Many Aussies think that they need to invest millions of dollars to make it worth it. But those with more experience know that you can earn a good passive income off any-sized portfolio if it's invested wisely.

But how much dividends could you actually earn?

Let's break it down, using a $400,000 portfolio as an example.

How much could I earn off a $400,000 ASX share portfolio?

To calculate your passive income, you need to multiply your total portfolio value by your dividend yield.

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

For example, $400,000 x 3% = $12,000 per year in dividend payments.

But if you double your portfolio yield to around 6%, your passive income will be double the size too. That's because $400,000 x 6% = $24,000 per year in dividend payments. 

That's some decent passive income!

Then, as your dividend yield increases, the passive income you can earn from your $400,000 portfolio also increases.  

These figures are based on cash dividends before any tax or franking credits.

Of course, this type of money isn't going to become a primary income stream, but it'll certainly help turbocharge your wealth.

Which ASX shares could earn me $12,000 per year in dividends?

To earn an annual passive income of around $12,000, your portfolio will need to yield around 3%.

A 3% dividend yield is very achievable, and there is a huge range of high-quality ASX dividend shares that pay out around that level. 

Macquarie Group Ltd (ASX: MQG), Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are all stable ASX shares that yield around 3%.

What ASX shares could help me earn around $24,000 per year in dividend payments?

To earn an annual passive income of around $24,000, your portfolio will need to yield around 6%.

This is slightly higher than the index average, but there are still plenty of options available.

I'd look at ASX shares like Origin Energy Ltd (ASX: ORG), Graincorp Ltd (ASX: GNC), or Harvey Norman Holdings Ltd (ASX: HVN), which all yield around this level.

What about if I wanted to earn $28,000 per year in dividends, or even more? Is that possible?

Yes, it's possible, although your portfolio would need to average a dividend yield of 7% or higher.

There are options around this level, but remember, the higher the yield, the more risk those ASX shares have.

For ASX shares yielding around 7%, I'd look at Orora Ltd (ASX: ORA), Atlas Arteria Ltd (ASX: ALX), and Dexus Industria REIT (ASX: DXI). Abacus Group (ASX: ABG) pays a little higher, closer to 9%.

Of course, it's important to note that, ideally, you want to build a portfolio comprising a mix of different yielding shares for diversification, rather than a portfolio of just one stock.

The post How much could a $400,000 ASX share portfolio pay in dividends? appeared first on The Motley Fool Australia.

What did Harvey Norman report?

• Federal Court ordered Harvey Norman to pay a $35 million penalty related to ASIC proceedings.
• Latitude Financial Services was also ordered to pay a $20 million penalty.
• Both companies must pay ASIC's costs, shared equally.
• Harvey Norman had recognised $16.2 million in accruals towards this outcome in prior years.
• A further expense will be booked for the year ending 30 June 2026.

What else do investors need to know?

The court found against Harvey Norman in the ASIC case, leading to sizeable financial penalties for both the company and its financing partner, Latitude Financial Services. In addition to the penalties, Harvey Norman will be required to post an adverse publicity notice on its website as part of the Court's orders.

The company has stated it had already recognised part of this cost as accruals in previous accounts, which will soften the impact on this year's financials. The remaining amount will be recognised as a further expense in the coming financial year.

What's next for Harvey Norman?

Harvey Norman will now be moving forward with the requirements of the Court, including the financial payments and the website notice. Management will be focused on minimising further reputational risks and ensuring full compliance with regulatory expectations.

Investors can expect further transparency from the company as it incorporates these costs into its upcoming annual results. Harvey Norman will likely review its policies to prevent similar issues in future.

Harvey Norman share price snapshot

Over the past 12 months, Harvey Norman shares have declined 16%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

View Original Announcement

The post Harvey Norman penalised $35 million in ASIC court case appeared first on The Motley Fool Australia.

But, unfortunately, it doesn't happen by accident.

To generate that level of income, investors need the right portfolio size and a mix of holdings that can support payments through different market conditions.

How to build a $50,000 passive income

If you are lucky enough to have $1 million already, then to generate $50,000 in passive income all you would need to do is target a 5% average dividend yield across a portfolio.

But not everyone is so lucky. If you don't have these funds at your disposal, then you will have to play the long game and build up your portfolio.

That could mean investing $1,000 a month into ASX shares and targeting a 10% per annum average return. Doing so would grow a portfolio to $1 million in around 23 years.

What sort of portfolio should you build once you have the funds? Let's dig deeper into things.

Start with a diversified income base

One way to begin is with the Vanguard Australian Shares High Yield ETF (ASX: VHY).

This exchange traded fund (ETF) gives investors exposure to a basket of higher-yielding Australian shares.

The advantage is diversification. Instead of trying to pick every dividend payer individually, investors can use the fund to spread money across a group of income-focused companies.

That can make it a handy foundation for a passive income portfolio.

However, I would not rely on a single ETF alone. A better approach could be to use a high-yield ETF as the base, then add selected ASX dividend shares around it.

Add different sources of income

APA Group (ASX: APA) could be one option.

The company owns energy infrastructure, including gas pipelines, storage, processing assets, and electricity transmission interests. These assets help move energy around the country and can generate cash flows that support distributions.

Charter Hall Long WALE REIT (ASX: CLW) could bring property income into the mix.

Its portfolio is built around long leases to tenants across areas such as government, corporate property, convenience retail, industrial assets, and social infrastructure. Long leases can give investors better visibility over future rent, although interest rates and property valuations remain key risks.

Harvey Norman Holdings Ltd (ASX: HVN) offers a different income angle.

The retailer is exposed to household spending, appliances, furniture, electronics, and the housing cycle. It also owns a significant property portfolio, which gives the business asset backing that many retailers do not have.

