But, I don't view volatility as a problematic risk, it's just something to watch with curiosity. We don't have to act when the market is going through extraordinary gyrations.

I think there are a few factors that investors should keep in mind with ASX shares, or any type of shares, particularly in this period of uncertainty with higher inflation, interest rate uncertainty, conflict, energy costs and so on.

Unknown events regularly happen

The Iran war took the global investment community by surprise, leading to a sizeable market drop.

The US tariffs last year were a big surprise, leading to a big drop.

Inflation in 2022 and 2023 was surprising for the market, significantly hitting share prices.

COVID-19 led to a major decline of the ASX share market, with a huge fall of valuations during 2020.

Each of those events were a one-off. But, something happens so regularly that I've just become accustomed to the volatility and I view those times as buying opportunities because of my confidence that normality will resume sooner or later.  

It's not just my positive mindset that gives me confidence to invest and hold during uncertain periods. History has shown how the world typically bounces back. Additionally, many leaders and institutions are trying to help the country navigate negative periods, as we saw during COVID-19 (and the GFC).

There are always opportunities

Sometimes the market is priced very negatively and other times very highly – occasionally hitting a new all-time high – and it can feel hard to invest at those times.

During market highs, not everything is trading at an all-time high, there are usually pleasing opportunities hidden underneath the surface, even if the blue-chips are trading attractively.

Smaller names and certain sectors can be mis-priced by the market if investors aren't taking into account where an investment could be in three years from now.

For example, right now, I think several real estate investment trusts (REITs) like Rural Funds Group (ASX: RFF) and Centuria Industrial REIT (ASX: CIP) are attractively priced because of fears about higher interest rates.

Also, certain ASX tech shares look significantly oversold because of AI worries, such as Siteminder Ltd (ASX: SDR), Pro Medicus Ltd (ASX: PME) and TechnologyOne Ltd (ASX: TNE).

When markets fall, I get particularly excited when the market suffers a widespread sell-off because there are opportunities galore.

Long-term investing filters out the noise

One of the main reasons why I'm not at all bothered by significant volatility is because I'm investing for many years to come.

If we're investing with 2030 or 2040 in mind, does it really matter what happens in 2026 or 2027? I don't think it should.

I try to only invest in ASX shares that I'm holding for the long-term and that I'd be excited to buy more of if the share price fell. That way, market declines seem like significant opportunities rather than something to worry about.

If the market rises or falls from here, I won't let it affect my strategy – invest in good investments with compelling futures, at valuations that aren't too expensive.

The post How to invest in ASX shares during such an uncertain period appeared first on The Motley Fool Australia.

When interest rates rise, I think it makes a lot of sense to look at real estate investment trusts (REITs) – they generate resilient rental earnings, yet the market typically pushes down the unit price.

For me, there are two high-yield ASX dividends that look particularly attractive during this period. Let's get into it.

Centuria Industrial REIT (ASX: CIP)

This business owns industrial properties across Australia's major cities in important locations where demand is high but supply and vacancies are low.

The REIT's rental income is growing at a pleasing speed thanks to the level of demand coming from customers for distribution and logistics, data centre, food or medicine purposes.

Rental values for metropolitan industrial properties have risen significantly in the last few years, which is why the business believes its portfolio is, on average, 20% 'under-rented'. As leases come up for renewal, the high-yield ASX dividend stock is seeing a significant boost for that property's rental income.

In terms of the passive income, it expects to grow its FY26 annual distribution by 3% to 16.8 cents per security. That translates into a current distribution yield 5.7%.

On the valuation side of things, its latest net tangible assets (NTA) was stated as $3.95 at 31 December 2025, meaning it's trading at a discount of around 25% to this valuation. That's very appealing to me.

Rural Funds Group (ASX: RFF)

Rural Funds is the other high-yield ASX dividend stock I want to highlight. It's the owner of various farms across Australia, including cattle, almonds, macadamias, vineyards and cropping.

The business has high-quality tenants signed on for, on average, more than a decade. It has one of the longest weighted average lease expiry (WALE) figures in the Australian REIT sector.

Rural Funds has built its portfolio to own assets that can deliver solid income in the shorter-term and deliver capital growth over the longer-term.

Most of Rural Funds' contracts have rental indexation included, with either fixed annual increases or the increases are linked to inflation, plus market reviews.

Despite the headwinds of higher interest rates, Rural Funds has been steady with its annual distribution per unit of 11.73 cents in recent years. It wouldn't surprise me if it was exactly that payment in FY27 as well. Its current annual distribution translates into a yield of 5.9%.

In terms of how undervalued it is, the business reported an adjusted net asset value (NAV) of $3.10 as of 31 December 2025. That means it's currently trading at a discount of around 36%. That looks too cheap to ignore, in my opinion.

The post 2 excellent high-yield ASX dividend stocks I'd buy today appeared first on The Motley Fool Australia.

But which ones could be top buys as we head into June? Let's look at three that offer attractive dividend yields. They are as follows:

Dicker Data Ltd (ASX: DDR)

The first ASX dividend share to look at is Dicker Data.

It is a technology distributor that connects many of the world's largest hardware, software, cloud, and cybersecurity vendors with resellers across Australia and New Zealand.

This may not sound as exciting as a fast-growing software company, but it is an important part of the technology supply chain. Businesses still need devices, networks, cloud infrastructure, security tools, and ongoing support to keep operating efficiently.

