• If I invest $20,000 in CBA shares, how much passive income will I receive in 2027?

    A man in a suit smiles at the yellow piggy bank he holds in his hand.

    Commonwealth Bank of Australia (ASX: CBA) shares usually provide shareholders with a solid dividend yield. This decade, it has regularly hiked the passive income payout following the COVID-19 pandemic.

    Investors may be looking at the CBA share price as a potential opportunity. At the time of writing, it’s down around 16% in the past six months. Lower prices typically mean a better valuation.

    Part of the consideration when thinking about an investment for dividends should be the profitability and operational performance.

    The ASX bank share‘s latest report contained solid numbers. Cash net profit grew 7% to $11 billion.

    Looking at some of the core drivers of its profit over 12 months, retail transaction accounts grew by 6% to 12.3 million, the home lending balance rose by 7% to $636 billion, business transaction accounts grew 7% to 1.4 million and business lending rose 13% to $180 billion.

    However, credit demand has diminished in the last few months following interest rate rises and taxation changes to capital gains and negative gearing.

    With all of the above in mind, let’s take a look at what dividends owning CBA shares could generate in 2027.

    Commonwealth Bank passive dividend income projection for 2027

    We’re already a few months into CBA’s 2027 financial year, so it won’t be too long until we hear about the half-year numbers.

    In terms of the potential passive income, analysts are expecting an improvement of the ASX bank share’s bottom line in FY27. This could help the business deliver a bigger dividend.

    Based on the estimate on CMC Invest, Commonwealth Bank is projected to pay an annual dividend per share of $5.20 in FY27. That would represent a year-over-year increase of 3%.

    At the time of writing, that forecast payout translates into a dividend yield of 3.4% excluding franking credits and 4.8% including franking credits.

    Is this a good time to invest in CBA shares?

    According to CMC Invest, there have been eight analyst ratings in the last three months. All of those ratings from experts were a sell. So, there’s a universal view from investment professionals that the Commonwealth Bank share price is overvalued.

    How overvalued do those analysts think the ASX bank share is?

    A price target tells us where analysts think the share price will go over the next 12 months.

    The average price target of those eight analysts is currently $123.08. Therefore, that group of analysts are collectively suggesting the CBA share price could fall by close to 20% over the next year (at the time of writing).

    Therefore, it could be wise to look at other ASX share opportunities for returns.

    The post If I invest $20,000 in CBA shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

    Wondering where to invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See the 5 Stocks

    * Returns as of 6 March 2025

    More reading

    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.

  • Buy and hold these top ASX ETFs until 2036

    Two work colleagues looking at a laptop and discussing something.

    I believe buy and hold investing is one of the best ways to build wealth over the long term.

    By investing in quality businesses and giving them time to grow, investors can benefit from compounding returns without needing to constantly buy and sell shares.

    And I think ASX exchange traded funds (ETFs) can be particularly useful for this approach, providing exposure to a collection of companies through a single investment.

    With that in mind, here are three ASX ETFs to consider buying and holding until 2036.

    Betashares Global Cash Flow Kings ETF (ASX: CFLO)

    The first ETF to look at is the Betashares Global Cash Flow Kings ETF.

    When investing for the long term, it makes sense to favour businesses that consistently generate strong cash flows.

    After all, profits are important, but having cash available allows companies to invest in growth, reduce debt, make acquisitions, and reward shareholders.

    And companies that generate plenty of cash can be better placed to navigate difficult economic conditions.

    This is essentially what the Betashares Global Cash Flow Kings ETF is looking for. It invests in 200 global companies with strong free cash flow generation, while also considering factors such as debt levels and cash flow growth.

    I think this approach could be well suited to investors wanting to own financially strong businesses over the next decade.

    Vanguard FTSE Asia ex Japan Shares Index ETF (ASX: VAE)

    Another ASX ETF that could be worth buying and holding until 2036 is the Vanguard FTSE Asia ex Japan Shares Index ETF.

    I think Asia could offer some excellent long-term opportunities as its economies develop and businesses become increasingly important on the global stage.

