The ASX dividend share Charter Hall Long WALE REIT (ASX: CLW) is a great one to consider for most of the retiree community (and other investors wanting passive income).

I think the real estate investment trust (REIT) sector is a good one to consider amid rising interest rates because of the better value and distribution yield on offer.

Rather than having to go and individually buy all of these commercial properties, an REIT enables investors to buy a small slice of a property portfolio in a single investment.

Diversified portfolio

The REIT is invested in more than 500 properties across several key defensive industries that are more resilient to economic shocks than other areas.

It’s invested in sectors like government-tenanted properties (such as the Australian Border Force, Geosciences Australia and Department of Defence), pubs and hotels, grocery and distribution, data centres, telecommunication exchanges, service stations, food manufacturing, waste and recycling management, Bunnings properties and so on.

This property portfolio is spread across Australia, including NSW, Victoria, Queensland, WA, ACT, South Australia, Northern Territory and Tasmania. It also has a small exposure to New Zealand.

The one thing that all of these properties have in common is that the Charter Hall Long WALE REIT aims to have them signed on for long-term leases.

The REIT’s WALE is currently around nine years, which means a lot of rental income is already contracted from high-quality tenants like the Australian government, Endeavour Group Ltd (ASX: EDV), Telstra Group Ltd (ASX: TLS), BP, Coles Group Ltd (ASX: COL) and Metcash Ltd (ASX: MTS).

The ASX dividend share’s yield

I’m sure many retirees and passive income investors want to know about the distribution yield on offer, so let’s look at that.

The business is expecting to grow its FY26 annual distribution by 2% to 25.5 cents per unit, which translates into a forward distribution yield of 7.3%.

That yield is based on an expected distribution payout ratio of 100% of its operating rental earnings.

Why is the yield so high? It’s because the business is trading at 26% discount to its net tangible assets (NTA) at 31 December 2025.

It’s delivering underlying growth

It’s important to remember not to invest in something just because of the yield. I believe there should be underlying growth, otherwise there’s a high risk of the valuation (and passive income payment) going backwards over the longer-term.

Some of the ASX dividend share’s property portfolio has fixed annual rental increases, while the rest has increases linked to inflation. This helped the FY26 half-year net property income (NPI) increase by 3% on a like-for-like. That’s not a lot of growth, but it’s positive and makes me comfortable to invest in a high-yielding business like this.

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

More reading

• 2 ASX blue-chip shares offering big dividend yields
• Looking for long-term passive income? Try one of these ASX shares
• Is it time to load up on these high-yielding ASX dividend shares?
• 20 ASX shares with ex-dividend dates next week
• 2 ASX dividend shares with yields above 7%

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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Qantas Airways Ltd (ASX: QAN) share price has seen plenty of pain since February, as the below chart shows. Is this time to be greedy or fearful?

The impacts of the Middle East conflict have been wide-reaching, with fuel costs being the most obvious effect.

Qantas is a major fuel user, and it’s understandable why the market is feeling cautious on the airline. Let’s get into the positives and negatives I’m seeing.

Negatives

Let’s get the bad news out of the way first.

It’s hard to say how long the events in the Middle East will affect fuel costs. Even with a complete truce, it could still take some time for fuel access and availability to return to ‘normal’, whatever the new normal looks like.

There’s also a question in my mind of how travel demand will hold up during this period, which is a key element of keeping Qantas planes (fairly) full at the prices it’s charging.

The uncertainty appears to have led the leadership to at least delay the $150 million share buyback, which means a delay to shareholders receiving that benefit.

The final negative I’ll point out is that inflation could become more widespread than just fuel, which could increase the airline’s other costs.

Positives

For investors considering an investment in Qantas, the value is materially more attractive. At the time of writing, it’s 8% cheaper than it was at the end of February 2026. It’s not as cheap as it was in March, but that’s still a sizeable discount.

I’d rather invest in Qantas shares when they’re cheaper rather than when the share price is higher.

