Getting started with ASX shares can feel overwhelming. With thousands of stocks to choose from, knowing where to begin isn’t always easy.

One approach is to focus on high-quality businesses with strong competitive advantages and long growth runways. By buying and holding great companies for the long term, investors can benefit from the power of compounding while avoiding the temptation to trade in and out of the market.

For investors looking to build wealth over the next decade, here’s a mix of growth and income shares that could be worth buying and forgetting about until 2036.

Wesfarmers Ltd (ASX: WES)

Wesfarmers provides a strong foundation for any long-term portfolio.

The conglomerate owns market-leading businesses including Bunnings, Kmart, Officeworks, and Priceline. These operations generate reliable earnings and cash flow, supporting a growing stream of dividends for shareholders.

One of Wesfarmers’ greatest strengths is its ability to reinvest capital into new opportunities while maintaining a conservative balance sheet. This has helped it create value across multiple economic cycles.

The main weakness of this ASX share is that its mature retail businesses may not grow as quickly as younger companies. However, for investors seeking stability and income, that can be a worthwhile trade-off.

In a long-term portfolio, Wesfarmers can serve as the dependable anchor.

Goodman Group (ASX: GMG)

This $66 billion ASX share offers exposure to one of the most powerful structural growth themes in the market.

The property giant develops and manages logistics, warehousing, and data centre assets across the world. Demand for these facilities continues to grow as e-commerce expands and technology companies invest heavily in digital infrastructure.

Goodman’s strengths include its global footprint, development expertise, and relationships with major customers. It also has a large development pipeline that could support earnings growth for years to come.

The risk is that property stocks can be sensitive to interest rates and economic conditions. Its premium valuation also leaves less room for disappointment if growth slows.

Even so, Goodman provides investors with exposure to long-term global growth trends that could remain intact well into the next decade.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is arguably one of the ASX’s highest-quality growth companies.

The ASX healthcare share supplies imaging software to hospitals and healthcare providers around the world. Its Visage platform has helped it win major contracts in the United States, the world’s largest healthcare market.

The company’s strengths include high profit margins, recurring revenue, and a growing list of blue-chip customers. This ASX share also benefits from healthcare digitisation, a trend that still has significant room to run.

The obvious risk is valuation. Pro Medicus trades on a high earnings multiple, meaning expectations are already elevated.

However, for investors with a 10-year time horizon, Pro Medicus offers exposure to a world-class Australian growth company with substantial expansion potential.

The post New to investing? 3 ASX shares to set and forget until 2036 appeared first on The Motley Fool Australia.

More reading

• How to build a $1 million ASX share portfolio for retirement
• How to build an ASX share portfolio that can survive a market selloff
• Close to retirement? 4 ASX shares for decades of income
• 5 ASX 200 shares I would buy if I were starting from scratch
• How to invest in ASX shares when you can’t find stocks to buy

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

Superannuation is the most tax-effective way for working Australians to build a long-term passive income.

The drawback is that you can’t access your funds until you reach your preservation age, which is typically around 60 years old, and you’ve met the conditions of release.

The good news is that by investing now, you can benefit from low tax rates, compounding, and eventually a tax-free passive income once you transition to the pension phase.

The question is, how much do you actually need in your superannuation to be able to receive the passive income you want when the retirement years hit?

Let’s break it down, using $5,000 per month as an example.

How much do I need in superannuation to get $5,000 of monthly passive income?

If you want to earn $5,000 in passive income every month from your superannuation, that equates to $60,000 per year in dividend payments.

The easy way to work out the superannuation balance you’d need is to divide your annual passive income by the dividend yield.

The tricky part is that the answer varies widely depending on the dividend yield of the ASX shares you’d have in your portfolio. 

For example, a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of dividend income.

Let’s break it down further.

A $2 million portfolio with a 3% dividend yield would create $60,000 of annual passive income.

A $1.5 million portfolio with a 4% dividend yield would create $60,000 of annual passive income.

To get the same $60,000 of annual passive income from a portfolio with a 5% dividend yield, you’d need closer to $1.2 million. And if the portfolio’s dividend yield is closer to 6%, the portfolio size could be more like $1 million.

And so on. As your dividend yield increases, the superannuation balance needed to earn the same level of passive income goes down.

