But what is a comfortable level of income?

How much superannuation do you really need?

While it's relatively subjective, the Association of Superannuation Funds of Australia (ASFA) has run the numbers and arrived at a figure that they consider sufficient for both singles and couples to have a comfortable retirement.

This measure, which assumes you own your own home, includes the ability to pay for top-level private health insurance and doctor visits, fast internet, a reasonable car and associated maintenance, regular leisure activities and the ability to travel occasionally.

To afford this, singles would need to earn $55,923 in superannuation income, while a couple would need to earn $78,556.

Today I'm looking at the amount of superannuation savings needed to generate $6,000 per month, or $12,000 per year, well above the level considered comfortable for a single person.

So let's look at the numbers.

Just to get started with round numbers, if you can generate a 7.2% return from your superannuation savings, you'd need $1 million worth of investments.

While this might sound like a high return, remember that superannuation funds benefit from franking credits – in lay terms, they are paid back the tax already paid by a company on its earnings.

Meanwhile, if you generate just a 5% return on your investments, you'd need $1.44 million in superannuation savings, while if you were able to generate 10% returns, the figure drops to just $720,000.

I'd argue that a 7.5% return, the midpoint of these two, is a realistic return to target, for which you'd need $960,000 in superannuation savings.

Keep in mind that all of these figures are based on dividend returns only, and don't assume any share sales take place.

So, what shares could you buy to deliver such returns?

Recently I've been keeping my eye on the funds managed by Wilson Asset Management, which have been paying decent dividends.

Just this week the WAM Strategic Value Ltd (ASX: WAR) fund announced that it had increased its dividend, and would now be paying a yield of 5.9%, rising to 8.4% once franking credits were included.

WAM Active Ltd (ASX: WAA) also recently increased its dividend and is paying out an identical yield to WAM Strategic Value.

When it comes to operating businesses as opposed to funds, Regal Partners Ltd (ASX: RPL) is a good option, with broker Morgans forecasting the financial services company will pay out 8.1% for this year, followed by 6.9% and 7.8% in the following years.

Among resources stocks Fortescue Ltd (ASX: FMG) is paying a 6.59% yield while Woodside Energy Group Ltd (ASX: WDS) is paying 5.02%, both fully franked.

And among the ETFs, there is the Betashares Australian Dividend Harvester Fund (ASX: HVST), which is paying 7.3% grossed up, or including franking credits.

The post How much is needed in superannuation to target a $6,000 monthly passive income? appeared first on The Motley Fool Australia.

The increase is good news for investors, but it barely makes a dent in the volume of losses shed over the past couple of months.

Since spiking at a year-to-date high of $22.99 in mid-May, Fortescue shares have fallen 22%. The shares are now down 19% year to date and are around 2% lower than they were 12 months ago.

Why are the miner's shares tumbling?

The ASX miner's shares tumbled lower during the first quarter of 2026, as weakness in iron ore prices, broad commodity volatility, and profit-taking weighed heavily on its outlook.

Ongoing conflict in the Middle East has also put downward pressure on shares, driven by concerns about rising costs, oil supply risks, and broader market uncertainty.

The issue is, while Fortescue has a copper footprint, the miner primarily mines and exports iron ore. This means, as we've seen throughout the first half of 2026, the miner's shares have fluctuated in line with the price of iron ore. 

Trading Economics data shows that the price of iron ore spiked to a two-year high in mid-May, around the time Fortescue shares also spiked. Since then, the shares have crashed to around a two-year low.

The price of iron ore is expected to soften through late 2026. It is then forecast to gradually decline through to 2030 as supply increases and Chinese steel demand tapers off.

What do the experts forecast for Fortescue shares?

It's not only investors who have pulled back from Fortescue shares over the past few months; analysts have as well.

According to the data, they're now divided about where the share price can go from here.

Market Index shows brokers are evenly split between buy, sell, and hold ratings. But the average $18.78 target price currently implies a potential 4% upside.

TradingView data is more bearish. Out of 17 analysts, the majority (eight) have a hold rating, but another seven have a sell/strong sell rating. Two analysts rate the shares as a buy.

The average $18.28 target price implies a potential 2% upside at the time of writing. But the range between the highest and lowest average target price is huge. Some tip the shares to jump 28% to $23.01. But others think they could fall 14% to $15.56 over the next 12 months, at the time of writing.

The post Down 22%: Has the market lost interest in Fortescue shares? appeared first on The Motley Fool Australia.

Of the three ASX 200 mining stocks, only BHP managed to finish the month just past in the green.

On 30 June, BHP shares closed trading for $59.40. When the closing bell sounded on 31 July, shares were changing hands for $60.31, up 1.5% for the month.

Rio Tinto shares went the other direction. Rio Tinto shares closed June at $172.51 and finished out July trading for $170.57 each, down 1.1%.

And Fortescue shares trailed the pack in July, closing the month down 3.3% to trade for $18.51 apiece.

Looking at the miners' top two revenue earners, the iron ore price traded in a pretty steady range of around US$98 per tonne in July. Meanwhile, the copper price increased by 3.5% to end the month at US$13,791 per tonne, according to data from Bloomberg.

All three ASX 200 mining stocks also reported quarterly or half-year results in July.

BHP shares slide on FY 2027 copper guidance

BHP released its June quarter (Q4 FY 2026) update on 16 July.

Over the three-month period, the mining giant produced 491,900 tonnes of copper, up 3% quarter on quarter. This brought full-year copper production to 1.95 million tonnes, down 3% year-on-year.  But that production dip was more than offset by a 35% increase in the average realised price the company received for the red metal, which climbed to US$5.74 per pound in FY 2026.

On the iron ore front, BHP produced 264.7 million tonnes of the industrial metal in FY 2026, up 1% from FY 2025.

BHP shares closed down 2.3% on the day, however, partly pressured by FY 2027 copper guidance.

In the financial year ahead, the miner expects to produce 1.65 million to 1.8 million tonnes of copper and 260 million to 272 million tonnes of iron ore.

The lower copper production was said to predominantly relate to the forecast grade decline at BHP's Escondida copper mine.