Another positive is that the business said it has hedged approximately 90% of its FY26 second-half exposure to crude oil, though it is still exposed to movements in the jet refining margin.

Qantas said that it’s still seeing strong demand for international travel to Europe, so it has redeployed capacity from the US and its domestic network to increase flights to Paris and Rome.

It has also reduced its domestic capacity in the fourth quarter of FY26 by around 5 percentage points.

The airline is also expecting its domestic and international revenue per available seat kilometre (RASK) to grow by approximately 5% in the second half of FY26, which should help offset the cost growth, assuming travel demand remains strong.

According to the projection on CMC Markets, the business is currently forecast to generate earnings per share (EPS) of 93 cents, which puts the Qantas share price at around 10x FY26’s estimated earnings.

I do think this is a good time to invest, the valuation is lower and travel demand is strong, but if it fell further, I’d say it’s an even better buy.

The post The pros and cons of buying Qantas shares this month appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy right now
• Why a $700 million move into Qantas shares is turning heads today
• Top brokers name 3 ASX shares to buy today
• Are Qantas shares still a buy after its latest market update?
• Why Clarity, Qantas, Universal Store, and Westpac shares are falling today

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.

For some investors, a solid income stream, as opposed to a focus on capital returns, is the holy grail.

One stock that is currently paying a very solid trailing dividend is toll roads operator Atlas Arteria Ltd (ASX: ALX), which, according to ASX data, is now paying a dividend yield of 9.36%.

It’s worth noting that the Atlas Arteria dividend is unfranked, which might make it less attractive for some investors.

Steady income streams

So what does the company do?

Atlas Arteria holds stakes in toll road businesses across France, Germany, and the US.

To be more specific, in the company’s own words:

Today the Atlas Arteria Group consists of toll road businesses in France, Germany and the United States. In France, we currently own a 30.8% interest in the 2,424km motorway network located in the country’s east, comprising APRR, AREA, A79 and ADELAC. In the US, we own a 66.67% interest in the Chicago Skyway, a 12.5km toll road in Chicago and have 100% of the economic interest in the Dulles Greenway, a 22km toll road in the Commonwealth of Virginia. In Germany, we own 100% of the Warnow Tunnel in the north-east city of Rostock.

In February, the company announced a net profit of $181.8 million, down from $300.2 million for the previous year, on revenue of $2.01 billion.

Chief Executive Hugh Weghby said regarding the result:

2025 was another positive year for Atlas Arteria. We delivered strong revenue growth and steady traffic performance. We continued to build and optimise our businesses to improve safety and customer experience. This performance supports a 40 cps distribution for our investors for 2025, in line with guidance. We’re focused on building a resilient portfolio for the long term. That starts with getting the most out of the businesses we own – through strong performance and by pursuing value accretive growth opportunities, including preparing for upcoming French concession retenders. We’re also actively looking at new opportunities across OECD markets where we see strong fundamentals and the potential to deliver attractive returns for securityholders.

Assurance on dividends

Importantly for investors, the company has signalled its intention to keep the dividend steady at 40 cents per share annually, “supported by growing free cash flow”.

So, how many Atlas Arteria shares do you need to generate $10,000 per year?

Thankfully, the maths is quite simple – you need 25,000 shares multiplied by the 40 cent dividend.

This comes to a value of $106,750 at the share price of $4.27 at the time of writing, which is not too far off the 12-month low.

Atlas Arteria is valued at $6.19 billion.

The post How many shares in this high-dividend toll road stock do you need for a $10,000 income stream? appeared first on The Motley Fool Australia.

More reading

• This ASX dividend stock is now paying out more than 9%
• 5 things to watch on the ASX 200 on Thursday
• 6 ASX shares hitting 52-week lows amid today’s market rally
• Is it time to load up on these high-yielding ASX dividend shares?
• 3 ASX dividend shares yielding 9% (or more)

Motley Fool contributor Cameron England 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.

