How to get started

Generating substantial earnings from dividends does however demand substantial amounts of savings, and getting there can seem an insurmountable task.

Therefore, it's good to start relatively small, and use the power of compound interest to your advantage.

Today, I'm looking at what can be built up from a base of $20,000.

To generate the target of $5,000 per year in dividend income, you'd be looking at amassing about $100,000 in capital.

I'd argue you could generate about 7% per year from a combination of capital increases – share price growth – and dividends.

If you start with $20,000 in savings, I'd aim to save a further $100 per week.

Over a nine-year period, and assuming a return of 7% per year, you would have $99,055 at the end of this time.

If you'd like to tweak the calculations yourself, head over to the Federal Government's Moneysmart calculator and have a play around.

Once you hit the $100,000 mark, if you choose, you could start taking your dividends out as an income stream rather than reinvesting them.

So at this stage, what sort of stocks would you be looking to own?

Building an income-generating portfolio

Firstly, it's a good idea to keep in mind whether the stocks are paying franked dividends.

A fully-franked share comes with a 30% tax credit for the tax already paid by the company, meaning you do not have to pay your full tax rate on the dividends earned.

In terms of trying to hit our target of $5,000 a year, you'd need to be aiming for a dividend yield of 5% – but keep in mind this doesn't take into account any tax you'd need to pay.

Tolls roads operator Atlas Arteria Ltd (ASX: ALX) is a reasonable company to consider, as it is currently paying a 9% yield, with brokers expecting a relatively strong yield to be maintained for the next few years.

Gas pipelines operator APA Group Ltd (ASX: APA) is also a good fit, paying a 5.39% dividend, albeit only 31% franked.

Investment company Wam Active Ltd (ASX: WAA) is paying 7.4%, while Argo Investments Ltd (ASX: ARG) is paying 4.18%.

Among the banks, Westpac Banking Corp (ASX: WBC) is paying 4.47% while Bank of Queensland Ltd (ASX: BOQ) is paying 6.1%.

Retailer Universal Store Holdings Ltd (ASX: UNI) also has a healthy dividend yield at 6.22%.

So as you can see, there are plenty of stocks around which can deliver decent yields once your savings have hit the target.

The post Starting with $20,000, how to build a portfolio generating $5,000 a year in passive income appeared first on The Motley Fool Australia.

Yes, many investors may be drawn to names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and Woolworths Group Ltd (ASX: WOW). But these blue-chips are unlikely to keep growing quickly because of their size and how mature their markets already are.

The fund managers of listed investment company (LIC) WAM Active Ltd (ASX: WAA) have outlined two businesses that have promising outlooks.

WAM Active looks for mispriced ASX shares. Let's look at two of the latest businesses that were highlighted within the portfolio.

Dxn Ltd (ASX: DXN)

The first company that Wilson Asset Management (WAM) talked about was DXN, a prefabricated data centre manufacturer and operator, scaled across the Asia-Pacific region.

WAM noted that the DXN share price increased in August after the company announced a $4.1 million contract with Melbourne Airport to design, manufacture and commission a prefabricated edge data centre facility.

The fund manager also noted that DXN's FY26 result also highlighted a record order backlog of $40.9 million and growing demand for its artificial intelligence- ready modular data centre solutions.

DXN also secured its second AI high-performance computing contract, providing confidence in its growth outlook.

Overall, WAM believes that the ASX share is well-positioned to benefit from accelerating investment in AI infrastructure, supported by an expanding order book, increasing manufacturing capacity and a growing presence across the Asia Pacific region.

Cobre Ltd (ASX: CBE)

Cobre was the other ASX share that Wilson Asset Management mentioned from the WAM Active portfolio. WAM described Cobre as a global copper company focused on exploration and production in Chile's Atacama region and Botswana's Kalahari Copper Belt.

The fund manager noted that the Cobre share price rose strongly during the month after several positive corporate developments.

Pleasingly, the company was included in the MSCI Global Micro Cap Index, which is expected to enhance the ASX share's profile among international investors and support broader institutional ownership. Its inclusion took effect on 1 September 2026.

On 10 August, Rothschild & Co was appointed as a strategic advisor to further develop the company's capital markets positioning.

At the end of the month, Cobre also strengthened its position in the Sierra Atacama copper project by securing majority ownership and increasing its exposure to future production and cash flow.

Looking ahead, WAM continues to see value in Cobre, driven by its growing exposure to the Sierra Atacama copper project and multiple operational catalysts in the coming months.

Of course, these aren't the only ASX shares out there that could be great buys today.

The post Fund managers: 2 exciting ASX shares that could be excellent buys appeared first on The Motley Fool Australia.