Fortescue shares slip Iron Bridge impairment

Fortescue shares closed down 1.9% on 31 July following the release of the miner's own June quarter production update.

Like BHP shares, Fortescue enjoyed a broadly strong year, reporting all-time high total iron ore shipments of 201.3 million tonnes for FY 2026, up 1% year on year. And management provided FY 2027 shipment guidance in the range of 197 million tonnes to 207 million tonnes.

But investors were reaching for the sell buttons after the company reported that it expects to recognise a non-cash impairment charge of US$750 million before tax on its Iron Bridge magnetite project.

Fortescue said, "The carrying value assessment for Iron Bridge considers the revised ramp-up schedule and a range of production scenarios, including the nameplate capacity of 22Mt."

Rio Tinto shares jump on earnings lift

Rio Tinto reported its half-year (H1 2026) results on 29 July.

Unlike Fortescue and BHP shares, Rio Tinto shares jumped 3.7% on the day of the release.

Highlights for the half-year included a 15% increase in revenue to US$31.0 billion. Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) jumped by 28% to US$14.8 billion.

With Rio Tinto achieving a 47% year-on-year increase in profit after tax attributable to US$6.7 billion, management declared a fully franked interim dividend of AU$3.072 per share, up 38.4%.

The post How Rio Tinto, Fortescue and BHP shares stacked up in July appeared first on The Motley Fool Australia.

But are the iron ore miner's shares in the buy zone? Let's find out what the broker is saying.

What is the broker saying?

Bell Potter notes that Fortescue's fourth-quarter update revealed production a touch short of expectations and costs that were largely in line with its estimates. It said:

FMG reported total iron ore shipments of 52.7Mt for the June 2026 quarter at C1 cash costs of US$19.37/wmt (vs BPe 53.8Mt at C1 US$19.39/wmt). Costs rose 6% QoQ, primarily reflecting higher diesel prices and higher AUD:USD exchange rate. Shipments were up 8% QoQ and contributed to record full-year shipments of 201.3Mt in FY26. FY26 C1 costs of US$18.74/wmt fell outside the FY26 guidance of US$17.50 – US$18.50/wmt. A stronger AUD is a key negative sensitivity for FMG.

The broker also highlights that Fortescue's costs are expected to increase in FY 2027, while shipments will be largely flat. It adds:

FMG provided FY27 guidance for shipments of 197-207Mt, including 11-14Mt from Iron Bridge (100% basis) at C1 cost for Pilbara Hematite of US$20.50-US$21.75/wmt. (+13% yoy vs FY26 actual). FY27 Metals capital expenditure is guided to US$3.7– US$4.7 billion (inclusive of decarbonisation US$900-US$1,300m) and compares with US$3.6 billion in FY26. Energy project CAPEX and OPEX guided to a combined US$450m. Overall this is higher than our prior forecasts (~US$4.1 billion).

Should you buy Fortescue shares?

Bell Potter has seen enough in the update to upgrade Fortescue shares from a sell rating.

However, not quite enough to recommend them as a buy. It has put a hold rating and trimmed price target of $17.40 (from $18.15) on the company's shares.

This is a touch below where the Fortescue share price currently trades. However, dividend yields of 5.7% and 3% are expected for FY 2026 and FY 2027, repectively.

Commenting on the update, the broker said:

EPS changes in this report are: FY26: -3%; FY27: -9% and FY28: -5%. FMG's core iron ore operations continue to perform very well and benefit from an elevated iron ore price. However, higher costs, broad input cost inflation, a subdued iron ore price outlook and potential impacts to price realisation all put pressure on our earnings and dividend forecasts. 

We lift our rating to Hold from Sell on recent share price depreciation but do not yet see the positive catalysts to re-enter the stock. Our NPVbased valuation is lowered 4%, to $17.40/sh.

The post Why Bell Potter just upgraded Fortescue shares appeared first on The Motley Fool Australia.

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

ASX 200 expected to sink

The Australian share market looks set for a disappointing start to the week despite a positive session on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 85 points or 0.95% lower. In the United States, the Dow Jones rose 0.55%, the S&P 500 climbed 0.7%, and the Nasdaq jumped 1%.

Oil prices rise

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a positive start to the week after oil prices rose on Friday night. According to Bloomberg, the WTI crude oil price was up 1.3% to US$84.67 a barrel and the Brent crude oil price was up 1.2% to US$87.93 a barrel. However, OPEC agreed over the weekend to a September production hike, which could weigh on prices.

Fortescue shares upgraded

Fortescue Ltd (ASX: FMG) shares are no longer a sell according to analysts at Bell Potter. This morning, the broker upgraded the iron ore miner's shares to a hold rating with a price target of $17.40. It said: "We lift our rating to Hold from Sell on recent share price depreciation but do not yet see the positive catalysts to re-enter the stock. Our NPV-based valuation is lowered 4%, to $17.40/sh."

Gold price falls

It could be a subdued start to the week for ASX 200 gold shares Capricorn Metals Ltd (ASX: CMM) and Northern Star Resources Ltd (ASX: NST) after the gold price pulled back on Friday night. According to CNBC, the gold futures price was down 1.3% to US$4,107 an ounce. This couldn't stop the precious metal from having its best month since February.

Buy Catalyst Metals shares

Bell Potter thinks Catalyst Metals Ltd (ASX: CYL) shares are being undervalued by the market. This morning, in response to the gold miner's quarterly update, the broker has retained its buy rating with a trimmed price target of $13.25. It commented: "4QFY26 provided record production, costs below guidance and +A$54m cash. FY27 production, cost guidance and strategy a significant near-term catalyst. We lower our TP to $13.25/sh and retain Buy. EPS changes: FY26 +5%, FY27 -16%, FY28 -9%."

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

Two of the ASX heavyweights are racing ahead of the 0.2% gains posted by the S&P/ASX 200 Index (ASX: XJO) in early afternoon trade today, while one is mired in the red.

Here's what's capturing investor interest.

Fortescue shares tumble on Iron Bridge impairment

Fortescue shares are taking a beating today, down 3.1% at $18.27 apiece.