TechnologyOne Ltd (ASX: TNE) shares have been strong performers over the past month, rebounding strongly after being caught up in the artificial intelligence (AI)-induced tech selloff.

Unfortunately, the team at Bell Potter thinks that this leaves the ASX 200 tech stock fairly valued now and has downgraded it.

What is the broker saying?

The broker highlights that TechnologyOne’s shares now trade at a significant premium to WiseTech Global Ltd (ASX: WTC), Pro Medicus Ltd (ASX: PME), and Life360 Inc. (ASX: 360). It explains:

We downgrade our recommendation on Technology One from BUY to HOLD given the rally in the share price to above our target price. We believe the stock now looks fairly valued on FY26 and FY27 EV/EBITDA multiples of c.32x and 28x which [we] note are the highest in our coverage of S&P/ASX 100 technology stocks and well above that of WiseTech Global on c.22x and 18x.

We acknowledge that Technology One is probably the best placed amongst our coverage of technology stocks to withstand AI disruption given its large proprietary data assets and mostly government and higher education customer base. The company is also embedding agentic AI across its product suite which will both improve the customer experience and further strengthen its position against disruption. But the recent outperformance of the stock relative to others in the sector like WiseTech, Pro Medicus and Life360 now makes it look relatively expensive and we see better value elsewhere.

Downgraded to hold

According to the note, the broker has downgraded the ASX 200 tech stock to a hold rating with an improved price target of $31.00 (from $29.00).

This is largely in line with the current TechnologyOne share price of $30.83.

Commenting on the company, Bell Potter said:

With the recent rebound in technology stocks we have increased the multiples we apply in the PE ratio and EV/EBITDA valuations from 55x and 30x to 60x and 32.5x. and also modestly reduced the WACC we apply in the DCF from 8.4% to 8.3%. The net result is a 7% increase in our target price to $31.00 which is only a modest premium to the share price so is consistent with the downgrade to a HOLD recommendation.

We note there is perhaps a lack of catalysts for the stock with the company already – and unusually – providing full year guidance at the AGM in February (this is usually provided at the H1 result in May). There is also a greater-than-usual earnings skew to H2 this year due to higher investment in H1 so we do not see much if any potential of an upgrade to the guidance at the H1 result.

The post Which ASX 200 tech stock has Bell Potter just downgraded? appeared first on The Motley Fool Australia.

More reading

• The tech rally is back: here are 5 ASX shares leading the charge
• 3 ASX 200 stocks leaping higher in this week’s slumping market
• 2 high-quality ASX stocks to buy and hold long term
• WiseTech shares rocket 11% higher today: Buy, sell or hold?
• Is the ASX 200 tech wreck over amid a 6% rise in shares today?

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

One of the best things that Australians can do for their finances is to spend less than they earn, also known as saving. That’s key to improving our net worth. But, for those aspiring to build $1 million of wealth, simply saving cash in a bank account isn’t likely to be as effective as investing in ASX shares.

I do think everyone should have some cash in the bank. There’s power in having an emergency fund. Saving for a house deposit is also a great way to use a savings account.

In terms of just building wealth, cash is not very powerful for compounding.

At the moment, savers may be able to get a savings product that offers a 5% interest rate. That’s quite high compared to most of the last decade.

Let’s assume someone can save $1,500 per month. If that money earned a 5% interest rate it would take around 27 years to reach $1 million.

Investing in ASX shares makes a lot more sense to me.

The power of investing in ASX shares over just saving

One of the most popular ways to invest in ASX shares is with the Vanguard Australian Shares Index ETF (ASX: VAS), an exchange-traded fund (ETF) that tracks the S&P/ASX 300 Index (ASX: XKO) – that’s 300 of the largest businesses on the ASX.

Over the decade to 31 March 2026, the VAS ETF has returned an average of 9.35% per year. That’s a solid return and close to double what return savings accounts are offering right now.