Universal Store Holdings Ltd (ASX: UNI) is also cyclical, but it can provide attractive fully franked dividends when trading conditions are supportive.

Its youth fashion focus means the income may not be as defensive as infrastructure or property, but it adds growth potential and a different earnings driver.

Foolish takeaway

I think this shows that a $50,000 annual passive income stream from the ASX is achievable.

It just requires a combination of patience, capital, and discipline. But if you have all three, there's no reason you couldn't generate a meaningful income from the share market.

The post How to build a $50,000 passive income from the ASX appeared first on The Motley Fool Australia.

The tax settings can be attractive, the investment time horizon is long, and investors have the ability to reinvest returns for years before they need to draw on the money.

But how much would someone actually need in superannuation to target a $3,000 monthly passive income?

Let's break it down.

How much is $3,000 per month?

A $3,000 monthly passive income works out to $36,000 per year.

That could make a meaningful difference in retirement. It could help cover groceries, insurance, bills, travel, healthcare, or provide extra breathing room alongside the Age Pension or other income sources.

To achieve this, the amount needed in superannuation depends on the dividend yield generated by the portfolio.

A simple way to estimate it is to divide the annual income target by the portfolio yield.

How much superannuation is needed?

If a superannuation portfolio generated a 3% yield, an investor would need around $1.2 million to earn $36,000 per year in passive income.

At a 4% yield, the required balance falls to around $900,000. A portfolio yielding 5% would need approximately $720,000, while a 6% yield would require about $600,000.

That is a wide range, but it shows how much the yield changes the equation.

A lower-yielding portfolio may require more capital, but it could offer stronger growth or lower income risk. A higher-yielding portfolio can make the income target look easier, but it may come with greater risk.

Should you aim for the highest yield?

It can be tempting to focus only on the biggest dividends.

But that can be a mistake. A very high dividend yield can sometimes be a warning sign. The market may be expecting the dividend to fall, or the company could be facing pressure from weaker earnings, debt, regulation, lower commodity prices, or a difficult cycle.

The best approach is arguably to think about income that is sustainable. That means looking for ASX shares with reliable cash flow, manageable payout ratios, robust balance sheets, and business models that can keep supporting dividends over time.

It is important to remember that a $3,000 monthly passive income target is not just about getting paid next year. It is about building an income stream that can last through retirement.

What ASX shares could help?

ASX shares can be attractive inside superannuation because many pay dividends and some offer franking credits.

Lower-yielding blue chips such as Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), and Washington H. Soul Pattinson and Co Ltd (ASX: SOL) may be good options for investors who want quality and long-term dividend growth potential.

Shares such as Telstra Group Ltd (ASX: TLS), APA Group (ASX: APA), and Transurban Group (ASX: TCL) can provide exposure to telecommunications and infrastructure-style cash flows.

Property trusts such as Charter Hall Long WALE REIT (ASX: CLW) and Charter Hall Retail REIT (ASX: CQR) can also play a role. And investors willing to accept more cyclicality might look at names such as Harvey Norman Holdings Ltd (ASX: HVN) or Universal Store Holdings Ltd (ASX: UNI), which can offer attractive fully franked dividends when trading conditions are supportive.

Foolish takeaway

Aiming for $3,000 per month in passive income from superannuation is achievable, but the required balance depends heavily on the portfolio yield.

At a 5% yield, the rough target is around $720,000. At 6%, it falls to around $600,000.

The best answer may sit somewhere between growth and income. A portfolio that combines quality dividend shares, infrastructure, property income, and some dividend growth potential could give retirees a better chance of building an income stream that lasts.

The post How much is needed in superannuation to target a $3,000 monthly passive income? appeared first on The Motley Fool Australia.

By investing in quality companies that pay consistent dividends, retirees can help support their living expenses. Dividend shares allow this while still giving their portfolio the opportunity to grow over the long term.

The balancing act 

When choosing dividend shares, it's important to look for a balanced dividend yield rather than one that is extremely high.

A high dividend yield can sometimes be a warning sign that the company's share price has fallen due to financial problems. This can make the dividend harder to sustain. 

On the other hand, a very low dividend yield may provide little income and could indicate that the company prioritises growth over returning profits to shareholders. 

A balanced dividend yield often suggests that the company is financially stable, generates consistent earnings, and is able to reward shareholders while still investing in its future.

What is considered a good yield in Australia?

For years, the ASX has been one of the best places in the world for dividend investors.

Australian companies have a long history of paying generous dividends. This has made the local share market a favourite among investors looking to build a reliable stream of passive income.

The numbers back it up. According to S&P Global, the S&P/ASX 300 Index (ASX: XKO) had a trailing 12-month dividend yield of 3.5% as of 31 December 2024. 

That's comfortably ahead of Europe (3.2%), Canada (2.8%), and the United States (1.8%).

For retirees looking to better this number, here are three ASX dividend shares that could supplement your superannuation and beat this 3.5% benchmark. 

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman is a popular dividend stock due to its strong cash generation, fully-franked dividends, and a history of returning excess capital to shareholders. 

Bell Potter is forecasting fully-franked dividends of 31.1 cents per share in FY 2027. This is followed by 33.3 cents per share in FY 2028. 

This results in a dividend yield of over 6% over the next two years. 

Propel Funeral Partners Ltd (ASX: PFP)

Another option to generate passive income alongside your superannuation is Propel Funeral Partners. 

It is an attractive dividend stock because of its defensive business model, recurring demand, and consistent earnings growth.

Based on CMC Invest's forecast, the potential grossed-up dividend yield for FY26 is 5.5%, which could rise to over 6% by FY28. 

Collins Foods Ltd (ASX: CKF)

Collins Foods is another stock offering above-average yields. 

