BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Ltd (ASX: CSL) are three of the biggest shares on the ASX.

I think all three have strong long-term investment cases, although for quite different reasons.

Here is why I would be happy to buy each of them today.

BHP shares

BHP would be my pick for long-term exposure to the resources sector.

The company already owns some of the world’s largest mining operations, giving it a strong base from which to keep investing.

Iron ore remains an important source of cash flow, but I am particularly interested in where BHP’s copper business could be heading.

Copper will be needed for electricity networks, renewable energy infrastructure, electric vehicles, data centres, and many other areas likely to attract significant investment over the coming decade.

Bringing new copper supply online can also take many years. BHP already owns major assets and has the financial strength to continue investing, while weaker competitors may struggle.

Commodity prices can be volatile, so earnings will never be perfectly smooth. But I think BHP’s scale and portfolio of long-life assets make it one of the ASX miners I would be most comfortable owning for years.

CBA shares

CBA is my preferred major Australian bank.

The company has built extremely strong customer relationships across home lending, deposits, business banking, and everyday financial services.

I also think its technology gives it an important advantage. The CommBank app has become central to how many customers manage their finances, making it easier for CBA to deepen those relationships and offer additional products.

That does not mean the bank will suddenly become a rapid-growth company. Australian banking is highly competitive, and CBA regularly trades at a premium valuation.

But I think the quality of the business can justify paying more than I would for some of its rivals.

Add in the potential for fully-franked dividends, and I think CBA can offer investors a strong combination of income and capital growth.

CSL shares

CSL gives me a completely different opportunity.

The healthcare giant has been through a difficult period, but I think the earnings outlook is improving.

CSL has major positions in plasma therapies, vaccines, and specialist medicines, backed by a global collection network and operations that would be extremely difficult to replicate.

The business also has opportunities to improve margins as productivity increases and some of the pressures that weighed on recent results ease.

CSL shares have already recovered substantially from their lows, so the bargain available earlier this year has been missed. Even so, I still think the valuation leaves room for worthwhile returns if earnings continue growing over the next few years.

Foolish takeaway

Yes, I think BHP, CBA, and CSL shares are all top buys today.

BHP gives me exposure to resources that should remain important for decades, CBA is the Australian bank I would most want to own, and CSL still has room to rebuild earnings after a difficult period.

I would be comfortable buying any of the three and giving the investment plenty of time to develop.

The post Are BHP, CBA, and CSL shares top buys? appeared first on The Motley Fool Australia.

More reading

• South32 vs Rio Tinto: 2 popular ASX mining shares compared
• Woodside Energy vs Fortescue: Which ASX mining share is best for passive income?
• 6 ASX 200 shares boosted by brokers this week
• Forget CSL shares, I’d buy this ASX biotech stock instead
• 5 ASX shares I’d recommend to beginners

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

I’m sure plenty of Australians would love the idea of earning $75,000 a year in passive income and being able to retire at 45. I believe investing in ASX shares could be the best way to achieve that goal.

Some Aussies may love to work, while others may want to spend more time with loved ones, travelling or whatever else they want to do.

There are a variety of appealing reasons why reaching $75,000 of annual passive income could be compelling.

Let’s look at how we can unlock those targeted goals.

The power of compounding

Every investor who wants to retire early should view compounding as one of their closest financial friends.

Albert Einstein once supposedly said:

Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.

Compounding can help us benefit from investments that are growing on their own, over multiple years. When interest earns interest, investors can see their dollars grow into a much larger figure. Those investments are growing all by themselves, rather than requiring additional funding from our own finances.

To show how positively compounding can help Australians grow wealthier, I’m going to run through two potential examples.

Imagine someone who is 20 years old right now and manages to set aside $1,000 each month to invest in ASX shares. That implies an annual investment total of $12,000. Assuming the portfolio returns an average of 10% per year – which the share market has done over the long-term – it would grow into a value of $1.18 million after 25 years.

Turning to another example, let’s think about someone who starts five years later at 25. Hopefully that person would be able to earn more and save more. Let’s say they can invest $1,500 per month. If the portfolio also returned an average of 10% per year, it would grow to $1.03 million after 20 years.

Which ASX shares Aussies could buy for passive income to retire

If I use the two example portfolios above, a $1.18 million portfolio would require a dividend yield of 6.3% to make $75,000 of annual passive income. Meanwhile, a $1.03 million portfolio would require a dividend yield of 7.3%.

Those are certainly high dividend yields to target for income. It may be wise to consider building up the portfolio a bit further (for even just a year or two) before retiring, as that would allow investors to target a wider variety of investments.

If I were targeting dividend yields of more than 6%, or even above 7%, I would want to acknowledge that higher yields can come with a higher risk of being reduced.

But, there are a few names I’d include.

For portfolio average dividend yield that’s in the 6.3% or so range, I’d look at names like Medibank Private Ltd (ASX: MPL), PM Capital Global Opportunities Fund Ltd (ASX: PGF), Dexus Industria REIT (ASX: DXI) and MFF Capital Investments Ltd (ASX: MFF).