It’s important to remember that interest income on offer doesn’t include the negative of tax while the VAS ETF returns don’t include tax or the positive of franking credits as part of the distribution income that is sent to investors. Plus, distributions from an ETF can benefit from capital gains tax discounts (which interest income doesn’t).

So, it’s hard to exactly compare apples to apples. But, I’ll use the return quoted by Vanguard.

If someone invested $1,500 per month and it returned 9.35% per year, that would turn into $1 million in less than 20 years!

In other words, that’s shaving around seven years off the time that it takes to get to a $1 million net worth.  

But the VAS ETF is not the only way to invest in ASX shares, of course.

Plenty of content on this site is about finding ASX growth shares with significant potential to deliver returns.

There are also international-focused ASX ETFs that could provide both pleasing diversification and good returns such as Vanguard MSCI Index International Shares ETF (ASX: VGS) and VanEck MSCI International Quality ETF (ASX: QUAL) which have both returned an average of more than 13% in the past decade. That level of return – which is not guaranteed – would turn $1,500 per month into $1 million in less than 17 years!

The post Stop ‘saving’, start investing! How to target a $1 million ASX share portfolio appeared first on The Motley Fool Australia.

More reading

• 5 excellent ASX ETFs to buy next week
• 3 reasons why the Vanguard MSCI Index International Shares ETF is a great buy for wealth building
• The biggest ASX ETFs revealed – are they still buys?
• 5 ASX ETFs that could supercharge your portfolio
• 3 ASX ETFs to buy and hold for the next decade

Motley Fool contributor Tristan Harrison has positions in VanEck Msci International Quality ETF. 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 Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are planning to invest this month, ASX exchange traded funds (ETFs) can be a great place to start.

They offer instant diversification, exposure to global markets, and a simple way to build a portfolio without needing to pick individual stocks.

The key is choosing funds that give you a mix of growth, quality, and long-term opportunity.

Here are five excellent ASX ETFs to consider next week.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The first ASX ETF that could be a top option is the Vanguard MSCI Index International Shares ETF.

This ETF provides broad exposure to developed markets around the world, including the United States, Europe, and parts of Asia.

Its holdings include global giants such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and NVIDIA (NASDAQ: NVDA).

What makes the Vanguard MSCI Index International Shares ETF appealing is its simplicity. It allows investors to access global growth through a single investment, potentially making it an ideal core holding.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

Another ASX ETF that could be worth considering is the hugely popular BetaShares Nasdaq 100 ETF.

It focuses on the Nasdaq 100, which is heavily weighted towards technology and innovation-driven companies.

Top holdings include Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), and Alphabet (NASDAQ: GOOGL).

This fund provides more concentrated exposure to high-growth sectors, which could help drive strong portfolio returns over time.

VanEck MSCI International Quality ETF (ASX: QUAL)

A third ASX ETF that could be worth considering is the VanEck MSCI International Quality ETF.

It focuses on high-quality stocks with strong earnings, solid balance sheets, and lasting competitive advantages.

Its holdings include Microsoft, Visa (NYSE: V), and Johnson & Johnson (NYSE: JNJ).

This quality tilt can help provide resilience during periods of market volatility. It was recently recommended by analysts at VanEck.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

A fourth ASX ETF to consider is the BetaShares S&P/ASX Australian Technology ETF.

It offers exposure to Australia’s leading technology companies. This includes Xero Ltd (ASX: XRO), WiseTech Global Ltd (ASX: WTC), and TechnologyOne Ltd (ASX: TNE).

It provides a way to gain access to local innovation and growth businesses that are expanding globally. And with ASX tech shares down heavily from their highs, now could be an opportune time to snap up the fund.

It was recently recommended by analysts at BetaShares.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Finally, the Vanguard Australian Shares High Yield ETF could be a top addition if you’re looking for a source of income.

It focuses on high-dividend-paying Australian shares, such as major banks, mining companies, and other established businesses with reliable cash flows.