It is a solid dividend stock because its ownership of established quick-service restaurant brands, including KFC operations in Australia and overseas, provides resilient cash flows that support reliable dividend payments over time.

Morgans is forecasting fully-franked dividends per share of 31 cents in FY 2027 and 35 cents in FY 2028. 

This equates to a yield of around 4%. 

The post 3 shares with above-average dividend yields to supplement your superannuation 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.

But with so much choice, it can be hard to decide which ones to buy.

To narrow things down, let's look at three dividend shares with 5%+ dividend yields that analysts are tipping as buys.

They are as follows:

Charter Hall Long WALE REIT (ASX: CLW)

The team at Citi thinks that Charter Hall Long WALE REIT could be a top pick for income investors.

The broker has a buy rating and $4.10 price target on the long-lease focused property company's shares.

Citi highlights that the company's shares offer value at current levels, especially with a large portion of rents inflation-linked and its big dividend yield.

Speaking of which, the broker is forecasting dividends per share of 25.5 cents in FY 2026 and then 25.7 cents in FY 2027. Based on its current share price of $3.71, this would mean dividend yields of approximately 6.9% in both years. 

Harvey Norman Holdings Ltd (ASX: HVN)

Another ASX dividend share that could be worth considering is retail giant Harvey Norman.

Bell Potter is bullish on the company and has a buy rating and $6.00 price target on its shares.

Although the broker expects FY 2027 to be a tough year, it believes this is more than priced in. So, with generous dividend yields expected, it sees now as a good time to snap up Harvey Norman's shares. 

Bell Potter is forecasting fully franked dividends of 31.1 cents per share in FY 2027 and then 33.3 cents per share in FY 2028. Based on its current share price of $4.82, this equates to dividend yields of 6.5% and 6.9%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

A third ASX dividend share that brokers are recommending to clients is Universal Store. 

Morgans has a buy rating and $9.50 price target on the youth fashion retailer's shares.

The broker has been pleased with the company's performance in FY 2026, highlighting that double-digit sales growth is expected despite tough operating conditions.

It notes that Universal Store's Perfect Stranger brand is performing strongly, which bodes well for its store rollout. 

With respect to income, Morgans is forecasting the company to pay fully franked dividends of 40 cents per share in FY 2026 and then 46 cents per share in FY 2027. Based on its current share price of $7.43, this represents dividend yields of 5.4% and 6.2%, respectively.

The post 3 ASX dividend shares to buy with 5%+ yields appeared first on The Motley Fool Australia.

Three broker buy ratings that you might want to know more about are summarised below. Here's why brokers think these ASX shares are in the buy zone:

Coles Group Ltd (ASX: COL)

According to a note out of Macquarie, its analysts have retained their outperform rating and $25.10 price target on this supermarket giant's shares. This follows news that the company has walked away from a potential $4 billion deal to buy Petbarn's owner Greencross. Coles revealed that it has ceased talks with private equity firm TPG Capital over the potential buyout of the pets and vets business. Macquarie believes the news removes an overhang. Though, it concedes that the market may still price lingering questions on strategy given the share price performance around the news. Overall, the broker believes the long-term strategy in the Supermarkets business remains intact and continues to see growth opportunities from increased private label penetration and retail media. The Coles share price ended the week at $23.21.

Harvey Norman Holdings Ltd (ASX: HVN)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this retail giant's shares with a reduced price target of $6.00. While the broker suspects that FY 2027 could be a tough year for retailers like Harvey Norman, it feels this is more than priced in. Bell Potter highlights that Harvey Norman's shares are trading on a 1-year forward P/E ratio of ~13x, which it believes is attractive. In addition, it continues to see mid-longer term growth catalysts. This includes new store-driven growth in international retailing (UK, Malaysia, Croatia), the refit program in Australia, and the expansion of brand partnerships in the mid- premium end of the whitegoods market. Bell Potter also sees opportunities to grow its real estate portfolio as Australia's single largest owner in large format retail with a global portfolio of ~$4.6 billion. The Harvey Norman share price was fetching $4.78 at Friday's close.

ResMed Inc. (ASX: RMD)

Analysts at Morgans have retained their buy rating on this sleep disorder-focused medical device company's shares with a slightly trimmed price target of $40.97. According to the note, Morgans believes the divestment of the MatrixCare business for US$490 million crystallises a disappointing financial outcome (ResMed paid US$750 million in 2018). However, strategically, the broker believes the transaction makes sense. It notes that it simplifies the portfolio and retains Brightree and MEDIFOX DAN, while exiting a lower-growth, non-core software business. In addition, net proceeds will largely be returned to shareholders via an accelerated share repurchase, which it believes should substantially offset earnings dilution from both the MatrixCare disposal and the recently completed Noctrix acquisition. As a result, it remains positive and continues to see lots of value on offer here. The ResMed share price ended the week at $28.75.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

To narrow things down, let's take a look at two that have been named as buys by brokers.

Here's what they are recommending to clients:

Collins Foods Ltd (ASX: CKF)

Morgans is a fan of this quick service restaurant operator and has been pleased with its performance in a tough operating environment.

Commenting on its recent results, the broker said:

In our view, CKF reported a solid result in light of tough conditions. NPAT grew 17.6%, at the mid-point of guidance. COGS are expected to be flat to modest in FY27, which is better than feared. KFC Australia 1H27-to-date SSS of +4.0% is a stronger-than-expected start. Europe disappointed with early 1H27 SSS tracking deeply negative, though attributable to factors outside CKF's control. Balance sheet remains strong with ND/EBITDA of 0.8x, keeping CKF well placed to fund the German expansion, accelerate Kwench rollout, and pursue further German bolt-on acquisitions. 

While the composition of our forecasts has changed, the net profit impact is minor. We believe CKF remains undervalued for its growth profile. Despite the tough consumer environment, CKF proves resilient regardless of numerous challenges and continues to deliver solid growth. We retain our BUY recommendation and revise our price target to A$10.60 from A$12.50.

