Commonwealth Bank of Australia (ASX: CBA) shares may be among the most popular dividend options due to the company’s perceived stability and dividend yield.

But, the ASX bank share doesn’t usually have as high a dividend yield as its major bank peers, National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and ANZ Group Holdings Ltd (ASX: ANZ). But it has a better track record of dividend stability and growth over the last 15 years.

The bank has been growing its payout since the COVID-19 pandemic headwinds in 2020, and the recent FY26 half-year result was another example of the bank’s ability to regularly grow earnings and dividends.

In HY26, CBA decided to hike its interim dividend per share by 4% to $2.35 following a 6% rise in the cash net profit after tax (NPAT) to $5.4 billion.

But, in this article, we’re not thinking about FY26 payments; we’re looking at the annual FY27 dividend, which will be paid in 2027.

2027 dividend projection for owners of CBA shares

According to the projection on CMC Invest, the ASX bank share is projected to pay an annual dividend per share of $5.25 in the 2027 financial year.

At the time of writing, this forecast translates into a dividend yield of 2.9% excluding franking credits and a grossed-up dividend yield of 4.1% including franking credits.

If someone were to invest $8,000 in Commonwealth Bank, they would be able to buy 43 CBA shares (with a little bit of money left over).

With those 43 CBA shares, investors could receive $225.75 of cash and $322.50 overall, including the franking credits.

Is this a good time to invest in Commonwealth Bank?

According to CMC Invest, there have been nine analyst ratings calls on the business in the last three months.

Of those nine, all of them have been a sell rating. So, the investment professionals are very negative on the appeal of the company’s valuation right now.

The average price target of those nine ratings is $125.17. That means, collectively, those analysts are predicting the CBA share price could fall by around 30% within the next year. In January, Commonwealth Bank’s share price fell to below $150, but it has since jumped higher on a strong FY26 half-year result and a higher prospect of interest rate rises amid stronger inflation.

For now, there seem to be better ASX shares out there that we can buy.

The post If I invest $8,000 in CBA shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

More reading

• Why I think CBA shares are a top buy with $5,000
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• How to build a million-dollar ASX share portfolio from zero
• Why I think BHP, CBA, and DroneShield shares are buys in April
• Why now could be the time to buy these popular ASX ETFs

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investing in your 50s is often about striking the right balance.

While retirement may still be years away, the focus typically shifts from pure growth to a mix of income, stability, and continued capital appreciation.

The good news is that ASX exchange traded funds (ETFs) make it easy to build a diversified portfolio that ticks all of these boxes.

Here are three ASX ETFs that could be top picks for investors in their 50s to consider.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first ASX ETF that could be a top option is the Vanguard Australian Shares High Yield ETF.

For investors in their 50s, income often starts to become a bigger priority. This is where this fund stands out.

It focuses on high-yielding Australian shares, giving investors exposure to many of the market’s strongest dividend payers. This typically includes major banks, mining giants, and other established businesses with a history of returning cash to shareholders.

While dividend yields can vary, this fund has traditionally offered an income stream that is competitive with, and often higher than, term deposits.

Importantly, investors are not just getting income. They are also maintaining exposure to the share market, which means there is still potential for capital growth over time.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

Another ASX ETF that could be worth considering is the Vanguard Diversified High Growth Index ETF.

This fund offers something very valuable for investors in their 50s. Simplicity.

It provides exposure to thousands of companies across global and Australian markets, as well as a smaller allocation to fixed income. All of this is wrapped into a single investment.

Despite its name, the Vanguard Diversified High Growth Index ETF is not purely aggressive. Its diversified structure means investors benefit from broad exposure across asset classes, helping to smooth returns over time.

For those who prefer a hands-off approach, this ETF can effectively serve as a core portfolio holding. It allows investors to stay invested in growth assets while maintaining diversification that becomes increasingly important as retirement approaches.

BetaShares Global Quality Leaders ETF (ASX: QLTY)

A third ASX ETF that could be a strong addition is the BetaShares Global Quality Leaders ETF.

Rather than focusing on income, this fund targets high-quality global companies with strong balance sheets, consistent earnings, and competitive advantages.

This includes exposure to leading international businesses such as Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and other global leaders.

For investors in their 50s, this focus on quality can be particularly appealing. Companies with durable earnings and strong financial positions tend to be more resilient during periods of market volatility.

At the same time, they still offer meaningful growth potential, which is essential for ensuring a portfolio keeps pace with inflation over the long term.

