S&P/ASX 200 Index (ASX: XJO) shares rose 1% last week and are down 2.5% over 12 months.

Here’s what Michael Gable from Fairmont Equities thinks of these 3 ASX 200 shares (courtesy The Bull). 

Santos Ltd (ASX: STO)

The Santos share price rose 3.88% to close at $9.11 last week.

Gable has a buy rating on this ASX 200 energy share. 

He said: 

Santos is a global energy company. We’ve been bullish on the outlook for oil and gas since 2025 due to a looming imbalance between supply and demand.

Investors have been underweight in the energy sector, but buying support is emerging for major oil and gas companies like Santos.

The shares have risen from $6.15 on January 2 to trade at $9.14 on October 15.

A major technical breakout in Santos shares was achieved this month, which is a positive sign and indicates potentially higher prices moving forward.

BHP Group Ltd (ASX: BHP)

The BHP share price fell 1.49% to finish at $60.03 last Friday.

Gable has a hold rating on this ASX 200 mining share. 

He commented: 

BHP is one of the world’s biggest miners and most of its earnings is now generated from copper.

In our view, we remain in the early stages of a commodities boom. The copper price continues to trend higher due to supply constraints and increasing demand.

The company posted an attributable profit of $US9.8 billion in full year 2026, up 9 per cent on the prior corresponding period.

It was recently trading on a fully franked dividend yield of almost 4 per cent, which is attractive for Australian shareholders in light of the Federal Government’s changes to capital gains tax rules.

Telstra Group Ltd (ASX: TLS)

The Telstra share price edged 0.63% lower to $4.74 last week.

Gable has a sell rating on this ASX 200 telco share. 

Gable explained: 

Stock in this telecommunications giant enjoyed a good run in the two years up to May 2026, but has fallen back and formed a negative reversal signal on the share price chart.

In an environment of higher interest rates, Telstra’s dividend loses appeal when compared to cash in the bank.

Telstra shares have fallen from $5.55 on May 19 to trade at $4.785 on October 15.

In our view, low growth prospects and possibly increasing competition from SpaceX‘s Starlink leaves the share price under pressure.

The post Buy, hold, sell: Santos, BHP, Telstra shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 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.

Insurance Australia Group vs Medibank shares: Which is the more reliable passive income stock?

Looking to steady your income with ASX dividend shares? Insurance Australia Group Ltd (ASX: IAG) and Medibank Private Ltd (ASX: MPL) are two prominent insurers – but with different focuses, histories, and fundamentals. If you’re torn between these giants for your portfolio’s next source of passive income, here’s what stands out about IAG and Medibank shares right now.

The case for Insurance Australia Group

Insurance Australia Group is the largest general insurer in Australia and New Zealand, with roots going back to NRMA Insurance. Through well-known consumer brands, IAG offers policies across motor, home, and business insurance, and underwrites billions in premiums each year. It operates in a highly regulated space and is known for scale and brand strength.

Three points make IAG noteworthy for income hunters:

• Dividend yield: 3.8% – solid, though not spectacular, especially among defensive stocks.
• Dividend history: IAG has a long dividend track record, but dividend per share and franking have fluctuated in recent years, with a 0.32 dividend per share and partial franking (recent dividends as low as 25–60% franked).
• YTD return: Up an impressive 9.5%, signalling positive momentum.

That said, IAG’s reported recent earnings per share is negative at -1.921, which does warrant some caution – negative earnings can put future dividend sustainability under pressure.

The case for Medibank Private

Medibank Private is Australia’s largest private health insurer, operating under both Medibank and ahm brands. Its core is health cover, but it’s diversified into pet, life, and travel insurance, plus corporate health. Medibank is often seen as a defensive, reliable dividend share thanks to its stable customer base and highly cash-generative business.

Key features for dividend investors include:

• Dividend yield: 4.1%, just topping IAG and attractive for a major ASX stock.
• Dividend history: Medibank’s dividends have been consistent and are fully franked, giving income investors a tax edge and a sign of strong underlying earnings quality.
• Earnings per share: Positive at 0.232, providing support for ongoing dividends.

While its year-to-date return is only 1.7% (much lower than IAG’s), Medibank’s steady performance and 100% franking may appeal more to income-focused investors.

Valuation comparison

Here’s how the headline numbers stack up:

	Insurance Australia Group	Medibank Private
Market Cap	$19.42bn	$12.83bn
P/E Ratio	18.99	20.17
Dividend Yield	3.80%	4.10%
Dividend Franking	Recent: 25%–60%	100%
Earnings per share	-1.921	0.232

Note: IAG’s negative EPS seems inconsistent with its positive P/E ratio. This may mean the reported P/E uses an adjusted or forecast earnings number.

Both valuations are within the normal range for major ASX insurers, though Medibank’s P/E is a touch higher – understandable given its 100% dividend franking and consistent profits.

Recent share price momentum

Comparing recent share price performance up to14 October 2026:

• IAG: Closed at $8.30, down 1.43% on the day. Its YTD return, however, is a strong 9.5%.
• Medibank: Closed at $4.66, down 0.43% on the day. Its YTD return is 1.7%.

Both have had small down days but, over 2026, IAG has delivered stronger share price gains.

Which is the better buy?

If reliable, consistent passive income is the goal, I’d lean toward Medibank Private. Its fully franked dividends provide better after-tax returns, and its dividend record is both steady and fully supported by current earnings. Medibank’s 4.1% yield edges out IAG, and the consistency of 100% franking is a major plus for Australian tax residents, especially with partial franking now the norm for IAG.