Dicker Data has built a strong position by offering a broad product range, deep vendor relationships, and service levels that make it valuable to both suppliers and resellers.

The company is not immune from weaker technology spending or margin pressure. But over the long term, rising demand for digital tools, cloud adoption, and cybersecurity should support its market opportunity.

Dicker Data shares currently trade with a fully franked trailing 4.4% dividend yield.

Magellan Infrastructure Fund (ASX: MICH)

Another ASX dividend share that could be worth a look is Magellan Infrastructure Fund.

This is not a traditional dividend share. It is an ASX-listed active ETF that invests in global infrastructure companies, with currency hedging designed to reduce the impact of exchange rate movements.

Infrastructure can be useful for income investors because many assets provide essential services. This can include electricity networks, toll roads, airports, water utilities, and communications infrastructure.

These businesses are often supported by long-life assets, regulated returns, contracted revenue, or strong market positions. That can give the fund a more defensive income profile than many cyclical sectors.

The Magellan Infrastructure Fund currently trades with a trailing 3.3% dividend yield.

Rural Funds Group (ASX: RFF)

A third ASX dividend share to consider is Rural Funds.

It owns a diversified portfolio of agricultural assets, including properties used for cattle, almonds, macadamias, vineyards, and cropping.

These assets are leased to high-quality operators, which means Rural Funds is more focused on collecting rental income than running farming operations itself. That gives it a different risk profile from traditional agricultural businesses.

Long leases, exposure to real assets, and demand for productive farmland all support the investment case. The company also gives investors access to a part of the market that is very different from banks, miners, and retailers.

Its guidance for FY 2026 implies a dividend yield of 5.9%.

The post 3 top ASX dividend shares to boost your passive income in June appeared first on The Motley Fool Australia.

Some businesses can provide investors with a high dividend yield because they have a generous dividend payout ratio. The yield could be high because of pleasing franking credits. Or, the payout could be compelling because the business is priced cheaply.

Let's look at two investment options that could deliver a very pleasing yield to investors with $25,000.

Rural Funds Group (ASX: RFF)

Some retirees may love the idea of investing in farmland for retirement. But, owning commercial property ourselves can come with a lot of administration and potentially costs. Why not just own a real estate investment trust (REIT) that invests in farmland for us.

It invests in areas like almonds, cattle, macadamias, vineyards and cropping, giving investors various exposure to different, attractive growth areas. Over time, Rural Funds benefits from rental indexation which is either fixed annual increases or the rises are linked to inflation, plus market reviews.

Another positive of Rural Funds is that it has defensive rental earnings, with high-quality and reliable tenants, with a weighted average lease expiry (WALE) of well over a decade.

The business pays a distribution every quarter and this means shareholders are getting regular passive income in superannuation.

I expect the business will pay an annual distribution of something like 11.73 cents (the same as FY26) in FY27. That translates into a forward distribution yield of 5.9%.  

Future Generation Australia Ltd (ASX: FGX)

Future Generation Australia is a listed investment company (LIC) that has a number of positives.

For starters, it donates 1% of its net assets each year to youth-focused charities. Fund managers work for free to enable the business to enable that philanthropy.

The LIC is invested in the funds of a number of different fund managers, meaning Future Generation can provide significant diversification.

Future Generation Australia is able to provide investors with growing dividends because LICs can turn investment profits into dividends.

It has increased its annual dividend per share each year for the last decade, meaning it has provided an excellent level of stability for investors. The annual payout for FY25 was 7.2 cents per share, which translates into a trailing grossed-up dividend yield of 7.7%, including franking credits, at the time of writing. That's a great yield for superannuation investors wanting passive income, in my opinion.

I think it's likely the business will increase its annual payout during 2026, so the yield could be even better.

The post How to invest $25,000 for passive income in superannuation? appeared first on The Motley Fool Australia.

Passive income received in superannuation during the retirement phase has a good chance of being tax-free. How great is that?

So, the question is, how much would it take to receive a sizeable amount of dividends each year? Let's take a look.

$3,000 of passive income each month from superannuation

Receiving $3,000 equates to $36,000 per year. That's not a gigantic amount, but it could be enough to be an essential part of a retiree's finances.

How large the nest egg needs to be to receive $36,000 per year is largely related to what the portfolio yield is.

For example, if someone's portfolio had an average dividend yield of 3.6%, then they'd need a $1 million portfolio to receive $36,000.

But, if the portfolio average dividend yield was actually 7.2%, then an investor would only need a $500,000 portfolio.

If the portfolio had a 4.8% dividend yield then an invest would need a portfolio value of $750,000.

There are plenty of options when it comes to aiming for these sorts of yields, so I'll highlight a few names below. For my own portfolio, I have invested in a mix of names to create a strong dividend portfolio.

Which ASX dividend shares I'd buy

If an investor is targeting a relatively low (3.6%) passive income yield in superannuation, or outside of superannuation, then I'd consider names like investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Kmart and Bunnings owner Wesfarmers Ltd (ASX: WES), global jewellery business Lovisa Holdings Ltd (ASX: LOV) and funeral provider Propel Funeral Partners Ltd (ASX: PFP).