What ASX shares can I get around these dividend yields?

There is a huge range of ASX dividend shares available for superannuation investments, and their yields vary significantly. 

But here are a few options to get you started.

Lower yielding ASX dividend-paying shares such as Wesfarmers Ltd (ASX: WES), Coles Group Ltd (ASX: COL), Macquarie Group Ltd (ASX: MQG), and Washington H. Soul Pattinson and Co Ltd (ASX: SOL) are solid and reliable shares that offer a yield of around 2% to 3%.

For a mid-range yielding ASX dividend option, I’d look at defensive assets like Telstra Group Ltd (ASX: TLS) or Transurban Group (ASX: TCL), and blue-chip majors like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA), which pay a dividend of around 3% to 4%.

For a higher 5% to 6% dividend yield, I’d look at dividend-payers like National Australia Bank Ltd (ASX: NAB), Woodside Energy Group Ltd (ASX: WDS), or packaging giant Amcor (ASX: AMC).

If you want to take on more risk and go for a much higher-yielding ASX stock, my picks would be something like the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX) or the Metrics Income Opportunities Trust (ASX: MOT). These typically yield around 9% or more. 

The post How much do I need in my superannuation to get $5,000 per month in passive income? appeared first on The Motley Fool Australia.

More reading

• Australia’s new Age Pension rules: Age, income and asset tests explained
• The perfect ASX ETF retirement portfolio alongside your super
• How to invest $9,000 for passive income in superannuation?
• 10 amazing ASX ETFs for the next decade
• How to build a $1 million ASX share portfolio for retirement

Motley Fool contributor Samantha Menzies 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 Macquarie Group, Transurban Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Amcor Plc, Telstra Group, Transurban Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended BHP Group, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Older Australians might be eligible to receive the Centrelink Age Pension payment if they meet the age, income and asset guidelines.

The payment, which is designed to help fund retirees in retirement, is subject to an age, income and asset test.

The good news is, the rules are about to change, making more Australians eligible.

Here’s everything you need to know.

Age limit and maximum payment

The Age Pension is available to Australians aged 67 years and older.

It is paid on a fortnightly basis up to a maximum total payment of $1,200.90 per fortnight for singles and $1,810.40 for couples combined. 

These sums include the maximum basic rate, the maximum pension supplement, and the energy supplement.

The final amount you’ll receive (if anything) is heavily dependent on your income level and the assets that you own.

Age Pension income test

The income test assesses all of your income, pooled from all sources. That includes anything from superannuation contributions, investment income, part-time wages, bonuses, or commission payments. It’s applicable regardless of your age. 

From the 1st of July, the amount you can earn in retirement is expected to go up by $8-$16 per fortnight depending on your circumstances.

In order to receive the full Age Pension, from the 1st of July, single Australians are expected to be able to earn up to $226 per fortnight, and couples can earn up to $396 per fortnight.

But it’s still possible to receive a part pension if you earn over those thresholds. And Centrelink has raised these too.

From the 1st of July, singles are expected to be able to earn up to $2,627.80 per fortnight, and couples (living together) can earn up to $4,016.80 per fortnight and still qualify for at least a part-Age Pension. 

But, it’s important to note that your income is assessed on a sliding scale.

For a single person, your Age Pension will reduce by 50 cents for each dollar over $226 and for couples it will reduce by 25 cents for each dollar over $396.

It means that the more you earn, the lower your Age Pension payment will be, until it reaches zero.

Age Pension asset test

The asset test includes everything you own in full, in part, or have an interest in, but excludes the home you live in.

In order to receive the full Age Pension, from the 1st of July, single homeowners are expected to be able to own assets (including superannuation) up to a value of $333,000. For non-homeowners, this will be up to $600,000 in retirement.

But a couple has a different threshold, and it’s not double the amount of one person. From the 1st of July, a couple combined can own up to $499,000 in total if they own a property, or $766,000 if they don’t.

There is a similar rule for your assets, too. From the 1st of July, if your assets are less than $733,500 if you’re a single homeowner, and $1,000,500 if you’re a non-homeowner, you are still entitled to some level of payment.

Couples are also entitled to a part-payment so long as their combined assets aren’t more than $1,102,500 for homeowners. Non-homeowners can own assets totalling up to $1,369,500.