This follows a mostly positive June quarter production update, released this morning.

On that positive front, the ASX 200 mining giant reported record total iron ore shipments of 201.3Mt for FY 2026, up 1% year on year.

Fortescue's cash balance increased to US$5.1 billion at year end, with net debt falling to US$800 million.

And the miner expects another strong year ahead, providing FY 2027 shipment guidance in the range of 197 million tonnes to 207 million tonnes.

But Fortescue shares look to be under pressure, with the company saying it expects to recognise a non-cash impairment charge of US$750 million before tax, approximately US$525 million after tax, on its Iron Bridge magnetite project.

The miner noted, "The carrying value assessment for Iron Bridge considers the revised ramp up schedule and a range of production scenarios, including the nameplate capacity of 22Mt."

Weebit Nano shares jump on revenue upgrade

Weebit Nano shares are also turning heads today following the release of the company's own June quarter update.

And unlike the slump in Fortescue shares today, shares in the S&P/ASX 300 Index (ASX: XKO) semiconductor memory technology company are up 6.8% at the time of writing, trading for $4.38 each.

Investors are responding positively, with Weebit nano reporting $3.4 million of cash receipts in Q4 FY 2026. The company also increased its full-year FY 2026 revenue guidance up to at least $13.5 million.

Commenting on the results, Weebit Nano CEO Coby Hanoch said:

Weebit Nano has had another productive quarter as we expanded our licensing agreements with key customers, progressed the transfer of our IP to Texas Instruments and onsemi, secured an additional $15 million from existing shareholders, and had three customers successfully tape-out chip designs embedded with our ReRAM, one already demonstrating a functional prototype running software.

Which brings us to…

Capstone Copper shares surge on record earnings

Joining Weebit Nano and Fortescue shares in the headlines today is Capstone Copper.

Shares in the ASX 200 copper stock are up 8.1% at the time of writing, trading for $13.81 each.

This outperformance follows the release of a strong quarterly update this morning.

Among the highlights stoking investor interest, Capstone Copper reported record quarterly revenue of US$739.7 million, up 36% year on year.

Earnings also broke records, with the ASX 200 copper miner reporting adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$354 million, up 64% year on year.

The post Why Capstone Copper, Weebit Nano, and Fortescue shares are turning heads on Friday appeared first on The Motley Fool Australia.

What did Fortescue report?

• Total iron ore shipments reached a record 201.3Mt for FY26, up 1% from FY25.
• Iron Bridge Concentrate shipments grew to 9.0Mt for FY26, a 27% increase on the prior year.
• Hematite C1 unit cost was US$18.74/wmt for FY26, within its guidance range.
• Strong cash flow lifted cash balance to US$5.1 billion and reduced net debt to US$0.8 billion at year-end.
• A non-cash after-tax impairment of approximately US$525 million will be recognised for Iron Bridge in FY26 results (excluded from underlying NPAT).
• FY27 shipment guidance is 197–207Mt, with Iron Bridge contributing 11–14Mt.

What else do investors need to know?

Fortescue maintained reliable performance across its mining, processing, rail, and shipping operations, enabling it to achieve record full-year shipments. The company's Hematite C1 unit cost for the year was within guidance, despite higher diesel prices and cost inflation.

Recently, Fortescue agreed to pay compensation of A$150 million for cultural loss and A$353,909 for economic loss to the Yindjibarndi Ngurra Aboriginal Corporation after a Federal Court decision. In addition, the company disclosed a class action filed against it relating to workplace matters, which remains at an early stage.

Progress on decarbonisation was notable, with construction starting on the 690MW Turner River solar farm and the arrival of turbines for the Nullagine Wind Project. Fortescue is investing in electric mining equipment and green energy capacity to support its Real Zero target and long-term cost competitiveness.

What did Fortescue management say?

Fortescue Metals and Operations CEO, Dino Otranto, said:

Breaking through 200 million tonnes of shipments for the first time is a significant achievement and a credit to every person across the business. Results like this don't happen by accident. They reflect our Values in action and an unwavering focus on safer, more efficient operations. That discipline delivered unit costs within market guidance despite ongoing inflationary pressures.

What's next for Fortescue?

Looking to FY27, Fortescue expects total shipments in the range of 197–207Mt, including a higher contribution from Iron Bridge. Hematite C1 unit cost is forecast to rise to US$20.50–US$21.75/wmt, reflecting updated input costs and currency assumptions.

The company aims to further expand its green grid, invest in renewable energy and electric mining fleets, and continue stakeholder engagement. Options are being considered for a potential increase in port outload capacity to optimise volume and product mix.

Fortescue share price snapshot

Over the past 12 months, the Fortescue share price has broadly tracked the performance of the S&P/ASX 200 index (ASX: XJO) with a gain of around 6%.

View Original Announcement

The post Fortescue posts record FY26 shipments and eyes green future appeared first on The Motley Fool Australia.

As a guide, the Association of Superannuation Funds of Australia (ASFA) regularly publishes a figure for what people need to earn to be comfortable in retirement, with a few assumptions, including that they own their own home.

Should this be the case, a single can expect to have a comfortable lifestyle with an income stream of $55,923 per year ASFA says, while a couple would need $78,566 per year.

That said, how realistic is it to aim for $10,000 per month, or $120,000 per year?

Let's run the numbers

Of course, that depends on how much you can afford to save during your working life, but it is also highly dependent on what dividend yield you can expect from your investments, as well as the contribution from franking credits.

Franking credits can be confusing if you're not well versed in how they work, but they're really quite simple.

A fully franked share is one that includes a credit for the 30% in-company tax already paid.

Retirees on a zero tax rate receive this amount back from the government as a refund.

For example, let's say you were paid a 5% fully-franked dividend. If you were a non-tax paying retiree, you'd get an effective dividend yield rate of 7.14%.

So how much in retirement savings do you need to generate $10,000 per month?

If you could achieve a dividend yield of 10%, the figure would be $1.2 million.

Naturally, if you were achieving a dividend yield of 5%, this would double to $2.4 million.