Among the mid-range yield (around 5%) names, I appreciate listed investment company (LIC) L1 Long Short Fund Ltd (ASX: LSF), industrial property owner Centuria Industrial REIT (ASX: CIP), farmland landlord Rural Funds Group (ASX: RFF), telco Telstra Group Ltd (ASX: TLS) and quality global shares-focused exchange-traded fund (ETF) WCM Quality Global Growth Fund (ASX: WCMQ).

Some of the higher-yield (more than 7%) names that I like include LICs WCM Global Growth Ltd (ASX: WQG), MFF Capital Investments Ltd (ASX: MFF), WAM Microcap Ltd (ASX: WMI), and diversified property landlord Charter Hall Long WALE REIT (ASX: CLW).  

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

There are two factors that make me want to choose businesses over term deposits. They can offer a higher yield, and they can deliver growth. Both the payout and share price can grow over time.

I'm calling the below ASX dividend shares compelling ideas to buy today.

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust (REIT) that owns farmland across Australia in different states and climate conditions.

The REIT owns a few different types of farms, including almonds, cattle, vineyards, macadamias and cropping. I like the diversification here because it reduces the risk of being overly exposed to one type of farm and gives it more industry areas to look for opportunities.

Rural Funds has a solid distribution yield, currently paying 11.73 cents per unit annually. That translates into a forward distribution yield of 5.9%.

Higher interest rates are a headwind for Rural Funds in the short term, but the business has steadily growing rental income thanks to fixed annual increases for some farms and inflation-linked increases at others.

It looks like a bargain to me because of the discount between the unit (share) price on the ASX and the latest net asset value (NAV). The adjusted NAV was $3.10 as of 31 December 2025, so it's currently trading at a discount of around 36% to that figure, which is a very attractive discount in my books.

WCM Global Growth Ltd (ASX: WQG)

The other ASX dividend share I want to highlight that's more attractive than a term deposit is this listed investment company (LIC), which invests in a portfolio of quality global shares.

The idea is that the investment team look for businesses with expanding economic moats (or improving competitive advantages). Companies that become steadily stronger are more likely to deliver pleasing profit growth and shareholder returns, in my opinion.

Another feature that the WCM investment team looks for is a corporate culture that helps improve the economic moat. WCM has specific aspects it looks for, as well as questions for management, that help determine whether the corporate culture is positive.

The LIC's portfolio has delivered a net return (after fees) of 15.4% since inception in June 2017, helping it fund both a growing dividend and capital growth of the share price.

It is increasing its quarterly dividend every quarter, which is pleasing consistency for shareholders.

The next four quarterly dividends to be officially declared are expected to amount to 9.59 cents per share, which translates into a grossed-up dividend yield of 7.3%, including franking credits.

This ASX dividend share is also trading at a small discount to its net tangible assets (NTA), so I think it's a good time to invest.

The post Forget term deposits! I'd buy these ASX dividend shares instead appeared first on The Motley Fool Australia.

But two of the best could be in this article according to analysts at Bell Potter.

Here's what the broker is recommending to clients right now:

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman could be an ASX dividend share to buy for income according to Bell Potter.

The retail giant has a well-known brand, a large store network, and exposure to furniture, electronics, appliances, bedding, and other household categories. It also has a major property portfolio, which gives the business an additional layer that many retailers do not have.

Trading conditions have not been easy for discretionary retailers. Higher interest rates, cost of living pressures, and weaker consumer confidence are weighing on spending.

Nevertheless, Bell Potter is positive on its outlook and believes it is still positioned to grow its dividend.

It is forecasting fully franked dividends of 29.8 cents per share in FY 2026 and 33.5 cents per share in FY 2027. Based on its current share price, this would mean dividend yields of 6.7% and 7.6%, respectively.

The broker has a buy rating and $6.70 price target on Harvey Norman's shares.

Rural Funds Group (ASX: RFF)

Rural Funds is another ASX dividend share that could be a top pick for income investors.

It owns a diversified portfolio of agricultural assets, including properties used for cattle, almonds, macadamias, vineyards, and cropping. These assets are leased to operators, giving Rural Funds a rental income stream rather than direct exposure to day-to-day farming operations.

This structure can make its earnings profile more predictable than many traditional agricultural businesses. Long leases, contracted rental income, and exposure to real assets are all features that may suit investors looking for income.

Another positive is that Rural Funds provides exposure to farmland, which is an asset class that can benefit from long-term demand for food, productive land, and agricultural infrastructure.

It is not without risk. Interest rates, asset valuations, seasonal conditions, and tenant performance can all influence sentiment toward the stock. But for investors comfortable with the agricultural property sector, Rural Funds offers something different from the usual bank, telco, and resources dividend names.

Bell Potter is forecasting dividends per share of 11.7 cents in both FY 2026 and FY 2027. Based on its current share price of $1.98, this would mean dividend yields of approximately 6%.

The broker currently has a buy rating and $2.50 price target on its shares.

The post Buy these ASX dividend shares with 6%+ yields appeared first on The Motley Fool Australia.

Superannuation has a low tax rate compared to individuals, trusts and companies. Plus, it's easy to invest for the long-term through the investment vehicle.

It's important to remember that the net income is an after-tax figure. An Australian working full-time could lose approximately a third of their passive income return to tax.

Therefore, investing in superannuation is a much more appealing prospect compared to other options. Superannuation has a lower tax rate in the accumulation phase than the standard individual tax rates for a full-time earner. In retirement, the tax rate could be 0%.

