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        <title>L1 Long Short Fund (ASX:LSF) Share Price News | The Motley Fool Australia</title>
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	<title>L1 Long Short Fund (ASX:LSF) Share Price News | The Motley Fool Australia</title>
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                                <title>How to boost your income with $50,000 of annual dividends</title>
                <link>https://www.fool.com.au/2026/04/29/how-to-boost-your-income-with-50000-of-annual-dividends/</link>
                                <pubDate>Tue, 28 Apr 2026 20:00:00 +0000</pubDate>
                <dc:creator><![CDATA[Tristan Harrison]]></dc:creator>
                		<category><![CDATA[Dividend Investing]]></category>
		<category><![CDATA[editor's choice]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1837825</guid>
                                    <description><![CDATA[<p>Aussies can create significant dividend income for themselves with ASX stocks. </p>
<p>The post <a href="https://www.fool.com.au/2026/04/29/how-to-boost-your-income-with-50000-of-annual-dividends/">How to boost your income with $50,000 of annual dividends</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
]]></description>
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<p>The ASX stock market is a fantastic place to unlock an additional source of income for Australian investors. <a href="https://www.fool.com.au/definitions/dividend/">Dividends</a> are a wonderful way to passively boost how much income an investor can make each year. Aussies can build up a significant level of annual dividends.</p>



<p>Job earnings are great, but there is an upper limit to how much we can work each week.</p>



<p>Investing in shares means having a small piece of ownership in businesses that are working hard to make profit. They can use some of that profit to fund growing dividends and invest for future growth.</p>



<p>Generating $50,000 of annual dividends won't be a quick result (unless you win the lottery). But, by starting now, investors can give themselves as much time as possible to benefit from <a href="https://www.fool.com.au/definitions/compounding/">compounding</a>.</p>



<h2 class="wp-block-heading" id="h-never-underestimate-compounding"><strong>Never underestimate compounding</strong><strong></strong></h2>



<p>By investing as little as $1,000 (or even less), investors can put money into shares and start seeing the <a href="https://www.fool.com.au/definitions/passive-income/">passive income</a> rolling in.</p>



<p>Let's say a business has a 4% <a href="https://www.fool.com.au/definitions/dividend-yield/">dividend yield</a>, and it grows its dividend by 10% per year. In the first year, if someone invested $1,000, it would pay $40 of annual dividends that we could add to our personal finance budget.</p>



<p>If the business hiked its dividend by 10%, in the second year the dividend payment would be $44.</p>



<p>Another 10% increase would make that amount $48.40 in the third year.</p>



<p>And so on. <strong></strong></p>



<p>In the 10th year, it would be $94.30 of annual dividends.</p>



<p>All of those above numbers are based on the investor only investing $1,000 once. It also assumes no re-investment of dividends into buying new shares.</p>



<p><a href="https://www.fool.com.au/definitions/drp/">Dividend re-investment plans (DRP)</a> make it very easy to re-invest dividends into new shares for no transaction fees. This allows investors to significantly boost the growth of their divided income. Over a 10 year period, it would mean buying hundreds of dollars of more shares.</p>



<h2 class="wp-block-heading" id="h-invest-regularly-to-reach-50-000-of-annual-dividends"><strong>Invest regularly to reach $50,000 of annual dividends</strong><strong></strong></h2>



<p>By making regular contributions to our share portfolio, such as monthly or every two months, we can create that desired income.</p>



<p>For example, if someone invested $1,000 every month and it returned an average of 10% per year (the long-term ASX share market average return), that would turn into a portfolio worth more than $1.05 million. Depending on the dividend yield of a portfolio, that could allow investors to generate $50,000 of annual dividends.</p>



<p>I'm aiming to build that sort of financial picture for myself, though I'm still a long way from achieving it.</p>



<p>I am investing in ASX shares I believe can deliver strong total returns, including a good dividend yield. I can re-invest those dividends into buying more shares or spend that money – that's up to me as the months and years go by. </p>



<p>Some of my favourite ASX dividend stocks for this objective include <strong>Washington H. Soul Pattinson and Co. Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-sol/">ASX: SOL</a>), <strong>MFF Capital Investments Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-mff/">ASX: MFF</a>), <strong>L1 Long Short Fund Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>), <strong>WCM Quality Global Growth Fund</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-wcmq/">ASX: WCMQ</a>) and <strong>WCM Global Growth Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-wqg/">ASX: WQG</a>).</p>
<p>The post <a href="https://www.fool.com.au/2026/04/29/how-to-boost-your-income-with-50000-of-annual-dividends/">How to boost your income with $50,000 of annual dividends</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                <title>How much is needed in superannuation to target a $2,500 monthly passive income?</title>
                <link>https://www.fool.com.au/2026/04/28/how-much-is-needed-in-superannuation-to-target-a-2500-monthly-passive-income/</link>
                                <pubDate>Mon, 27 Apr 2026 19:00:00 +0000</pubDate>
                <dc:creator><![CDATA[Tristan Harrison]]></dc:creator>
                		<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[editor's choice]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1837622</guid>
                                    <description><![CDATA[<p>Investing in superannuation can be a great vehicle for creating wealth and income. </p>
<p>The post <a href="https://www.fool.com.au/2026/04/28/how-much-is-needed-in-superannuation-to-target-a-2500-monthly-passive-income/">How much is needed in superannuation to target a $2,500 monthly passive income?</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p><a href="https://www.fool.com.au/definitions/superannuation/">Superannuation</a> is one of the best avenues that investors can utilise to invest and build wealth due to the lower taxation environment. It can also be a place to invest in assets that can unlock high <a href="https://www.fool.com.au/definitions/passive-income/">passive income</a>. </p>



<p>We don't necessarily need to be able t access the income immediately for it to be a good investment – it could be a great asset because of earnings stability and the more consistent returns that it delivers year to year.</p>



<p>Considering superannuation has a lower tax rate, there's less of a drag on after tax passive income returns compared to investments outside of super for a full-time working Australian.</p>



<p>Plenty of investors can invest in passive income assets through self-managed superannuation funds (SMSFs). Other super funds also offer the ability to invest in areas such as <strong>S&amp;P/ASX 300 Index </strong>(ASX: XKO) shares – there are plenty of options within that index for income.</p>



<h2 class="wp-block-heading" id="h-how-to-generate-2-500-of-monthly-passive-income-from-superannuation"><strong>How to generate $2,500 of monthly passive income from superannuation</strong><strong></strong></h2>



<p>Each investor's situation will be different, so there's no one-size-fits-all approach that I can outline to say what the net income would be. Therefore, I'll focus on the gross income, before taxes and costs.</p>



<p>Generating $2,500 of monthly passive income equates to $30,000 per year.</p>



<p>The amount required to be invested would depend on the <a href="https://www.fool.com.au/definitions/dividend-yield/">dividend yield</a> (or <a href="https://www.fool.com.au/investing-education/interest-rates/">interest rate</a>) of the investments.</p>



<p>For example, if someone had $1 million invested with a 3% dividend yield, that would generate $30,000 of annual income.</p>



<p>But, with a larger dividend yield, an investor wouldn't need as much in superannuation to create that same level of annual/monthly passive income.</p>



<p>For example, with a 4% dividend yield, an investor would need $750,000.</p>



<p>A 5% dividend yield suggests investors would need a $600,000 portfolio.</p>



<p>If the dividend yield were 6% then it would require just a $500,000 portfolio.</p>



<h2 class="wp-block-heading" id="h-where-i-d-invest-for-a-high-yield"><strong>Where I'd invest for a high yield</strong><strong></strong></h2>



<p>If I were looking for investments to unlock a high level of monthly passive income, I'd focus on businesses with a good dividend yield.</p>



<p>I'd look at names like <strong>MFF Capital Investments Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-mff/">ASX: MFF</a>), <strong>L1 Long Short Fund Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>), <strong>WCM Global Growth Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-wqg/">ASX: WQG</a>), <strong>Charter Hall Long WALE REIT </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-clw/">ASX: CLW</a>), <strong>Centuria Industrial REIT </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-cip/">ASX: CIP</a>), <strong>Rural Funds Group </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-rff/">ASX: RFF</a>), <strong>Universal Store Holdings Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-uni/">ASX: UNI</a>) and <strong>Hearts and Minds Investments Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-hm1/">ASX: HM1</a>). </p>



<p>But, I wouldn't want to forget about somewhat lower-yielding businesses that have a track record of regular dividend growth as well as attractive capital growth.</p>
<p>The post <a href="https://www.fool.com.au/2026/04/28/how-much-is-needed-in-superannuation-to-target-a-2500-monthly-passive-income/">How much is needed in superannuation to target a $2,500 monthly passive income?</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                <title>Want to build up a second income? These 2 top ASX shares are a buy</title>
                <link>https://www.fool.com.au/2026/04/26/want-to-build-up-a-second-income-these-2-top-asx-shares-are-a-buy/</link>
                                <pubDate>Sat, 25 Apr 2026 23:00:00 +0000</pubDate>
                <dc:creator><![CDATA[Tristan Harrison]]></dc:creator>
                		<category><![CDATA[Personal Finance]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1837660</guid>
                                    <description><![CDATA[<p>Building alternative income sources? I think these are great options!</p>
<p>The post <a href="https://www.fool.com.au/2026/04/26/want-to-build-up-a-second-income-these-2-top-asx-shares-are-a-buy/">Want to build up a second income? These 2 top ASX shares are a buy</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
]]></description>
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<p>I often say that ASX shares are the best place to look for <a href="https://www.fool.com.au/definitions/passive-income/">passive income</a> due to their attractive <a href="https://www.fool.com.au/definitions/dividend-yield/">dividend yields</a> as well as <a href="https://www.fool.com.au/definitions/franking-credits/">franking credits</a>. I'd use ASX shares to build up a second income.</p>



<p>Some investors may be drawn to names like <strong>Commonwealth Bank of Australia </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-cba/">ASX: CBA</a>) and <strong>BHP Group Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-bhp/">ASX: BHP</a>), but I think there are options that can provide better reliability <em>and </em>better long-term payout growth.</p>



<p>By choosing growing ASX shares, we can receive pleasing payouts in the shorter-term and see very noticeable growth over the long-term. That's why I've got my eyes on the following ASX shares for passive income.</p>



<h2 class="wp-block-heading" id="h-l1-long-short-fund-ltd-asx-lsf">L1 Long Short Fund Ltd (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>)</h2>



<p>This is a <a href="https://www.fool.com.au/definitions/lic/">listed investment company (LIC)</a>, which means its job is to invest in other assets on behalf of shareholders.</p>



<p>One of the most appealing features of this LIC is that it invests in both ASX shares and global shares, which is a pleasing level of <a href="https://www.fool.com.au/investing-education/portfolio-diversification/">diversification</a> and gives the company a very wide investment universe to hunt for opportunities.</p>



<p>Additionally, the ASX share is able to utilise a short-selling strategy which means it can make money when share prices go down.</p>



<p>It has made money from a variety of sectors including resources, industrials and communication services. It has not needed technology shares to achieve its 16% average net return per year over the five years to 31 March 2026. Past performance is not always a reliable indicator of future performance, of course.</p>



<p>With that powerful portfolio business, L1 Long Short Fund has been utilising a portion of it to deliver a growing <a href="https://www.fool.com.au/definitions/dividend/">dividend</a>. The ASX share's quarterly dividends in the <a href="https://www.fool.com.au/tickers/asx-lsf/announcements/2026-02-20/3a687563/results-for-half-year-ended-31-december-2025/">first-half of FY26</a> were up 13.6% year-over-year compared to the HY25 dividend.</p>



<p>I'm expecting it to continue hiking its quarterly dividend for the foreseeable future. At the time of writing, I think its next 12 months of quarterly dividends will translate into a grossed-up dividend yield of 5.2%, including <a href="https://www.fool.com.au/definitions/franking-credits/">franking credits</a>.</p>



