Commonwealth Bank of Australia vs Coles Group shares

Thinking about putting a decent sum of money to work at age 50? You might be weighing up blue-chip mainstays like Commonwealth Bank of Australia (ASX: CBA) and Coles Group Ltd (ASX: COL). Both are household names, offer steady dividends, and can anchor a portfolio for long-term wealth – but which really stacks up as the better buy now?

The case for Commonwealth Bank of Australia

Commonwealth Bank of Australia is the country’s largest bank by market value, with a history dating back over a century. It’s truly a financial powerhouse, serving millions of Aussies and Kiwi customers across banking, funds management, insurance, and broking. CBA’s brand is instantly recognisable and its digital banking platform is widely regarded as an industry leader.

Looking at the fundamentals:

• P/E Ratio: 23.38 – a not-uncommon range for the big banks in recent years.
• Dividend yield: 3.31%, fully franked, with a long record of consistent, rising payouts (recent years showing annual increases).
• Market Cap: $251.64 billion – it absolutely dominates the ASX banking sector by size.
• CBA’s earnings per share is 6.517, supporting its substantial dividends.
• Importantly for many retirees or near-retirees, it franks all its dividends at 100%.

The case for Coles

Coles is a giant of the Australian supermarket scene, serving everyday groceries to millions of households each week. The company includes Coles Supermarkets, Coles Liquor, and significant online channels, making it a true consumer staple. Once part of the old Coles Myer empire, it found new independence after spinning off from Wesfarmers in 2018.

Some standout numbers:

• P/E Ratio: 28.18 – that’s above CBA’s, but supermarkets can warrant higher multiples due to their stable, recurring demand.
• Dividend yield: 3.41% (fully franked), a touch higher than CBA’s, and the dividend per share has shown steady growth since relisting.
• Market Cap: $30.75 billion – much smaller than CBA, but still a top-20 ASX company and a true blue-chip by any measure.
• Earnings per share: 0.812, in line with its sector and size.

Valuation comparison

Here’s how the two stack up on key metrics:

Metric	Commonwealth Bank	Coles Group
P/E Ratio	23.38	28.18
Dividend Yield	3.31% (100% franked)	3.41% (100% franked)
Market Cap	$251.64 billion	$30.75 billion
Dividend per Share	$5.05	$0.74
EPS	6.517	0.812

Both companies pay fully franked dividends, nice for after-tax income in retirement. Coles edges out CBA for current yield (3.41% vs 3.31%) but trades at a noticeably higher P/E ratio. Just note, as banking and supermarket stocks belong to very different sectors, their typical P/E ranges don’t always line up apples-for-apples – supermarkets are often seen as more consistent defensive earners.

Recent share price momentum

Comparing recent share price momentum up to 7 October 2026:

• CBA: Closed at $150.37, down 1.32% on the day. Year to date, the return sits at -2.0%, showing modest underperformance in 2026 so far.
• Coles: Closed at $22.88, flat on the day. Year to date, the return is 10.4% – Coles has delivered a solid positive run in 2026 to date.

So if you’re after recent price momentum, Coles has the edge.

Which is the better buy?

If I was making a large investment at 50 and wanted a reliable, lower-volatility cornerstone holding, I’d personally lean toward Commonwealth Bank of Australia. Its size gives it economic moat, its payout history oozes consistency (with strong franking), and its banking model has longer-term pricing power. While its dividend yield is slightly lower than Coles’, the payout per share is much higher and has grown considerably over decades.

Coles is no slouch – I really like the company for its dependable earnings, and its share price has outperformed CBA over the past year. But at a noticeably higher P/E ratio and with much slower historical dividend growth, I see CBA as a more attractive blend of yield, scale, and proven resilience, especially if income and peace of mind are top priorities in the run-up to retirement.

That said, if steady capital growth and lower bank sector exposure appeal more, Coles is by no means a bad alternative. But for a large, set-and-forget holding at age 50, my pick would be Commonwealth Bank.

The post CBA vs Coles shares: Which is the better buy at age 50? appeared first on The Motley Fool Australia.

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• Wesfarmers vs Coles: Which dividend share is better for retirees?
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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 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. 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.

National Australia Bank Ltd (ASX: NAB) shares may be one of the most popular choices for passive income on the ASX.

As one of Australia’s largest banks, the business has strong economic power that many other companies don’t have. The size of the business and the strength of its balance sheet give the bank pleasing advantages.

Of course, generating strong profits means the bank can pay a good dividend to investors. But, after multiple RBA rate rises, what do experts think could happen with the NAB dividend in the year ahead?

Projection for owners of NAB shares

The bank’s 2026 financial year has just ended, with it being the financial period ending 30 September 2026. Although we haven’t seen the result yet, we can now look ahead to what may happen in the 2027 financial year.

According to the projection on CMC Invest, the ASX bank share is projected to pay an annual dividend per share of $1.70 in FY26 – that’s the year that has just gone.

But we want to look at the dividend payment that could happen for the financial year ahead.

Based on CMC Invest’s projection, the business is forecast to slightly increase its shareholder payout to $1.705 per share. That would represent a year-over-year increase of 0.3%, not much, but better than nothing.

At the time of writing and the current NAB share price, that works out to be a cash dividend yield of 4.4% excluding franking credits. If we include the franking credits as part of the potential passive income, then the grossed-up dividend yield becomes 6.3%.

What would a $15,000 investment in the ASX bank share do?

At the time of writing, if someone were to invest $15,000 into NAB shares, they’d be able to buy 390 shares.

With that investment in the ASX bank share, those shares could unlock $664.95 of dividend cash and $949.93 of grossed-up dividend income, including franking credits.

