But you don't have to let it sit idly in the meantime.

Instead, you can invest your superannuation balance and generate a regular source of passive income for when you've stopped working.

But exactly how much passive income could a $800,000 superannuation balance generate each year?

Let's investigate.

How much passive income can I generate from an $800,000 superannuation balance?

To calculate the potential passive income from an $800,000 superannuation balance, you need to multiply your total balance by the dividend yield of your portfolio.

It's a simple calculation, but the problem is that the answer varies depending on the yield of the stocks you pick.

For example, a 3% yielding portfolio needs to be twice the size of one that yields 6% to earn the same passive income.

Which also means that as your dividend yield increases, the passive income you can earn from your $8000,000 superannuation balance climbs higher. 

Here's a breakdown by yield. These figures are based on cash dividends before tax or franking credits. 

What can I earn from a 3% to 4% yielding portfolio?

If your superannuation portfolio has a dividend yield of around 3%, your passive income will be around $24,000 per year, because $800,000 x 3% = $24,000.

If your portfolio yields closer to 4%, your passive income could be closer to $32,000 every year ($800,000 x 4% = $32,000).

Major miners like BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) yield around this level. As do banking giant Commonwealth Bank of Australia (ASX: CBA) and conglomerate Wesfarmers Ltd (ASX: WES).

What passive income can I earn if my superannuation portfolio yields 5% or 6%?

If your superannuation portfolio yields closer to 5%, you could earn $40,000 every year in dividend payments off the same superannuation balance ($800,000 x 5% = $40,000).

At a 6% yield, you could earn an annual passive income closer to $48,000.

Classic dividend stocks like APA Group (ASX: APA), Transurban Group (ASX: TCL), and JB Hi-Fi Ltd (ASX: JBH) all pay around this level.

What about a portfolio yielding much higher, around 7% or 8%?

But if your portfolio has a slightly higher dividend yield of around 7% or 8%, your passive income will go up again to around $56,000 or $64,000, respectively.

Again, it's possible to buy shares around this level, but there are fewer options.

Solvar Ltd (ASX: SVR), Waypoint REIT Ltd (ASX: WPR), and HomeCo Daily Needs REIT (ASX: HDN) all pay around this yield at the time of writing.

Is it possible to invest in ASX shares yielding 10% or higher?

It's possible, but generally, the higher the yield, the higher the volatility and risk associated with the stock. 

If high yield and high risk are what you're after, at a 10% yield, a $800,000 balance could earn around $80,000.

You could invest in ASX-listed stocks such as Tower Ltd (ASX: TWR) or Kina Securities Ltd (ASX: KSL). Another option is to invest your superannuation in a high-yielding exchange-traded fund (ETF), such as the VanEck MSCI International Value ETF (ASX: VLUE) or the VanEck Gold Miners ETF (ASX: GDX). These all yield 10% or more at the time of writing.

The post How much passive income can I earn off an $800,000 superannuation balance? appeared first on The Motley Fool Australia.

Meanwhile, the S&P/ASX All Ords Index (ASX: XAO) has risen 2% in the YTD and is 0.5% higher over the past month.

This week on The Bull, two experts offer their latest ratings and insights on 3 ASX small-cap shares.

Advanced Engineered Materials Ltd (ASX: AEM)

AEM produces high purity alumina (HPA) and has production facilities in Quebec, Canada.

The Advanced Engineered Materials share price is steady at 35 cents on Tuesday, and down 43% over 12 months. 

Jonathan Tacadena from MPC Markets has a buy rating on this ASX small-cap materials share. 

Tacadena said: 

HPA is a specialised form of aluminium oxide, which is a critical input for a range of commercial applications, including electronics, semi-conductors and lithium-ion batteries.

The Quebec plant operates a patented low-cost process and is expanding production.

AEM continued to increase production in the first half of 2026 and unaudited revenue was up 85 per cent on the prior corresponding period.

In our view, the stock is trading at a discount and offers good value.

Kina Securities Ltd (ASX: KSL)

KSL is Papua New Guinea's second largest commercial bank and financial services company, and its biggest wealth manager.

The Kina Securities share price is $1.20, down 0.4% today and down 8% over 12 months. 

Remo Greco from Sanlam Private Wealth has a buy call on this ASX small-cap financial share. 

