Author: openjargon

ANZ Group Holdings Ltd (ASX: ANZ) shares may be one of the more popular options for passive income on the ASX due to its scale, perceived stability and sizeable dividend yield.

Banks such as Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB) are also recognised for their payouts.

Banks can offer a good dividend yield thanks to a mixture of a generous dividend payout ratio and a relatively low price/earnings ratio (P/E) ratio.

Let’s take a look at what ANZ could deliver for shareholders in the coming year.

Dividend projection

The ASX bank share could be a source of appealing dividends in the near-term based on what analysts think the bank could deliver.

According to the projection on Commsec, analysts predict that the business could pay an annual dividend per share of $1.66 in 2026. That would be an extremely similar dividend payout as the FY25 payment.

The dividend in the 2027 financial year could be another similar payout, according to the forecast on Commsec.

The prediction currently suggests the ASX bank share could pay an annual dividend per share of $1.66 in 2027. At the time of writing, that translates into a dividend yield of 4.5% excluding franking credits and potentially 6% including franking credits.

I reckon plenty of passive income investors would be happy with that level of dividend yield.

What would it take to unlock that passive income from ANZ shares?

If an investor wanted $1,000 of passive income in 2027 from the ASX bank share, it would require a sizeable investment.

Excluding the franking credits, an investor would need 603 ANZ shares to generate $1,000 of passive income if the payout is $1.66 per share in 2027.

If we include the franking credits as part of the income goal, then an investor may only need to buy 456 ANZ shares.

Is this a good time to invest in ANZ?

Experts are currently mixed on the business, with different recommendations. According to CMC Invest, there are currently eight ratings on the business, with three buy ratings, four hold ratings and one sell rating.

However, the average price target of those eight ratings is $35.29. That means those analysts collectively suggest the ANZ share price could decline by around 4% over the next year. Therefore, ANZ may not be one of the best investments to buy for total returns today.

The post How much must I invest in ANZ shares to earn $1,000 in passive income in 2027? appeared first on The Motley Fool Australia.

More reading

• The 2 top yielding ASX 200 bank stocks revealed (Hint: Not CBA shares)
• Are ASX bank shares a buy in September?
• How much passive income can I earn off a $1 million superannuation balance?
• Another RBA interest rate hike could be just weeks away. Here’s what the big banks think
• How much do you need invested in ASX dividend shares to replace a $90,000 salary?

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 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 BHP Group Ltd (ASX: BHP) share price is an interesting investment proposition to consider, given how much it has risen in recent times. In the last year, the ASX mining share has risen by a whopping 55%.

There are some great reasons why the company has gone up so much. Its operational performance has been strong, and commodity prices have been supportive of the company’s earnings performance.

Not only does the business continue to produce pleasing levels of resources, but it’s possible the company could continue to deliver for shareholders.

Let’s look at how good the latest result was from the business and what could happen next with a $10,000 investment.

Strong FY26 result

The ASX mining share recently reported its result for the 12 months to 30 June 2026.

It revealed that revenue grew by 15% to US$58.8 billion. This helped the company’s underlying operating profit (EBITDA) grow by 27% to $32.9 billion. Underlying attributable net profit increased by 30% to US$13.2 billion, while attributable profit rose by 9% US$9.8 billion.

All of this allowed the business to increase its final dividend to US 99 cents per share and the annual dividend per share was hiked to US$1.72. This full-year dividend comes to US$8.7 billion.

Copper was the key driver of its earnings growth. The average realised price rose 35% to US$5.74 per pound, helping underlying operating profit (EBITDA) rise 48% to US$18.2 billion. Global copper demand is expected to grow by 2.8% in the 2026 calendar year.

BHP expects global copper demand to grow from around 34mt per annum today to more than 50mt per annum by the 2050 calendar year.

There are multiple growth drivers for copper, including traditional economic growth (home building, electrical equipment and household appliances), the energy transition (renewables and electric vehicles) and digital (artificial intelligence and data centres).

BHP said current expectations are that copper demand associated with investment in data centres could grow around “sixfold” between 2024 and 2050, up to around 3mt per annum.