<p>I think this ASX share is a great option for building a second income.</p>



<h2 class="wp-block-heading" id="h-apa-group-asx-apa">APA Group (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-apa/">ASX: APA</a>)</h2>



<p>APA is another ASX share with excellent passive income credentials. It's an energy infrastructure giant that generates significant <a href="https://www.fool.com.au/definitions/cash-flow/">cash flow</a> which funds its distributions.</p>



<p>Its key asset is the huge gas pipeline network which connects sources of supply to demand. As a sign of how important this business is to Australia, take in this fact: APA transports half of Australia's gas usage. Not many Australian businesses can claim that sort of reliance in Australia.</p>



<p>But, that's not the only asset in the APA portfolio. It also owns gas power stations, gas storage, gas processing, electricity transmission, solar power and wind farms.</p>



<p>Pleasingly, most of APA's revenue is linked to <a href="https://www.fool.com.au/definitions/inflation/">inflation</a>, giving the business a good sense of protection during periods of higher inflation, like now.</p>



<p>Its expanding portfolio of assets generates the cash flow which pays for the growing passive income. </p>



<p>APA has increased its annual distribution each year over the past 20 years thanks to its rising cash flow. It's expecting to increase its FY26 annual payout to 58 cents per security. At the time of writing, that translates into a forward distribution yield of 5.8%.</p>
<p>The post <a href="https://www.fool.com.au/2026/04/26/want-to-build-up-a-second-income-these-2-top-asx-shares-are-a-buy/">Want to build up a second income? These 2 top ASX shares are a buy</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                <title>Forget BHP shares! Buy these ASX dividend shares instead for passive income</title>
                <link>https://www.fool.com.au/2026/04/21/forget-bhp-shares-buy-these-asx-dividend-shares-instead-for-passive-income-4/</link>
                                <pubDate>Mon, 20 Apr 2026 22:00:00 +0000</pubDate>
                <dc:creator><![CDATA[Tristan Harrison]]></dc:creator>
                		<category><![CDATA[Dividend Investing]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1836778</guid>
                                    <description><![CDATA[<p>BHP is solid, but it’s not one of my preferred picks today for passive income. </p>
<p>The post <a href="https://www.fool.com.au/2026/04/21/forget-bhp-shares-buy-these-asx-dividend-shares-instead-for-passive-income-4/">Forget BHP shares! Buy these ASX dividend shares instead for passive income</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p><strong>BHP Group Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-bhp/">ASX: BHP</a>) shares are usually a solid choice for <a href="https://www.fool.com.au/definitions/passive-income/">passive income</a> and I expect that to continue to be the case. However, it's not one of the <a href="https://www.fool.com.au/investing-education/dividend-shares/">ASX dividend shares</a> that I'd choose to buy today if I were picking a handful.</p>



<p>Part of the reasoning for that caution about the <a href="https://www.fool.com.au/investing-education/top-mining-shares/">ASX mining share</a> is that, at the time of writing, it has risen more than 50% in the last year. Normally, I like to consider investing in ASX mining shares when there's weakness surrounding resource demand. That's not looking like the case with the BHP share price today.</p>



<p>Instead, there are other ASX dividend shares that could be a more consistent and potentially provide more passive income.</p>



<h2 class="wp-block-heading" id="h-l1-long-short-fund-ltd-asx-lsf">L1 Long Short Fund Ltd (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>)</h2>



<p>This business is a <a href="https://www.fool.com.au/definitions/lic/">listed investment company (LIC)</a> which usually invests in businesses that have relatively low <a href="https://www.fool.com.au/definitions/p-e-ratio/">price/earnings (P/E) ratios</a>. Of all the sectors it has generated returns from, mining shares has been the sector that has generated the most return for the strategy, of around 200%. Industrials and communication services are the other two areas that have generated a return of more than 100%.</p>



<p>The ASX dividend share also has the ability to <a href="https://www.fool.com.au/definitions/short-selling/">short-sell</a> shares that it thinks are overvalued, so it can outperform the market even if a lot of shares are going down.</p>



<p>The LIC has a goal to deliver regular <a href="https://www.fool.com.au/definitions/dividend/">dividend</a> growth for shareholders and it pays a dividend each quarter.</p>



<p>At the rate it's increasing its dividend, it seems likely that the FY26 annual dividend will be approximately 14.6 cents per share, which translates into a grossed-up <a href="https://www.fool.com.au/definitions/dividend-yield/">dividend yield</a> of around 5% at the time of writing, including <a href="https://www.fool.com.au/definitions/franking-credits/">franking credits</a>.</p>



<p>I think the LIC is more likely than BHP to deliver regular dividend growth each year, compared to the cyclical nature of resource prices.</p>



<h2 class="wp-block-heading" id="h-apa-group-asx-apa">APA Group (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-apa/">ASX: APA</a>)</h2>



<p>APA is a large energy infrastructure business that has a number of compelling assets including a huge national gas pipeline network that supplies half of the country's gas usage.</p>



<p>The business also owns gas storage, gas processing, gas-powered energy generation, solar farms, wind farms and electricity transmission.</p>



<p>By having a diversified portfolio, it can search for the best opportunities in the energy sector to generate the strongest returns.</p>



<p>The ASX dividend share pays for its distribution from the <a href="https://www.fool.com.au/definitions/cash-flow/">cash flow</a> of its energy portfolio, with underlying earnings steadily growing over the long-term.</p>



<p>APA has increased its annual distribution every year for the past 20 years, making it one of the most reliable ASX dividend shares around.</p>



<p>With how the business is regularly expanding its portfolio, I think the business still has plenty of growth years of ahead. Energy is an important aspect of Australian life, of course. </p>



<p>It's expecting to hike its FY26 annual distribution to 58 cents per security, translating into a distribution yield of 5.8%, at the time of writing.</p>
<p>The post <a href="https://www.fool.com.au/2026/04/21/forget-bhp-shares-buy-these-asx-dividend-shares-instead-for-passive-income-4/">Forget BHP shares! Buy these ASX dividend shares instead for passive income</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                <title>I invested thousands into these 2 ASX dividend shares this week</title>
                <link>https://www.fool.com.au/2026/03/28/i-invested-thousands-into-these-2-asx-dividend-shares-this-week/</link>
                                <pubDate>Fri, 27 Mar 2026 21:00:00 +0000</pubDate>
                <dc:creator><![CDATA[Tristan Harrison]]></dc:creator>
                		<category><![CDATA[Dividend Investing]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1834289</guid>
                                    <description><![CDATA[<p>I’ve been investing heavily into these two names. </p>
<p>The post <a href="https://www.fool.com.au/2026/03/28/i-invested-thousands-into-these-2-asx-dividend-shares-this-week/">I invested thousands into these 2 ASX dividend shares this week</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
]]></description>
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<p>The lower share prices we're seeing in March 2026 means opportunities galore for investors who want to buy businesses at cheaper prices, including ASX dividend shares.</p>



<p>I don't know how long the market will be feeling pessimistic about the Middle East and oil price situation – it could be days, weeks or even longer. Time will tell.</p>



<p>I prefer to buy at a better valuation while the opportunity is there, which is why I decided to pounce on the following ASX dividend at the start of this week.</p>



<h2 class="wp-block-heading" id="h-mff-capital-investments-ltd-asx-mff">MFF Capital Investments Ltd (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-mff/">ASX: MFF</a>)</h2>



<p>MFF is one of the larger <a href="https://www.fool.com.au/definitions/lic/">listed investment companies (LICs)</a> on the ASX, with a focus on quality international companies with above-average capabilities to <a href="https://www.fool.com.au/definitions/compounding/">compound</a> earnings at a good speed over time. I don't usually invest in international shares directly, so I like using this as a <a href="https://www.fool.com.au/definitions/dividend/">dividend</a>-paying option to get that exposure.</p>



<p>I think the MFF investment strategy has been very effective, as demonstrated by the fact that MFF has delivered an average total shareholder return (TSR) of 15.3% per year over the last five years, according to CMC Invest. Of course, past performance is not a guarantee of future performance.</p>



<p>One of the advantages of the LIC investment structure is that the board of directors have control over what size dividend they want to declare. The business is currently increasing its half-year payout by 1 cent per share every six months.</p>



<p>MFF plans to pay an annual dividend per share of 21 cents in FY26, which translates into a forward grossed-up <a href="https://www.fool.com.au/definitions/dividend-yield/">dividend yield</a> of 6.5%, including <a href="https://www.fool.com.au/definitions/franking-credits/">franking credits</a>, at the time of writing.</p>



<p>I thought the dip in the MFF share price was appealing, offering better underlying value and a stronger dividend yield.</p>



<p>I expect the ASX dividend share to continue increasing its payout over time and owning high-quality businesses to help deliver capital growth. &nbsp;</p>



<h2 class="wp-block-heading" id="h-l1-long-short-fund-ltd-asx-lsf">L1 Long Short Fund Ltd (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>)</h2>



<p>This is another LIC, which invests in a mixture of ASX shares and international shares, utilising a mixture of investing for the long-term and short selling.</p>



<p>I like how it has a track record of producing investment returns primarily through resource shares, industrial shares and communication shares. There are various ways to produce good returns, including in cyclical shares.</p>



<p>L1 likes to look at businesses that have lower <a href="https://www.fool.com.au/definitions/p-e-ratio/">price/earnings (P/E) ratios</a>, which I think other investors may sometimes overlook. Under-researched and unloved ASX shares can be a smart choice to deliver good returns.</p>



<p>In the last five years, the ASX dividend share has returned a total shareholder return average of 16.5% per year over the last five years, according to CMC Invest. Again, past performance is not a guarantee of future performance. &nbsp;</p>



<p>Pleasingly, the LIC has been steadily increasing its payout each year since 2021 and its latest two quarterly dividends for the FY26 half-year period was 13.6% higher than the FY25 half-year dividend. It currently has an annualised grossed-up dividend yield of 5.25%, including franking credits, at the time of writing. </p>



<p>I'm expecting the ASX dividend share to continue increasing its payout thanks to the large profit reserve it has built and the investment strategy it's using.</p>
<p>The post <a href="https://www.fool.com.au/2026/03/28/i-invested-thousands-into-these-2-asx-dividend-shares-this-week/">I invested thousands into these 2 ASX dividend shares this week</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                <title>The smartest ASX dividend stocks to buy with $10,000 right now</title>
                <link>https://www.fool.com.au/2026/03/11/the-smartest-asx-dividend-stocks-to-buy-with-10000-right-now/</link>
                                <pubDate>Tue, 10 Mar 2026 21:00:00 +0000</pubDate>
                <dc:creator><![CDATA[Tristan Harrison]]></dc:creator>
                		<category><![CDATA[Dividend Investing]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1831749</guid>
                                    <description><![CDATA[<p>These businesses look undervalued and could be compelling income buys.</p>
<p>The post <a href="https://www.fool.com.au/2026/03/11/the-smartest-asx-dividend-stocks-to-buy-with-10000-right-now/">The smartest ASX dividend stocks to buy with $10,000 right now</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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<p>The <a href="https://www.fool.com.au/investing-education/dividend-shares/">ASX dividend stock</a> section of the market is a particularly compelling place to look for opportunities right now because of the better valuations we're seeing.</p>



<p>When a share price falls, it leads to a higher dividend yield. For example, if a business with a 4% <a href="https://www.fool.com.au/definitions/dividend-yield/">dividend yield</a> sees a share price drop of 10%, the yield becomes 4.4%. There are some businesses that have fallen further than that and look like appealing ideas.</p>



<p>If I were given $10,000 to invest for <a href="https://www.fool.com.au/definitions/passive-income/">passive income</a>, these are some of the names I'd go for.</p>



<h2 class="wp-block-heading" id="h-pinnacle-investment-management-group-ltd-asx-pni">Pinnacle Investment Management Group Ltd (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-pni/">ASX: PNI</a>)</h2>



<p>It's understandable that Pinnacle has suffered a significant decline because of the type of business it is.</p>