Morgans is forecasting fully franked dividends per share of 31 cents in FY 2027 and 35 cents in FY 2028. Based on its current share price of $7.95, this would mean dividend yields of around 4% and 4.4%, respectively. 

The broker has a buy rating and $10.60 price target on the company's shares.

Harvey Norman Holdings Ltd (ASX: HVN)

Another ASX dividend share that brokers are bullish on is retail giant Harvey Norman.

Bell Potter expects FY 2027 to be a tough year, but believes this is more than priced in. And with generous yields expected, it sees now as a good time to snap up Harvey Norman's shares. It said:

While our views on FY27e sees challenging conditions for retailers with a recovery weighted to 2H, on our revised estimates HVN continues to trade at a 1-year forward P/E of ~13x (as per BPe) which appears attractive. 

We see mid-longer term growth catalysts related to the new store driven growth in international retailing (UK, Malaysia, Croatia), refit program in Australia, expansion of brand partnerships in the midpremium end of the whitegoods market somewhat offsetting the risk in the mid-market space and opportunities to grow their real estate portfolio as Australia's single largest owner in large format retail with a global portfolio of ~$4.6b. We maintain BUY.

Bell Potter is forecasting fully franked dividends of 31.1 cents per share in FY 2027 and then 33.3 cents per share in FY 2028. Based on its current share price of $4.75, this equates to dividend yields of 6.6% and 7%, respectively.

The broker currently has a buy rating and $6.00 price target on its shares.

The post Brokers name 2 ASX dividend shares to buy with 4% to 7% yields appeared first on The Motley Fool Australia.

The broker sees one as a clear buy with healthy upside, while the other is listed as a sell. 

Here is the latest on these retailers.

REA Group not out of the woods yet 

REA Group shares jumped 6% yesterday, however Bell Potter appears unconvinced of a long term rebound. 

Its share price remains down almost 33% in the last year. 

Bell Potter said REA's final listings data point for FY26 capped off a strong final quarter for volumes. 

National new listings grew 13% for the month of June, supported by 3% and 9% growth in key Sydney and Melbourne markets respectively. Brisbane and Perth outperformed at 22% and 18%. The result lifts our expected FY26 listings to broadly flat from -1.3% previously, with R3m listings performance also strong at 11%.

Bell Potter has increased its price target  to $137 due to earnings estimate revisions and rolling the valuation forward to increasingly include FY28. However the broker maintains a sell rating for several reasons: 

• Higher expected RBA cash rates are forecast to weaken borrowing demand, reducing activity in the housing market.

• Recent government budget measures are expected to discourage property investment (particularly investors), weighing on house prices and listing volumes despite some support from owner-occupiers.
• Lower dwelling prices and fewer listings are expected to outweigh REA's pricing ("buy yield") benefits. 

Bell Potter's updated target is roughly 14% below current levels. 

Healthy upside for Harvey Norman 

Harvey Norman shares have fallen 32% year to date, however Bell Potter is confident it can recover. 

Bell Potter said Harvey Norman concluded a challenging 2H26. 

While our FY26e estimates remain unchanged, we apply some conservatism to our forward estimates within our revenue assumptions in HVN's Franchising and Retail divisions across all geographies. However, our estimates for the Property division remain largely unchanged as we view HVN's prime position in Australia's large format retail market given the sub-asset class continues to see highest rental growth in an under-supplied market.

The broker has slightly lowered its price target to $6.00 (previously $6.70) however has maintained its buy recommendation. 

From current levels, this indicates approximately 26% upside. 

We view FY27 as the cyclical low point for most retailers and see more leading indicators reflecting a tougher year led by the weak Consumer Confidence on a major household item in HVN's key markets.

The post Buy, hold, sell: Harvey Norman and REA Group shares appeared first on The Motley Fool Australia.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to fall on Friday following a poor night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 26 points or 0.3% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.3%, the S&P 500 is down 0.6%, and the Nasdaq is 1.5% lower.

Oil prices ease

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 0.7% to US$79.05 a barrel and the Brent crude oil price is down 0.75% to US$84.32 a barrel. This is despite rising tensions between the US and Iran.

Buy Netwealth shares

Bell Potter thinks Netwealth Group Ltd (ASX: NWL) shares are good value. In response to the investment platform provider's quarterly update, the broker has retained its buy rating and $30.00 price target. It said: "Our Buy rating and target price are unchanged. NWL remains on track to deliver free cash flow margins in-line with 5Y historical standards, balancing growth investments and profitability. Market share cadence and the current multiple make this attractive."

Gold price sinks

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a poor finish to the week after the gold price sank overnight. According to CNBC, the gold futures price is down 1.8% to US$3,979 an ounce. Increasing US interest rate hike bets are weighing on the precious metal.

Buy Harvey Norman shares

Bell Potter sees a lot of value in Harvey Norman Holdings Ltd (ASX: HVN) shares. This morning, the broker has retained its buy rating on the retail giant's shares with a trimmed price target of $6.00. This implies potential upside of 26%. In addition, a dividend yield greater than 6% is expected in FY 2027. It said: "While our views on FY27e sees challenging conditions for retailers with a recovery weighted to 2H, on our revised estimates HVN continues to trade at a 1-year forward P/E of ~13x (as per BPe) which appears attractive."

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

Passive income can also give investors a buffer against share market volatility. This is particularly valuable when share markets swing between peaks and troughs.

The catch is that it can be difficult to spot the ASX shares that are most reliable and can give you the passive income you're targeting.

Let's break it down, using $10,000 per year in passive income as an example.

What portfolio size do I need to get $10,000 in annual passive income from ASX shares?