    The region is already home to major technology companies, manufacturers, financial institutions, and consumer businesses. And over the next decade, I expect rising wealth, technological development, and growing demand for products and services to create further opportunities.

    This fund gives investors exposure to companies across markets including China, Taiwan, South Korea, and India. This means that rather than trying to predict which country or company will perform best, investors can gain exposure to a wide selection of Asian businesses.

    For investors wanting to look beyond Australia and the United States, this could be an attractive option.

    Global X Artificial Intelligence ETF (ASX: GXAI)

    A final ASX ETF to consider is the Global X Artificial Intelligence ETF.

    Artificial intelligence has already made enormous progress, but I think we are still relatively early in seeing how widely the technology will be adopted.

    Businesses are increasingly looking at ways to use AI to improve productivity, reduce costs, and develop new products. And as the technology becomes more capable, there could be opportunities for companies across many industries to benefit.

    The Global X Artificial Intelligence ETF provides exposure to businesses involved in developing AI technology, supplying the hardware needed to run it, and incorporating it into products and services.

    Of course, there will be plenty of competition, and not every AI investment will deliver the returns investors expect.

    But with a decade-long runway, this ETF could offer exciting long-term growth potential.

    The post Buy and hold these top ASX ETFs until 2036 appeared first on The Motley Fool Australia.

    Wondering where to invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See the 5 Stocks

    * Returns as of 6 March 2025

    More reading

    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 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.

  • Top brokers name 3 ASX shares to buy next week

    Couple using their digital tablet together.

    It was another busy week for Australia’s top brokers, with a number of new research 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 could be worth buying:

    Megaport Ltd (ASX: MP1)

    According to a note out of Bell Potter, its analysts have retained their buy rating on this cloud infrastructure company’s shares with a slightly reduced price target of $26.00. While the broker has lowered its valuation to reflect weaker share prices across the sector, it has actually increased its earnings forecasts. Bell Potter believes it previously underestimated the contribution from Megaport’s expanding AI infrastructure business, particularly the computing power it is supplying to customers. It now expects underlying EBITDA of approximately $770 million in FY 2028, up from its previous forecast of $726 million. The broker also highlights Megaport’s strong growth prospects, fully funded expansion plans, and attractive valuation. It estimates that the shares are trading at just six times forecast FY 2028 EBITDA. The Megaport share price ended the week at $16.50.

    Paladin Energy Ltd (ASX: PDN)

    A note out of Morgans reveals that its analysts have upgraded this uranium producer’s shares to a buy rating with a slightly reduced price target of $13.10. This follows Paladin’s first-quarter update, which revealed uranium production of 1 million pounds at its Langer Heinrich mine. While this was below market expectations, Morgans notes that a slow start to FY 2027 was anticipated due to a planned plant shutdown and lower recovery rates. Importantly, mining performance improved during the quarter, while the average selling price of uranium increased 12% to a record US$79.40 per pound. With Paladin shares falling recently, Morgans believes the risk-reward balance has become more favourable for investors. The Paladin Energy share price was fetching $7.32 at Friday’s close.

    PLS Group Ltd (ASX: PLS)

    Another note out of Bell Potter reveals that its analysts have upgraded this lithium producer’s shares to a buy rating with a trimmed price target of $4.40. According to the note, the broker has lowered its near-term lithium price forecasts due to weaker market conditions and concerns about a potential supply surplus in 2027. However, Bell Potter still sees plenty of reasons to be positive about PLS Group’s outlook. It believes the company can generate substantial earnings and cash flow at current lithium prices, particularly with the restart of its Ngungaju processing plant. The broker also highlights potential production growth from future developments, supported by long-term demand for electric vehicles and battery energy storage systems. With the recent decline in its share price, Bell Potter believes investors are being offered an opportunity to gain exposure to this growth at an attractive price. The PLS Group share price ended the week at $2.98.

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

    Wondering where to invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See the 5 Stocks

    * Returns as of 6 March 2025

    More reading

    Motley Fool contributor James Mickleboro has positions in Megaport. 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.