• Zip vs Block: Which ASX payments share is better?

    A laughing man standing next to a woman holds out his arm to a payments machine to pay with his smartwatch

    Zip vs Block shares: Which payments stock stacks up best?

    When it comes to payments stocks on the ASX, Zip Co Ltd (ASX: ZIP) and Block Inc (ASX: XYZ) catch the eye for anyone watching the fast-moving world of digital money and buy-now, pay-later (BNPL) services. With both companies offering innovative ways for consumers and businesses to handle payments, everyday investors might be weighing Zip and Block against each other for their next portfolio move. Here’s how they compare on the fundamentals, value, and recent share price action.

    The case for Zip

    Zip is an Australian financial technology business focused on disrupting the traditional credit card and payments market. Zip operates in Australia, New Zealand, the United States, and 12 countries altogether, offering point-of-sale credit and BNPL services through products like Zip Money and Zip Pay. Founded in 2013, the company’s core pitch is to give shoppers more flexibility and an alternative to old-school credit cards.

    Looking at the fundamentals:

    • Market cap stands at $2.58 billion, so it’s a mid-cap ASX player with solid reach.
    • Zip’s P/E ratio is 22.63, which is at the lower end for a payments or fintech stock, potentially signalling more attractive value compared to fast-growth peers.
    • Earnings per share come in at $0.091, supporting its move toward profitability.

    Dividend hunters won’t find much here, though — Zip currently pays no dividend.

    The case for Block

    Block formerly known as Square, was originally a US payments upstart. Now, it’s a global force in payments tech, offering everything from merchant point-of-sale solutions to Cash App for peer-to-peer payments, as well as hosting platforms like Weebly. In 2022, Block snapped up Aussie juggernaut Afterpay in a headline-making deal, adding serious BNPL firepower to its roster. The business is dual-listed in the US and Australia, catering to a broad investor base.

    Key stats for Block Inc:

    • Its market cap is a substantial $4.21 billion, making it notably bigger than Zip on the ASX stage.
    • The P/E ratio is 132.23, vastly higher than Zip’s, which indicates investors are pricing in a lot of future growth or that current profits are relatively slim compared to the company’s valuation.
    • Earnings per share are showing at $0.560.

    Block also offers no dividend at this time.

    Valuation comparison

    With three key valuation metrics available for both, here’s how Zip and Block stack up:

    Metric Zip Block
    Market Cap $2.58 billion $4.21 billion
    P/E Ratio 22.63 132.23
    Earnings per Share $0.091 $0.560
    Dividend Yield 0.00% 0.00%
    Year To Date Return -37.7% 9.0%

    Note: Block Inc’s reported P/E appears very high compared to its EPS, suggesting investors are paying a heavy premium for expected growth and the Afterpay component. Both companies are not offering dividends right now.

    Recent share price momentum

    To line things up evenly, let’s use 2 October 2026 as the most recent shared date both companies have closing prices for. Here’s what the short-term momentum looks like as of that date:

    • Zip: Closed at $2.07 on 2 Oct 2026, up 3.5% from the previous close. Despite the daily bounce, its year-to-date return sits deeply in the red at -37.7% — meaning Zip shares have struggled significantly so far this year.
    • Block: Closed at $106.62 on 2 Oct 2026, up 0.7% on the day. Block, on the other hand, has delivered a positive year-to-date return of 9.0%, showing stronger recent momentum versus Zip.

    Which is the better buy?

    Looking at the numbers, I’d lean toward Block as the pick of these two payments stocks right now. The decisive factor for me is the year-to-date performance: Block shares have pushed ahead nearly 9%, while Zip is down a hefty 37.7%. That sort of divergence tells me Block is winning investor confidence and, crucially, executing better in this tough market for fintechs.

    Yes, Block’s P/E ratio is sky-high at 132, and that does make me pause — but with its diversified business, global scale, and the Afterpay acquisition now bedded down, I can see why the market is backing Block for future earnings growth. Zip is fighting hard and has managed to move towards profitability, but its steep price decline and smaller scale leave me with less confidence, at least based on the data I have in front of me.

    Of course, neither company is paying shareholders a dividend, so it’s really about capital growth potential. On current fundamentals and recent momentum, Block gets my vote as the more compelling buy.

    The post Zip vs Block: Which ASX payments share is better? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Zip Co right now?

    Before you buy Zip Co shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Zip Co wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 1 August 2026

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    Motley Fool contributor Laura Stewart 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 Block. 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

  • How much superannuation do I need to generate $100,000 per year in passive income?

    Woman with $50 notes in her hand thinking, symbolising dividends.

    Your superannuation isn’t just a savings pot for retirement; it can also generate a regular passive income to live off when you decide to quit work.

    A $100,000 annual passive income generated completely from your superannuation balance is entirely possible.

    This type of money sits well above the estimated cost for a comfortable retirement lifestyle. And it means your passive income will cover most of your expenses without needing to draw down aggressively on the rest of your balance. 

    In retirement, you can move your superannuation from an accumulation phase to a retirement phase. This is where you can convert your savings into a regular income stream or withdraw lump sums. 

    At this point, you can set up your superannuation to provide a regular income from your investment income, leaving the rest largely untouched, or you can withdraw dividend income in lump sums.

    But the question is, how much do you need in your super to be able to earn this level of passive income when you transition to your pension phase?

    Let’s take a look.

    How much do I need in my superannuation to earn an annual passive income of $100,000?

    To calculate the amount of superannuation you need, you’ll need to divide your annual passive income by the dividend yield of your portfolio.

    The catch is that the answer changes depending on what that yield is.

    Generally, as your yield goes up, the passive income you can earn off the same balance also increases.