The easy way to work out the amount of money you'd need is to divide your annual $10,000 passive income by the dividend yield of your overall portfolio.

The tricky part is that the answer varies widely depending on the dividend yield of the ASX shares you'd have in your portfolio. 

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 dividend income. 

So, to receive $10,000 per year in passive income from ASX shares with a 3% dividend yield, you'd need a portfolio of around $333,000.

Then, as your dividend yield increases, the portfolio size needed to earn the same level of passive income goes down.

That means that if your portfolio has an overall dividend yield of around 4%, you'd need to invest closer to $250,000 to receive your $5,000 per year in passive income.

To get the same passive income from a 5% dividend yield, you'd need to invest $200,000.

You'd then need closer to $166,000 to earn the same income off shares with an overall 6% dividend yield.

Raise that portfolio yield to 7% or even 8%, and you would need to be closer to $143,000 or $125,000, respectively.

And so on.

These figures are based on cash dividends before any tax or franking credit benefits.

What ASX shares can I invest in to get my $10,000 annual passive income?

There is a huge range of ASX dividend shares available to buy, and their yields vary significantly. 

But here are a few of my favourites to get you started.

Lower yielding ASX dividend-paying shares such as Wesfarmers Ltd (ASX: WES), Coles Group Ltd (ASX: COL) and Commonwealth Bank of Australia (ASX: CBA) are solid and reliable shares that offer a yield of around 2% to 3%.

For a mid-range yielding ASX dividend option, I'd look at defensive assets like Telstra Group Ltd (ASX: TLS), and blue-chip majors like BHP Group Ltd (ASX: BHP), which pay a dividend of around 3% to 4%.

For a higher 5% to 6% dividend yield, I'd look at dividend-payers like National Australia Bank Ltd (ASX: NAB), retail giant Harvey Norman Holdings Ltd (ASX: HVN), or a REIT like Charter Hall Social Infrastructure REIT (ASX: CQE).

Packaging giant Amcor (ASX: AMC) yields closer to 7%, as does Bank of Queensland Ltd (ASX: BOQ).

If you want to take on more risk and go for a much higher-yielding ASX stock, my picks would be Nine Entertainment Co Holdings Ltd (ASX: NEC) or BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX). These typically yield 9% or more.

But keep in mind that ASX shares carry market risk. So, diversifying across established, cash-flow-heavy dividend-payers and income ETFs is the most reliable strategy.

What does a diversified portfolio look like?

Say you have $200,000 to invest; to earn $10,000 per year in passive income, you'd need a portfolio yield of around 5%. 

But remember, you don't need to invest the whole $200,000 at once, and the dividend is the overall portfolio dividend, not exclusively ASX shares with individual dividend yields at 5%. 

For example, you could split your portfolio up so that around 65% is invested into mid-range yielding ASX shares, another 20% is invested into slightly higher yielding stocks, and the remaining 15% could be invested into riskier but much higher yielding shares.

I'd also look to buy the ASX shares across multiple sectors to diversify my portfolio even further.

It's important to note that while a 5% yield from a diversified portfolio is a reasonable long-term target, it won't be achieved every year. Your passive income will likely fluctuate, depending on the company's profits and dividend decisions.

The post These ASX shares could generate $10,000 per year in passive income appeared first on The Motley Fool Australia.

But which ASX dividend shares could be worth considering?

Let's take a look at five top options for this month.

APA Group (ASX: APA)

APA could be an ASX dividend share to look at in July.

It owns energy infrastructure, including gas pipelines, processing assets, storage, and electricity transmission interests.

These assets play an important role in moving energy around the country. Households, manufacturers, power stations, and major industrial customers all need reliable infrastructure, regardless of whether the economic backdrop is strong or weak.

That gives APA a defensive position in an income portfolio.

The energy transition will continue to change the sector over time, but reliability, storage, firming, and transmission are likely to remain important. This could support the company's cash flows and distributions over the long term.

Charter Hall Long WALE REIT (ASX: CLW)

Another ASX dividend share to look at is Charter Hall Long WALE REIT.

It offers exposure to property income with long lease structures. The company's portfolio includes properties leased to government tenants, major corporates, and operators across sectors such as convenience retail, industrial, office, and social infrastructure.

Given that tenants are locked into long-term leases, this can give investors more visibility over future earnings and dividends. That can be valuable when markets are uncertain.

Interest rates and property valuations remain key risks, but a long lease portfolio can be a good option for investors who want income backed by contracted rental streams.

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman is more than a retailer selling televisions, couches, computers, and appliances.

It also owns a significant property portfolio, which gives the business a different shape from many other consumer-facing companies.

Retail earnings can move with household spending, housing activity, and consumer confidence. But the property backing gives Harvey Norman an extra layer of asset support and flexibility.

Things may be tough for retailers at the moment, but when the retail cycle improves, the company will be positioned to generate strong cash flow and pay attractive fully franked dividends.

Transurban Group (ASX: TCL)

Transurban could be a top ASX dividend share for income investors in July.

The company owns and operates toll roads across major cities in Australia and North America.

Its roads help commuters, freight operators, airport travellers, and businesses move around major cities more efficiently. This ties the company to urban population growth, congestion, and the value people place on saving time.

Traffic volumes can soften during weak periods, but major road networks are hard to replicate. Once built, they can remain important infrastructure for decades.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store is a youth-focused fashion retailer. This means it doesn't have the defensive profile of infrastructure or property. But it does have a clear customer niche, a curated store format, and exposure to brands and trends that resonate with younger shoppers.

When retailers get this right, cash generation can be strong.

Universal Store also has growth options through new stores, online sales, and its owned brands.

Its dividend may not be as predictable as some larger defensive names, but its growth profile could make it an interesting option for investors who want more than a traditional slow-moving ASX dividend share.

