Author: openjargon

The superannuation system is a wonderful way for Australians to build wealth because of how returns are taxed much lower compared to normal individual tax rates.

Passive income received in superannuation during the retirement phase has a good chance of being tax-free. How great is that?

So, the question is, how much would it take to receive a sizeable amount of dividends each year? Let’s take a look.

$3,000 of passive income each month from superannuation

Receiving $3,000 equates to $36,000 per year. That’s not a gigantic amount, but it could be enough to be an essential part of a retiree’s finances.

How large the nest egg needs to be to receive $36,000 per year is largely related to what the portfolio yield is.

For example, if someone’s portfolio had an average dividend yield of 3.6%, then they’d need a $1 million portfolio to receive $36,000.

But, if the portfolio average dividend yield was actually 7.2%, then an investor would only need a $500,000 portfolio.

If the portfolio had a 4.8% dividend yield then an invest would need a portfolio value of $750,000.

There are plenty of options when it comes to aiming for these sorts of yields, so I’ll highlight a few names below. For my own portfolio, I have invested in a mix of names to create a strong dividend portfolio.

Which ASX dividend shares I’d buy

If an investor is targeting a relatively low (3.6%) passive income yield in superannuation, or outside of superannuation, then I’d consider names like investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Kmart and Bunnings owner Wesfarmers Ltd (ASX: WES), global jewellery business Lovisa Holdings Ltd (ASX: LOV) and funeral provider Propel Funeral Partners Ltd (ASX: PFP).

Among the mid-range yield (around 5%) names, I appreciate listed investment company (LIC) L1 Long Short Fund Ltd (ASX: LSF), industrial property owner Centuria Industrial REIT (ASX: CIP), farmland landlord Rural Funds Group (ASX: RFF), telco Telstra Group Ltd (ASX: TLS) and quality global shares-focused exchange-traded fund (ETF) WCM Quality Global Growth Fund (ASX: WCMQ).

Some of the higher-yield (more than 7%) names that I like include LICs WCM Global Growth Ltd (ASX: WQG), MFF Capital Investments Ltd (ASX: MFF), WAM Microcap Ltd (ASX: WMI), and diversified property landlord Charter Hall Long WALE REIT (ASX: CLW).  

The post How much is needed in superannuation to target a $3,000 monthly passive income? appeared first on The Motley Fool Australia.

More reading

• Forget Westpac, these ASX dividend shares could be better buys
• Why Wesfarmers shares are a retiree’s dream for FY27
• Got $50k of savings? Here’s how I’d turn that into passive income of $10k a year
• How do ASX dividend shares compare to savings deposit rates today?
• Buy, hold, sell: Catapult Sports, Guzman Y Gomez, and Wesfarmers shares

Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund, Mff Capital Investments, Propel Funeral Partners, Rural Funds Group, Wam Microcap, Washington H. Soul Pattinson and Company Limited, Wcm Global Growth, and Wcm Quality Global Growth Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Rural Funds Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Lovisa, Mff Capital Investments, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Codan Ltd (ASX: CDA) has not been resting on its laurels.

The Adelaide-based electronics and communications company, which most Australians still associate with metal detectors, has transformed itself into one of the most interesting defence technology stories on the ASX.

Up almost 140% over the past twelve months and 40% in 2026 alone, Codan announced this week that its wholly owned US subsidiary, DTC Communications, has entered a binding agreement to acquire the intellectual property of Adaptive Dynamics.

Adaptive Dynamics is a US-based engineering company specialising in anti-jamming and electronic warfare resilience for mission-critical communications.

What Adaptive Dynamics actually does

Adaptive Dynamics has spent more than two decades developing algorithms and radio frequency technologies capable of handling intentional and unintentional interference, signal enhancement, and adaptive filtering across defence systems operating in land, maritime, and airborne environments.

In practical terms, this means Adaptive Dynamics’ technology enables military communications systems to keep functioning even when an adversary is actively jamming, spoofing, or disrupting them.

This is one of the most pressing operational challenges facing Western defence forces in modern contested environments.

The acquisition is valued at approximately $21 million in upfront and contingent consideration, plus a tiered royalty structure over five years following completion.

Completion is expected in the first half of FY2027.

