ASX blue-chip shares can provide investors with an attractive level of passive income, if we choose the right ones. The best stocks can also offer reliable earnings.

I’m going to outline two businesses that could help investors sleep easy at night through providing solid dividends.

Scentre Group (ASX: SCG)

Scentre Group is one of the largest property businesses in Australia, it owns Westfield shopping centres in Australia and New Zealand. It currently has 42 properties with over 12,000 outlets.

In a rising interest rate and inflation environment, it’s understandable why some investors are feeling less optimistic about the business than last year. The Scentre share price is down by 11% in the year to date, which has boosted the distribution yield on offer.

The business expects to grow its annual distribution by 4% in 2026 to 18.43 cents per security, translating into a forward distribution yield of close to 5%.

It’s growing rental earnings at a solid rate, with expectations of 4% growth of funds from operations (FFO), driven by strong rental performance, highlighted by the 2026 first quarter update.

In the three months to 31 March 2026, total business partner sales (tenant) sales across its portfolio rose 5% to $7 billion, with specialty sales growth of 5.3%.

The ASX blue-chip share noted that demand for space in Westfield destinations continued to be strong, with portfolio occupancy of 99.8% at March 2026, up 20 basis points (0.20%) since 31 March 2025.

It said that average specialty rent escalations came to 5.3%, while 636 leasing deals achieved average specialty releasing spreads of 3.3%.

I also like that the business continues to invest across its property portfolio, unlocking more potential rental growth. In the latest quarter, works continued on progressing its $240 million redevelopment at Westfield Bondi.

Australian Foundation Investment Co Ltd (ASX: AFI)

The other business I want to highlight is the listed investment company (LIC), which is one of the oldest and largest LICs in Australia.

Its portfolio is full of ASX blue-chip shares such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Macquarie Group Ltd (ASX: MQG), National Australia Bank Ltd (ASX: NAB), CSL Ltd (ASX: CSL) and Telstra Group Ltd (ASX: TLS).

It has provided investors with a pleasingly resilient (and sometimes growing) dividend this century.

Excluding special dividends, the last two half-year ordinary dividends have amounted to 26.5 cents per share. That translates into a grossed-up dividend yield of 5.7%, including franking credits.

This seems like a good time to invest because it’s trading at close to the largest discount to its underlying value – the pre-tax net tangible assets (NTA) – in the last decade. At the time of writing, it’s trading at a discount of close to 15% to the NTA as of 24 April 2026.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

More reading

• Scentre Group maintains 2026 growth targets
• Scentre Group launches tender offer for 2030 subordinated notes
• Scentre Group earnings: sales rise and more visitors for Westfield in 2026

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

Fortescue Ltd (ASX: FMG) has been of the biggest dividend payers on the ASX over the past several years, and could continue being a strong passive income option in FY26 and FY27.

Fortescue is a leading ASX iron ore share. It has benefited from the ongoing demand from China for Australia’s iron ore, which has kept the iron ore price at a reasonable level, even when experts were pessimistic.

Currently, the iron ore price is sitting around US$107 per tonne, according to Trading Economics – that’s a rise of 8% year-over-year. Pleasingly, higher revenue per tonne is largely extra profit for Fortescue, aside from paying more to the government.

The strength of the iron ore price may bode reasonably well for the upcoming dividend payments, in my view. Let’s look at the size of the possible dividend for a $10,000 investment in Fortescue shares.

2027 passive dividend income projection

Analysts are expecting the ASX mining share to deliver a payout reduction to FY26 compared to FY25.

In FY25, the business paid an annual dividend per share of $1.10.

According to the FY26 forecast on Commsec, owners of Fortescue shares are expected to receive an annual dividend of approximately $1.04 per share. At the time of writing, that translates into a grossed-up dividend yield of 7.4%, including franking credits.

The Fortescue dividend in 2027 (FY27) is forecast to be 80 cents per share, according to Commsec.

At the time of writing, that translates into a potential forward grossed-up dividend yield for FY27 of 5.7%, including franking credits.

Passive income from $10,000 investment

If someone bought, or already owns, $10,000 of Fortescue shares, then an investor can look forward to hundreds of dollars of passive income in 2027, even though it’s suggested the payout could decline.