<p>Pinnacle takes stakes in fund managers, meaning management fees (from <a href="https://www.fool.com.au/definitions/funds-under-management-fum/">funds under management (FUM)</a>) and performance fees are key aspects of Pinnacle's profit generation.</p>



<p>I don't know how Pinnacle's aggregate FUM has changed during this period, but I'm optimistic that FUM will grow in the long term, particularly from this lower starting point, thanks to regular net inflows and the long track record of funds management outfits (affiliates) like Plato, Hyperion, Firetrail and Coolabah.</p>



<p>I also believe that the ASX dividend stock could expand its fund manager portfolio with new investments in the coming years – this could be a useful time to do so.</p>



<p>Using the <a href="https://www.fool.com.au/definitions/dividend/">dividend</a> forecast on CMC Invest, it could pay a grossed-up <a href="https://www.fool.com.au/definitions/dividend-yield/">dividend yield</a> of more than 7% in FY27, at the time of writing.</p>



<h2 class="wp-block-heading" id="h-l1-long-short-fund-ltd-asx-lsf">L1 Long Short Fund Ltd (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>)</h2>



<p>L1 Long Short Fund is a <a href="https://www.fool.com.au/definitions/lic/">listed investment company (LIC)</a> that utilises long-term investing and short-selling to try to generate returns for shareholders.</p>



<p>The LIC could be a smart ASX dividend stock to buy because of its ability to make returns whether the market is going up or down.</p>



<p>The ASX dividend stock points out how, over 51 'ASX down market' months, its long-short strategy has delivered an average return of negative 0.2%, compared to an average decline of 3.1% for the <strong>S&amp;P/ASX 200 Accumulation Index </strong>(ASX: XJOA). Of course, past performance is not a guarantee of future performance.</p>



<p>Its average return in positive ASX months has been almost the same as the benchmark.</p>



<p>I like how a lot of the strategy's returns have come from sectors like materials, industrials and communication services – areas that I don't typically invest in for my own portfolio.</p>



<p>If the business continues growing its payout at the pace it has during FY26 to date, I expect the 2026 financial year grossed-up <a href="https://www.fool.com.au/definitions/dividend-yield/">dividend yield</a> could be 4.9%, including <a href="https://www.fool.com.au/definitions/franking-credits/">franking credits</a>.</p>



<h2 class="wp-block-heading" id="h-centuria-industrial-reit-asx-cip">Centuria Industrial REIT (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-cip/">ASX: CIP</a>)</h2>



<p>The final ASX dividend stock I want to highlight is this <a href="https://www.fool.com.au/definitions/real-estate-investment-trust/">real estate investment trust (REIT)</a> which owns a portfolio of quality industrial properties across metropolitan Australian locations. It owns properties like logistics and distribution facilities, refrigerated warehouses, data centres and so on.</p>



<p>The ASX dividend stock has significant rental income locked in because it has a weighted average lease expiry (WALE) of approximately seven years with high-quality tenants.</p>



<p>Centuria Industrial REIT says that its portfolio is on average 20% under-rented, so as new rental contracts come up for renewal, I'm expecting a significant boost to rental income, which could then help accelerate distribution growth. </p>



<p>The business expects to grow its rental earnings per security by up to 6% in FY26 and the distribution is guided to increase by 3%, translating into a forward distribution yield of 5.4%, at the time of writing.</p>
<p>The post <a href="https://www.fool.com.au/2026/03/11/the-smartest-asx-dividend-stocks-to-buy-with-10000-right-now/">The smartest ASX dividend stocks to buy with $10,000 right now</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                <title>Why I just invested in these 2 exciting ASX shares</title>
                <link>https://www.fool.com.au/2026/03/10/why-i-just-invested-in-these-2-exciting-asx-shares/</link>
                                <pubDate>Mon, 09 Mar 2026 23:15:00 +0000</pubDate>
                <dc:creator><![CDATA[Tristan Harrison]]></dc:creator>
                		<category><![CDATA[Share Market News]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1831569</guid>
                                    <description><![CDATA[<p>This is where I’ve been putting my investment dollars into ASX shares...</p>
<p>The post <a href="https://www.fool.com.au/2026/03/10/why-i-just-invested-in-these-2-exciting-asx-shares/">Why I just invested in these 2 exciting ASX shares</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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<p>I always like to look across the ASX share market for opportunities when there is a sell-off like we've seen in recent times.</p>



<p>In the <a href="https://www.fool.com.au/investing-education/technology/">technology</a> space, AI worries have sent some valuations by down more than 50%, which could be very enticing for brave, bargain-hunting investors. Share prices are starting to recover in the tech space.</p>



<p>It's not common for most of the share market to go down simultaneously, which is when indiscriminate selling occurs. Valuations become cheaper and too low to ignore. That's when clear opportunities can arise.</p>



<p>I put some of my investing money into the following ASX share names.</p>



<h2 class="wp-block-heading" id="h-guzman-y-gomez-ltd-asx-gyg">Guzman Y Gomez Ltd (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-gyg/">ASX: GYG</a>)</h2>



<p>Guzman Y Gomez is one of the rapidly growing quick service restaurant (QSR) operators in Australia. It already has more than 200 locations in Australia, as well as a few locations in Singapore, Japan and the US.</p>



<p>The Guzman Y Gomez share price has fallen significantly over the past six months, yet it's generating more network sales than ever.</p>



<p>Its <a href="https://www.fool.com.au/2026/02/20/guzman-y-gomez-posts-1h26-earnings/">FY26 half-year result</a> did not excite the market. Total network sales increased by 18%, operating profit (<a href="https://www.fool.com.au/definitions/ebitda/">EBITDA</a>) grew 29.6% and <a href="https://www.fool.com.au/definitions/npat/">net profit after tax (NPAT)</a> increased by 44.9%.</p>



<p>While the ASX share's overall profitability is increasing, the business is investing in expansion in the US, which is currently seeing operating losses. It's aiming to grow the sales at its US locations, which will then make them profitable and demonstrate 'proof of concept'.</p>



<p>I'm not sure what its short-term growth numbers will be like, but I like how it continues to grow its Australian and global restaurant networks. Over the long-term, it's aiming for 1,000 Guzman Y Gomez locations in Australia, which gives the business significant growth potential over the next two decades.</p>



<p>As a bonus, it's paying dividends to shareholders. So, as the company's earnings increase, its <a href="https://www.fool.com.au/definitions/dividend/">dividend</a> payouts can increase as well.</p>



<p>According to the projection on Commsec, the business could generate <a href="https://www.fool.com.au/definitions/earnings-per-share/">earnings per share (EPS)</a> of 33.7 cents in FY27 and 46.6 cents in FY28. That means the Guzman Y Gomez share price is trading at 57x FY27's estimated earnings and 41x FY28's estimated earnings, at the time of writing.&nbsp;&nbsp;</p>



<h2 class="wp-block-heading" id="h-l1-long-short-fund-ltd-asx-lsf">L1 Long Short Fund Ltd (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>)</h2>



<p>The other ASX share investment I made last week was this <a href="https://www.fool.com.au/definitions/lic/">listed investment company (LIC)</a>. It invests in a mixture of ASX shares and international shares on behalf of shareholders.</p>



<p>One of the reasons I like it is because it utilises both long-term investing and <a href="https://www.fool.com.au/definitions/short-selling/">short-selling</a> to generate investment returns, allowing it to create positive portfolio profits in all market conditions.</p>



<p>At a time of elevated volatility, there's an opportunity to pick up bargains in the local and global market. I like how the L1 team invest, particularly with the focus on businesses with lower <a href="https://www.fool.com.au/definitions/p-e-ratio/">price/earnings (P/E) ratios</a>.</p>



<p>In its latest monthly update, it said it's seeing opportunities in areas like infrastructure, golds, US cyclicals, uranium and 'quality value'.</p>



<p>L1 said:</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p>…we are finding more compelling opportunities in 'Value' stocks. We believe low P/E stocks will strongly outperform high P/E stocks (in general) over the coming 1-2 years, which the portfolio is well positioned to benefit from. </p>
</blockquote>



<p>As a bonus, the ASX share is steadily increasing its dividend. I'm currently predicting the grossed-up dividend yield for FY26 could be 4.75%, including <a href="https://www.fool.com.au/definitions/franking-credits/">franking credits</a>, at the time of writing.</p>
<p>The post <a href="https://www.fool.com.au/2026/03/10/why-i-just-invested-in-these-2-exciting-asx-shares/">Why I just invested in these 2 exciting ASX shares</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                <title>An ASX dividend stalwart every Australian should consider buying</title>
                <link>https://www.fool.com.au/2026/02/26/an-asx-dividend-stalwart-every-australian-should-consider-buying-9/</link>
                                <pubDate>Thu, 26 Feb 2026 00:00:00 +0000</pubDate>
                <dc:creator><![CDATA[Tristan Harrison]]></dc:creator>
                		<category><![CDATA[Dividend Investing]]></category>
		<category><![CDATA[Opinions]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1830213</guid>
                                    <description><![CDATA[<p>I’m backing this business for excellent dividend income in the coming years. </p>
<p>The post <a href="https://www.fool.com.au/2026/02/26/an-asx-dividend-stalwart-every-australian-should-consider-buying-9/">An ASX dividend stalwart every Australian should consider buying</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p>There are a few <a href="https://www.fool.com.au/investing-education/dividend-shares/">ASX dividend stalwarts</a> that I'd suggest putting in a <a href="https://www.fool.com.au/definitions/passive-income/">passive income</a>-focused portfolio. One of those is the business <strong>L1 Long Short Fund Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>).</p>



<p>L1 Long Short Fund Ltd is a <a href="https://www.fool.com.au/definitions/lic/">listed investment company (LIC)</a> that is managed by the fund manager <strong>L1 Group Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-l1g/">ASX: L1G</a>). LICs generate accounting profits for their financials by making investment returns from a portfolio of shares.</p>



<p>L1 Long Short Fund invests in both ASX shares and international shares, while utilising both long-term investing and <a href="https://www.fool.com.au/definitions/short-selling/">short-selling</a> strategies. Short-selling means betting that a share price will go down.</p>



<p>Using that strategy, the ASX dividend stalwart is able to generate returns regardless of whether the market is going up or down.</p>



<h2 class="wp-block-heading" id="h-excellent-investment-returns"><strong>Excellent investment returns</strong><strong></strong></h2>



<p>Past returns are not a guarantee of future returns, of course. But, at the same time, an investment manager with a history of strong outperformance is worth paying attention to.</p>



<p>I'd describe L1 Long Short Fund as being a contrarian investor with a willingness to invest in businesses with a lower <a href="https://www.fool.com.au/definitions/p-e-ratio/">price/earnings (P/E) ratios</a> accompanied by confidence of solid earnings growth.</p>



<p>As of January 2026, the sectors that had delivered the most returns using this investment strategy were (in order of biggest returns): <a href="https://www.fool.com.au/investing-education/top-mining-shares/">ASX mining shares</a>, then industrials, <a href="https://www.fool.com.au/investing-education/telecommunications-shares/">communication services</a>, utilities and <a href="https://www.fool.com.au/investing-education/financial-shares/">financials</a>. Considering the recent performance of many <a href="https://www.fool.com.au/investing-education/technology/">tech</a> names, it's probably a good thing the LIC has largely avoided long-term investing in the technology sector.</p>



<p>Giving its latest view on the ASX share market and global stock market, L1 wrote in the January 2026 update:</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p>We believe the Australian equity index is relatively fully valued, with several large cap stocks, particularly within the ASX20, trading well above historical multiples and global peers. Encouragingly, we are continuing to find numerous undervalued stocks, where we see a far more compelling combination of strong earnings growth, shareholder-friendly management, conservative <a href="https://www.fool.com.au/investing-education/understanding-balance-sheets-and-pl-statements/">balance sheets</a> and significant valuation support.</p>