Aiming for a $2,500 per week passive income stream from your superannuation savings would give a comfortable retirement – at least as measured by the Association of Superannuation Funds of Australia, which estimates singles will need $55,923 per year to fund a comfortable retirement.

The amount you deem a comfortable retirement will depend on the sort of lifestyle you are after, but the ASFA standard, which assumes you own your own home, envisages the ability to pay for top-level health cover, to own and maintain a reasonable car, and to travel occasionally.

Superannuation by the numbers

So how much superannuation would you need to generate $2,500 per week, or $130,000 per year, in passive income?

For simplicity's sake, I will assume that a retiree is living off of dividends and not drawing down any capital.

If this were the case, if it was possible to earn a 10% dividend yield – a lofty ambition – you would need $1.3 million in superannuation.

If you were earning 5%, that figure would double to $2.6 million.

I'd argue that, taking into account franking credits, a return of about 7.5% is a realistic proposition.

In this case, you'd need a superannuation balance of $1.73 million.

Stocks in focus

So, what sort of companies might pay dividends that would help hit the $2,500-per-week target?

Personally, I'm a fan of the funds in the Wilson Asset Management stable, including WAM Strategic Value Ltd (ASX: WAR), which pays a fully franked dividend yield of 5.6%, and WAM Active Ltd (ASX: WAA), which pays 6.98%.

Dividend-focused ETFs can be a good choice also, with Betashares Australian Dividend Harvester (ASX: HVST) paying 5.48% and the Global X S&P/ASX200 High Dividend ETF (ASX: ZYAU) paying 4.25%.

Universal Store Holdings Ltd (ASX: UNI) has also traditionally paid high dividends with a current yield of 4.97%, while among the miners Fortescue Ltd (ASX: FMG) is paying 6.09%.

And among the banks, Westpac Banking Corp (ASX: WBC) is paying 4.52% fully franked, while Bank of Queensland Ltd (ASX: BOQ) is paying 6.25% also fully franked.

How to boost your superannuation balance

If you're a bit low on your superannuation at the moment, consider either salary sacrificing into your super, or making a concessional contribution.

This year, the concessional contributions cap has increased to $32,500, meaning you can contribute up to this amount and pay only 15% tax. However, keep in mind that the $32,500 level includes any contributions made by your employer and any salary sacrifice amounts.

The post How much is needed in superannuation for $2,500 in weekly passive income? appeared first on The Motley Fool Australia.

As the old adage says, failing to plan is planning to fail.

The good news is that even if you start relatively late, there are strategies you can use to boost your super to a level where it will afford you a comfortable retirement.

How much superannuation do you need for $1500 per week in passive income?

Today we're looking at the scenario where you are aiming to generate $1500 per week in passive income from your superannuation.

So to start with, is this considered a comfortable retirement? The short answer is yes.

The Association of Superannuation Funds of Australia has calculated how much is needed for singles and couples to have a comfortable retirement, and the figures come out at $55,923 for singles and $78,566 per year for couples.

These figures assume you own your own home and will draw a part pension, but they are well under the $1500 per week, or $78,000 per year level we are looking at.

So, how much superannuation would you need to generate this amount?

Let's assume you can generate a 10% return on your investments. In this case, you'd need a $780,000 superannuation balance.

If you were generating just 5% you would need a balance of $1.56 million.

I'd argue that somewhere in the middle is achievable over time. So if you were generating a 7.5% return, you'd need a balance of $1.04 million.

What shares might help you achieve your passive income goal?

In terms of the shares you might want to have in your portfolio, you could look at listed investment trusts such as Charter Hall Retail REIT (ASX: CQR), which brokers expect to pay a return of better than 6% through to 2030, or Dexus Industria REIT (ASX: DXI), which is currently paying a healthy 6.97% yield.

Alternatively, financial services company Regal Partners Ltd (ASX: RPL) is paying a fully franked 7.42%.

Among the Wilson Asset Management funds, WAM Strategic Value Ltd (ASX: WAR) is paying a yield of 5.65%, while WAM Active Ltd (ASX: WAA), recently increased its dividend and is paying out 6.94%.

Among the banks, Westpac Banking Corp (ASX: WBC) is paying 4.35% fully franked, while Bank of Queensland Ltd (ASX: BOQ) is paying 6.19% also fully franked.

Among Australian blue-chip stocks, Telstra Ltd (ASX: TLS) is paying 4.39%, and miner BHP Group Ltd (ASX: BHP) is paying 3.19%.

How to increase your superannuation balance

If you're keen to increase your superannuation balance, investigate the viability of making extra concessional contributions up to the $32,500 cap, with these contributions taxed at just 15%.

The $32,500 cap includes any contributions from your employer and amounts contributed through salary sacrifice.