At the current Fortescue share price, a $10,000 investment could unlock $570 of annual passive income in 2027, including the franking credits.

Is the Fortescue share price a buy?

Analysts certainly don’t seem optimistic about the ASX mining share to deliver compelling returns at the current valuation.

Commsec notes that there are 17 current recommendations on Fortescue shares. Only one of those is a buy rating. There are also nine hold ratings and seven buy ratings.

In other words, professional investors don’t think the miner is a buy right now, so it could be wise to look at other passive income opportunities.

The post If I invest $10,000 in Fortescue shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Buying ASX 200 mining shares? Here’s how Rio Tinto, Fortescue and BHP stacked up in April
• Buy, hold, sell: Capricorn Metals, PLS Group, Fortescue shares
• 5 ASX All Ords shares downgraded by brokers this week
• Fortescue shares: Buy, hold, or sell? Bell Potter gives its verdict

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.

If you have $10,000 available to invest, blue chip ASX shares can be a good place to start looking.

These are businesses with scale, strong market positions, and long-term growth drivers. They may not always be the fastest movers on the market, but the best blue chips have a habit of compounding value over time.

With that in mind, here are three ASX blue chip shares to consider buying with $10,000.

Goodman Group (ASX: GMG)

Goodman Group remains one of the most attractive large-cap shares on the ASX.

The company owns, develops, and manages industrial property around the world. Its assets are used by customers that need well-located logistics facilities, warehouses, and increasingly, data centre infrastructure.

That last point is becoming more important. Goodman is no longer just a play on e-commerce and supply chains. It is also becoming increasingly exposed to the growth in cloud computing, artificial intelligence, and digital infrastructure.

This gives the business several long-term growth drivers. Retailers need faster fulfilment networks, companies need smarter logistics, and technology groups need large-scale sites for data centres.

Goodman’s strength is that it owns the type of scarce land and development capability needed to support these trends.

With demand for logistics and data infrastructure continuing to grow, Goodman remains a blue chip share with a strong long-term outlook.

ResMed Inc (ASX: RMD)

ResMed Inc is another ASX blue chip share that looks well placed for the years ahead.

The company is a global leader in sleep apnoea treatment and respiratory care. Its devices, masks, and software help patients manage breathing-related conditions, with demand supported by ageing populations and rising awareness of sleep health.

Its recent result shows that the company continues to perform positively. In the third quarter, ResMed delivered an 11% increase in revenue to US$1.4 billion, while earnings per share rose 21% after its gross margin expanded by 290 basis points to 62.8%. This was driven by cost improvements and manufacturing efficiencies.

This is not just a volume growth story. The margin improvement shows ResMed is also becoming more profitable as it scales.

The company is also investing in digital health, connected devices, and home healthcare. These areas could become more important as healthcare systems look for ways to treat more patients outside traditional hospital settings.

With strong demand, improving profitability, and a clear role in the future of home healthcare, ResMed remains a high-quality ASX blue chip to consider.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is another ASX blue chip share to consider buying with the $10,000.

The company provides enterprise software to government departments, universities, councils, and large organisations. These customers rely on its products for critical functions, which helps make revenue more predictable.

TechnologyOne’s shift to software-as-a-service has strengthened the business. Recurring revenue has increased, customer relationships have deepened, and the company has gained better visibility over future earnings.

That consistency is a major part of the appeal. TechnologyOne has built a long track record of earnings growth, supported by disciplined execution and a clear product strategy.

Its opportunity is not limited to Australia. The company has also been expanding in the United Kingdom, giving it another pathway for growth over the long term.

With recurring revenue, mission-critical software, and a proven management team, TechnologyOne is arguably one of the ASX’s strongest blue chip technology shares.

The post 3 ASX blue chip shares to buy with $10,000 appeared first on The Motley Fool Australia.

More reading

• Should you sell in May and stay away?
• Why I’d buy and hold these ASX 200 blue-chip shares for at least 5 years
• 10 excellent ASX shares to buy in May
• Why EQ Resources, Inghams, ResMed, and Skycity shares are tumbling today
• What’s going on with ResMed shares today?

