Author: openjargon

The S&P 500 Index (INDEXSP: .INX) has been a strong performer over the long-term. We shouldn’t judge a market or investment too much based on a short time frame, which I’d describe as anything less than a year.

The S&P 500 is one of the most popular indices from across the world because many of the largest (and strongest) global companies are listed in the US.

In this index, we can find 500 of the largest and most profitable businesses listed in the US share market, such as Nvidia, Apple, Microsoft, Amazon, Alphabet, and Meta Platforms.

How strongly has the S&P 500 Index performed in 2026?

At the time of writing, the S&P 500 Index has risen by 7.2% in 2026 to date. That compares very favourably to the S&P/ASX 200 Index (ASX: XJO), which has only risen by 0.4% in 2026 to date.

As you might expect, the gains in the US share market have largely been driven by a very small number of businesses.

In 2026 to date:

• The Nvidia share price is up 2% (it’s down 18% from mid-May)
• The Apple share price is up 4.7%
• The Microsoft share price is down 21%
• The Amazon share price is up 2.7%
• The Alphabet share price is up 6.1%
• The Meta Platforms share price is down 15%
• The Broadcom share price is up 5%
• The Micron Technology share price is up 259%
• The Advanced Micro Devices share price is up 133%

It is very interesting to me that names like Microsoft and Meta Platforms have suffered major declines, and Nvidia has given up much of its 2026 gains, while others in the tech space have soared.

How can Australian investors get exposure to this index?

The easiest way for Aussies to buy into the S&P 500 is through the iShares S&P 500 ETF (ASX: IVV). It’s one of the cheapest exchange-traded funds (ETFs) on the ASX with an annual management fee of just 0.04%.

The fund’s performance has been excellent, thanks to the businesses it holds. Over the past decade to 31 May 2026, the IVV ETF has averaged an annual return of 15.5%.

I’m not expecting the next five and ten years to be as good as that because of how reliant those returns were on a few tech names.

It becomes increasingly difficult to continue growing earnings at a strong pace when you’re talking about businesses with market capitalisations of more than US$1 trillion. Plus, it’s an intriguing development that the index is becoming more concentrated on the top ten names.

However, great companies do manage to continue growing their earnings. So, aside from the complexity of the huge spending on AI, I think the outlook for the S&P 500 looks compelling.

The post $5,000 invested in the S&P 500 at the start of 2026 is now worth… appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I’d buy and hold for my kids
• Why US stocks have hit record highs while ASX shares have barely risen in 2026
• How to invest $500, $5,000, and $50,000 on the ASX
• 3 strong ASX ETFs for beginner investors
• How to build a winning ASX portfolio with just 3 investments

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, Broadcom, Meta Platforms, Micron Technology, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, 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.

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.

More reading

• 3 ASX dividend shares to buy for growing passive income
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• How to make $2,000 of monthly passive income from ASX shares
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• 2 ASX shares with dividend yields above 8%

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.

More reading

• Buy, hold, sell: Woodside, Xero, BHP shares
• Why US stocks have hit record highs while ASX shares have barely risen in 2026
• Want a pay rise? These ASX dividend shares keep delivering
• How much passive income can I make from ASX shares?
• 8 ASX 200 shares with reaffirmed buy recommendations this week

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.

Life360 Inc. (ASX: 360) and Zip Co Ltd (ASX: ZIP) have been growing strongly for many years.

But I think the bigger opportunity is still ahead. Life360 is building a family safety and connection platform with a huge user base, while Zip is becoming a more profitable digital payments business with a particularly exciting opportunity in the United States.

Because of this, I think both ASX shares are strong buys for investors willing to accept some volatility.

Life360 shares

Life360 has become one of the more interesting consumer technology shares on the ASX.

The company’s app helps families stay connected through location sharing, driving safety features, alerts, and related services. I think that gives Life360 a useful emotional layer that many apps do not have. It is not just entertainment or convenience. For many families, the product is about reassurance.

That can be powerful if the company keeps building around that relationship.

Life360’s recent quarterly update showed how quickly the business is still growing. In the first quarter of 2026, total revenue grew 38% year over year to US$143.1 million. Monthly active users reached approximately 97.8 million, up 17% year-over-year, while total Paying Circles rose 27% to 3.0 million.

