 million. Meanwhile, a 4% dividend yield would require a $2.5 million portfolio.

As you can see, different dividend yields require different-sized portfolios to reach the target. Therefore, the numbers are heavily influenced by what ASX shares superannuation investors choose.

The types of ASX dividend shares I'd buy

There are various options on the ASX that can provide good yields to investors. Aussies could choose quality companies, real estate investment trusts (REITs) or listed investment companies (LICs).

Some of my favourite ideas for dividend growth and a solid starting yield include Wesfarmers Ltd (ASX: WES), Telstra Group Ltd (ASX: TLS), Universal Store Holdings Ltd (ASX: UNI), Lovisa Holdings Ltd (ASX: LOV), Medibank Private Ltd (ASX: MPL), Propel Funeral Partners Ltd (ASX: PFP) and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

On the commercial property side of things, I like names such as Rural Funds Group (ASX: RFF), Dexus Industria REIT (ASX: DXI), Centuria Industrial REIT (ASX: CIP) and Charter Hall Long WALE REIT (ASX: CLW).

Finally, the LICs that I really like include MFF Capital Investments Ltd (ASX: MFF), L1 Long Short Fund Ltd (ASX: LSF), Future Generation Global Ltd (ASX: FGG) and Future Generation Australia Ltd (ASX: FGX).

These aren't the only attractive ASX dividend shares for superannuation investors, but I think they're an excellent starting point.

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When I think about which businesses I'd want to own for dividends, I'd want to choose names that can provide both a good dividend yield and a rising payout.

If an investor wants passive income, then they'll probably be looking for a good yield upfront. But, growth of the payout is also important to help offset inflation and hopefully provide steadily rising dividends to make our bank accounts increasingly well-off.

Future Generation Global is a listed investment company (LIC) that offers numerous positives. Let's look at the positives and why I'd buy it with $1,000 (or more).

Philanthropic efforts

The business is not like many other ASX dividend stocks. It's a LIC which provides investors exposure to a portfolio of funds of different fund managers.

All of those fund managers work for free so that Future Generation Global can donate 1% of its net assets each year to charities focused on youth mental health.

Some of the charities that are supported by Future Generation Global include BackTrack, Bighart, Life4Life, Mind Blank, Prevention United, Project Rockit, Reachout, Smiling Mind and Youth Opportunities.

I think it's a really great set-up for both investors and the charity contributions.

Diversification

Future Generation Global can provide investors with excellent diversification because it's invested in the funds of 15 different fund managers.

There are more than 3,700 different underlying shares in the ASX dividend stock's portfolio, so Future Generation Global actually offers enormous diversification across North America, the UK, Europe, Asia and so on.

Its money is spread across a number of fund managers including Antipodes, Yarra Capital Management, Munro, WCM Investment Management, GCQ, Ellerston Capital, Vinva, Langdon, Plato and Paradice.

Dividend yield

The ASX dividend stock recently announced its FY26 interim dividend for shareholders – 4.2 cents per share and provided guidance that the final dividend per share for FY26 will be another 4.2 cents per share.

That brings the potential FY26 annual payout to 8.4 cents per share. At the current Future Generation Global share price, that translates into a possible grossed-up dividend yield of 7%, including franking credits, at the time of writing.

That would generate around $70 of grossed-up dividend income with a $1,000 investment for FY26 by buying 584 shares.

That's more appealing to me than a term deposit, particularly when it's combined with its rising dividend.

Rising payouts

Future Generation Global has increased its annual payout each year since FY19, so investors have already had several years of dividend growth. It also has a profit reserve of 66.4 cents per share, which suggests it can fund close to eight years of dividends based on the FY26 dividend level.

Pleasingly, the guidance the business has provided for FY26 translates into year-over-year growth of 5%. That's a solid rate of growth, in my opinion.

But, it's not the only ASX share I'd buy with $1,000. There are a few other compelling opportunities.

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Not every business can be reliable, partly because of the industry they operate in. Miners, for example, are heavily exposed to movements in resources prices – this can lead to large rises and large declines of resource prices (and dividend payouts).

There are plenty of great dividend options beyond the large ASX blue-chip shares. I'm going to outline two I'd happily invest $15,000 into.

Rural Funds Group (ASX: RFF)

I think Rural Funds is one of the leading real estate investment trusts (REITs) for passive income. The business owns a portfolio of farms across the country, including almonds, macadamias, cattle, vineyards, and cropping.

Having this investment gives Aussies diversification because Rural Funds offers something different to most other ASX dividend shares, and its own portfolio is diversified across various food segments.

Rural Funds recently took the responsible decision to sell some of its farms to improve its debt position, and this is also expected to improve its adjusted funds from operations (AFFO) – that's the net rental profit.

The business' FY26 payout of 11.73 cents per unit translates into a distribution yield of 5.3%, which I'd describe as a solid starting yield for retirement. It hasn't ever reduced its cash payout since it started paying more than a decade ago.

The payout can increase in the future thanks to its built-in rental indexation. Most of the farms have rental increases that are fixed, or linked to inflation, plus market reviews.