    This means that a portfolio with a dividend yield of say, 3%, generally needs to be double the size of one with a 6% dividend yield in order to earn the same passive income. 

    Ok, what if my portfolio yields somewhere between 3% to 6%? How much do I need?

    Say your overall portfolio has a dividend yield of around 3%, you’ll need a balance of around $3.3 million to earn $100,000 per year in passive income. That’s because $100,000 ÷ 3% = $3,333,333.

    Of course, $3.3 million is a huge balance, and out of reach for most Australians.

    But remember, as your yield increases, the required balance goes down. 

    For example, if the yield of your portfolio is around 4%, your balance would need to be closer to $2.5 million to earn the same $100,000 annual dividend income.

    For a 5% yielding portfolio, you’d need a balance of closer to $2 million.

    And then a 6% yielding portfolio could generate $100,000 in passive income from a sound $1.6 million.

    Give me some ideas of 4% to 5% yielding ASX shares that I can invest my superannuation in

    There are many ASX dividend shares available for superannuation investment, and many of them yield around 4% to 5%.

    But here are some of my top picks.

    I’d consider defensive shares such as Telstra Group Ltd (ASX: TLS), Transurban Group (ASX: TCL), or Inghams Group Ltd (ASX: ING). 

    Otherwise, insurance shares are generally resilient to market volatility. QBE Insurance Group Ltd (ASX: QBE), Medibank Private Ltd (ASX: MPL), and Insurance Australia Group Ltd (ASX: IAG) are all good options in this sector, and they generate a yield of around the 4% to 5% level at the time of writing.

    Elsewhere, ASX energy shares are also able to generate reliable dividends for investors. Such as Origin Energy Ltd (ASX: ORG), Contact Energy Ltd (ASX: CEN), or Mercury NZ Ltd (ASX: MCY).

    The post How much superannuation do I need to generate $100,000 per year in passive income? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Contact Energy right now?

    Before you buy Contact Energy shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Contact Energy wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 1 August 2026

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    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 positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Telstra Group and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Here are the top 10 ASX 200 shares today

    A woman's hand draws a stylised 'Top Ten' on a projected surface.

    The S&P/ASX 200 Index (ASX: XJO) suffered a pullback this Thursday, continuing the sell-off we have seen for much of this week. After spending the entire session in negative territory today, the ASX 200 ended up closing with a 0.77% loss. That leaves the index at 8,660.9 points.

    This tough Thursday for ASX investors follows a similarly downbeat morning over on Wall Street.

    The Dow Jones Industrial Average Index (DJX: .DJI) was hit hard, dropping 0.66%.

    The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was a little tamer, but still fell 0.22%.

    But let’s get back to the local markets now and dive a little deeper into what was happening amongst the different ASX sectors this Thursday.

    Winners and losers

    Despite the broader market’s losses, we still saw a few sectors make hay.

    But first, it was mining stocks that were hit the hardest. The S&P/ASX 200 Materials Index (ASX: XMJ) was smashed, tanking 2.03%.

    Gold shares found themselves in a similar vein, with the All Ordinaries Gold Index (ASX: XGD) crashing 1.38%.

    Financial stocks had a day to forget too. The S&P/ASX 200 Financials Index (ASX: XFJ) sank 0.99% today.

    Industrial shares were in the same ballpark, as you can see by the S&P/ASX 200 Industrials Index (ASX: XNJ)’s 0.92% dive.

    Tech stocks also found themselves on the nose. The S&P/ASX 200 Information Technology Index (ASX: XIJ) took a 0.77% hit this session.

    Healthcare shares were our last losers today, with the S&P/ASX 200 Healthcare Index (ASX: XHJ) dipping 0.12%.

    Turning to the winners now, these were spearheaded by consumer staples stocks. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) soared up 1.42% this Thursday.

    Energy stocks ran hot too, evident by the S&P/ASX 200 Energy Index (ASX: XEJ)’s 1.36% surge.

    Utilities shares were also in demand. The S&P/ASX 200 Utilities Index (ASX: XUJ) added 1.34% to its total today.

    Communications stocks didn’t miss out, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) lifting 0.89%.

    Nor did consumer discretionary shares. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) advanced 0.31%.

    Finally, real estate investment trusts (REITs) got over the line, illustrated by the S&P/ASX 200 A-REIT Index (ASX: XPJ)’s 0.17% jump.

    Top 10 ASX 200 shares countdown

    Taking out the top index spot this Thursday was the stock market operator itself. ASX Ltd (ASX: ASX) shares had a blowout (relatively speaking) today, rising 3.84% to finish trading at $60.59 each.

    There wasn’t any news out today that explains this leap higher, though.

    Here’s how the other top stocks tied up at the dock:

    ASX-listed company Share price Price change
    ASX Ltd (ASX: ASX) $60.59 3.84%
    Lottery Corporation Ltd (ASX: TLC) $4.96 3.77%
    Domino’s Pizza Enterprises Ltd (ASX: DMP) $22.00 3.38%
    Xero Ltd (ASX: XRO) $57.79 3.01%
    Karoon Energy Ltd (ASX: KAR) $1.58 2.93%
    Beach Energy Ltd (ASX: BPT) $0.86 2.99%
    Woodside Energy Group Ltd (ASX: WDS) $32.31 2.57%
    AUB Group Ltd (ASX: AUB) $27.69 2.48%
    Minerals 260 Ltd (ASX: MI6) $0.835 2.45%
    Insurance Australia Group Ltd (ASX: IAG) $8.04 2.16%

    Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

    The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    * Returns as of 1 August 2026

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    Motley Fool contributor Sebastian Bowen 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 Domino’s Pizza Enterprises, The Lottery Corporation, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Aub Group, Domino’s Pizza Enterprises, and The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.