One of the things I love about long-term investing is the potential for compounding to turn relatively modest growth into something much more substantial.

And this doesn’t just apply to ASX share prices. It can also apply to dividend income.

For example, if a company increases its dividend by approximately 7.2% annually, its payout will double over 10 years.

That means an investment generating $1,000 in annual dividends today could potentially provide $2,000 in 2036, without the investor having to buy another ASX share.

Of course, achieving that requires a business capable of growing its earnings and cash flows consistently enough to support those increases.

So, I decided to look for ASX shares that I believe could potentially double their dividends over the next decade.

Here are five that caught my attention.

Coles Group Ltd (ASX: COL)

The first ASX share I would consider is Coles. I think the supermarket giant has many of the qualities that make a good long-term dividend investment.

It operates in an industry where demand is relatively dependable, with millions of Australians visiting its stores every week to buy everyday essentials.

But what I like most is the opportunity to improve profitability. Coles has invested heavily in automated distribution centres, technology, and improving its supply chain. These investments are already helping the company become more efficient, and I believe there are further benefits to come.

Its FY 2026 results were encouraging, with underlying net profit increasing by approximately 13%. The company also paid fully franked dividends totalling 78 cents per share for the year.

If that payout doubled by 2036, shareholders would be receiving $1.56 per share annually.

I think this makes Coles a good starting point, but I believe some of the other companies on my shortlist have the potential to deliver even greater dividend growth.

In fact, a couple could be paying substantially more to shareholders by 2036 if their ambitious growth plans deliver.

So, which other ASX shares do I believe could double their dividends over the next decade?

Dicker Data Ltd (ASX: DDR)

Another ASX share I believe could potentially double its dividends by 2036 is Dicker Data.

The company distributes technology products, software, and cloud solutions to thousands of Australian and New Zealand businesses through its reseller network.

I like this business because technology spending is becoming increasingly important to organisations of all sizes. Whether companies are upgrading computers, moving to the cloud, or strengthening cybersecurity, Dicker Data is well positioned to benefit.

And there is evidence that demand remains strong. During the first half of FY 2026, Dicker Data increased its gross revenue by 14.2%, while net profit jumped 54.1%.

The company has also announced plans to acquire Sektor Group, which will give it an established presence in parts of Southeast Asia and expand its range of technology products. I think this could open up additional growth opportunities over the coming decade.

Dicker Data currently pays quarterly dividends of 11.5 cents per share, equivalent to 46 cents annually if maintained. Doubling that annualised amount would mean shareholders receiving 92 cents per share in 2036.

While its relatively high dividend payout ratio means earnings growth will be important, I believe Dicker Data has the potential to deliver it.

REA Group Ltd (ASX: REA)

The next ASX share I would consider is property listings company REA Group. I think this is one of the best businesses on the Australian share market, largely because of the powerful competitive position enjoyed by its realestate.com.au platform.

Its enormous audience makes it an essential advertising destination for real estate agents, which in turn helps attract even more property buyers and sellers.

And that gives REA considerable pricing power. As agents become increasingly dependent on its platform, the company can continue introducing higher-value advertising products and services.

Importantly, REA doesn’t necessarily need property listings to grow substantially to increase its earnings. That was demonstrated in FY 2026, when its Australian residential revenue increased by 12%, despite relatively flat listing volumes.

Its fully franked annual dividend also increased by 20% to $2.97 per share. If REA could sustain average dividend growth of around 7.2%, that payout would reach approximately $5.94 by 2036.

I wouldn’t be expecting 20% growth every year, but given its competitive advantages and opportunities to increase revenue per listing, I think doubling its dividend is achievable.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is another ASX share that I believe deserves a place on this list. The enterprise software provider supplies essential systems to councils, universities, government organisations, and businesses.

I like the stickiness of its offering. Once customers have adopted TechnologyOne’s software, switching to another provider can be expensive and disruptive. This helps the company retain customers and generate recurring revenue.