The advertising opportunity is also becoming more meaningful. Advertising revenue reached US$19.7 million in the quarter, up 329% year-over-year.

That is partly what makes Life360 exciting to me. The company has a large free user base, a growing paid subscriber base, and a developing advertising business. If it can keep improving the product without damaging user trust, there could be several ways to grow revenue over time.

There are risks. Consumer apps can be competitive, privacy is crucial, and valuation can move around quickly. But I think Life360 has the ingredients of a much larger business.

Zip shares

Zip is another ASX growth share I think is worth buying.

The buy-now-pay-later company has been through a major reset in recent years, and I think that makes the investment opportunity more attractive. It is not just chasing growth. It is showing better profitability, tighter execution, and momentum in the right markets.

The US business is what I value most. Zip recently said its US operations had 4.6 million active customers and annual transaction volume of around A$12 billion as at 31 March 2026. The company also pointed to a high-growth US business executing strongly in what it sees as an attractive early-stage market.

That is a big opportunity if Zip can keep underwriting customers profitably. The company says it serves Americans who are often overlooked by traditional financial services providers. I think that is an important point. Many customers still want flexible, transparent payment options, particularly when managing everyday expenses.

Zip’s update also showed group momentum. For the third quarter of FY26, total transaction volume rose 22.4% year over year, total income increased 20.2%, and cash EBTDA jumped 41.5%.

That combination of growth and improving profitability is what I want to see.

Foolish takeaway

Life360 and Zip are not low-risk blue-chip ASX shares, but I think both have attractive long-term upside.

Life360 is building a large consumer platform around family safety and connection, with subscriptions and advertising both contributing to growth. Zip is showing that a digital payments business can grow while becoming more profitable, with the US market offering a large runway.

Both companies still need to execute well. But based on their recent momentum, I think Life360 and Zip shares are strong buys today.

The post Why I think Life360 and Zip shares are strong buys appeared first on The Motley Fool Australia.

More reading

• Why this analyst rates Life360 shares a buy right now
• Why I’d buy CSL and Zip shares before they recover
• 5 ASX growth shares I want in my portfolio in FY27
• 3 reasons to buy the dip on Life360 shares today
• If I’d invested $7,000 in Zip shares 3 months ago, guess what I’d have now!

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 positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s been a spectacular year for investors in Australia’s biggest ASX lithium stocks.

Over the past 12 months, shares in Mineral Resources Ltd (ASX: MIN) have surged around 213%, while PLS Group Ltd (ASX: PLS) has done even better, rocketing approximately 301%.

The rally has been driven by a powerful recovery in the lithium sector after several difficult years.

Momentum has cooled in recent weeks, however. Both stocks have retreated over the past month as lithium prices eased.

That’s hardly surprising. Lithium carbonate prices climbed roughly 155% over the past year, providing a major tailwind for producers. But after falling around 14% over the past month, investors are once again questioning how much upside remains.

Even so, anyone who invested $5,000 in either stock a year ago would still be sitting on an eye-catching gain.

Here’s what that investment would be worth today.

$5,000 invested in Mineral Resources

A $5,000 investment in Mineral Resources 12 months ago would now be worth approximately $15,650.

While the company has benefited from the rebound in lithium, it’s not a pure-play producer.

Unlike many ASX lithium stocks, Mineral Resources also has sizeable mining services and iron ore operations, giving investors broader commodity exposure.

That diversification has proven to be valuable. The company recently delivered its strongest half-year result on record, reporting revenue of $3.1 billion and EBITDA of $1.2 billion.

A standout contributor was the rapidly expanding Onslow Iron project, which has emerged as a major earnings driver alongside improving lithium market conditions. The growing iron ore business helps reduce Mineral Resources’ dependence on lithium alone, making earnings less sensitive to swings in a single commodity.

That doesn’t eliminate risk, however. Both iron ore and lithium prices remain important profit drivers, and weakness in either market could weigh on earnings and investor sentiment.

$5,000 invested in PLS Group

The returns have been even more remarkable for PLS Group shareholders.

A $5,000 investment made 12 months ago would now be worth approximately $20,050, effectively quadrupling an investor’s original capital.

Unlike some of its peers, PLS’ rally hasn’t been driven solely by rising lithium prices. The $18 billion mining giant has also delivered impressive operational growth.

