A new report from Kerry Craig, Global Market Strategist at J.P. Morgan Asset Management has reinforced the importance of targeting growth opportunities outside Australia. 

It’s very normal for investors to focus on equities in their own country, but Australians who only invest in the domestic market could be missing out on emerging themes and sectors internationally. 

Home bias 

According to the report, Australia represents just 1.4% of the global share market. 

However, many local investors allocate a large share of their portfolios to ASX-listed companies. 

This tendency is known as home bias and, while it’s understandable, it can also be limiting.

Investing close to home can feel reassuring: familiar brands, known businesses and local news you can follow. But familiarity is not the same as opportunity. Some of the world’s major growth themes are playing out in markets, sectors and companies that many Australian portfolios may not fully capture.

Craig also highlighted that being a small share of the global market wouldn’t matter as much if Australia was consistently outperforming. 

However, it made 9.4% annualised returns over the past 10 years, which sounds good until you realise that, over that same time period, the US returned 15.5% and Japan 14.5%. 

Major growth themes are global not domestic 

Additionally, it’s important to remember that buying equities is buying expected future earnings growth, and by focusing on Australia you could be missing out on some of the major growth themes in investing today. 

While the Australian market might have ridden high on the mining boom and trade links with China in the past, it has limited exposure to some of today’s key growth drivers.

Take Artificial Intelligence. The opportunity is not only in US technology companies, but in the infrastructure behind them, including semiconductors, memory, data centres, power generation and electricity networks. Much of that spending flows through global supply chains, including markets like Korea, Japan and Taiwan, while Australia has only limited exposure.

Looking past AI 

While AI is perhaps the most obvious example, it is far from the only growth opportunity sitting outside the Australian market. 

For example, Craig highlights that European countries are spending heavily to secure reliable and sustainable energy supplies. 

At the same time, geopolitical tensions are driving higher defence spending across Europe.

As well as missing out on growth opportunities, investors should be aware the Australian share market is relatively concentrated in financials like major banks, and materials/mining. There is nothing inherently wrong with these sectors or businesses, but a well-constructed portfolio often seeks to diversify its sources of return across industries, economies, business models and growth drivers.

How to target international shares

For investors seeking exposure to international equities, there are numerous ASX ETFs that track other markets. 

For example, the Betashares Capital – Asia Technology Tigers ETF (ASX: ASIA) targets Asian technology companies. 

It has risen more than 60% in the last 12 months. 

Another popular fund is the BetaShares Nasdaq 100 ETF (ASX: NDQ) which targets the largest non-financial companies listed on the Nasdaq market.

For European exposure, there is the BetaShares Europe ETF – Currency Hedged (ASX: HEUR) which provides exposure to Europe’s largest companies that generate a substantial portion of their revenues outside the Eurozone.

The post Why it’s vital for investors to look to international shares for growth: Expert  appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BetaShares Europe ETF – Currency Hedged, BetaShares Nasdaq 100 ETF, and Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you’re looking for good ASX dividend stocks, it can pay to check out the various funds run by Wilson Asset Management.

They have a number of funds listed on the ASX, including WAM Income Maximiser Ltd (ASX: WMX), which pays out monthly, WAM Microcap Ltd (ASX: WMI), which is currently paying a trailing dividend of 7.1%, and WAM Active Ltd (ASX: WAA).

Good news for this ASX dividend performer

Today, I’m going to focus on WAM Active because it recently reported strong investment returns, which have translated into a strong final dividend and a special dividend, both of which are still on the table, with record dates much later this year.

WAM said in its recent statement to the ASX that its investment portfolio increased by a record 75.5% in the year to the end of June, outperforming the Bloomberg AusBond Bank Bill Index (Cash) and the S&P/ASX All Ordinaries Accumulation Index by 71.6% and 69.8%, respectively.

Chairman Geoff Wilson said regarding the result:

FY2026 is the strongest year in WAM Active’s history since the Company was established in January 2008. This record result reflects the strength of WAM Active’s disciplined and flexible investment strategy, outstanding stock selection and active portfolio management. We remained focused on delivering strong long term returns and a growing stream of fully franked dividends for shareholders.