Codan has indicated that the deal will be earnings neutral in its first year, with the focus on integration rather than immediate profit contribution.

Why this acquisition is bigger than its price tag suggests

At $21 million, the Adaptive Dynamics deal is small relative to Codan’s current market capitalisation of approximately $7.5 billion.

But what it adds to DTC Communications is disproportionately valuable.

As Western defence forces increasingly compete in what military planners call contested electromagnetic environments, the ability to communicate reliably under active jamming conditions has become a non-negotiable procurement requirement.

DTC’s existing customers are already demanding electronic warfare resilience and AI-enabled integration capabilities as standard features in new contracts.

This means that Adaptive Dynamics’ technology directly expands the set of US and allied defence programs Codan can compete for.

The broader Codan story

This acquisition does not happen in isolation.

Codan earlier in 2026 lifted its full-year EBIT and NPAT guidance by more than 60%, driven by outperformance in both its communications and metal detection divisions.

The communications business, anchored by DTC and Codan’s broader defence electronics portfolio, is growing at a materially faster pace than the metal detection business, and management has deliberately allocated capital to expand that capability through acquisitions like this one.

Codan’s FY2026 EBIT is now expected to land near $235 million.

This is a significant step up from prior years and demonstrates the premium valuation the market is now placing on the stock.

The company designs its own core products and maintains manufacturing facilities in Adelaide, Penang, and multiple other locations globally.

As a result, this gives it control over its supply chain in a way that many pure defence contractors cannot match.

The valuation question

After a 140% gain in twelve months, Codan is no longer cheap.

The stock trades on a meaningful premium to the broader ASX 200 on most valuation metrics.

Any disappointment with earnings delivery or contract wins would likely be met with a sharp market reaction.

Foolish takeaway

Codan’s acquisition of Adaptive Dynamics is a strategically astute move that adds genuine capability to its fastest-growing division at a price that will barely register on the balance sheet.

For long-term investors already holding Codan, the direction of travel looks as clear as ever.

For those yet to invest, the entry point is harder to justify after a 140% run, but the quality of the underlying business and the depth of the defence spending tailwind make it a stock that deserves to stay on any serious investor’s watchlist.

The post Codan just acquired a US defence specialist. What does this mean for investors? appeared first on The Motley Fool Australia.

More reading

• Where I’d invest $5,000 in ASX shares this week
• This red-hot ASX 200 defence stock is rising again. Here’s why
• Buy, hold, sell: Cleanaway, Codan, and Tuas shares
• This ASX tech stock has exploded 137%, time to cash out?
• 5 ASX shares with upgraded ratings this week

Motley Fool contributor Mark Verhoeven 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.

The iShares S&P 500 ETF (ASX: IVV) has been one of the best exchange-traded funds (ETFs) to own over the last 10 to 15 years. For several reasons, it’s been a very effective investment for Aussie investors.

It provides exposure to a portfolio of 500 of the largest and most profitable businesses listed in Australia. You probably recognise some of the IVV ETF’s largest positions, like Nvidia, Apple, Microsoft, Amazon.com, Alphabet, Broadcom, Meta Platforms, Tesla and Berkshire Hathaway.

Thankfully, these have been among the best blue-chip performers over the past several years. The ETF has heavily benefited from those gains, too, because an ETF simply passes along the returns of its holdings. It’s great to get that investment exposure through the IVV ETF.

Let’s take a look at how much the IVV ETF unit price has risen.

Strong returns by the IVV ETF

Over the last five years, the IVV ETF unit price has increased by more than 90%.

In terms of total returns, the IVV ETF returned an average of 14.5% per year between April 2021 and April 2026.

If an investor had put $10,000 into the ASX ETF five years ago, it would now be worth approximately $19,200. It could have been worth even more if the Australian dollar hadn’t strengthened against the US dollar by around 10% over the last 12 months.

Of course, the dividend returns aren’t captured in these numbers, though the yield isn’t exactly huge, so it wouldn’t make a gigantic difference.

If someone had invested $10,000 in IVV ETF units five years ago, they’d have been able to buy 274 units, with a bit of money left over (adjusted for the 15-to-1 split in December 2022).

How much an investor can buy now

Thanks to the significant capital growth over the past 12 months, investors can’t buy as many iShares S&P 500 ETF units now as they could then.