However, every Australian's tax position is different, so we're going to look at targeting a particular income level without mentioning tax any further.

How much is needed in superannuation for $7,500 of monthly passive income

Receiving $7,500 in dividends per month translates into $90,000 per year. I reckon many Australians would love to receive that level of dividends each year without having to do any ongoing work for it.

Australian investors need to decide what investments they want to own and the dividend yield that comes with that.

A portfolio with a dividend yield of 7% can be half the size of a portfolio with a dividend yield of 3.5% and earn the same level of passive income.

For example, if a portfolio were $1.3 million in size, it would generate $91,000 of annual passive income with a 7% dividend yield. If a portfolio had a dividend yield of 3.5%, the portfolio would need to be $2.6 million in size to generate the same level of cash payments.

To generate almost exactly $90,000 of annual passive income with a 7% dividend yield, an investor would need a portfolio size of $1.286 million.

A 5% dividend yield would require a portfolio size of $1.8 million to make $90,000 annually.

A 4% dividend yield would require a portfolio size of $2.25 million.

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

If a superannuation investor is targeting mid-to-higher dividend yields, then I'd look at reliable and discounted real estate investment trusts (REITs), growing companies with a generous dividend payout ratio and listed investment companies (LICs) with a good track record of dividends.

Appealing businesses with a dividend yield of around 5% to 6%, in my view, include WCM Quality Global Growth Fund (ASX: WCMQ), Telstra Group Ltd (ASX: TLS), Rural Funds Group (ASX: RFF), Centuria Industrial REIT (ASX: CIP), Australian Foundation Investment Co Ltd (ASX: AFI) and Argo Investments Ltd (ASX: ARG).

Businesses with a higher dividend yield include Future Generation Global Ltd (ASX: FGG), Future Generation Australia Ltd (ASX: FGX), Hearts and Minds Investments Ltd (ASX: HM1), WCM Global Growth Ltd (ASX: WQG), WAM Leaders Ltd (ASX: WLE), WAM Microcap Ltd (ASX: WMI) and Charter Hall Long WALE REIT (ASX: CLW).

The post How much is needed in superannuation to target a $7,500 monthly passive income? appeared first on The Motley Fool Australia.

It is the equivalent of $1,000 a week, which is enough to make a meaningful difference to an investor's lifestyle, retirement plans, or financial flexibility.

But the important point is that this sort of income stream is unlikely to come from chasing the highest yields on the market. A more realistic approach is to build patiently, focus on quality, reinvest where possible, and let compounding do its work over many years.

The number investors need

Let's start with the income target.

If an investor wants $52,000 a year from ASX dividend shares and assumes an average dividend yield of 5%, they would need a portfolio worth approximately $1.04 million.

That is a large number, but it gives investors something concrete to work towards.

How compounding can help

The journey to a seven-figure portfolio becomes more achievable when investors use time and compounding to their advantage.

If an investor can achieve an average annual total return of 10%, including capital growth and dividends, their money could grow significantly over long periods. This return is broadly in line with long-term share market averages, but it is not guaranteed.

Based on a 10% annual return, an investment of $1,000 per month into ASX shares would turn into over $1 million in around 23 years.

But it is worth remembering that some years will be strong, while others will be painful. That is why discipline matters.

What could go into the portfolio?

A passive income portfolio should not rely on one sector doing all the work.

Telstra Group Ltd (ASX: TLS), for example, is often viewed as a defensive dividend option because of its essential telecommunications infrastructure, large customer base, and recurring earnings profile.

Infrastructure names can also have a role to play. APA Group (ASX: APA) owns energy infrastructure assets, while Transurban Group (ASX: TCL) provides exposure to toll roads. Both operate in areas where long-term demand and contracted or regulated revenue streams can support income.

Investors may also look at real asset exposure through Rural Funds Group (ASX: RFF), which owns agricultural properties leased to operators. This gives the portfolio a different source of income from banks, retailers, or infrastructure shares.

Consumer-facing names can add another layer. Woolworths Group Ltd (ASX: WOW) has defensive qualities through grocery retailing, while Harvey Norman Holdings Ltd (ASX: HVN) offers exposure to retail, property, and dividends, though its earnings can be more cyclical.

The goal is not to own every income share available. It is to build a diversified group of reliable dividend payers that can support both income and long-term capital growth.

Foolish takeaway

A $52,000 annual passive income will not happen quickly for most investors.

But the formula is not complicated. Keep adding capital, reinvest dividends, diversify across quality ASX income shares, and then let time and compounding do the hard work.

The post How to build a $52,000 annual passive income appeared first on The Motley Fool Australia.

But which ones could be top buys in May?

Listed below are three ASX dividend shares that could be worth buying this month. Here's what you need to know about them:

Amcor plc (ASX: AMC)

The first ASX dividend share to look at is Amcor.

Amcor is a global packaging company that supplies flexible and rigid packaging products to customers across food, beverage, healthcare, personal care, and other consumer markets.

This gives the business exposure to everyday demand. Packaged food, medicine, and household goods continue moving through supply chains regardless of short-term market sentiment.

It is thanks to this that some analysts are expecting Amcor shares to offer dividend yields of more than 7% in both FY 2026 and FY 2027.

Rural Funds Group (ASX: RFF)

Another ASX dividend share worth looking at is Rural Funds Group.

