Building lifelong passive income from the share market is not about finding the highest dividend yield today.

I think it is about building an engine that can keep producing cash for years, while also having the strength to grow over time.

That means investors need to think beyond this year’s income. They also need to think about dividend sustainability, reinvestment, inflation, diversification, and the quality of the businesses behind the payments.

Start with the right goal

The first step is deciding what the income is meant to do.

Some investors may want dividend income to help cover bills in retirement. Others may want to reinvest dividends for years before eventually using them. Younger investors may simply want to build an income stream that becomes more useful over time.

The strategy can look different depending on the goal.

For someone still building wealth, I think reinvesting dividends can be powerful. Each dividend can buy more units or shares, which can then produce more dividends in the future. Over long periods, that can help the portfolio gather momentum.

For someone already living off income, the focus may shift more toward reliability, balance, and having enough cash set aside so shares do not need to be sold at a poor time.

Do not chase yield blindly

A high dividend yield can look tempting, but it can also be a warning sign.

Sometimes a yield is high because a business is strong and the market is offering a good price. Other times, it is high because investors expect the dividend to be cut.

That is why I would look at the business first and the yield second.

I would want companies with durable earnings like Wesfarmers Ltd (ASX: WES). Its businesses are exposed to everyday spending across areas such as hardware, discount department stores, office supplies, and healthcare. That does not mean profits will rise every year, but I like the group’s long record of disciplined capital allocation.

Telstra Group Ltd (ASX: TLS) is another example of the type of income share I would consider. Mobile connectivity has become essential for households and businesses, and that gives Telstra a defensive quality that can support dividends over time.

The aim is not to collect the biggest yield possible. It is to build an income stream that has a better chance of lasting.

Keep growth in the mix

Passive income can lose value if it does not grow.

A $10,000 income stream may sound useful today, but it will not buy the same amount in 20 years if inflation keeps rising. That is why I think a lifelong income portfolio should include businesses with the ability to grow earnings and dividends over time.

This may mean accepting a lower starting yield from some shares if the long-term dividend growth potential is stronger.

A company like Transurban Group (ASX: TCL) can also be useful in this kind of portfolio. Its toll roads sit on important urban routes, and distributions can be supported by assets that people keep using across different economic conditions.

I would also think about balance. A portfolio built only around banks or miners may pay strong income in good times, but dividends from cyclical businesses can move around. Adding companies with different cash flow drivers can make the income stream feel more resilient.

Build slowly and let time help

The share market rewards patience more often than urgency.

I would build a passive income portfolio gradually, adding money regularly and using market pullbacks as opportunities when quality assets become cheaper.

APA Group (ASX: APA) is the sort of infrastructure name that could appeal when income is the goal. Its energy infrastructure assets may not be exciting, but they can help provide steady cash flows.

Over time, the income stream can start to do more of the work. Dividends can be reinvested, the portfolio can grow, and the investor can become less dependent on new contributions.

Foolish takeaway

Lifelong passive income comes from building a portfolio that can survive different market conditions and keep working in the background.

I would focus on quality first, then yield, then growth. Shares such as Wesfarmers, Telstra, Transurban, and APA show the kinds of businesses I would look for: useful, established, cash-generative, and capable of supporting income over time.

Dividends are never guaranteed. But with patience, diversification, and a focus on sustainable businesses, I think investors can build a passive income stream that lasts for decades.

The post How to build passive income for life from the ASX share market appeared first on The Motley Fool Australia.

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• 7 ASX 200 shares going ex-dividend today
• 5 things to watch on the ASX 200 on Monday
• Why Telstra shares could be a top ASX buy for the new financial year
• Why Wesfarmers shares still look like a top buy to me
• Chasing early retirement at 55? These ASX shares and ETFs could help

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.

Shares in mining heavyweight BHP Group Ltd (ASX: BHP) have finally hit a speed bump. BHP shares have fallen around 10.5% from its recent record high of $65.98, and are down approximately 6.5% over the past five trading sessions.

Despite the pullback, long-term shareholders still have plenty to smile about. BHP shares remain up roughly 30% in 2026 and an impressive 64% over the past 12 months.

So, is this simply a healthy breather after a huge rally, or the beginning of something more concerning?

What do brokers think?

Judging by analyst forecasts, the market isn’t leaning strongly in either direction. According to TradingView data, most brokers are taking a wait-and-see approach.

Of the 19 analysts covering BHP shares, 13 currently rate the $300 billion mining giant as a hold. Four recommend buying the stock, while two recommend selling.

That tells a story of cautious optimism rather than outright enthusiasm. Among the latest broker moves, DZ Bank upgraded BHP from sell to hold. Its $65 price target implies around 10% upside from current levels.

What’s striking, however, is the enormous spread between broker forecasts. The most bullish analyst values BHP at $94.51 a share, suggesting upside of nearly 60%. The most bearish sits at just $40.97, implying downside of around 30%.

When professional investors disagree by that much, it usually reflects genuine uncertainty about where the business is heading.

