Buying ASX dividend stocks at cheap value makes a lot of sense. That’s why I think the business Universal Store Holdings Ltd (ASX: UNI) is very appealing after its 19% decline since late February 2026, as the chart below shows.

It may not be one of the most well-known dividend businesses out there, but I think it has significant potential. It’s a retailer of what it describes as premium youth fashion brands, including Universal Store, Perfect Stranger, and the CTC business (with the THRILLS and Worship brands). It has more than 120 stores across Australia.

Let me explain why it’s such an appealing ASX dividend stock today.

Great dividend track record

The ASX dividend stock began paying dividends to shareholders in 2021 and has continued to increase its annual payout each year since.

Universal Store’s latest result was the FY26 half-year result – it hiked its interim payout by 18.1% to 26 cents per share. I’m not expecting the company to continue increasing its payout at that pace every year forever, but it shows it is delivering excellent passive income growth for investors.

There are plenty of ASX blue-chip shares that have given investors a dividend reduction in the last five years, but Universal Store has not.

According to the projection on CMC Invest, the business is forecast to pay a dividend that equates to a grossed-up dividend yield of close to 8%, including franking credits, with further (but slower) growth projected for FY27 and FY28.

There are not many ASX dividend stocks with a yield of around 8% (or more) that are expected to grow their payout in high single-digit terms in the coming years.

Why this is a good time to buy the ASX dividend stock

The business is doing all the right things to grow its sales and earnings in a number of ways.

For starters, it’s achieving ongoing sales growth through both good like-for-like sales at existing stores and expansion of its store network.

Its FY26 retail sales through week 43 were solid. Universal Store delivered sales growth of 11.8%. Perfect Stranger’s like-for-like (LFL) sales grew 12.9%, while total sales growth came to 39.8%. CTC LFL sales increased 3.8%, while total sales increased 14.5%.

During FY26, Universal Store has opened four new stores and Perfect Stranger opened seven new stores.

The company expects total FY26 sales to grow by approximately 11.5%, while underlying operating profit (EBITA) could grow by 15.4%. As we can see, profit margins are expected to improve, which helps the bottom line grow faster, and this is what funds those rising dividends.

It has shown great skill at growing earnings and dividends over the years – I think this is a good time to invest in the ASX dividend stock, along with a few other names.

The post 1 ASX dividend stock down 19% I’d buy right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building lifelong passive income from the share market is not about finding the highest dividend yield today.

I think it is about building an engine that can keep producing cash for years, while also having the strength to grow over time.

That means investors need to think beyond this year’s income. They also need to think about dividend sustainability, reinvestment, inflation, diversification, and the quality of the businesses behind the payments.

Start with the right goal

The first step is deciding what the income is meant to do.

Some investors may want dividend income to help cover bills in retirement. Others may want to reinvest dividends for years before eventually using them. Younger investors may simply want to build an income stream that becomes more useful over time.

The strategy can look different depending on the goal.

For someone still building wealth, I think reinvesting dividends can be powerful. Each dividend can buy more units or shares, which can then produce more dividends in the future. Over long periods, that can help the portfolio gather momentum.

For someone already living off income, the focus may shift more toward reliability, balance, and having enough cash set aside so shares do not need to be sold at a poor time.

Do not chase yield blindly

A high dividend yield can look tempting, but it can also be a warning sign.

Sometimes a yield is high because a business is strong and the market is offering a good price. Other times, it is high because investors expect the dividend to be cut.

That is why I would look at the business first and the yield second.

I would want companies with durable earnings like Wesfarmers Ltd (ASX: WES). Its businesses are exposed to everyday spending across areas such as hardware, discount department stores, office supplies, and healthcare. That does not mean profits will rise every year, but I like the group’s long record of disciplined capital allocation.

Telstra Group Ltd (ASX: TLS) is another example of the type of income share I would consider. Mobile connectivity has become essential for households and businesses, and that gives Telstra a defensive quality that can support dividends over time.

The aim is not to collect the biggest yield possible. It is to build an income stream that has a better chance of lasting.

Keep growth in the mix

Passive income can lose value if it does not grow.

A $10,000 income stream may sound useful today, but it will not buy the same amount in 20 years if inflation keeps rising. That is why I think a lifelong income portfolio should include businesses with the ability to grow earnings and dividends over time.

This may mean accepting a lower starting yield from some shares if the long-term dividend growth potential is stronger.

A company like Transurban Group (ASX: TCL) can also be useful in this kind of portfolio. Its toll roads sit on important urban routes, and distributions can be supported by assets that people keep using across different economic conditions.