This could make it a useful complement to growth-focused ETFs, adding stability to a portfolio.

The post 5 excellent ASX ETFs to buy next week appeared first on The Motley Fool Australia.

More reading

• Why I’d buy and hold NDQ and these ASX ETFs for 10 years
• 3 reasons why the Vanguard MSCI Index International Shares ETF is a great buy for wealth building
• The biggest ASX ETFs revealed – are they still buys?
• ASX ETFs to target if you expect struggling sectors to rebound
• How to build a $100,000 ASX share portfolio

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Technology One, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Meta Platforms, Microsoft, Nvidia, Technology One, Visa, WiseTech Global, and Xero and is short shares of Apple and BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF, WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Technology One, Vanguard Australian Shares High Yield ETF, Vanguard Msci Index International Shares ETF, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are endless ways to separate and target assets using ASX ETFs. 

One distinction that VanEck believes could be worth monitoring is real assets. 

Real assets are physical, tangible investments such as property and infrastructure. These derive value from their use and often generate income. 

These differ from other investment classes like bonds, which represent contractual claims on value rather than ownership of physical goods.

A new report from VanEck has shed light on why ASX ETFs focused on physical assets could be worth considering. 

Infrastructure and listed property

Two examples of physical assets that VanEck points to are infrastructure and physical property. 

VanEck explained that global real estate includes investment opportunities not readily available in Australia, including student housing developments, storage, data warehouses, and hotels. 

Often, rental income is linked to inflation, so it tends to increase with CPI. Australians have had a long affinity with property investing, and the requirement for income is a key driver of its demand.

Investors have also come to recognise that infrastructure assets tend to be linked to steady and reliable income, supported by real assets that tend to be long-lived and that generally retain their value.

One example of this is ASX-listed toll operator Transurban Group (ASX: TCL). 

Generally, road tolls increase in line with changes in the Consumer Price Index. Government regulation determines the amount and the frequency of toll price increases each year. And despite these rises, these roads still have traffic jams.

This highlights one of the key drivers of the long-term performance of global infrastructure securities: they exhibit inelastic demand for the services they offer.

VanEck said that with many investors predicting a high inflation and low growth, a stagflationary environment, infrastructure is piquing investor interest.  

In the past global listed infrastructure has outperformed global equities during recent stagflationary environments, when US inflation was above 2.5%, and US real GDP Growth was below 2.5%, in 3 out of the last 4 periods.

How to gain exposure with ASX ETFs

VanEck has identified two ASX ETFs that offer exposure to these real assets. 

Firstly, the VanEck FTSE Global Infrastructure (AUD Hedged) ETF (ASX: IFRA). 

The fund gives exposure to listed infrastructure companies across developed markets. The underlying index framework is designed around infrastructure sub-sectors, with target exposures of roughly 50% to utilities, 30% to transportation, and 20% to other infrastructure. 

In practice, that means investors are buying into assets such as regulated utilities, toll roads, airports, pipelines, towers and related essential-service businesses. That is a compelling setup when markets are rewarding resilient cashflows and businesses with pricing power or long-duration demand.

The second fund to consider is the VanEck FTSE International Property (AUD Hedged) ETF (ASX: REIT). 

It gives investors exposure to roughly 300 international property securities/REITs across countries and sectors that are not easily accessible through the local market. 

We think the bullish case is that elevated cash yields, stable income demand, a recovering property sector and ongoing infrastructure investment keep supporting listed real assets. 

The main risks are a renewed rise in long bond yields, slower-than-expected rate cuts, and sector-specific weakness in parts of the property or infrastructure markets.

The post Why now is the perfect time to target real assets with these ASX ETFs appeared first on The Motley Fool Australia.

