Woolworths Group Ltd (ASX: WOW) shares are back in favour.

On Thursday, the supermarket giant’s shares hit a 52-week high of $40.10.

That is a strong vote of confidence from the market, particularly after a difficult period for the retail sector more broadly.

Investors appear to be warming again to Woolworths’ defensive qualities, its scale, and the resilience of supermarket spending.

But after such a strong move, is there still value left for investors?

Why Woolworths remains attractive

Woolworths sits in one of the most dependable parts of the Australian economy.

Households may postpone major purchases when budgets are tight, but grocery spending is far harder to avoid.

That gives Woolworths a level of defensive strength that many ASX shares cannot match.

The company also has huge scale. Its supermarkets serve millions of customers each week, supported by a large store network, online operations, loyalty data, supplier relationships, and logistics infrastructure. That scale can be difficult to replicate.

But the valuation is no longer cheap

The main challenge is valuation. At current levels, Woolworths shares are trading on approximately 31 times expected FY 2026 earnings. This is based on forecast earnings per share of $1.30.

Looking ahead to FY 2027, analysts are expecting earnings per share of $1.48. That still places the stock on a forward price-to-earnings ratio of about 27 times.

Those are not bargain-level multiples. Investors are paying a premium for Woolworths’ defensive profile, reliable customer demand, and long-term market position.

That may be justified if earnings growth improves from here. But it also means there is less room for disappointment.

If margins come under pressure, competition intensifies, or sales growth slows, the share price could be vulnerable after reaching a 52-week high.

Woolworths also remains relevant for income investors. Analysts are expecting dividends of 99.5 cents per share in FY 2026 and $1.13 per share in FY 2027. This represents dividend yields of approximately 2.5% and 2.8%, respectively.

That’s not the largest dividend yield you’ll find on the Australian share market, but it is welcome income for investors.

Are Woolworths shares a buy?

Woolworths remains a high-quality ASX blue chip. Its role in everyday household spending, national scale, and strong customer position make it a business that many investors would be comfortable owning for years.

But at a 52-week high, the easy value case has faded.

I would argue that Woolworths looks more like a quality hold than an obvious bargain at today’s price, though long-term investors may still see appeal in its defensive earnings profile.

The post Are Woolworths shares still a buy at a 52-week high? appeared first on The Motley Fool Australia.

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• Woolworths shares vs Coles: Buy, hold, or sell these ASX giants?

Motley Fool contributor James Mickleboro has positions in Woolworths Group. 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.

If you are hunting ASX dividend shares to buy for your income portfolio in July, then read on.

That’s because Morgans recently named two that could be among the best to buy right now. Here’s what it is recommending to clients:

Accent Group Ltd (ASX: AX1)

The team at Morgans recently put a buy rating and 85 cents price target on this footwear retailer’s shares.

It made the move after the HypeDC and Platypus owner received an opportunistic takeover offer. It said:

Frasers Group has made an unconditional on-market cash takeover offer for AX1 at $0.65 per share, which represents no premium to the closing share price. We see this offer as opportunistic, given the weakness in the share price over the last 12 months (down 64%), and see scope for Frasers to revise its bid higher. We have made no changes to our forecasts, but have increased our target price to $0.85 (from $0.75) applying a lower discretionary discount. We retain our BUY recommendation.

With respect to dividends, Morgans expects Accent to reward its shareholders with fully franked payouts of 3.8 cents per share in FY 2026 and then 5 cents per share in FY 2027. Based on the current Accent share price of 72 cents, this would mean dividend yields of 5.3% and 6.9%, respectively.

Flight Centre Travel Group Ltd (ASX: FLT)

Morgans thinks that Flight Centre could be an ASX dividend share to snap up.

The broker recently put a buy rating and $14.80 price target on the travel agent’s shares. It said:

Given recent downgrades from other travel industry peers due to the conflict in the Middle East, FLT’s downgrade wasn’t a surprise. Given its balance sheet strength and depressed share price, a new up to A$200m share buyback was announced. We have made only minor changes to our forecasts given FLT’s guidance was broadly in line with our previous forecast.