Greco said: 

Substantial resource development is driving strong lending growth.

The bank's strong capital base is poised to generate growth and increase its market share. 

In July, the company forecast net profit after tax to increase between 15 per cent and 20 per cent for the financial year ending December 31, 2026.

KSL's dividend yield is also appealing as it was recently trading above 7.5 per cent.

Metrics Master Income Trust (ASX: MXT)

Metrics Master Income Trust is a non-bank corporate lender and alternative asset manager.

The Metrics Master Income Trust share price is $1.89, down 0.8% today and down 8% over 12 months. 

Greco has a sell rating on this ASX small-cap income share.

He explained: 

MXT … specialises in fixed income, private credit, equity and capital markets.

The trust allocates capital across corporate loans and other income producing assets to pay its investors a regular income.

Our concern is a weakening economy operating under the weight of persistent inflation, stubbornly high interest rates and recent tax changes announced in the federal budget that could penalise capital growth.

The company's listed price can be volatile.

The post 2 ASX small-cap shares to buy and 1 to sell: Experts appeared first on The Motley Fool Australia.

What did Kina Securities report?

• Statutory NPAT rose 4% year on year to PGK59.7 million
• Revenue increased 2% to PGK254.8 million
• Net interest income grew 5% to PGK119.3 million
• Interim dividend up 13% in PGK at 14.2 toea (AUD 4.5 cents, stable year on year)
• Capital adequacy ratio strengthened to 26.0% (+870 bps), boosted by PNG's first listed corporate bond
• Operating costs rose 7% to PGK159.6 million
• Non-interest income represented 53% of total revenue, declining slightly by 2%

What else do investors need to know?

Kina Securities made history this half by issuing PNG's first listed corporate bond, raising PGK235 million. This has significantly fortified its capital position and supports the group's long-term growth ambitions as outlined in its 2030 Strategy.

The group continued to invest in its digital capabilities, launching the Pei Beta digital wallet for retail customers and a new Corporate Online Banking platform for businesses. While loan book growth was deliberately slowed as part of balance sheet optimisation, management remains confident in a robust lending pipeline for the second half.

Macroeconomic headwinds such as a weaker kina and lower government yields put pressure on costs and margins. In addition, revenue in payment acquiring was temporarily affected by interoperability issues between a major PNG bank and new debit cards. Industry-wide fixes are expected to restore balance by the end of the year.

What did Kina Securities management say?

CEO Ivan Vidovich commented:

Our first half 2026 results reflect a resilient performance despite the anticipated macroeconomic headwinds. Earnings were also affected by the debit card interoperability matter involving a major PNG bank, which altered the competitive landscape in payments acquiring channels, reduced customer choice and constrained transaction-related revenue growth. The issuance of KSL's PGK235 million Tier 2 Bond, the first listed corporate bond in PNG, materially strengthened our capital position and balance sheet capacity and represents an important early milestone in the delivery of the 2030 strategy… We entered the second half with positive momentum, and expect earnings to increase during the remainder of 2026.

What's next for Kina Securities?

The company is focused on driving organic growth in the second half of the year, aiming to accelerate loan growth while carefully managing external challenges. Improved foreign exchange activity and a strengthened balance sheet are expected to underpin earnings for the rest of 2026.

Kina Securities also plans ongoing investment in technology and capabilities under its 2030 Strategy, maintaining a disciplined approach to risk and capital management for long-term shareholder value.

Kina Securities share price snapshot

Over the past 12 months, Kina Securities shares have declined 8%, trailing the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

View Original Announcement

The post Kina Securities lifts profit and dividend in half-year 2026 earnings appeared first on The Motley Fool Australia.

However, many of the large-cap companies we consider blue-chip stocks today once started out as humble penny stocks. 

Following earnings season, brokers have updated their guidance on plenty of ASX shares, including penny stocks.

Here are two that have attracted optimistic price targets from broker Morgans.

Peoplein Ltd (ASX: PPE)

Peoplein is a workforce solutions company operating in Australia and New Zealand. The company's services include recruiting, contracting, onboarding, rostering, timesheet management, payroll, and workplace health and safety management.

According to Morgans, FY25 was a challenging year for the company, with normalised EBITDA down 10% (vs pcp).