More reading

• 5 excellent ASX ETFs to buy next week
• 17,875 shares of this ASX dividend star pays an income equal to the Age Pension
• A rare buying opportunity in 1 of Australia’s top shares?
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Motley Fool contributor Aaron Bell 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 Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One of the best things about the Australian retirement system is the Age Pension because of how it can help households in retirement when they don’t have enough financial assets to support themselves. But, there’s an ASX dividend star that I’d prefer to receive income from.

The Age Pension isn’t large enough to provide retirees with a luxurious life. But, receiving $1,100 per fortnight for a single person (the maximum basic rate) is a decent amount and it’s certainly more generous than what many other countries pay.

But, if you gave me a choice of receiving $28,600 of annual income from the Age Pension or $28,600 from the ASX dividend star Washington H. Soul Pattison and Co. Ltd (ASX: SOL), I’d personally choose the ASX share for a few different reasons.

Before I get to those reasons, it’s important to acknowledge that I wouldn’t put my entire portfolio into one name. Diversification is a powerful tool and it’s a good idea to spread a portfolio across a number of businesses, whether that’s directly or indirectly.

But, if I did need to choose one S&P/ASX 200 Index (ASX: XJO) share for reliable retirement income, Soul Patts would be the one for me.

Great dividend growth record

The ASX dividend star has increased its regular dividend every year since 1998. That’s almost 30 years of continuous dividend growth!

While the Age Pension is rising over time, the Soul Patts dividend is rising at a much faster pace. In the FY26 half-year result, it grew its interim dividend by 9.1% year-over-year to 48 cents per share. Over the past five years, its dividend has grown at a compound annual growth rate (CAGR) of 11.9% per year.

If the FY26 annual dividend per share is increased by around 9% to approximately $1.12 per share, its annual payout would be 3.7% grossed-up dividend yield, including franking credits.

Diversification

Soul Patts operates as an investment house, meaning its asset base is spread across a wide range of industries. It has paid for its rising dividend overall over these years thanks to the investment cash flow that its portfolio produces.

I like the diversification because it reduces the risk of relying on any particular sector too much. It also means the business can look across a wide array of areas for the next investment opportunity.

Some of its larger investments come from sectors like resources, telecommunications, energy, financial services, swimming schools, agriculture water entitlements, electrification and plenty more.

By investing in so many defensive sectors that generate good cash flow, the ASX dividend star has strong support for maintaining and growing its dividend payout each year.

As time goes on, I think Soul Patts is focusing its portfolio more on assets that will be able to help the company deliver long-term growth.

How many shares to generate $28,600 of income?

I view franking credits as an important part of the company’s overall passive income picture, so I’m going to include them in the calculation I’m about to do.

If someone owned 17,875 Soul Patts shares during FY26, then they could receive the same level of passive income as the Age Pension. But, I’m expecting significantly stronger income growth from the ASX dividend star than the Age Pension in the next few years.

There’s a lot to like about Soul Patts shares, which is why it’s my largest position, complementing other ASX dividend shares in my portfolio.

The post 17,875 shares of this ASX dividend star pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

More reading

• Why I’m even more bullish about Soul Patts shares from now on!
• ASX 200 shares rip with financials leading a remarkable recovery last week
• Buy, hold, or sell? Bubs, Soul Patts, and Endeavour shares
• Why I invest a lot in ASX shares outside of superannuation
• Forget term deposits! I’d buy these ASX dividend shares instead!

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Tuas Ltd (ASX: TUA) is one of Australia’s top shares, in my view. It may have its operations in Singapore, but it’s registered in Australia and listed on the ASX.

Its core business is providing telecommunications operations in Singapore. It’s not common for an ASX share to have its main revenue generation outside of Australia, New Zealand, or the US.

The business is not a blue chip (yet), but it has rapidly become a multi-billion-dollar business that still has enormous growth potential.

Growing market share

One of the things that makes this one of Australia’s top shares is the fact that the business has managed to build such a sizeable position in the country in a relatively short amount of time (in this decade).

It more than doubled its mobile subscriber count in Singapore over three years, from 691,000 in the first half of FY23 to 1.41 million in the first half of FY26. The HY26 growth was 21.7% year over year.

