Commonwealth Bank of Australia (ASX: CBA) shares can divide investors.

Some see the bank as too expensive. Others see it as one of the highest-quality businesses on the ASX.

I understand both views.

But for long-term investors, I still think CBA shares are worth buying.

Why CBA keeps attracting investors

CBA has built a very strong position in Australian banking.

That does not just come from size. It comes from customer relationships, trust, deposits, digital tools, and a brand that millions of Australians interact with regularly.

Banking can look simple from the outside. Customers borrow, save, spend, and invest. But the best banks become deeply embedded in those financial decisions.

That is where I think CBA stands apart from Westpac Banking Corp (ASX: WBC) and the rest of the big four.

The bank has invested heavily in technology, digital banking, fraud prevention, payments, and customer experience. Those areas can help improve retention, reduce friction, and support better decision-making.

I also think CBA’s deposit franchise is a major advantage. A strong deposit base can be valuable when funding costs, interest rates, and competition shift.

The valuation challenge

The main issue with CBA shares is valuation.

Investors usually have to pay a premium for the bank, and that can limit future returns if earnings growth slows or sentiment changes.

There are also normal banking risks to watch, including mortgage competition, bad debts, regulation, and pressure on margins.

CBA is a high-quality bank, but it is still a bank. Its profits are tied to the health of households, businesses, property markets, and the wider economy.

That means investors need to be sensible with their expectations.

I would be more excited about buying during a market pullback. But I do not think long-term investors need to wait for a perfect entry point before starting a position.

Why I would still buy

My view is that CBA shares remain a buy because quality can compound for a long time.

The bank has one of the strongest retail franchises in the country. It has a leading digital position. It has scale. It has a trusted brand. And it has the financial strength to keep investing through different cycles.

Those advantages are hard to build quickly.

I also like that CBA can provide a source of dividends. For investors who want a core ASX blue-chip holding with a side of income, its shares remain attractive.

Foolish Takeaway

CBA shares are rarely the cheapest bank shares on the market.

I think the bank’s premium reflects a stronger franchise, better digital capabilities, and a level of customer trust that is hard to replicate.

There will be times when the valuation feels stretched, but for patient investors looking beyond the next year or two, I think CBA shares remain a high-quality ASX buy.

The post Are CBA shares still worth buying for the long term? appeared first on The Motley Fool Australia.

More reading

• How to build a successful ASX dividend portfolio
• What did the market look like 10 years ago? Here’s what’s changed for the ASX 200
• How much could the CBA share price rise in the next year?
• Do you want to earn passive income from your superannuation? Here’s a guide to get you started
• If I invest $10,000 in CBA shares, how much passive income will I receive in 2027?

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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.

The biggest dividend yield on the ASX can look tempting.

A higher yield means more income today, which can appeal to retirees, passive income investors, and anyone trying to make their portfolio work harder.

But a successful ASX dividend portfolio needs more than a big headline yield.

I think the goal is to own businesses that can keep paying income through different conditions, while still having enough growth to protect purchasing power over time.

Start with dependable earnings

The first thing I would look for is dependable cash flow.

Coles Group Ltd (ASX: COL) is one example of the kind of ASX dividend share I think can play a role.

Grocery demand is not exciting, but it doesn’t need to be. Households still need food, household essentials, and everyday products through good times and tougher periods.

Coles still faces competition, cost inflation, and pressure from value-conscious shoppers. Even so, the defensive nature of its sales can help support earnings and dividends.

Telstra Group Ltd (ASX: TLS) is another ASX share I would consider for a dividend portfolio.

Connectivity sits behind so much of daily life now. Mobile data, internet access, streaming, work, payments, and communication all depend on reliable networks.

Telstra still needs to keep investing in its network, and competition is always a factor. But I think its essential role in the economy gives it a solid place in an income-focused portfolio.

Add assets with different income drivers

I would also want income that comes from different parts of the economy.

Transurban Group (ASX: TCL) is one ASX share I think can fit that idea. Its toll road assets are used by millions of drivers, and traffic volumes can support long-term distributions.

The appeal here is different from a supermarket or telecommunications business. Transurban is more about infrastructure, urban growth, pricing, and long-life assets.

Property income can also have a place, as long as investors stay selective.

Charter Hall Long WALE REIT (ASX: CLW) gives exposure to a portfolio of long-leased properties. Long leases can provide more visibility over rental income, although investors still need to watch debt costs, property valuations, and tenant quality.

