National Australia Bank Ltd (ASX: NAB) has long been popular with income investors, much like the rest of the big four banks.

The combination of large profits and fully franked dividends has made the banking sector an obvious place to look for passive income.

So, with NAB shares well below their recent highs, is it one of the best ASX dividend shares to buy?

Why I like NAB for income

One reason I like NAB shares is the company’s strong position in business banking.

The bank has significant exposure to small and medium-sized businesses across Australia, giving it a slightly different earnings mix from some of its major rivals.

I think that is attractive over the long term. As Australian businesses grow, borrow, invest, and manage their finances, NAB has an opportunity to grow alongside them.

Of course, banking earnings can still be affected by interest rates, competition, bad debts, and economic conditions.

But NAB remains a highly profitable business, and that gives it the capacity to return a meaningful amount of cash to shareholders.

For an income investor, that is ultimately what I want to see.

What could the dividend look like?

The current dividend forecasts look good to me.

Consensus estimates point to fully franked dividends of $1.70 per share in FY26 and $1.72 per share in FY27.

With NAB shares trading around $38.47 on Wednesday, those forecasts translate into prospective dividend yields of approximately 4.4% and 4.5%, respectively.

Eligible Australian investors may also benefit from the attached franking credits.

Is the NAB share price attractive?

NAB shares are trading well below their 52-week high of $49.45 and are now closer to their 52-week low of $35.48.

Consensus forecasts suggest earnings per share of $2.38 in FY26, rising to $2.54 in FY27.

At today’s price, that puts NAB on a PE ratio of roughly 16 times forecast FY26 earnings and 15 times FY27 earnings.

I think that looks reasonable for a profitable major bank that is expected to grow earnings while continuing to pay substantial dividends.

The lower share price also means investors buying today are getting a better prospective yield than they would have received near the 52-week high.

What would I watch?

Competition remains one of the main risks.

Australian banks compete aggressively for both loans and deposits, which can put pressure on margins.

A weaker economy could also lead to higher bad debts, particularly if households and businesses come under more financial pressure.

Those are risks I would keep an eye on, but they do not change my overall view at the current price.

Foolish takeaway

I still think NAB is one of the better ASX dividend shares to buy.

At around $38.47, the valuation looks reasonable to me, while forecast fully franked dividends offer a dividend yield of roughly 4.4% to 4.5%.

For investors looking for income from the banking sector, NAB would remain high on my list.

The post Is NAB one of the best ASX dividend shares to buy? appeared first on The Motley Fool Australia.

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• If I invest $5,000 in NAB shares, what passive income will I receive in FY27?
• Which big 4 bank stock will rise the most before the end of 2026?
• Sell alert! Why this expert is calling time on Tabcorp and NAB shares
• Buy, hold, sell: Coles, NAB, CSL shares

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.

Exchange-traded funds (ETFs) can be a simple way to start investing without having to choose individual shares.

Betashares has plenty of funds available on the ASX, but I think these three are among the best to consider for beginners.

Here is why.

Betashares Diversified All Growth ETF (ASX: DHHF)

The DHHF ETF would be one of my first choices for someone who wants to keep things simple.

Rather than focusing on one country or sector, the fund invests across Australian and international shares.

That means a single investment can provide exposure to thousands of growth companies around the world.

I think this can be helpful for beginners because diversification is built into the fund. An investor does not need to decide how much money to put into Australian shares, US shares, or emerging markets and then continually rebalance everything themselves.

For someone investing with a long timeframe, I think the Betashares Diversified All Growth ETF offers a straightforward way to own a broad collection of businesses and benefit if global share markets grow over time.

Betashares Australia 200 ETF (ASX: A200)

The A200 ETF is another fund I think beginners could consider.

It tracks 200 of the largest stocks listed on the ASX, providing exposure to a large part of the Australian share market through a single investment.

That includes businesses operating across areas such as banking, resources, healthcare, telecommunications, retail, and technology.

I like how simple this makes investing, which is good for beginners. Instead of trying to decide which Australian shares will perform best, investors can own a broad selection and participate in the overall performance of the local market.

There is also an income angle. Many large Australian shares pay dividends, which means the fund can provide distributions alongside potential capital growth.

Betashares Global Quality Leaders ETF (ASX: QLTY)

For investors wanting more international exposure, I think the QLTY ETF is worth a look.

Rather than simply buying the world’s largest stocks, the fund looks for businesses displaying characteristics such as strong profitability, relatively stable earnings, and healthy balance sheets.

I like that approach because it focuses on companies that have already demonstrated financial strength.

The portfolio also gives Australian investors access to businesses and industries that are not well represented on the ASX. That can provide another source of long-term growth while reducing reliance on the Australian market.

For a beginner looking internationally, I think the Betashares Global Quality Leaders ETF provides an easy way to invest in a collection of established global businesses.

Foolish takeaway

I think all three of these Betashares ETFs make investing relatively easy.