With a $10,000 investment, an Australian investor could buy 142 IVV ETF units today.

Is it a good buy today?

We can’t know for sure what the long-term returns will be. But the returns so far demonstrate the portfolio’s quality.

The fund is invested in great businesses, many of which are investing heavily in developing new/better products and services that could unlock additional earnings growth. But remember this is a major bet on the US share market.

With an annual management fee very close to 0%, it’s a very low-cost option for investors and an excellent index-investing option.

The post 5 years ago, $10,000 bought 274 iShares S&P 500 ETF (IVV) units. But how many would it buy now? appeared first on The Motley Fool Australia.

More reading

• Got $50k of savings? Here’s how I’d turn that into passive income of $10k a year
• 2 ASX ETFs I think Warren Buffett would buy
• These are the cheapest ASX ETFs on the Australian market
• VGS vs IVV: Which ASX ETF is better?
• Why I’d buy these ASX ETFs if I were a beginner

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 positions in and has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Broadcom, Meta Platforms, Microsoft, Nvidia, Tesla, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Westpac Banking Corp (ASX: WBC) remains one of the most popular ASX dividend shares on the market.

It isn’t hard to see why. The bank has a long history of paying fully franked dividends and remains a household name with a large customer base.

But popularity is not the same as value. After a strong run in the banking sector, Westpac shares may not offer the same margin of safety they once did.

There are also concerns about tough trading conditions across the sector, particularly with the economic outlook still uncertain.

If credit growth slows, bad debts rise, or margins come under pressure, bank earnings could face headwinds.

With that in mind, income investors may want to look beyond the major banks. Here are two ASX dividend shares that could be better options.

Charter Hall Long WALE REIT (ASX: CLW)

The first ASX dividend share that could be worth considering is the Charter Hall Long WALE REIT.

It is a real estate investment trust that owns a diversified portfolio of properties leased to corporate and government tenants. Its focus is on long weighted average lease expiries (WALEs), which can provide greater visibility over future rental income.

While many property stocks are sensitive to interest rates and asset values, long leases can help support a more predictable distribution profile.

The trust has exposure to assets across sectors such as office, industrial, logistics, and social infrastructure. This gives it a different income base from the major banks, whose earnings are tied closely to lending conditions and the economic cycle.

It is guiding to a 25.5 cents per share dividend in FY 2026. Based on its current share price of $3.50, this represents a 7.3% dividend yield.

Jumbo Interactive Ltd (ASX: JIN)

Jumbo Interactive is another ASX dividend share that could be a buy.

It operates in the digital lotteries market, providing online lottery retailing and software services. This gives it exposure to a sector that can be relatively resilient compared with many discretionary categories.

Jumbo has also built a strong digital platform, which is important as lottery participation continues to move online. Its software and managed services operations provide additional growth avenues beyond its retail lottery business.

Lottery ticket sales can move around, and jackpot activity can influence performance. But Jumbo offers something different from bank dividends: a capital-light digital business with income potential and room to grow.

Analysts at Bell Potter are expecting Jumbo to pay fully franked dividends per share of 44 cents in FY 2026 and then 52 cents in FY 2027. Based on its current share price of $7.50, this would mean dividend yields of 5.9% and 6.9%, respectively.

The post Forget Westpac, these ASX dividend shares could be better buys appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $3,000 monthly passive income?
• How do ASX dividend shares compare to savings deposit rates today?
• Morgan Stanley tips 5% earnings downgrades for ASX 200 bank shares. Here’s why
• Buy, hold, sell: Catapult Sports, Tower, Guzman y Gomez shares
• How much is needed in superannuation to target a $7,500 monthly passive income?

Motley Fool contributor James Mickleboro 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 Jumbo Interactive. The Motley Fool Australia has recommended Jumbo Interactive. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares closed 0.39% lower at 8,657.8 points on Tuesday.

Let’s take a look at the latest expert ratings on three ASX shares.

Symal Group Ltd (ASX: SYL)

The Symal share price finished yesterday’s session 0.78% higher at $2.60.

In a new note, Morgans maintained its buy rating on this ASX industrial share with a 12-month target of $3.35.