<p>We continue to believe that infrastructure, gold, U.S. cyclicals, uranium and 'quality value' stocks provide some of the best opportunities globally. Given the enormous outperformance of high P/E stocks in recent years and over the past decade, we are finding more compelling opportunities in 'Value' stocks. We believe low P/E stocks will strongly outperform high P/E stocks (in general) over the coming 1-2 years, which the portfolio is well positioned to benefit from.</p>
</blockquote>



<p>I like getting exposure to a range of investments to generate my investment returns, and I like that this ASX dividend stalwart looks at a variety of sectors that may not necessarily be my own preferred hunting ground.</p>



<p>Since inception in April 2018 to January 2026, the LIC's portfolio delivered an average return per year of 15.1%. Over the seven years to January 2026, it returned an average of 21.5%. I'm not expecting the returns to be that strong in the years ahead, but it shows how well the LIC has been able to perform.</p>



<p>These returns have funded pleasing dividends.</p>



<h2 class="wp-block-heading" id="h-asx-dividend-stalwart-credentials"><strong>ASX dividend stalwart credentials</strong><strong></strong></h2>



<p>It has increased its half-year dividend per share each year since FY21 and it's aiming to increase its dividend each year for investors. It has already built up a large accounting profit reserve that can fund rising dividends for years to come.</p>



<p>The business recently switched to paying quarterly dividends to investors, providing more frequent cash flow for bank accounts.</p>



<p>Its combined FY26 first quarter and second quarter dividend (totalling 7.1 cents per share) is 13.6% higher than the FY25 first-half dividend. If the business continues increasing its FY26 quarterly dividend by 0.1 cents per share in the next two quarters, its FY26 annual payout will be 14.6 cents per share, translating into a grossed-up dividend yield of 4.7%, including <a href="https://www.fool.com.au/definitions/franking-credits/">franking credits</a>. </p>



<p>That's not a huge starting dividend yield, but I think the payout will progressively grow from here, making it a very appealing ASX dividend stalwart for the long-term.</p>
<p>The post <a href="https://www.fool.com.au/2026/02/26/an-asx-dividend-stalwart-every-australian-should-consider-buying-9/">An ASX dividend stalwart every Australian should consider buying</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                <title>This ASX share is up 40% in 6 months and I want to buy it</title>
                <link>https://www.fool.com.au/2026/02/17/this-asx-share-is-up-40-in-6-months-and-i-want-to-buy-it/</link>
                                <pubDate>Tue, 17 Feb 2026 04:43:22 +0000</pubDate>
                <dc:creator><![CDATA[Sebastian Bowen]]></dc:creator>
                		<category><![CDATA[Opinions]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1828789</guid>
                                    <description><![CDATA[<p>It's hard to say no when the returns are this good...</p>
<p>The post <a href="https://www.fool.com.au/2026/02/17/this-asx-share-is-up-40-in-6-months-and-i-want-to-buy-it/">This ASX share is up 40% in 6 months and I want to buy it</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                                                                            <content:encoded><![CDATA[<p>Normally, I don't like buying ASX shares that are up 40% in six months. As a <a href="https://www.fool.com.au/definitions/value-investing/">value investor</a> at heart, I try (with varying degrees of success) to follow Warren Buffett's playbook of buying high-quality companies at cheap prices.</p>
<p>However, I can make exceptions. And I am seriously considering making one when it comes to the<strong> L1 Global Llog Short Fund Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-gls/">ASX: GLS</a>).</p>
<p>The L1 Global Long Short Fund is a <a href="https://www.fool.com.au/definitions/lic/">listed investment company (LIC)</a> that has quite an interesting history. In fact, not too long ago, it had a different name and a different manager. Yep, the L1 Global Fund was formerly known as Platinum Capital Ltd. However, the manager of this LIC had been struggling for a number of years, and decided to accept a takeover offer from <strong>L1 Group Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-l1g/">ASX: L1G</a>). Upon the completion of this takeover, the L1 Global Long Short Fund was born.</p>
<p>L1 was already famous for its<strong> L1 Long Short Fund</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>) LIC, which, despite a rocky start, has gone on to become one of the ASX's best-performing managed investments. That fund has an ASX-focused mandate, though. L1 wanted to build a fund that was unconstrained in its scope, and we have it here on the ASX today with the L1 Global Log Short Fund.</p>
<p>Like its locally-focused Long Short Fund, the L1 Global Fund employs both traditional 'long' investing alongside <a href="https://www.fool.com.au/definitions/short-selling/">short-selling</a> in order to make returns. This makes it quite unique on the ASX, which only has a handful of funds that employ both strategies. Whilst risky, using both can enable this LIC to profit in both bull and bear markets.</p>
<h2>Is this ASX share a no-brainer buy in 2026?</h2>
<p>Now, the L1 Global Long Short Fundhas several traits that would normally put me off buying it. For one, it uses short-selling, which is a tactic I don't usually like to see in my investments. For another, it charges a steep management fee of 1.44% per annum (plus a performance fee).</p>
<p>However, I can't ignore the numbers. As<a href="https://www.fool.com.au/2025/12/09/this-new-asx-stock-has-returned-70-since-january/"> we covered a few months ago</a>, L1's team trialled the strategy that it now uses for the Global Long Short Fund. This trial saw L1 record a return of 67.5% between January and October. Since the start of October, this LIC has risen by almost 35%.</p>
<p>If this breakneck performance can be maintained over a number of years and all economic and market cycles, it could mean L1 Global Long Short Fund is one of the best shares on the ASX.</p>
<p>So I'll be keeping a close eye on this investment. If management keeps making the right calls, I might have to buy some shares of my own.</p>
<p>The post <a href="https://www.fool.com.au/2026/02/17/this-asx-share-is-up-40-in-6-months-and-i-want-to-buy-it/">This ASX share is up 40% in 6 months and I want to buy it</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                <title>Forget BHP shares! Buy these ASX dividend shares instead for passive income</title>
                <link>https://www.fool.com.au/2026/02/11/forget-bhp-shares-buy-these-asx-dividend-shares-instead-for-passive-income-3/</link>
                                <pubDate>Wed, 11 Feb 2026 00:00:00 +0000</pubDate>
                <dc:creator><![CDATA[Tristan Harrison]]></dc:creator>
                		<category><![CDATA[Dividend Investing]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1827615</guid>
                                    <description><![CDATA[<p>BHP isn’t the first dividend-paying business I’d buy. </p>
<p>The post <a href="https://www.fool.com.au/2026/02/11/forget-bhp-shares-buy-these-asx-dividend-shares-instead-for-passive-income-3/">Forget BHP shares! Buy these ASX dividend shares instead for passive income</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
]]></description>
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<p><strong>BHP Group Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-bhp/">ASX: BHP</a>) shares have been a very effective <a href="https://www.fool.com.au/investing-education/dividend-shares/">ASX dividend share</a> to invest for <a href="https://www.fool.com.au/definitions/passive-income/">passive income</a> at certain times over the last few years. When the <a href="https://www.fool.com.au/investing-education/top-mining-shares/">ASX mining share</a> declines in value, it can boost the potential future <a href="https://www.fool.com.au/definitions/dividend-yield/">dividend yield</a>.</p>



<p>The business is exposed to a number of different commodities including iron ore, copper and coal. The BHP share price has risen by more than 20% in the past six months, which has been a headwind for a high dividend yield.</p>



<p>However, I'm not sure this is the best time to invest because of how strongly the ASX mining share has performed in recent times. Instead, I think the following ASX dividend shares could be a better buy.</p>



<h2 class="wp-block-heading" id="h-l1-long-short-fund-ltd-asx-lsf">L1 Long Short Fund Ltd (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>)</h2>



<p>This is a <a href="https://www.fool.com.au/definitions/lic/">listed investment company (LIC)</a>. Its purpose is to invest in a mixture of ASX and global shares. It can utilise short selling as part of its strategy.</p>



<p>It likes to look at areas of the share market with a lower <a href="https://www.fool.com.au/definitions/p-e-ratio/">price/earnings (P/E) ratio</a> for opportunities. It thinks "low P/E stocks will strongly outperform high P/E stocks (in general) over the coming 1-2 years".</p>



<p>Since the strategy's inception, materials (mining) has been the best-performing sector for the portfolio. So, over time, the LIC has been an effective way to make investment returns from the mining sector with diversified exposure, not just by owning BHP shares.</p>



<p>Since the LIC's beginning in April 2018, its overall portfolio has returned an average of 15.1% per year. This has helped the ASX dividend share deliver investors a growing dividend since it started paying one in 2021.</p>



<p>It has started paying a quarterly dividend, giving investors more regular <a href="https://www.fool.com.au/definitions/cash-flow/">cash flow</a>. The annualised dividend of 14 cents per share translates into a grossed-up dividend yield of 4.6%, including <a href="https://www.fool.com.au/definitions/franking-credits/">franking credits</a>.</p>



<p>The business is rapidly building its profit reserve, which can help fund even larger payouts.</p>



<h2 class="wp-block-heading" id="h-apa-group-asx-apa">APA Group (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-apa/">ASX: APA</a>)</h2>



<p>BHP is increasingly putting its focus on copper, and that's useful for the <a href="https://www.fool.com.au/investing-education/portfolio-diversification/">diversification</a> of its earnings. But, it's still quite reliant on its iron ore earnings to deliver good <a href="https://www.fool.com.au/definitions/passive-income/">passive income</a> for investors. This means it needs China to continue buying vast quantities of the commodity (and paying a good price for it).</p>



<p>APA's earnings are much more consistent – it owns a vast portfolio of energy assets, including a massive national network of gas pipelines. It reportedly transports half of the country's usage.</p>



<p>The business also owns solar farms, wind farms, large batteries and electricity transmission assets connecting different states' energy grids. As APA continues to invest in its growing portfolio of various energy assets, it is building its cash flow potential to fund larger payouts.</p>



<p>Pleasingly, a significant majority of APA's revenue is linked to <a href="https://www.fool.com.au/definitions/inflation/">inflation</a>, so the business has benefited from the period of higher inflation. </p>



<p>On the distribution side of things, the business has grown its annual payout every year since 2004 and it's expecting to grow the passive income again in FY26 to 58 cents per security. At the time of writing, that translates into a forward distribution yield of 6.6%.</p>
<p>The post <a href="https://www.fool.com.au/2026/02/11/forget-bhp-shares-buy-these-asx-dividend-shares-instead-for-passive-income-3/">Forget BHP shares! Buy these ASX dividend shares instead for passive income</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                <title>Don&#039;t want to rely on your wage? Build a second income with these ASX shares</title>
                <link>https://www.fool.com.au/2026/02/01/dont-want-to-rely-on-your-wage-build-a-second-income-with-these-asx-shares-2/</link>
                                <pubDate>Sat, 31 Jan 2026 22:00:00 +0000</pubDate>
                <dc:creator><![CDATA[Tristan Harrison]]></dc:creator>
                		<category><![CDATA[Dividend Investing]]></category>
		<category><![CDATA[Opinions]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1825811</guid>
                                    <description><![CDATA[<p>I rate these ASX shares as top ideas for passive dividend income. </p>
<p>The post <a href="https://www.fool.com.au/2026/02/01/dont-want-to-rely-on-your-wage-build-a-second-income-with-these-asx-shares-2/">Don&#039;t want to rely on your wage? Build a second income with these ASX shares</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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<p>Building a second income with ASX shares could be exactly what many Aussies are looking to do.</p>



<p>We can only generate so much in earnings when we work for money. It's owning assets that help unlock that next phase of income creation.</p>



<p>I like to think of the ASX share market as the ASX <em>business </em>market – we can invest in great companies that are doing their best to make money for us, including paying <a href="https://www.fool.com.au/definitions/dividend/">dividends</a>.</p>



<p>I'm using the three names below to build a second income for my own finances, and I want to highlight them for anyone wanting to build a second income with dividends.</p>



<h2 class="wp-block-heading" id="h-mff-capital-investments-ltd-asx-mff">MFF Capital Investments Ltd (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-mff/">ASX: MFF</a>)</h2>