What could happen with a $10,000 investment in BHP shares?

Past performance is not a guarantee of future performance, particularly when it comes to a volatile/cyclical business like an ASX mining share.

According to CMC Invest, there have been 14 ratings on the business within the last three months, with the FY26 result giving investors a significant reason to update their views on the business.

The average price target of those ratings is $58.56, suggesting a possible decline of 13% over the next year. Even the most positive price target suggests the BHP share price will be flat in a year from now.

Given that projected decline, a $10,000 investment could drop in value to $8,700.

Therefore, experts are suggesting the BHP share price isn’t the best place to invest. Instead, investors should look for more compelling opportunities.

The post By September 2027, BHP shares could turn $10,000 into… appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Rio Tinto, PLS Group, BHP shares
• Experts name 2 ASX 200 blue chip shares to buy this week
• Are these 2 top Vanguard ETFs still worth buying today?
• ASX 200 mining shares outperform in final week of earnings season
• Could ASX shares crash? 5 questions every investor should ask now

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

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week in a positive fashion. The benchmark index rose 0.6% to 9,092.3 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set for a poor start to the week following a subdued session on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 37 points or 0.4% lower. In the United States, the Dow Jones edged slightly lower, the S&P 500 fell 0.25%, and the Nasdaq dropped 0.5%.

Oil prices ease

It could be a subdued start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices eased on Friday night. According to Bloomberg, the WTI crude oil price was down 0.15% to US$83.40 a barrel and the Brent crude oil price was down 0.45% to US$88.10 a barrel. This was driven by news of some crude flows ​through the Strait of Hormuz.

Buy 4DMedical shares

4DMedical Ltd (ASX: 4DX) shares could be in the buy zone according to Bell Potter. This morning, in response to the healthcare technology company’s results, the broker has retained its speculative buy rating and $6.00 price target. It said: “4DX enters FY27 with good momentum at large hospital groups in the US. We expect on going revenue traction throughout the course of the year. Maintain Buy (Speculative) rating.”

Gold price sinks

It looks likely to be a poor start to the week for ASX 200 gold shares Capricorn Metals Ltd (ASX: CMM) and Northern Star Resources Ltd (ASX: NST) after the gold price sank on Friday night. According to CNBC, the gold futures price was down 2.9% to US$4,529.9 an ounce. Traders were selling gold in response to increasing US rate hike bets.

ASX 200 shares going ex-dividend

A number of ASX 200 shares are going ex-dividend this morning and could trade lower. Among them are health and safety products company Ansell Ltd (ASX: ANN), mineral sands company Iluka Resources Ltd (ASX: ILU), investment management company Pinnacle Investment Management Group Ltd (ASX: PNI), and rail freight company Aurizon Holdings Ltd (ASX: AZJ). The latter will be paying a 10.5 cents per share dividend to shareholders next month on 23 September.

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

• 5 superannuation mistakes that could shrink your nest egg
• Are ASX bank shares a buy in September?
• ASX 200 mining shares outperform in final week of earnings season
• Why gold stocks have regained their shine: Expert
• Could ASX shares crash? 5 questions every investor should ask now

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has recommended Ansell. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Pro Medicus Ltd (ASX: PME) share price has been one of the stronger performers over the last six months, rising by 44%. It’s a valid question to ask whether Pro Medicus can rise much further.

Pro Medicus describes itself as a leading healthcare informatics company. It provides a full range of medical imaging software and services to hospitals, imaging centres and healthcare groups worldwide.

It offers a leading suite of radiology information systems (RIS), picture archiving and communication system (PACS), artificial intelligence and e-health solutions.

Strong recovery

Pro Medicus suffered a huge decline last year and early this year as the market worried about what AI could mean for the company’s future. However, the market seems to be a bit more positive about the situation.

It helps that the business continues to report an impressive set of numbers with its financials.

In the FY26 result, revenue grew 22.9% to $261.7 million, underlying operating profit (EBIT) grew 24.4% to $196.1 million and underlying net profit after tax (NPAT) rose 24.1% to $144.7 million.