The broker commented:

SYL’s recent investor day left us with the impression that the pipeline of potential work is immense, as the business progresses its $7.5bn of recently tendered work, along with a further $1.4bn of projects in early contractor involvement (‘ECI’).

Across the key verticals of infrastructure, digital, energy and defence, the total addressable market continues to grow, which along with M&A, could see the business delivering early on its FY30 aspirational EBITDA target of $200m.

Given SYL’s history of winning approximately one out of four tenders and no sign of Government investment budgets abating, the investment thesis for SYL as the ‘picks and shovels’ of the infrastructure build out remains intact.

Vicinity Centres (ASX: VCX)

The Vicinity Centres share price closed 0.78% lower at $2.55 on Tuesday.

Vicinity Centres is a major retail property group with $24 billion in assets under management.

It has interests in 51 shopping centres and manages 26 assets for Strategic Partners.

Ord Minnett reiterated its hold rating after the real estate investment trust (REIT) announced a $400 million purchase.

The broker said: 

Vicinity Centres has acquired a shopping centre in Eastern Creek in Sydney’s west for $400 million, implying a 5.7% yield after costs and a capitalisation rate of 6%.

The asset was recently developed and is almost fully leased (~99.5%), which underscores its quality and income stability.

The broker added:

At the portfolio level, Vicinity remains well positioned, supported by low gearing and relatively stable earnings growth.

The stock is trading broadly in line with fair value, around our $2.50 price target, so we maintain a Hold recommendation.

National Australia Bank Ltd (ASX: NAB) 

The NAB share price closed 0.76% lower at $37.99 yesterday.

As we’ve reported, the ASX 200 bank shares are facing many headwinds today.

Consumer confidence is at a five-year low; higher inflation and interest rates are expected; and the jobs market weakened last month.

On top of that, we are yet to see the full impact of the global oil shock, and capital gains tax changes ahead may impact lending growth.

Morgan Stanley reiterated its sell rating on NAB shares this week.

Analyst Richard Wiles gives NAB shares a 12-month target of $37.20.

The post Buy, hold, sell: Symal, Vicinity Centres, NAB shares appeared first on The Motley Fool Australia.

More reading

• How do ASX dividend shares compare to savings deposit rates today?
• Morgan Stanley tips 5% earnings downgrades for ASX 200 bank shares. Here’s why
• If I invest $8,000 in NAB shares, how much passive income will I receive in 2027?
• Thinking about dividend yields? Here’s how much the top 10 ASX 200 shares pay
• Here’s a 9% ASX dividend stock to consider for a monthly passive income

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 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.

I’d say Wesfarmers Ltd (ASX: WES) shares could be one of the best ASX blue-chip options for retiree investors.

The name ‘Wesfarmers’ may not be as famous as Commonwealth Bank of Australia (ASX: CBA) or BHP Group Ltd (ASX: BHP). But, I’m going to explain why I think Wesfarmers could be the strongest blue-chip that retirees could want to buy right now.

Let’s run through my thoughts.

Diversification

Wesfarmers is the parent company behind a number of Australian businesses including Kmart, Bunnings, Officeworks, Target, Priceline, Clear Skincare Clinics, Blackwoods, Workwear and WesCEF (chemicals, energy and fertilisers).

I think this is a great strategy for the company because it means it’s not stuck in any particular industry. It can invest where it sees opportunities and divest businesses when it no longer wants to own them.

For example, it used to own coal mines and Coles Group Ltd (ASX: COL), and both were divested several years ago.

I like that the company can adjust its portfolio, allowing it to future-proof the overall business and re-direct capital towards growth industries.

For example, in recent years, some of its investment dollars have gone towards healthcare, lithium mining and modular home construction.

Plenty of ASX businesses are stuck in their core industry, so their success will be partially down to how profitable their sector is in the coming years.

Rising dividend

One of the main things that retirees may be looking for is dividend income.

Wesfarmers has a great dividend record, in my view. Following its split from Coles, it has increased its annual passive income each year since 2020.

I believe it’s likely the business will continue to hike its annual dividend for a couple of key reasons.

Firstly, the company has stated it wants to grow its dividend over time alongside its earnings growth.

The projection on Commsec suggests the business could pay an annual dividend per share of $2.16 in FY26.