The broker said that while several operational metrics look to be stabilising, the result was light on forward guidance, although management did note that it remained well-positioned to benefit from a potential Queensland infrastructure boom. 

On Monday, Morgans said that this ASX penny stock's financial position is getting stronger, with debt down to $27.4 million. 

The stock looks comparatively cheap, trading at about 9 times earnings, and profits may be near their lowest point, suggesting potential for improvement. 

To this end, we see earnings growth driving share price appreciation through FY27/28, with any turnaround unlikely to be visible until 4QFY26. Hence we reiterate our Speculative Buy rating with a $1.00/sh price target.

Should this penny stock reach the $1.00 price target, that would be a 42% rise from yesterday's closing price of $0.70. 

Kina Securities Ltd (ASX: KSL)

Kina Securities provides diversified financial products and services. The company offers banking services, personal and commercial loans, money market operations, provision of share brokerage, fund administration, investment management services, asset financing, and corporate advice.

The company delivered 1H25 results in line with Morgans' predictions. 

Its 1H25 underlying NPAT (A$57m) was +16% on the pcp.  

Morgans described this as a clean, solid result. The only slight negative was that underlying cost growth remained high (+10% on the pcp), but this was matched by revenue growth.  

The broker has lowered FY25F/FY26F EPS by 1% to 5% on slightly higher cost growth than previously forecast. 

Despite this our valuation rises to A$1.67 (previously A$1.46) with our earnings changes offset by a valuation roll-forward, we maintain our BUY recommendation. 

From yesterday's closing price of $1.32, this indicates an upside of approximately 26% for this ASX penny stock.

The post Morgans says these ASX penny stocks can rise 40%! appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is down 2.5% to $1.53. This is despite oil prices rising overnight and the release of the energy producer's strategic review this morning. In respect to the latter, Beach Energy has laid out a plan that it believes will result in operating cost and capital reductions totalling ~$135 million. This will come from a 23% headcount reduction, ~$35 million field operating cost savings, and a ~$100 million sustaining capital expenditure reduction. Management believes that this will help it deliver leading shareholder returns through the sustainable supply of energy.

Fortescue Ltd (ASX: FMG)

The Fortescue share price is down 4.5% to $21.95. This has been driven by news that a major block trade has taken place at a decent discount to yesterday's close price. It remains unclear who is selling, but there are reports that a large institutional investor offloaded $1.1 billion worth of the iron ore miner's shares through a block trade this morning. These shares were sold at $21.60 per share, which is a 6% discount to where Fortescue's shares ended yesterday's session.

Kina Securities Ltd (ASX: KSL)

The Kina Securities share price is down 7.5% to 88 cents. This morning, this Papa New Guinea-based financial services provider revealed that it has identified a recent instance of fraud impacting several accounts belonging to a small number of customers. The amount involved is the subject of ongoing investigation. However, the aggregate loss is expected to be in the range of PGK12 million to PGK15 million (A$4.74 million to A$5.9 million) on a pre-tax basis. Through root cause analysis, certain system vulnerabilities were identified and promptly addressed. Kina Securities has downgraded its guidance to reflect this.

Melbana Energy Ltd (ASX: MAY)

The Melbana Energy share price is down 36% to 4.3 cents. This follows news that the appraisal of the Alameda-3 well in Cuba wasn't successful. Two attempts were made at flowing the well, however in both cases the complete removal of drilling mud and downhole fluids from the test string was not achieved and oil did not flow to surface. Preparations for testing of the shallower Alameda formation now underway.

The post Why Beach Energy, Fortescue, Kina Securities, and Melbana Energy shares are dropping today appeared first on The Motley Fool Australia.

In morning trade, the banking giant's shares are down almost 1% to $20.88.

Why is the Westpac share price falling?

Today's decline is likely to have been driven by a couple of factors.

The first is broad market weakness following a sell-off on Wall Street overnight. This has seen all of the big four banks tumble into the red today.

Also potentially weighing on the Westpac share price today has been the release of the announcement relating to its Pacific operations.

What did the bank announce?

According to the release, Westpac has ended the sales process for its Pacific banking businesses after failing to find a suitable buyer.

It appears that Westpac struggled to find an alternative after Papua New Guinea's Independent Consumer and Competition Commission (ICCC) denied authorisation for the proposed sale to Kina Securities Limited (ASX: KSL).