I would not want a dividend portfolio to depend too heavily on one sector. Mixing supermarkets, telecommunications, infrastructure, and property can reduce the pressure on any single income source.

Leave room for dividend growth

A dividend portfolio also needs businesses that can grow over time.

Commonwealth Bank of Australia (ASX: CBA) is rarely the cheapest bank, but it has one of the strongest franchises on the ASX. Its customer base, deposit strength, digital position, and brand can support long-term earnings and fully franked dividends.

Wesfarmers Ltd (ASX: WES) is another share I would consider, even though its yield is not usually the highest on the market.

I like the company’s ability to reinvest, improve its businesses, and allocate capital across different opportunities. Over time, that kind of growth can help dividends become much more rewarding.

This is where I think some income investors can go wrong. A lower yield today can still be attractive if the business has a better chance of increasing its payout over the next decade.

Foolish takeaway

I think a successful ASX dividend portfolio should be built around more than yield.

The best approach, in my view, is to combine defensive earners, infrastructure or property income, and companies that can grow their dividends over time.

That kind of mix can help investors collect income today without giving up on long-term growth.

The post How to build a successful ASX dividend portfolio appeared first on The Motley Fool Australia.

More reading

• Are CBA shares still worth buying for the long term?
• How I’d invest $10,000 in ASX shares for the next decade
• What did the market look like 10 years ago? Here’s what’s changed for the ASX 200
• 3 of the best ASX dividend stocks to supplement your superannuation
• Buy, hold, sell: L1 Long Short Fund, REA, Wesfarmers shares

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

A $10,000 investment can feel like a big decision.

That is why I think it helps to focus on businesses that can still look relevant many years from now.

Share prices will move around. Market sentiment will change. But over a decade, I want to own companies with strong positions, good leadership, and the ability to keep reinvesting for growth.

Three ASX shares I would consider buying with $10,000 are named below.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of the ASX shares I would be comfortable owning for the long term.

The company is often described as the owner of Bunnings and Kmart, which is true, but I think the bigger story is its culture and capital allocation.

Wesfarmers has a long record of building strong retail businesses, improving them over time, and moving capital into areas where it sees attractive returns.

Bunnings remains a dominant home improvement business, and Kmart has become a powerful value retailer. The company also has exposure to office products, health, data, digital initiatives, loyalty, and other growth options. That mix gives Wesfarmers more than one way to create value.

The valuation can look expensive at times, and I would always prefer to buy during a pullback. But with a decade-long mindset, I think quality deserves a premium.

ResMed Inc (ASX: RMD)

ResMed is another ASX share I would want in a long-term portfolio.

The company operates in sleep health and respiratory care, areas supported by significant global healthcare needs.

I like that ResMed is connected to both devices and ongoing patient support. Machines are important, but masks, accessories, software, data, and connected care can help create recurring revenue over time.

Sleep apnoea also remains underdiagnosed in many markets. If more people are tested and treated, ResMed has a long runway for growth.

Healthcare shares can go through difficult periods, and ResMed has faced investor concerns around competition and changing treatment options. But I think the long-term demand for better sleep and breathing care remains attractive.

Macquarie Group Ltd (ASX: MQG)

Macquarie is a very different kind of business. It is exposed to global financial markets, infrastructure, commodities, energy transition, asset management, and private markets. That means earnings can be lumpy from year to year.

I like that Macquarie has shown an ability to adapt as markets change. It has built a global platform across areas where expertise, relationships, and capital matter.

The world needs ongoing investment in infrastructure, energy systems, data centres, transport, and other real assets. Macquarie is positioned to play a role in many of those areas.

I would not expect smooth returns every year. But over a decade, I think Macquarie has the potential to keep finding attractive opportunities.

Foolish Takeaway

If I were investing $10,000 for the next decade, I would focus on businesses that can keep compounding through different conditions.

Wesfarmers brings retail discipline and capital allocation; ResMed provides exposure to global healthcare demand; and Macquarie adds a more flexible financial and infrastructure growth angle.

Together, I think they would give me a mix of quality, resilience, and long-term opportunity, which is what I believe a 10-year ASX portfolio needs.

The post How I’d invest $10,000 in ASX shares for the next decade appeared first on The Motley Fool Australia.

More reading

• How to build a successful ASX dividend portfolio
• 3 of the best ASX dividend stocks to supplement your superannuation
• Buy, hold, sell: L1 Long Short Fund, REA, Wesfarmers shares
• How much superannuation do you need to earn $5,000 a month in passive income?
• Here are the top 10 ASX 200 shares today

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