The post Why these ASX ETFs could be top picks for investors in their 50s appeared first on The Motley Fool Australia.

More reading

• My top ASX passive income picks for April
• Which ASX ETFs I’d buy for retirement investing
• How I’d invest $100,000 for retirement income on the ASX right now
• Where to invest $1,000 in ASX ETFs for beginners in April
• 3 ASX ETFs to fund a comfortable retirement

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Microsoft and is short shares of Apple. The Motley Fool Australia has recommended Apple, Microsoft, and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are plenty of options for investors on the local bourse. So many, it can be hard to decide which ones to buy over others.

To narrow things down, let’s take a look at whether analysts rate the popular ASX shares below as buys right now. Here’s what you need to know:

Life360 Inc. (ASX: 360)

Bell Potter thinks this family safety technology company could be undervalued at current levels. Last week, the broker put a buy rating and $35.50 price target on its shares.

Although Bell Potter suspects that Life360 could fall short of its monthly active user growth guidance in 2026, it hasn’t made any revisions to its estimates. That’s because it believes it will convert more than expected users into paid subscribers. It explains:

Despite the lowering in our global MAU growth forecast in 2026 there is no change in our revenue or earnings forecasts as, on the flip side, we have increased our conversion rate forecasts so that there is no change in our paying circle forecast for the full year. Our average forecast quarterly conversion rate – measured in crude or broad terms – has increased from 3.4% to 3.5% which is still below the average 3.6% in 2025. We are therefore still modestly below last year’s level which is perhaps conservative given the addition of Pet GPS but there was an unusual spike in the conversion rate in 3Q2025 which we assume is not repeated this year.

Northern Star Resources Ltd (ASX: NST)

Bell Potter has been looking at this gold miner and sees an opportunity for investors. It has put a buy rating and $35.00 price target on its shares. The broker believes a recent share buyback signals value in the underlying business. It said:

NST announced the commencement of an on market Buy-back scheme of up to A$500m, representing ~1.6% of issued capital. The buy-back is separate from the dividend payout policy of 20-30% of cash earnings and will commence on the 23rd of April. The buy-back has minimal impact on our EPS estimates going forward, however the signalling of value in the underlying business is of more importance.

Sigma Healthcare Ltd (ASX: SIG)

Finally, Morgans has put a buy rating and $3.36 price target on this pharmacy chain operator and wholesale distributor.

It thinks investors should buy the dip after the Chemist Warehouse owner’s shares pulled back recently. It explains:

SIG is a leading healthcare wholesaler, distributor and retail pharmacy franchisor with operations in Australia, NZ, Ireland and the UAE. We are forecasting ~20% EBIT growth p.a. over the next few years driven by strong LFL sales growth, store rollout (domestically and internationally), operating efficiencies and $100m p.a. synergies by FY29. Given the share price weakness, we have upgraded our recommendation to BUY (from ACCUMULATE) with an unchanged target price of $3.36 and 26% upside.

The post Buy, hold, sell: Life360, Northern Star, and Sigma shares appeared first on The Motley Fool Australia.

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• 2 ASX gold stocks to buy next week
• Brokers name 3 ASX shares to buy right now
• Broker sees 26% upside in ASX healthcare share behind Chemist Warehouse
• Are Northern Star shares a cheap buy?
• Here’s why Life360 shares could rise a massive 75%

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you looking for exposure to the gold price while it sits around US$5,000 an ounce?

If you are, then it could be worth hearing about which ASX gold stocks analysts at Bell Potter are recommending to clients.

Here’s what the broker is saying about two popular options:

Genesis Minerals Ltd (ASX: GMD)

This gold miner has caught the eye of Bell Potter. It thinks its shares are undervalued compared to peers, especially when you consider its strong long-term production growth outlook.

The broker has a buy rating and $9.90 price target on its shares. Based on its current share price of $6.54, this implies potential upside of 51% for investors over the next 12 months. It commented:

We remain positive on the outlook for gold, given the ongoing tensions in the Middle East which has seen the commodity recover from recent lows of ~US$4,130/oz up to spot of ~US$4,746/oz (+15% from the low, -7.9% MoM). The GDX appears to have outperformed the underlying commodity, with MoM decline of only -3.16% and a rally from the low in Mar-26 of ~23%. On a 12m forward EV/EBITDA basis GMD has contracted to ~6.2x NTM EBITDA vs its peak of ~8x in Sep-25. This places GMD slightly above Northern Star (NST, Buy TP$35) (5.1x NTM) but below Evolution (EVN, Buy TP$16.60) (7.1x NTM) in our mid-large cap gold coverage.

