When it comes to building long-term wealth for my kids, my focus is on high-quality ASX shares that can compound over decades.

After all, my kids are still little. So there’s no point in me chasing the next big booming growth stock when consistent growth is much more valuable for my kids’ futures

Here are two ASX 200 shares I’d buy and hold for my kids.

iShares S&P 500 ETF (ASX: IVV)

I think one of the best ASX shares to buy for kids is a broad-market ETF. Rather than picking individual stocks, an ETF gives its shareholders a stake in multiple companies at once.

IVV is a great example. The ETF provides its shareholders with exposure to around 500 of the largest US-listed companies, including well-known global brands, businesses with large customer bases, and those with strong balance sheets. 

The ETF holds major names that even your kids would be aware of. Such as Nvidia, Apple, Amazon, Tesla, Netflix and many others.

The benefit of investing in an ETF rather than a single stock is that if one company suffers a share price decline, it would have a limited impact on the ETF as a whole. 

And this is ideal for investors looking to buy ASX shares for their kids to hold for the long term. 

IVV is generally a low-risk investment versus trying to pick an individual winner. Instead of betting on a single company, investors are effectively buying their kids a slice of all the largest US businesses at once.

IVV pays passive income, too. It generally pays its shareholders four dividends per year. Most recently, it paid shareholders 13.95 cents per share in April, which translates to a trailing dividend yield of roughly 1% at the time of writing.

Telstra Group Ltd (ASX: TLS)

If I were to buy a single stock for my kids, it would be a classic ASX defensive share, such as Telstra.

The telecommunications company is dominant in Australia. It operates one of the country’s largest mobile networks and is a major fixed-line internet provider. 

Mobile phone and internet use are already considered necessities, and I think both services will only continue to grow over the next few decades.

This stable and growing demand means Telstra is also well-positioned to benefit from recurring revenue and earnings. And this will be the case regardless of the stage of the economic cycle we are in. 

This type of stock is also perfect for investors who want to hedge against potential volatility elsewhere in their kids’ portfolio.

And if that isn’t enough, Telstra’s defensive nature means it can also pay shareholders a consistent passive income, too.

The ASX 200 telco most recently paid shareholders a dividend of 10.5 cents per share in March, 90.48% franked. Analysts forecast Telstra to pay a total dividend of 21 cents in FY26. This translates to a forward dividend yield of around 4.1% excluding franking credits, at the time of writing.

Washington H. Soul Pattinson and Company Ltd (ASX: SOL)

If I were to focus on long-term dividend income. Soul Patts is another ASX share I’d consider buying for my kids. 

Soul Patts is an Australian diversified investment house. It’s often compared to Warren Buffett’s Berkshire Hathaway because it invests in a broad portfolio of assets ranging from ASX-listed companies, to private credit, to real estate, and others.

Not only is it widely regarded as Australian dividend royalty, but it’s also one of the few ASX shares that have continually raised its dividend payments over the past 28 years.

Soul Patts historically pays its fully-franked dividends twice per year in May and a final dividend in December. It occasionally also pays shareholders an additional special dividend.

For the first half of FY26, Soul Patts paid a fully-franked interim dividend of 48 cents per share. This was a 9.1% increase on the prior corresponding period.  At the time of writing, the ASX shares have a grossed-up dividend yield of around 2.4%, including franking credits.

The post 3 ASX shares I’d buy and hold for my kids appeared first on The Motley Fool Australia.

More reading

• Where should I invest inside SMSFs instead of property?
• Why US stocks have hit record highs while ASX shares have barely risen in 2026
• How to invest $500, $5,000, and $50,000 on the ASX
• Want a pay rise? These ASX dividend shares keep delivering
• 3 strong ASX ETFs for beginner investors

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 iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended 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.

ASX dividend shares are some of my favourite investments in my portfolio because they provide a mix of passive income and long-term growth.

I own a mixture of ASX dividend shares, ASX growth shares and exchange-traded funds (ETFs) for a variety of investment purposes.

One of the businesses that I’ve made among my biggest positions is L1 Long Short Fund Ltd (ASX: LSF).

For me, there are three key reasons that I really like the listed investment company (LIC).

Good and growing passive income

The LIC has an impressive track record of delivering consistent dividend growth.