The DHHF ETF provides broad diversification in one fund, the A200 ETF offers exposure to the Australian share market, and the QLTY ETF focuses on financially strong global businesses.

Overall, for a beginner, I think the most important thing is choosing an investment that makes sense to them and that they would be comfortable holding through the inevitable ups and downs of the share market.

The post 3 top Betashares ETFs for beginners to buy appeared first on The Motley Fool Australia.

More reading

• Where to invest $20,000 in ASX ETFs today
• ASX ETF market just surpassed $7 billion in net inflows – Here’s where the money is going
• 2 top ASX shares to buy and hold for the next decade
• Vanguard ETFs vs. Betashares ETFs: Who’s coming out on top?
• Are these 3 top Betashares ETFs a buy in September?

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.

Fortescue vs Commonwealth Bank shares: Which is better for passive income?

If you’re hunting for passive income from ASX blue chips, Fortescue Ltd (ASX: FMG) and Commonwealth Bank of Australia (ASX: CBA) are both giants, yet offer quite different flavours of dividend investing. Let’s stack them up side-by-side to see which could make the better addition to a passive income-focused portfolio.

The case for Fortescue

Fortescue is one of the world’s largest iron ore miners, operating huge integrated sites across Western Australia’s Pilbara region. With a vast mining, rail, and port footprint, it’s a heavy-duty exporter to Asian steel mills. As of its recent company profile, Fortescue sits among the ASX’s top companies, having grown rapidly by tapping into surging global iron ore demand.

The key passive income drawcard? Fortescue’s outstandingly high, fully franked dividend yield — a juicy 6.46%. Fortescue has also consistently franked its dividends at 100%. Over recent years, it’s paid out generous half-yearly dividends, rewarding shareholders in good times.

However, iron ore mining is a cyclical game. The company’s YTD return sits at -19.1%, reflecting both volatility in iron prices and perhaps broader market caution toward commodity exposures.

Notable stats:

• Market cap: $51.48 billion
• P/E ratio: 12.74
• Dividend per share: $1.08 (latest full-year)
• Dividend yield: 6.46% (fully franked)

The case for Commonwealth Bank of Australia

Commonwealth Bank is Australia’s largest bank by market cap – a household name, and a top dividend payer for many years. Its sprawling operation covers retail, business and institutional banking, wealth, insurance and more – both here and overseas. As of its most recent public description, it’s regarded as a pillar of banking stability in Australia, with a reputation for conservative management and wide reach.

For passive income investors, CBA offers a much lower headline dividend yield than Fortescue – at 3.31%. But every dividend since at least 2003 has been fully franked, and CBA has a long track record of payout reliability and gradual growth, having increased its annual dividend steadily over the years.

CBA’s share price is also known for its relative stability compared to most mining stocks.

Key numbers:

• Market cap: $256.02 billion
• P/E ratio: 23.39
• Dividend per share: $5.05 (latest full-year)
• Dividend yield: 3.31% (fully franked)

Valuation comparison

Let’s compare the main passive income and valuation metrics side-by-side:

	Fortescue Ltd	Commonwealth Bank of Australia
Market Cap	$51.48 billion	$256.02 billion
P/E Ratio	12.74	23.39
Dividend Yield	6.46% (fully franked)	3.31% (fully franked)
Dividend per share	$1.08	$5.05
Year To Date Return	-19.1%	-1.9%

Worth noting: Fortescue trades on a much lower P/E than CBA, but mining and banking sectors normally have different valuation ranges. Both companies offer 100% franking.

Recent share price performance

Comparing the past month:

• Fortescue shares dropped from $17.93 on 24 August 2026 to $16.72 on 21 September 2026, a fall of about 6.7% over these four weeks. The YTD return stands at -19.1%.
• Commonwealth Bank shares fell from $156.88 on 24 August 2026 to $152.43 on 18 September 2026, a smaller drop of about 2.8% over this period. The YTD return is -1.9%.

Which is the better buy?

If I’m focusing purely on passive income, my pick would be Fortescue. The main appeal is that much higher, fully franked dividend yield – almost double CBA’s, according to the latest data. That’s hard to ignore for income investors, provided you’re comfortable with the big swings that come with mining stocks.

CBA is the safer, more stable option with an impressive record of steady payouts and lower price volatility. But for someone seeking immediate, generous passive income, Fortescue stands out. I’d stress, though, that Fortescue’s payout can be lumpy, as it’s closely tied to the iron ore price, so future yields may swing around more than CBA’s. If I wanted reliability above all else, I might still lean toward CBA, but on headline yield and franking, Fortescue clinches it for me right now.

The post Fortescue vs Commonwealth Bank: Which is best for passive income? appeared first on The Motley Fool Australia.

More reading

• Should I buy CBA shares before the end of September?
• Why I’d invest $50,000 of superannuation into these 3 top ASX ETFs
• 3 ASX dividend shares offering gross yields of 8% or more
• 2 ASX blue-chip shares that won’t be hit by $100 oil
• How much passive income can I earn off an $800,000 superannuation balance?

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.