While a peace agreement and eased travel restrictions are positive, we think 1H27 will still be challenging. We forecast a strong recovery in 2H27. If it wasn’t for this conflict, FLT would have had a great year given its results for the first nine months were strong. We are buyers of FLT because when operating conditions ultimately improve, both its earnings and share price will be materially higher.

As for income, the broker is expecting fully franked dividends of 40 cents per share in FY 2026 and then 48 cents per share in FY 2027. Based on its current share price of $12.06, this represents attractive 3.3% and 4% dividend yields, respectively.

The post 2 of the best ASX dividend shares to buy in July appeared first on The Motley Fool Australia.

More reading

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• Buy, hold, sell: Flight Centre, Supply Network, Lottery Corporation shares
• 2 ASX shares highly recommended to buy: Experts
• This ASX retail stock just rejected a takeover bid. Is a bigger offer coming?
• Here are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro has positions in Accent Group. 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 recommended Accent Group and Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I had $2,000 to invest in ASX tech shares, I would be looking for businesses with large markets, useful products, and room to become more important to customers over time.

Two shares that stand out to me right now are Xero Ltd (ASX: XRO) and Block Inc (ASX: XYZ).

They are in very different positions. Xero shares are trading around $67.85, just above their 52-week low of $65.00. Block shares have been performing far better and are trading around $109.88, which is within sight of their 52-week high of $127.88 and well above their 52-week low of $69.40.

Despite the different share price momentum, I think both are buys.

Xero shares

Xero is the more beaten-down of the two.

The small-business accounting software company has been through a rough period in the market, but I think the long-term opportunity remains attractive.

What I like about Xero is the role it can play in the daily financial life of a small business. Accounting software is the starting point, but the bigger opportunity is much broader than that.

A small business owner needs to send invoices, pay staff, manage tax, track cash flow, connect bank feeds, understand expenses, chase payments, and make decisions with limited time. If Xero can keep bringing more of those jobs into one easy-to-use platform, it can become more valuable to customers.

The company has already built a strong position in markets such as Australia, New Zealand, and the UK. The challenge is growing in the key US market, expanding its usefulness, and using automation and artificial intelligence in ways that save customers time.

The Xero share price being close to its 52-week low does not guarantee a quick recovery. But I think it gives patient investors a more attractive entry point into a high-quality software business with a large global opportunity.

Block shares

Block is a different type of fintech share. The company owns Square, Cash App, Afterpay, and other payment and financial technology businesses. That gives it exposure to merchants, consumers, payments, lending, point-of-sale tools, buy now pay later, and broader financial services.

What interests me is the way Block sits on both sides of commerce.

Square helps businesses accept payments and manage parts of their operations. Cash App is consumer-facing, giving users a way to send, spend, save, and access financial products. Afterpay adds another layer by connecting customers and merchants through instalment payments.

That creates a large ecosystem.

Block is no longer a tiny disruptor, but I still think it has growth potential if it can deepen its relationship with merchants and consumers. Payments are a huge market, and businesses increasingly want tools that help them manage sales, customers, inventory, staff, data, and finance in one place.

The share price has already recovered strongly from its low, so the setup is different to Xero. But I do not think a stronger share price should automatically scare investors away from a business that is executing well.

For me, Block offers exposure to the future of digital payments and small business financial tools.

Foolish takeaway

If I were investing $2,000 into these two ASX tech shares, I would probably split the money across both rather than trying to pick one clear winner.

The appeal is that both businesses are trying to become more useful in areas where money, payments, and small-business operations are increasingly digital. Xero is doing that through software for small businesses, while Block is doing it through a broader fintech ecosystem.

Both companies still need to execute, and both can be volatile. But I like the long-term customer problems they are solving. Small businesses need better financial tools, merchants need smarter payment systems, and consumers keep shifting toward digital ways to manage money. That gives both Xero and Block a large growth runway.

The post Why I’d buy Xero and Block shares with $2,000 appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Is the tech recovery finally here for Xero and Wisetech shares?
• Here are the top 10 ASX 200 shares today
• Why Benz Mining, Collins Foods, WiseTech, and Xero shares are shooting higher today
• US chip stocks were smashed overnight. So why are ASX tech shares rising?

Motley Fool contributor Grace Alvino 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 Block 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.