New Hope Corp Ltd (ASX: NHC) and BHP Group Ltd (ASX: BHP) shares have not only smashed the benchmark returns over the past five years, they’ve also delivered some market-beating passive income.

Since 24 September 2021, the S&P/ASX 200 Index (ASX: XJO) has gained 19.4%.

Reflecting the importance of passive income, the S&P/ASX 200 Gross Total Return Index (ASX: XJT), which includes all cash dividends reinvested on the ex-dividend date, has gained 44.1% over this same period.

So, just how much would you have earned from a $5,000 investment in New Hope and BHP shares five years ago?

Let’s dig in.

Drilling into BHP shares for passive income

On 24 September 2021, you could have bought shares in the ASX 200 mining giant for $33.59 apiece. So, your $5,000 investment would have netted you 148 shares, with enough change left over for a cheeseburger.

Now you would have done quite well on the capital gains front alone. During the Wednesday lunch hour, BHP shares are changing hands for $62.11, up 84.9% in five years. And if you sold those 148 shares today, you’d receive $9,192.

As for that passive income, if you’d owned Australia’s largest mining stock – and now the biggest stock on the ASX – for the last five years, you would have received (or shortly will) the last 10 fully-franked dividends. BHP stock traded ex-dividend on 3 September. If you held the miner at market close on 2 September, you can expect to get paid today.

Turning to my trusty calculator, those 10 fully-franked dividend payouts work out to $13.583 a share.

So, the 148 BHP shares you bought for $5,000 five years ago would already have delivered $2,010 in passive income. And that’s atop those share price gains, not to mention the cheeseburger!

Which brings us to…

Tipping $5,000 into New Hope shares

Five years ago, New Hope shares were trading for $2.38 each. Meaning for $5,000, you could have bought 2,100 shares in the ASX 200 coal stock.

And you wouldn’t have regretted it.

At the time of writing, New Hope shares are trading for $5.89, up 147.5% since 24 September 2021. And those 2,100 shares you bought are now worth $12,369.

Over this time, you’d also have received (or shortly will) the last 10 fully-franked New Hope dividends. New Hope stock traded ex-dividend on Monday. If you owned shares in the Aussie coal miner at market close on Friday, you can expect to receive that passive income payout on 15 October.

All told, those last 10 New Hope dividend payments equate to $2.69 a share.

Meaning the 2,100 New Hope shares you picked up for $5,000 five years ago will already have paid out $5,649 in passive income, with tax benefits from those franking credits.

The post Bought $5,000 worth of New Hope and BHP shares 5 years ago? Guess how much passive income you’ve already earned! appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Xero Ltd (ASX: XRO) shares have fallen further into the red in Wednesday lunchtime trade.

At the time of writing, the ASX tech shares are down around 5% to a seven-year low of $58.28 a piece.

Today’s slide means the shares have now shed 34% of their value since spiking to a six-month high of $88.95 in August.

While it looked like the cloud-based accounting software company was finally rebounding from a huge share price crash in the second half of 2025, investor sentiment has reversed, and the shares have now dropped to a fresh multi-year low.

Xero shares are now down 48% year to date and 64% lower than 12 months ago.

What has happened to Xero shares over the past month?

Xero shares were caught up in a broad-based sell-off of technology shares earlier this year, when investors were spooked that AI could replace the core services of companies like Xero.

The shares rebounded strongly through July and most of August, driven by an investor rotation back into growth and technology stocks. It looks like investors started to become more confident that the company can keep growing revenue and become more profitable.

Xero’s most recent FY26 results, posted in May, confirmed that, too. The company reported a strong increase in its FY26 revenue, which it said was helped by subscriber growth and higher prices. 

There hasn’t been any price-sensitive news out of Xero to explain why the share price changed course over the past month.

It’s possibly the result of profit-taking investors taking their gains off the table after the July-August rally, combined with higher-than-expected inflation figures and news that the RBA could hike interest rates again next week. Investors have rotated away from growth stocks and into safer, more reliable assets amid fears of another spike in sharemarket volatility.

And this sentiment shift acts as a strong headwind for companies like Xero.

Is there any chance of a rebound?

According to the experts, yes, there’s a good chance that Xero shares will rebound over the next 12 months. And some expect the upside to be significant.

The company has sticky subscription revenue and huge potential for growth both into new markets and with new offerings.

Market Index data shows the majority of brokers have a buy rating on the shares. The $112 average target price implies that the shares could jump another 94%, at the time of writing.

Sentiment is just as positive on TradingView. Out of seven analysts, six have a buy/strong buy rating and one rates the shares as a hold. But they all agree there will be an upside ahead.

The average $111.25 target price implies a potential 92% upside, while the maximum $143.88 implies that Xero’s shares have the potential to rebound 149%, at the time of writing.

The post Down 5% today to a 7-year low: What is going on with Xero shares? appeared first on The Motley Fool Australia.

More reading

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• How to build a $50,000 passive income from ASX shares
• Do these ASX technology shares have too much upside to ignore?
• Xero shares crash to a 7-year low after a brutal sell-off
• Why brokers think Xero shares could surge 130% from here

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 Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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.

More reading

• Why I’d invest $50,000 of superannuation into these 3 top ASX ETFs
• 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.