If your superannuation balance was under $500,000 in the last financial year, you can also carry forward up to five years' worth of unused concessional contribution amounts. You can find out how much you can contribute under this rule by logging in to your myGov account.

Non-concessional contributions of up to a further $130,000 can be made each year also.

The post How much is needed in superannuation for $1500 in weekly passive income? appeared first on The Motley Fool Australia.

WAM is in charge of a number of listed investment companies (LICs) such as WAM Capital Ltd (ASX: WAM), WAM Microcap Ltd (ASX: WMI) and WAM Active Ltd (ASX: WAA).

The investment team in charge of the WAM portfolios have picked out a few stocks that could be among the most exciting ideas on the ASX with a possible catalyst that could send the share price higher.

Let's look at two of those ideas.

Artrya Ltd (ASX: AYA)

WAM described Artrya as a medical technology company that uses AI to assist clinicians in the diagnosis and management of coronary artery disease.

The fund manager noted that the Artrya share price declined during July, which WAM suggested reflected a "knee-jerk" reaction from investors to the pace of revenue conversion from customer deployments, a view management has subsequently clarified.

WAM also said that market sentiment towards AI-related growth companies during the period weighed on the Artrya share price.

The investment team highlighted that Artrya has continued to progress in its US commercial rollout, with the company announcing that it has begun generating revenue from its second active US commercial customer and that its Salix platform was deployed in a major US healthcare network.

WAM believes the company continues to make strong progress on building a pipeline of further potential customers, while progressing FDA approval of its second blood flow module, which of which represent "key near-term catalysts" along with potential inclusion inside the S&P/ASX 300 Index (ASX: XKO).

Advanced Innergy Holdings Ltd (ASX: AIH)

Another ASX share that could be an attractive investment right now is the ASX share Advanced Innergy. This company designs, manufactures and installs specialised insulation, fire protection, buoyancy and cable protection systems for the global energy, marine and industrial sectors.

WAM suggested that the Advanced Innergy share price went backwards during July as the market digested the earnings and balance sheet implications of its $90 million acquisition of Matrix Composites & Engineering.

The fund manager thinks the acquisition is strategically attractive, combining the second and third largest participants in the sector.

However, the market reacted negatively, reflecting concerns about the earnings multiple paid for the acquisition, the expected near-term earnings contribution from Matrix and the increase in debt levels due to the acquisition. The timing of Middle East projects and higher input costs also contributed to near-term uncertainty.

WAM then said that synergies are expected to build over time as the businesses are integrated.

The fund manager concluded:               

We remain confident in Advanced Innergy Holdings as it continues to benefit from a strong order book and favourable industry fundamentals, which should support earnings growth as the acquisition is integrated and synergies are realised over time.

The post This fund manager thinks these ASX shares are buys and have big potential! appeared first on The Motley Fool Australia.

One of the great things about superannuation is that you can contribute to it on a tax-effective basis while you are working to boost your nest egg.

This year, the concessional contributions cap has increased to $32,500, meaning you can contribute up to this amount and pay only 15% tax.

Keep in mind that the $32,500 level includes any contributions made by your employer.

Another easy way to boost your contributions is to salary sacrifice out of your pay, with those amounts also contributing towards the $32,500 cap.

One of the downsides of contributing extra money to superannuation is that contributions are generally tied up until you turn at least 60; however, on the upside, earnings within your superannuation are only taxed at 15%, meaning your money compounds more effectively.

Now let's look at what exactly you'd need to generate the returns we're talking about.

How much is needed in superannuation for $2,000 in weekly passive income?

This amount on a weekly basis translates to $104,000 per year, which makes the maths a bit easier.

Let's say you were earning 5% on your nest egg. This would mean you'd need to divide the yearly amount by five, then multiply by 100 to get $2.08 million, which is how much you'd need to have invested to return $2000 a week.

If you earned 10% per week, the lump sum figure would drop to $1.04 million.

I'd suggest a dividend return of 7.5% is realistic, which would need a lump sum of $1.39 million.

What high-yielding shares paying 5% to 10% could I invest in?

When it comes to income-generating stocks, steady and reliable can be a great combination.

You might not get great capital returns, but hopefully the income stays steady.

One such stock that brokers are tipping to deliver returns of better than 6% through to 2030 is Charter Hall Retail REIT (ASX: CQR).

Keep in mind that this stock does not pay franking credits, which are also a good source of income once your tax rate drops to zero.

Dexus Industria REIT (ASX: DXI) is also paying a healthy 6.8%.

Personally, I'm also a fan of the Wilson Asset Management funds, such as WAM Strategic Value Ltd (ASX: WAR), which is paying a yield of 5.9%, rising to 8.4% once franking credits are included, and WAM Active Ltd (ASX: WAA), which also recently increased its dividend and is paying out an identical yield to WAM Strategic Value.