It owns agricultural properties across Australia and leases them to operators in sectors such as cattle, cropping, almonds, macadamias, and vineyards.

The appeal here is the nature of the company's assets. Farmland is a real asset tied to long-term demand for food and agricultural production. Rental income can also provide a clearer earnings stream than direct exposure to farm operating conditions.

Rural Funds still faces risks from interest rates, weather conditions, and tenant performance. But its portfolio gives income investors access to a part of the property market that looks very different from offices, shopping centres, or warehouses.

Its shares are expected to offer dividend yields of around 6% in FY 2026 and FY 2027.

Lottery Corporation Ltd (ASX: TLC)

A third ASX dividend share that could appeal is Lottery Corporation.

The company operates lottery and keno licences across much of Australia. These licences provide exposure to a large, regulated market with strong brand recognition and recurring customer activity.

Lottery earnings can be influenced by jackpot cycles, but the business has a cash-generative model and limited capital intensity compared with many other industries.

This can support dividends over time, particularly when trading conditions are favourable.

For income investors seeking exposure outside the usual sectors, Lottery Corporation offers a dividend stream backed by a defensive and highly cash-generative business model.

It is expected to offer dividend yields of 3.2% in FY 2026 and then 3.7% in FY 2027.

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

Some companies generate cash flow from essential assets. Others are supported by long-term contracts, recurring demand, or disciplined capital management.

Here are three ASX dividend shares that could be worth looking at.

Rural Funds Group (ASX: RFF)

The first ASX dividend share with a distinctive income profile is Rural Funds Group.

It owns agricultural assets across Australia and leases them to operators in sectors such as cattle, cropping, macadamias, almonds, and vineyards.

That structure gives shareholders exposure to rental income from farmland without the need to run the farms directly. It also means the group's earnings are tied to long-term agricultural assets rather than traditional office, retail, or industrial property.

The appeal here is the essential nature of the end market. Food production remains a long-term need, and high-quality agricultural land is a finite asset.

For investors seeking passive income from real assets, Rural Funds offers a way to access agriculture through the ASX.

Transurban Group (ASX: TCL)

Another ASX dividend share worth considering is Transurban Group.

It owns and operates toll road networks in Australia and North America. These are long-life infrastructure assets located in major urban corridors.

Its income is supported by traffic volumes and toll revenue, with many concessions having pricing structures that can increase over time.

This gives Transurban a different profile from companies exposed to discretionary consumer spending. Roads remain important to commuters, freight operators, and airport traffic, even if usage can fluctuate during weaker periods.

With population growth and urban congestion continuing to support demand for transport infrastructure, Transurban arguably remains one of the ASX's key passive income shares.

Universal Store Holdings Ltd (ASX: UNI)

A third ASX dividend share that could be worth a look is Universal Store.

It operates youth-focused fashion retail stores across Australia, with brands including Universal Store, Perfect Stranger, and Thrills.

Retail can be cyclical, but Universal Store has shown an ability to connect with younger shoppers through curated ranges, own brands, and a strong store experience.

This is a different type of income idea from infrastructure or property. It carries more exposure to consumer spending, but it also offers the potential for dividend growth if the business keeps executing well.

And with its shares hitting a 52-week low this week, now could be an opportune time to open a position.

The post Hunting passive income? Here are three ASX dividend shares to buy appeared first on The Motley Fool Australia.

It's not a famous business, but it gives exposure to one of the most important industries in Australia – farmland.

This is the only business on the ASX that focuses on owning farms and leasing them out, so it's very attractive to gain a piece of that asset base.

Great farm portfolio

The business is invested across a number of farming assets, including almonds, cattle, macadamias, cropping, vineyards and more.

Rural Funds has locked in rental income for an extremely long time. In the FY26 half-year result, the business reported its weighted average lease expiry (WALE) was 13.2 years. Not many businesses have locked in their income that far in advance. Impressively, a large chunk of macadamia leases have been signed to FY64.

It has a number of large, high-quality tenants including Olam, JBS, Select Harvests Ltd (ASX: SHV), Stone Axe, Australian Agricultural Company Ltd (ASX: AAC) and Treasury Wine Estates Ltd (ASX: TWE).

I like how the ASX dividend stock regularly invests in its farming portfolio to improve the underlying value of the farm and increase its rental potential. Currently, it's developing macadamia orchards.

Good passive income

Despite the challenges of higher interest rates, the business has been able to deliver investors a consistent level of passive income.

In the last few years, Rural Funds has given unitholders 11.73 cents per unit, annually.

It's expecting to pay an annual distribution per unit of 11.73 cents in FY26, translating into a potential distribution yield of 5.75%.

Considering interest rates are rising again, I wouldn't be surprised if the business pays another 11.73 cents per unit in the 2027 financial year. That would be another distribution yield of 5.75%.

Excellent discount

What's a good price to pay for this business?

It's hard to know what a property is worth unless you actually go to sell it.

Rural Funds regularly tells investors about what its underlying value is, called the adjusted net asset value (NAV). It's 'adjusted' to take into account the market value of the water entitlements.

The ASX dividend stock reported its adjusted NAV was $3.10 at 31 December 2026, meaning it's currently trading at a discount of around 34%, which is a great value to buy at.

The post Is this the best ASX dividend stock to buy for passive income? appeared first on The Motley Fool Australia.

