Passive income is one of the most rewarding things about investing. Getting money paid into my bank account year after year sounds great to me.

There are a wide range of investments available on the ASX such as ASX blue-chip shares. But, the biggest businesses aren’t necessarily the best names to buy with how large they already are and the limited earnings growth prospects.

Banking is becoming increasingly competitive, while resource prices are unpredictable at the best of times. In my view, the two passive income ideas below are better options than names like Commonwealth Bank of Australia (ASX: CBA), and could be used to generate $200 per month (or more)

APA Group (ASX: APA)

If I’m investing for passive income, I’d want to choose names I’m confident will continue paying dividends, even in difficult times.

APA is one of the largest energy businesses in Australia. With its key asset being national gas pipelines that span the country for tens of thousands of kilometres. It transports approximately half of the nation’s gas usage, so APA is an essential business for Australia.

It also owns a number of other important assets including gas processing, gas storage, gas power stations, electricity transmission, solar farms and wind sales.

The business regularly expands its asset portfolio.

For example, last week it announced that the Australian Energy Regulator (AER) had approved APA’s $213 million expansion of the South West Pipeline in Victoria to help meet projected peak day gas shortfalls from 2029, which will allow for more Victorian gas from the Otway Basin and Lochard’s Iona underground gas storage facility.

The business has a $3 billion organic growth pipeline, which gives it significant optionality to increase earnings and cash flow in the coming years. Plus, most of its revenue is climbing because it’s linked to inflation.

Why is it such a good passive income idea? It has increased its distribution every year for the past 20 years, which is an incredibly consistent and reliable record.

I expect the business could pay a distribution of at least 59 cents per security in 2027, which translates into a distribution yield of 5.75%.

WCM Quality Global Growth Fund (ASX: WCMQ)

The other ASX share I want to highlight is this exchange-traded fund (ETF) which focuses on investing in a portfolio of between 20 to 40 high-quality global stocks.

The fund’s goal is to outperform the global share market, which (as of June 2026) it has done over the past three months, three years, five years and since the ETF’s start in August 2018.

It looks for stocks with improving economic moats and corporate cultures that strengthen their competitive advantages. In my view, it’s a very effective investment strategy, and it’s likely to continue delivering strong returns over time, with very little reliance on the ‘Magnificent Seven’ for those returns.

In terms of the passive income, it targets a minimum annualised cash yield of at least 5% per annum. Net returns that are stronger than 5% can help up push up the value of the fund and support larger payouts in the future.

$200 of monthly passive income

The average dividend yield of these two stocks is 5.4%. Therefore, to generate $2,400 of annual passive income ($200 per month), it would take $44,444 spread across these two ideas.

But, these aren’t the only ASX shares I’d choose for passive income because I’d want to have a diversified portfolio.

The post 2 passive income ideas I’d use to generate $200 a month in 2027 appeared first on The Motley Fool Australia.

More reading

• How much do I need in superannuation to receive $5000 per month in passive income?
• How I would turn $200,000 into an ASX retirement income portfolio
• How to build an ASX dividend portfolio that keeps paying you for decades
• How to make $50,000 of passive income from ASX shares like CBA
• How I would build an ASX portfolio with just 3 investments

Motley Fool contributor Tristan Harrison has positions in Wcm Quality Global Growth Fund. 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 positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Paladin Energy Ltd (ASX: PDN) shares were on form on Wednesday.

The uranium producer’s shares rose almost 7% to finish the day at $9.13.

The good news is that Bell Potter believes there is a lot more to come from this ASX share.

What is the broker saying?

Bell Potter was pleased with the mining company’s performance during the fourth quarter, noting that it outperformed expectations. It said: 

PDN reported quarterly U3O8 production of 1.3Mlb (BPe 1.1Mlb; FY26 4.8Mlb), sales of 1.4Mlb (BPe 1.2Mlb; FY26 4.4Mlb) and closing U3O8 inventory of 1.7Mlb on completion of mining and processing ramp-up. PDN realised an average price of US$71/lb (up 3% QoQ; FY26 US$70/lb). Production costs were US$52/lb (FY26 US$43/lb), up 28% QoQ reflecting the transition to full mining activities and depletion of stockpiled MG3 ore.

PDN outperformed FY26 guidance across all metrics. At 30 June 2026, PDN had cash and investments of US$265m (31 March 2026 US$220m), net cash (excluding leases) of US$113m and available liquidity of US$335m.