Additionally, the company is starting to gain some traction in the broadband space. Its HY26 broadband subscribers increased by around 32,000 to 46,000. I believe its broadband position will continue to grow, particularly once it finalises the acquisition of Singapore competitor M1.

The business is expecting Simba (its consumer-facing brand) to continue to strengthen its mobile and fibre broadband segments over the rest of FY26.

Operating leverage

One of the best advantages of subscriber growth is that not only does it mean revenue growth, but it also leads to an increase in profit margins, allowing the bottom line to rise at a faster pace than revenue. It’s the bottom line that investors ultimately value a company on.

The business reported revenue growth of 26% year over year, while underlying operating profit (EBITDA) rose 27% to $42.1 million. Pleasingly, underlying net profit jumped by $15.7 million to $18.7 million (which excludes acquisition costs). Statutory net profit improved $5.2 million to $8.2 million.

Why I think this top Australia share has a long way to grow

The business is still growing its subscriber base (and revenue) at a strong rate, which is good for compounding.

I’m optimistic the business can continue diversifying its earnings, particularly once its M1 acquisition goes through, because it will grow its non-mobile earnings. I also believe the business can successfully expand into other nearby countries, such as Malaysia or Indonesia, which would significantly improve its growth runway.

Businesses that are growing quickly are well worth paying attention to. Tuas has already demonstrated its ability to win customers, and I think it can continue this success under the leadership of David Teoh.

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

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• 2 incredible ASX shares to buy in April
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Motley Fool contributor Tristan Harrison has positions in Tuas. 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) shares are rarely described as cheap.

But I think there is a different way to look at it, especially when investing smaller amounts over time. Instead of focusing purely on valuation, I find it more useful to think about what you are actually getting exposure to.

Here are five reasons I would consider putting $500 into CBA shares today.

A business built around everyday activity

CBA is deeply embedded in how Australians manage their money.

From home loans and savings accounts to payments and credit cards, the bank touches a wide range of financial activity. That creates a steady flow of revenue tied to everyday behaviour, which tends to be more consistent than more cyclical businesses.

For me, that kind of exposure can be a strong starting point for long-term investing.

A balance sheet that supports resilience

One of the things that stands out in CBA’s latest half-year update is the strength of its balance sheet.

The bank reported a Common Equity Tier 1 ratio of 12.3%, which sits comfortably above regulatory requirements, alongside strong deposit funding and liquidity levels .

This is important, in my opinion. It gives the bank the ability to continue lending, investing, and supporting customers even when conditions become more challenging.

Income that can add up over time

CBA remains one of the largest dividend payers on the ASX.

In its half-year result, the bank declared an interim dividend of $2.35 per share, fully franked .

For an investor starting with $500, the income may seem modest at first. But over time, reinvesting those dividends can help build a larger position and increase the income stream.

Ongoing investment in technology

Banks are often seen as traditional businesses, but CBA continues to invest heavily in technology.

It is spending heavily to modernise its systems, enhance digital capabilities, and expand its use of artificial intelligence across the business.

For me, that shows a focus on staying relevant. It is not just maintaining its position, it is working to improve how it serves customers and operates internally.

CBA shares have a track record of consistency

What I think makes CBA really stand out is how consistently it has delivered over time.

In the latest half, cash net profit was up 6% supported by lending and deposit growth across its core businesses, while credit quality improved and return on equity lifted 10 basis points to a strong 13.8%.

That kind of consistency can be easy to overlook, but I think it plays an important role in long-term investing.

Foolish takeaway

I think that investing $500 in CBA shares would be a smart move.

CBA offers a combination of scale, resilience, income, and consistency that I think can support strong returns over the long term.

It may not be the most exciting share on the ASX, but I think it could be one of the best.

The post 5 reasons to invest $500 in CBA shares appeared first on The Motley Fool Australia.

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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.