It has increased its annual payout each year since it started paying in FY21. The business recently changed to paying a quarterly dividend and it has been increasing its dividend every quarter.

If it continues growing its quarterly dividend at a similar pace, the next four dividends would come to a grossed-up dividend yield of 4.9%, including franking credits, at the time of writing.

I think that’s a solid starting point, with plenty of room for further dividend growth as a result of strong investment performance. I expect the November 2026 quarterly dividend to be 11.4% larger than the November 2025 quarterly dividend.

Strong investment performance

A LIC funds its dividends from the investment performance of its portfolio. With the ASX dividend share’s excellent long-term performance, it can continue paying pleasing passive income and funding growing payouts.

The performance has been so good that it has been able to deliver excellent capital growth too. In the past eight years, the L1 Long Short Fund share price has risen close to 130%.

The LIC targets a mixture of both ASX shares and international shares, through both normal investing and short-selling. Through that strategy, it’s able to utilise both good value and expensive shares, locally and globally, to its advantage.

In the past five years, the L1 Long Short Fund portfolio has returned an average of 17% (net) per year. That’s a great return, in my opinion! Of course, past performance is not a guarantee of future performance.

Diversification

One of the best reasons I like this business is how it generates returns. It hasn’t relied on technology businesses due to how it invests – it’s more likely to short a tech stock than invest in it for the long-term.

Instead, it looks at opportunities in other areas such as gold shares, copper shares, industrials and telecommunications. In other words, the ‘real’ economy.

You can make good returns in almost any business, including cyclical ones, if bought at the right price. So, by investing in this ASX dividend share, I’m getting exposure to companies and sectors I don’t in other parts of my portfolio.  

But, this isn’t the only ASX dividend share I want to buy for my portfolio.

The post Why I made this top ASX dividend share one of my biggest investments appeared first on The Motley Fool Australia.

More reading

• Where should I invest inside SMSFs instead of property?
• How to invest $12,500 for passive income in superannuation?
• How much is needed in superannuation to target a $9,000 monthly passive income?
• 2 great ASX dividend shares I plan to buy in June
• Forget BHP shares! Buy these ASX dividend shares instead for passive income

Motley Fool contributor Tristan Harrison has positions in L1 Long Short 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.

Working out what superannuation balance you need at any retirement age depends entirely on your living situation, financial situation, and the lifestyle you want to live when you finally stop working.

The average retirement age in Australia is 65. But some like to wait a little longer, until they can (if eligible) access the Age Pension at age 67. Meanwhile, others might delay their retirement into their 70s to let their superannuation compound a little longer.

Don’t want to wait any longer than the average Aussie? Let’s break down what retiring at 65 might look like and how much money you will need.

What type of retirement do you want?

In Australia, retirement is generally split into two broad categories: modest and comfortable. 

A modest retirement, according to the Association of Superannuation Funds of Australia (ASFA), is defined as being able to cover expenses slightly above what the full Centrelink Age Pension would provide from age 67. This would cover things like basic health insurance and home repairs, but wouldn’t leave much room for leisure activities, and certainly not a holiday.

ASFA defines a comfortable retirement as one that enables retirees to maintain a good standard of living well beyond the age pension. It budgets for expenses beyond a modest retirement, including top-tier private health insurance and regular leisure activities. It allocates funds for home repairs or renovations, and perhaps even an annual holiday. 

What will a modest or a comfortable retirement cost me?

ASFA estimates that a modest retirement will cost around $36,434 per year for singles and $52,473 per year for couples. These figures assume you’ll also receive a part Age Pension.

For many Australians, a modest retirement is achievable, but it’ll require a tight budget, strict financial goals, and careful planning. But it goes without saying that every Australian strives to live a comfortable retirement far above the bare minimum.

A comfortable lifestyle means your budget will be a lot more flexible. 

ASFA data shows that a comfortable retirement is estimated to cost around $55,923 per year for singles and $78,566 for couples. Again, it assumes you’ll receive a part Age Pension and that you own your home in full. 

What do I need in my superannuation by age 65 to be able to afford that?

In order to fund a modest retirement, singles will need around $110,000 in their superannuation when they retire, and couples around $120,000. This should be achievable by the majority of Aussies by the time they reach age 65 and want to retire.