And as its customer base expands, I believe profitability could grow considerably. In fact, TechnologyOne reported annual recurring revenue of $598 million at the end of March 2026, representing an increase of 17%.

But management isn’t resting on its laurels. It is targeting more than $1 billion in annual recurring revenue by FY 2030.

That provides a strong foundation for future earnings and dividend growth, particularly as the company benefits from the economies of scale of its cloud software platform.

WiseTech Global Ltd (ASX: WTC)

A final ASX share I think has a lot of dividend growth potential is WiseTech Global.

The logistics software company is best known for CargoWise, which helps freight forwarders and logistics providers manage complex international supply chains.

I think the long-term opportunity here is significant. Global logistics remains a complicated industry, and companies are increasingly turning to technology to improve efficiency and manage their operations.

CargoWise is deeply embedded in many customers’ businesses, making it difficult to replace and providing WiseTech with recurring revenue.

In FY 2026, WiseTech generated US$410.7 million in free cash flow, an increase of 43%. I believe continued growth in CargoWise and successful integration of its acquisitions could support significantly higher earnings and dividends by 2036.

However, WiseTech arguably carries greater execution and governance risks than some of the other companies on this list.

Its borrowings following the e2open acquisition also mean debt reduction will compete with dividend growth for cash.

Nevertheless, with its relatively low dividend payout ratio and significant growth opportunities, I believe its dividends could potentially more than double over the next decade.

Which would I choose?

All five ASX shares offer different paths to higher dividend income, but I think REA Group and TechnologyOne stand out for their combination of competitive advantages, recurring revenue, and long-term growth potential.

Neither necessarily offers the highest dividend yield today. However, if they can continue growing earnings at attractive rates, I believe their dividends could be substantially larger in 2036.

The post I looked for ASX shares that could double their dividends by 2036. Here's what I found appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in REA Group, Technology One, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended Dicker Data and WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) shares have been on my buy list for some time, and its latest quarterly update has given me a few more reasons to remain positive.

There were some challenges during the quarter, but I also found several encouraging developments that I think investors should be paying attention to.

Here are three reasons I would be happy buying BHP shares today.

Higher commodity prices could make a big difference

One thing that caught my attention in BHP’s latest update was the prices it received for its commodities.

Copper production fell 19% compared with the same quarter last year, reflecting lower ore grades, maintenance, and operational disruptions.

Yet the average price BHP received for its copper increased by an impressive 53%.

Steelmaking coal prices were also considerably stronger, increasing 34% year on year.

I think this is worth considering because mining profits depend on much more than production volumes.

When commodity prices rise, miners can generate significantly more revenue from the same amount of production, potentially delivering substantial earnings growth.

Of course, costs also influence profitability, and prices can fall just as quickly as they rise. But with BHP maintaining its full-year production guidance, I think the stronger pricing environment could provide meaningful support for earnings if it continues.

There could be more value in its existing assets

Another thing I like about BHP is that it still has considerable opportunities to grow production from assets it already owns.

Its latest announcement provided an interesting example at Olympic Dam in South Australia.

BHP reported a substantial increase in the mine’s mineral resource base, including a newly classified underground resource that could potentially support different mining methods in the future.

I think this highlights something important about owning a company with large, established mining operations.

As technology improves and further exploration is completed, opportunities can emerge to extract more value from deposits that have already been producing for decades.

BHP is also progressing plans to substantially increase copper production across its South Australian operations by 2035.

There is a lot of work still to be done, and mineral resources do not automatically become economically recoverable reserves.

Nevertheless, I like that BHP has opportunities to expand its business by building on its existing infrastructure and geological knowledge.

Important investments are getting closer to delivering results

My third reason to buy BHP shares is the progress it is making on projects that could start contributing over the next couple of years.

Its Jansen development in Canada is a good example. After years of investment, Stage 1 is now 87% complete, with first production expected in mid-2027.