Some of the names I’d consider thinking of that yield at least 7% or better include Future Generation Australia Ltd (ASX: FGX), Future Generation Global Ltd (ASX: FGG), Hearts and Minds Investments Ltd (ASX: HM1), WCM Global Growth Ltd (ASX: WQG) and Charter Hall Long WALE REIT (ASX: CLW).

I believe investors seeking to retire with $75,000 in annual passive income would be well served by the above stocks, as well as other ASX shares that could deliver strong growth.

The post How much do I need to retire on $75,000 a year at 45? appeared first on The Motley Fool Australia.

More reading

• $3,000 buys 2,325 shares in an impressively reliable ASX dividend stock
• How much do I need in superannuation to receive $1,000 passive income per week?
• Soul Patts vs PM Capital Global Opportunities Fund: Which is better?
• Why this ASX share is a retiree’s dream for FY27
• 2 ASX shares with dividend yields above 10%

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, Future Generation Global, Hearts And Minds Investments, Mff Capital Investments, and Wcm Global Growth. 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 Mff Capital Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) ended the trading week on a somewhat sour note this Friday. After what has been a mostly positive week for ASX shares, investors couldn’t quite stick the landing today. Despite a strong open this morning, the ASX 200 ended up losing 0.014% by the time the markets wrapped up trading. That leaves the index at 8,731.2 points as we head into the weekend.

This middling end to the Australian trading week followed a far more optimistic night up on the American markets.

The Dow Jones Industrial Average Index (DJX: .DJI) staged a decisive bounce-back, rising 0.61%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) did even better, gaining a healthy 1.69%.

But let’s get back to the local markets now and examine how the different ASX sectors fared amid today’s indecisive trading conditions.

Winners and losers

There were a few winners to balance out the red sectors this Friday.

But first, to the losers.

Leading the pessimistic sectors this session were real estate investment trusts (REITs). The S&P/ASX 200 A-REIT Index (ASX: XPJ) copped some displeasure, tanking 1.31%.

Energy shares were also on the nose, with the S&P/ASX 200 Energy Index (ASX: XEJ) plunging 1.1%.

Consumer staples stocks were no safe haven. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) cratered by 1.04% this session.

We could say the same for communications shares, illustrated by the S&P/ASX 200 Communication Services Index (ASX: XTJ)’s 0.77% retreat.

Financial stocks weren’t finding many buyers. The S&P/ASX 200 Financials Index (ASX: XFJ) gave back 0.59%.

Consumer discretionary shares were just ahead of that, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) diving 0.54%.

Healthcare stocks weren’t feeling the love. The S&P/ASX 200 Healthcare Index (ASX: XHJ) ended up sliding 0.36% lower.

Our last losers this Friday were industrial shares, as you can see from the S&P/ASX 200 Industrials Index (ASX: XNJ)’s 0.16% slip.

Turning to the winners now, it was gold stocks that shone the brightest. The All Ordinaries Gold Index (ASX: XGD) soared 3.9% higher this session.

Broader mining shares ran hot too, with the S&P/ASX 200 Materials Index (ASX: XMJ) roaring 1.6% higher.

Tech stocks got some love as well. The S&P/ASX 200 Information Technology Index (ASX: XIJ) added 0.73% to its total today.

Finally, utilities shares got over the line, evident from the S&P/ASX 200 Utilities Index (ASX: XUJ)’s 0.14% bump.

Top 10 ASX 200 shares countdown

Healthcare stock 4DMedical Ltd (ASX: 4DX) was our best performer this Friday. 4DMedical shares rocketed 13.42% this session to close the week at $4.31 each.

We dove into what might have caused this rally this afternoon.

Here’s the rest of today’s best:

ASX-listed company	Share price	Price change
4DMedical Ltd (ASX: 4DX)	$4.31	13.42%
Develop Global Ltd (ASX: DVP)	$5.29	11.84%
IperionX Ltd (ASX: IPX)	$3.00	10.29%
Megaport Ltd (ASX: MP1)	$18.54	7.60%
PDI Gold Ltd (ASX: PDI)	$4.91	7.51%
Ora Banda Mining Ltd (ASX: OBM)	$1.53	7.37%
Greatland Resources Ltd (ASX: GGP)	$11.05	5.54%
Vault Minerals Ltd (ASX: VAU)	$6.34	5.49%
Genesis Minerals Ltd (ASX: GMD)	$7.60	5.26%
Monadelphous Group Ltd (ASX: MND)	$30.62	5.22%

Enjoy the weekend!

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• ASX 200 slips into the red after a positive start. Here’s why
• Downgrade alert! 5 ASX 200 shares downgraded by experts this week
• 4DMedical shares are rocketing 11% today. Is a short squeeze starting?
• Wall Street just shrugged off the Fed rate hike. Could the ASX 200 be next?
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Sebastian Bowen 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 Megaport. 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.