A comfortable retirement requires a lot more, though. Single Australians will need around $630,000 in their superannuation by age 65, and couples will need around $730,000.

There’s another catch

Keep in mind also that ASFA calculates these figures assuming you’ll access your superannuation from age 67. If you want to retire a little earlier at age 65, you’ll need to account for those two extra years of funds. 

You’ll also need to take into account your life expectancy from that point. 

For example, $54,840 per year on a balance of approximately $640,000 means ASFA’s data assumes you’ll only need to fund around 11 years of a comfortable retirement.

Add an extra two years on that, and your superannuation money will need to be spread more thinly.

Also, if you don’t own your home outright, you’ll also need to consider how you’ll pay your mortgage or rent on top of your other bills. 

It’s also wise to have an emergency fund set aside.

The post How much superannuation do I really need to retire comfortably at age 65? appeared first on The Motley Fool Australia.

More reading

• Where should I invest inside SMSFs instead of property?
• Could Woolworths shares be a smart defensive buy for FY27?
• Why US stocks have hit record highs while ASX shares have barely risen in 2026
• Buy, hold, sell: Beach Energy, Flight Centre, and Judo Capital shares
• How to invest $500, $5,000, and $50,000 on the ASX

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.

Self-managed superannuation funds (SMSFs) are a great way to invest in a variety of asset classes, including ASX shares. Residential property is one potential investment, though that area may be less attractive if SMSFs can’t borrow to buy.

Labor and the Greens have reportedly struck a deal to pass the capital gains tax (CGT) and negative gearing changes announced in the Federal budget, while including a new measure to end SMSF borrowing to buy properties.

With that change in mind, I think there are still plenty of compelling investment opportunities, particularly on the ASX share market.

Commercial properties AKA real estate investment trusts (REITs)

SMSF investors could decide to invest in commercial properties instead, which may provide a higher yield than residential properties.

I like investing in real estate investment trusts (REITs) because they’re easy to transact on the ASX. We can buy into a portfolio of properties in a single investment, and the properties are managed for us by property fund managers.

There are various REITs to choose from, including ones based on industrial properties, farmland and so on.

Three of my favourites in the sector include Rural Funds Group (ASX: RFF), which owns farmland, Centuria Industrial REIT (ASX: CIP), which owns industrial property, and Charter Hall Long WALE REIT (ASX: CLW), which owns a diversified portfolio of properties with long leases.

There are other REIT sectors, like shopping centres and office buildings, though they face headwinds, so I’d be very selective about those two areas and only buy REITs at an attractive discount to their net asset value (NAV).

ASX dividend shares with fully franked dividends

An even more attractive area to invest could be companies that pay attractive, fully franked dividends. Franking credits are refundable tax offsets, which are great for Australian SMSF investors.

ASX blue-chip shares could be some of the most reliable businesses to own. I’m thinking of names like Telstra Group Ltd (ASX: TLS), Bunnings and Kmart owner Wesfarmers Ltd (ASX: WES) and Coles Group Ltd (ASX: COL). They each have a solid dividend yield and a track record of increasing their dividends annually over the last few years.

There are a few other S&P/ASX 200 Index (ASX: XJO) shares that have a strong track record of reliability, including Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and APA Group (ASX: APA). Lovisa Holdings Ltd (ASX: LOV) and JB Hi-Fi Ltd (ASX: JBH) also have an impressive track record of growing dividends over the long-term.

Finally, I’m a big fan of listed investment companies (LICs), which allow investors to diversify and gain exposure to quality assets while also receiving attractive dividend yields and growing payouts.

Some of my favourite LICs for passive income are MFF Capital Investments Ltd (ASX: MFF), WCM Global Growth Ltd (ASX: WQG), L1 Long Short Fund Ltd (ASX: LSF), Future Generation Global Ltd (ASX: FGG), Future Generation Australia Ltd (ASX: FGX), Hearts and Minds Investments Ltd (ASX: HM1) and WAM Microcap Ltd (ASX: WMI).

The post Where should I invest inside SMSFs instead of property? appeared first on The Motley Fool Australia.

More reading

• How to invest $500, $5,000, and $50,000 on the ASX
• Want a pay rise? These ASX dividend shares keep delivering
• 3 top ASX shares to buy for an SMSF
• 3 ASX stocks that should be in every retirement portfolio 
• 3 ASX dividend favourites are hitting 52-week highs today. Are investors getting defensive?