In its latest half-year result, the ASX lithium stock reported revenue of $624 million, up 47% from the previous corresponding period as both realised lithium prices and sales volumes increased.

Underlying EBITDA surged 241% to $253 million, while EBITDA margins expanded dramatically to 41%, compared with just 17% a year earlier.

Its flagship Pilgangoora operation remains one of the world’s largest hard-rock lithium mines, providing significant scale and cost advantages as global demand for battery materials continues to grow.

Like every lithium producer, though, PLS remains exposed to commodity prices. If lithium continues to weaken, profitability could come under pressure despite strong production growth.

Foolish takeaway

The recent pullback is a timely reminder that ASX lithium stocks remain highly leveraged to commodity prices. That said, the underlying businesses continue to strengthen. Production is rising, earnings have rebounded sharply, and major growth projects are progressing.

If lithium prices stabilise – or resume their upward trend – both Mineral Resources and PLS Group could find fresh momentum.

The post $5,000 invested in these ASX lithium stocks a year ago is now worth… appeared first on The Motley Fool Australia.

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• Why is everyone talking about Mineral Resources, A2 Milk and Pro Medicus shares on Thursday?
• Up 218% in a year, Mineral Resources shares sinking today amid mine closure news
• Forget PLS shares, this US-focused ASX lithium share could rise 100%+
• These ASX mining stocks soared 185%+, then tumbled. What now?
• PLS shares drop 5%: What’s driving the move?

Motley Fool contributor Marc Van Dinther 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.

National Australia Bank Ltd (ASX: NAB) shares have pulled back from their highs, and I think the lower price has made the bank a more attractive investment.

The NAB share price is currently around $37.51. At that level, I think investors are getting a reasonable valuation, a good dividend yield, and exposure to one of Australia’s strongest banking franchises.

Here are three reasons I would buy NAB shares now.

The valuation looks reasonable

The first reason is valuation. According to CommSec, consensus estimates suggest NAB could generate earnings per share of $2.43 in FY26 and $2.53 in FY27.

Based on the current share price, that puts the bank on a price-to-earnings ratio of around 15.4 times FY26 earnings and 14.8 times FY27 earnings.

I would not call that incredibly cheap, but it does look like reasonable value for one of Australia’s major banks.

Bank shares have faced pressure as investors weigh higher interest rates, housing market uncertainty, credit quality, and competition. Those risks are worth taking seriously. But NAB remains a large, profitable business with a major role in Australian banking.

At this price, I think the valuation is much easier to justify than it was when the share price was closer to its highs.

The dividend yield is attractive

The second reason is income. CommSec consensus estimates point to dividends per share of $1.70 in FY26 and $1.72 in FY27.

At the current share price, that implies forward dividend yields of roughly 4.5% and 4.6%.

That is a solid starting yield, in my view, particularly for investors looking for passive income from ASX shares.

A $10,000 investment at around $37.51 per share would buy about 267 shares. Based on the forecast FY26 dividend of $1.70 per share, that investment could generate roughly $453 in annual dividends. Based on the FY27 forecast dividend of $1.72 per share, the income would be around $459.

That is before tax and any franking credits.

Dividends are never guaranteed, and banks can adjust payouts if conditions change. But I think NAB’s forecast income looks attractive, especially when combined with the possibility of capital growth over time.

The business banking exposure is useful

The third reason is NAB’s position in business banking.

Australia’s major banks all have large mortgage books, but NAB has long had a strong reputation in business banking. I think that gives it a key point of difference.

Businesses need loans, deposits, transaction accounts, payment services, working capital support, and relationships with bankers who understand their operations. That creates a large pool of customers that can be valuable over many years.

This does not make NAB immune from an economic slowdown. If business confidence weakens or bad debts rise, earnings could come under pressure.

But over the long term, I like banks that are deeply connected to the real economy. NAB has scale, brand strength, customer relationships, and a large deposit base. Those qualities can help it keep generating profits and supporting dividends through different parts of the cycle.

Foolish takeaway

I think NAB shares look attractive at current levels.

The valuation appears reasonable on consensus earnings forecasts, the forward dividend yield is in the mid-4% range, and the bank has a strong position in Australian business banking.

There are still risks from the economy, competition, bad debts, and regulation. But at around $37.51, I think the balance of income, value, and long-term business quality makes NAB shares worth buying now.