In order to determine how much income you make from your assets, Centrelink uses a deeming rule. And it looks like these deeming rate caps will get a boost next month too.

Deeming assumes your financial assets earn a fixed, set rate of income, regardless of what they actually earn.

This assumed income is then added to your other income to determine your Age Pension rate.

For single Australians, the first $66,800 of your financial assets will have a deemed rate of 1.25%. Everything over that is deemed to earn 3.25% interest.

Couples will have a 1.25% deeming rate on their first $110,600 of combined financial assets (this includes superannuation). Anything over $110,600 is deemed to earn 3.25%.

Don’t forget the ‘lower of two’ rule

The Age Pension eligibility depends on your income and the assets that you own. To ensure the system is fair, the Centrelink assesses you under both tests. It then applies whichever gives you the lowest rate of payment for your individual circumstances.

The post Australia’s new Age Pension rules: Age, income and asset tests explained appeared first on The Motley Fool Australia.

More reading

• How much do I need in my superannuation to get $5,000 per month in passive income?
• The perfect ASX ETF retirement portfolio alongside your super
• How to invest $9,000 for passive income in superannuation?
• 10 amazing ASX ETFs for the next decade
• How to build a $1 million ASX share portfolio for retirement

Motley Fool contributor Samantha Menzies 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.

Navigating the balance between super and investments in retirement is an important consideration for plenty of Aussies. 

Within their investment mix, retirees must also able to generate passive income through dividends without ignoring capital growth. 

Why dividend yields aren’t the only factor

While passive income is an appealing goal for retirees, making it the sole focus of a portfolio can actually undermine long-term financial security.

 Chasing high-yield investments often means concentrating in sectors like REITs, utilities, or other dividend stocks. 

This can reduce diversification and expose the portfolio to significant capital losses if those sectors fall out of favour. 

More importantly, a retiree at 65 today may live another 25 to 30 years, meaning inflation remains a genuine threat. 

A portfolio generating strong income today but delivering little capital growth can slowly erode real purchasing power over time. 

Balancing income with growth gives retirees a larger asset base to draw from, more flexibility during market downturns, and a better chance of not outliving their money. 

The goal, ultimately, isn’t just to generate cash flow, it’s to sustain a comfortable lifestyle for retirement. 

This goal can be achieved through a simple two fund portfolio. 

The growth engine 

The iShares S&P 500 ETF (ASX: IVV) tracks the S&P 500, giving you exposure to 500 of the world’s largest companies. 

This includes Apple Inc (NASDAQ: AAPL), Nvidia Inc (NASDAQ: NVDA) and hundreds more. 

Over the past 10 years, the fund has delivered roughly 15% annualised returns. 

For retirees with a 20-to-30-year time horizon (longer than most people assume), maintaining growth exposure is essential to prevent inflation eroding your purchasing power. 

At a management fee of just 0.04% per annum, IVV ETF is one of the cheapest ways to own global growth.

Your income stream

Where IVV builds wealth, the Betashares Australian Dividend Harvester Fund (ASX: HVST) pays the bills. 

The fund is specifically designed to provide high levels of dividend income to ASX investors. 

This ETF targets high dividend-yielding global equities, with distributions that have historically run above 7% per annum. 

That’s meaningful passive income you can use to supplement your superannuation pension payments – without selling down assets during volatile markets.

The superannuation complement

Australian retirees already have a built-in foundation of diversification through their super fund, which typically holds Australian equities, bonds, property, and infrastructure. 

This means your outside-super portfolio doesn’t need to replicate that complexity. 

IVV ETF adds international growth exposure that your super may underweight, while HVST ETF provides an income buffer during drawdown years.

The post The perfect ASX ETF retirement portfolio alongside your super appeared first on The Motley Fool Australia.

More reading

• 10 amazing ASX ETFs for the next decade
• 5 high-quality ASX ETFs to buy with $5,000
• Want to retire earlier? This mix of ASX shares and ETFs could help
• 3 high-quality ASX ETFs at 52-week highs I’d still buy
• 3 ASX ETFs that could help build long-term wealth

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 Apple, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Apple, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One of best elements of Australia’s wealth and retirement system is superannuation, which offers lower tax rates compared to an individual’s tax rate for someone working full-time. Superannuation is appealing for passive income investing, whether that’s in retirement or building wealth towards retirement.