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

The S&P/ASX 200 Index (ASX: XJO) stock Telstra Group Ltd (ASX: TLS) is one of the leading blue-chip shares for passive income.

When I look for dividends, I want to see a few different factors. For example, I want to see a good dividend yield, payout growth potential, and stability. I think Telstra ticks all three boxes and can help investors earn $200 in monthly income.

Let’s run through why Telstra stock is so appealing.

Dividend yield

The business already offers a pleasing level of passive income for shareholders.

Telstra delivered shareholders 10.5 cents per share in the FY26 half-year result. If it repeats that dividend with the FY26 result, then the current FY26 yield is 3.9% excluding franking credits, and more than 5.5% including franking credits.

While that’s not the biggest dividend yield on the ASX, I think it’s important to remember that Telstra offers other pleasing passive income aspects.

Payout growth potential

Compounding is a powerful force that can make a financial figure today much larger in five or ten years, as long as the growth rate is solid.

There are not many ASX 200 stocks with a dividend yield above 5% that are likely to grow their dividend payout by at least 10% in FY26, in my view.

Telstra grew its FY26 half-year dividend by 10.5%, and I think it’s likely to grow its annual dividend by 10.5%.

It has grown its annual dividend each year since the growth streak started in 2022.

I believe Telstra’s dividend growth can continue because it’s delivering revenue growth through subscriber growth and price rises (helping the average revenue per user (ARPU)).

Additionally, its earnings are growing at a stronger pace (funding good dividend growth) thanks to operating leverage, partly because the costs of its mobile network are being spread across more users.

Dividend stability

An ASX 200 dividend stock is not much use for passive income if its payouts dry up during a downturn, in my view. That’s when we need the cash payments to flow the most!

I’d say telecommunications (including an internet connection) is a very important service for households and businesses for a variety of purposes, so Telstra’s earnings are very defensive in my view.

$200 of monthly passive income

Telstra doesn’t pay a dividend every single month, but it does pay every six months.

With that, we can think of the monthly goal as an annual target and then divide that by 12.

To target $200 per month, we’re talking about $2,400 per year. To receive that annual goal, we’d probably need 11,429 Telstra shares.

I think the ASX 200 stock is a great option for passive income, but it’s close to its 52-week high, so it’s not the first business I’d buy today because it’s not at the greatest value.

The post I’d buy 11,429 shares of this ASX 200 stock to aim for $200 a month of passive income appeared first on The Motley Fool Australia.

More reading

• How to invest $10,000 for passive income in superannuation
• Own Telstra shares? Here’s what happened in April
• Top 10 ASX shares bought and sold in April
• Should I sell my Telstra shares in May?
• $250,000 to invest for passive income? Here’s how I would build a portfolio

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 S&P/ASX 200 Index (ASX: XJO) gained 2.2% in April, with only one of the big four ASX 200 bank stocks outperforming those returns.

The best performing of the big four Aussie banks, and the only one to beat the benchmark was Commonwealth Bank of Australia (ASX: CBA). CBA shares closed on 30 April trading for $173.66, up 3.6% from the 31 March close.

ANZ Group Holdings Ltd (ASX: ANZ) shares also finished April in the green. ANZ shares rounded out April trading for $36.65 apiece, up 1.9% in the month just past.

Turning to the laggards, Westpac Banking Corp (ASX: WBC) slipped 2.5% in April to end the month at $38.50 each.

And National Australia Bank Ltd (ASX: NAB) trailed the pack. Shares in the ASX 200 bank stock closed April trading for $39.88 each down, down 3.8% for the month.

What moved the ASX 200 bank stocks in April?

There was no price sensitive news out from CBA in April. Yet Australia’s biggest bank outperformed despite a number of brokers reaffirming their concerns over CBA’s lofty valuation. Amid ongoing global uncertainty, investors may find some comfort from CBA’s market leading business.

There was also no fresh news out from ANZ, with the ASX 200 bank stock reporting its half-year results on 1 May.

Westpac did release a trading update on 14 April ahead of its half year results release, scheduled for 5 May.