In my view, that’s a solid passive income payout to start with.

Is this a good time to invest in NAB shares?

Time will tell how the company performs in the 2026 financial year, but given expectations and the current economic environment, analysts are divided on the business.

According to CMC Invest, 10 analysts have rated the business in the last three months. Three of those rating calls were a buy, four were a hold, and three were a sell.

The average price target for those 10 ratings was $39.13, suggesting a slight rise over the coming year at the time of writing.

However, the most pessimistic price target is $29.08, implying (at the time of writing), a decline of 24% over the year ahead. Meanwhile, the most optimistic price target is $48.64, suggesting a possible rise of 26% over the next 12 months.

Time will tell whether analysts are right to be pessimistic or optimistic about the ASX bank share. But with NAB’s slow growth in mind, there are other ASX shares I’d concentrate on first.

The post If I invest $15,000 in NAB shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

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• How much superannuation do I need to earn $56,000 per year in passive income?
• Fortescue vs National Australia Bank: Which ASX blue chip is the better buy this month?

Motley Fool contributor Tristan Harrison 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.

Xero vs Megaport shares: Which tech stock is right for a 20-year-old investor?

If you’re a young Aussie investor looking to pick up your next tech stock, Xero Ltd (ASX: XRO) and Megaport Ltd (ASX: MP1) are two homegrown names you might have your eye on. Both have built innovative platforms and attracted plenty of attention — but they couldn’t be more different under the hood. Here’s how their investment cases stack up.

The case for Xero

Xero is a New Zealand-based software company specialising in cloud-based accounting software for small to medium-sized businesses. Since launching in 2006, Xero has helped transform the way businesses manage their finances, jumping onto the software-as-a-service wave early and expanding its market presence globally. As of its company profile, Xero is recognised as a leader in cloud accounting, offering flexible, subscription-based plans designed for business owners.

When I look at Xero’s key numbers, a few things stand out. It sports a sizeable market cap of $9.57 billion, making it a heavyweight in the Aussie tech scene. The company’s P/E ratio sits at 49.87 — definitely on the higher end, but not unheard of for high-growth tech firms. It has reported earnings per share (EPS) of -0.158, which is in the red. Xero does not currently pay a dividend, which means all profits and cash flow are being reinvested back into the business.

Lastly, Xero’s share price has taken a solid step back this year, with a Year To Date (YTD) return of -51.1%. That’s a big fall and could make it look like a bargain to some, but it’s also a reminder that tech investing can be volatile, especially if growth expectations reset.

The case for Megaport

Megaport operates in a different corner of the tech world, focusing on network-as-a-service infrastructure. It provides a global platform that lets customers connect to more than 1,100 data centres in 31 countries, mostly to link into major cloud providers like AWS, Azure, and Google Cloud. Customers can spin up connections across continents in minutes, and Megaport has been hustling into new frontiers, such as the AI compute infrastructure space (according to its most recent public description, via its 2025 acquisition of Latitude.sh).

Fundamentally, Megaport’s market cap is $5.01 billion, so while it’s no minnow, it’s notably smaller than Xero. Its reported P/E ratio is a whopping 370.00, which would normally make my eyes water — but its EPS is also negative (-0.218), so there’s a clear disconnect here. Megaport hasn’t paid a dividend either, and for a company still likely prioritising market growth and new ventures, that’s no surprise. However, what really jumps out is its YTD return: up 78.7%. That’s the kind of meteoric rise that puts a lot of eyes (and speculation) on a stock.

Valuation comparison

There are a handful of metrics we can line up directly:

Metric	Xero	Megaport
Market Cap	$9.57 billion	$5.01 billion
P/E Ratio	49.87	370.00
Dividend Yield	0.00%	0.00%
EPS	-0.158	-0.218
YTD Return	-51.1%	78.7%

Both companies are unprofitable on a trailing basis (negative EPS), yet Xero’s P/E is at least tied to rapid revenue growth expectations, while Megaport’s eye-watering P/E suggests enthusiasm around its growth story — or perhaps a stretch in valuation. Note: Megaport’s reported P/E ratio may be based on a different earnings measure (e.g. underlying or forward earnings) than the EPS figure shown, which is why they may appear inconsistent.

No dividends are currently offered by either stock, so this is firmly a growth play either way.

Recent share price momentum

Comparing recent share price performance up to 7 October:

• Xero closed at $56.10 on 7 Oct 2026, posting a small gain of 0.7% for the day, but its YTD return sits at -51.1% — a big comedown.
• Megaport finished at $21.07 on the same date, up 0.29% for the session, and boasts a 78.7% YTD gain — a rocket year-to-date.

Which is the better buy?

If I were 20 and weighing up where to invest next, my pick would be Megaport. Here’s why: the company is delivering massive price momentum, has tapped into surging demand for cloud connectivity, and its recent move into AI infrastructure is the sort of “future-facing” pivot that could pay off over time. Yes, the P/E ratio appears sky high and the company still runs at a loss (as does Xero), but the market clearly has faith in Megaport’s growth runway right now.

Xero is a quality business with a strong competitive position and larger scale, but its negative YTD return and lack of short-term momentum make it less exciting for a young investor looking for the next wave. Both stocks carry the risks typical for high-growth, unprofitable tech names, and neither pays a dividend — but for me, Megaport’s innovation and year-to-date surge give it the edge for those keen on growth and disruption. Just don’t bet more than you’re prepared to see fluctuate — the excitement factor cuts both ways.

The post Xero vs Megaport: Which ASX tech stock suits young investors better? appeared first on The Motley Fool Australia.

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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 Megaport and 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. 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.