The post 5 top ASX dividend shares to buy in July appeared first on The Motley Fool Australia.

Meanwhile, the ASX 200 Index drifted 0.73% lower to finish at 8,764.2 points on Friday.

Economic data released last week suggests the Reserve Bank (RBA) may keep interest rates on hold for a while.

Unemployment fell 0.1% to to 4.4% and annual inflation dropped 0.2% to 4% in May, according to the Bureau of Statistics.

Commonwealth Bank of Australia (ASX: CBA) economist Ashwin Clarke said a 1.3% increase in household spending last month "surprised markets to the upside".

Analysts are pricing in an 81% chance that the RBA will keep interest rates on hold at the next meeting on 11 August.

This is why ASX 200 retail shares outperformed their peers last week.

Let's take a look at some individual company performances.

Consumer discretionary shares led the ASX sectors last week

The Wesfarmers Ltd (ASX: WES) share price rose 5.81% to finish at $90.74 on Friday.

Shares in gaming technology company Aristocrat Leisure Ltd (ASX: ALL) lifted 6.81% to $58.69.

The Lottery Corporation Ltd (ASX: TLC) share price rose 1.26% to $5.63.

The JB Hi-Fi Ltd (ASX: JBH) share price ascended 4.98% to $81.84 on Friday.

Guzman Y Gomez Ltd (ASX: GYG) shares increased 7.42% to $20.27.

Temple & Webster Group Ltd (ASX: TPW) shares ripped 8.64% to $6.16.

The Harvey Norman Holdings Ltd (ASX: HVN) share price rose 1.04% to $4.88.

Super Retail Group Ltd (ASX: SUL) shares finished the week steady at $13.12.

ASX 200 travel share Flight Centre Travel Group Ltd (ASX: FLT) managed a 0.52% lift to $11.99.

Shares in Premier Investments Ltd (ASX: PMV) rose 2.45% to $14.65.

Myer Holdings Ltd (ASX: MYR) shares rose 6.9% to close the week at 31 cents per share.

The Breville Group Ltd (ASX: BRG) share price inched 0.38% ahead to $31.43.

Not all ASX 200 retail shares followed the trend.

The Light & Wonder Inc (ASX: LNW) share price tumbled 13.68% to $110.78.

Eagers Automotive Ltd (ASX: APE) shares dropped 4.5% to $21.43 apiece.

Lovisa Holdings Ltd (ASX: LOV) shares eased 0.68% to $23.25.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post ASX 200 retail shares outperform on growing hopes interest rates have peaked appeared first on The Motley Fool Australia.

That is understandable. The banking giant has a long history of paying large fully franked dividends.

In FY 2027, CBA is forecast to pay a fully franked dividend of $5.15 per share. Based on where its shares trade today, that equates to a dividend yield of approximately 3.2%.

That is a reasonable yield for a blue-chip bank. However, investors seeking larger income streams can find higher forecast yields elsewhere on the ASX.

Here are three ASX dividend shares with bigger projected yields than CBA.

Charter Hall Long WALE REIT (ASX: CLW)

The first ASX dividend share to look at is Charter Hall Long WALE REIT.

This property trust owns a portfolio of leased assets across Australia, with a focus on long leases to government and corporate tenants.

That long-lease structure is important for income investors. It can provide greater visibility over rental income, which supports the trust's ability to make regular distributions to unitholders.

In FY 2027, Charter Hall Long WALE REIT is forecast to pay a distribution of 26.3 cents per unit. Based on its current share price, this equates to a forward yield of approximately 7%. That is more than double CBA's forecast dividend yield.

Harvey Norman Holdings Ltd (ASX: HVN)

Another ASX dividend share offering a larger yield is Harvey Norman.

Harvey Norman is best known for selling furniture, electronics, appliances, bedding, and home-related products. It also has significant property interests, which makes it different from many traditional retailers.

Its earnings can move around with the consumer cycle, particularly when households become more cautious with discretionary spending. However, when conditions are more supportive, Harvey Norman can generate strong cash flow and reward shareholders with attractive dividends.

For FY 2027, the company is forecast to pay a fully franked dividend of 31 cents per share. This represents a forward dividend yield of approximately 6.4%.

Sonic Healthcare Ltd (ASX: SHL)

A third ASX dividend share with a bigger forecast yield is Sonic Healthcare.

It is a global healthcare company with operations across pathology, laboratory medicine, radiology, and diagnostic services.

This gives it exposure to healthcare demand across multiple countries. Diagnostic testing plays an important role in modern medicine, and Sonic has built significant scale in this area over many years.

The company is forecast to pay a partially franked dividend of $1.10 per share in FY 2027. At current levels, this equates to a forward dividend yield of approximately 5.5%, which is comfortably higher than CBA's forecast 3.2% yield.

The post 3 ASX dividend shares with bigger yields than CBA appeared first on The Motley Fool Australia.

Here's what you need to know about these names:

Harvey Norman Holdings Ltd (ASX: HVN)

The first ASX dividend share to look at is Harvey Norman.

It is often viewed simply as a retailer, but there is more to the story than televisions, sofas, fridges, and laptops.

Harvey Norman is really a way to gain exposure to the household replacement cycle. People may delay big-ticket purchases when conditions are tough, but over time homes still need appliances, furniture, technology, bedding, and renovation-related products.

That gives the company exposure to spending that can recover when consumer confidence improves.

It also owns a substantial property portfolio, which gives the business a different shape from many other retailers. This property backing can add support to the investment case and gives Harvey Norman another source of value beyond store trading alone.

Harvey Norman trades with a forecast fully franked FY 2027 dividend yield of 6.4%.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that could be worth a look is Rural Funds.

It gives investors a way to own part of Australia's agricultural infrastructure without having to directly operate a farm.