I'd argue a figure in between – a 7.5% yield – is realistic, meaning you'd need $1.6 million in retirement savings.

So what sort of shares would help you get there?

There are some shares and ETFs around that are specifically dividend-focused.

While the KKR Credit Income Fund (ASX: KKC) has been performing well recently, returning 9.82%, its dividend is unfranked.

The fund targets an average total return of between 6% and 8% through the business cycle.

WAM Active Ltd (ASX: WAA) has also been perfoming well, and recently announced a special dividend on top of its final dividend.

The fund said in a statement to the ASX that this would bring its fully-franked dividend yield to 8.6% and its grossed-up dividend yield to 12.3%.

Another fund in the Wilson Asset Management stable that has been performing well is its WAM Income Maximiser Ltd (ASX: WMX), which pays a monthly annualised yield of 7.1%.

There are also more traditional stocks, such as Fortescue Ltd (ASX: FMG), which pay out well, with the iron ore major having a trailing dividend of 6.5% fully franked, while Woodside Energy Ltd (ASX: WDS) pays out 5.19%.

The post How much do I need in superannuation to receive $10,000 per month in passive income? appeared first on The Motley Fool Australia.

Miners' performance is highly dependent on their respective resource prices. Fortescue is currently dependent on the iron ore price.

The iron ore price has fallen below US$100 per tonne (from above US$110 per tonne in May). This means its profit has also likely taken a sizeable hit.

At this cheaper Fortescue share price – down 18% since mid-May – it'll be interesting to see what analysts think the business's returns could be.

Potential Fortescue share price change

According to CMC Invest, there have been 11 ratings on the business within the last three months. Of those, two have been buy ratings, four have been hold ratings, and five have been sell ratings.

Each analyst rating comes with a price target, which tells investors where they think the Fortescue share price could be trading. The average price target on Fortescue from those 11 analyst ratings is $19.01. That implies a possible rise of 1% from where it is at the time of writing. Therefore, a $10,000 investment could translate into approximately $10,100.

However, a significant portion of the returns from Fortescue shares come from passive income in the form of dividends.

Passive income projection

The estimated payout for FY27 is expected to be lower than the FY26 payment. Currently, Commsec's forecast for the 2026 financial payout is 93.8 cents per share.

That translates into a dividend yield of 5% excluding franking credits and 7.1% including franking credits.

If we include the franking credits as part of the payout, an investor could receive $710 grossed-up dividend income.

Potential returns

Therefore, investing $10,000 today could lead to approximately of $100 capital gains and $710 income, for a total estimated return of $810 – an 8.1% return, if the analysts prove to be correct.

Considering the long-term return of the S&P/ASX 200 Index (ASX: XJO) has been a return of around 9% per year over the last decade or so, I think Fortescue's projected return is unlikely to noticeably outperform the index, unless the iron ore price performance is unexpectedly strong.

Therefore, there could be opportunities on the ASX that could perform better, in my view. I think Fortescue is a great operator, but I'd prefer to invest when there's more negativity about the iron ore sector. Sectors like retail and real estate generally look like a better buy to me right now.

The post By July 2027, Fortescue shares could turn $10,000 into… appeared first on The Motley Fool Australia.

Nothing is certain in the world of investing, but what is certain is that if you just leave it up to fate, you're more likely to have a surprise on the downside.

Time to do the sums on your superannuation

So, how much money do you actually need? As much as possible is the obvious answer; however, most of us have to strike a balance between what we can put away for the future and what we need to fund our current lifestyle.

A good yardstick for how much is needed is the figure published by the Association of Superannuation Funds of Australia (ASFA), which says that, for a comfortable retirement, singles need $55,923 per year and couples need $78,566 per year.

These figures assume the retiree owns their own home and is therefore not paying rent or a mortgage.

Looking at these figures, a $5000 per month superannuation income stream places a single retiree squarely in the comfortable zone, with a little buffer to play with.

To hit the $5000 per month target in terms of investment returns, assuming no drawdown of capital, a retiree would need $857,142 in their super if they could achieve a dividend return of 7% per year, which I'd argue is doable.

If that return were to drop to 5%, the amount needed in super would rise to $1.2 million, while it would drop to $600,000 if a 10% return could be achieved.

So, how realistic is a 7% return?

First, you have to take into account that retirees get the benefit of franking credits, meaning they are reimbursed for the tax paid by companies they own shares in.

For example, Fortescue Ltd (ASX: FMG) is paying a trailing dividend of 6.46%. But when the franking credit is added back in, this rises to 9.23%.

While high dividends cannot be assured over the longer term, it is possible to focus on companies or funds that specifically aim to return dividends rather than grow capital.

One such is WAM Active Ltd (ASX: WAA), which recently announced a special dividend on top of its final dividend.

The fund said in a statement to the ASX that this would bring its fully-franked dividend yield to 8.6% and its grossed-up dividend yield to 12.3%.

There is also the S&P/ASX 200 Covered Call Complex ETF (ASX: AYLD), which uses a more complex strategy to deliver high yields, paying 9.64% over the past 12 months, albeit only franked at 15.3%.

Infrastructure companies, which tend to plan for the long term, can also be consistent dividend payers, with gas pipeline company APA Group (ASX: APA) paying 5.63% and Dalrymple Bay Infrastructure Ltd (ASX: DBI) paying 4.56%.

The post How much do I need in superannuation to receive $5000 per month in passive income? appeared first on The Motley Fool Australia.

You just need to know how to invest it and understand what level of passive income to expect.

The benefit of investing your superannuation for a passive income in retirement is that it comes with the added benefit of low tax rates and long-term compounding.

The only downside is that you can't access it until you reach retirement age.

But how much do you actually need in your super to be able to earn the passive income you want in retirement?

Let's break it down, using a monthly $7,000 passive income as a guide.

How much do I need in my superannuation to get a passive income of $7,000 every month?

There's a simple calculation you can use. First, you'd need to work out what your monthly passive income totals over the year, then divide that annual passive income figure by the dividend yield of your portfolio.