The company has a significant presence in the US, so changes in foreign exchange rates can impact what it reports in Australian dollars. FY26 changes in currency hurt the financials.

If currency rates hadn’t changed, revenue would have increased 28.4% to $273.5 million, underlying EBIT would have gone up 30.6% to $206 million and underlying NPAT would have risen 32.5% to $154.5 million.

The impressive profit growth allowed the company to hike its payout by 25.5% to 37 cents per Pro Medicus share.

The future looks promising considering the underlying EBIT margin rose again to 74.9% in FY26, up from 74% in FY25. It continues to win sizeable contracts at an impressive pace, which is helping drive revenue.

Its latest contract win was a seven-year A$25 million contract with Valley Health, which includes the relatively new cardiology imaging offering. In that announcement, Pro Medicus said its pipeline is strong and spans all market segments.

How much could the Pro Medicus share price rise in the next year?

According to CMC Invest, there have been 10 analyst ratings on the business within the last three months.

A price target tells us where an analyst thinks a share price could go in the next 12 months. The average price target of those 10 ratings is $220.14, according to CMC Invest, suggesting a possible rise of 21% over the next year.

The most optimistic price target is $240, suggesting a possible rise of 32%.

So, analysts are excited about the future of the business and it could still be one to watch.

The post How much could the Pro Medicus share price rise in the next year? appeared first on The Motley Fool Australia.

More reading

• Warren Buffett’s playbook: 3 cheap ASX shares that could soar up to 60%
• 3 ASX shares I’d buy for the next 15 years
• Buy, hold, sell: Pro Medicus, Fortescue, CBA shares
• ASX 200 healthcare shares soar 9% amid notable FY26 reports from CSL, Pro Medicus
• Why Guzman Y Gomez, Pro Medicus and James Hardie shares are turning heads on Friday

Motley Fool contributor Tristan Harrison has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are not many ASX dividend stocks that I’d prefer to own rather than receive the cash flow of the Age Pension. WCM Quality Global Growth Fund (ASX: WCMQ) is one of the passive income choices I’d pick.

The exchange-traded fund (ETF) may not be as famous as names like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) or Rio Tinto Ltd (ASX: RIO). But, for various reasons, I think the WCMQ ETF offers investors more positives and potentially stronger long-term returns.

For me, there are three reasons to like the investment so much.

Excellent and diversified portfolio

WCM is a fund manager that’s based in Laguna Beach, California. That’s deliberately a long way from the culture of Wall Street in New York.

The investment strategy of the fund is to invest in a portfolio of high-quality shares from across the world.

There are two main factors that go into deciding whether the business is high-quality for this ASX dividend stock’s portfolio.

First, WCM wants to see that the business has an expanding economic moat (improving competitive advantages). For WCM, the direction of the moat is more important than the actual size of the moat.

One of the main ways that WCM judges whether a business is seeing a strengthening economic moat is with a rising return on invested capital (ROIC). This shows that the company’s economics are getting stronger.

Second, WCM analyses whether the business has a corporate culture that supports improvement of the economic moat.

The portfolio is truly global – it’s not massively focused on the US share market. Its portfolio is invested across the Americas, Europe, Asia Pacific and elsewhere.

Its holdings regularly change, but its sector exposure typically focuses on IT, industrials and healthcare names. It also has positions in financials, consumer discretionary and others.

Great passive income

The WCMQ ETF offers investors a solid distribution yield, which is based on its net asset value (NAV).

The fund targets a distribution yield of 5%, which I’d say is a solid starting yield and I think the payments will rise over time thanks to WCMQ ETF’s pleasing investment track record.

A rising NAV over time should lead to growing payouts for investors.

Capital growth

In its July 2026 update, the ASX dividend stock revealed that its portfolio had returned an average of 15.2% per year since the ETF’s inception in August 2018.

With that level of return, the fund has been able to deliver both its pleasing dividend yield and the retained returns have helped grow the WCMQ ETF unit price over the long-term – it has approximately doubled in the last eight years.