Future Generation Global (ASX: FGG)

Another ASX stock I want to highlight is the listed investment company (LIC) Future Generation Global, an investment vehicle that gives exposure to the global share market.

All of the fund managers involved in the LIC work for free so that Future Generation Global can donate 1% of its net assets each year to youth mental charities. The LIC is invested in more than a dozen different funds from different fund managers, giving shareholders exposure to more than 3,000 underlying shares – that's great diversification!

The business is able to provide investors with a solid dividend thanks to all of the investment returns it has already made over previous years and continues to make.

Future Generation Global recently lifted its FY26 interim dividend by 5% year over year, taking its annualised payout to 8.4 cents per share. This translates into a forward grossed-up dividend yield of around 7%, including franking credits, at the time of writing. I think that's a wonderful yield for people in retirement. The ASX stock has increased its payout each year since FY19, so it has given investors several years of dividend hikes already, and I expect more in the coming years.

The post How to invest $15,000 for passive income in retirement appeared first on The Motley Fool Australia.

The main reason it's so appealing is that superannuation has a lower tax rate compared to many individuals, trusts and companies. I believe the nature of the superannuation structure, and how Aussies access that money in retirement, enable investors to invest for the long-term.

Receiving passive income is one of the rewarding elements of owning ASX shares with how little effort we need to put in for the ongoing dividend payments.

In my opinion, the passive income we receive after tax is a more important figure than the before-tax figure, because that's what investors get to keep.

Superannuation can have a tax rate as low as 0% in retirement. That's great. In the accumulation phase, the superannuation 15% tax rate on income is lower than what many individuals or companies may experience.

Every household may have a different tax situation, so I'll just focus on a specific dividend income target and won't refer to tax rates from now on.

How much is needed in superannuation for $100,000 of annual passive income?

Receiving $100,000 in dividends each year would be wonderful, in my opinion. I'd love to receive that much, though I've got a long way to go to get there.

There are a variety of asset classes that investors can consider for income such as term deposits, bonds, property and shares.

I think that ASX shares are the best choice for passive income, partially thanks to the excellent bonus of franking credits.

The portfolio size required to earn $100,000 depends on the size of the dividend yield.

As an example, a portfolio with a 5% dividend yield would require a $2 million portfolio. If a portfolio had a dividend yield of 6%, it would need a $1.67 million portfolio.

Different dividend yields require different-sized portfolios to reach that $100,000 of passive income from superannuation.

The sorts of ASX dividend shares I'd buy

Within the ASX share space, there are a few different types of dividend options that offer good dividend yields, such as real estate investment trusts (REITs), S&P/ASX 300 Index (ASX: XKO) shares and compelling listed investment companies (LICs).

Some of the businesses I'd consider with a lower-to-medium dividend yield include Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES), Australian Foundation Investment Co Ltd (ASX: AFI) and Telstra Group Ltd (ASX: TLS).

Some of the higher-yielding names I'd consider include WCM Global Growth Ltd (ASX: WQG), Future Generation Global Ltd (ASX: FGG), Future Generation Australia Ltd (ASX: FGX), Centuria Industrial REIT (ASX: CIP) and Dexus Industria REIT (ASX: DXI).

There are even more ASX dividend shares that superannuation investors could consider for passive income, but I think the above names are a useful starting list.

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

In my eyes, receiving passive income is one of the best parts of owning shares. It's really rewarding to receive passive income by owning ASX shares. Getting paid money into our bank accounts every year for no ongoing effort sounds good to me.

One of the major benefits of superannuation is that Australians lose less of the passive income return to tax. It's important to keep in mind that it's the after-tax passive income that investors should focus on.

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

These days, superannuation may well be the most appealing place to invest for passive income because of that lower tax rate in the accumulation phase of life, compared to the tax rate of an individual's tax rate as a full-time earner.

In retirement, an Australian's superannuation tax rate could be as low as 0%. An investor can't find a lower tax rate than that.

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

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

Receiving $70,000 in dividends each year sounds really good to me. While I have a long way to go to reach that level of cash flow, it's something i'd love to achieve.

Australian superannuation investors need to think about what sort of investments they want to own and the size of the dividend yield that comes with that.

In my view, ASX shares are the best choice for passive income, partly due to the bonus of the attached franking credits.

Therefore, the required superannuation balance to earn $60,000 annually will depend on the dividend yield of the portfolio.

For example, a portfolio with a 5% dividend would require $1.4 million, a 4% dividend yield would require a $1.75 million portfolio and a 7% dividend would require a $1 million portfolio.

It really depends on which ASX shares investors choose.

The types of ASX dividend shares I'd buy

There are plenty of compelling ideas on the ASX that can deliver good dividend yields.

For example, there are discounted real estate investment trusts (REITs), excellent listed investment companies (LICs) and great operating companies.

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

Investments with a higher dividend yield include names like  MFF Capital Investments Ltd (ASX: MFF), WCM Global Growth Ltd (ASX: WQG), Future Generation Global Ltd (ASX: FGG), Dexus Industria REIT (ASX: DXI), Telstra Group Ltd (ASX: TLS) and Charter Hall Long WALE REIT (ASX: CLW).

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