 At the time of writing and the current Wesfarmers share price, it could provide a FY26 grossed-up dividend yield of around 4%, including franking credits. I’d say that’s a solid starting dividend yield for retirees.

I’ll explain my other reason for expecting dividend growth below.

Well-positioned for the current conditions

Both Kmart and Bunnings are national leaders at providing good value products for households. Wesfarmers succeeded during the last period of inflation and I think it’s primed to do well again and perhaps gain market share.

Both Kmart and Bunnings achieve excellent returns on capital (ROC), helping it normally achieve a return on equity (ROE) of more than 30%, meaning shareholder money is working very hard.

I think Bunnings and Kmart can both grow their earnings in the coming period, perhaps gaining market share, and this can fund larger dividends in FY27 and beyond. The current forecast on Commsec suggests the FY27 annual dividend per share could increase by around 8%.

The post Why Wesfarmers shares are a retiree’s dream for FY27 appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $3,000 monthly passive income?
• Got $50k of savings? Here’s how I’d turn that into passive income of $10k a year
• How do ASX dividend shares compare to savings deposit rates today?
• Buy, hold, sell: Catapult Sports, Guzman Y Gomez, and Wesfarmers shares
• With first-half profits jumping to $1.6 billion, are Wesfarmers shares a buy today?

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

Charter Hall Group (ASX: CHC) this week upgraded its expected earnings for FY26 by a further 3%, bringing the expected increase over last year’s result to 26.5%.

Not surprisingly, the share price reacted positively to the news; however, two brokers that have issued research notes on the shares this week think there are more gains to be had.

Strength through diversification

In terms of where the growth is coming from, the company said its institutional property funds management platform continued to grow, “underpinned by increased allocations from existing clients and new investor gross equity inflows across institutional pooled funds, partnerships, and mandates”.

Charter Hall added:

Financial year-to-date gross equity inflows total $6.5 billion, representing an increase of $1.7 billion since 1H FY26. Growth has been driven by investor customers increasing allocations within existing investments, as well as diversification into additional Charter Hall managed strategies and sectors. Recent client activity has resulted in the addition of 25 new institutional investors to the platform over the last 18 months, including several institutions making initial allocations to the Australian property sector, supporting long term growth potential.

Charter Hall Managing Director David Harrison said regarding the upgrade:

Australia continues to attract institutional capital as a stable and highly dependable real asset market. We are seeing increased allocations from existing institutional investors alongside new domestic and offshore inflows seeking diversified exposures. The resilience of unlisted property returns, and inflation hedge characteristics continue to support strong investor demand, with Australia remaining a preferred destination for global capital.

Shares looking cheap

Broker UBS said in its note to clients that Charter Hall had delivered a total return of negative 17% over the past six months, worse than the broader industry’s negative 10%.

They said Charter Hall’s underlying price-to-earnings (P/E) ratio now sat below its 10-year average.

UBS said they “expected improvement in retail investor flows following the Federal Budget, which improves the relative attractiveness of commercial vs. residential property investment and will drive improved flows into property funds businesses, in our view”.

UBS has a price target of $24.75 on Charter Hall shares compared with $20.22 at the time of writing.

Morgan Stanley said in its note that Charter Hall had defied the view that higher rates meant less flows into real estate.

The analyst team said the company announced a number of positive developments which were on foot and “reading between the lines, it doesn’t seem like the company has mid-single digit growth on its mind”.

Morgan Stanley has a price target of $26.89 on Charter Hall shares.

Charter Hall is valued at $9.75 billion.

The post After an earnings upgrade, 2 brokers weigh in on the value of Charter Hall shares appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Charter Hall, Coronado Global, Meeka Metals, and Qantas shares are racing higher today
• Guess which ASX 200 share is racing 5% higher after upgrading its earnings guidance
• Charter Hall lifts FY26 guidance as capital inflows surge
• 7 ASX shares with strengthened buy ratings this week

Motley Fool contributor Cameron England 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.

It certainly has been a stunning 12 months for Electro Optic Systems Holdings Ltd (ASX: EOS) shares.

During this time, the ASX defence and space stock has risen over 400%.

This would have turned a $1,000 investment into over $5,000.

But is it too late to buy EOS shares now? Let’s see what Bell Potter is saying about this high-flying ASX stock.

What is the broker saying?