The group owns agricultural assets and leases them to operators, which means its investment case is more about rental income than trying to pick the next commodity price move.

That is a useful distinction for income investors. Agriculture is essential, but farming can be volatile. Weather, water availability, commodity prices, and operating costs can all affect returns. Rural Funds sits in a different position by owning the underlying assets and collecting rent from tenants.

It is forecast to provide a 5.7% dividend yield in FY 2026 and FY 2027.

Transurban Group (ASX: TCL)

A final ASX dividend share to look at is Transurban.

It owns toll roads in major cities across Australia and North America. These roads form part of the daily movement of commuters, freight operators, airport travellers, and businesses.

That gives the company a practical role in urban life. It is not selling something people buy on impulse. It owns infrastructure that many drivers use because it saves time or provides access to important routes.

This can support steady cash generation over the long term, which is what most income investors are looking for.

The market expects a 4.6% dividend yield from Transurban shares in FY 2027.

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

It could help cover groceries, utilities, insurance, travel, or part of a mortgage. It could also make retirement feel a lot more comfortable.

But how could an investor realistically build it? Let's dig deeper into things.

Build the passive income machine

Aiming for $2,000 a month means aiming for $24,000 a year in passive income.

If an investor can build a portfolio with an average dividend yield of 5%, they would need approximately $480,000 invested to generate that level of income.

However, it is worth noting that ASX dividends do not usually arrive neatly every month. Many companies pay dividends twice a year, while some trusts and ETFs pay quarterly or monthly distributions. So this is best viewed as an average monthly income target, not a monthly payment schedule.

There are a number of ASX income options that could help investors achieve a dividend yield around this level.

This includes HomeCo Daily Needs REIT (ASX: HDN), which offers exposure to everyday-needs property assets and Universal Store Holdings Ltd (ASX: UNI), which offers a higher-yielding retail option.

In addition, APA Group (ASX: APA) is a high-yield option that provides exposure to energy infrastructure, and Harvey Norman Holdings Ltd (ASX: HVN) can offer attractive fully franked dividends when conditions support them.

Investors could also look at an income-focused ETF such as the Vanguard Australian Shares High Yield ETF (ASX: VHY), which provides exposure to a basket of higher-yielding ASX shares.

But it is important to note that a dividend yield should never be the only consideration. A 5% target is useful, but the income still needs to be sustainable. Dividends can be cut, distributions can change, and share prices can fall.

That is why a passive income portfolio should be built around quality, diversification, and financial strength, not just the highest yield on the screen.

What if you are starting from zero?

Of course, many investors will not have $480,000 ready to invest.

That changes the game. The first goal is not to generate the income immediately, it will be to build the capital base that can later produce the income.

This is where regular investing can do the heavy lifting.

If an investor starts from zero, invests $1,000 a month, and achieves an average annual return of 10%, they could build a portfolio worth approximately $480,000 in just over 16 years.

That return is not guaranteed, but it is in line with historical returns.

Which shares should you buy at this stage?

Dividend shares may not be the best way to deliver on our target return. High-yield shares can be useful once the income portfolio is built, but they may not deliver the strongest total returns during the accumulation phase.

Instead, investors may want to focus on quality ASX shares that can compound over time.

That could include Goodman Group (ASX: GMG), which has exposure to logistics, industrial property, and data centres, and Wesfarmers Ltd (ASX: WES), which has a strong portfolio of retail and industrial businesses.

In addition, tech stocks WiseTech Global Ltd (ASX: WTC) and Xero Ltd (ASX: XRO) could be great long-term options for Aussie investors.

The idea is to build the engine first. Once the portfolio reaches the required size, investors can gradually shift more attention toward income, dividends, and cash flow.

That may not happen overnight. But with patience, regular investing, and a focus on quality, a $2,000 monthly passive income stream from ASX shares can become a realistic long-term goal.

The post How to make $2,000 of monthly passive income from ASX shares appeared first on The Motley Fool Australia.

But which ones are buys?

Here are three ASX dividend shares that brokers are recommending to their clients.

ANZ Group Holdings Ltd (ASX: ANZ)

The first ASX dividend share to look at is ANZ.

The banking giant gives investors exposure to home loans, business banking, institutional banking, and customer deposits across Australia and New Zealand.

Banks are not without risks. Credit growth can slow, bad debts can rise, and margins can come under pressure when competition is intense.

But ANZ remains a major player in the Australian financial system and continues to generate large profits and dividends.

Citi is positive on the bank and currently has a buy rating and $39.25 price target on its shares. Based on the current share price of $34.51, that implies potential upside of almost 14%.

The broker expects dividends per share of 166 cents in FY 2026 and 175 cents in FY 2027. This equates to dividend yields of 4.8% and 5.1%, respectively.

Centuria Industrial REIT (ASX: CIP)

Another ASX dividend share that brokers think could be a top pick for income investors is Centuria Industrial REIT.

This property trust owns industrial assets across Australia. These properties can include warehouses, logistics facilities, and other industrial sites that support supply chains, storage, and distribution.

Industrial property has become an important part of the real estate market as businesses look for efficient logistics networks and well-located facilities.

Like all property trusts, Centuria Industrial is exposed to interest rates, borrowing costs, and asset valuations. But its focus on industrial property gives it exposure to a sector with solid long-term demand drivers.

Bell Potter is bullish and has a buy rating and $3.60 price target on its shares. Based on the current share price of $3.05, this suggests potential upside of approximately 18%.

As for income, the broker expects dividends per share of 16.8 cents in FY 2026 and 17.3 cents in FY 2027. This represents yields of 5.5% and 5.7%, respectively.

Harvey Norman Holdings Ltd (ASX: HVN)

A third ASX dividend share brokers are tipping as a buy is Harvey Norman.