Westpac shares closed down 2.6% on the day after detailing items that will impact those half-year results.

Investors were reaching for their sell buttons after Westpac revealed it expects to see a $75 million decline in its reported net profit after tax (NPAT). Profits will take a hit from transaction costs relating to the sale of Westpac’s RAMS mortgage portfolio.

Management expects the sale to be completed in the second half of 2026.

On the positive side of the ledger, Westpac reported lending growth of 4% and deposit growth of 3% for the half.

Investors also heard from NAB in the month just past

What about NAB shares?

On 20 April, the ASX 200 bank stock released an operational update ahead of its own half-year results release, scheduled for 4 May.

NAB shares closed down 3.6% on the day after management said that increased market volatility, driven by the conflict in the Middle East, has seen the big four bank review its credit provisioning and capital settings.

Noting that Australia’s agriculture, transport, and manufacturing sectors are being particularly impacted, NAB reported it will book a $706 million credit impairment charge for H1 2026.

The post What happened with ASX 200 banks stocks NAB and CBA in April? appeared first on The Motley Fool Australia.

More reading

• How to shave a decade off retirement with 3 ASX stocks and ETFs
• 3 ASX dividend stocks with 4% yields to buy for a winning income portfolio
• New ANZ dividend: Here’s everything you need to know
• 16 ASX shares going ex-dividend in May
• Why is everyone talking about ANZ, Evolution Mining and Coles shares on Friday?

Motley Fool contributor Bernd Struben 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.

It was another busy week for Australia’s top brokers. This has led to a number of broker notes being released.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Catalyst Metals Ltd (ASX: CYL)

According to a note out of Morgans, its analysts have retained their buy rating on this gold miner’s shares with a trimmed price target of $15.13. Although the company’s quarterly update was a touch softer than expected, Morgans remains positive. It highlights that Catalyst Metals’ strong cash flow generation is continuing to strengthen its balance sheet. In addition, the broker has been pleased with the company’s exploration success. It notes that momentum is building across the Plutonic Belt, which bodes well for the future. All in all, with its valuation supported by strong cash generation and a clear production growth pipeline, Morgans thinks now could be an opportune time to invest. The Catalyst Metals share price ended the week at $5.21.

Fortescue Ltd (ASX: FMG)

A note out of Macquarie reveals that its analysts have retained their outperform rating on this iron ore miner’s shares with a trimmed price target of $22.00. This follows the release of a third-quarter update, which went down well with Macquarie. The broker highlights that Fortescue revealed lower-than-expected costs and a stronger than anticipated balance sheet. And while the Iron Bridge operation continues to weigh on its production, the broker remains positive. This is particularly the case given the potential for its green energy initiatives to support its growth. The Fortescue share price was fetching $20.01 at Friday’s close.

Megaport Ltd (ASX: MP1)

Analysts at Citi have retained their buy rating on this network as a service company’s shares with an improved price target of $15.00. According to the note, this follows the release of an update last month which revealed that Megaport’s recently acquired Latitude business has won a significant contract. Megaport announced that Latitude has secured a three-year compute and storage contract with a total value of approximately US$25.1 million (A$35.4 million). In response, Citi has upgraded its annual recurring revenue and EBITDA forecasts. And while the broker suspects that capital expenditure investment may have to increase in response to the contract, Citi isn’t concerned. This is due to the attractive returns and payback profiles. The Megaport share price ended the week at $8.94.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Buying ASX 200 mining shares? Here’s how Rio Tinto, Fortescue and BHP stacked up in April
• Buy, hold, sell: Capricorn Metals, PLS Group, Fortescue shares
• Brokers name 3 ASX shares to buy right now
• Another broker just recommended this ASX materials stock
• The five best ASX 200 stocks to buy and hold in April revealed

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Megaport. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX energy stock Deep Yellow Ltd (ASX: DYL) slumped almost 4% lower on Thursday after it released its March 2026 quarterly activities report. 

Deep Yellow is a uranium development company with a portfolio of Australian and global projects. The company has two advanced projects: Tumas, its flagship project in Namibia, and Mulga Rock in Western Australia. Both projects are located within tier 1 uranium jurisdictions. The company is also evaluating Mulga Rock for critical minerals and rare earth elements.