Looking ahead, FY 2027 is set to be another solid year for the company, with production expected to grow to between 5.1Mlb and 5.6Mlb.

However, it will be weighted to the second half of the year. Bell Potter commented:

PDN’s FY27 guidance points to U3O8 production of 5.1-5.6Mlb and sales of 4.8- 5.3Mlb, weighted to 2H with ore feed grades to lift as mining progresses through J Pit and with maintenance shutdowns scheduled for 1H. Unit cost guidance is consistent with FY26 at US$44-48/lb and should trend lower throughout the year as production ramps. Capex (excluding capitalised stripping and building of low-grade stockpiles) of US$25-29m will target tailings storage construction, process optimisation studies and infill drilling.

Paladin Energy shares tipped to rocket

According to the note, in response to the update, Bell Potter has retained its buy rating on the company’s shares with a trimmed price target of $14.80 (from $15.30).

Based on its current share price of $9.13, this implies potential upside of 62% for investors over the next 12 months.

Commenting on its recommendation, Bell Potter said:

We retain our Buy recommendation. We have a positive medium- to long-term outlook for the uranium market, supported by barriers to new supply and demand growth linked to electrification, energy security and AI-related power requirements. PDN has around ~53% exposure to spot prices out to 2030. Production at LHM continues to improve with higher-grade mined ore feeding the processing plant and continued process optimisation.

The post Why Paladin Energy shares could rise 60% appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Why is everyone talking about Resolute Mining, Westgold and Paladin shares on Wednesday?
• Paladin Energy sets FY2027 Langer Heinrich uranium guidance
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro 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.

It has been a bit of a topsy-turvy month for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares. Although the index is technically sitting pretty flat, having gone backwards by 0.04% since this time in June, we’ve seen it go from the low 8,700s to as high as 8,850 points. That’s a range worth more than 1.5%.

Of course, there have been several events on the global stage that easily explain this volatility. Most of all, the resumption of hostilities in the Middle East has exacerbated fears of a new energy crisis.

In this climate, it can be difficult to find the confidence to invest in new ASX shares. However, I still think there are buys out there. So here are two ASX shares that I’d buy this July.

2 ASX shares to buy this July

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

First up, we have Washington H. Soul Pattinson, or Soul Patts for short. This company is a rather unique stock on the ASX. It functions more as an investment holding company than your traditional ASX share. Buying its shares represents buying an ownership stake in Soul Patts’ vast underlying investment portfolio. This portfolio is well diversified. It contains several large stakes in other ASX shares, a broad-based portfolio of large-cap ASX shares, property assets, private credit, venture capital and more.

Soul Patts has a track record that spans decades. This, in my view, displays its investing acumen in a very favourable light indeed. To illustrate, as of 31 January, Soul Patts investors have enjoyed an average return of 12.9% per annum (share price growth plus dividends). That’s well above what the ASX 200 has delivered over the same span.

Speaking of dividends, Soul Patts also has one of the best dividend track records on the ASX, having delivered an annual dividend rise every year since 1998. That’s 28 years and counting. All in all, this is an ASX stock I’d buy any day.

iShares Global Consumer Staples ETF (ASX: IXI)

Our next ASX share is not really an ASX share at all, but an exchange-traded fund (ETF). The iShares Global Consumer Staples ETF houses a portfolio of underlying shares that are drawn from all over the world. These shares are all leaders in the consumer staples sector.

Consumer staples are goods that we tend to need to buy. They include food, drinks, household essentials, as well as alcohol and tobacco products. Because of the nature of these products, consumer staples companies tend to be highly resilient investments, capable of surviving and even thriving during economic shocks or downturns. After all, we all need to eat, drink and stock our households, regardless of the economic weather.

You’ll probably recognise many of the investments that can be found in IXI’s portfolio. They currently include Coca-Cola, Unilever, Costco, Colgate-Palmolive, and Philip Morris International. Our own Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) are also present.

If you’re nervous about the current geopolitical climate, this might be an investment worth considering today.

The post 2 ASX shares I’d buy this July appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I’d buy and hold for my kids
• How much is needed in superannuation to target a $100,000 annual passive income?
• How much do I need in my superannuation to earn an annual $60,000 passive income?
• Here are the top 10 ASX 200 shares today
• 3 ASX dividend shares that look better after CGT reforms

Motley Fool contributor Sebastian Bowen has positions in Coca-Cola, Costco Wholesale, Philip Morris International, Unilever, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Colgate-Palmolive, Costco Wholesale, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Philip Morris International and Unilever. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.