The upcoming (1QFY27) long-term guidance targeting 500kozpa is likely to focus on two aspects we believe: (1) development of Tower Hill and a standalone 3.5-4Mtpa mill which should offset higher cost processing at Leonora and (2) development for Lady Julie (MAU transaction) which would supplement the Laverton mill with higher grade tonnes.

Northern Star Resources Ltd (ASX: NST)

Another ASX gold stock that Bell Potter is positive on is Northern Star. While its performance has underwhelmed this year with two guidance downgrades, the broker believes management’s recent buy-back is a big positive.

Bell Potter has a buy rating and $35.00 price target on the gold miner’s shares. Based on its current share price of $24.48, this implies potential upside of 43% for investors.

NST announced the commencement of an on market Buy-back scheme of up to A$500m, representing ~1.6% of issued capital. The buy-back is separate from the dividend payout policy of 20-30% of cash earnings and will commence on the 23rd of April. The buy-back has minimal impact on our EPS estimates going forward, however the signalling of value in the underlying business is of more importance. As noted above, we see NST as hitting the bottom of production and earnings downgrades, with some margin compression to come from the impact of fuel prices.

The post 2 ASX gold stocks to buy next week appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The difference between $100,000 and $600,000 in superannuation is not small. It is enormous.

In fact, it can be the difference between just getting by and living with real financial freedom in retirement.

While both balances may technically support retirement, they sit at opposite ends of the spectrum when it comes to lifestyle, flexibility, and peace of mind. One leans heavily on government support and careful budgeting. The other opens the door to greater independence and choice.

In 2026, as the cost of living rises and expectations for retirement evolve, that gap has never been more important to understand.

What does retirement actually cost?

To understand the impact of these balances, it helps to look at the benchmarks from the Association of Superannuation Funds of Australia.

According to its latest Retirement Standard, Australians need approximately $630,000 as a single or $730,000 as a couple to achieve a comfortable retirement. A more modest retirement requires far less, at around $110,000 for a single and $120,000 for a couple.

These figures assume retirees own their home and receive at least a part Age Pension, which plays a key role in supporting lower balances.

Life on $100,000 in superannuation

A super balance of $100,000 places someone right around the modest retirement threshold. This means retirement is achievable, but it comes with limitations.

In this scenario, spending tends to be tightly controlled. Everyday expenses can generally be covered, but there is little room for flexibility. Leisure activities may be occasional rather than regular, and larger expenses often require careful planning or sacrifice elsewhere.

Over time, the reliance on the Age Pension becomes central. While this provides a safety net, it also means financial independence is limited. Unexpected costs, whether they are related to health, home maintenance, or rising living expenses, can quickly create pressure.

This kind of retirement is about stability, but it often comes at the expense of freedom.

Life on $600,000 in superannuation

A balance of $600,000 paints a very different picture.

Although it sits slightly below the official comfortable benchmark, it is close enough to deliver a significantly improved lifestyle. The difference is not just in what can be afforded, but in how decisions are made.

With this level of savings, retirees typically have far more flexibility in their spending. There is greater capacity to enjoy leisure activities, maintain a higher standard of living, and absorb unexpected costs without major disruption.

Importantly, reliance on the Age Pension is reduced. That means more control over how money is spent and fewer constraints on lifestyle choices.

This is where retirement begins to feel less like a financial balancing act and more like a phase of life to be enjoyed.

The real difference

The contrast between $100,000 and $600,000 is not simply about spending power.

It is the difference between having to think carefully about every expense and having the confidence to make decisions more freely. It is the difference between a lifestyle defined by limits and one shaped by choice.

While both balances can technically fund retirement, they lead to very different experiences.

Why this is important in 2026

Rising costs and inflation have steadily pushed up the amount Australians need for a comfortable retirement. As a result, the gap between modest and comfortable living has widened.

For many people, this means the difference between these two outcomes is no longer marginal. It is substantial and, in some cases, life-defining.

Understanding this gap is critical, especially for those still in the workforce who have time to influence their final balance.

Closing the gap

The good news is that superannuation outcomes are not fixed.

Even relatively small adjustments can make a meaningful difference over time. Increasing contributions, ensuring investments are appropriately positioned for growth, and avoiding unnecessary fees can all help improve long-term outcomes.

Time also plays a powerful role. The longer money remains invested, the more compounding can work in your favour.