The obvious benefit of a lower tax rate is that it improves the net investment return.

If I were investing $9,000 into superannuation, I’d choose businesses that have long-term growth potential and can provide a dividend yield upfront as well.

Investing in superannuation can mean putting that money to work for many years, giving it more time for compounding.

I’ll outline two of the businesses I think are excellent long-term buys for passive income. If an investor had $9,000 (or more) to invest, I’d be highly supportive of the following ideas.

APA Group (ASX: APA)

In my view, APA has been one of the most stable ASX dividend shares over the last 20 years thanks to its energy portfolio.

Of course, share prices do regularly change. But, in terms of the dividend payout, APA has been extremely consistent for investors.

In terms of the payout, APA has hiked its annual distribution every year since 2004. That’s an impressive two decades of consistent growth, year after year.

Only one other business has grown its annual dividend for more consecutive years in a row than APA.

Its cash flow is a key metric that helps fund higher payouts. Its gas pipeline network is the key asset of its energy portfolio. A lot of APA’s revenue linked to inflation, giving the business protection against some of the headwinds its cost base is experiencing.

I like how the ASX share is investing in a variety of areas to boost its future earnings, including electricity transmission, batteries and gas-powered energy generation.

At the time of writing, APA’s FY26 distribution translates into a distribution yield of 5.4%.

With the retirement of Australia’s ageing coal power plants getting closer, other energy assets will become increasingly important, so APA has an important role to play in the future.

WCM Global Growth Ltd (ASX: WQG)

The other ASX share I want to highlight for superannuation investors wanting passive income is WCM Global Growth, a listed investment company (LIC) that focus on the global share market.

WCM aims to find companies with strengthening economic moats (competitive advantages).

An economic moat is what allows the business to stay ahead of its rivals and defend their market share/margins. A competitive advantage could be in the form of intellectual property, cost advantages and so on. When the competitive advantage is strengthening, it means the business is in an even stronger position to grow profit.

On top of that, WCM also wants to see the business has a corporate culture that enables the strengthening of its economic moat. I’d say a business doesn’t get better randomly, it’s through what the company does throughout its operations.

By hunting across the world for these high-quality businesses, WCM gives its portfolio a great chance to deliver outperformance because it can spread a very wide net to find those opportunities.

Since the LIC’s inception date in June 2017, its portfolio has delivered an average return per year of 15.8% after fees, outperforming the global share market by an average of more than 2%.

With that excellent level of investment return, the ASX dividend share has steadily grown its annual dividend each year since it started paying one in 2019. A few years ago, it changed to quarterly dividend payments – each quarter has seen an increase since June 2023.

The next year of dividends are guided to be 7.3%, including franking credits, at the time of writing. I think it’s a great investment for superannuation investors wanting passive income. I expect its dividend can continue rising in the coming years.

The post How to invest $9,000 for passive income in superannuation? appeared first on The Motley Fool Australia.

More reading

• Close to retirement? 4 ASX shares for decades of income
• Here are my 5 best ASX passive income stocks
• APA Group announces estimated FY26 final distribution, up 1.7%
• 2 rock-solid ASX dividend shares to buy this month
• How to make $2,000 of monthly passive income from ASX shares

Motley Fool contributor Tristan Harrison has positions in Wcm Global Growth. 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 Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A decade is a long time in markets.

That is why ASX exchange traded funds (ETFs) can be useful. They give investors access to powerful long-term themes, quality companies, and broad diversification without needing to pick every winner.

Here are 10 ASX ETFs worth considering for the next decade:

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF gives investors exposure to many of the companies shaping the digital economy. This includes everything from cloud computing and chips to software, platforms, and artificial intelligence (AI).

Betashares Global Cybersecurity ETF (ASX: HACK)

The Betashares Global Cybersecurity ETF invests in the cybersecurity companies protecting the modern economy’s digital plumbing, where security spending is becoming a core operating cost rather than an optional upgrade.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF offers a simple way to own a slice of corporate America. It includes 500 of the largest companies on Wall Street. Many have global brands, deep capital, and decades of reinvention behind them.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF looks for US companies with strong business defences and valuation support. This means easy access to a portfolio built around durability rather than market size alone.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

The Betashares Global Cash Flow Kings ETF focuses on businesses that turn operations into real cash. This can support reinvestment, debt reduction, dividends, and long-term resilience.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF provides exposure to Asian technology leaders. It gives investors access to the region’s semiconductor, ecommerce, gaming, and digital platform ecosystems.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

The VanEck Video Gaming and Esports ETF taps into interactive entertainment, where gaming has become a major form of global media, social connection, and consumer spending.