<p>There are not many ASX investments that offer investors exposure to some of the world's best businesses <em>and</em> have a good <a href="https://www.fool.com.au/definitions/dividend-yield/">dividend yield</a>.</p>



<p>Companies are allowed to declare the size of dividend they want to, as long as they have the accounting profit reserve for it. That's one of the main reasons why investment businesses – namely <a href="https://www.fool.com.au/definitions/lic/">listed investment companies (LICs)</a> – can provide such consistent <a href="https://www.fool.com.au/definitions/passive-income/">passive income</a> for investors. The years of good investment profits can pay for ongoing dividends even when share markets are weak.</p>



<p>MFF has grown its normal annual dividend per share every year over the past several years. It owns some of the best global tech stocks, payment giants and other businesses with compelling futures in its portfolio.</p>



<p>I like the flexibility that the ASX share can invest in any business on the ASX or globally, which should help create good investment returns. I'm expecting its grossed-up <a href="https://www.fool.com.au/definitions/dividend-yield/">dividend yield</a> for FY26 to be at least 6%, including <a href="https://www.fool.com.au/definitions/franking-credits/">franking credits</a>, at the time of writing's valuation. That's a great start for a second income.</p>



<h2 class="wp-block-heading" id="h-l1-long-short-fund-ltd-asx-lsf">L1 Long Short Fund Ltd (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>)</h2>



<p>This is another LIC – it invests in both ASX shares and global shares, utilising normal investing and <a href="https://www.fool.com.au/definitions/short-selling/">short-selling</a> strategies. L1 Long Short Fund typically looks to invest in undervalued businesses with relatively low <a href="https://www.fool.com.au/definitions/p-e-ratio/">price/earnings (P/E) ratios</a>.</p>



<p>Past performance is not a guarantee of future performance. I think that disclaimer is particularly relevant when it comes to looking at the LIC's investment performance. Over the past five years, its portfolio's average annual net return was 18%.</p>



<p>That level of return is enough for the ASX share to provide growing dividends <em>and </em>capital growth.</p>



<p>Its payout has increased each year since 2021 and its latest quarterly dividend translates into a grossed-up dividend yield of 4.6%, including franking credits, at the time of writing. That's a solid yield for building a second income.</p>



<h2 class="wp-block-heading" id="h-washington-h-soul-pattinson-and-co-ltd-asx-sol">Washington H. Soul Pattinson and Co. Ltd (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-sol/">ASX: SOL</a>)</h2>



<p>This business isn't strictly a LIC, but it is a listed company that generates a lot of earnings through investing.</p>



<p>It's an investment house that invests in a wide range of listed businesses, as well as owning private businesses.</p>



<p>Soul Patts has private investments in industrial property, building products, agriculture, swimming schools, electrification, retirement living, water rights and financial services.</p>



<p>The company has investments in ASX shares like <strong>New Hope Corporation Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-nhc/">ASX: NHC</a>), <strong>Tuas Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-tua/">ASX: TUA</a>), <strong>TPG Telecom Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-tpg/">ASX: TPG</a>), <strong>Electro Optic Systems Holdings Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-eos/">ASX: EOS</a>), <strong>Aeris Resources Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-ais/">ASX: AIS</a>) and <strong>Nexgen Energy (Canada) CDI</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-nxg/">ASX: NXG</a>).</p>



<p>By utilising the <a href="https://www.fool.com.au/definitions/cash-flow/">cash flow</a> of the dividend payments from its investment portfolio, Soul Patts is able to pay a growing dividend and invest in new opportunities for the portfolio.</p>



<p>Soul Patts has increased its annual dividend every year since 1998. That's a wonderful record and the company wants to keep going for the foreseeable future, making it a wonderful pick for a second income. </p>



<p>I predict its grossed-up dividend yield in FY26 will be at least 4%, including franking credits, at the time of writing.</p>
<p>The post <a href="https://www.fool.com.au/2026/02/01/dont-want-to-rely-on-your-wage-build-a-second-income-with-these-asx-shares-2/">Don&#039;t want to rely on your wage? Build a second income with these ASX shares</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                <title>Here&#039;s how you could turn the stock market into a $1,000 monthly passive income machine</title>
                <link>https://www.fool.com.au/2026/01/26/heres-how-you-could-turn-the-stock-market-into-a-1000-monthly-passive-income-machine/</link>
                                <pubDate>Sun, 25 Jan 2026 20:08:00 +0000</pubDate>
                <dc:creator><![CDATA[Tristan Harrison]]></dc:creator>
                		<category><![CDATA[Dividend Investing]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1825323</guid>
                                    <description><![CDATA[<p>Passive income can flow from the stock market…</p>
<p>The post <a href="https://www.fool.com.au/2026/01/26/heres-how-you-could-turn-the-stock-market-into-a-1000-monthly-passive-income-machine/">Here&#039;s how you could turn the stock market into a $1,000 monthly passive income machine</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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<p>The ASX stock market can be a gateway to unlock a significant monthly <a href="https://www.fool.com.au/definitions/passive-income/">passive income</a> for investors.</p>



<p><span style="box-sizing: border-box; margin: 0px; padding: 0px;">Many investments available on the ASX (and internationally) pay <a href="https://www.fool.com.au/definitions/dividend/" target="_blank">dividends,</a></span> as they share profits with shareholders each year. With shares, you don't need to deal with tenants, leasing agents or repairs.</p>



<p>It's easy to take a back seat with shares; that's why I think it's the best form of <em>passive</em> income.</p>



<p>Businesses aren't like term deposits – they can grow earnings, increase dividends, and increase share prices. Some businesses on the stock market can provide a better yield than savings accounts straight away.</p>



<h2 class="wp-block-heading" id="h-the-power-of-a-dividend-yield"><strong>The power of a dividend yield</strong><strong></strong></h2>



<p>If we put $1,000 into a bank account earning 4% interest, we'd expect to earn $40 in annual income.</p>



<p>Investing in stocks comes with different dividend yields. The higher the dividend yield, the more money investors will get. The highest yields (of 10% or more) aren't necessarily safer, though.</p>



<p><strong>Telstra Group Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-tls/">ASX: TLS</a>) is an example of a good <a href="https://www.fool.com.au/investing-education/dividend-shares/">ASX dividend share</a>. Telstra's annual payout last year was 19 cents per share, which translates into a 4% cash <a href="https://www.fool.com.au/definitions/dividend-yield/">dividend yield</a>. <a href="https://www.fool.com.au/definitions/franking-credits/">Franking credits</a> boost the after-tax effect of receiving the dividend (often leading to tax refunds). Including franking credits, Telstra's FY25 payout equated to a grossed-up dividend yield of 5.75%.</p>



<p>At the current Telstra share price, a $1,000 investment would yield $57.50 in passive income in FY25.</p>



<p>I think there's a good chance Telstra will increase its payout to 20 cents per share in FY26, which would yield just over $60 of grossed-up passive income (including franking credits). That's an increase of around 5%.</p>



<p>Savings in the bank account don't grow like that. You can leave the cash in there (and not utilise the interest), but investors can also reinvest their dividends to accelerate wealth-building.</p>



<p>It also shows how making a $1,000 investment can snowball into more passive income for investors.</p>



<p>There's more to the stock market than just Telstra shares, of course.</p>



<h2 class="wp-block-heading" id="h-the-stock-market-is-a-money-making-machine-for-passive-income"><strong>The stock market is a money-making machine for passive income </strong><strong></strong></h2>



<p>Some ASX-listed businesses have a record of growing their dividends every year for 20 years in a row, like <strong>Washington H. Soul Pattinson and Co. Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-sol/">ASX: SOL</a>) and <strong>APA Group </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-apa/">ASX: APA</a>).</p>



<p>There are some investments with <em>very</em> high dividend yields (over 9%) that haven't given any payout reductions (though payout growth is slow), such as <strong>Shaver Shop Group Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-ssg/">ASX: SSG</a>) and <strong>WAM Microcap Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-wmi/">ASX: WMI</a>).</p>



<p>There are a number of other ASX dividend shares that are appealing as passive income options like <strong>MFF Capital Investments Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-mff/">ASX: MFF</a>), <strong>L1 Long Short Fund Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>), <strong>Pinnacle Investment Management Group Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-pni/">ASX: PNI</a>), <strong>Universal Store Holdings Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-uni/">ASX: UNI</a>), <strong>Charter Hall Long WALE REIT</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-clw/">ASX: CLW</a>), <strong>Centuria Industrial REIT</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-cip/">ASX: CIP</a>), <strong>Rural Funds Group</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-rff/">ASX: RFF</a>) and <strong>WCM Quality Global Growth Fund</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-wcmq/">ASX: WCMQ</a>).</p>



<p>Many of the above investments offer a dividend yield of 5% or more, which is appealing in my book.</p>



<p>Receiving $12,000 annually (or $1,000 per month) at a dividend yield of 5% would require a $240,000 portfolio. </p>



<p>That portfolio goal may sound like a lot, but if an investor invested $1,500 per month and their portfolio returned an average of 10% per year (the long-term average of the share market), it would only take around nine years to reach $240,000. It just takes investing in the right stocks.</p>
<p>The post <a href="https://www.fool.com.au/2026/01/26/heres-how-you-could-turn-the-stock-market-into-a-1000-monthly-passive-income-machine/">Here&#039;s how you could turn the stock market into a $1,000 monthly passive income machine</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                <title>Forget BHP shares! Buy these ASX dividend shares instead for passive income</title>
                <link>https://www.fool.com.au/2026/01/25/forget-bhp-shares-buy-these-asx-dividend-shares-instead-for-passive-income-2/</link>
                                <pubDate>Sat, 24 Jan 2026 20:30:00 +0000</pubDate>
                <dc:creator><![CDATA[Tristan Harrison]]></dc:creator>
                		<category><![CDATA[Dividend Investing]]></category>
		<category><![CDATA[Opinions]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1825170</guid>
                                    <description><![CDATA[<p>I’d rather dig into these shares than BHP. Here’s why. </p>
<p>The post <a href="https://www.fool.com.au/2026/01/25/forget-bhp-shares-buy-these-asx-dividend-shares-instead-for-passive-income-2/">Forget BHP shares! Buy these ASX dividend shares instead for passive income</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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<p><strong>BHP Group Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-bhp/">ASX: BHP</a>) shares have been an impressive <a href="https://www.fool.com.au/definitions/passive-income/">passive income</a> pick over the last century, but I wouldn't call them a wonderful buy <em>today</em> as an <a href="https://www.fool.com.au/investing-education/dividend-shares/">ASX dividend share</a>. </p>



<p>The <a href="https://www.fool.com.au/investing-education/top-mining-shares/">ASX mining share</a> has gone on an impressive run in the last few months, as the chart below shows. It's up around 20% since the November 2025 low.</p>


<div class="tmf-chart-singleseries" data-title="BHP Group Price" data-ticker="ASX:BHP" data-range="1y" data-start-date="2025-10-01" data-end-date="2026-01-22" data-comparison-value=""></div>



<p>The higher a share price goes, the lower it pushes the <a href="https://www.fool.com.au/definitions/dividend-yield/">dividend yield</a>. I also think it's wise to be wary of buying a commodity business when the resource price has gone on a strong run. </p>



<p>I don't think it's the best time to buy BHP shares; I'd rather buy the ones below.</p>



<h2 class="wp-block-heading" id="h-wesfarmers-ltd-asx-wes">Wesfarmers Ltd (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-wes/">ASX: WES</a>)</h2>



<p>If I were to pick one of the biggest ASX companies for dividends, I'd choose Wesfarmers over BHP. Neither of them is cheap, but I think Wesfarmers has a much higher likelihood of growing earnings sustainably after FY26.</p>



