Commonwealth Bank of Australia (ASX: CBA) shares have been incredibly choppy throughout the first six months of the year.

The banking giant’s share price has swung wildly between $147.22 and $183.52 per share as it has endured multiple headwinds from rising inflation, higher interest rates, geopolitical tensions in the Middle East, and a reversal in investor confidence.

Analysts are pretty bearish about CBA’s outlook, too. In fact, many have considered the banking giant’s shares significantly overvalued relative to its peers for some time now. 

TradingView data shows that 14 of 16 analysts have a sell or strong sell rating on CBA shares. The other two have a hold rating.

The average $126.36 target price implies a potential 23% downside ahead, at the time of writing. But some think the shares could crash up to 45% to as little as $90 each.

If analyst predictions are anything to go by, we can assume that the peak has passed for CBA shares.

It’s not all about share price gains and losses, though. CBA is also a popular choice for income-seeking investors.

Here’s why.

CBA shares offer investors a great passive income opportunity

CBA is a cyclical stock, but has the added nuance of offering some strong defensive qualities. The banking giant is huge in scale and dominates the ASX banking sector. 

At the time of writing, CBA is the largest bank listed on the ASX with a market capitalisation of around $278 billion. It is also the second-largest company listed overall, second only to BHP Group. 

This market dominance means CBA can be more resistant in times of economic volatility versus some of its smaller mid-tier peers.

The scarcity of quality stocks on the ASX also means that worried investors sometimes place major companies like CBA on a pedestal. 

The bank is also often viewed as a safe haven when markets soften overall. This is regardless of whether the business fundamentals support any sustained growth. 

This is perhaps why CBA shares have remained relatively buoyant this year, despite broker analysis and forecasts of significant downside.

The advantage, of course, is that this buoyancy is fantastic news for investors earning a passive income from CBA shares.

What does CBA pay its shareholders?

CBA has a long history of paying regular fully-franked dividends twice per year alongside its financial results. 

And it pays its shareholders a good rate, too. 

It most recently paid a fully-franked interim dividend of $2.35 per share in late-March.

Looking ahead, the bank is forecast to pay a total dividend of $5.15 per share to shareholders in FY26. It is then expected to pay around $5.45 per share in FY27.

At the time of writing, this translates to a forward dividend yield of around 3.1% for FY26. For FY27, the forward dividend yield is about 3.3%.

The post Are CBA shares a good buy for passive income? appeared first on The Motley Fool Australia.

More reading

• Why US stocks have hit record highs while ASX shares have barely risen in 2026
• Want a pay rise? These ASX dividend shares keep delivering
• How much passive income can I make from ASX shares?
• Why this fundie is overweight CSL and underweight CBA shares
• 3 ASX blue chip shares to buy and hold for the next 20 years

Motley Fool contributor Samantha Menzies 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.

Telstra Group Ltd (ASX: TLS) is not the kind of ASX share that usually gets investors excited.

Some businesses are built around disruption, new products, and big swings in expectations. Telstra is built around something more basic: keeping people connected. For investors heading into the new financial year, I think that simplicity could be attractive.

More than a phone company

Telstra’s core strength is that its services sit inside everyday life.

Mobile connectivity now touches almost everything. People use it for banking, work, maps, security, entertainment, shopping, travel, messaging, and managing households. Businesses use it to process payments, communicate with customers, support staff, connect devices, and keep operations moving.

That gives Telstra a level of relevance that is easy to take for granted.

I also think the mobile network remains the company’s strongest advantage. Network quality can still influence customer decisions, especially outside major city centres or among users who rely heavily on their phones. Telstra has spent years building scale, coverage, and brand trust in this part of the market.

That does not make the business exciting in a fast-growth sense. But it does give Telstra a role that can remain valuable through different economic conditions.

Income with a steadier profile

Another attraction is income. Telstra has become a cleaner dividend story over recent years, and I think that can make it useful for investors who want dependable cash flow without taking on the same level of cyclicality as miners or discretionary retailers.

The company is still exposed to competition, regulation, capital spending, and customer price sensitivity. But telecommunications is a service people usually keep paying for, even when household budgets are stretched.

That resilience can be useful in an income portfolio.