That's because listed below are three top shares that Bell Potter thinks could be buys for income investors.

Here's what the broker is recommending to clients:

Cedar Woods Properties Limited (ASX: CWP)

Bell Potter continues to rate Cedar Woods as an ASX dividend share to buy.

It is one of Australia's leading property developers with a diverse portfolio. This includes subdivisions in emerging residential communities, high-density apartments, and townhouses in inner-city neighbourhoods.

The broker believes the company is well-positioned to benefit from Australia's chronic housing shortage. It expects this to underpin dividends per share of 38 cents in FY 2026 and then 41 cents in FY 2027. Based on its current share price of $7.36, this equates to 5.15% and 5.6% dividend yields, respectively.

Bell Potter has a buy rating and $9.65 price target on its shares.

Elders Ltd (ASX: ELD)

Another ASX dividend share that Bell Potter is bullish on is Elders.

It is an agribusiness company that provides rural and livestock services, agricultural inputs, and real estate services to Australia's farming sector.

Bell Potter believes the delivery on its system modernisation plan and backward integration initiatives, as well as the consolidation of Delta Agribusiness, will drive high double-digit earnings per share growth in FY 2026 and FY 2027.

With respect to income, the broker is forecasting fully franked dividends of 39 cents per share in FY 2026 and then 45 cents per share in FY 2027. Based on its current share price of $7.03, this would mean dividend yields of 5.5% and 6.4%, respectively.

Bell Potter has a buy rating and $9.00 price target on its shares.

Rural Funds Group (ASX: RFF)

A final ASX dividend share to consider according to Bell Potter is Rural Funds.

It is a property company that owns agricultural assets such as cattle properties, vineyards, and cropping land. Rural Funds leases these properties to high-quality tenants on long-term agreements with periodic rental increases built in.

Bell Potter is expecting the company to reward its shareholders with 11.7 cents per share dividends in both FY 2026 and FY 2027. Based on its current share price of $2.01, this would mean attractive 5.8% dividend yields.

The broker currently has a buy rating and $2.50 price target on its shares.

The post 3 ASX dividend shares to buy with 5% to 6% yields appeared first on The Motley Fool Australia.

If someone has significant money in superannuation, they could unlock $10,000 of monthly passive income (or even more).

I'm sure most people reading this would love for their superannuation to pay them $120,000 per year of passive income.

A key question is how much is needed in superannuation for that level of cash flow.

How much is needed to generate $10,000 monthly passive income?

It'll take a sizeable sum to make that much money, but the exact amount will depend on the size of the dividend yield. The bigger the dividend yield, the less that needs to be invested, though higher yields may not be safer and it could also mean less capital growth.

Nonetheless, there are plenty of appealing options for good dividend yields across the ASX share market, so I'd be very willing to invest in a business that has a dividend yield of 7% or more.

Let's look at three different scenarios. One where the portfolio dividend yield is 4%, one where it's 5.5% and one where it's 7%.  

To make $120,000 of annual passive income from superannuation (or outside super) with a 4% dividend yield, it would require a portfolio value of $3 million.

If the portfolio has a 5.5% dividend yield, then an investor would need a portfolio value of $2.18 million.

Finally, with a dividend yield of 7%, investors would need a portfolio value of $1.71 million.

Which ASX shares I'd buy for dividend

I think there are a number of compelling options that offer different dividend yield levels.

For example, businesses like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES) and Lovisa Holdings Ltd (ASX: LOV) offer a lower but growing dividend yield.

Businesses with a mid-range yield includes Rural Funds Group (ASX: RFF), Centuria Industrial REIT (ASX: CIP), L1 Long Short Fund Ltd (ASX: LSF) and MFF Capital Investments Ltd (ASX: MFF).

The higher-yield options I'd consider include WCM Global Growth Ltd (ASX: WQG), Hearts and Minds Investments Ltd (ASX: HM1), Charter Hall Long WALE REIT (ASX: CLW), Future Generation Australia Ltd (ASX: FGX) and Future Generation Global Ltd (ASX: FGG).

The post How much is needed in superannuation to target $10,000 of monthly passive income? appeared first on The Motley Fool Australia.

But where should you start?

Here are three ASX dividend shares that could be worth buying in May.

APA Group (ASX: APA)

The first ASX dividend share that could be a buy is APA Group.

It owns and operates energy infrastructure, including gas pipelines, storage assets, and related infrastructure across Australia.

The appeal here is that its earnings are tied more closely to contracted infrastructure usage than short-term movements in commodity prices. Gas still has a role to play in energy security, industrial demand, and firming electricity supply as renewable generation increases.

That gives APA a different type of income profile from traditional energy producers. It is more about the pipes and networks that move energy around the system.

With long-life infrastructure assets and contracted cash flows, APA remains a share that income-focused investors may want to keep on the radar.

Dicker Data Ltd (ASX: DDR)

Another ASX dividend share worth looking at is Dicker Data.

It is a technology distributor that connects major global vendors with resellers across Australia and New Zealand. Its partners include companies across hardware, software, cloud, cybersecurity, and infrastructure.

This makes it a different income idea from the usual banks, telcos, and infrastructure names. Dicker Data sits in the middle of the technology supply chain, benefiting as businesses continue to spend on digital systems.