<p>Wesfarmers is the owner of a number of Australia's leading retail businesses, like Bunnings, Kmart, Officeworks, and Priceline. It's not the most defensive business on the ASX, but Wesfarmers is impressive with a <a href="https://www.fool.com.au/definitions/return-on-equity-roe/">return on equity (ROE)</a> of more than 30%, showing it's very profitable for the level of shareholder money that it keeps and hasn't paid out as a dividend.</p>



<p>Kmart Group and Bunnings Group are the two key leaders of generating profit for the business, which is great because they both achieve returns on capital (ROC) of around 70%. There are not many businesses on the ASX that can compare to that.</p>



<p>Wesfarmers continues to find new places to invest for long-term earnings growth, making it a very compelling business. Initiatives include healthcare expansion, selling Anko products internationally, product expansion in Bunnings, and lithium mining.</p>



<p>As a bonus, the business has a goal of growing its <a href="https://www.fool.com.au/definitions/dividend/">dividend</a> over time in line with earnings growth. The forecast on CommSec suggests a grossed-up <a href="https://www.fool.com.au/definitions/dividend-yield/">dividend yield</a> of 3.7%, including <a href="https://www.fool.com.au/definitions/franking-credits/">franking credits</a>. </p>



<h2 class="wp-block-heading" id="h-l1-long-short-fund-ltd-asx-lsf">L1 Long Short Fund Ltd (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>)</h2>



<p>A listed <a href="https://www.fool.com.au/definitions/lic/">investment company (LIC)</a> structure is very helpful for delivering stable and rising dividends because of how companies can declare the size of dividends (if any) they want to pay. <a href="https://www.fool.com.au/definitions/exchange-traded-fund/">Exchange-traded funds (ETFs)</a> have to pass through the dividends they receive (which are usually quite low). </p>



<p>If a LIC is good at making investment profits, it can build a profit reserve while still delivering passive income for shareholders.</p>



<p>One of the most effective LICs at delivering returns over the past has been the L1 Long Short Fund. Being able to make returns on some shares that go up and also make returns on some stocks going down (<a href="https://www.fool.com.au/definitions/short-selling/">short selling</a>) is a pleasing combination.</p>



<p>In the seven years to December 2025, the ASX dividend share's portfolio has delivered a net return of an average of 20.7% per year over the prior seven years. Past performance is definitely not a guarantee of future returns with a return of that size.</p>



<p>The business has steadily grown its dividend payout each year since 2021. It recently switched to quarterly dividend payments, making it more attractive for regular <a href="https://www.fool.com.au/definitions/cash-flow/">cash flow</a>. </p>



<p>Its current annualised payout of 14 cents per share translates into a grossed-up dividend yield of 4.7%, including franking credits. That would be a year-over-year increase of around 10% of the payout.</p>
<p>The post <a href="https://www.fool.com.au/2026/01/25/forget-bhp-shares-buy-these-asx-dividend-shares-instead-for-passive-income-2/">Forget BHP shares! Buy these ASX dividend shares instead for passive income</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                <title>If a 25-year-old invests $1,250 a month in ASX stocks, here&#039;s what they could have by retirement</title>
                <link>https://www.fool.com.au/2026/01/24/if-a-25-year-old-invests-1250-a-month-in-asx-stocks-heres-what-they-could-have-by-retirement/</link>
                                <pubDate>Fri, 23 Jan 2026 19:00:00 +0000</pubDate>
                <dc:creator><![CDATA[Tristan Harrison]]></dc:creator>
                		<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[editor's choice]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1824604</guid>
                                    <description><![CDATA[<p>This could be the right path to build long-term wealth. </p>
<p>The post <a href="https://www.fool.com.au/2026/01/24/if-a-25-year-old-invests-1250-a-month-in-asx-stocks-heres-what-they-could-have-by-retirement/">If a 25-year-old invests $1,250 a month in ASX stocks, here&#039;s what they could have by retirement</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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<p>Building wealth through ASX stocks could be one of the best choices because of the power of <a href="https://www.fool.com.au/definitions/compounding/">compounding</a> and profit growth.</p>



<p>ASX stocks can provide both capital growth and <a href="https://www.fool.com.au/definitions/dividend/">dividends</a> (<a href="https://www.fool.com.au/definitions/passive-income/">passive income</a>). That sounds good to me!</p>



<p>If someone were to start investing at the age of 25, they could grow their wealth enormously by the time they wanted to retire.</p>



<p>Time will tell what the usual retirement age will be in 40 or so years. It could be 65, 70 or even older. But, I'm going to show how a 25-year-old investor could grow their wealth over the next four decades.</p>



<h2 class="wp-block-heading" id="h-compounding-potential"><strong>Compounding potential</strong><strong></strong></h2>



<p>Every household's finances are different, so I can't say for sure what level of savings someone would be able to unlock for investing. What I do know, is that we want to get to a place where we are spending less than our income so we have money left over to invest.</p>



<p>When we're able to create savings most months (or every month), then we can put that money towards investing into the ASX stock market.</p>



<p>Investing in shares is simple, comes with a lot less paperwork and costs than property, doesn't require debt and can deliver great returns in we invest in the right area.</p>



<p>Over the ultra-long-term, shares have returned an average of around 10%. At that rate, the value of the shares would double in just eight years.</p>



<p>Let's imagine a 25-year-old was able to invest $1,250 each month on average into ASX stocks. That would become $6.64 million after 40 years, with around $6 million of that being generated by returns and the rest being from the monthly deposits.</p>



<p>I'm not sure what portfolio size will be needed to reach a comfortable retirement, but $6 million may be more than enough.</p>



<p>Someone may not want to work as long as that.</p>



<p>After 30 years of following that strategy, the portfolio would be worth $2.47 million.</p>



<p>After 20 years it'd be worth $859,000, which may not quite be enough.</p>



<p>Therefore, it could take less than 30 years for someone to build a substantial wealth fund.</p>



<h2 class="wp-block-heading" id="h-which-asx-stocks-to-invest-in"><strong>Which ASX stocks to invest in?</strong><strong></strong></h2>



<p>The easiest way to invest could be <a href="https://www.fool.com.au/definitions/exchange-traded-fund/">exchange-traded funds (ETFs)</a> that provide diversified exposure to the share market such as <strong>BetaShares Australia 200 ETF</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-a200/">ASX: A200</a>) and <strong>Vanguard MSCI Index International Shares ETF</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-vgs/">ASX: VGS</a>).</p>



<p><a href="https://www.fool.com.au/definitions/lic/">Listed investment companies (LIC)</a> such as <strong>Australian Foundation Investment Co Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-afi/">ASX: AFI</a>), <strong>WAM Microcap Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-wmi/">ASX: WMI</a>) and <strong>L1 Long Short Fund Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>) could be compelling options. </p>



<p>Or, some of country's best <a href="https://www.fool.com.au/investing-education/growth-shares-2/">ASX growth shares</a> such as <strong>Temple &amp; Webster Group Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-tpw/">ASX: TPW</a>), <strong>Tuas Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-tua/">ASX: TUA</a>) or <strong>TechnologyOne Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-tne/">ASX: TNE</a>) could be compelling picks.</p>
<p>The post <a href="https://www.fool.com.au/2026/01/24/if-a-25-year-old-invests-1250-a-month-in-asx-stocks-heres-what-they-could-have-by-retirement/">If a 25-year-old invests $1,250 a month in ASX stocks, here&#039;s what they could have by retirement</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                <title>How I&#039;d invest monthly savings to generate over $50,000 passive income</title>
                <link>https://www.fool.com.au/2026/01/22/how-id-invest-monthly-savings-to-generate-over-50000-passive-income/</link>
                                <pubDate>Wed, 21 Jan 2026 22:38:12 +0000</pubDate>
                <dc:creator><![CDATA[Leigh Gant]]></dc:creator>
                		<category><![CDATA[Dividend Investing]]></category>
		<category><![CDATA[Share Market News]]></category>
		<category><![CDATA[editor's choice]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1825031</guid>
                                    <description><![CDATA[<p>This is how modest monthly investing could turn into serious passive income.</p>
<p>The post <a href="https://www.fool.com.au/2026/01/22/how-id-invest-monthly-savings-to-generate-over-50000-passive-income/">How I&#039;d invest monthly savings to generate over $50,000 passive income</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p>Building a meaningful passive <a href="https://www.fool.com.au/investing-education/strategies/income/">income</a> doesn't usually happen overnight. Yet with time, discipline, and the power of <a href="https://www.fool.com.au/definitions/compounding/">compounding</a>, even relatively modest monthly savings can snowball into something far more substantial. </p>



<p>The key lesson is simple: <strong>the earlier and more consistently you invest, the greater the long-term potential</strong>. Monthly contributions may feel small at first, but when they're reinvested and allowed to compound over decades, the results can be powerful.</p>



<p>Rather than chasing quick wins or headline yields, I'd focus on building a diversified income portfolio designed to grow steadily and sustainably. </p>



<h2 class="wp-block-heading" id="h-working-backwards-from-a-50-000-income-goal">Working backwards from a $50,000 income goal</h2>



<p>Let's start with the maths.</p>



<p>If an investor wanted to generate $50,000 per year in <a href="https://www.fool.com.au/definitions/dividend/">dividends </a>and distributions, a useful starting assumption is a 3% <a href="https://www.fool.com.au/definitions/dividend-yield/">portfolio yield</a>. That's deliberately conservative and avoids relying on unusually high payouts. </p>



<p>At a 3% yield:</p>



<ul class="wp-block-list">
<li>$50,000 ÷ 3% = $1.67 million portfolio value</li>
</ul>



<p></p>



<p>That figure can sound daunting at first glance.&nbsp;</p>



<p>But it's important to remember two things.</p>



<p>First, this is the <em>end point</em>, not the starting line. Most of the heavy lifting is done by compounding over time. Second, the yield itself isn't static. Many quality income investments aim to grow distributions over time, meaning the income can rise even if the portfolio value stays the same. </p>



<p>For simplicity, this calculation <strong>does not include </strong><a href="https://www.fool.com.au/definitions/franking-credits/">franking credits</a>. In reality, franking can materially lift after-tax income for Australian investors. The benefit will vary depending on the mix of shares and funds held, but for portfolios tilted towards Australian equities, franking is typically a tailwind rather than a headwind.</p>



<h2 class="wp-block-heading" id="h-why-starting-early-matters-more-than-starting-big">Why starting early matters more than starting big</h2>



<p>One of the biggest advantages an investor can give themselves is time.</p>



<p>Regular monthly investing achieves three things at once:</p>



<ul class="wp-block-list">
<li>It smooths out market volatility<br></li>



<li>It builds the habit of saving and investing<br></li>



<li>It maximises the compounding runway<br></li>
</ul>



<p></p>



<p>Increasing contributions earlier in life can have an outsized impact on the eventual outcome. Even small increases in monthly savings, made early, can reduce the pressure to contribute far more later on.</p>



<p>Over decades, capital growth, reinvested income, and incremental increases in savings can work together in a way that's difficult to replicate with lump-sum investing alone. </p>



<h2 class="wp-block-heading" id="h-a-simple-foundation-using-diversified-income-investments">A simple foundation using diversified income investments</h2>



<p>For a core portfolio, I'd keep things straightforward.</p>



<p>One option is the <strong>Vanguard Australian Shares High Yield ETF </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-vhy/">ASX: VHY</a>), which provides exposure to a diversified basket of Australian companies with above-average dividend yields. It spreads risk across sectors and offers access to franked income without needing to pick individual stocks.</p>



<p>To complement that, the <strong>L1 Long Short Fund Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>) offers a different income profile. As a listed investment company, it aims to generate returns across market cycles, with the ability to smooth dividends using profit reserves. This can add diversification away from traditional long-only equity income.</p>



<p>Used together, funds like these can form a simple base designed to deliver income while reducing reliance on any single company or sector.</p>



<h2 class="wp-block-heading" id="h-adding-quality-businesses-for-dividend-growth">Adding quality businesses for dividend growth</h2>



<p>For investors willing to be more hands-on, adding a selection of individual <a href="https://www.fool.com.au/investing-education/dividend-shares/">ASX dividend shares</a> can provide another layer of income growth.</p>