The WAM board declared a fully-franked final dividend of 3.2 cents per share and a special dividend of 2 cents per share.

The ex-dividend dates for the fund’s ordinary dividend and special dividend are 17 November and 4 December, respectively, meaning there’s plenty of time to buy if you’re keen on those dividends.

So, let’s look at our $1,000 target. In order to reap this from the upcoming dividends, you’d need to hold 19,230 WAM Active shares.

It’s also useful to look at it from a full-year perspective.

WAM Active will pay a total of 9.4 cents per share, fully franked over the full year, including the recently declared dividends.

That would translate to $1807.62 in dividends, or as the company said in its recent statement, a fully-franked dividend yield of 8.6% and a grossed-up dividend yield of 12.3%.

While past performance is not a predictor of future performance where investing is concerned, that’s an impressive effort over the past year by any measure.

Fund invests into major macroeconomic themes

The fund’s lead portfolio manager, Oscar Oberg, explained that the fund’s outperformance was driven by exposure to four key themes: critical minerals, electrification and grid infrastructure, precious metals, and artificial intelligence (AI).

He added:

Equity markets over the 2026 financial year were characterised by elevated volatility, rapid shifts in macroeconomic expectations and pronounced rotation across sectors and themes. Changes to interest rate outlooks, geopolitical developments and the accelerating AI adoption contributed to periods where company fundamentals were often overshadowed by broader market positioning. These conditions created dislocations across parts of the market, particularly in smaller and less well-covered companies, providing opportunities for the investment team to identify mispriced securities using WAM Active’s market-driven approach.

The post This ASX dividend stock could pay me $1,000 this year. Here’s how many shares I’d need appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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.

The ASX is well known for its abundance of high-quality dividend shares.

Investors chasing reliable, fully franked income have plenty to choose from on the ASX right now.

Here are three shares worth a look for a passive income portfolio.

National Australia Bank Ltd (ASX: NAB)

National Australia Bank is one of the big four lenders and remains a core income holding for many Australian portfolios.

The bank pays a fully franked dividend of 4.3% (not including franking credits). What’s more, its valuation typically sits at a discount to sector leader Commonwealth Bank.

This gives income investors a comparatively attractive entry point among the majors.

NAB’s earnings are underpinned by home lending, business banking, and a large deposit base. All of these support a stable dividend through most parts of the economic cycle.

Bank dividends can come under pressure during a serious credit downturn, so investors should keep an eye on bad debt trends and net interest margins.

Telstra Group Ltd (ASX: TLS)

Telstra is the classic Australian dividend share, built on the country’s largest mobile and fixed line network.

The telco generates highly predictable, subscription-style revenue from millions of customers. This has historically supported a consistent, largely franked dividend.

Currently, Telstra’s dividend yield stands at 4.10% (not including franking credits).  

Telstra has also been investing in infrastructure monetisation, including its InfraCo assets.

Management has flagged as a way to unlock further shareholder value over time.

The main risks are intense mobile competition from Optus and TPG, and the capital intensity of maintaining and upgrading network infrastructure.

Wesfarmers Ltd (ASX: WES)

Wesfarmers owns a portfolio of well-known Australian retail and industrial brands, including Bunnings, Kmart, and Officeworks.

Bunnings in particular has proven remarkably resilient through multiple economic cycles, giving the group a defensive earnings base that supports steady dividend growth.

Wesfarmers has also been diversifying into lithium and healthcare, adding growth optionality alongside its retail core.

The shares typically trade at a premium multiple given the quality of the underlying businesses. Investors are therefore paying up for that consistency rather than buying deep value.

Foolish Takeaway for ASX dividend shares

NAB, Telstra, and Wesfarmers each offer a different flavour of passive income, from banking to telecommunications to retail.

Combining shares from different sectors can help smooth out portfolio income if one industry hits a rough patch. Meanwhile, franking credits add a further boost for local investors.

For ASX investors looking to generate substantial passive income through ASX dividend shares, they should look no further than these three Aussie companies.

The post 3 ASX dividend shares I’d buy for passive income right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven 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 Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra 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.