Commonwealth Bank of Australia vs AMP shares

If you’re considering Commonwealth Bank of Australia (ASX: CBA) versus AMP Ltd (ASX: AMP) shares for passive income, you’re not alone. Both are well-known names in Aussie financial services, but they stand in very different corners of the market. Let’s break down where these two fit in the ASX ecosystem, how their dividends compare, and which might better suit a 40-year-old investor searching for reliable income.

The case for Commonwealth Bank of Australia

Commonwealth Bank of Australia, or CBA, is the bank most Australians recognise. As one of the “big four” local banks, CBA offers everything from everyday banking to superannuation, insurance, funds management, and broking. Its huge customer base and geographic reach through Australia, New Zealand, Asia, and beyond make it a dominant force in Australian financial services.

What jumps out in the numbers? First, CBA has a massive market cap of $251.64 billion—this is financial muscle few can match on the ASX. Its dividend yield is 3.31%, and those dividends are fully franked at 100%, meaning investors benefit from the maximum tax credits. The trailing P/E ratio sits at 23.38, reflecting the bank’s premium status (and market confidence) but also suggesting investors pay up for its perceived stability.

The case for AMP

AMP, once one of the giants in Australian wealth management, is now a very different beast to CBA. AMP still delivers superannuation, insurance, and banking products, but in recent years has massively restructured—offloading large business units, entering joint ventures, and refocusing on its core services. AMP is aiming to restore its reputation and grow through a more focused wealth and banking platform.

What’s striking here is the smaller scale: AMP’s market cap is $6.13 billion, a small fraction of CBA’s. Yet, its shares have soared YTD, up 43.41%, likely helped by optimism around its ongoing turnaround. The dividend yield stands at 1.95%—lower than CBA—and dividends are only 20% franked, so the tax benefit for income-seekers is much lower. Its P/E ratio sits at 34.59, higher than CBA’s, which may reflect expectations for future growth, but could also indicate the market is willing to pay more for the turnaround story.

Valuation comparison

Here’s how the key numbers stack up side-by-side:

Metric	Commonwealth Bank of Australia	AMP
Market Cap	$251.64 billion	$6.13 billion
P/E Ratio	23.38	34.59
Dividend Yield	3.31%	1.95%
Dividend Franking	100%	20%
Dividend per Share (TTM)	$5.05	$0.05
Earnings per Share	6.517	0.074
Year To Date Return	-1.96%	43.41%

What stands out? CBA offers higher dividend yield and much fuller franking—critical if you’re relying on dividends for income in retirement or semi-retirement. AMP’s higher P/E and much lower dividend payouts, as well as only 20% franking, make it less attractive for passive income, at least on these numbers.

Recent share price momentum

Comparing recent share price performance up to 7 October:

• Commonwealth Bank of Australia closed at $150.37 on 7 Oct 2026, posting a -1.32% move that day and a YTD return of -1.96%.
• AMP closed at $2.54 on 7 Oct 2026, down 0.78% for the day but boasting a stellar YTD gain of 43.41%.

While AMP’s 2026 share performance has far outpaced CBA, its day-to-day volatility is also higher. CBA has delivered flat-to-slightly-negative returns YTD, but in the context of larger banks, that’s not unusual given macro conditions.

Which is the better buy?

If passive income is your goal—especially with franking credits to boost after-tax returns—I’d lean clearly toward Commonwealth Bank of Australia. The combination of a higher dividend yield (3.31% vs AMP’s 1.95%), fully franked payouts, and greater dividend reliability across many years all play in CBA’s favour. Its earnings, scale, and track record make it a mainstay for anyone seeking regular, tax-effective income.

AMP’s dramatic rebound in 2026 is eye-catching, but for passive income seekers, the thin yield, patchy franking, and the uncertainty of recent years don’t tick enough of the right boxes. AMP might suit those hunting for turnaround potential or capital gains. But for a 40-year-old after consistent, tax-friendly dividends—the sort that can help fund a comfortable lifestyle without too much risk—my pick would be Commonwealth Bank of Australia.

The post CBA vs AMP: Which is better for a 40-year-old investor seeking passive income? 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 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.

The REA Group Ltd (ASX: REA) share price has been one of the ASX’s best shares over the last two decades, but the last few years have seen a lot of volatility. Experts have given their view on whether it’s great value and could deliver good returns.

As the chart below shows, the REA Group share price has dropped by around 30% in the past year.

When valuations fall that much, it could be an opportunity to invest. Is that the case with the REA Group share price?

High-quality economic moat remains

Investors should keep in mind that the company’s competitive advantages with realestate.com.au seem to remain.

In every result, the business tells the market how much ahead of its nearest rival it is.

For FY26, the company said that 12.7 million people visited per month on average, with around half of that total exclusively using realestate.com.au.