IAG has delivered better share price growth this year, but its negative earnings and lower franking raise some questions on dividend sustainability. While its insurance business is huge and diversified, I think income investors want clarity and reliability.

So, for pure passive income reliability, my pick would be Medibank Private shares.

The post Insurance Australia Group vs Medibank: Which is the more reliable passive income stock? appeared first on The Motley Fool Australia.

More reading

• 9 ASX 200 shares experts are backing for growth amid market weakness
• How much passive income can I earn off a $700,000 superannuation balance?
• Insurance Australia Group updates on RAC alliance and ACCC review
• Here are the top 10 ASX 200 shares today
• UBS’ top nine ASX large-cap stock picks

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 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. 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.

National Australia Bank vs Coles Group shares: Which blue chip should I buy next for my SMSF?

If you’re looking at National Australia Bank Ltd (ASX: NAB) shares versus Coles Group Ltd (ASX: COL) shares for your SMSF, you’re not alone. Both are household-name blue chips on the ASX, known for reliable dividends, defensive business models, and roles as core holdings in many Australian portfolios. But which deserves a spot in your next SMSF purchase? Let’s break down the fundamentals, dividend outlook, recent momentum, and relative value to help you decide.

The case for National Australia Bank

National Australia Bank, or NAB, is one of the ‘big four’ banks dominating Australian and New Zealand banking. Its mainstays are retail and business banking, plus some operations overseas. NAB’s size and scale, with a strong local focus, give it a distinct position as a pillar of the Australian financial system.

Notable fundamentals jumping out include:

• Market cap: $120.18 billion, one of the biggest companies on the ASX
• P/E ratio: 19.63, on the lower side for a blue-chip, partly reflecting the lower-growth, higher-stability banking sector
• Dividend yield: 4.33%, fully franked at 100%, meaning those dividends can be particularly attractive for SMSFs seeking income with franking credits

NAB’s earnings per share comes in at $2.00, with a dividend per share of $1.70, showing it’s distributing a healthy portion of its profits. Year-to-date return is -5.22%, meaning the share price has drifted lower this year, but the dividend cushion gives some comfort. According to its most recent public description, NAB has built a dominant presence in local banking, serving millions of Australians and New Zealanders.

The case for Coles

Coles is Australia’s second-largest supermarket operator, with a nationwide footprint spanning Coles Supermarkets, Coles Liquor, and an online offering. Famous for its weekly specials and focus on essential products, Coles is a true consumer staple — the sort of retailer that hums along no matter what the economy is doing.

A few highlights from the numbers:

• Market cap: $31.76 billion (significantly smaller than NAB, but still a titan in listed retail)
• P/E ratio: 29.19, higher than NAB’s, reflecting different growth expectations for supermarket retail versus banking
• Dividend yield: 3.29%, also fully franked, making Coles appealing to income-seeking SMSFs

Coles delivers earnings per share of $0.812 and a dividend per share of $0.74 — again, a decent portion of profits returned to shareholders. Year-to-date, Coles shares are up 14.18%, outpacing much of the market. According to its latest company profile, Coles operates across groceries, liquor, and household goods, maintaining a huge retail presence and brand recognition.

Valuation comparison

Here’s how NAB and Coles stack up on the key valuation and income stats:

	National Australia Bank	Coles
Market Cap	$120.18b	$31.76b
P/E Ratio	19.63	29.19
Dividend Yield	4.33% (100% franked)	3.29% (100% franked)
Dividend per Share	$1.70	$0.74
Earnings per Share	$2.000	$0.812
Year to Date Return	-5.2%	14.2%

NAB currently offers a materially higher dividend yield than Coles and does so with full franking. The P/E ratio for NAB is noticeably lower — but keep in mind: banks and retailers tend to trade at different benchmarks, so comparing their P/E ratios should be done in context. Coles’ higher P/E may price in its perceived stability and growth outlook in groceries, while NAB’s lower multiple can reflect sector trends or short-term headwinds.

Recent share price momentum

Comparing recent share price performance up to 14 October 2026:

• National Australia Bank: Closed at $38.55, down 1.78% for the day, and -5.2% year-to-date. NAB’s shares have seen some bouts of volatility lately, with a short-term downward drift this year.
• Coles Group: Closed at $23.63, down 0.30% for the day, but is up 14.2% year-to-date. Coles shares have been far more resilient in 2026, delivering strong positive momentum versus the banking giant.

Which is the better buy?

If I could only add one of these blue chips to my SMSF right now, my pick would be Coles. Here’s why: Coles may be on a higher P/E multiple, but its share price has delivered stronger momentum all year. The retail staple is churning out reliable profits and still providing a solid, fully franked dividend — albeit at a slightly lower yield than NAB. The steady consumer staples business has shown real resilience, especially through periods of economic uncertainty.

Meanwhile, NAB’s dividend yield edges out Coles and may appeal to income-focused SMSFs, particularly with those juicy franking credits. But the negative share price performance year-to-date — and sensitivity to interest rate cycles and regulatory shifts — gives me pause. Until NAB can demonstrate steadier share growth or less sector risk, I’d lean toward the proven strength and momentum of Coles as a solid core holding for a long-term SMSF strategy.

The post NAB vs Coles: Which is the better ASX blue-chip buy for SMSF investors? appeared first on The Motley Fool Australia.

More reading

• I look for 3 things in a retirement stock. These 5 shares have them all
• How much do I need in my superannuation to generate a $108,000 annual passive income?
• 3 ASX shares I think could still be thriving in 2040
• 3 reasons I would invest $10,000 in Coles shares
• How much passive income can I earn off a $700,000 superannuation balance?

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 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. 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.