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, Future Generation Global, Hearts And Minds Investments, L1 Long Short Fund, Mff Capital Investments, Rural Funds Group, Wam Microcap, Washington H. Soul Pattinson and Company Limited, and Wcm Global Growth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Mff Capital Investments, Rural Funds Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Lovisa and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woolworths Group Ltd (ASX: WOW) has not been the easiest ASX share to own recently.

Supermarket investing can look simple from the outside, but the reality is more demanding. Customers want value, suppliers want fair prices, regulators are watching, costs keep moving, and competition does not disappear.

Even so, I think Woolworths could be a smart defensive buy for investors looking ahead to FY27.

A business built around repeat decisions

The appeal of Woolworths starts with frequency.

Most households do not think about groceries as an investment theme. They just keep buying them. Week after week, people need food, cleaning products, personal care items, pet supplies, and household essentials.

That repeat demand gives Woolworths a strong base.

The company has a large store network, a major online presence, loyalty data, supply chain scale, and relationships with millions of customers. That gives it many ways to improve the shopping experience, manage stock, personalise offers, and make the weekly shop easier.

I think that customer connection is valuable.

In retail, small gains can matter. A better app, a faster delivery slot, fewer out-of-stocks, sharper pricing on key items, or a cleaner store experience can all influence where people spend their grocery budget.

Defensive does not mean effortless

Woolworths still has plenty of work to do.

Grocery retail has become politically sensitive because households are under pressure. The company needs to balance margins, customer trust, supplier relationships, staff costs, and investment in stores and technology.

That is a difficult balance.

But I think the best defensive businesses are not the ones with no challenges. They are the ones with enough scale, relevance, and cash generation to keep working through them.

Woolworths has those qualities.

It also has a place in the economy that should remain important regardless of market mood. People may delay a holiday, a new appliance, or a home renovation. They still need groceries.

Why I’d consider buying Woolworths shares

For investors, the question is whether Woolworths can turn its defensive position into acceptable long-term returns.

I think it can.

The company does not need to become a high-growth technology stock. It needs to keep earning customer trust, improve productivity, use data well, invest in online and store operations, and return cash to shareholders over time.

That may sound unexciting, but it can be valuable in a diversified portfolio.

Woolworths can provide a different kind of exposure to the ASX. It is linked less to commodity prices or banking margins and more to everyday household spending. That can make it useful when investors want stability.

Foolish takeaway

Woolworths is not a perfect business, but I think it remains a useful one.

The company sits close to Australian households, has scale that few retailers can match, and operates in a category where demand keeps returning. In FY27, that kind of resilience could be appealing if investors remain nervous about the economy.

The investment case is about owning a business that can keep serving customers, generating cash, and adapting to a tougher retail environment. For investors wanting a defensive ASX share with long-term relevance, I think Woolworths is worth considering.

The post Could Woolworths shares be a smart defensive buy for FY27? appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend favourites are hitting 52-week highs today. Are investors getting defensive?
• Are Woolworths shares still a buy at a 52-week high?
• This ASX 200 giant just hit a 52-week high. Is it getting too expensive?
• Woolworths shares soar to new multi-year high: Buy, sell or hold?
• One ASX dividend and one ASX growth stock to buy 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 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.

US stocks have set new records this year while Australia’s benchmark S&P/ASX 200 Index (ASX: XJO) has barely risen.

The S&P 500 Index (SP: INX) is up 9% in the calendar year to date (YTD) and hit a record 7,620.9 points on 2 June.

The Nasdaq Composite Index (NASDAQ: .IXIC) reached a new peak of 27,190.21 points on 1 June, and is up 13% YTD.

The Dow Jones Industrial Average (DJX: .DJI) touched a new high of 52,281.19 points on 17 June, and has lifted 8% YTD.

Meanwhile, at the time of writing, ASX 200 shares have risen by less than 1% in 2026.

Here’s why.

US stocks are smashing ASX shares in 2026

Drew Meredith, a principal advisor at Wattle Partners, says the performance gap can be attributed to artificial intelligence (AI).

In an article on The Golden Times, Meredith explained:

The United States market is being driven by a small number of companies with outsized earnings power, almost all tied to artificial intelligence infrastructure.

