I think ASX growth shares can be a great way to build wealth over time.

The companies I am most interested in are those that can keep increasing revenue and earnings for many years while reinvesting in even larger opportunities.

When that process continues for long enough, the results can be substantial.

Look for businesses with room to grow

A company can already be successful and still have a long way to go.

TechnologyOne Ltd (ASX: TNE) is a good example. Its enterprise software is used by councils, universities, government organisations, and other large institutions.

Once an organisation builds important processes around a software platform, changing providers can become time-consuming and disruptive. That can help TechnologyOne retain customers while gradually expanding the services they use.

The tech company also has opportunities to keep growing overseas, particularly in the UK.

For me, that is the type of growth story worth looking for. TechnologyOne does not need to invent an entirely new business every few years. It can keep improving its existing software, add customers, and expand into larger markets.

Give compounding time to work

Growth investing becomes particularly powerful when a company can reinvest its profits and keep generating attractive returns from that spending.

Hub24 Ltd (ASX: HUB) has been doing this for years as it expands its investment and superannuation platform.

Australia’s pool of retirement savings should keep growing over the decades ahead, while financial advisers increasingly rely on modern platforms to manage client portfolios.

If Hub24 continues winning advisers and attracting more money onto its platform, the business can become more valuable without needing to reinvent its core proposition.

This is where patience becomes important.

A strong company can have an excellent year without creating life-changing wealth for shareholders. The bigger opportunity comes when it repeats that growth over five, 10, or even 20 years.

Earnings can compound, the business can become considerably larger, and shareholders participate in that expansion.

I would focus on quality as well as growth

Rapid growth alone would not be enough for me.

I want to understand why a company is growing and whether it has a realistic chance of continuing.

REA Group Ltd (ASX: REA) is the type of business I find attractive for that reason.

Realestate.com.au has built an enormous audience, which encourages property agents to list their homes on the platform. Those listings then give buyers and renters another reason to keep visiting.

REA Group can build on that position by offering better tools, property data, artificial intelligence features, and services connected to financing and the broader property journey.

I think businesses with strong competitive positions have a better chance of protecting the profits needed to keep investing for the future.

The share price will not always cooperate

Even great growth shares can fall sharply.

Expectations can become too high, economic conditions can change, or investors can simply lose enthusiasm for a sector.

I would expect volatility rather than treating it as a sign that a long-term strategy has failed.

That makes diversification important as well. I would rather own several high-quality growth businesses than depend on one company getting everything right.

It also means I would be careful about chasing a share simply because its price has been rising. The business still needs to justify my confidence in its future.

Foolish takeaway

I think ASX growth shares can play an important role in building serious long-term wealth.

The businesses I want to own have clear opportunities to become larger, strong competitive positions, and the ability to reinvest successfully for years.

Finding those companies is only part of the job. The other part is giving them enough time to compound.

If I can own a collection of strong growth businesses and resist the temptation to constantly interfere, I think that can be a powerful approach to growing wealth over the long term.

The post How I’d use ASX growth shares to build long-term wealth appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

An ASX dividend portfolio shouldn’t be built by simply chasing the biggest yields.

A sky-high dividend can quickly disappear if the underlying business struggles. For investors seeking income for decades, I’d rather own high-quality companies with resilient cash flows, sustainable dividends and the potential to increase those payments over time.

The goal is to build multiple income streams that can withstand changing economic conditions.

Start with defensive businesses

A strong ASX dividend portfolio needs dependable cash flow.

Woolworths Group Ltd (ASX: WOW) is a good example. Supermarkets aren’t particularly exciting, but Australians still need groceries and household essentials regardless of the economic cycle.

Woolworths faces intense competition, rising costs and changing consumer behaviour. However, its defensive business model and recurring customer demand can provide the earnings stability dividend investors value.

Add essential infrastructure

A long-term ASX dividend portfolio should also include businesses providing services people rely on every day.

Transurban Group (ASX: TCL) owns and operates toll roads across Australia, North America and Canada, collecting toll revenue from millions of journeys.

That infrastructure can provide relatively predictable cash flows, although Transurban faces substantial capital requirements, debt and regulatory risks.

For an ASX dividend portfolio, its toll-road exposure adds an infrastructure income stream that’s less dependent on consumer spending or commodity prices.

Diversify your income streams

Concentrating too heavily in banks or miners can leave dividend investors exposed when economic conditions change.

APA Group (ASX: APA) can add another layer of diversification. It owns and operates energy infrastructure, including gas pipelines and renewable energy assets, generating revenue from essential infrastructure rather than relying purely on commodity prices.

Property can also play a role in ASX dividend portfolio.

Charter Hall Retail REIT (ASX: CQR) provides exposure to a portfolio of Australian retail properties, including convenience-focused shopping centres. Its relatively long leases can provide visibility over rental income, although investors still need to monitor interest rates, debt and tenant quality.

Don’t forget dividend growth

A high dividend yield today doesn’t guarantee a higher income tomorrow.