For example, $7,000 x 12 = $84,000. Divide that by a 3% yielding portfolio, and you'll need a $2.8 million portfolio in order to earn $84,000 per year (or $7,000 per month).

Of course, a $2.8 million superannuation balance isn't achievable for many Australians. 

But the good news is that as your dividend yield increases, the superannuation balance required to earn the same passive income decreases.

For example, a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of passive income. 

How much do I need in my superannuation if my portfolio yields 4%?

To earn $84,000 per year off a 4% yielding portfolio, you'd need to have a balance of around $2.1 million.

ASX shares that could fit the bill include Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ), or Transurban Group (ASX: TCL). These all yield 4% or a little more.

How much do I need in my superannuation if my portfolio yields 5%?

To earn the same $84,000 per year off a 5% yielding portfolio, you'd need to have a superannuation balance closer to $1.68 million.

Shares that yield 5% or just over could include Woodside Energy Group Ltd (ASX: WDS), Universal Store Holdings Ltd (ASX: UNI), and AGL Energy Ltd (ASX: AGL).

What about for a 6% yielding portfolio?

A superannuation balance of around $1.4 million can earn the same passive income on a 6% yielding portfolio.

Harvey Norman Holdings Ltd (ASX: HVN), Fortescue Ltd (ASX: FMG), and Dexus Industria REIT (ASX: DXI) are good examples of ASX shares that yield around 6%.

And for a portfolio that yields 7% or 8%, what do I need then?

Higher-yielding shares mean investors can earn the same passive income off a much smaller superannuation balance, but they do come with added risk.

A $1.2 million or $1.05 million portfolio yielding 7% or 8%, respectively, could earn $84,000 in passive income.

Higher-yielding options include ASX shares such as the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX), GQG Partners Inc (ASX: GQG), or Centuria Office REIT (ASX: COF).

The post How much do I need in my superannuation to earn $7k per month in passive income? appeared first on The Motley Fool Australia.

The downside is that the funds are locked away until we hit at least 60 years of age, but for those who start early, the magic of compound interest can build a substantial nest egg.

Superannuation calculations can help achieve your goal

So, how much superannuation do you need? That's obviously a very subjective question, but the Association of Superannuation Funds of Australia (ASFA) has pegged the number at $55,923 per year for singles and $78,566 per year for couples for what they have determined to be a comfortable retirement.

ASFA's numbers also assume the retiree owns their own home.

Today, I'm looking at how much superannuation is needed to support $6000 per month in passive income, which equates to $72,000 per year, well above the comfortable benchmark.

How much money you'll need in your superannuation to generate this amount depends on the income stream you can depend on from your portfolio – assuming you don't sell down any shares to generate income.

If you can generate a 7.2% return, you'd need $1 million worth of investments.

While this might sound like a high return, remember that superannuation funds benefit from franking credits – in lay terms, they are paid back the tax already paid by a company on its earnings.

If you generate just a 5% return on your investments, you'd need $1.44 million in superannuation savings, while if you were able to generate 10% returns, the figure drops to just $720,000.

How much can be generated from superannuation savings?

I would argue that it is possible to put together a diversified portfolio that can consistently generate returns of about 7%.

In terms of stocks to buy, there are some income-focused funds and exchange-traded funds that might be worth a look.

For example, WAM Active Ltd (ASX: WAA) just this week announced it had a stellar year, and declared a special dividend on top of its final dividend, which the fund said in a statement to the ASX would bring its fully-franked dividend yield to 8.6% and its grossed-up dividend yield to 12.3%.

On the ETF front, there are products such as the Betashares Global High Dividend Aristocrats ETF (ASX: INCM), which pays a quarterly dividend and, for the July quarter, paid out 5.74%.

There is also the S&P/ASX 200 Covered Call Complex ETF (ASX: AYLD), which uses a more complex strategy to deliver high yields, paying 9.64% over the past 12 months, albeit only franked at 15.3%.

There are also traditional stocks which pay strong dividends, including Fortescue Ltd (ASX: FMG) at 6.49%, Woodside Energy Group Ltd (ASX: WDS) at 5.63%, and on the lower but dependable end, Telstra Group Ltd (ASX: TLS) at 4.01%.

The post How much do I need in superannuation to receive $6000 per month in passive income? appeared first on The Motley Fool Australia.

Fortescue's mining operations ticking along

On the operational front, however, the company is delivering solid results and is also looking to invest US$680 million in new green energy infrastructure to support its mining operations, as well as potentially data centres.

Macquarie has recently run the ruler over the company and has reaffirmed its outperform rating on the company's shares with a positive share price target, which we'll get to shortly.

Firstly, let's have a closer look at the company's most recent production report.

The company in April said it had shipped 48.4 million tonnes of iron ore in the third quarter, bringing the total amount shipped over nine months to 148.7 million tonnes, up 4% over the same period the previous year.

Fortescue Metals and Operations Chief Executive Officer Dino Otranto said at the time:

We delivered a solid quarter, contributing to record shipments of 148.7 million tonnes for the nine months to March. That reflects a significant effort from the team right across the business. At the same time, we're getting on with decarbonising our operations and we're already seeing the benefits. Given volatility in global energy markets, there's never been a clearer reason why this matters. For us, it's about strengthening energy security, lowering costs and eliminating emissions. The build-out of our green grid is well underway, with 630MW of solar and 133MW of wind generation under construction. As we bring this online, we're fundamentally reshaping how we power our operations by cutting our reliance on fossil fuels, at a time when energy supply is increasingly uncertain.    

Meanwhile, the class action brought against the company relates to allegations including sexual harassment and sex discrimination.

Fortescue shares still looking like good value

Macquarie said it was expecting Fortescue to ship 53 million tonnes in the fourth quarter, and is also expecting the company to release an optimisation study in the next few months.

Macquarie said:

We expect an in line result at the quarterly, with FY27 guidance the key item of focus; we could see the first signs of the Hematite over magnetite strategy come through in volume guidance, with the outcomes of the portfolio optimisation study potentially occurring later in the year.

Macquarie has a 12-month price target of $21 on Fortescue shares, compared to $18.47 currently.