VanEck MSCI International Quality ETF (ASX: QUAL)

The VanEck MSCI International Quality ETF targets global companies with attractive financial characteristics. This includes strong profitability, healthy balance sheets, and the ability to keep compounding through changing conditions.

Vanguard Australian Shares Index ETF (ASX: VAS)

The Vanguard Australian Shares Index ETF gives investors broad exposure to the local market. This includes the big four banks, mining giants, healthcare companies, retailers, infrastructure, and industrial businesses.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

Finally, the Betashares Global Robotics and Artificial Intelligence ETF invests in companies helping machines do more work. This includes companies focused on robotics, automation, sensors, software, and artificial intelligence.

Together, these ASX ETFs give investors exposure to quality, technology, automation, cybersecurity, global markets, and Australia’s own corporate leaders. That could make them strong long-term options for a decade-long portfolio.

The post 10 amazing ASX ETFs for the next decade appeared first on The Motley Fool Australia.

More reading

• 3 easy ways to buy Nvidia stock on the ASX
• Invest like Warren Buffett with these top ASX ETFs
• 5 high-quality ASX ETFs to buy with $5,000
• 3 world-class ASX ETFs to help build a winning portfolio
• Want to retire earlier? This mix of ASX shares and ETFs could help

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Betashares Capital – Asia Technology Tigers Etf, and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building a $1 million ASX share portfolio for retirement can sound like a huge target.

But I think the process becomes much more manageable when it is broken down into the right habits. This includes investing regularly, buying quality businesses, reinvesting along the way, and giving the portfolio enough time to compound.

The aim is not to find one perfect share that does all the work. I would rather build a portfolio that can grow steadily over time, produce income later in life, and give investors more financial freedom when retirement arrives.

Here is how I would approach it.

Build around businesses that can last

I think a retirement portfolio needs staying power.

That does not mean only buying defensive shares. It means owning companies that can remain useful across different economic cycles.

I would want exposure to businesses that sell essential services, operate important infrastructure, own strong brands, or solve problems that customers keep coming back to.

That could include healthcare companies such as ResMed Inc. (ASX: RMD), infrastructure-style businesses such as Goodman Group (ASX: GMG), or high-quality financial names such as Macquarie Group Ltd (ASX: MQG). I would also consider companies with repeat customer demand, such as Sigma Healthcare Ltd (ASX: SIG), where everyday health and wellness spending can support long-term relevance.

The exact shares can change over time. The principle is more important: I would want businesses that can still make sense to hold in 10 or 20 years, not shares that only look exciting because they are popular this month.

Let contributions do their job

A $1 million portfolio is rarely built in one move. It is usually built through repeated action.

For example, investing $500 a month at an average annual return of 9% could grow to around $1 million in roughly 32 years. Investing $1,000 a month at the same return could reach that level in about 25 years.

Those returns are not guaranteed. Markets can deliver long stretches of disappointment, and there will be years when the portfolio goes backwards.

The road to $1 million does not require perfection. It requires consistency, enough time, and the discipline to keep adding money when the market is cheerful and when it is miserable.

Own growth before chasing income

If retirement is still years away, I would be careful about building the portfolio too heavily around dividend yields from the start.

Income will eventually matter. But in the accumulation phase, growth can be just as important, perhaps more important.

A portfolio that focuses only on today’s dividends may miss businesses that can reinvest at attractive rates and become much larger over time. That is why I would want a blend of dividend payers and growth shares.

Be willing to look dull

Some of the best long-term investments can feel boring while they are being held.

That is fine with me. 

A retirement portfolio does not need to impress anyone at a barbecue. It needs to keep compounding quietly, survive downturns, and avoid unnecessary mistakes.

I would rather own a good business for a decade than keep trying to find the next market darling. The frequent buying and selling can feel active, but activity is not the same as progress.