Regal Partners Ltd (ASX: RPL) is also a good option, with broker Morgans forecasting the financial services company will pay out 8.1% for this year, followed by 6.9% and 7.8% in the following years.

Among resource stocks, Fortescue Ltd (ASX: FMG) is paying a 6.77% yield while Woodside Energy Group Ltd (ASX: WDS) is paying 5.18%, both fully franked.

Pipeline operator APA Group Ltd (ASX: APA) is paying a 5.85% yield while toll roads company Atlas Arteria Ltd (ASX: ALX) is paying a hefty 8.04%, however both of these dividends are unfranked.

Among the banks, Westpac Banking Corp (ASX: WBC) is paying 4.06% fully franked, while Bank of Queensland Ltd (ASX: BOQ) is paying 6.06% also fully franked.

This is by no means an exhaustive list of dividend stocks to consider, but consider it somewhere to start.

The post How much is needed in superannuation for $2,000 in weekly passive income? appeared first on The Motley Fool Australia.

But what is a comfortable level of income?

How much superannuation do you really need?

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

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

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

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

So let's look at the numbers.

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

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

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

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

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

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

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

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

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

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

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

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

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

All three are paying healthy, increased dividends, all fully franked, off the back of strong returns from the funds' underlying investments.

Dividend increases across the board

Most recently, the WAM Strategic Value Ltd (ASX: WAR) fund reported this week that it would pay an increased, fully-franked dividend of 6.5 cents per share, up 8.3% on the previous year and representing a yield of 5.9%.

This increases to 8.4% once franking credits are factored in.

The fund said in a statement to the ASX that its portfolio increased by 9.5% in the 12 months to 30 June, outperforming the S&P/ASX All Ordinaries Accumulation Index (ASX: XAO) by 3.8%.

Chair and Lead Portfolio Manager Geoff Wilson said:

During the year we realised value from a number of holdings as discounts narrowed, supported by increased demand, corporate activity and capital management initiatives across the listed investment company (LIC) and listed investment trust (LIT) sector, alongside direct discounted asset plays.

The fund said further:

The investment portfolio's allocation to cash and cash equivalents was 28.8% at 30 June 2026, reflecting the investment team's disciplined approach to capital allocation amid heightened market uncertainty. Together with proceeds from realised investments, this liquidity enables the investment team to deploy capital selectively into attractive discounted opportunities as they emerge.

WAM Active Ltd (ASX: WAA) also had a good year, with its investment portfolio increasing by a record 75.5% in the financial year.

WAM Active is paying the same return as WAM Strategic Value; however, if you include capital gains, it returned 40.2% for the year to the end of June.

Lead Portfolio Manager Oscar Oberg said:

The investment portfolio outperformance was driven by exposure to four key themes: critical minerals, electrification and grid infrastructure, precious metals and artificial intelligence (AI). Equity markets over the 2026 financial year were characterised by elevated volatility, rapid shifts in macroeconomic expectations and pronounced rotation across sectors and themes. Changes to interest rate outlooks, geopolitical developments and the accelerating AI adoption contributed to periods where company fundamentals were often overshadowed by broader market positioning. These conditions created dislocations across parts of the market, particularly in smaller and less well-covered companies, providing opportunities for the investment team to identify mispriced securities using WAM Active's market-driven approach.

This fund pays out regular dividends

And finally, monthly dividend payer WAM Income Maximiser Ltd (ASX: WMX) is increasing its dividend month on month to the point where, in December, it will be paying an annualised, grossed-up yield on its pre-tax net tangible assets of 7.1%.

WAM Income Maximiser has a 59.5% portfolio allocation to equities and 40.5% to debt.

The post These ASX dividend funds have been quietly increasing their payouts appeared first on The Motley Fool Australia.

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

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

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

Let's run the numbers

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

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

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

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

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

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

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

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

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

So what sort of shares would help you get there?

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

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

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

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

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

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

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

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

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

Time to do the sums on your superannuation

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

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

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

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

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

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

So, how realistic is a 7% return?

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

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

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

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

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

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

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

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

They have a number of funds listed on the ASX, including WAM Income Maximiser Ltd (ASX: WMX), which pays out monthly, WAM Microcap Ltd (ASX: WMI), which is currently paying a trailing dividend of 7.1%, and WAM Active Ltd (ASX: WAA).

Good news for this ASX dividend performer

Today, I'm going to focus on WAM Active because it recently reported strong investment returns, which have translated into a strong final dividend and a special dividend, both of which are still on the table, with record dates much later this year.

WAM said in its recent statement to the ASX that its investment portfolio increased by a record 75.5% in the year to the end of June, outperforming the Bloomberg AusBond Bank Bill Index (Cash) and the S&P/ASX All Ordinaries Accumulation Index by 71.6% and 69.8%, respectively.