Including the company's 6.5% dividend yield, this would equate to a total shareholder return of 17%.

Morgan Stanley has a dissenting view on Fortescue shares, with a sell rating and a price target of $17.25 on the company.

The post How high does Macquarie think Fortescue shares will go? appeared first on The Motley Fool Australia.

With a new financial year now underway, perhaps you are looking for some fresh investment ideas.

Morgan Stanley reckons we shouldn't go near these ASX 200 shares for now.

Here are five stocks with sell ratings from the broker at the start of FY27.

Fortescue Ltd (ASX: FMG)

The Fortescue share price is $18.30, down 0.5% today.

The ASX 200 mining share has risen 13% over 12 months.

Morgan Stanley reiterated its sell rating on Fortescue shares today.

The broker cut its 12-month price target from $18.85 to $17.25.

This implies a potential 5% downside ahead.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is $36.09, down 0.4% today.

The ASX 200 bank share has risen 7.1% over the past year.

Morgan Stanley reiterated its sell rating on Westpac shares with a $31.50 target yesterday.

This implies a potential capital decline of 13% ahead.

Deterra Royalties Ltd (ASX: DRR)

The Deterra Royalties share price is $4.39, down 2.1% today.

The ASX 200 materials share has risen 12% over 12 months.

Deterra has a portfolio of 14 royalties and royalty-like offtake assets in seven nations.

It is invested in iron ore, lithium, mineral sands, copper, molybdenum, and gold.

Mining royalties are agreements in which a third party provides financing to a miner in exchange for a portion of future revenues or production.

Morgan Stanley downgraded the stock to a sell rating today.

The broker shaved its 12-month price target from $4.45 to $3.95.

This suggests a potential 10% downside ahead.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is $167.10, down 0.6% today.

CBA shares have dropped 6.6% over the past 12 months.

Morgan Stanley maintained its sell rating on CBA shares with a $125 target this week.

This suggests a potential 25% downside for FY27.

National Australia Bank Ltd (ASX: NAB)

The NAB share price is $38.98, down 1.6% today and down 0.8% over 12 months.

Morgan Stanley kept its sell rating on NAB shares with a $34.50 target this week.

This implies an 11% downside from here.

The post Dump 'em! Morgan Stanley slaps sell ratings on 5 ASX 200 shares appeared first on The Motley Fool Australia.

Today, China's National Bureau of Statistics publishes June CPI and PPI data.

The reading will provide the most current picture of whether China's economy is reflating amid commodity and energy price pressures from the Middle East conflict, or whether domestic demand remains too weak to sustain higher prices.

Shareholders in BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and Fortescue Ltd (ASX: FMG) should keep a close eye on these developments.

What the recent trend shows

May CPI held steady at 1.2% year on year, slightly below the 1.3% market expectation. This confirmed that consumer-level inflation remained contained, giving Beijing room to maintain accommodative policy settings.

May PPI told a more inflationary story, rising 3.9% year on year, the fastest pace since July 2022.

This was driven by surging commodity and energy prices from the Iran war supply disruptions.

Mining prices rose 15.8% year on year, and raw materials climbed 9.2%.

Both categories are directly relevant to the revenue BHP, Rio Tinto, and Fortescue generate from selling iron ore and copper into the Chinese market.

What it means for BHP

BHP is the most diversified of the three ASX shares, with earnings spread across iron ore, copper, and potash.

Its copper exposure makes it particularly sensitive to any sign that Chinese industrial activity is weakening.

BHP is also down after workers announced plans to strike at its WA iron ore terminal on 16 July.

This adds to a company-specific complication alongside the broader China data sensitivity.

What it means for Rio Tinto

Rio Tinto is the most diversified across commodities, with exposure to iron ore, copper, aluminium, and lithium.

That breadth means Rio's earnings are sensitive to a wider array of Chinese demand signals simultaneously.

Rio Tinto shares fell 7.1% in June as the temporary ceasefire eased oil prices and pulled commodity sentiment lower.

A strong PPI print tomorrow, confirming China's factory inflation remains elevated, would be positive for Rio's revenue outlook across all three of its primary commodities.

What it means for Fortescue

Fortescue is the most purely exposed of the three to China's iron ore demand, with virtually all revenue coming from a single commodity sold almost exclusively into the Chinese steel market.

Fortescue fell 4.2% in June, underperforming both BHP and Rio Tinto. This partly reflected the company's higher sensitivity to Chinese demand deterioration.

Furthermore, Bloomberg has reported that China's state-backed iron ore buyer has signalled plans to blacklist Fortescue's Super Special Fines product from 15 July, a company-specific headwind that adds to the near-term risk around tomorrow's data.

A constructive June PPI print would help offset that headwind. On the other hand, a weak print would amplify it.

A note on the data for these ASX shares

June's figures cover a period when the Strait of Hormuz briefly reopened following the ceasefire before last night's fresh US strikes reversed that dynamic.

Investors should not interpret a softer June PPI print purely as a sign of Chinese demand weakness.

It may also reflect the brief period of ceasefire-driven commodity price relief before hostilities resumed.

Foolish Takeaway for ASX shares

China's June CPI and PPI data drops today and will provide the most recent indication of whether Chinese industrial activity can sustain commodity demand underpinning BHP, Rio Tinto, and Fortescue.

A positive print would reinforce the bull case for all three ASX shares.

A surprise to the downside, combined with the other headwinds each stock is currently carrying, would add further near-term pressure.

The post China's CPI and PPI data drops today. Here is the potential impact for these ASX shares appeared first on The Motley Fool Australia.

The attractiveness of some investments may have changed in the last few months following the Federal budget. Property investors who buy an established residential property can no longer benefit from negative gearing (the losses are carried forward until the property makes a profit), though buyers of new builds can still make use of negative gearing.

The outlook for sizeable capital gains for residential property looks challenging in the short to medium term.

In my view, there are three areas that still make a lot of sense for investors.

Commercial property

Residential properties may have been impacted, but commercial property looks as attractive as ever to me. Commercial properties are normally positively geared, which is great for investor cash flow.