Past performance is not a guarantee of future performance, of course, but I’m optimistic the fund can deliver pleasing returns, including capital growth. That’s why I think the ASX dividend stock is so appealing.

How to match the Age Pension with the ASX dividend stock

Currently the Age Pension is paying a maximum of approximately $1,200 per fortnight, though this will increase in the coming weeks. That translates into annualised income of $31,200.

The ETF expects to pay an annual distribution of 53.6 cents per security in FY27. That translates into needing 58,209 WCMQ ETF units to unlock the same level of cash payment. I’m also optimistic the ETF’s payout can grow at a faster pace than the Age Pension in the coming years. However, I’d also want to diversify my portfolio, rather than relying on one idea.

The post 58,209 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

More reading

• 2 ASX passive income ideas I’d use to generate $300 a month in 2027
• How much do I need to retire on $120,000 a year at 55?
• How much is needed in superannuation to target a $5,500 monthly passive income?
• How much is needed in superannuation to target a $40,000 annual passive income?

Motley Fool contributor Tristan Harrison has positions in Wcm Quality Global Growth Fund. 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.

Serious money continues to flow into two of the ASX’s most popular Vanguard exchange-traded funds (ETFs). Vanguard Australian Shares Index ETF (ASX: VAS) and Vanguard MSCI International Shares ETF (ASX: VGS) now collectively manage rougly $40 billion in funds under management.

These two ASX ETFs form the backbone of countless long-term portfolios, offering broad exposure to Australia, global markets and the world’s largest economy.

But after gains and shifting global conditions, investors may be asking whether they still deserve a place in a modern portfolio.

Aussie classic

The Vanguard Australian Shares Index ETF remains the core domestic building block for many investors, tracking the performance of the 300 ASX’s largest companies.

The popular Vanguard ETF has delivered around 5% in 2026 and 2% over the past 12 months, reflecting steady but modest growth compared to global markets.

Two of its largest holdings include Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP), giving investors exposure to both financials and resources.

The strength of VAS lies in its diversification across Australia’s leading companies and its consistent dividend income stream. Many Australian shares pay dividends, and the VAS ETF passes those distributions on to its investors.

However, risks remain, particularly its heavy concentration in banks and resources, which can make returns heavily dependent on domestic economic conditions and commodity cycles.

True global reach

The Vanguard MSCI International Shares ETF provides broad global diversification outside Australia and has returned around 8% over the past year.

This Vanguard ETF invests across developed markets, reducing reliance on the Australian economy and offering exposure to a wide range of industries and geographies.

Two of its largest holdings are Apple Inc (NASDAQ: AAPL) and NVIDIA Corp (NASDAQ: NVDA), giving investors exposure to both established tech leaders and the high-growth semiconductor sector.

VGS is often viewed as a long-term portfolio stabiliser due to its global reach. However, it still carries risks associated with international market cycles, geopolitical uncertainty, and currency movements, all of which can affect returns for Australian investors.

Foolish takeaway

Despite decent recent performance across the two funds, these Vanguard ETFs continue to play distinct and complementary roles in long-term portfolios. VAS offers domestic stability and dividends and VGS delivers global diversification.

For many investors, the combination remains a powerful foundation for building wealth over time. With a single purchase, an investor can gain exposure to a broad portfolio of established Australian and international businesses, then keep investing and let those companies compound over time.

But understanding each ETF’s risks and exposures is essential in deciding whether they still deserve a place in your portfolio today.

The post Are these 2 top Vanguard ETFs still worth buying today? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Rio Tinto, PLS Group, BHP shares
• Experts name 2 ASX 200 blue chip shares to buy this week
• By September 2027, BHP shares could turn $10,000 into…
• Buy, hold, sell: Commonwealth Bank, Goodman Group, CSL shares
• The 2 top yielding ASX 200 bank stocks revealed (Hint: Not CBA shares)

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Nvidia. The Motley Fool Australia has recommended Apple, BHP Group, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Australia’s cost-of-living debate lives almost entirely in the present tense. 

Grocery bills. Energy prices. Mortgage repayments. Rent dues.