On Friday, its share price recovered roughly 2%. 

Following this week’s volatility, it is up 60% over the last 12 months. 

However it has fallen considerably from 52-week highs back in late January. 

What did the company report?

During the week, the ASX energy company reported: 

• Group cash balance on 31 March 2026 of A$171.6 million
• Deep Yellow continued to materially advance the staged development of the Tumas Project (Namibia), with multiple key milestones achieved as the Project moves closer to full construction readiness
• Exploration drilling at the Tinkas Prospect (Namibia) was completed in mid-March 2026, comprising 133 holes for 1,363 m.

Speaking on the results, management said: 

Deep Yellow entered the March 2026 quarter with clear momentum across the business, underpinned by continued advancement of our flagship Tumas development project and a disciplined focus on creating long-term shareholder value. During the quarter, major engineering, procurement and early development activities progressed to reflect the quality of the asset and the capability of our team.

What is Bell Potter’s view?

Following these announcements, the team at Bell Potter updated its view on this ASX energy stock. 

DYL’s refreshed management team is likely to maintain a disciplined strategy, which seeks to maintain leverage to underlying commodity price momentum with respect to development timelines for Tumas. We had anticipated a potential portfolio rationalisation, however, this is yet to be observed with a focus on advancing exploration activities across DYL’s portfolio.

The broker has maintained its speculative hold recommendation on this ASX energy stock. 

It has also reduced its price target to $1.90 (previously $2.00). 

From this week’s closing price of roughly $1.85, this updated price target indicates just 4% upside. 

We maintain a Speculative Hold recommendation in line with our ratings structure. DYL is leveraged to the uranium and nuclear thematic, with numerous positive catalysts on the horizon. The appointment of a new Managing Director, Greg Field, should alleviate market concerns following the resignation of John Borshoff in October 2025. We see no material shift in strategy, which seeks to maximise exposure to rising uranium prices.

The post Is this ASX energy stock a buy, hold or sell following quarterly results? appeared first on The Motley Fool Australia.

More reading

• Here’s why Morgans just upgraded Woolworths shares
• Bell Potter says this ASX real estate stock could rise 33%
• Top 10 ASX shares bought and sold in April
• 5 ASX mining shares to buy: experts
• Bell Potter says this beaten-down ASX materials stock can rise 56%

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 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.

With May now underway, I think this could be a good time to look again at ASX growth shares.

The past few months have been rough for parts of the market. A number of high-quality growth stocks have pulled back as investors worry about valuations, interest rates, and the potential impact of artificial intelligence.

But I think that kind of environment can create opportunities for investors with a longer time horizon.

If I had $10,000 to invest across ASX growth shares this month, these are three names I would consider.

Pro Medicus Ltd (ASX: PME)

I would start with Pro Medicus. This healthcare technology company provides medical imaging software to hospitals, radiology groups, and healthcare networks. It is one of the highest-quality growth shares on the ASX in my opinion.

What I like most is the nature of the product. Medical imaging is mission-critical. Hospitals and radiologists need fast, reliable, secure systems to manage huge volumes of imaging data. Once a platform is deeply embedded, switching is not something customers are likely to do lightly.

That gives Pro Medicus a strong competitive position.

The other part I find appealing is the global opportunity.

The company has already won major contracts in the US, but I still think it is early in its international growth story. The US healthcare market is enormous, and Pro Medicus has only captured a small portion of what could be available over the long term.

For me, this is the kind of business I would be happy to own for many years, even if the valuation can be demanding at times.

I would consider putting around $3,500 into this one.

Hub24 Ltd (ASX: HUB)

Next, I would look at Hub24. It operates an investment and wealth management platform used by financial advisers and their clients.

It may not sound as exciting as some technology names, but I think the growth story is very strong.

Australia’s wealth management industry is still changing. Advisers continue to move toward modern platforms that offer better functionality, flexibility, and efficiency. Hub24 has been one of the clear winners from that shift.

What I like about the business is the way scale can improve the economics over time.

As more funds move onto the platform, revenue can rise without costs needing to grow at the same pace. That creates operating leverage, which can support stronger earnings growth over time.

