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

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

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

Potential passive income

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

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

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

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

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

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

Large asset discount with the ASX dividend stock

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

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

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

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

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

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• 2 ASX real estate funds that could return 23% to 35%

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

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

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

Centuria Industrial REIT (ASX: CIP)

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

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

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

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

Coles Group Ltd (ASX: COL)

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

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

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

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

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

WCM Quality Global Growth Fund (ASX: WCMQ)

The final investment I want to highlight is this ETF.

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

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

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

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

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

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

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• How much is needed in superannuation to target a $100,000 annual passive income?
• Wesfarmers vs Coles: Which dividend share is better for retirees?
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• How much do I need to retire on $85,000 a year at 50?

Motley Fool contributor Tristan Harrison has positions in Wcm Quality Global Growth Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woolworths vs JB Hi-Fi : Which should you pick in today’s economic environment?

With plenty of uncertainty in Australia’s economic outlook, many investors are weighing up defensive consumer staples like Woolworths Group Ltd (ASX: WOW) against more cyclical consumer discretionary options like JB Hi-Fi Ltd (ASX: JBH). If you’re wondering where your next investment dollar is better placed—staples or discretionary—let’s dive into the numbers, business strengths, and recent performance data to help you decide between Woolworths shares and JB Hi-Fi shares.

The case for Woolworths Group

Woolworths is one of Australia’s retail heavyweights, mainly known for its vast network of supermarkets across Australia and New Zealand. It also owns Big W, giving it a strong presence in both everyday groceries and discount department stores. While Woolworths previously had significant interests in liquor and hospitality, it split these off in 2021 to form Endeavour Group.

Woolworths’ main drawcard is its defensive profile. No matter how the economy is tracking, people still need to buy food and essentials, making Woolworths a classic ‘consumer staples’ play. Its massive market capitalisation of $46.69 billion reflects the size and reach of the group. With a current P/E ratio of 41.21, it’s trading at a premium—likely a nod to its stability in uncertain times. The stock offers a fully franked dividend yield of 2.54%, and dividends have been consistent over the years, as shown by its steady payout history. Woolworths’ shares have returned an impressive 33.1% so far this year.

The case for JB Hi-Fi

JB Hi-Fi sits firmly in the consumer discretionary camp, focusing on electronics, appliances, and home entertainment through its JB Hi-Fi, The Good Guys, and e&s stores. While the business has shown the ability to ride waves of demand for gadgets and household gear, its sales are more sensitive to consumer confidence and economic cycles compared to the staples sector.

JB Hi-Fi has a market capitalisation of $7.69 billion—much smaller than Woolworths, but still a major player on the ASX. Its most striking feature is value: a P/E ratio of just 15.74, noticeably lower than Woolworths’, and a hefty 4.79% fully franked dividend yield. Its earnings per share stands at 4.467—substantially above Woolworths’ 0.925 EPS figure. JB Hi-Fi’s dividend payments have also grown over recent years, reflecting its cash-generative business. However, the share price has fallen 23.5% year to date, a reminder of the higher risk and volatility faced by discretionary retailers when economic conditions sour.

Valuation comparison

Here’s how the core valuation numbers stack up for both companies:

Metric	Woolworths Group	JB Hi-Fi
Market Cap	$46.69 billion	$7.69 billion
P/E Ratio	41.21	15.74
Dividend Yield	2.54% (fully franked)	4.79% (fully franked)
Earnings per Share (EPS)	0.925	4.467
Dividend per Share	0.97	3.37
Year to Date Return	33.05%	-23.45%
Franking	100%	100%

Note: Woolworths Group Ltd’s reported P/E and EPS figures may be based on different earnings measures, which can cause apparent mismatches between the calculated and reported ratios.

Woolworths’ much higher P/E ratio indicates investors are paying up for perceived safety and stability, while JB Hi-Fi trades on a lower earnings multiple but offers a higher dividend yield and much stronger earnings per share.

Recent share price momentum

Comparing recent share price performance up to 7 October 2026:

• Woolworths Group closed at $38.22, with a modest 0.26% gain on the day. Its shares have shown positive momentum year to date, up 33.1%.
• JB Hi-Fi closed at $70.36, rising just 0.10% for the day, but with a sharp -23.5% return year to date—reflecting tough consumer conditions.

Which is the better buy?

If I had to pick between Woolworths and JB Hi-Fi in today’s economic climate, my choice would be Woolworths. Here’s why: defensive consumer staples like groceries and everyday essentials tend to hold up better when interest rates are high and households tighten the purse strings. Woolworths’ high P/E ratio clearly shows investors are paying a premium for perceived safety, but the company’s consistent, fully franked dividends and solid price performance this year back up that defensive reputation.

On the other hand, while JB Hi-Fi offers much stronger earnings per share and a very appealing dividend yield, its hefty share price drop year to date points to real challenges in the discretionary retail space. That doesn’t mean JB Hi-Fi isn’t a good business—far from it—but in a choppy economy, I think defensive shares like Woolworths look more attractive, even at a higher valuation.

For those who crave stability and steady income, I’d lean toward Woolworths shares right now. But if the economic outlook brightens and consumer spending bounces back, JB Hi-Fi might look much more appealing given its valuation and yield.

The post Woolworths vs JB Hi-Fi: Which ASX shares to buy now? appeared first on The Motley Fool Australia.

More reading

• Super Retail Group vs JB Hi-Fi: Which retail stock is better for beginners?
• Woolworths Group vs Telstra Group: Which ASX blue chip pays better passive income?
• Here’s the dividend forecast out to 2029 for Woolworths shares
• 2 ASX blue-chip shares offering big dividend yields
• 3 defensive ASX shares I’d buy in a market sell-off

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.