Retirement planning often needs the opposite treatment. Targets are set using today’s prices, even though the money may not be needed for another 10, 15 or 20 years.

That is why some of the most damaging superannuation mistakes do not look dramatic. They are small assumptions that quietly compound in the wrong direction.

1. Treating a benchmark as a personal plan

The latest ASFA Retirement Standard estimates that a comfortable retirement costs around $55,923 a year for a single person and $78,566 for a couple.

These figures are useful starting points, but they are not personal forecasts.

Housing, travel, healthcare and family commitments can produce very different outcomes. ASFA’s related lump-sum estimates also assume retirees own their home, draw down their capital and receive some Age Pension support.

A benchmark can tell you what an average retirement might cost today. It cannot decide what your retirement will look like.

2. Planning entirely in today’s dollars

Suppose you want retirement income of $6,000 a month, or $72,000 a year, in today’s dollars.

If retirement is 15 years away and inflation averages 3.5% (in line with the latest figure), funding the same lifestyle would require approximately $120,625 a year. That is more than $10,000 a month.

This is a stress test rather than an inflation forecast. The Reserve Bank of Australia targets inflation of 2% to 3%.

Even at the midpoint of 2.5%, however, the equivalent income rises to approximately $104,277. That is more than $32,000 above the original nominal target.

Inflation does not merely increase the required balance. It moves the destination while you are still travelling towards it.

3. Becoming defensive too early

Reaching retirement does not mean an investment horizon suddenly falls to zero. A portfolio may still need to fund 20 or 30 years of spending.

Growth assets carry real volatility. The S&P/ASX 200 Index (ASX: XJO) has endured plenty of difficult years, and another downturn will eventually arrive.

However, removing too much growth exposure too early can create a different risk: a portfolio that struggles to keep pace with inflation.

The appropriate balance will differ for every investor. The important point is that market volatility and lost purchasing power are both risks.

4. Ignoring a small fee difference

Superannuation fees rarely feel urgent because they are deducted gradually. Compounding makes them expensive.

Consider a $400,000 balance invested for 15 years with no additional contributions. At a net annual return of 6.5%, it would grow to approximately $1.03 million.

Reduce that net return to 6%, with everything else unchanged, and the ending balance falls to roughly $958,600.

That half-percentage-point difference costs approximately $70,000 before allowing for tax, insurance premiums or changing market returns.

Put more bluntly: small recurring costs deserve investors’ attention because the compounding effect can be destructive to your capital.

5. Assuming every contribution has arrived

The final mistake is the least glamorous. Many employees rarely check whether their superannuation has actually been paid.

The ATO’s estimate puts the net super guarantee gap at approximately $6.25 billion for 2022–23, equal to 6% of the super employers were expected to pay.

Payday super, which began on 1 July 2026, should make missing contributions easier to identify. Employer contributions must generally reach an employee’s super fund within seven business days of payday rather than being paid quarterly.

That improves visibility, but it does not remove the need to check. Comparing payslips with a super account can reveal missing or incorrect payments before years of potential returns are lost.

Foolish takeaway

None of these mistakes announces itself with a market crash or frightening headline.

Instead, there is a benchmark treated as a plan, an inflation assumption that proves too optimistic, a portfolio that becomes cautious too soon, fees that look harmless and contributions that nobody checks.

Each gap can appear small in isolation. Over 15 years, the arithmetic becomes much less forgiving.

Markets will always remain uncertain. However, assumptions, fees, asset allocation and whether contributions arrive are variables investors can still monitor.

That may be considerably more valuable than chasing a perfect retirement number.

The post 5 superannuation mistakes that could shrink your nest egg appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Are ASX bank shares a buy in September?
• ASX 200 mining shares outperform in final week of earnings season
• Could ASX shares crash? 5 questions every investor should ask now
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Leigh Gant 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.

S&P/ASX 200 Index (ASX: XJO) shares rose 0.37% last week and are up 4.2% in the calendar year to date (YTD).

Today is the final day of earnings season.