Chairman Geoff Wilson said regarding the result:

FY2026 is the strongest year in WAM Active's history since the Company was established in January 2008. This record result reflects the strength of WAM Active's disciplined and flexible investment strategy, outstanding stock selection and active portfolio management. We remained focused on delivering strong long term returns and a growing stream of fully franked dividends for shareholders.

The WAM board declared a fully-franked final dividend of 3.2 cents per share and a special dividend of 2 cents per share.

The ex-dividend dates for the fund's ordinary dividend and special dividend are 17 November and 4 December, respectively, meaning there's plenty of time to buy if you're keen on those dividends.

So, let's look at our $1,000 target. In order to reap this from the upcoming dividends, you'd need to hold 19,230 WAM Active shares.

It's also useful to look at it from a full-year perspective.

WAM Active will pay a total of 9.4 cents per share, fully franked over the full year, including the recently declared dividends.

That would translate to $1807.62 in dividends, or as the company said in its recent statement, a fully-franked dividend yield of 8.6% and a grossed-up dividend yield of 12.3%.

While past performance is not a predictor of future performance where investing is concerned, that's an impressive effort over the past year by any measure.

Fund invests into major macroeconomic themes

The fund's lead portfolio manager, Oscar Oberg, explained that the fund's outperformance was driven by exposure to four key themes: critical minerals, electrification and grid infrastructure, precious metals, and artificial intelligence (AI).

He added:

Equity markets over the 2026 financial year were characterised by elevated volatility, rapid shifts in macroeconomic expectations and pronounced rotation across sectors and themes. Changes to interest rate outlooks, geopolitical developments and the accelerating AI adoption contributed to periods where company fundamentals were often overshadowed by broader market positioning. These conditions created dislocations across parts of the market, particularly in smaller and less well-covered companies, providing opportunities for the investment team to identify mispriced securities using WAM Active's market-driven approach.

The post This ASX dividend stock could pay me $1,000 this year. Here's how many shares I'd need appeared first on The Motley Fool Australia.

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

Superannuation calculations can help achieve your goal

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

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

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

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

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

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

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

How much can be generated from superannuation savings?

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

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

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

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

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

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

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Fund outperforms its benchmarks by a healthy margin

The fund said in a statement to the ASX that its investment portfolio increased by a record 75.5% in the year to the end of June, outperforming the Bloomberg AusBond Bank Bill Index (Cash) and the S&P/ASX All Ordinaries Accumulation Index by 71.6% and 69.8%, respectively.

Chairman Geoff Wilson said regarding the result:

FY2026 is the strongest year in WAM Active's history since the Company was established in January 2008. This record result reflects the strength of WAM Active's disciplined and flexible investment strategy, outstanding stock selection and active portfolio management. We remained focused on delivering strong long term returns and a growing stream of fully franked dividends for shareholders.

The WAM board has declared a fully-franked final dividend of 3.2 cents per share and a special dividend of 2 cents per share.

The fund added:

Including the special fully franked dividend of 1.0 cents per share announced in January 2026, shareholders will receive total fully franked dividends for FY2026 of 9.4 cents per share. The investment portfolio performance, together with the fully franked dividends paid during the year, delivered a record total shareholder return of 40.2% for the year to 30 June 2026.

WAM said the total dividends for FY26 represented a fully-franked dividend yield of 8.6% and a grossed-up dividend yield of 12.3%.

Fund leans into key themes

The fund's lead portfolio manager, Oscar Oberg, said the fund's outperformance was driven by exposure to four key themes: critical minerals, electrification and grid infrastructure, precious metals, and artificial intelligence (AI).

He added:

Equity markets over the 2026 financial year were characterised by elevated volatility, rapid shifts in macroeconomic expectations and pronounced rotation across sectors and themes. Changes to interest rate outlooks, geopolitical developments and the accelerating AI adoption contributed to periods where company fundamentals were often overshadowed by broader market positioning. These conditions created dislocations across parts of the market, particularly in smaller and less well-covered companies, providing opportunities for the investment team to identify mispriced securities using WAM Active's market-driven approach.

Dividends are still on the table

The ex-dividend dates for the fund's ordinary dividend and special dividend are 17 November and 4 December, respectively.

WAM shares are changing hands for $1.12, up 36.2% over a 12-month period.

The post This fund's 75% return smashed its benchmark, and it's celebrating with a special dividend appeared first on The Motley Fool Australia.

It's quite easy to underestimate how much of a difference compounding can make to a company's financial progress and what that can do for shareholders.

Fund managers from the listed investment company (LIC) WAM Active Ltd (ASX: WAA) have revealed two compelling ideas. WAM Active looks for mispriced opportunities in the Australian market.