Nvidia, Microsoft, Alphabet, Meta, and Amazon have delivered earnings growth that justifies, at least in part, the premium valuations US indices now carry.

Meanwhile, ASX shares are being held back by several elements that have little to do with the quality of our listed companies.

Meredith says:

The Federal Budget’s CGT reform package has weighed on sentiment in financial stocks, property, and healthcare.

The US-Iran conflict has created energy price uncertainty that hurts an economy reliant on stable commodity exports.

The Australian consumer sector is also weak, with confidence falling to one of its poorest levels in 50 years last month.

On top of that, the ASX does not have many companies exposed to the AI earnings cycle in the same way that the US markets do.

Our tech sector is pretty small. In fact, tech shares comprise just 2.1% of the ASX 200.

Should you buy US stocks?

Meredith warns against chasing performance, commenting:

If you are sitting with a predominantly Australian portfolio watching the gap widen, you are probably feeling a pull to do something.

That pull is understandable. It is also the thing most likely to cost you money.

Meredith explains a phenomenon called “recency bias”.

When one market dramatically outperforms another for two or three years, investors feel they were wrong to be diversified. That feeling is not evidence. It is recency bias.

The periods of sharpest US outperformance relative to global peers have consistently been followed by periods of mean reversion.

This happened after the dot-com peak in 2000. It happened in the early years after the GFC when US banks were recovering and Australian miners were printing money.

It does not happen on a schedule you can predict, which is precisely why systematic diversification matters more than tactical shifts.

‘Mean’ is a statistical term for ‘average’. Mean reversion is the idea that share prices don’t stay unusually high or low forever. They tend to move back toward their historical average over time.

How switching from ASX shares to US stocks will cost you

One of the biggest reasons not to switch from underperforming ASX shares into outperforming US stocks today is the tax implications.

Meredith, a retirement wealth specialist, explains it this way:

For many retirees who built their Australian equity positions over decades, switching from Australian to global exposure carries a meaningful capital gains tax cost.

Selling a long-held parcel of BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), or CSL Ltd (ASX: CSL) to buy more Vanguard MSCI Index International Shares ETF (ASX: VGS), Global X Fang+ ETF (ASX: FANG), or iShares S&P 500 AUD ETF (ASX: IVV) is not a free transaction.

If those shares have large embedded gains and you are selling them in a year where the CGT discount is already under political threat, the timing adds an additional layer of risk.

What should you do?

Meredith said investors shouldn’t sell ASX shares while they’re soft today to buy US stocks at a cyclical high.

You may end up paying a big CGT bill for what will become a diminishing performance gap as US stocks undergo mean reversion.

The most prudent step is to check how your portfolio’s composition has changed this year.

Meredith advises:

Check your allocation. Not your recent returns, your allocation.

If your target was 40 per cent Australian equities, 25 per cent global equities, 20 per cent fixed income, and 15 per cent cash two years ago, what is it now?

If market movements have drifted you significantly off target, a disciplined rebalance to target is reasonable. That is not performance chasing. It is maintenance.

If you have cash to invest and want more global exposure, a regular contribution into the plethora of global ETFs could be an option.

The post Why US stocks have hit record highs while ASX shares have barely risen in 2026 appeared first on The Motley Fool Australia.

More reading

• How to invest $500, $5,000, and $50,000 on the ASX
• Want a pay rise? These ASX dividend shares keep delivering
• 3 strong ASX ETFs for beginner investors
• How much passive income can I make from ASX shares?
• The retirement ETF portfolio I’d add to super

Motley Fool contributor Bronwyn Allen has positions in BHP Group and Vanguard Msci Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, CSL, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, BHP Group, CSL, Meta Platforms, Microsoft, Nvidia, Vanguard Msci Index International Shares 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.

If you are searching for some new investment options, then it could pay to listen to what the team at Morgans is saying about the three in this article.

Does it rate them as buys, holds, or sells? Let’s find out:

Beach Energy Ltd (ASX: BPT)

Morgans hasn’t been impressed with this energy producer’s operational performance. And, unfortunately, it believes the trend will continue and suspects that it could fall short of guidance in FY 2027.