The bottom line

A $100,000 super balance can support a retirement, but it is likely to involve compromise and careful budgeting. A $600,000 balance, on the other hand, brings a level of comfort, flexibility, and independence that transforms the retirement experience.

In the end, the difference between the two is not just financial. It is the difference between managing your retirement and truly enjoying it.

The post $100k vs $600k in superannuation: How different would retirement be? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When there are big moves on the ASX share market, investors have the chance to unlock strong returns with some of Australia’s top shares.

Buying when share prices have taken a hit seems like a smart move to me because of the better price/earnings (P/E) ratio valuation and potentially a larger dividend yield.

I think Nick Scali Ltd (ASX: NCK), a furniture retailer, is one of the most underrated businesses on the ASX. I reckon this is a great time to think about buying shares.

It has fallen well over 30% since mid-January 2026, as the chart below shows.

The business saw significant declines in 2022 and 2023, with both years proving, in hindsight, to be great times to invest. I think this is another time to invest in one of Australia’s top shares.

Store network potential

I like to invest in businesses that have plenty of room to expand in the coming years. For Nick Scali, one of the easiest ways to deliver growth is by adding more stores and reaching new customers.

There are a number of ways it can grow its store count. In Australia and New Zealand, it has 110 Nick Scali and Plush stores. The business thinks it can reach between 180 to 200 ANZ locations, which would represent growth of between 63% to 82%. Enlarging the ANZ network could bring significant scale benefits and margin improvements.

Nick Scali also recently bought a small UK furniture business called Fabb Furniture and it’s rebranding those stores to Nick Scali. The ASX share is selling Nick Scali furniture in those UK stores, which is leading to a large uptick in the gross profit margin.

The company thinks the UK network could grow from the current 19 locations to between 60 to 70, a rise of between 215% to 268%.

Profit margins to improve?

The business has lost some market confidence in the last few months, but I still think the long-term looks very promising. I reckon the market is underestimating how much the company’s earnings could rise.

Nick Scali’s FY26 half-year result was a great example of how the company’s profit margins could rise as the business grows. Operating leverage is a powerful attribute for Australia’s top shares.

In HY26, group revenue rose by 7.2% to $269.3 million, the group gross profit margin improved by 310 basis points (3.10%) to 65.4%, operating profit (EBITDA) rose 18.1% to $96.6 million and net profit after tax (NPAT) grew 23.1% to $41 million.

Aside from a potential headwind of high inflation and rising interest rates in 2026, I think the company is on track to increase its profit margins and return on equity (ROE) over time.

Pleasing dividend

An added bonus when it comes to this business is a solid dividend that has grown significantly over the past decade. Impressively, in the HY26 result, the interim dividend was hiked by 30% to 39 cents per share.

According to the projection on Commsec, the business is forecast to pay an annual dividend per share of 78 cents in FY26. That translates into a grossed-up dividend yield of close to 7%, including franking credits, at the time of writing.

The post A rare buying opportunity to buy 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

More reading

• Got $7,500? Here are 2 strong ASX retail stocks to buy now
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• A once-in-a-decade chance to earn a supersized passive income from ASX shares?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

We all want to make good returns with our ASX share portfolios, but it’s not necessarily going to be the most well-known businesses that deliver the strongest results.

Sometimes it’s the under-researched, smaller businesses that can outperform large ASX blue-chip shares over the long-term because they have a stronger growth runway, yet they’re not priced for that level of success.

The two businesses I’m going to talk about are ones that the investment team in charge of the listed investment company (LIC), WAM Capital Ltd (ASX: WAM), likes.

That LIC is looking to find the most compelling undervalued growth opportunities in the Australian market. Let’s look at those the WAM team recently highlighted in a monthly update. 

Cobram Estate Olives Ltd (ASX: CBO)

The Wilson Asset Management (WAM) investment team describes Cobram Estate Olives as a leading Australian food and agribusiness company that specialises in olive farming, the production and marketing of premium-quality extra virgin olive oil.

The Cobram Estate Olives share price rose in March after completing the acquisition of California Olive Ranch, expanding its US footprint, and increasing exposure to a large, growing premium olive oil market. The deal was recently given US anti-trust approval, which had been an overhang on the deal.

This acquisition is expected to more than double the ASX share’s Californian footprint, broaden its customer base, and deliver “meaningful operational synergies and earnings growth over time”.