The post 3 reasons to buy NAB shares now appeared first on The Motley Fool Australia.

More reading

• Should I buy NAB shares for passive income?
• Here are the top 10 ASX 200 shares today
• Here’s the dividend forecast out to 2027 for NAB shares
• Is the NAB share price good value after crashing 24%?
• Invested in ASX 200 bank shares for dividends? This fundie prefers other stocks

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.

Coles Group Ltd (ASX: COL) shares are not exactly flying under the radar.

The supermarket giant closed Friday’s session at a record high of $24.41, which means investors are not being offered a bargain-basement price.

Even so, I think Coles shares could be worth buying with $10,000.

In an uncertain economic environment, I like the idea of owning businesses that sell products people keep buying. Coles has that defensive quality, and I think that can be valuable even when the valuation is not obviously cheap.

Why Coles appeals to me

Coles is one of the most important retailers in Australia.

Its supermarkets sell food, household essentials, fresh produce, pantry staples, and everyday items that customers need in good times and bad. That does not make the business immune from pressure, but it does give Coles a more reliable demand profile than many discretionary retailers.

The company’s recent third-quarter update showed that momentum is still solid. Supermarket sales revenue increased 4% to $9.8 billion, while comparable sales growth was 3.6%. Excluding tobacco, supermarket sales growth was 5.7%.

I think that is a useful sign. Customers are still shopping at Coles, and the company continues to focus on value, availability, loyalty, and online convenience.

The ecommerce side also looks encouraging, with sales increasing 24.8% and penetration rising to 13.6%. Grocery shopping is still a store-led category, but online ordering and delivery can add another driver of growth if Coles keeps improving the customer experience.

What about the valuation?

The challenge is price. According to CommSec, consensus estimates suggest Coles could generate earnings per share of 90 cents in FY26, 96.6 cents in FY27, and $1.12 in FY28.

At $24.41, that puts the shares on a price-to-earnings ratio of around 27 times FY26 earnings, 25 times FY27 earnings, and 22 times FY28 earnings.

That is not cheap. But I do not think every good investment needs to start with a low multiple. A defensive business with reliable demand, a strong brand, scale, and the ability to keep growing earnings can deserve a higher rating.

The important point is being realistic. Coles may not offer the same upside as a beaten-down growth share. But it can add stability, income, and exposure to essential household spending.

The passive income angle

Coles also offers a useful dividend profile. CommSec consensus estimates point to dividends per share of 75.5 cents in FY26, 82 cents in FY27, and 95.3 cents in FY28.

At the current share price, that implies forward dividend yields of around 3.1%, 3.4%, and 3.9%.

A $10,000 investment at $24.41 would buy about 410 shares. Based on those dividend forecasts, that holding could generate roughly $310 in FY26, $336 in FY27, and $391 in FY28, before tax and any franking credits.

That is not the highest yield on the ASX, but I think it is attractive when paired with Coles’ defensive qualities.

Foolish takeaway

I think Coles shares are worth buying with $10,000, even at a record high.

The valuation means I would not expect explosive returns, and investors need to accept that they are paying up for quality. But I like the defensive nature of the business, the steady demand for groceries, the improving online channel, and the forecast dividend growth.

In a market where the economic outlook still feels uncertain, Coles is the type of ASX share I would be happy to own for the long term.

The post Should I invest $10,000 in Coles shares? appeared first on The Motley Fool Australia.

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• 3 ASX dividend favourites are hitting 52-week highs today. Are investors getting defensive?
• Why Coles shares are a retiree’s dream for FY27
• How to invest in ASX shares when you can’t find stocks to buy
• Woolworths shares vs Coles: Buy, hold, or sell these ASX giants?

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.

Today is ex-dividend day for a large number of ASX 200 shares.

When this happens, it means the rights to the dividend are locked in and new buyers won’t be eligible to receive this payout when it is made.

This means that even if you bought shares today, the rights would stay with the seller and they would receive the dividend on pay day.

So, if you are a shareholder of any of the seven ASX 200 shares named below, you can look forward to a pay check coming your way in the not-so-distant future.

Here’s what you need to know:

APA Group (ASX: APA)

This energy infrastructure company’s shares are going ex-dividend this morning for its 30.5 cents per share final dividend. Eligible shareholders can look forward to receiving this dividend on 16 September. Based on its last close price, this single payout equates to a 2.8% dividend yield.

