Wesfarmers vs Woolworths shares: Which dividend stock is better today?

When it comes to blue-chip dividend shares on the ASX, Wesfarmers Ltd (ASX: WES) and Woolworths Group Ltd (ASX: WOW) are two names I hear mentioned time and again. Both are household names, both deliver franked dividends, and both have substantial histories as Australian retail powerhouses. If you’re trying to decide between the two, you’re not alone—so let’s take a closer look at where their shares stand today.

The case for Wesfarmers

Wesfarmers is one of Australia’s largest diversified conglomerates. With origins back in 1914 as a Western Australian farmers’ cooperative, today it’s home to familiar brands like Bunnings, Kmart, Officeworks, Priceline, and a growing health and wellbeing business after buying Australian Pharmaceutical Industries. This breadth means Wesfarmers is exposed to multiple sectors—from consumer retail to chemicals, energy and fertilisers—making it less reliant on any one division.

A few points leap out in the fundamentals:

• Market Cap: $86.93 billion, making it one of the country’s biggest listed companies
• Dividend Yield: 2.99%, fully franked at 100%
• P/E Ratio: 29.34

Wesfarmers’ dividend has been not only consistent but also fully franked, and the last payout (final and interim for FY26) totals $2.22 per share. According to its most recent public description, Wesfarmers is continuing to invest and broaden its portfolio.

The case for Woolworths

Woolworths Group is the dominant supermarket retailer across Australia and New Zealand. If you’ve set foot in a Woolies or Big W store lately, you’ve experienced just a slice of its immense retail presence. With its core focus on groceries and everyday needs, Woolworths is often seen as a “defensive” stock, aiming for stability even during tougher economic times. It divested its drinks and hospitality business in 2021, sharpening its focus on supermarkets and general merchandise.

Key fundamentals include:

• Market Cap: $47.89 billion
• Dividend Yield: 2.49%, also fully franked at 100%
• P/E Ratio: 42.04

Woolworths’ most recent declared dividends (final and interim for FY26) total $0.97 per share. In its company profile, Woolworths highlights its large store network and massive workforce supporting steady cashflows from groceries and essentials.

Valuation comparison

Let’s put some of the main valuation and return metrics side by side:

Metric	Wesfarmers	Woolworths
Market Cap	$86.93b	$47.89b
P/E Ratio	29.34	42.04
Dividend Yield	2.99%	2.49%
Dividend per Share	$2.22	$0.97
Franking	100%	100%
EPS	2.534	0.925
YTD Return	-5.6%	35.7%

It’s notable that Wesfarmers trades on a much lower P/E ratio than Woolworths—29.34 compared to 42.04—even though both are in sectors that typically attract market premiums. Wesfarmers’ full-year dividend is also higher in absolute terms and yield, with both companies offering the stability of full franking.

Note: While both companies’ P/E and EPS are presented side by side, keep in mind sector differences—Wesfarmers’ more diversified earnings base vs Woolworths’ retail focus—may affect how much weight I’d give to a headline multiple.

Recent share price performance

Comparing recent share price activity up to 30 September 2026:

• Wesfarmers closed at $76.61, up 3.0% on the day, but has returned -5.6% YTD
• Woolworths finished at $39.20, up 0.8% on the day, with a very strong YTD return of 35.7%

That’s a huge divergence over 2026 so far—Woolworths has enjoyed a stellar run, while Wesfarmers has pulled back.

Which is the better buy?

Balancing strong dividend credentials with business quality and recent momentum, my pick today would be Wesfarmers. Here’s why: The absolute dividend yield is higher, the payout is fully franked, and Wesfarmers’ diversified portfolio is built to weather different macro conditions—not just those that support grocers. While Woolworths has shot the lights out with a 35.7% return this year, its P/E ratio is substantially higher, suggesting markets may already be pricing in a lot of optimism. I see more sustainable value and income potential in Wesfarmers at these levels, especially for those who care about fully franked dividends and a lower entry multiple. For income investors, Wesfarmers ticks more boxes for me. Woolworths is certainly quality, but at 42 times earnings, I’d rather wait for a better entry point there.

The post Wesfarmers vs Woolworths: Which ASX dividend share looks better this month? appeared first on The Motley Fool Australia.

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• How much could the Wesfarmers share price rise in the next year?
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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 positions in and has recommended Wesfarmers. 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. 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.

I’m a big fan of investing in ASX dividend shares, but I also own some ASX growth shares that I’m bullish about.

One of the very best businesses on the ASX is Pro Medicus Ltd (ASX: PME) and I recently invested $1,500 in it. It’s not the first time I’ve invested in the company, but I thought the valuation was attractive enough to invest in the business again.

Pro Medicus is a leading healthcare informatics company, providing a full range of medical imaging software and services to hospitals, imaging centres and healthcare groups globally.

Three factors drove my decision to invest in the ASX growth share.

Much better valuation

I believe investing in great businesses leads to better long-term returns. However, wonderful companies usually come with a higher price tag.

The Pro Medicus share price certainly isn’t cheap, but it’s a lot cheaper than it used to be, and that’s what triggered my decision to buy. I like to invest during dips and take advantage of the lower price.