As a result, it recently downgraded Beach Energy shares to a sell rating with a reduced price target of 81 cents. This compares to its current share price of 85 cents. It said:

We mark-to-market our second half estimates for weaker spot gas prices, while also trimming our Waitsia output forecasts for FY26-28 on continuing struggles. After downgrading our Q4 estimates for daily production rates, we see potential for BPT to fall just short of its FY27 group production guidance.

While BPT’s share price has already been under pressure, its earnings outlook has declined at a faster rate, with its forward EV/EBITDA actually rising. We downgrade our recommendation to Sell (from Hold) with a revised target price of A$0.81 (was A$1.10).

Flight Centre Travel Group Ltd (ASX: FLT)

While this travel agent recently downgraded its earnings guidance, Morgans has been far more forgiving.

It appears to believe that the worst is now behind the company and that a sharp rebound in earnings and its valuation could be on the cards soon.

This has seen Morgans put a buy rating and $14.80 price target on its shares. This is meaningfully higher than the current Flight Centre share price of $11.99. It commented:

Given recent downgrades from other travel industry peers due to the conflict in the Middle East, FLT’s downgrade wasn’t a surprise. Given its balance sheet strength and depressed share price, a new up to A$200m share buyback was announced. We have made only minor changes to our forecasts given FLT’s guidance was broadly in line with our previous forecast.

While a peace agreement and eased travel restrictions are positive, we think 1H27 will still be challenging. We forecast a strong recovery in 2H27. If it wasn’t for this conflict, FLT would have had a great year given its results for the first nine months were strong. We are buyers of FLT because when operating conditions ultimately improve, both its earnings and share price will be materially higher.

Judo Capital Holdings Ltd (ASX: JDO)

Another ASX share the broker is sticking with after an earnings guidance downgrade is small business lender Judo Capital.

It thinks the selling has been overdone and has retained its buy rating with a reduced price target of $1.47. This compares to the current Judo Capital share price of 88 cents. It said:

JDO downgraded its FY26 PBT guidance by c.8% at the mid-point. Even more disappointing was first-time FY27 PBT guidance which was c.16% below expectations at the mid-point. The share price drawdown was vicious (particularly considering the decline that had already occurred since February).

While the earnings growth outlook has moderated, we still forecast c.30% EPS growth across both FY26 and FY27 with the stock now trading on a c.6.8x PER (FY27F) and 0.6x P:BV (end-FY26). A significant risk premium or probability of failure has been priced into the stock. BUY.

The post Buy, hold, sell: Beach Energy, Flight Centre, and Judo Capital shares appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy right now
• 6 ASX shares with upgraded ratings from experts this week
• Why Beach Energy, Ioneer, Solstice Minerals, and Transurban shares are pushing higher today
• Why 4DMedical, Centuria Capital, Judo Capital, and Worley shares are dropping today
• Why DroneShield, WiseTech and Judo shares are leading the ASX 200 lower this week

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

The amount of money you have to invest can change the best way to approach the ASX.

A $500 investment needs simplicity. A $5,000 investment gives more room for choice. A $50,000 investment allows investors to think more carefully about diversification, income, growth, and risk.

Here is how investors could think about putting each amount to work.

How to invest $500 in ASX shares

With $500, the most important thing is getting started sensibly.

A smaller investment does not leave much room to build a portfolio of individual shares. Brokerage costs can also impact you more when the investment amount is modest.

That is why an ASX exchange traded fund (ETF) could be a useful starting point.

A fund such as the iShares S&P 500 ETF (ASX: IVV) gives investors exposure to 500 of the largest listed companies in the United States through one trade.

That includes businesses across technology, healthcare, financial services, consumer goods, communication services, and industrials.

This can be a simple way to gain instant diversification and global exposure. It also removes the pressure of trying to choose the perfect first share.

The first $500 may not transform a portfolio overnight, but it can create momentum. Once the first investment is made, investors can add more over time and allow compounding to do more of the work.

How to invest $5,000

With $5,000, investors have more flexibility.

One option would be to split the money between a broad ETF and one or two high-quality ASX shares.

For example, an investor could use part of the money for the IVV ETF or the Vanguard MSCI Index International Shares ETF (ASX: VGS), then put the remainder into a quality ASX blue chip.