However, I'm not looking to become a property manager. Instead, I believe that high-quality real estate investment trusts (REITs) are a great option to invest my money because I can buy a stake in a portfolio of properties in a single transaction.

Names like Centuria Industrial REIT (ASX: CIP), Dexus Industria REIT (ASX: DXI), Charter Hall Long WALE REIT (ASX: CLW) and Rural Funds Group (ASX: RFF) offer exposure to quality property portfolios and good distribution yields. As a bonus, they are all trading at large discounts to their last reported net tangible assets (NTA).

High-quality exchange-traded funds

Another area that I think is well worth investing in is exchange-traded funds (ETFs) and listed investment companies (LICs) because of the diversification and returns they can provide over the long-term.

I'd rather invest in international shares than local shares because I'm not sure that ASX blue-chip shares are going to grow earnings materially in the near-term. Major ASX bank shares face headwinds from the property taxation changes, as well as a challenge from Macquarie Group Ltd (ASX: MQG), while African iron ore from new projects could be a headwind for earnings from BHP Group Ltd (ASX: BHP) and Fortescue Ltd (ASX: FMG).

In my view, something like the Vanguard MSCI Index International Shares ETF (ASX: VGS) makes a lot of sense because it provides exposure to well over 1,000 shares from the global share market.

But, given the uncertainty of how various intriguing investment trends will play out – AI, data centres, private credit, the lack of fuel and other resources flowing out of the Middle East, and inflation – I think high-quality businesses are best-suited to these conditions.

Over the long-term, I believe ideas such as VanEck MSCI International Quality ETF (ASX: QUAL) and Betashares Global Quality Leaders ETF (ASX: QLTY) can outperform the wider global share market, so that could be a great place to invest my money.

ASX shares that can grow earnings

The final place that could be a good area to invest is good ASX shares with solid earnings growth potential.

There are plenty of businesses that could deliver pleasing returns over the long-term as they grow their earnings. The ASX is more than just the largest businesses.

I'm thinking of names like Temple & Webster Group Ltd (ASX: TPW), Breville Group Ltd (ASX: BRG), Sigma Healthcare Ltd (ASX: SIG), TechnologyOne Ltd (ASX: TNE), Siteminder Ltd (ASX: SDR), L1 Group Ltd (ASX: L1G), Lovisa Holdings Ltd (ASX: LOV), Wesfarmers Ltd (ASX: WES) and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

These aren't the only names I'd buy to invest my money for my portfolio, there are plenty of exciting options!

The post How should I invest my money in FY27? appeared first on The Motley Fool Australia.

Over the month just past, the S&P/ASX 200 Index (ASX: XJO) gained 0.5%.

But, after a strong run higher in May, all three of the ASX 200 mining giants lost ground in June.

BHP shares closed on 29 May trading for $62.31. When the closing bell sounded on 30 June, shares were changing hands for $59.40 apiece, down 4.7% over the month.

Fortescue shares fared just a bit better. The Fortescue share price ended May at $22.31 and closed out June at $19.15, putting the ASX 200 miner down 4.2% in June.

And Rio Tinto shares trailed the pack. Shares closed out May at $185.63 and finished June at $172.51 each. This saw the Rio Tinto share price down 7.1% in June.

Why did BHP shares and the other ASX 200 miners go backwards in June?

First, it's important to note that shares in all three of the big Aussie miners remain well up over the past 12 months.

Despite June's retrace, BHP shares were recently up around 60% over 12 months, while Fortescue shares have gained 19% and Rio Tinto shares have jumped 57%. And none of these figures include the two dividends these companies paid out to eligible stockholders over this time.

As for June's pressure, a lot of that was driven by a retrace in the miners' core revenue earning commodities.

On 29 May, for example, iron ore was trading for US$108 per tonne. By 30 June, the iron ore price had slipped to US$100 per tonne.

Copper prices also slid in June. On 1 June the red metal was fetching US$13,832. By 30 June the copper price had fallen to US$13,375 per tonne, according to data from Bloomberg.

What else happened with the ASX 200 mining giant in June?

There was little fresh news out from the Aussie mining giants in June.

The month did mark Mike Henry's last one as BHP's CEO, with Brandon Craig stepping into the top job on 1 July.

And BHP shares did tumble 5.6% on 19 June after the miner reported on higher-than-expected costs at its Jansen Stage 2 potash project, located in Canada.

Investors were favouring their sell buttons after BHP revealed that its full investment estimate for Stage 2 had increased to US$6.9 billion, up from the prior forecast of US$4.9 billion.

First potash production from Stage 2 was also pushed back two years to FY 2031.

The post How Rio Tinto, Fortescue and BHP shares stacked up in June appeared first on The Motley Fool Australia.

By investing today, you can benefit from low tax rates, compounding, and eventually a tax-free passive income once you transition to the pension phase.

But how much do you actually need in your super to be able to get the passive income you want when the retirement years hit?

Let's break it down, using $5,500 per month as an example.

How much do I need in superannuation to get $5,500 of monthly passive income?

If you want to earn $5,500 in passive income every month from your superannuation, that equates to $66,000 per year in dividend payments.

There is an easy way to work out the superannuation balance you'd need to get that level of income. Simply divide your annual passive income by the dividend yield.

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

For example, a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of passive income. 

Let's break it down further.

If your overall portfolio has a dividend yield of around 3%, you'll need a balance of around $2.2 million to earn $66,000 per year in passive income.

A $2 million-plus portfolio isn't achievable for many Australian investors, but the good news is that, as the dividend yield of your portfolio increases, the superannuation balance needed to earn the same passive income decreases.

For example, if the yield of your portfolio is around 5%, your balance would need to be closer to $1.3 million, to earn the same dividend income.

Increase that to a 6% or 7% dividend yield and you're looking at closer to $1.1 million or $943,000. You'd still earn $66,000 per year in passive income of these portfolio sizes.

Can't I just invest in shares with the highest yield to get the biggest returns?

It's a tempting idea, but it doesn't make good investment sense.

Generally, the higher the yield, the higher the risk associated with that ASX stock.