WAM said the Cobram Estate Olives share price rose during March because of reduced execution risk, improved visibility on transaction completion, and confidence in the long-term growth profile of the enlarged US-focused business.

According to the forecast on CMC Invest, the business is valued at 24x FY27’s estimated earnings.

GemLife Communities Group (ASX: GLF)

Another business that WAM likes – and it was a top 20 position in the WAM Capital portfolio at the end of March 2026 – is GemLife Communities.

This ASX share is a developer, builder, owner, and operator in Australia’s land lease community (LLC) sector. It provides resort-style communities for homeowners aged 50 and over.

During March, the GemLife Communities share price fell 17%, partly because the business released its FY25 results after a period of strong performance following its listing on the ASX in July 2025.

WAM believes the pullback reflected a combination of investor profit-taking and broader market weakness in interest rate-sensitive real estate stocks amid ongoing interest rate uncertainty.

Despite the pullback, the fund manager remains “positive” on the group’s outlook, supported by a strong development pipeline, favourable demographic tailwinds, and an integrated operating model that “underpins recurring revenue and margin expansion”.

Solid sales momentum and disciplined capital management further support WAM’s view that the ASX share can deliver long-term earnings growth.

The post 2 little-known ASX shares that could make big returns appeared first on The Motley Fool Australia.

More reading

• Why Cobram Estate, EOS, Magellan, and Rio Tinto shares are storming higher today
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX dividend share Future Generation Australia Ltd (ASX: FGX) may not be one of the most famous businesses for dividends, but I think it can offer a lot of positives for retirees.

The business operates as a listed investment company (LIC), which means it invests in other shares for the benefit of shareholders.

A key difference with this LIC compared to most other LICs is that the ASX dividend share’s fund managers work for free so that the LIC can donate 1% of net assets each year to youth-related charities.

While the philanthropy is great, it doesn’t necessarily translate into a compelling investment choice. Let’s look at the advantages for the retirees.

Appealing dividends

There are few businesses on the ASX that have increased their payout every year for the past decade. Future Generation Australia is one of them. It has increased its annual dividend each year going back to 2015.

Dividend hikes are not guaranteed, of course, but it’s good to see that the business has tried to regularly increase payments to shareholders.

Pleasingly, the ASX dividend share increased its payout by 2.8% to 7.2 cents per share in 2025. That translates into a grossed-up dividend yield of 7.5%, including franking credits.

Diversification

Another pleasing element to consider is that the business has excellent diversification characteristics for retirees.

With how Future Generation Australia is invested in the funds of 16 fund managers, it can provide investors with an excellent level of exposure across a large number of businesses.

At the end of February 2026, it reported that it had indirect exposure to more than 450 businesses across different sectors.

These businesses are of various sizes and the ASX dividend share also has exposure to a cash allocation, providing protection during market declines, as we’ve seen over the past several weeks.

Long-term growth

Future Generation Australia pays for its dividends out of the investment returns that it has generated.

Over the ten years to February 2026, its portfolio delivered an average return per year of 10.1%, which is large enough to deliver a large and growing dividend, donate 1% per year and deliver growth of the net tangible assets (NTA). The NTA is a key driver of the Future Generation Australia share price.

The business has traded at a discount to its NTA before tax, so it’s a pleasing investment for retirees to buy at a discount to its actual underlying value.

If the long-term return of the portfolio can remain above 10% per year, then it could deliver capital growth and dividend growth in the longer-term.

The post Why this ASX dividend share is a retiree’s dream appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Tristan Harrison has positions in Future Generation Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) is not the kind of share that often looks cheap.

It usually trades at a premium to the rest of the banking sector, and that can make investors hesitate.

But when I look at the bigger picture, I think there are good reasons why it continues to be priced that way. And for long-term investors, that quality can still make it an attractive place to put $5,000 to work.

A business built on consistency

One of the things I value most in investing is reliability. And that is where Commonwealth Bank of Australia stands out.

The bank has spent decades building a dominant position in the Australian market. Its scale, brand strength, and customer relationships make it difficult for competitors to match.

You can see that in the underlying trends. During the first half, ongoing growth in lending and deposits is helping to support earnings, even as margins face some pressure.

For me, that kind of steady performance is important, particularly in an uncertain environment.

Strong foundations matter

Another reason I like CBA is the strength of its balance sheet.

The bank maintains high levels of capital and funding, which gives it flexibility to support customers, invest in its business, and navigate changing economic conditions .