I would also think about balance. A portfolio built only around banks or miners may pay strong income in good times, but dividends from cyclical businesses can move around. Adding companies with different cash flow drivers can make the income stream feel more resilient.

Build slowly and let time help

The share market rewards patience more often than urgency.

I would build a passive income portfolio gradually, adding money regularly and using market pullbacks as opportunities when quality assets become cheaper.

APA Group (ASX: APA) is the sort of infrastructure name that could appeal when income is the goal. Its energy infrastructure assets may not be exciting, but they can help provide steady cash flows.

Over time, the income stream can start to do more of the work. Dividends can be reinvested, the portfolio can grow, and the investor can become less dependent on new contributions.

Foolish takeaway

Lifelong passive income comes from building a portfolio that can survive different market conditions and keep working in the background.

I would focus on quality first, then yield, then growth. Shares such as Wesfarmers, Telstra, Transurban, and APA show the kinds of businesses I would look for: useful, established, cash-generative, and capable of supporting income over time.

Dividends are never guaranteed. But with patience, diversification, and a focus on sustainable businesses, I think investors can build a passive income stream that lasts for decades.

The post How to build passive income for life from the ASX share market appeared first on The Motley Fool Australia.

More reading

• 7 ASX 200 shares going ex-dividend today
• 5 things to watch on the ASX 200 on Monday
• Why Telstra shares could be a top ASX buy for the new financial year
• Why Wesfarmers shares still look like a top buy to me
• Chasing early retirement at 55? These ASX shares and ETFs could help

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.

Shares in mining heavyweight BHP Group Ltd (ASX: BHP) have finally hit a speed bump. BHP shares have fallen around 10.5% from its recent record high of $65.98, and are down approximately 6.5% over the past five trading sessions.

Despite the pullback, long-term shareholders still have plenty to smile about. BHP shares remain up roughly 30% in 2026 and an impressive 64% over the past 12 months.

So, is this simply a healthy breather after a huge rally, or the beginning of something more concerning?

What do brokers think?

Judging by analyst forecasts, the market isn’t leaning strongly in either direction. According to TradingView data, most brokers are taking a wait-and-see approach.

Of the 19 analysts covering BHP shares, 13 currently rate the $300 billion mining giant as a hold. Four recommend buying the stock, while two recommend selling.

That tells a story of cautious optimism rather than outright enthusiasm. Among the latest broker moves, DZ Bank upgraded BHP from sell to hold. Its $65 price target implies around 10% upside from current levels.

What’s striking, however, is the enormous spread between broker forecasts. The most bullish analyst values BHP at $94.51 a share, suggesting upside of nearly 60%. The most bearish sits at just $40.97, implying downside of around 30%.

When professional investors disagree by that much, it usually reflects genuine uncertainty about where the business is heading.

Why are BHP shares under pressure?

The catalyst for the recent sell-off was BHP’s latest update on its giant Jansen potash project in Saskatchewan, Canada.

Following a comprehensive review, management revealed Stage 2 will cost far more than previously expected. The company now expects the project will require an additional US$4.9 billion to US$5.4 billion beyond earlier estimates. That’s on top of the original US$4.9 billion budget approved in late 2023.

BHP also expects to recognise an impairment charge of around US$2.3 billion relating to Jansen Stage 2 in its FY26 results.

The timeline has deteriorated as well. First production from Stage 2 is now targeted for FY2031, two years later than originally planned.

Little patience for bad news

Unfortunately for BHP shares, this isn’t the first time Jansen’s budget has blown out.

Each successive cost increase has chipped away at investor confidence and raised questions about management’s ability to accurately forecast one of the company’s biggest growth projects.

Stage 1 remains on track for first production in FY2027, although even that project’s cost estimate has drifted higher since it was first approved. BHP has promised another update on Stage 1 before the end of the year.

Timing also mattered

Before the announcement, BHP shares had rallied about 30% since the start of 2026, leaving the stock trading near record highs.

When expectations are elevated, markets tend to punish disappointments more severely. The sell-off likely reflects not only concerns over Jansen, but also some investors taking profits after an exceptional run.

The bigger picture, however, hasn’t changed dramatically. BHP still generates enormous cash flow from its world-class iron ore business, continues to expand its exposure to copper, and retains long-term optionality through potash.

For now, though, the market appears happy to wait for greater clarity on Jansen before pushing BHP shares decisively higher again.

The post BHP shares have lost momentum. Should investors be worried? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.