Wesfarmers Ltd (ASX: WES) could be one option. The company owns Bunnings, Kmart, Officeworks, and industrial businesses, giving investors exposure to a collection of strong brands and cash-generating assets.

Another possibility is Goodman Group (ASX: GMG), which has exposure to logistics property, industrial assets, and data centres across key global markets.

The advantage of this approach is balance. The ETF provides diversification, while the individual shares allow investors to start building positions in companies they believe can compound over time.

At this level, investors should still avoid spreading the money too thinly. Owning too many small positions can make the portfolio harder to follow and may reduce the impact of the best ideas.

How to invest $50,000

A $50,000 investment opens up more choices. At this size, investors can build a more complete ASX portfolio with a mix of ETFs, growth shares, dividend shares, and defensive holdings.

A possible structure could include a core allocation to broad ETFs such as the IVV, VGS, or the Vanguard Australian Shares Index ETF (ASX: VAS). These funds can provide exposure to large baskets of local and international companies.

From there, investors could add selected ASX shares.

For growth, companies such as Xero Ltd (ASX: XRO), Pro Medicus Ltd (ASX: PME), and Goodman could be worth considering. These businesses give exposure to cloud software, medical imaging technology, and global property infrastructure.

For income, investors may look at shares such as Transurban Group (ASX: TCL), APA Group (ASX: APA), or Rural Funds Group (ASX: RFF). These offer exposure to toll roads, energy infrastructure, and agricultural property assets.

With $50,000, risk management becomes more important. Investors can spread money across different sectors, avoid relying too heavily on one company, and keep some cash available for future opportunities.

Build the habit

The best approach will depend on an investor’s goals, time horizon, risk tolerance, and need for income.

But the broad idea is quite simple. Start with diversification when the investment amount is small, add quality shares as the portfolio grows, and build a stronger mix of growth, income, and defensive exposure once the capital base becomes larger.

The post How to invest $500, $5,000, and $50,000 on the ASX appeared first on The Motley Fool Australia.

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• The retirement ETF portfolio I’d add to super

Motley Fool contributor James Mickleboro has positions in Goodman Group, Pro Medicus, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Transurban Group, Wesfarmers, Xero, and iShares S&P 500 ETF. 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 Apa Group, Rural Funds Group, Transurban Group, and Xero. The Motley Fool Australia has recommended Goodman Group, Pro Medicus, Vanguard Msci Index International Shares ETF, Wesfarmers, 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.

Many companies pay dividends. Far fewer ASX dividend shares manage to increase them year after year, through economic booms, recessions, market crashes, and everything in between.

That’s what makes these three ASX dividend shares stand out. Each has built a reputation for rewarding shareholders with growing income streams over long periods of time. For income-focused investors, they could be worth a closer look.

APA Group (ASX: APA)

APA Group owns and operates critical energy infrastructure across Australia, including gas pipelines, electricity transmission assets, and renewable energy connections.

Its biggest strength is the essential nature of its assets. Much of APA’s revenue comes from long-term contracts, providing relatively stable cash flows regardless of economic conditions. That predictability has helped support one of the most impressive distribution growth records on the ASX.

The ASX dividend share has increased its annual distribution every year since 2004, delivering more than two decades of uninterrupted growth for investors.

The company has lifted its FY26 annual distribution to 58 cents per security. Based on the current share price, that equates to a distribution yield of around 5.6%.

There are risks to consider. APA carries significant debt and remains exposed to regulatory changes and the long-term transition away from fossil fuels. However, its growing exposure to electricity and renewable energy infrastructure could help offset some of those challenges.

Bell Potter expects APA to pay a distribution of 59 cents per security in FY27. Based on the current share price of $10.36, that would represent a forward yield of approximately 5.7%.

Argo Investments (ASX: ARG)

Argo Investments is one of Australia’s oldest listed investment companies.

Rather than operating a business directly, this ASX dividend share owns a diversified portfolio of high-quality ASX shares. Some of its largest holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Rio Tinto Ltd (ASX: RIO).

Its strength lies in that diversification. Investors gain exposure to dozens of leading Australian companies through a single investment, helping reduce company-specific risk.

Argo has paid dividends every year since its inception in 1946. Even more impressively, those dividends have been fully franked since 1995.

While payouts do not rise every single year, the long-term trend remains strongly positive. Since 2010, shareholders have enjoyed dividend increases in most financial years.

