If you're a retiree thinking about income and stability, two blue-chip ASX names might be sitting on your shortlist: Washington H Soul Pattinson and Co Ltd and Macquarie Group Ltd.
Washington H Soul Pattinson—often known as Soul Patts—has its roots in Australian pharmacy, but these days is best described as a diversified investment house. Over its long history, Soul Patts has built a portfolio spanning listed and private companies, real assets, and emerging ventures. Some of its largest stakes, according to its most recent public description, are in TPG Telecom and New Hope Corporation.
The 2025 merger with Brickworks has also made Brickworks a subsidiary under the Soul Patts umbrella.
Soul Patts has a market cap of $17.29 billion and sports a price-to-earnings ratio of 7.08, which is much lower than Macquarie's. The dividend yield clocks in at 2.36%, but perhaps most attractive for retirees, dividends come franked—at a rate of 100%. Soul Patts has a long streak of consistently increasing dividends, missing an opportunity to reward shareholders with tax-effective income.
Macquarie Group is one of Australia's financial powerhouses, providing banking, funds management, advisory, and investment services in more than 30 countries.
Looking at the numbers, Macquarie is a much larger company, with a $92.97 billion market cap and a higher P/E ratio of 19.12. Only 35% of those dividends are franked, which means Australian retirees won't get the maximum tax benefit from those payments.
Note: Dividend yields are relatively close, but Macquarie's dividends are only partially franked, while Soul Patts offers franked dividends—often a priority for income-focused investors.