On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week in a positive fashion. The benchmark index rose 0.65% to 8,716.6 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set for a good start to the week following a strong session on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 37 points or 0.4% higher. In the United States, the Dow Jones was up 0.85%, the S&P 500 rose 0.6%, and the Nasdaq pushed 0.65% higher.

Oil prices rise

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a decent start to the week after oil prices rose on Friday night. According to Bloomberg, the WTI crude oil price was up 0.4% to US$91.85 a barrel and the Brent crude oil price was up 0.4% to US$104.72 a barrel. Rising tensions in the Middle East may be behind this rise.

Buy Life360 shares 

Life360 Inc. (ASX: 360) shares could be undervalued according to Bell Potter. This morning, the broker has retained its buy rating on the location technology company’s shares with a trimmed price target of $32.00. It said: “We have reduced the multiple we apply in our EV/EBITDA valuation from 25x to 22.5x due to the continued weakness in software and app stocks both domestically and offshore. […] The upcoming quarterly result next month may well prove to be some sort of catalyst, more so because expectations are already low rather than anticipating any sort of material beat or upgrade to guidance.’

Gold price storms higher

It could be a strong start to the week for ASX 200 gold shares such as Capricorn Metals Ltd (ASX: CMM) and Northern Star Resources Ltd (ASX: NST) after the gold price stormed higher on Friday night. According to CNBC, the gold futures price was up 1.4% to US$4,216.3 an ounce. This may have been driven by bargain buying after the precious metal touched a two-month low earlier in the week.

Buy EOS shares

It could be a good time to buy Electro Optic Systems Holdings Ltd (ASX: EOS) shares. This morning, Bell Potter has retained its buy rating on the defence and space stock with an improved price target of $13.80. It said: “EOS has entered into an agreement with the government of a Middle Eastern Gulf state (GCC member) for a nation-wide counterdrone (C-UAS) defence system valued at £370m (~$700m). This represents the largest contract ever secured by EOS.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360 and Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems and 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.

The ASX dividend stock HomeCo Daily Needs REIT (ASX: HDN) has fallen 35% (at the time of writing) from its peak around five years ago, and it’s down 15% from August, as the chart below shows.

It’s an Australian real estate investment trust (REIT) that invests in convenience-based assets across the sub-sectors of neighbourhood retail, large format retail, and health and services. It aims to give investors consistent and growing distributions.

Its property portfolio is worth more than $5 billion of assets across 2.3 million square metres of land across Sydney, Melbourne, Brisbane, Perth, and Adelaide. It’s also a strategic investor in unlisted funds.

Potential passive income

Following a large decline of the share price, the yield on offer is boosted. For example, when a business with a 6% distribution yield falls 10%, the yield becomes 6.6%.

We’re talking about a larger decline with the HomeCo Daily Needs REIT unit price, and hence, the distribution yield is noticeably larger.

The business expects its net rental profit, or funds from operations (FFO), for the 2027 financial year to be 8.8 cents per security. The distribution per unit is forecast to be 8.6 cents per security, so the business expects to retain a little bit of its rental profit with a distribution payout ratio of 97.7%.

If those projections become reality, the FFO per unit will drop 2.2%, and the distribution will be maintained.

Excitingly, the forecast payout for FY27 will be a distribution yield of 8%. That’s significantly better than what term deposits offer.

While rising interest rates are a headwind for the business, stopping growth in FY27, the last few years did see slight distribution growth, showing it can deliver growth under normal economic conditions.

Large asset discount with the ASX dividend stock

One of the easiest ways to value the ASX dividend stock, or most REITs, is by looking at the net tangible assets (NTA) or net asset value (NAV). That figure includes the net figure with the value of the properties, loans, cash, and other assets and liabilities. It’s meant to reflect the true underlying value of the business at the time.

It reported NTA of $1.56 at 30 June 2026, so it’s trading at a 30% discount to this figure.

The ASX dividend stock reported 4% comparable property net operating income growth in FY26, along with 5.9% leasing spreads (5.9% rental growth for newly signed leases compared to the old rental rate). That shows that it’s producing solid underlying performance.

This period of higher interest rates is tough, but I think it has opened up a compelling buying opportunity.

The post 1 ASX dividend stock down 35% I’d buy right now appeared first on The Motley Fool Australia.

More reading

• How much passive income can I make from a $100,000 ASX share portfolio?
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• 2 ASX real estate funds that could return 23% to 35%

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 HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If someone had $10,000 to invest in ASX dividend shares, then they’re in luck. It’s a great time to buy with the dividend yields on offer in the stock market right now.

I’m going to outline three stocks that offer good yields and have a track record of underlying growth.

One business is a real estate investment trust (REIT), one is a leading supermarket business, and one is a quality exchange-traded fund (ETF) that provides a solid distribution yield.

I’d happily split $10,000 among the ASX dividend shares below.

Centuria Industrial REIT (ASX: CIP)

This business describes itself as Australia’s largest ASX-listed domestic pure-play industrial REIT. It has 83 assets worth around $4 billion across metropolitan locations nationwide.

Industrial properties have several demand drivers, including e-commerce adoption, data centres, the onshoring of supply chains, and refrigerated space requirements (for food and medicine). This is helping increase the value of industrial land.

In FY26, it grew net operating income (NOI) by 5.2%, and it expects to grow its funds from operations (FFO) by up to 5.5% in FY27.

The ASX dividend share grew its annual distribution per unit by 3% in FY26 and expects to increase it by another 3% to 17.3 cents per unit, yielding 6.2%.

Coles Group Ltd (ASX: COL)

Coles is one of the leading supermarket businesses in Australia, with hundreds of supermarkets around the country. It also has Coles Liquor and Liquorland stores within its liquor division.

The business has succeeded at providing customers with what they want over the last several years through the products it sells, the convenience of its store network, an improving online shopping offering, and other factors.

Coles has benefited from Australia’s growing population, and it has also invested significantly in huge distribution centres and customer fulfilment centres (CFCs). This has helped efficiencies, stock flow, and more.

The ASX dividend share has grown its payout every year for the last several years, and I expect that can continue as its store network expands and e-commerce sales grow.

Its FY26 payout translates into a grossed-up dividend yield of 4.75%, including franking credits.  

WCM Quality Global Growth Fund (ASX: WCMQ)

The final investment I want to highlight is this ETF.

WCM is a fund manager based in California, so it operates in quite a different environment to the analysts in Wall Street (New York).

The fund manager wants to invest in businesses with an expanding economic moat, measured with a rising return on invested capital (ROIC). WCM also wants to find businesses with a corporate culture that supports an expansion of the economic moat.

WCM believes that corporate culture is the biggest influence on a company’s ability to grow its economic moat, so it has analysts specifically focused on corporate culture.

The investment strategy seems to be working. Over the past three years, the ASX dividend share’s portfolio has delivered a net return of 22% and 14.9% per year since inception (in August 2018). It has outperformed the global share market over the past three years and since inception.

In terms of passive income, the ASX dividend stock aims to pay a minimum annualised cash distribution yield of 5%.

The post Where to invest $10,000 in ASX dividend shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Wcm Quality Global Growth Fund. 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.