Commonwealth Bank of Australia (ASX: CBA) has historically rewarded shareholders through dividends and long-term capital growth. Its scale, balance sheet and strong market position make it one of Australia’s most closely followed income stocks, although banks remain exposed to economic cycles.

Wesfarmers Ltd (ASX: WES) is another company worth considering. Its dividend yield isn’t usually among the highest on the ASX, but that’s not necessarily a weakness.

Wesfarmers has focused on reinvesting in its businesses, improving operations and allocating capital towards attractive growth opportunities. Over time, that approach can support rising earnings and, potentially, a growing dividend.

Foolish takeaway

Building an ASX dividend portfolio for life isn’t about finding the highest-yielding shares. I’d rather combine defensive businesses, essential infrastructure, property and dividend growers to create multiple income streams.

The aim isn’t simply to collect big dividends today. It’s to own businesses capable of continuing to pay – and ideally increase – those dividends for many years to come.

The post Want income for life? Here’s how I’d build an ASX dividend portfolio appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Super Retail, APA, Sonic Healthcare shares
• How ASX dividend growth shares can build lasting income
• I think this is one of the best ASX dividend shares to own for the next 10 years
• How much is needed in superannuation for $1500 in weekly passive income?
• My top 5 ASX 200 shares to buy and hold

Motley Fool contributor Marc Van Dinther 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 Transurban Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Charter Hall Retail REIT, and Transurban Group. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Guzman Y Gomez Ltd (ASX: GYG) share price soared on Friday after reporting its FY26 result. As the chart below shows, GYG has soared since April 2026.

At this higher valuation, I’m not about to say that GYG is trading at an ultra-cheap price. But, I think the company has such a compelling long-term future that it still represents a good buy at this price.

The US expansion didn’t work out, but the rest of the business is still growing rapidly and the outlook is compelling, in my view. Let’s run through why Guzman Y Gomez shares are still compelling to me.

Excellent revenue growth potential

I think one of the most important factors for deciding how big a return a business can deliver is how much its top line can grow.

Despite being two decades old, the business seems nowhere near finished growing at a strong pace.

In FY26 alone, the business saw Australian network sales grow 17.9% to $1.29 billion, and Asian network sales also rose 17.9% to $87.1 million. Many ASX shares would be happy with that level of growth, and the business is growing strongly in the two different markets of Australia and Asia.

During FY26, its Australian network expanded by 32 to 255, the Singapore network rose by three to 24, and the Japanese network remained at five. Excitingly, GYG expects more restaurants in both Singapore and Japan. I think there is significant potential for international growth over the long term.

The business expects to open 35 new restaurants in Australia in FY27, with a medium-term goal to open around 40 new locations annually in Australia. Over the ultra-long-term, it sees scope to reach 1,000 restaurants in Australia.

On top of that network growth, it’s expecting mid-single-digit comparable sales growth in FY27. That’s a solid level of growth for its existing network.

Profit margins expected to rise

If margins were stable as the network grows quickly, the business would have a good future. Guzman Y Gomez also expects significant margin improvement in the coming years.

In the 2026 financial year, GYG revealed that its underlying operating profit (EBITDA) as a percentage of network sales rose by 50 basis points (0.50%) to 6.2% in FY26. In the long term, the company is targeting this margin to reach 10%, but it’s expecting it to reach between 6.7% to 6.9% in FY27.

With strong profitability for its corporate restaurants and franchise restaurants, the outlook is positive for strong profit growth.

Excluding the losses from the US business, operating profit (EBITDA) grew by 27.4% to $98.5 million, and statutory net profit rose 31.6% to $40.6 million.

I’m optimistic that earnings per share (EPS) can compound at a strong rate in the coming years.

Payments to owners of Guzman Y Gomez shares

The company is rewarding investors with pleasing dividends. For FY26, Guzman Y Gomez is paying out around 90% of its underlying earnings from Australia and Asia as a dividend, with a total dividend of 48 cents per share.

By rewarding investors with such a high dividend payout ratio, they are receiving significant income and still able to enjoy the capital growth from its expansion. With a significant franchise network (including Asia), GYG doesn’t need that much retained earnings (capital) itself to see its restaurant network grow at a pleasing pace.

I expect the GYG dividend to grow roughly in line with underlying earnings in the coming years. Additionally, it announced a share buyback of up to $100 million, which can boost the EPS and dividend per share, while also improving the return on equity (ROE).

I think the Guzman Y Gomez share price has a very compelling long-term future.

The post Why I’d still buy Guzman Y Gomez shares after its big rise appeared first on The Motley Fool Australia.

More reading

• Everything you need to know about the Guzman Y Gomez dividend
• Why Guzman Y Gomez, Pro Medicus and James Hardie shares are turning heads on Friday
• Guzman y Gomez delivers record FY26 results, launches new buyback
• 2 top ASX shares to buy and hold for the next decade
• 5 ASX shares downgraded by brokers this week

Motley Fool contributor Tristan Harrison has positions in Guzman Y Gomez. 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.