Impressively, the WAM Active portfolio has returned an average of 14.4% per year since inception in January 2008, before fees, expenses and taxes. That shows the investment team are adept at picking ideas. Let's look at the two names that WAM highlighted.

Solstice Minerals Ltd (ASX: SLS)

WAM described Solstice Minerals as a copper-gold exploration company advancing its Nanadie Project in Western Australia.

Last month, the company released updated drilling results from its first diamond drilling program. This confirmed the mineralised system extends to a depth of more than 600 metres and remains open at depth.

The fund manager also noted the ASX share's drilling showed mineralisation continues well below the existing resource, which highlights the potential for the deposit to grow.

WAM said these results build on earlier drilling and continue to demonstrate the scale and continuity of the system.

The investment team concluded that the project currently hosts a 40.4 million tonnes mineral resource estimate and WAM believes the latest results highlight the potential for the resource to grow as drilling continues.

Southern Cross Electrical Engineer Ltd (ASX: SXE)

The other ASX share that WAM highlighted in the WAM Active portfolio was Southern Cross Electrical Engineering, a national provider of electrical, instrumentation and communications services. It also has growing exposure to data centres, infrastructure and electrification projects.

The fund manager noted that, last month, the company upgraded its earnings guidance and strengthened its balance sheet with a capital raising to support further growth.

WAM also said that the ASX share secured more than $150 million of new projects, including work linked to data centre construction.

With that update, Southern Cross Electrical Engineering upgraded its guidance for FY26 underlying operating profit (EBITDA) to at least $75 million, while introducing FY27 EBITDA guidance of at least $100 million.

WAM concluded:               

We believe the company is well positioned to continue growing earnings, supported by demand for data centre capacity and broader electrification trends, with the strengthened balance sheet providing flexibility to pursue further growth opportunities.

The post Leading fund manager reveals 2 exciting ASX shares to buy appeared first on The Motley Fool Australia.

When a company is growing revenue rapidly, there is a strong chance that operating leverage will improve, and profit margins can increase. Typically, investors usually value a business based on how much net profit it could make in the future,

The investment team from WAM Active Ltd (ASX: WAA) have outlined a couple of compelling ASX shares that could be great opportunities today. They are usually looking for mispriced opportunities in the Australian market.

EchoIQ Ltd (ASX: EIQ)

WAM described EchoIQ as an Australian medical technology company focused on improving cardiology decision-making through AI to detect structural heart issues in echocardiograms.

The fund manager noted that the company has received US Food and Drug Administration (FDA) approval for severe aortic stenosis detection, with additional FDA clearance for heart failure detection expected in the near term.

WAM noted that the EchoIQ share price rose 44% in May after the ASX growth share announced an expanded resale and distribution agreement with the Mount Sinai Health System (one of the leading cardiology programs in the US) in late April.

The investment team explained that the agreement provides meaningful clinical validation and further de-risks the FDA pathway. FDA clearance for heart failure is expected in the coming weeks, which would significantly expand EchoIQ's US addressable market and support a "material uplift" in revenue generation.

WAM said:

We believe additional hospital signings and strategic partnership discussions with Australian and US-based parties remain key near-term catalysts for further share price re-rating.

Megaport Ltd (ASX: MP1)

The other ASX growth share that WAM highlighted is Megaport, a Brisbane-headquartered network-as-a-service provider. After its 2025 acquisition of Latitude.sh, it also operates a global on-demand compute platform.

The company is positioned as one of the few ASX (growth) shares that has direct exposure to the infrastructure supporting artificial intelligence (AI) adoption.

Last month, the ASX growth share announced three binding contracts with two US AI customers, with a total contract value (TCV) of approximately US$183 million and annualised recurring revenue (ARR) of approximately US$65 million.

Two of those three contracts have 36-month terms, providing visibility into revenue. The Megaport share price increased by 28% on the day, exceeding the contract value.

The agreements validate the strategic rationale for the Latitude.sh on-demand ARR increasing 31% since the acquisition, compute is becoming a key growth driver.

WAM concluded:               

We continue to hold Megaport, with the May contract wins supporting the FY2026 and FY2027 earnings outlook, and further customer announcements representing a credible near-term catalyst.

The post 2 ASX growth shares to buy with big growth potential! appeared first on The Motley Fool Australia.

A small group of ASX shares have ex-dividend dates this month.

In order to receive a dividend, you must own the ASX share before its ex-dividend date.

So, if you're looking for some extra income before the end of the financial year (EOFY), these ASX shares provide options.

Ex-dividend dates also provide another opportunity.

Share prices usually fall on ex-dividend dates, so you may be able to pick up a stock you've been watching for a lower price.

Among the shares going ex-dividend this month are ASX agriculture stock Select Harvests Ltd (ASX: SHV).