Centuria Industrial REIT (ASX: CIP)

Industrial property company Centuria Industrial REIT recently declared a 4.2 cents per share quarterly dividend. It will be paying this to its shareholders on 14 August.

Charter Hall Group (ASX: CHC)

Property giant Charter Hall’s shares will be going ex-dividend today for its partially franked 25.8 cents per share dividend. Shareholders can expect to receive this payout at the very end of August.

Dexus (ASX: DXS)

Property developer Dexus recently declared a 17.7 cents per share dividend. This will be paid to eligible shareholders in around two months on 28 August.

Goodman Group (ASX: GMG)

Another ASX 200 share going ex-dividend today is industrial property giant Goodman. It recently declared a 15 cents per share final dividend. This will be paid to eligible shareholders on 26 August. Goodman has now paid out 15 cents per share in dividends every half since 2019.

Mirvac Group (ASX: MGR)

Another property developer that is going ex-dividend this morning is Mirvac. It recently declared a 4.8 cents per share quarterly dividend. Shareholders can look forward to receiving this on 31 August.

Transurban Group (ASX: TCL)

Finally, this toll road giant will be rewarding its shareholders with a 35 cents per share final dividend. They can expect to receive their pay check on 18 August. Based on where this ASX 200 share ended last week, this dividend represents a 2.3% dividend yield.

The post 7 ASX 200 shares going ex-dividend today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Goodman Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group and Transurban Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s been a tough run for S&P/ASX 200 Index (ASX: XJO) gold stocks since the price of the yellow metal hit record highs at the end of January.

As you may recall, on 28 January, the gold price created a stir by setting a new all-time high just north of US$5,420 per ounce. At the time, that saw the gold price up around 93% over the previous 12 months.

But since that high water mark, the gold price and ASX 200 gold stocks have come under heavy pressure.

On Friday, gold was fetching US$3,994 per ounce. That’s down more than 26% since the end of January.

As for the Aussie gold miners, since market close on 29 January, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has tumbled 29%, materially underperforming the 1.8% losses posted by the ASX 200 over this same period.

Why is the gold price in free fall?

After its meteoric rise in 2025, the gold price has tumbled back to earth, in part due to expectations of higher interest rates in many major economies.

That’s particularly relevant for the United States, with the US Federal Reserve now increasingly expected to lift interest rates rather than cut them to combat resurgent inflation in the world’s top economy.

Gold, which pays no yield itself, tends to perform better in low or falling rate environments.

Commenting on the outlook for the gold price, and by connection ASX 200 gold stocks, Commonwealth Bank of Australia (ASX: CBA) head of commodities Vivek Dhar said (quoted by the Australian Financial Review):

A rebound in gold prices is now likely contingent on US inflation and labour market data weakening further. Our view that the Fed needs to raise the Fed Funds rate by 75 basis points from December, which the market is under-pricing, [and] suggests further headwinds to gold futures.

Five ASX 200 gold stocks to weather the storm

A number of leading fund managers said they’ve reduced their holdings in smaller ASX gold explorers in favour of the larger gold producers.

“The gold price has taken an absolute beating. Now is not the time to be going for more speculative gold names, or those that are relatively high cost,” Argonaut’s David Franklyn said (quoted by the AFR).

Franklyn named ASX 200 gold stocks Genesis Minerals Ltd (ASX: GMD), Ramelius Resources Ltd (ASX: RMS), Greatland Resources Ltd (ASX: GGP), and Capricorn Metals Ltd (ASX: CMM) as miners that he’s still optimistic on.

And while his fund has reduced its overall exposure to the gold sector, Acorn Capital portfolio manager Rick Squire expects Bellevue Gold Ltd (ASX: BGL) is well-positioned to outperform. That’s partly due to the ASX 200 gold stock’s lower reliance on ever more expensive diesel following its renewable energy investments.

According to Squire:

We’re looking at companies that have the cash to withstand the dip or, if they are developers, are [at] least fully financed and are in that construction phase. With the gold pullback, there will be a change [in] investor sentiment around what projects are likely to get up and their ability to fund them.

The post 5 ASX 200 gold stocks to buy and hold amid the crashing gold price appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bernd Struben 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.