<p>A long-standing example, <strong>Washington H. Soul Pattinson and Co. Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-sol/">ASX: SOL</a>) has built a reputation for steady dividend increases across multiple decades, supported by a diversified investment portfolio.</p>



<p>For more defensive income, <strong>Telstra Group Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-tls/">ASX: TLS</a>) remains a widely followed option. It is essentially a monopoly on Australian telecommunications, so predictable cash flows have historically supported ongoing shareholder distributions.</p>



<p>Meanwhile, <strong>Jumbo Interactive Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-jin/">ASX: JIN</a>) shows how niche digital businesses can translate recurring customer activity into growing cash returns for investors.</p>



<p>These types of companies can complement <a href="https://www.fool.com.au/definitions/what-is-forex-trading/">ETFs </a>by introducing the potential for dividend growth over time.</p>



<h2 class="wp-block-heading" id="h-bringing-it-all-together">Bringing it all together</h2>



<p>Generating $50,000 a year in passive income isn't about finding a single perfect stock or timing the market just right. It's about building a diversified portfolio, contributing regularly, reinvesting early income, and letting time do the work.</p>



<p>The mix of ETFs and quality businesses will differ from investor to investor. So will the pace of contributions and the eventual yield. But the underlying principle remains the same: <strong>consistent investing, compounded over long periods, can turn monthly savings into a powerful income stream</strong>.</p>



<p>It may not be exciting week to week. But over decades, it can be remarkably effective.</p>
<p>The post <a href="https://www.fool.com.au/2026/01/22/how-id-invest-monthly-savings-to-generate-over-50000-passive-income/">How I&#039;d invest monthly savings to generate over $50,000 passive income</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                <title>Want to build up passive income? These 2 ASX dividend shares are a buy!</title>
                <link>https://www.fool.com.au/2026/01/18/want-to-build-up-passive-income-these-2-asx-dividend-shares-are-a-buy/</link>
                                <pubDate>Sat, 17 Jan 2026 22:00:00 +0000</pubDate>
                <dc:creator><![CDATA[Tristan Harrison]]></dc:creator>
                		<category><![CDATA[Dividend Investing]]></category>
		<category><![CDATA[Opinions]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1824166</guid>
                                    <description><![CDATA[<p>These stocks are giving investors exciting payouts every year. </p>
<p>The post <a href="https://www.fool.com.au/2026/01/18/want-to-build-up-passive-income-these-2-asx-dividend-shares-are-a-buy/">Want to build up passive income? These 2 ASX dividend shares are a buy!</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
]]></description>
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<p>It's a great joy to own <a href="https://www.fool.com.au/investing-education/dividend-shares/">ASX dividend shares</a> that deliver <a href="https://www.fool.com.au/definitions/passive-income/">passive income</a> for our bank accounts. I think it's even more appealing to own businesses that have a habit of <em>growing</em> the payout each year.</p>



<p>It's especially pleasing to see the payment increase each year. This enables us to become wealthier, offset/exceed inflation, as well as signalling that the business isn't hitting shareholders with a cut.</p>



<p>If we're relying on dividend income to pay for our life, it could be a disaster if an ASX dividend share were to enact a cut. That's why I've put a lot of my own money towards the two names below, and I still think they're buys today.</p>



<h2 class="wp-block-heading" id="h-washington-h-soul-pattinson-and-co-ltd-asx-sol">Washington H. Soul Pattinson and Co Ltd (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-sol/">ASX: SOL</a>)</h2>



<p>The leading ASX business for dividend increases is Soul Patts, in my view.</p>



<p>While the investment house hasn't delivered the <em>biggest </em>dividend increases over the past decade or two, it has certainly been the most consistent.</p>



<p>It has increased its annual dividend every year since 1998, which is a longer streak than any other ASX share.</p>



<p>It's invested in a number of sectors including telecommunications, resources, agriculture, industrial properties, building products, swimming schools, credit and more.</p>



<p>By having a diversified portfolio, it's able to lower the risks and find the best opportunities in a wide array of industries.</p>



<p>The ASX dividend share is able to regularly grow the passive dividend income because it generates investment <a href="https://www.fool.com.au/definitions/cash-flow/">cash flow</a> from its portfolio, it pays for its expenses and then sends a majority of that net cash flow to shareholders. It retains some of the money to invest in more opportunities each year.</p>



<p>The company has a grossed-up <a href="https://www.fool.com.au/definitions/dividend-yield/">dividend yield</a> of 3.9%, including <a href="https://www.fool.com.au/definitions/franking-credits/">franking credits</a>. But, with its record of rising payouts, I'm expecting the FY26 grossed-up dividend yield to be at least 4.1%, at the current valuation.</p>



<h2 class="wp-block-heading" id="h-l1-long-short-fund-ltd-asx-lsf">L1 Long Short Fund Ltd (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>)</h2>



<p>I like the <a href="https://www.fool.com.au/definitions/lic/">listed investment company (LIC)</a> structure for receiving stable and growing income because of how LICs can use investment gains in the latest and previous financial years, enabling a smooth and steadily rising payout due to the profit reserve.</p>



<p>The L1 Long Short Fund provides investors with access to a fund that aims to produce positive returns regardless of what share markets are doing. It achieves this by investing in businesses it thinks are undervalued, as well as <a href="https://www.fool.com.au/definitions/short-selling/" target="_blank" rel="noreferrer noopener">shorting</a> businesses it thinks will fall. The company's investment objective is to deliver strong, positive, risk-adjusted returns over the long term whilst seeking to preserve shareholder capital.</p>



<p>The ASX dividend share has steadily increased its passive income each year since it started paying dividends in 2021. It recently announced a shift to a quarterly dividend of 3.5 cents per share. Annualised, that represents an increase of at least 9.8% year-over-year, assuming no increases to the quarterly payout.</p>



<p>If it does pay 14 cents per share in FY26, that'd be a grossed-up dividend yield of 4.7%, including franking credits.</p>
<p>The post <a href="https://www.fool.com.au/2026/01/18/want-to-build-up-passive-income-these-2-asx-dividend-shares-are-a-buy/">Want to build up passive income? These 2 ASX dividend shares are a buy!</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                <title>2 magnificent ASX stocks to own for the long haul</title>
                <link>https://www.fool.com.au/2025/12/13/2-magnificent-asx-stocks-to-own-for-the-long-haul/</link>
                                <pubDate>Fri, 12 Dec 2025 20:30:00 +0000</pubDate>
                <dc:creator><![CDATA[Sebastian Bowen]]></dc:creator>
                		<category><![CDATA[Opinions]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1819516</guid>
                                    <description><![CDATA[<p>I think these stocks will keep delivering for years. </p>
<p>The post <a href="https://www.fool.com.au/2025/12/13/2-magnificent-asx-stocks-to-own-for-the-long-haul/">2 magnificent ASX stocks to own for the long haul</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Whenever I buy ASX stocks, I try and think of the teachings of legendary investor Warren Buffett. Buffett has long espoused the value of <a href="https://www.fool.com.au/investing-education/trading-long-term-investing/">long-term investing</a>, once famously remarking that his favourite period to hold a stock is "forever". While this isn't always practical (Buffett himself has often sold his own shares), I think this idea is still a fantastic north star for any investor to keep in their view.</p>
<p>So today, let's discuss two magnificent ASX stocks that I think are fantastic choices to own for the long haul.</p>
<h2>Two magnificent ASX stocks that I would buy and hold</h2>
<h3><strong>L1 Long Short Fund Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>)</h3>
<p>The L1 Long Short Fund is a<a href="https://www.fool.com.au/definitions/lic/"> listed investment company (LIC)</a> that I've had my eye on for a while now. Like most LICs, the Long Short Fund holds an underlying portfolio of shares and investments that it owns and manages on behalf of its investors.</p>
<p>Unlike most LICs, though, the Long Short Fund employs <a href="https://www.fool.com.au/definitions/short-selling/">short selling</a>, as well as traditional 'long' investing (hence the name). This it has done to great effect, for this company's portfolio has returned an average of 18.2% per annum over the past five years (as of 30 November). Some of its best positions in recent months have been<strong> Light &amp; Wonder Inc</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lnw/">ASX: LNW</a>),<strong> Viva Energy Group Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-vea/">ASX: VEA</a>), and a short position in <strong>Commonwealth Bank of Australia</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-cba/">ASX: CBA</a>).</p>
<p>This LIC doesn't come cheap, with L1 charging an annual management fee of 1.44% per annum. However, if it keeps on delivering those outsized returns, it might be a price well worth paying.</p>
<h3><strong>MFF Capital Investments Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-mff/">ASX: MFF</a>)</h3>
<p>Onto another magnificent ASX stock and LIC, we have MFF Capital Investments. MFF is a more traditional LIC, only holding investments. In this case, those investments are mostly American shares.</p>
<p>Like Warren Buffett, MFF prefers to invest in well-positioned companies at compelling prices and hold them for the long term. Many of MFF's largest positions have been portfolio stalwarts for years. These include <strong>Amazon</strong>, <strong>Visa</strong>, <strong>Alphabet</strong>,<strong> Mastercard</strong>, and<strong> American Express</strong>.</p>
<p>MFF has a long track record of delivering sizeable returns for investors. By my calculations, its shareholders have enjoyed an average return of about 15.7% per annum over the past 15 years. MFF also has <a href="https://www.fool.com.au/2025/12/10/lazy-investor-this-asx-dividend-growth-stock-deserves-a-spot-in-your-portfolio/">an attractive dividend growth policy</a>, having raised its payouts from 2 cents per share in 2017 to 17 cents per share investors bagged in 2025 (an annual growth rate of over 30%). Those <a href="https://www.fool.com.au/definitions/dividend/">dividends</a> come <a href="https://www.fool.com.au/definitions/franking-credits/">fully franked</a> too.</p>
<p>All in all, I believe MFF is another magnificent ASX stock, one that I personally own for the long haul.</p>
<p>The post <a href="https://www.fool.com.au/2025/12/13/2-magnificent-asx-stocks-to-own-for-the-long-haul/">2 magnificent ASX stocks to own for the long haul</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                <title>This new ASX stock has returned 70% since January</title>
                <link>https://www.fool.com.au/2025/12/09/this-new-asx-stock-has-returned-70-since-january/</link>
                                <pubDate>Mon, 08 Dec 2025 19:08:13 +0000</pubDate>
                <dc:creator><![CDATA[Sebastian Bowen]]></dc:creator>
                		<category><![CDATA[Share Market News]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1818379</guid>
                                    <description><![CDATA[<p>This new stock might get a lot of attention...</p>
<p>The post <a href="https://www.fool.com.au/2025/12/09/this-new-asx-stock-has-returned-70-since-january/">This new ASX stock has returned 70% since January</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>The <strong>L1 Long Short Fund Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>) is one of the most successful ASX stocks on the Australian share market.</p>
<p>Since duplicating its managed fund into a <a href="https://www.fool.com.au/definitions/lic/">listed investment company (LIC)</a> back in 2018, this LIC's portfolio has generated an average return of 12.7% per annum. That stretches to 23.1% per annum over the past five years.</p>
<p>Now, the L1 Long Short Fund is primarily an Australia-focused investment, with ASX stocks making up at least 70% of the fund at any given moment. It is a rather unusual LIC in that it uses a long-short strategy. This involves traditional investing in other shares in hopes of future returns (long investing). But also <a href="https://www.fool.com.au/definitions/short-selling/">short-selling</a> companies that it thinks are in for rough times ahead.</p>
<p>This long-short strategy has clearly been effective at generating returns for its investors on the Australian market. But L1 Capital has just launched a new ASX fund that it hopes can replicate the success of its ASX-focused cousin on the international stage.</p>
<p>ASX veterans might find a bell ringing when we mention Platinum Asset Management. Platinum used to be one of the ASX's most sought-after stock pickers. But a recent run of underperformance has left it struggling. As a consequence, Platinum Asset Management's Platinum Capital Ltd listed investment company was approached by L1 Capital with a takeover offer. The offer was accepted, and, earlier this month, was merged into a new LIC that will take L1's long-short strategy to global markets.</p>
<p>That LIC is now known as<strong> L1 Global Long Short Fund Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-gls/">ASX: GLS</a>), and it might be worth a closer look.</p>
<h2>An ASX stock that has banked 70% since January?</h2>
<p>We've already touched on the ASX-focused L1 Long Short Fund's previous success. Even though the L1 Global Long Short Fund has only been on the ASX in its new form for a few days, stock investors have a preview of its potential success.</p>
<p>In a <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-03031741-2A1640140&amp;v=undefined">merger presentation</a>, L1 fund managers Raphael Lamm and Mark Landau seeded an initial version of what has now become the L1 Global Long Short Fund back in January in a trial run of sorts. Between 1 January and 31 October, that trial run returned a whopping 67.5%. </p>
<p>Past performance is never a guarantee of future success, of course. But no one can deny that this new ASX stock is off to a flying start.</p>
<p>Some of the long positions that can currently be found in the L1 Global Long Short Fund's portfolio include <strong>Alcoa</strong>, <strong>ING</strong> and <strong>Zillow</strong>. Meanwhile, the fund has shorted US electric car maker <strong>Lucid Motors</strong>.</p>
<p>L1 will have to keep up its outperformance for new investors to get bang for their buck, though. After an initial grace period, this new ASX stock will charge a management fee of 1.4% per annum. That's in addition to a performance fee.</p>