The real advantage comes from giving strong companies enough time to do their work.

Foolish takeaway

I think building a $1 million ASX share portfolio is about creating a system that can keep moving forward.

I would focus on durable businesses, regular investing, sensible diversification, and growth that can support future income.

There will be setbacks. Every long-term investor gets them. But a retirement portfolio should be built with that reality in mind.

Start with quality and the right mindset, add money consistently, reinvest along the way, and let time do what it does best. That is the approach I would use to aim for a $1 million ASX share portfolio for retirement.

The post How to build a $1 million ASX share portfolio for retirement appeared first on The Motley Fool Australia.

More reading

• How to build an ASX share portfolio that can survive a market selloff
• How I’d choose the best ASX shares I could hold for 10 years
• Which Aussie blue-chip stock is the best performer so far in 2026?
• Macquarie shares hit another record high. Has the rally gone too far?
• Down 30%, should I buy ResMed shares now?

Motley Fool contributor Grace Alvino 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 Goodman Group, Macquarie Group, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Goodman Group and Macquarie 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 most recognisable ASX healthcare shares has been on a downward spiral over the last year. The once mighty CSL Ltd (ASX: CSL) shares have fallen 55% in the last 12 months at the time of writing.

Once trading for over $300 per share, they now sit at around $108, after dipping below $100 earlier this year. 

This has led to plenty of analysis and re-ratings from experts and brokers.

Investors who have been monitoring the situation will likely be wondering at what price CSL shares are simply too cheap to ignore. 

To help make that decision, let’s look at the bull and bear case for CSL shares. 

The bull case 

For those looking for the value proposition, CSL could stand as one of the most compelling long-term compounders on the ASX. 

The recent sell-off was influenced by three main headwinds: 

• A broad healthcare sell-off as investors rotated into resources during the Middle East conflict
• A series of earnings downgrades driven by slower-than-expected plasma collection recovery
• Leadership uncertainty after CEO Paul McKenzie’s departure. 

However the company remains built on a defensible moat that few biotech peers can match. 

The company’s plasma-derived therapies serve patient populations with chronic, lifelong needs, creating recurring revenue streams largely insulated from economic cycles. 

CSL’s vertically integrated plasma collection network represents a formidable barrier to entry, as scale and collection centre density take decades and billions of dollars to replicate meaningfully. 

With a structural undersupply of plasma globally, pricing power remains intact. 

For patient investors willing to look through near-term margin pressure from plasma collection cost normalisation, CSL offers a rare combination of defensive cash flows, reinvestment optionality, and genuine global pricing power in a sector where quality tends to be rewarded over time.

As my colleague Mark Verhoeven reported earlier this week, the value looks tempting. 

It now trades at just 12 times forecast FY2026 earnings, which could be the discount of the decade. 

The bear case 

On the flip side, this isn’t a guaranteed recovery story. 

The bear case for CSL centres on a business that, despite its quality reputation, faces a convergence of structural and cyclical pressures that the market may not yet have fully priced in. 

Plasma collection costs remain stubbornly elevated as the post-COVID normalisation has proven far slower and more expensive than management initially guided. 

This is squeezing margins in the core business. 

Additionally, China, once a reliable growth market for albumin, has turned into a headwind as domestic supply expands and pricing deteriorates. 

Finally, leadership instability adds another layer of risk as CEO transitions at complex, globally distributed businesses rarely go smoothly. 

It also comes at a challenging time, with guidance already cut. 

Essentially, there is still little room for disappointment in a market that seems to be filled with little investor patience. 

There’s plenty of reasons why investors may be searching for opportunities elsewhere.

Foolish takeaway 

CSL could present a serious value right now. 

However investors need to be aware that short term headwinds could persist, making this a true, long term prospect. 

In 10 years we might be looking back at the outrageous value investors were able to get in 2026, however it may take some patience to ever reap the rewards. 

The post The bull and bear case for CSL shares appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• How much could the CSL share price rise in the next year?
• Why has the ASX 200 given up its early rebound today?
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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 CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investors have long relied upon ASX 200 bank shares for reliable chunky dividends each year.

But can we continue to do so?

Investment firm, Market Partners, explains why it prefers another type of ASX financial share over banks for dividends these days.