The company recently announced an 8.8% increase in its interim dividend to 18.5 cents per share.

Combined with its previous dividend, Argo’s latest two payouts total 38.5 cents per share. At current prices, that translates to a grossed-up dividend yield of approximately 4.3%, including franking credits.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Washington H. Soul Pattinson has become something of a dividend-growth machine.

The investment company has increased its annual dividend every year since 1998, putting it on the verge of three decades of consecutive dividend growth.

A key reason for that success is diversification. Soul Patts owns investments across energy, resources, telecommunications, industrial property, building products, agriculture, financial services, electrification, swimming schools, and more.

That broad portfolio helps the ASX dividend share generate cash flow from multiple sources and reduces reliance on any single sector.

Importantly, management doesn’t distribute all available cash to shareholders. It retains capital and reinvests it into new opportunities, helping grow future earnings and dividends.

This combination of diversification, disciplined capital allocation, and long-term investment growth has enabled Soul Patts to steadily increase shareholder payouts across a wide range of market environments.

Its two most recent dividends currently equate to a grossed-up dividend yield of approximately 3.5%, including franking credits. For investors seeking a growing income stream, that consistency may be just as valuable as the yield itself.

The post Want a pay rise? These ASX dividend shares keep delivering appeared first on The Motley Fool Australia.

More reading

• Why US stocks have hit record highs while ASX shares have barely risen in 2026
• How to invest $500, $5,000, and $50,000 on the ASX
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• 3 ASX dividend favourites are hitting 52-week highs today. Are investors getting defensive?
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Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Apa Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I think a good beginner exchange traded fund (ETF) should be easy to understand, diversified enough to reduce single-company risk, and connected to a long-term idea that still makes sense years from now.

But which ones could tick these boxes?

Here are three ASX ETFs that could be strong options for beginner investors.

iShares S&P 500 AUD ETF (ASX: IVV)

The first ASX ETF to look at is the iShares S&P 500 ETF.

For beginners, the value of this fund is that it gives instant exposure to the engine room of the US share market.

That means investors are not trying to guess which single American company will dominate the next decade. They are buying a portfolio that includes many of the companies already sitting at the centre of global business, technology, healthcare, finance, and consumer spending.

Holdings include NVIDIA (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT).

These companies are not just names on a screen. They help power artificial intelligence, smartphones, cloud computing, software, app ecosystems, and enterprise technology used across the world.

This can make it a simple way to make the first investment broad, familiar, and globally relevant.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

Another ASX ETF that could suit beginners is the Betashares Asia Technology Tigers ETF.

This fund gives investors exposure to Asia’s technology sector, which plays a very different role from Silicon Valley.

Asia is central to the hardware, manufacturing, memory chips, semiconductors, ecommerce, gaming, and digital platform economy. In many ways, it is where much of the digital world is built, supplied, and used at enormous scale.

Examples of holdings include SK Hynix (KRX: 000660), Samsung Electronics (KRX: 005930), and Taiwan Semiconductor Manufacturing Co (NYSE: TSM).

This makes the ETF useful for investors who want technology exposure that extends beyond the usual US mega-cap names. It can also provide access to companies that are deeply connected to the future of computing and digital consumption.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

A third ASX ETF to consider is the Betashares Global Cash Flow Kings ETF.

This fund is a useful reminder that investing is not just about exciting stories. It is also about businesses that turn sales into cash.

The fund focuses on global companies with strong free cash flow characteristics. That can be valuable because cash gives companies choices. It can fund growth, strengthen balance sheets, support buybacks, pay dividends, and help businesses manage tougher periods.

Holdings include NVIDIA, Visa (NYSE: V), and Costco (NASDAQ: COST).

That gives investors exposure to a mix of technology, payments, and consumer staples, but with a cash generation filter sitting behind the portfolio.

The post 3 strong ASX ETFs for beginner investors appeared first on The Motley Fool Australia.

More reading

• How to build a winning ASX portfolio with just 3 investments
• Where to invest $500 on the ASX right now
• 3 amazing tech ETFs to buy and hold forever
• The ASX investing strategy that could quietly make you rich
• How I’d invest $250 a week in ASX shares to aim for $700,000

Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Costco Wholesale, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, Visa, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, Visa, 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.