Bell Potter notes that the company has announced the completion of its acquisition of MARSS. It said:

EOS has completed the acquisition of MARSS Group, following a $150m placement to institutional investors (excl. $25m SPP) and $40m strategic investment from Calidus LLC and another unnamed investor. The institutional placement was well supported by existing and new institutional investors at a price of $8.00/sh. The proceeds from the raise are to be used to fund the $50m upfront consideration of the MARSS acquisition, as well as growth opportunities in C-UAS, MARSS and Space Control, as well as long lead parts inventory and working capital flexibility.

The broker is positive on the transaction, highlighting that MARSS NIDAR is performing better than it was expecting in the Middle East.

MARSS’ C2 NIDAR offering is performing better than our initial expectations with the company securing €102m in new contracts from an existing Middle East customer to deliver a country-wide UAS detection and mitigation capability, with NIDAR’ C2 software at its core. With MARSS prevailing over two competing primes, the award reflects NIDAR’s demonstrated effectiveness in mitigating Shahed drone and missile attacks in the current Middle East conflict.

It then adds:

The strategic importance of the MARSS acquisition exceeds its near-term financial impact. EOS now has a technically validated and battle-proven C2 offering with a leading position in the Middle East. The integration of NIDAR into a nation’s C-UAS stack is sticky in nature and should reap benefits for EOS many years following initial contract terms. Further, MARSS gives EOS the ability to integrate its existing suite of effectors and compete for C-UAS programs as a prime contractor.

Should you buy EOS shares?

According to the note, Bell Potter has retained its buy rating on the company’s shares with an improved price target of $10.60 (from $10.40).

Based on its current share price of $8.89, this implies potential upside of 19% for investors over the next 12 months.

Summarising its investment thesis, the broker concludes:

EOS is positioned as a market leader across many C-UAS verticals and is leveraged to increasing budget allocations to C-UAS technologies. EOS possess a catalyst rich next 12 months, with potential HELW, C2 and Slinger awards on the horizon.

The post Up 400%+: Does Bell Potter think EOS shares can keep rising? appeared first on The Motley Fool Australia.

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• The SpaceX IPO is coming. Here are 2 ways investors could benefit from the space boom
• 3 ASX shares that have doubled in the last year and could keep climbing
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• Here’s why this ASX defence stock is charging higher today
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Motley Fool contributor James Mickleboro 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 Electro Optic Systems. 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.

A decade is a long time in markets. Trends that look small today can become mainstream.

Technologies that feel early can become essential. And companies that dominate one niche can end up shaping entire industries.

That is why some thematic ASX exchange traded funds (ETFs) can be interesting for patient investors. They will not move smoothly every year, but they can provide exposure to structural changes that may still have a long way to run.

Here are three ASX ETFs that could be worth buying and holding for the next 10 years.

Betashares S&P/ASX Australian Technology ETF (ASX: ATEC)

The Betashares S&P/ASX Australian Technology ETF offers a way to back the ASX companies trying to modernise old industries.

This is not just a fund full of tech stocks in the narrow sense. It includes businesses reshaping how cars are sold, how medical images are read, how freight moves around the world, how companies manage data, and how households interact with digital services.

Among its holdings are Computershare Ltd (ASX: CPU), Nextdc Ltd (ASX: NXT), and Xero Ltd (ASX: XRO). These are very different businesses, but each is tied to the broader shift toward more digital, automated, and data-rich operations

The ASX tech sector can be volatile, and the fund has been hit by weaker sentiment toward growth shares. But that weakness could be part of the opportunity for investors who believe Australia’s best technology companies still have room to scale. It was recently recommended by the team at Betashares.

Betashares Global Cybersecurity ETF (ASX: HACK)

The Betashares Global Cybersecurity ETF is focused on one of the less glamorous but most important parts of the digital economy.

Every new app, cloud platform, connected device, payment system, and artificial intelligence (AI) tool creates more data and more potential points of attack. That makes cybersecurity less of an optional IT expense and more like digital insurance.

This fund gives investors exposure to global specialists such as CrowdStrike (NASDAQ: CRWD), Palo Alto Networks (NASDAQ: PANW), and Fortinet (NASDAQ: FTNT).