Rather than trying to get rich quickly, investors should concentrate on good-quality businesses with strong balance sheets and stable earnings. These stocks are most likely to stand the test of time and while also building wealth.

The key is diversity, consistency and lots of patience. 

And remember, you don't need to invest the whole sum in one go. Start with a monthly investment and let compound growth do some of the hard work for you.

Ok, so what ASX shares can I buy with dividend yields around 3-7%?

There is a huge range of options, but here are a few of my favourite ASX dividend shares to get you started.

ASX dividend-paying shares such as large cap companies like Commonwealth Bank of Australia (ASX: CBA) or mining giant BHP Group Ltd (ASX: BHP) pay their shareholders a 3-4% dividend yield. As does CSL Ltd (ASX: CLS) and Telstra Group Ltd (ASX: TLS) .

For a mid-range yielding ASX dividend option, I'd look at defensive stocks like Transurban Group (ASX: TCL), APA Group Ltd (ASX: APA), or ASX miner Fortescue Ltd (ASX: FMG), which pay a dividend of 4-6%.

For a higher 7% dividend yield, or even above, I'd look at dividend-payers like Shaver Shop Group Ltd (ASX: SSG), Charter Hall Long Wale REIT (ASX: CLW) or even IPH Ltd (ASX: IPH).

The post How much do I need in superannuation to receive $5,500 per month in passive income? appeared first on The Motley Fool Australia.

For investors who are looking for an income stream rather than capital gains, it pays to go with Australian-based companies that have committed to paying dividends over the medium to long term, and exchange-traded funds specifically set up to pay high dividends.

How much do you need to generate $500 per week?

So, let's look at the yields you'll need for a $500 per week return. This, of course, translates to $26,000 a year.

So, what dividend yields do stocks normally pay?

According to S&P Dow Jones, the S&P/ASX 200 Index (ASX: XJO) delivered an average trailing dividend yield of 4.15% from July 2011 to December 2024.

But this includes plenty of companies that pay low or no dividends.

I'd argue it's quite possible to aim for a portfolio that delivers a dividend yield of around 5%, while also including some companies that pay a lot more.

At a 5% yield, you'd need a portfolio worth $520,000 to deliver $500 a week.

At a 7.5% yield you'd need just $346,666.

At a 10% yield you'd need just $260,000.

While there are stocks which pay more than a 10% yield, these are few and far between, and I'd argue that those sorts of yields are likely to be unsustainable.

What ASX shares can I invest in to achieve $500 in income?

On the ETF front, the Australian Dividend Harvester Active ETF (ASX: HVST) is currently paying a yield of 5.8%, which sits firmly in the ballpark of returns targeted.

There is also the Vanguard Australian Shares High Yield ETF (ASX: VHY) which has major holdings in BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and Rio Tinto Ltd (ASX: RIO).

This ETF currently pays a dividend yield of 5.47%.

Another income-focused security is WAM Capital Ltd (ASX: WAM), which is currently paying a trailing dividend of 10.4%, 60% franked.

Among the miners Fortescue Ltd (ASX: FMG) pays a healthy trailing dividend of 6.37% currently, while toll roads operator Atlas Arteria Ltd (ASX: ALX) – should it survive a current takeover approach – has committed to paying a dividend of 60 cents per share, or well over 10%.

Three other companies which are currently paying out better than 5% dividends are AGL Energy Ltd (ASX: AGL), APA Group (ASX: APA), and Stockland Corporation Ltd (ASX: SGP).

Other solid companies which pay a bit less than we're after are Telstra Ltd (ASX: TLS) with a yield of 3.93% and Westpac Banking Corporation (ASX: WBC) which pays a trailing yield of 4.37%.

So as you can see, with some diversification across stocks such as these, a 5% dividend yield appears to be within reach.

The post How to get started with a portfolio delivering $500 a week in passive income appeared first on The Motley Fool Australia.

Over the past 12 months, the shares have climbed 25%, but after a volatile start to the calendar year, Fortescue shares are down around 13% year to date.

What happened to Fortescue shares in FY26?

The ASX miner's shares climbed steadily higher through the first half of FY26, ending the calendar year around 43% higher.

That strength continued through January, but then weakness in iron ore prices, broad commodity volatility, and profit-taking quickly weighed on the share price. 

Over the past six months, Fortescue shares have fluctuated anywhere between $18.94 and $22.99.

Investors became quite cautious about Fortescue's outlook. And then news that conflict in the Middle East had escalated in early March dampened sentiment around the mining sector further.

At the time, many were concerned about rising costs, fears about a shortage of oil supply, and geopolitical uncertainty around conflict in the Middle East. 

Ever since, Fortescue shares have fluctuated in line with the iron ore price. 

Over the past month Fortescue has made headlines thanks to its new lower-grade iron ore product Fortune Fines. Reports indicate that some Chinese steelmakers have been advised not to engage with the miner about the product while commercial negotiations are still underway. 

Are the ASX miner's shares a buy, sell or hold in FY27?

The experts are mixed about the outlook for Fortescue shares over the next 12 months.

Market Index data shows brokers are divided, mostly between a buy and sell rating. The $19.68 average target price does, however, imply a potential 2% upside ahead, at the time of writing.

Analysts on TradingView are more pessimistic. Out of 17 analysts, eight have a hold rating and eight have a sell or strong sell rating.

The average $19.84 target price implies a potential 3% upside at the time of writing. However, the range between the highest and lowest average target price is huge. Some tip the shares to jump 27% to $24.46. But others think they could fall 14% to $16.51 over the next 12 months, at the time of writing.

Why are the experts so reserved about the outlook for Fortescue shares?

While Fortescue has a copper footprint, the miner primarily mines and exports iron ore. This means, as we've seen throughout the second half of FY26, the miner's shares are heavily reliant on the price of iron ore. And therefore, their value is subject to any price fluctuations that the material might have. 

The price of iron ore is expected to soften through late-2026. It is then forecast to gradually decline through to 2030 as supply increases and Chinese steel demand tapers off.

The post Here's what brokers tip for Fortescue shares in FY27 appeared first on The Motley Fool Australia.