I also think Hub24 benefits from being embedded in adviser workflows. Once advisers build their processes around a platform, it can become sticky.

For me, that makes Hub24 a strong structural growth story rather than just a cyclical winner.

I would consider investing around $4,000 here.

SiteMinder Ltd (ASX: SDR)

The final ASX growth share I would include is SiteMinder.

SiteMinder provides software for hotels, helping them manage bookings, distribution, and revenue across multiple channels.

The travel industry continues to recover and evolve, and hotels increasingly need digital tools to compete. Managing rooms across online travel agents, direct bookings, and different markets is complex. SiteMinder helps simplify that process.

What appeals to me is the size of the global opportunity.

The hotel industry is highly fragmented, and many accommodation providers are still upgrading their systems. That gives SiteMinder a long runway if it can keep winning customers and expanding revenue per property.

It is also a business with recurring revenue characteristics, which I generally like in ASX growth shares.

There are risks, especially around competition and execution, but I think the long-term opportunity is attractive.

I would consider putting around $2,500 into SiteMinder.

Foolish takeaway

If I were investing $10,000 across ASX growth shares in May, I would want a mix of quality, structural growth, and long-term optionality.

That is why I would consider splitting it across Pro Medicus, Hub24, and SiteMinder.

Each business is exposed to a different part of the economy, healthcare technology, wealth platforms, and hotel software. That gives the portfolio some useful diversification while still keeping the focus on growth.

The post How I would invest $10,000 across ASX growth shares in May appeared first on The Motley Fool Australia.

More reading

• 10 excellent ASX shares to buy in May
• Why these ASX shares jumped 15%+ in April
• What’s making healthcare the worst sector on the ASX 200, down 39% in a year?
• These beaten down ASX 200 tech stocks could rise 55% to 60%
• Down 30%, why this ASX 200 stock could be a strong buy

Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and SiteMinder. 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 SiteMinder. The Motley Fool Australia has recommended Hub24 and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Every year, the same old market saying gets dragged back into the spotlight: “sell in May and go away.”

It sounds simple. Sell before the quieter part of the year, avoid any weakness, and come back later. But investing is rarely that neat.

For long-term investors, the better answer is usually to keep buying as normal.

Why selling ASX shares in May can be risky

The problem with selling based on the calendar is that markets do not follow a script.

Some years, May can be weak. In other years, markets can continue rising. The same applies to the months that follow.

Selling ASX shares because of an old seasonal rule creates a new problem: deciding when to buy back in.

That second decision is often harder than the first. If the market rises after selling, investors risk missing gains. If it falls, they still need the confidence to reinvest while headlines are negative.

Staying invested keeps the plan simple

Most investors are not trying to win one month or one quarter.

They are trying to build wealth over years. That requires consistency more than perfect timing.

Continuing to invest regularly in ASX shares means each purchase becomes part of a long-term plan. Some will be made when prices are high. Others will be made when prices are lower. This is often referred to as dollar-cost averaging.

Over time, that discipline can matter more than trying to guess which months will be stronger or weaker.

Volatility can create opportunity

Market weakness is not always something to avoid.

For investors still building their portfolios, pullbacks can provide better entry points into quality ASX shares and ETFs. If the underlying investment case remains intact, lower prices can make future returns more attractive.

This is why staying active through uncertain periods can be useful. It keeps investors focused on businesses and valuations rather than seasonal sayings.

The better approach with ASX shares

Selling in May might sound clever, but it can easily become a distraction.

A more practical approach is to keep buying quality ASX shares like Goodman Group (ASX: GMG) and Wesfarmers Ltd (ASX: WES), stay diversified, and focus on long-term goals.

Markets will always have weak periods. The challenge is not avoiding every one of them. It is staying consistent long enough for compounding to work.

The post Should you sell in May and stay away? appeared first on The Motley Fool Australia.

More reading

• How to invest $10,000 for passive income in superannuation
• How to shave a decade off retirement with 3 ASX stocks and ETFs
• Are Wesfarmers shares a good buy for passive income?
• Why I’d buy and hold these ASX 200 blue-chip shares for at least 5 years
• 10 excellent ASX shares to buy in May

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

ASX 200 energy shares outperformed last week, rising 1.96%, while a painful 8-day slide for the broader market finally ended on Friday.