The good news for its holdings is that cyber security risk is unlikely to disappear. If anything, it will become more complex as businesses grow more dependent on cloud computing, automation, and remote access.

Individual cybersecurity companies can be difficult to pick because threats, products, and customer needs evolve quickly. This ASX ETF spreads exposure across a group of companies working on different parts of the security stack.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

Finally, the Betashares Global Robotics and Artificial Intelligence ETF is a way to invest in machines doing more of the heavy lifting.

That does not just mean humanoid robots or futuristic factories. It includes sensors, automation equipment, surgical systems, industrial controls, and the chips that help machines process more information.

Key holdings include Keyence, ABB (SWX: ABBN), and FANUC (TYO: 6954).

This gives the fund a different flavour from many AI-focused investments. Rather than being only about software, it has exposure to the physical side of automation.

That could be important over the next decade as companies try to improve productivity, manage labour shortages, and make supply chains more efficient.

It was also recently recommended by the team at Betashares.

The post 3 exciting ASX ETFs to buy and hold for 10 years appeared first on The Motley Fool Australia.

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• Broker tips this ASX cyber security stock to rise over 30%
• ASX ETFs to target this month that focus on undervalued sectors
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If you are sitting on a $50,000 savings balance and want to turn it into passive income, then the share market could be the place to do it.

But if you want to pull in $10,000 of income from ASX shares, it won’t happen overnight.

Here’s how I would try to achieve this goal.

Don’t rush the passive income stage

If I had $50,000 of savings and wanted to eventually generate $10,000 a year of passive income, I would not immediately chase the highest dividend yields on the ASX.

That can be tempting. A 9% or 10% yield might look like a shortcut. But very high yields can sometimes be a warning sign that the market expects the dividend to be cut.

Instead, I would split the journey into two stages.

The first stage would be about growing the portfolio. The second stage would be about turning that larger portfolio into income.

I think that distinction is important. Trying to force $10,000 of income out of $50,000 would require a 20% yield. I do not think that is realistic or sensible for most investors.

But growing $50,000 into $200,000 over time is a much more practical target.

Let compounding work for you

Let’s assume an investor can achieve an average annual return of 9% from a diversified ASX share portfolio.

That is not guaranteed. Some years will be much better, and some years could be negative. But as a long-term assumption, it is a useful way to understand the power of compounding.

At a 9% annual return, $50,000 could grow to around $200,000 in just over 16 years, assuming returns are reinvested and no extra money is added.

And if you add more money along the way, the timeline could be shorter.

What I’d invest in

During the growth stage, I would focus on quality rather than just income.

That could include a mix of ASX blue-chip shares, growth shares, and exchange-traded funds (ETFs). I would want businesses with strong balance sheets, durable earnings, and the ability to reinvest for growth.

This could mean an ETF like iShares S&P 500 AUD ETF (ASX: IVV) or an ASX share like Wesfarmers Ltd (ASX: WES).

I would also want diversification. Relying on one bank, one miner, or one high-yield dividend share would make the plan more fragile than it needs to be.

Once the portfolio grows to reach around $200,000, I would then start thinking more seriously about passive income.

A 5% dividend yield on $200,000 would produce $10,000 a year in passive income. That could come from a mix of dividend shares, infrastructure stocks, listed property, and income-focused ETFs like the Vanguard Australian Shares High Yield ETF (ASX: VHY).

Some investors may also receive franking credits from certain Australian dividend shares, which could improve the after-tax outcome depending on their situation.

Foolish takeaway

I think the trick is not to ask a $50,000 portfolio to do a $200,000 portfolio’s job.

At the start, I would want the money working hard for long-term growth. Later, when the portfolio is large enough, the focus can shift more naturally towards income.

That approach requires patience, but it avoids the trap of chasing unsustainable yields too early. In my view, that is a much cleaner way to turn today’s savings into tomorrow’s passive income stream.

The post Got $50k of savings? Here’s how I’d turn that into passive income of $10k a year appeared first on The Motley Fool Australia.

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• With first-half profits jumping to $1.6 billion, are Wesfarmers shares a buy today?
• Why Fisher & Paykel Healthcare, GR Engineering, Kogan, and Wesfarmers shares are pushing higher

Motley Fool contributor Grace Alvino has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers and iShares S&P 500 ETF. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.