As a result, the bank will be retaining its Westpac Fiji and Westpac Bank PNG businesses.

Westpac also advised that it will continue to support local businesses, improve digital and service capabilities for customers, and deliver important community programs in financial literacy and education.

Should you buy the dip?

Analysts at Morgans are likely to see the dip in the Westpac share price as a buying opportunity.

The broker currently has an add rating and $22.58 price target on its shares. This implies almost 8% upside for investors from current levels.

And with Morgans forecasting a fully franked dividend of $1.47 in FY 2024, which equates to a 7% dividend yield, the total return on offer stretches to approximately 15%.

The post Why is the Westpac share price falling on Wednesday? appeared first on The Motley Fool Australia.

Morgans analyst Andrew Tang, who has been keeping an eye on all the action, named his last set of stocks to buy for the February reporting season:

Back in 2021 no one thought coal would become the new black

When Dalrymple Bay Infrastructure Ltd (ASX: DBI) listed on the ASX in December 2020, more than one pundit questioned how it would survive as a public company.

After all, it is the owner and operator of a coal export terminal.

But no one saw what was coming next — an energy crisis in 2022 sending any stock related to coal production soaring.

Now Dalrymple Bay shareholders are laughing, with the share price up in excess of 18.5% since the first day on the ASX, all while delivering an 8% dividend yield.

"The FY22 result delivered the substantial earnings growth we were expecting following finalisation of terminal infrastructure charge (TIC) negotiations in 2H22," Tang said on the Morgans blog. 

"Dividend per share guidance had already been provided and was unchanged (albeit the growth outlook was not reaffirmed)."

The stock is a buy for Morgans, especially considering a "forward cash yield of mid-8% and circa 6% price growth potential".

Reporting season 'easily beat our expectations'

On the same theme, coal explorer and producer Stanmore Resources Ltd (ASX: SMR) is also a buy for Tang's team, based on a sensational report to the market.

"Key CY22 financials easily beat our expectations on higher PCI [pulverised coal injection] price realisations," said Tang.

"We now forecast Stanmore to reach a net cash position during 1H23."

The Stanmore share price has more than tripled over the past 12 months, but incredibly still represents excellent value for those willing to buy now.

"Stanmore looks too cheap trading on a +25% free cash flow yield, with +30% capital upside and upside to tight/buoyant hard coking coal pricing," said Tang.

"Stanmore enjoys clear M&A advantages in the Bowen Basin and we think positioning for possible acquisitions will far out-rank dividends through 2023."

'Growing profits gets much easier from here'

Captioning technology and services provider Ai-Media Technologies Ltd (ASX: AIM) has been on a hiding to nothing the last few years.

The stock price has sunk more than 73% over the past five years. Over the past 12 months, it has seen a 40.7% decline.

However, Tang feels like it has turned a corner after seeing its software-as-a-service (SaaS) arm contribute more than 50% of the total profit growth.

"Since it's nearly double the margin of legacy and growing much faster, this means Ai-Media has cleared the critical [inflection] point in its transition to a SaaS business," he said.

"Growing profits gets much easier from here."

The business' gross profit grew both on a year-on-year basis and half-on-half.

"The company booked revenue of $29.7 million for the year, in line with our $29.5 million forecast and 8% below consensus expectations."

13.8% dividend yield? Yes, please

Kina Securities Ltd (ASX: KSL) is not a name often heard when financial stocks are discussed.

The Papua New Guinean bank incredibly pays out a 13.8% dividend yield.

Tang said its February report was "broadly solid", with a lid kept on bad debts and "an impressive ~18% FY22 return on investment".

"Kina Securities' FY22 Underlying net profit after tax (PGK106 million) was +10% on the prior comparable period and in-line with Morgans' expectations."

One headwind that the bank faces is "the lingering Papua New Guinea corporate tax issue".

But the stock is still an add for Morgans analysts, with the low share price seemingly pricing in headwinds.

"Kina Securities continues to deliver solid underlying profit growth, and trading on ~6x FY23F earnings and a >10% dividend yield, we see the stock as too cheap."

The post 4 ASX shares to stock up on after a bright reporting season: Morgans appeared first on The Motley Fool Australia.