The company has historically returned a large portion of earnings to shareholders through dividends, making it one of the more generous dividend payers on the local market.

For investors comfortable with a more cyclical income stream, Dicker Data offers dividend exposure linked to technology spending rather than consumer spending.

Rural Funds Group (ASX: RFF)

A third ASX dividend share that could be a top pick for income investors is Rural Funds Group.

It owns agricultural assets, including farmland and related infrastructure, which are leased to high-quality operators across different parts of the agriculture sector.

This structure gives investors exposure to farmland income without having to operate farms directly. Rental income is the key driver, while the underlying assets remain connected to long-term demand for food and agricultural production.

Weather, interest rates, and tenant performance can all influence sentiment toward the stock. But for investors seeking income from a less conventional part of the ASX, Rural Funds offers something different.

The post Where to invest $5,000 into ASX dividend shares in May appeared first on The Motley Fool Australia.

But which ASX dividend shares could be worth buying this month? Let's take a look at three that stand out as top picks for income investors:

Charter Hall Retail REIT (ASX: CQR)

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

This real estate investment trust owns a portfolio of convenience-based retail properties. These are not the large discretionary shopping centres that rely heavily on fashion and luxury spending. Instead, the portfolio is focused on properties anchored by supermarkets and everyday retailers.

That distinction is important. People still need groceries, pharmacy products, and essential services regardless of the broader economic backdrop. This can make convenience retail more resilient than some other areas of commercial property.

Charter Hall Retail REIT also benefits from long leases and a tenant base that includes major supermarket operators. This provides a level of rental visibility, which is important for income generation.

With its focus on essential retail property, Charter Hall Retail REIT offers dividend exposure tied to everyday consumer spending rather than big-ticket purchases.

Rural Funds Group (ASX: RFF)

Another ASX dividend share worth considering in May is Rural Funds Group.

It is a property group with exposure to agricultural assets. Its portfolio includes farmland and related infrastructure leased to operators across different agricultural sectors.

This gives it a different income profile from traditional office, retail, or industrial property. Rental income is backed by agricultural land, which can provide diversification away from more common property exposures.

The appeal of Rural Funds is that it gives investors access to farmland without having to own or operate farms directly. The group collects rent from tenants, while the underlying assets remain tied to long-term demand for food and agricultural production.

Agriculture can still be affected by weather, commodity prices, and operating conditions. But the leased structure gives Rural Funds a clearer income model than direct farming exposure.

For investors seeking income from real assets, Rural Funds brings something different to the ASX dividend landscape.

Transurban Group (ASX: TCL)

A third ASX dividend share that could be a top pick for income investors is Transurban Group.

It operates toll roads in Australia and North America. The company's assets sit in major urban corridors where traffic demand is supported by population growth, commuting, freight, and airport access.

Traffic volumes can fluctuate, particularly during weaker economic periods or disruptions. But over longer periods, urban growth and congestion tend to support demand for well-located road infrastructure.

With a portfolio of large-scale toll roads and exposure to long-term population growth, Transurban arguably remains one of the ASX's most attractive income shares.

The post 3 excellent ASX dividend shares to buy in May appeared first on The Motley Fool Australia.

There are a number of risks facing the Australia economy at the moment, such as a danger of recession (with fuel worries, elevated inflation and higher interest rates).

So, with that in mind, below are two compelling ASX shares worth owning with a $2,000 investment.

Centuria Industrial REIT (ASX: CIP)

I'm positive on the prospects of some real estate investment trusts (REITs) that have supportive rental income tailwinds.

Industrial properties in metropolitan locations are in high demand, with very low vacancy rates. There are numerous supportive tailwinds such as Australia's growing population, increasing adoption of online shopping, refrigerated space requirements for food and medicine, the on-shoring and improvements of supply chains, and data centres.

The combination of a low vacancy rate and solid demand is helping drive the high-yield ASX 300 share's rental income higher. In the first half of FY26, its net operating income (NOI) grew by 5.1% on a like-for-like basis.

With a weighted average lease expiry (WALE) of around seven years, it's clear the business has locked in a lot of rental income for the next several years.

It looks undervalued to me because its latest net tangible assets (NTA) was $3.95 – it's trading at a discount of close to 75% to this, at the time of writing. It seems to be trading at a big discount, even allowing for the headwind of higher interest rates.

In terms of the yield, the business is expecting to grow its FY26 distribution by 3% to 16.8 cents per unit, which translates into a distribution yield of 5.6%.

Rural Funds Group (ASX: RFF)

Rural Funds is anther high-yield ASX 300 share that is a solid option for passive income.

It's a REIT that owns various farmland across Australia, including cattle, almonds, macadamias, vineyards and cropping. I like the diversification of this strategy and how it has lowered the risk of being too exposed to one sector.

This business has an incredibly long WALE for the REIT sector, with that metric currently sitting at around 13 years.

The REIT's rental income is steadily organically growing thanks to rental indexation that either has fixed increases or the rises are linked to inflation, plus market reviews.

Rural Funds looks cheap to me. It reported an adjusted net asset value (NAV) of $3.10 as at 31 December 2025, meaning it's trading at discount of approximately 35% to that value. Again, higher interest rates are a headwind, but I think there's a major valuation discount here.

The business expects to pay an annual distribution per unit of 11.73 cents in FY26. This translates into a forward distribution yield of 5.8%, at the time of writing.