The almond producer will trade ex-dividend on 17 June and pay investors 3.5 cents per share on 15 July.

Bell Potter has a buy rating on Select Harvests shares with a 12-month price target of $5.30, compared with $3.86 currently.

ASX 200 iron ore share Champion Iron Ltd (ASX: CIA) has an ex-dividend date of 11 June and will pay 2 cents per share on 8 July.

RBC Capital has a buy rating on Champion Iron with an $8.11 target, compared to $4.30 per share today.

Several of Wilson Asset Management's listed investment companies (LICs) will also go ex-dividend this month.

These include WCM Global Growth Ltd (ASX: WQG), which will trade ex-dividend on 10 June.

WCM Global Growth investors will receive a dividend of 2.2 cents per share on 30 June.

ASX shares with ex-dividend dates in June

The post 15 ASX shares going ex-dividend before EOFY appeared first on The Motley Fool Australia.

The investment team of the listed investment company (LIC) WAM Active Ltd (ASX: WAA) have outlined two ASX stocks that look like appealing investments with their outlooks and the current valuations.

Miners may not have the strongest economic moats on the ASX, but they do have the ability to deliver big returns when resource prices increase and/or when projects are found and developed.

Let's dig into why the experts at WAM like these two ASX mining shares.

Solstice Minerals Ltd (ASX: SLS)

The fund manager said that Solstice Minerals is advancing the Nanadie copper-gold project near Meekatharra in Western Australia.

WAM noted that, in April, the company released visual results of deeper drilling below earlier high-grade copper hits.

The fund manager said these results suggest the mineral system extends well below the current resource, highlighting the deposit's potential scale.

In the near-term, WAM thinks that there is potential upside for the Solstice Minerals share price as "drilling helps define a larger resource, while laboratory results confirming grade and continuity build confidence in a pathway towards an approximate 250 million tonne deposit." The fund manager said this suggests the ASX mining share is undervalued relative to its peers on comparable multiples.

WAM said that it remains bullish on copper, supported by the energy transition and electrification themes.

Core Lithium Ltd (ASX: CXO)

The other ASX mining share that the experts highlighted was Core Lithium, which ones 100% of the Finniss lithium project in the Northern Territory. It also has exploration exposure across the Northern Territory and South Australia in base metals, rare earths and gold.

WAM noted that the share price rallied in April on two supportive developments.

First, a 20,000 tonne sale of fine-particle ore ready for shipment to Glencore's international trading arm at approximately $405 per tonne, together with the earlier sale from its lithium concentrate stockpile, generating approximately $18 million to support the Finniss restart.

The fund manager said that while the transactions were modest in dollar value, they suggested demand and sentiment had improved enough to support a restart.

While the transactions were modest in dollar value, they suggested demand and sentiment had improved enough to support a restart.

Broader optimism across the lithium sector also strengthened during the month as supply discipline took hold and lithium prices increased.

The experts then explained why they're excited about the business:

We remain bullish on lithium, supported by strong demand from battery energy storage systems and electric vehicles, with battery lithium intensity growing at more than 30% per annum.

Core Lithium offers strong exposure to a recovery in lithium prices as it works towards a relatively low-risk restart in the second half of 2026, and we expect the supply response to be more disciplined this cycle.

The post Experts rate these 2 ASX mining shares as compelling buys appeared first on The Motley Fool Australia.

A small group of ASX shares are set to go ex-dividend in May.

In order to receive a dividend, you must own the ASX share before its ex-dividend date.

So, if you're looking for some income opportunities this month, these ASX shares may be of interest.

Ex-dividend dates also provide another opportunity.

Share prices typically fall on their ex-dividend dates, so you may be able to pick up a stock you've been watching for a lower price.

Among the shares going ex-dividend this month are ASX 200 gold share Newmont Corporation CDI (ASX: NEM).

Newmont will trade ex-dividend on 26 May. The miner will pay investors a dividend of 25.4 cents per share on 22 June.

Several of Wilson Asset Management's listed investment companies (LICs) will also go ex-dividend this month.

These include Wam Capital Ltd (ASX: WAM), which will trade ex-dividend on 18 May.

Wam Capital investors will receive a dividend of 7.75 cents per share on 29 May.

ASX shares with ex-dividend dates this month

The post 16 ASX shares going ex-dividend in May appeared first on The Motley Fool Australia.

The two names in this article that WAM highlighted were among the top 20 holdings of the WAM Active Ltd (ASX: WAA) portfolio, a listed investment company (LIC) that seeks to identify mispricing opportunities in the Australian market.

Let's look at why the following businesses appealed to WAM.