The retailer is best known for furniture, electronics, appliances, bedding, and home-related products. It also has a substantial property portfolio, which adds another element to the investment case.

Retail conditions can be uneven when households are under pressure. But Harvey Norman has been through many consumer cycles before and remains one of Australia's most recognisable retail brands.

Bell Potter currently has a buy rating and $6.70 price target on the shares. Based on the current Harvey Norman share price of $4.82, this implies potential upside of approximately 39%.

The broker is forecasting fully franked dividends of 29.8 cents per share in FY 2026 and 33.5 cents per share in FY 2027. This equates to dividend yields of 6.2% and 7%, respectively.

The post 3 excellent ASX dividend shares for income investors to buy now appeared first on The Motley Fool Australia.

If you are, then take a look at the two listed below that brokers rate as buys.

Here's what they are expecting from them in the near term:

Harvey Norman Holdings Ltd (ASX: HVN)

Bell Potter thinks retail giant Harvey Norman could be an ASX dividend share to buy.

It likes the company due partly to its attractive valuation, international expansion, and real estate portfolio. It explains:

While our preference skews to category specialists with balance sheet strength, we see HVN's well balanced geographical diversification somewhat offsetting the multi-category risks. Following the sharp sell-off in the name since Oct-25, HVN's 1-year forward P/E of ~13x (as per BPe) appears attractive considering the new store driven growth in international retailing (UK, Malaysia, Croatia), refit program in Australia and opportunities to grow their real estate portfolio as Australia's single largest owner in large format retail with a global portfolio of ~$4.6b.

Bell Potter expects fully franked dividends of 29.8 cents per share in FY 2026 and 33.5 cents per share in FY 2027. Based on its current share price of $4.79, this equates to dividend yields of 6.2% and 7%, respectively.

The broker has a buy rating and $6.70 price target on its shares.

Nick Scali Limited (ASX: NCK)

Another ASX dividend share that brokers are bullish on is furniture retailer Nick Scali.

The broker is bullish due to its attractive valuation and positive growth outlook. The latter is being driven partly by its UK store rollout. It said:

We use an FY28 PER and DCF when setting our price target as we opt to look through near-term consumer weakness, with the current price providing an attractive entry point. High-quality retailer with a long track record. Nick Scali has delivered long-term EPS growth through disciplined store rollout, LFL growth, best-in-class margins, and operating leverage.

Strong cash generation and balance sheet. Structural negative working capital supports high cash conversion, while the low capital intensity of new store rollouts leaves ample cash flow for dividends and property purchases and/or growth ventures. Store rollout optionality. Further Plush and Nick Scali rollout in ANZ and the Nick Scali rollout opportunity in the UK provide an attractive growth leg.

Morgans is forecasting fully franked dividends of 71 cents per share in both FY 2026 and FY 2027. Based on its current share price of $15.46, this would mean dividend yields of 4.6%.

The broker put a buy rating and $17.84 price target on its shares last week.

The post Brokers name 2 ASX dividend shares to buy appeared first on The Motley Fool Australia.

Consumer staples shares weren't far behind, surging 7.62%.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) rose 2.07% to 8,804 points by Friday's close.

Experts are now predicting an eventual cut for interest rates due to crumbling consumer confidence and low GDP growth.

Consumer sentiment fell in May to one of its weakest levels ever in the 50-year history of the benchmark monthly survey.

Softer-than-expected inflation also enhances the case for rates to be kept on hold or cut at some point.

Annual headline inflation fell to 4.2% in April, down from 4.6% in March, according to Bureau of Statistics figures.

On Friday, the ASX 200 rallied 1.98% after US President Donald Trump said a peace deal with Iran could be reached this weekend.

This would likely lead to the reopening of the Strait of Hormuz, a vital shipping route that carries 20% of the world's oil and gas.

The ongoing oil shock has contributed to resurgent inflation and three interest rate increases in Australia this year.

The Reserve Bank will announce the next interest rate decision on Tuesday.

It may seem counterintuitive that signs of economic weakness boosted ASX 200 retail shares last week.

But remember, share markets tend to look six to 12 months into the future.

Thus, economic weakness today is pushing retail stocks up as investors anticipate a greater likelihood of interest rate cuts.

Let's see how some individual retail stocks performed last week.

Consumer discretionary shares led the ASX sectors last week

The Wesfarmers Ltd (ASX: WES) share price leapt 9.55% over the short trading week to finish at $86.47.

Shares in gaming technology company Aristocrat Leisure Ltd (ASX: ALL) rose 5.07% to $53.91.

The Lottery Corporation Ltd (ASX: TLC) share price soared 8.81% to $5.68.

The Light & Wonder Inc (ASX: LNW) share price ripped 9.8% higher to $127.26.

JB Hi-Fi Ltd (ASX: JBH) shares ascended 7.6% to finish the week at $77.24.

The Harvey Norman Holdings Ltd (ASX: HVN) share price increased 7.88% to $4.79.

Temple & Webster Group Ltd (ASX: TPW) shares soared 13.09% to $5.27.

The Nick Scali Limited (ASX: NCK) share price rocketed 11.71% to $15.46.

Eagers Automotive Ltd (ASX: APE) shares rose 7.06% to $22.29.

The Super Retail Group Ltd (ASX: SUL) share price lifted 8.39% to $12.27.

Lovisa Holdings Ltd (ASX: LOV) shares surged 8.66% to $22.20 apiece.

ASX 200 travel share Flight Centre Travel Group Ltd (ASX: FLT) edged 0.36% higher to $11.07.

The Guzman Y Gomez Ltd (ASX: GYG) share price lifted 3.63% to $19.40.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the shortened trading week:

The post Why did ASX 200 retail shares outperform last week? appeared first on The Motley Fool Australia.