That matters more than it might seem at first. Banking is a cyclical industry, and conditions can shift quickly. Having a strong financial position helps CBA manage those cycles more effectively than many peers.

It is one of the reasons I think it is often viewed as the highest-quality bank on the ASX.

Income remains a key part of the story

CBA is also a major income payer. The bank recently declared an interim dividend of $2.35 per share, fully franked .

That reflects both its profitability and its willingness to return capital to shareholders.

While dividend levels can vary over time, I think the bank’s earnings base provides a solid foundation for ongoing income.

For investors, that combination of income and stability can be appealing.

The premium is there for a reason

There is no denying that CBA shares often look expensive compared to other banks.

But I think that premium reflects something real. This is a business that has consistently delivered strong returns, invested heavily in technology, and maintained a leadership position in digital banking.

It is not just about what the bank earns today.

It is about its ability to keep delivering over the long term.

Foolish takeaway

Commonwealth Bank may not always be the cheapest bank option on the ASX.

But I think its consistency, balance sheet strength, and reliable income make it a compelling long-term investment.

If I were putting $5,000 to work today, it is one of the shares I would still feel comfortable buying and holding through different market conditions.

The post Why I think CBA shares are a top buy with $5,000 appeared first on The Motley Fool Australia.

More reading

• 3 reasons to buy ANZ shares today
• How to build a million-dollar ASX share portfolio from zero
• Why I think BHP, CBA, and DroneShield shares are buys in April
• Why now could be the time to buy these popular ASX ETFs
• How did these ASX blue-chip shares perform in March?

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building a retirement portfolio isn’t about chasing the highest yield on the ASX. It’s about owning businesses that can keep paying you through market cycles, inflation shocks, and economic slowdowns.

If I were building a $250,000 retirement-focused ASX portfolio today, I’d split it across APA Group (ASX: APA), Woolworths Group Ltd (ASX: WOW), and Transurban Group (ASX: TCL).

Together, they offer the three ingredients retirees need most: income, stability, and inflation protection. 

APA Group: Income engine

First, I’d put $100,000 into APA Group, making it the retirement portfolio’s income engine.

APA owns critical energy infrastructure assets including gas pipelines, storage, and electricity transmission networks. These are long-life, hard-to-replace assets that generate highly visible cash flow.

APA has paid semi-annual dividends in March and September since 2016, with a track record dating back to 2008. Impressively, it has increased its payout every year for the past 20 years.

Better yet, the stock is currently offering a dividend yield of roughly 6%, giving retirees a strong stream of passive income from day one. 

Woolworths: Resilient earnings and dividends

Next, I’d allocate $75,000 to Woolworths.

Every retirement portfolio needs at least one ultra-defensive blue chip, and it’s hard to look past Australia’s supermarket giant.

People keep buying groceries no matter what the economy is doing, which helps Woolworths deliver resilient earnings and reliable, partly franked dividends.

The company’s scale, loyalty ecosystem, and digital investments also give it the ability to grow income steadily over time. 

Transurban: Inflation hedge

Finally, I’d invest the remaining $75,000 into Transurban.

This is where the retirement portfolio gets its inflation hedge. Transurban’s toll roads are essential infrastructure assets with concession lives stretching decades into the future.

Many toll agreements allow regular price increases linked to inflation, which means rising CPI can actually support higher distributions over time. For retirees worried about the cost of living, that’s an incredibly valuable feature. 

Dependable income layer

Based on conservative yield assumptions, this retirement portfolio could generate around $11,700 a year in passive income, or close to $975 per month before tax.

That won’t fund a luxury retirement on its own, but combined with superannuation, pension payments, or other investments, it creates a highly dependable income layer.

Foolish Takeaway

What I like most is the balance. APA does the heavy lifting on yield. Woolworths provides the “sleep well at night” stability. Transurban helps protect purchasing power as inflation rises.

For long-term retirees, that’s exactly the kind of mix that can help preserve both income and peace of mind.

The best part? These aren’t speculative growth stocks. They’re essential businesses embedded into everyday Australian life, which is exactly why they deserve a place in a serious retirement portfolio.

The post 3 ASX blue chips I’d buy for a $250,000 retirement portfolio appeared first on The Motley Fool Australia.

More reading

• How to build a $10,000 annual income with ASX shares
• My top ASX passive income picks for April
• This ASX 200 giant is rising while the market sells off. Here’s why
• Transurban Group March quarter 2026: Traffic rises across key toll roads
• 3 of the best ASX retirement shares to buy now

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group, Transurban Group, and Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.