It achieved 146.4 million average monthly visits, which was 104.5 million more monthly visits than the nearest competitor on average.

REA Group also reported that 5.2 million unique properties were tracked by their owner on realestate.com.au, up 15% year over year. It also noted 2.5 million average monthly realestate.com.au buyer enquiries, up 8% year over year, as well as a 22% year-over-year increase in realestate.com.au leads.

For another important business that REA Group owns, realcommercial.com.au saw 2.9 million people visit per month on average, 1.8 million more people than the nearest competitor.

It’s with these competitive and numerical advantages that REA Group is able to sustain its leadership. Buyers want to go where the most property listings are, most sellers want to advertise on the property portal with the most buyers – a self-fulfilling circle.

The above market dynamic allows REA Group to generate revenue, regularly increase prices, and earn strong margins.

In FY26, the company reported that core revenue grew 7% (on flat listings growth), thanks to ‘buy yield’ growth of 13%, core operating profit (EBITDA) excluding associates rose 12%, and core net profit rose 15%.

What could the REA Group share price do in the next 12 months?

The company is currently in a tricky situation following tax changes affecting investment properties, and interest rates are considerably higher. Currently, new national buy listings are expected to be “flat to down low single-digits” in FY27.

But the company is targeting operational margin expansion with low-double-digit, controllable residential buy yield growth, driven by an 8% premiere+ price rise and growth in add-ons. Operating costs are expected to increase in the mid-single digits for Australia and mid-to-high single digits in FY27.

According to CMC Invest, there have been 10 ratings on the company in the last three months. The average price target is $187.40, suggesting a potential rise of around 20% over the next 12 months.

If that rise does happen, I think it would likely be an ASX market-beating return. So, at the current REA Group share price, it could be one to consider. However, there may be ASX shares that could produce even greater returns.

The post How much could the REA Group share price rise in the next year? appeared first on The Motley Fool Australia.

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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.

Share prices change all the time, giving investors opportunities to buy and achieve strong returns. Experts have picked out some ASX shares that could deliver substantial returns.

Analysts tell investors what they think a business’ potential returns could be, along with a price target. The price target is the level analysts expect the share price to reach 12 months from the date of the investment rating.

Below are two ASX shares that experts think could deliver strong, potentially market-beating returns.

Regis Healthcare Ltd (ASX: REG)

Regis Healthcare is one of the largest aged care operators in Australia. It provides services to more than 10,000 older Australians through residential aged care homes, home care service hubs, day therapy, respite centres, and retirement villages.

According to CMC Invest, there have been six analyst ratings on the business within the last three months. The average price target is $6.08, implying that those six analysts collectively think the Regis Healthcare share price could rise by almost 40% over the next 12 months.

The Regis Healthcare share price has fallen around 30% since the end of August 2026 amid news that government funding is not going to rise as much as hoped in the year ahead, despite elevated inflation of costs.

To combat this, the ASX share is undertaking a range of initiatives to mitigate the margin pressures associated with government funding settings. Some of those ideas include increases to room prices, a rollout of higher everyday living fee (HELF) services, other revenue optimisation, and operational efficiency initiatives.

On top of that, there is the long-term tailwind of ageing demographics, which can increase the demand for aged care.

Based on the projection on CMC Invest, Regis Healthcare is currently priced at 18 times FY28’s estimated earnings at the time of writing.

Pinnacle Investment Management Group Ltd (ASX: PNI)

The other ASX share I want to highlight is Pinnacle. It says that it’s growing a diverse family of investment businesses (which Pinnacle calls affiliates).

While holding a stake in affiliates, it provides seed funding, global institutional and retail distribution, and industrial grade middle office and infrastructure services. By providing affiliates with quality non-investment services, Pinnacle enables them to focus on generating investment returns for clients.  

Some of the affiliates it’s invested in include Hyperion, Plato, Palisade, Resolution Capital, Solaris, Antipodes, Spheria, Firetrail, Coolabah, Pacific Asset Management, Life Cycle, and so on.

According to CMC Invest, there have been six analyst ratings on the business within the last six months. The average price target from those six analysts is $21.76, implying a potential 55% rise in the year ahead.

Volatility in the ASX share market and private credit sector may have impacted investor confidence, so a potential recovery in investor bullishness could help deliver a lot of the return. Time will tell how the uncertainty with private credit plays out for Pinnacle’s affiliate FUM.

According to CMC Invest, the business is valued at 16 times FY27’s estimated earnings.

The post 2 ASX shares tipped to grow up to 55% or more in the next 12 months appeared first on The Motley Fool Australia.

More reading

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• Pinnacle Investment Management reports FY26 profit and Metrics funds update
• 1 ASX dividend stock down 47% I’d buy right now
• 1 ASX dividend stock down 49% I’d buy right now

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