Expert recommends better stocks for dividends

Instead of ASX 200 bank shares, Market Partners analysts James Gerrish and Shawn Hickman prefer insurance stocks.

The main case against the banks is not their relatively high share prices.

It’s that investment loans have been powering their growth, and “that is likely to be pulled in” following the Federal Budget.

The Federal Government proposed major changes to capital gains tax (CGT) in the budget last month.

Under the changes, the 50% CGT discount for assets held longer than 12 months will be replaced by a cost base inflation indexation method from 1 July next year, and a minimum 30% CGT rate will apply.

In a webinar, Hickman, who is head of research at Market Partners’ digital advice platform, Market Matters, said:

It’s hard to imagine people are going to go out there aggressively in the near future and get fresh investment loans.

This may impact the earnings of the ASX 200 bank shares, which would threaten future dividends.

They’re very secure businesses, but the growth factor for them to push a lot higher from here is very hard to imagine.

And that’s why Market Matters is underweight.

We still own ANZ Group Holdings Ltd (ASX: ANZ). We still own Westpac Banking Corp (ASX: WBC). They’re strong. They’re going to make money. They’re going to pay good dividends, but we don’t see any reason to be overweight the banks.

While Gerrish emphasises that they are “certainly not negative on the banks” at today’s share prices, investing is still “a relative game”.

Gerrish explained:

… insurers benefit from higher interest rates. So they earn a higher income from their invested funds.

You pay your premiums, they invest the premiums, they earn a return on the premiums, then they pay out claims when they come up.

He points out that the insurance sector has experienced volatility for the past three or four years, but things have changed.

… now the tailwinds on the insurance side are improving, we think, and you think about insurers yielding circa 5%, banks mid-4%s.

Insurers have less economic sensitivity, banks have a greater degree of economic sensitivity relative to the insurers.

I think there’s a case to be made that there’s more upside in the insurers than banks.

That doesn’t mean the banks don’t go up from here, but there’s probably more upside in terms of the insurance stocks relative to the banks.

Preferred ASX insurance share for dividends

Gerrish said Suncorp Group Ltd (ASX: SUN) is Market Matters’ preferred ASX insurance share for dividends moving into FY27.

Since selling its banking division to ANZ, Gerrish reckons Suncorp has become a “simpler and safer institution”.

He says a significant new reinsurance program, that takes about 2% off Suncorp’s earnings, will protect future dividends for investors.

In this sort environment, where yield is really, really important, I think Suncorp stacks up here.

It trades about two P/E points cheaper than Insurance Australia Group Ltd (ASX: IAG).

I think it probably should trade more aligned with IAG.

Reinsurance protects Suncorp’s earnings by transferring part of the financial risk of high payouts after major events.

Gerrish noted that climate change has raised risks and encouraged insurers to invest in reinsurance.

The experts point out that higher inflation can allow insurers to raise premiums, however it also makes repairs more expensive.

Gerrish added:

Insurance is a good business when they get their pricing discipline right and claims are benign.

That’s the sort of environment that they’re in now.

So insurance companies can now print a lot more money.

And the other thing around higher rates… is their investment portfolio has a long duration.

So, as they roll over fixed income — the majority is in fixed income — then they’re getting higher rates of return on the investment portfolio as well.

Top ASX insurance share pick for growth

The experts said their top pick among ASX insurance shares for growth into FY27 is QBE Insurance Group Ltd (ASX: QBE).

Gerrish said:

They’ve been working hard over the last five, 10 years around simplification of their business.

So they went out there, they made a huge number of acquisitions… and it’s starting to pay benefits.

The experts said QBE was an emerging turnaround story, with the share price trading close to 15-year highs.

Gerrish added:

Turnarounds can take a lot longer than anyone envisages.

But once a turnaround is starting to gain traction like it is in QBE, then the stock can run a lot further and a lot longer than anyone thinks.

So, on 12x [P/E], growing earnings at high single digits, yielding 4.7% part-franked [dividends] with earnings tailwinds, we think QBE stacks up.