Not only has the Pro Medicus share price fallen 24% since July 2026 (at the time of writing), but it’s down more than 50% since July 2025. How often will you see one of the ASX’s best companies fall by that much? Not very often.

According to the projection on CMC Invest, the Pro Medicus share price is now valued at 88x FY27’s earnings and 70x FY28’s estimated earnings.

Of course, those are still high price/earnings (P/E) ratios. Why be willing to pay that price for the ASX growth share? There are two factors that really stick out.

Ongoing impressive contract performance

The company’s financials continue to compound at a strong pace and this is helping justify the valuation.

Revenue growth is a core driver of the company’s progress – in FY26 the business reported revenue grew 22.9% to $261.7 million. That revenue generation is mostly from contracts signed before FY26.

During FY26, the company announced it had signed 10 new contracts worth a minimum of A$407 million.

It also renewed six out of six contracts worth A$141 million on five-year terms. Those renewals included increased minimums and an increased fee per transaction, which is a great sign of organic revenue growth and client appreciation of Pro Medicus’ software.

Some investors may be worried about AI, but the company has proven it continues to attract new contracts. In August 2026, it announced a seven-year A$25 million contract with Valley Health which included the full stack of technology, as well as cardiology imaging, which is another growth avenue for the company.

Profit margins continue to rise

Not only is the ASX growth share’s revenue growing at a fast pace, but the company’s incredibly high profit margins continue to improve. This means that each new revenue dollar is even more profitable than it was before.

During FY26, the company’s operating profit (EBIT) margin improved by 90 basis points to 74.9%. That’s an insanely high figure. It also rose despite management indicating they weren’t expecting the margin to stay as high as it was during COVID-19 – it’s a lot higher now.

Given the size of the EBIT margin improvement in FY26 and the potential for further tech-driven margin gains, I think its profit margins can continue to climb.

While the P/E ratio is still relatively high, I believe its strong revenue growth and high margins will allow the earnings multiple to quickly become more reasonable over the next few years.

But it’s not the only ASX growth share I’ve got my eyes on.

The post Why I just invested $1,500 into this top ASX growth share appeared first on The Motley Fool Australia.

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

October is underway, and I have been looking at which ASX shares I would be comfortable adding to a portfolio this month.

The three below are exposed to very different industries, but each has a growth story I think could have plenty further to run.

Here is why they make my October buy list.

NEXTDC Ltd (ASX: NXT)

NEXTDC is my pick for exposure to the rapid growth in digital infrastructure.

The company is benefiting from rising demand for data centre capacity as artificial intelligence (AI), cloud computing, and other digital services require more computing power.

That demand is already showing up in the business. In FY26, net revenue increased 16% and underlying EBITDA rose 15%. More importantly for the years ahead, contracted utilisation more than tripled as customers locked in substantial amounts of future capacity.

That gives NEXTDC a large pipeline of business that should progressively move into revenue as new capacity comes online.

There is still plenty to execute, particularly given the enormous investment required to build data centres. But I think NEXTDC has a much clearer growth runway today than it did a few years ago.

That puts this ASX share firmly on my October buy list.

CSL Ltd (ASX: CSL)

CSL makes the list for a completely different reason.

FY26 was a difficult year, but I think the healthcare giant now has a clearer opportunity to rebuild growth.

Underlying demand for immunoglobulin therapies remains healthy, while CSL has been improving efficiency across its plasma collection network and investing in manufacturing technology designed to increase yields.

Newer products also give the company additional avenues for growth.

For me, the opportunity is not dependent on CSL suddenly returning to the growth rates investors once expected. A steady recovery in margins, improving plasma economics, and continued demand for its therapies could be enough to produce a much healthier earnings trajectory over the next few years.

I think that makes the current recovery story worth buying into.

Netwealth Group Ltd (ASX: NWL)

Netwealth rounds out my three October picks.

The wealth platform provider continues to attract substantial amounts of investor money, which gives the business a growing base from which to generate revenue.

I like the structural story here. Financial advisers and their clients are increasingly using modern investment platforms to manage portfolios, reporting, administration, and other parts of their wealth.

Netwealth has established itself as one of the major beneficiaries of that shift and continues to win new funds onto its platform.

That creates a relatively straightforward growth opportunity. If more advisers and investors choose Netwealth, the amount of money administered through the platform can keep expanding alongside earnings.

For me, that makes Netwealth a quality ASX growth share I would be happy to buy in October and hold for many years.

Foolish takeaway

I am looking beyond what these companies might deliver over the next few months and focusing on the long term.

NEXTDC already has a huge pipeline waiting to be built, CSL has an opportunity to restore momentum, and Netwealth continues taking a larger share of Australia’s wealth platform market.

Those are growth stories I think still have plenty of chapters left, which is why all three ASX shares would be on my buy list in October.

The post Top ASX shares to buy in October 2026 appeared first on The Motley Fool Australia.

More reading

• This ASX 200 share is tipped to return over 50%
• 5 things to watch on the ASX 200 on Friday
• CSL vs Pro Medicus: Which ASX healthcare share is better?
• 5 leading ASX shares I’d buy and hold until 2040
• Expert names Woodside and CSL shares as top buys today

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