Why are BHP shares under pressure?

The catalyst for the recent sell-off was BHP’s latest update on its giant Jansen potash project in Saskatchewan, Canada.

Following a comprehensive review, management revealed Stage 2 will cost far more than previously expected. The company now expects the project will require an additional US$4.9 billion to US$5.4 billion beyond earlier estimates. That’s on top of the original US$4.9 billion budget approved in late 2023.

BHP also expects to recognise an impairment charge of around US$2.3 billion relating to Jansen Stage 2 in its FY26 results.

The timeline has deteriorated as well. First production from Stage 2 is now targeted for FY2031, two years later than originally planned.

Little patience for bad news

Unfortunately for BHP shares, this isn’t the first time Jansen’s budget has blown out.

Each successive cost increase has chipped away at investor confidence and raised questions about management’s ability to accurately forecast one of the company’s biggest growth projects.

Stage 1 remains on track for first production in FY2027, although even that project’s cost estimate has drifted higher since it was first approved. BHP has promised another update on Stage 1 before the end of the year.

Timing also mattered

Before the announcement, BHP shares had rallied about 30% since the start of 2026, leaving the stock trading near record highs.

When expectations are elevated, markets tend to punish disappointments more severely. The sell-off likely reflects not only concerns over Jansen, but also some investors taking profits after an exceptional run.

The bigger picture, however, hasn’t changed dramatically. BHP still generates enormous cash flow from its world-class iron ore business, continues to expand its exposure to copper, and retains long-term optionality through potash.

For now, though, the market appears happy to wait for greater clarity on Jansen before pushing BHP shares decisively higher again.

The post BHP shares have lost momentum. Should investors be worried? appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. 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.

Life360 Inc. (ASX: 360) and Zip Co Ltd (ASX: ZIP) have been growing strongly for many years.

But I think the bigger opportunity is still ahead. Life360 is building a family safety and connection platform with a huge user base, while Zip is becoming a more profitable digital payments business with a particularly exciting opportunity in the United States.

Because of this, I think both ASX shares are strong buys for investors willing to accept some volatility.

Life360 shares

Life360 has become one of the more interesting consumer technology shares on the ASX.

The company’s app helps families stay connected through location sharing, driving safety features, alerts, and related services. I think that gives Life360 a useful emotional layer that many apps do not have. It is not just entertainment or convenience. For many families, the product is about reassurance.

That can be powerful if the company keeps building around that relationship.

Life360’s recent quarterly update showed how quickly the business is still growing. In the first quarter of 2026, total revenue grew 38% year over year to US$143.1 million. Monthly active users reached approximately 97.8 million, up 17% year-over-year, while total Paying Circles rose 27% to 3.0 million.

The advertising opportunity is also becoming more meaningful. Advertising revenue reached US$19.7 million in the quarter, up 329% year-over-year.

That is partly what makes Life360 exciting to me. The company has a large free user base, a growing paid subscriber base, and a developing advertising business. If it can keep improving the product without damaging user trust, there could be several ways to grow revenue over time.

There are risks. Consumer apps can be competitive, privacy is crucial, and valuation can move around quickly. But I think Life360 has the ingredients of a much larger business.

Zip shares

Zip is another ASX growth share I think is worth buying.

The buy-now-pay-later company has been through a major reset in recent years, and I think that makes the investment opportunity more attractive. It is not just chasing growth. It is showing better profitability, tighter execution, and momentum in the right markets.

The US business is what I value most. Zip recently said its US operations had 4.6 million active customers and annual transaction volume of around A$12 billion as at 31 March 2026. The company also pointed to a high-growth US business executing strongly in what it sees as an attractive early-stage market.

That is a big opportunity if Zip can keep underwriting customers profitably. The company says it serves Americans who are often overlooked by traditional financial services providers. I think that is an important point. Many customers still want flexible, transparent payment options, particularly when managing everyday expenses.

Zip’s update also showed group momentum. For the third quarter of FY26, total transaction volume rose 22.4% year over year, total income increased 20.2%, and cash EBTDA jumped 41.5%.

That combination of growth and improving profitability is what I want to see.

Foolish takeaway

Life360 and Zip are not low-risk blue-chip ASX shares, but I think both have attractive long-term upside.

Life360 is building a large consumer platform around family safety and connection, with subscriptions and advertising both contributing to growth. Zip is showing that a digital payments business can grow while becoming more profitable, with the US market offering a large runway.

Both companies still need to execute well. But based on their recent momentum, I think Life360 and Zip shares are strong buys today.

The post Why I think Life360 and Zip shares are strong buys appeared first on The Motley Fool Australia.

More reading

• Why this analyst rates Life360 shares a buy right now
• Why I’d buy CSL and Zip shares before they recover
• 5 ASX growth shares I want in my portfolio in FY27
• 3 reasons to buy the dip on Life360 shares today
• If I’d invested $7,000 in Zip shares 3 months ago, guess what I’d have 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 Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.