Forrestania Resources Ltd (ASX: FRS)

The first business WAM mentioned was Forrestania Resources, a Perth-based resource exploration company that's targeting gold, lithium, nickel and copper deposits. It's searching for these resources largely in Western Australia's Eastern Goldfields, Forrestania and Southern Cross greenstone belts.

WAM noted that the company is led by executive chair David Geraghty, who has spent 30 years in the resources sector, including 21 years at Mineral Resources Ltd (ASX: MIN), where he played a key role in its breakout success.

Last month, Forrestania Resources executed a binding purchase agreement with Westgold Resources Ltd (ASX: WGX) to monetise ore stockpiles of up to $38 million in gross revenue, with first funds expected in the third quarter of 2026.

The fund manager said the agreement effectively transitions the ASX small-cap share from a developer to a producer, which is typically a major valuation catalyst.

WAM noted that the Lake Johnston mill project is fully funded and, based on current resources, is expected to support several years of production at a low cost. At the current resource prices, this is expected to generate "significant free cash flow relative to the company's current market capitalisation of over $600 million".

The fund manager also noted that the company is assessing additional tenement opportunities, having flagged interest in the Edna Gold Mine, owned by Ramelius Resources Ltd (ASX: RMS).

EchoIQ Ltd (ASX: EIQ)

The other ASX small-cap share that WAM highlighted was EchoIQ, which the fund manager described as an Australian medical technology company focused on improving decision-making in cardiology. It operates an AI-driven software platform.

Its flagship EchoSolv platform harnesses proprietary AI to scan echocardiogram reports and dramatically improve detection of structural heart disease, starting with severe aortic stenosis (AS) and now expanding into heart failure (HF) and beyond.

In December, Echo IQ formally lodged its US Food and Drug Administration (FDA) submission for EchoSolv HF after a standout clinical validation study with Mayo Clinic, with a decision expected in March or April.

WAM said that clearance would significantly expand the ASX small-cap share's US addressable market, with heart failure as the leading cause of rehospitalisation and accounting for 17% of total US healthcare spending.

The fund manager said that industry sources confirm Echo IQ's technology is market-leading, positioning the company for rapid US penetration.

Strategic partnerships remain a near-term catalyst, according to WAM, with active interest from multiple parties, while there is also potential to improve existing reimbursement rates for severe aortic stenosis.

The post 2 exciting ASX small-cap shares this fund manager thinks are buys appeared first on The Motley Fool Australia.

Wilson Asset Management picked out GenusPlus as a compelling business in its listed investment company (LIC) WAM Active Ltd (ASX: WAA) portfolio.This LIC aims to target "mispricing opportunities" in the Australian market.

The LIC has just come off a very strong period. The investment portfolio returned 31.4% over the six months to 31 December 2025, and 41.4% over the full year. Of course, past performance is not a guarantee of future returns.

Let's get into why the investment team at Wilson Asset Management likes GenusPlus Group.

Why it's a compelling ASX share

WAM describes GenusPlus Group as a specialist power and communications infrastructure provider, delivering transmission, distribution and related services across Australia.

The fund manager noted that during January, the GenusPlus Group share price strengthened 18% after the company upgraded its FY26 earnings guidance, pointing to approximately 35% growth of normalised operating profit (EBITDA) compared to the FY25 normalised EBITDA of $67.4 million.

This strength was driven by better-than-forecast performance from the energy and engineering and services segments.

WAM pointed out that this positive momentum was further underpinned by contract wins and project progression, including its joint venture with ACCIONA being awarded by AusNet the approximately $1.6 billion Western Renewables Link construction contract, subject to approvals.

On top of that, the market received confirmation that construction will proceed on the Ausgrid Hunter-Central Coast Renewable Energy Zone sub-transmission line works, with a contract value of approximately $140 million. Construction is planned to commence in February 2026.

The fund manager then said:

We remain positive on the outlook, supported by strong organic growth momentum, with the balance sheet in excellent shape to undertake earnings accretive acquisitions.

What is the valuation of the ASX share?

The business has steadily increased its annual dividend per share each year for the last couple of years and the dividends are being hiked at a fast pace. The company grew its FY25 final dividend per share by 44% to 3.6 cents.

In FY25, the company's total revenue rose by 36% to $751.3 million, infrastructure revenue climbed 30% to $415.6 million, energy and engineering revenue climbed 54% to $234.5 million and services revenue soared 38% to $123.2 million.

It's currently trading at 35x FY25's earnings, but the business is clearly expected to deliver further strong growth in the coming years.

At its AGM, the company said that it's well-positioned for organic growth and targeted strategic acquisitions with a focus on expanding its delivery capabilities. It also said that the momentum of new energy projects connecting to the national electricity network market continues to build, which bodes well for the ASX share's foreseeable future.

The post Experts rate this ASX share as a buy! appeared first on The Motley Fool Australia.