I think reaching that milestone could be significant, as attention gradually shifts from construction spending towards production and eventually earnings.

There are also developments underway in Western Australia, including infrastructure improvements designed to support higher iron ore volumes and improve operational efficiency.

These projects won’t all deliver immediate financial benefits, but I like that BHP has several investments approaching important milestones.

Delivering them on time and within budget will be important, particularly given the capital involved.

Foolish takeaway

I would be happy buying BHP shares around $59. Its earnings will always be influenced by commodity prices, and there will inevitably be setbacks along the way.

But I think there is more happening at BHP than investors might appreciate from a quick look at its quarterly production figures.

The company has opportunities to improve its earnings, make better use of its existing assets, and bring major investments into production. I think that gives shareholders plenty to look forward to over the coming years.

The post 3 reasons I would buy BHP shares today appeared first on The Motley Fool Australia.

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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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With 2027 approaching, I’ve been thinking about where some of the best opportunities for long-term investors might be.

There are several areas of the global share market that I think have particularly promising prospects, and Vanguard has some excellent exchange-traded funds (ETFs) for gaining exposure to them.

Here are three I would be happy buying today.

Vanguard Global Technology Index ETF (ASX: VTEK)

One thing I’m particularly interested in heading into 2027 is how businesses will continue investing in technology.

Artificial intelligence (AI) has attracted enormous attention, but I think the opportunity extends well beyond the companies developing AI models.

Businesses are also investing in more powerful computing infrastructure, better software, and the systems needed to manage growing amounts of information.

The VTEK ETF offers a way to participate in that spending across several parts of the technology industry.

It holds approximately 300 technology stocks from developed and emerging markets, giving investors exposure to businesses involved in everything from semiconductors to enterprise software.

I like that approach because it reduces the need to predict which individual technology company will become the biggest winner.

Of course, technology shares can be expensive, and investors may face considerable volatility if earnings disappoint.

But I think the long-term potential of this industry makes the VTEK ETF a strong buy for 2027 and beyond.

Vanguard S&P 500 US Shares Index ETF (ASX: V500)

Another Vanguard ETF I would buy for 2027 is the V500 ETF.

What I like about America’s biggest businesses is how many of them have become part of everyday life around the world. Whether it’s the software people use at work, the payment networks handling transactions, or the healthcare products people rely on, American companies have built enormous international businesses.

That means investors can benefit from their global success through a fund focused entirely on the US share market.

The V500 ETF tracks the S&P 500 Index, providing exposure to approximately 500 leading American companies.

I think the combination of established businesses, innovative companies, and opportunities to reinvest profits makes this a compelling market to own over the long term.

US shares aren’t cheap across the board, and the index has significant exposure to large technology companies. Nevertheless, I would be comfortable buying the V500 ETF today and holding it for many years.

Vanguard FTSE Asia ex Japan Shares Index ETF (ASX: VAE)

The third Vanguard ETF I would consider is the VAE ETF. I think Asia offers some fascinating opportunities for investors willing to look beyond the US and Australian share markets.

For example, India has considerable scope for economic development as incomes rise and more consumers use modern financial services.

Taiwan and South Korea also play important roles in the global technology supply chain, while China remains a huge market with significant industrial and consumer businesses.

The VAE ETF provides exposure to approximately 1,400 stocks across Asian markets, excluding Japan.

There are risks, particularly around China’s economy, geopolitical tensions, and currency movements.

But I think the region has the potential to become an increasingly important contributor to global economic growth over the coming decades.

Foolish takeaway

I would be happy buying all three Vanguard ETFs ahead of 2027.

For me, I like being able to participate in some of the world’s most important businesses and economic developments without having to pick individual winners.

And with a long investment horizon, I think these funds could reward patient investors handsomely.

The post Why I rate these Vanguard ETFs as strong buys for 2027 appeared first on The Motley Fool Australia.

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• VGS vs V500: Which Vanguard ETF would I buy?
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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 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.