The post How I'd invest $2,000 in high-yield ASX 300 shares appeared first on The Motley Fool Australia.

In fact, the person earning $60,000 per year may feel that becoming a millionaire is too much of a financial stretch.

For multiple reasons, I believe it's within reach for many people. I'll explain why.

Compounding

One of the most powerful things that most people have on their side is time.

Compounding is a powerful force where interest earns interest. The more years that money can compound, the more it can grow itself, rather than needing major financial contributions from ourselves.

In my view, the share market is a wonderful place to build wealth given the strong long-term returns. The fact that it pays dividends and allows us to steadily add small investments as the months and years go by makes it very effective.

Becoming a millionaire is certainly a big goal to aim for and there's no get-rich-quick scheme.

Every household budget is different, so it's hard to say exactly how much each Australian has to regularly invest. Some Aussies may not feel there's any room in their budget to invest – how can they ever reach $1 million?

Thankfully, Australia's mandatory retirement savings can play a big role.

Superannuation

Currently, the superannuation rate on employee earnings is 12%. On a $60,000 salary, that implies $7,200 would be contributed to superannuation on an annualised basis. Removing the 15% tax on that contributions still leaves around $6,100 to invest each year.

Personally, I'd prefer to utilise a super fund's 'high growth' option or invest in international shares because I'm expecting stronger longer-term returns from those ideas. Alternatively, Australians can pick individual investments if they sign up for a particular type of superannuation.

If someone invests $6,000 per year and it returns an average of 9% per year, it would become $1.08 million in less than 33 years.

Therefore, just with superannuation alone, a 25 year old Australian on a $60,000 salary could reach $1 million before 60-years-old.

Regular savings

But, we don't need to rely on superannuation for all of the investing. Reaching millionaire status could be achieved using a combination of both superannuation and non-superannuation wealth.

Investing outside of superannuation could mean putting something like $500 per month into shares that can help build wealth.

Perhaps capital growth is the goal. Therefore, an exchange-traded fund (ETF) like VanEck MSCI International Quality ETF (ASX: QUAL), VanEck Morningstar Wide Moat ETF (ASX: MOAT) or Vanguard MSCI Index International Shares ETF (ASX: VGS) could be a compelling option.

Investors may be looking for passive income, which is why a name like MFF Capital Investments Ltd (ASX: MFF), Centuria Industrial REIT (ASX: CIP), Rural Funds Group (ASX: RFF) and WCM Global Growth Ltd (ASX: WQG) could be top picks.

Or perhaps a mixture of capital growth and dividend income is most compelling. This is why Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) appeals to me so much.

The post How to become a millionaire on a $60,000 salary appeared first on The Motley Fool Australia.

Three that could be top buys according to analysts are listed below. Here's what they are recommending to clients and the sort of yields you could expect:

IPH Ltd (ASX: IPH)

The first ASX dividend share that could be a buy according to analysts is IPH.

It is an international intellectual property services group with a diverse client base of Fortune Global 500 companies and other multinationals, public sector research organisations, SMEs, and professional services firms.

Morgans is bullish on the company and has a buy rating and $5.39 price target on its shares.

As for income, the broker is forecasting fully franked dividends of 38 cents per share in FY 2026 and then 39 cents per share in FY 2027. Based on its current share price of $3.59, this would mean generous dividend yields of 10.6% and 10.9%, respectively.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that could be a buy is Rural Funds Group.

It is an agricultural real estate investment trust (REIT) that owns farmland and agricultural infrastructure. Its assets include almond orchards, cattle properties, vineyards, and macadamia farms across Australia.

Bell Potter is a fan of the company and has put a buy rating and $2.50 price target on its shares.

Rural Funds has a long history of paying steady distributions to investors and Bell Potter expects this trend to continue. It is forecasting dividends per share of 11.7 cents in FY 2026 and FY 2027. Based on its current share price of $2.04, this would mean dividend yields of 5.7%.

Universal Store Holdings Ltd (ASX: UNI)

A final ASX dividend share to consider buying for its generous yield is Universal Store.

Universal Store is a youth fashion retailer operating across multiple brands. Despite the challenging retail backdrop in recent years, it has continued to generate strong sales and earnings.

The team at Morgans is also positive on this one and sees it as a top pick in the small-cap space.

As a result, it has put a buy rating and $10.60 price target on the company's shares.

With respect to payouts, Morgans is forecasting fully franked dividends of 41 cents per share in FY 2026 and then 46 cents per share in FY 2027. Based on its current share price of $7.34, this would mean dividend yields of 5.6% and 6.25%, respectively.

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

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.

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.

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 S&P/ASX 300 Index (ASX: XKO) shares – there are plenty of options within that index for income.

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

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.

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

The amount required to be invested would depend on the dividend yield (or interest rate) of the investments.

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

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.

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

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

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

Where I'd invest for a high yield

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.

I'd look at names like MFF Capital Investments Ltd (ASX: MFF), L1 Long Short Fund Ltd (ASX: LSF), WCM Global Growth Ltd (ASX: WQG), Charter Hall Long WALE REIT (ASX: CLW), Centuria Industrial REIT (ASX: CIP), Rural Funds Group (ASX: RFF), Universal Store Holdings Ltd (ASX: UNI) and Hearts and Minds Investments Ltd (ASX: HM1).

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.

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