Why I’d consider buying

For me, the investment case comes down to usefulness.

Telstra does not need to reinvent daily life to be valuable. It needs to keep providing the infrastructure and services that daily life increasingly relies on.

There is also something attractive about owning a business that can quietly compound through pricing discipline, customer retention, network leadership, and disciplined investment.

There are risks to consider. Mobile competition can increase quickly, and capital expenditure is part of the industry. But I think Telstra’s scale gives it a strong starting point.

Foolish takeaway

Telstra will rarely be the loudest growth story on the ASX.

Yet I think it can still be a worthwhile share to own heading into FY27. The business sits inside a service people use constantly, has a leading mobile position, and offers a dividend profile that many investors may find appealing.

In a market where some shares need a lot to go right, Telstra’s appeal is much simpler. It provides something essential, keeps investing in its network, and gives shareholders exposure to a steady stream of cash flow. That can be more powerful than it first sounds.

The post Why Telstra shares could be a top ASX buy for the new financial year appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I’d buy and hold for my kids
• Where should I invest inside SMSFs instead of property?
• 3 ASX stocks that should be in every retirement portfolio 
• Here’s what brokers tip for Telstra shares over the next 12 months
• Want passive income? These 3 ASX dividend stocks could deliver

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A $100,000 portfolio deserves a proper plan. But what if you don’t like picking stocks?

Well, the good news is that there is another way.

With a small number of ASX exchange traded funds (ETFs), it is possible to build a balanced portfolio which offers exposure to global markets, long-term growth themes, and defensive consumer spending.

Here is one way to think about it.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF could be used as the growth engine of the portfolio.

This fund gives investors exposure to the Nasdaq 100, which is home to many of the world’s most influential technology and innovation-led companies.

Rather than trying to pick the next winner in artificial intelligence, cloud computing, software, chips, digital advertising, or consumer technology, this ETF gives investors a broad slice of the companies already shaping those areas.

It is a higher-growth option and will likely come with more volatility than a broad global market fund.

But that volatility is the price investors often pay for exposure to companies with large addressable markets, powerful platforms, and the ability to scale across the world.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The Vanguard MSCI Index International Shares ETF could sit at the centre of the portfolio.

This fund gives investors exposure to a large basket of companies listed across developed markets outside Australia.

That can include businesses from the United States, Europe, Japan, Canada, and other major markets.

The Vanguard MSCI Index International Shares ETF helps spread money across many countries, sectors, currencies, and companies. It gives investors access to global healthcare, financials, industrials, consumer goods, technology, and other parts of the international share market.

That makes it useful as the core holding. After all, a portfolio built only around the Australian share market can end up heavily exposed to banks, miners, supermarkets, and a small group of large local companies.

iShares Global Consumer Staples ETF (ASX: IXI)

Finally, the iShares Global Consumer Staples ETF could add a defensive layer to the portfolio.

This fund invests in global consumer staples companies. These are businesses selling products people keep buying through different economic conditions, such as food, beverages, household goods, personal care products, and other everyday essentials.

It is tied less to excitement and more to repeat demand. People may cut back in difficult times, but they still buy groceries, toothpaste, cleaning products, packaged food, and basic household items.

A fund like this can help balance a portfolio that already has exposure to technology and broader global markets.

It will still move with share markets, but its underlying companies tend to be linked to steadier spending habits than many growth sectors.

Constructing this ASX ETF portfolio

One possible $100,000 portfolio with these funds could look like this.

$40,000 in the Betashares Nasdaq 100 ETF for strong growth potential, $30,000 in Vanguard MSCI Index International Shares ETF for broad global exposure, and $30,000 in the iShares Global Consumer Staples ETF for defensive consumer staples exposure

That mix gives investors a global core, a technology-led growth engine, and exposure to everyday consumer spending.

The post How to build a $100,000 ASX ETF portfolio appeared first on The Motley Fool Australia.

More reading

• Chasing early retirement at 55? These ASX shares and ETFs could help
• Why US stocks have hit record highs while ASX shares have barely risen in 2026
• How to invest $500, $5,000, and $50,000 on the ASX
• The retirement ETF portfolio I’d add to super
• 3 ASX stocks that should be in every retirement portfolio 

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 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 Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.