The S&P/ASX 200 Index (ASX: XJO) rose 0.74% on Friday to finish the week at 8,729.8 points.

This equated to a weekly fall of 0.65%.

The market was pessimistic last week as negotiations between the US and Iran stalled and oil prices surged again.

Only three of the 11 market sectors finished the week in the green.

Let’s review.

Global fuel shock drags on with no end in sight

Energy prices lifted again last week as the market anticipated continuing supply disruption as the war in Iran continued.

On Friday, Brent Crude was trading at US$111.85 per barrel, up 6% over the week.

West Texas Intermediate Crude was US$106.40 per barrel, up 12.3% for the week.

Also last week, US heating oil rose 5.6%, US gas prices lifted 5.5%, and European gas prices increased 4.3%.

The Strait of Hormuz, through which about 20% of the world’s gas and oil supply is shipped, remains effectively shut down.

On Friday, Trading Economics analysts painted a grim picture as the US and Iran both dug in their heels:

President Donald Trump reaffirmed that the US would maintain its naval blockade of Iranian ports to intensify economic pressure.

Iran’s supreme leader Mojtaba Khamenei also dampened prospects for a deal, pledging not to relinquish the Islamic Republic’s nuclear or missile capabilities and indicating that Tehran would retain control over the strait.

Economists have been warning that oil supply shocks have a long-tail impact that is yet to fully play out in Western economies.

The analysts added:

… several countries could soon face acute oil shortages, as the final shipments that departed the Persian Gulf have already arrived at their destinations.

US crude exports surged to record levels last week, with global buyers increasingly turning to American producers to offset disrupted Middle Eastern supply.

What happened with ASX 200 energy shares last week?

The Woodside Energy Group Ltd (ASX: WDS) share price rose 1.56% to close at $33.12 on Friday.

The Santos Ltd (ASX: STO) share price lifted 2.95% to $8.02.

The Ampol Ltd (ASX: ALD) share price ascended 4.74% to $35.82, after reaching a 52-week high of $36.04 on Friday.

The Viva Energy Group Ltd (ASX: VEA) share price rose 4.17% to $2.50.

Karoon Energy Ltd (ASX: KAR) shares fell 3.13% to close the week at $2.17.

Beach Energy Ltd (ASX: BPT) shares dropped 4.1% to $1.17 apiece.

ASX 200 coal shares also rose last week alongside a 3.8% lift in the thermal coal price.

The thermal coal price was US$134 per tonne on Friday, up almost 9% since the war began.

The Yancoal Australia Ltd (ASX: YAL) share price bounced 6.96% to close at $7.68 on Friday.

The Whitehaven Coal Ltd (ASX: WHC) share price increased 8.83% to $8.63.

New Hope Corporation Ltd (ASX: NHC) shares lifted 3.75% to $5.53 apiece.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Energy (ASX: XEJ)	1.96%
Industrials (ASX: XNJ)	1.51%
A-REIT (ASX: XPJ)	1.17%
Financials (ASX: XFJ)	(0.31%)
Communication (ASX: XTJ)	(0.76%)
Consumer Discretionary (ASX: XDJ)	(0.8%)
Information Technology (ASX: XIJ)	(0.85%)
Materials (ASX: XMJ)	(1.25%)
Utilities (ASX: XUJ)	(1.49%)
Healthcare (ASX: XHJ)	(2.91%)
Consumer Staples (ASX: XSJ)	(5.45%)

The post ASX 200 energy shares lead and market finally cracks 8-day losing streak appeared first on The Motley Fool Australia.

More reading

• Why did ASX 200 energy stocks like Woodside and Santos struggle in April?
• These ASX financial stocks are bouncing, is it just the start?
• 3 ASX dividend stocks with 4% yields to buy for a winning income portfolio
• Here are the top 10 ASX 200 shares today
• ASX 200 snaps brutal 8-day losing streak. Can it hold?

Motley Fool contributor Bronwyn Allen 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.