<p></p>
<p>The post <a href="https://www.fool.com.au/2025/12/09/this-new-asx-stock-has-returned-70-since-january/">This new ASX stock has returned 70% since January</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                <title>Grow your dividends alongside your job earnings with these Australian stocks</title>
                <link>https://www.fool.com.au/2025/10/19/grow-your-dividends-alongside-your-job-earnings-with-these-australian-stocks/</link>
                                <pubDate>Sat, 18 Oct 2025 20:00:00 +0000</pubDate>
                <dc:creator><![CDATA[Tristan Harrison]]></dc:creator>
                		<category><![CDATA[Personal Finance]]></category>
		<category><![CDATA[Share Market News]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1808905</guid>
                                    <description><![CDATA[<p>Aussies can build their passive income alongside work earnings. </p>
<p>The post <a href="https://www.fool.com.au/2025/10/19/grow-your-dividends-alongside-your-job-earnings-with-these-australian-stocks/">Grow your dividends alongside your job earnings with these Australian stocks</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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<p>There are multiple ways to generate an income, such as job earnings, dividends from (Australian) stocks, rental income, savings accounts, bond interest and so on.</p>



<p>For most people, their job is the primary source of income. Earning $50,000 from work may not sound like too much, but it's equivalent to having a $1 million portfolio with a 5% yield.</p>



<p>However, work earnings are limited to what we can earn with our time.</p>



<p><a href="https://www.fool.com.au/definitions/dividend/">Dividend</a> payments can accumulate and grow over time. Plus, we don't need to work for those payments; that's why it's called passive income. You can think of passive income as a second worker making money for our bank account.</p>



<p>But what sort of ASX <a href="https://www.fool.com.au/investing-education/dividend-guide/">dividend shares</a> are the right ones to go for?</p>



<h2 class="wp-block-heading" id="h-regular-pay-rises"><strong>Regular pay rises</strong><strong></strong></h2>



<p>There are some businesses that have a high <a href="https://www.fool.com.au/definitions/dividend-yield/">dividend yield</a>, such as <strong>Shaver Shop Group Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-ssg/">ASX: SSG</a>). But that may not be the most effective dividend pick for working Australians.</p>



<p>Dividends are taxed alongside work earnings on tax returns. Receiving large dividends could mean losing a sizeable chunk of the return each year to the tax office. Paying taxes is not necessarily a bad thing, but it does reduce the net return.</p>



<p>For my own portfolio, I prefer investing in Australian stocks that generally provide regular annual dividend growth.</p>



<p>I focus on names I believe will continue growing their payments in the years to come. Considering my passive dividend income as a worker generating money for me, I want to choose names that I believe have a high chance of delivering regular pay increases.</p>



<p>Dividend growth is helpful in <span style="box-sizing: border-box; margin: 0px; padding: 0px;">increasing our&nbsp;<a href="https://www.fool.com.au/definitions/cash-flow/" target="_blank">cash flow</a>&nbsp;to supplement job earnings, it can provide&nbsp;<a href="https://www.fool.com.au/definitions/inflation/" target="_blank">inflation</a>&nbsp;protection</span>, and it's a good sign that the business is growing its profits and its underlying value over time.</p>



<p>In other words, ASX dividend shares that are hiking the dividend are likely to deliver solid total returns, not just pleasing dividend yields.</p>



<h2 class="wp-block-heading" id="h-which-asx-dividend-shares-are-good-options"><strong>Which ASX dividend shares are good options?</strong><strong></strong></h2>



<p>I prefer to invest in businesses that have a proven track record of dividend payments and have demonstrated a commitment to increasing those payouts for investors.</p>



<p>There are a few in my portfolio (and a couple that aren't) that I'll highlight as ideas, such as:</p>



<ul class="wp-block-list">
<li>Investment conglomerate <strong>Washington H. Soul Pattinson and Co. Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-sol/">ASX: SOL</a>)</li>



<li>Energy infrastructure giant <strong>APA Group </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-apa/">ASX: APA</a>)</li>



<li>Water entitlement owner <strong>Duxton Water Ltd </strong>(ASX: D2O)</li>



<li>Telco <strong>Telstra Group Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-tls/">ASX: TLS</a>)</li>



<li>Bunnings and Kmart owner <strong>Wesfarmers Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-wes/">ASX: WES</a>)</li>



<li><a href="https://www.fool.com.au/definitions/lic/">Listed investment companies (LICs)</a> <strong>MFF Capital Investments Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-mff/">ASX: MFF</a>), <strong>Future Generation Australia Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-fgx/">ASX: FGX</a>), <strong>L1 Long Short Fund Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>) and <strong>Hearts and Minds Investments Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-hm1/">ASX: HM1</a>)</li>



<li></li>
</ul>



<p>I believe a portfolio comprising the above names, along with a few others, could yield a pleasing mix of <a href="https://www.fool.com.au/investing-education/portfolio-diversification/">diversification</a> and dividends. How great would it be to be able to receive $10,000 (or $100,000) of annual dividend income from Australian stocks to boost our finances?</p>



<p>Investing $1,000 today in an ASX dividend share could unlock $50 of annual income. If that dividend grew by 10% per year, it'd become $55 after year one, $60.50 after year two and so on. <a href="https://www.fool.com.au/definitions/compounding/">Compounding</a> is a very powerful tool, particularly when we regularly invest in our portfolios.</p>
<p>The post <a href="https://www.fool.com.au/2025/10/19/grow-your-dividends-alongside-your-job-earnings-with-these-australian-stocks/">Grow your dividends alongside your job earnings with these Australian stocks</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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                                <title>Why I think this ASX small-cap stock is a bargain at 69 cents</title>
                <link>https://www.fool.com.au/2025/10/06/why-i-think-this-asx-small-cap-stock-is-a-bargain-at-69-cents/</link>
                                <pubDate>Sun, 05 Oct 2025 20:53:55 +0000</pubDate>
                <dc:creator><![CDATA[Tristan Harrison]]></dc:creator>
                		<category><![CDATA[Small Cap Shares]]></category>

                <guid isPermaLink="false">https://www.fool.com.au/?p=1807014</guid>
                                    <description><![CDATA[<p>This business has significant potential to deliver great returns. </p>
<p>The post <a href="https://www.fool.com.au/2025/10/06/why-i-think-this-asx-small-cap-stock-is-a-bargain-at-69-cents/">Why I think this ASX small-cap stock is a bargain at 69 cents</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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<p>The <a href="https://www.fool.com.au/investing-education/small-cap/">ASX small-cap stock</a> <strong>L1 Group Ltd</strong> (<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-l1g/">ASX: L1G</a>) is one business to keep a close eye on, in my view.</p>



<p>It's a very new name to the ASX following the <a href="https://www.fool.com.au/2025/07/10/why-are-platinum-shares-rocketing-13-today/">merger/acquisition</a> of Platinum Asset Management.</p>



<p>Aside from the Platinum funds, L1 also has a number of its own funds including the <a href="https://www.fool.com.au/definitions/lic/">listed investment company (LIC)</a> <strong>L1 Long Short Fund Ltd </strong>(<a class="tickerized-link" href="https://www.fool.com.au/tickers/asx-lsf/">ASX: LSF</a>), L1 Capital Catalyst Fund, L1 Capital International, L1 Capital Global Opportunities Fund, L1 Capital UK Residential Property Fund and L1 Capital Gold Fund.</p>



<p>There are a few reasons why I think this ASX small-cap stock looks like an excellent investment for the long-term.</p>



<h2 class="wp-block-heading" id="h-merger-benefits"><strong>Merger benefits</strong><strong></strong></h2>



<p>Following the merger between L1 and Platinum, management are expecting to reap substantial benefits.</p>



<p>The company is expecting efficiency benefits of (pro-forma) $20 million of pre-tax net synergy and cost savings.</p>



<p>This is expected to be materially-boosting for <a href="https://www.fool.com.au/definitions/earnings-per-share/">earnings per share (EPS)</a>, with a double-digit rise in EPS in the 12 months after the deal and add more than 30% to EPS in FY27.</p>



<p>Following completion of the deal, the L1 leadership are expected to hold significant chunks of L1 Group shares. L1 Capital co-founders Mark Landau and Raphael Lamm will together own around 66% of the business, as well as another 8% combined by the L1 Capital chief operating officer and former L1 Capital portfolio manager.</p>



<h2 class="wp-block-heading" id="h-strong-fund-performance"><strong>Strong fund performance</strong><strong></strong></h2>



<p>One of the most important aspects of a fund manager is the fund performance they deliver for investors.</p>



<p>The ASX small-cap stock has an excellent track record of strong returns with some of its funds and this is a very powerful force for growing <a href="https://www.fool.com.au/definitions/funds-under-management-fum/">funds under management (FUM)</a>.</p>



<p>For example, the L1 Capital Global Opportunities Fund delivered an average return per year of 27.4% over the 10 years to 31 August 2025 and has delivered positive returns every calendar year since inception in 2015.</p>



<p>The L1 Capital Long Short Fund has delivered an average return per year of 18.7% since the strategy's inception in September 2014. This strategy is a significant part of the company's FUM.</p>



<p>If L1 can continue growing FUM at a pleasing pace, it could be a very underrated buy because fund managers typically trade on a relatively low <a href="https://www.fool.com.au/definitions/p-e-ratio/">price/earnings (P/E) ratio</a>.</p>



<h2 class="wp-block-heading" id="h-compelling-offerings"><strong>Compelling offerings</strong><strong></strong></h2>



<p>L1 is not like a typical Australian equity manager that's focused on ASX shares. I like the different strategies that it can provide clients which are very different to the low-cost <a href="https://www.fool.com.au/definitions/exchange-traded-fund/">exchange-traded funds (ETFs)</a>.</p>



<p>A gold fund, a UK property fund, a high-performance international fund – it's a diversified array of funds.</p>



<p>In this time where investors can gain exposure to shares very easily for a very cheap price, it's important for fund managers to offer investments that are strong-performing and/or very different to what's available on the market. I think L1 Group is very capable of doing that, making this ASX small-cap stock a compelling buy.</p>
<p>The post <a href="https://www.fool.com.au/2025/10/06/why-i-think-this-asx-small-cap-stock-is-a-bargain-at-69-cents/">Why I think this ASX small-cap stock is a bargain at 69 cents</a> appeared first on <a href="https://www.fool.com.au">The Motley Fool Australia</a>.</p>
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