ASX 200 bank share dividends

The trailing dividend yields of the ASX 200 bank shares are as follows:

• Commonwealth Bank of Australia (ASX: CBA) shares have a trailing dividend yield of 3% plus 100% franking
• National Australia Bank Ltd (ASX: NAB) shares have a trailing dividend yield of 4.5% plus 100% franking
• ANZ shares have a trailing dividend yield of 4.8% plus 70% to 75% franking
• Westpac shares have a trailing dividend yield of 4.3% plus 100% franking

The post Invested in ASX 200 bank shares for dividends? This fundie prefers other stocks appeared first on The Motley Fool Australia.

More reading

• If I invest $8,000 in Westpac shares, how much passive income will I receive in 2027?
• 5 ASX 200 shares I would buy if I were starting from scratch
• How to invest in ASX shares when you can’t find stocks to buy
• Where I’d invest $2,000 in ASX 200 shares
• Which Aussie blue-chip stock is the best performer so far in 2026?

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.

A market selloff will inevitably arrive eventually. It might be caused by interest rates, inflation, earnings downgrades, politics, a recession scare, or something else investors did not see coming.

The exact reason matters less than the preparation.

A strong ASX share portfolio should not be built only for good times. It should also be able to handle rough markets without forcing investors into bad decisions.

Start with businesses, not share prices

The first step is to stop thinking about a portfolio as a collection of ticker codes.

It is a collection of businesses.

When markets fall, share prices can move far more quickly than the underlying businesses. That can make a good company look broken, or a weak company look cheap.

This is why quality matters. A business with a strong balance sheet, dependable demand, good management, and a clear reason to exist has a better chance of coming through difficult periods intact.

Its share price may still fall, but a stronger business has a better chance of recovering and continuing to grow once conditions improve.

Own more than one type of strength

A resilient portfolio should not rely on one sector, one theme, or one economic outcome.

Different companies can bring different types of strength. A defensive business such as Woolworths Group Ltd (ASX: WOW) can provide exposure to everyday household spending, while Transurban Group (ASX: TCL) gives investors exposure to toll road infrastructure used across major transport corridors.

On the other side, companies such as Goodman Group (ASX: GMG), TechnologyOne Ltd (ASX: TNE), and Xero Ltd (ASX: XRO) can offer stronger long-term growth potential through property development, enterprise software, and cloud-based small business tools.

The main point is to avoid building a portfolio that only works when one part of the market is doing well.

Know what you want to buy before the panic

Selloffs are much easier to handle when investors already know what they want to own.

During a market panic, headlines become louder, confidence disappears, and it can feel safer to do nothing.

That is why a watchlist can be powerful. Investors can identify quality ASX shares in advance, decide what makes them attractive, and think about what price would make them more compelling.

This turns a selloff from a surprise into a possible opportunity. Instead of trying to make decisions from scratch while the market is falling, investors can return to work they have already done.

Leave room for mistakes

No portfolio will be perfect. Some companies will disappoint, some valuations will prove too high, some dividends will be cut, and some growth stories will take longer than expected.

That is why diversification is important.

A portfolio does not need dozens of holdings to be sensible, but it should not depend too heavily on one company being right.

This is especially important with higher-growth shares. They can create significant wealth over time, but they can also fall sharply when expectations change.

A mix of defensive earners, dividend payers, quality compounders, and selected growth shares can give investors more ways to win.

Focus on the plan, not the noise

The hardest part of a selloff is usually emotional. Watching a portfolio fall is uncomfortable, even when the long-term plan still makes sense.

That is why the best time to build a selloff-resistant portfolio is before the selloff starts.

Own businesses you understand, keep debt and risk in mind, stay diversified, keep cash available if that suits your strategy, and know which shares you would be happy to buy if the market gives you the chance.

A portfolio that can survive a selloff is not one that never falls. It is one that gives investors enough confidence to stay the course when the market becomes difficult.

The post How to build an ASX share portfolio that can survive a market selloff appeared first on The Motley Fool Australia.

More reading

• Here are my 5 best ASX passive income stocks
• How I’d choose the best ASX shares I could hold for 10 years
• Woolworths shares vs Coles: Buy, hold, or sell these ASX giants?
• 4 ASX 200 shares downgraded by brokers this week
• Why has the ASX 200 given up its early rebound today?

Motley Fool contributor James Mickleboro has positions in Goodman Group, Technology One, Woolworths Group, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Technology One, Transurban Group, and Xero. The Motley Fool Australia has positions in and has recommended Transurban Group and Xero. 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.