We will hear from Michael Hill International Ltd (ASX: MHJ) and Monash IVF Group Ltd (ASX: MVF) today.

Meanwhile, if you’re keeping an eye on dividend opportunities, there are 37 ASX shares going ex-dividend this week.

Let’s start the day with some new ratings from the experts (courtesy The Bull). 

CSL Ltd (ASX: CSL)

CSL shares rose 2.39% to $172.32 apiece last week, and are up 0.2% in the YTD.

Damien Nguyen from Morgans has a buy rating on this ASX 200 healthcare share. 

Nguyen said: 

CSL is a global healthcare leader with strong competitive advantages across plasma therapies, vaccines and specialty medicines.

Demand for its products remain largely independent of economic conditions.

In our view, the latest full year result in 2026 is generating confidence that repeated earnings downgrades are behind CSL.

With defensive earnings, global market leadership and attractive long term growth prospects, we view CSL as an appealing investment opportunity.

Goodman Group (ASX: GMG)

The Goodman Group share price rose 2.38% to $27.92 last week, and is down 9% for the YTD.

Jonathan Tacadena from MPC Markets has a hold rating on this ASX 200 property share. 

Tacadena said: 

Goodman Group is a global industrial property and data centre developer. It delivered an operating profit of $2.675 billion in full year 2026, up 15.7 per cent on the prior corresponding period.

Data centres drove work in progress to $19.7 billion across 50 projects in 12 countries.

Property investment income of $722.1 million was up 7 per cent. Occupancy remained high at 95.6 per cent.

The company is targeting earnings per share growth of 9 per cent in full year 2027.

Earnings momentum and management quality justify holding the position.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price fell 0.47% to $157.25 last week, and is down 2% for the YTD.

Nguyen has a sell rating on this ASX 200 bank share, and said:

The CBA continues to deliver resilient earnings, strong capital levels and industry leading returns, reinforcing its position as Australia’s premier banking franchise.

However, the earnings growth outlook remains relatively modest as intense competition and margin pressure possibly weigh on profitability.

Despite these headwinds, the stock trades at a significant premium to its peers and historical valuations.

With limited scope for earnings upgrades, we believe the share price leaves little room for disappointment.

The post Buy, hold, sell: Commonwealth Bank, Goodman Group, CSL shares appeared first on The Motley Fool Australia.

More reading

• Experts name 2 ASX 200 blue chip shares to buy this week
• Are these 2 top Vanguard ETFs still worth buying today?
• The 2 top yielding ASX 200 bank stocks revealed (Hint: Not CBA shares)
• Are ASX bank shares a buy in September?
• How to build an ASX portfolio you do not need to check every day

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

If it’s market beating passive income you’re after, then you may be wondering which of the dividend paying S&P/ASX 200 Index (ASX: XJO) bank stocks offer the highest dividend yields.

We’ll answer that question below, as well as looking at how their share prices have performed over the past year.

When you’re on the hunt for higher yielding ASX dividend shares, it’s important to have a look at those share price trends as well.

With that said…

Tapping the Aussie banks for passive income

Over the last 12 months, Commonwealth Bank of Australia (ASX: CBA) has declared a total of $5.05 a share in fully franked dividends.

At the recent CBA share price of $156.30, that sees CommBank shares trading on a fully franked dividend yield of 3.2%. The CBA share price is down around 10% since this time last year.

Over the last 12 months, National Australia Bank Ltd (ASX: NAB) has paid out two fully franked dividends totalling $1.70 a share.

At the recent NAB share price of $38.41, the ASX 200 bank stock trades on a fully franked dividend yield of 4.4%. The NAB share price is down around 11% in a year.

Over the last 12 months, ANZ Group Holdings Ltd (ASX: ANZ) has paid out $1.66 a share in partly franked dividends.

At the recent share price of $36.65 ANZ shares trade on a partly franked dividend yield of 4.5%. Bucking the trend, ANZ shares are up 8.8% in a year.

Over the last 12 months, Westpac Banking Corp (ASX: WBC) has paid out $1.54 a share in fully franked dividends.

At the recent Westpac share price of $33.91, Westpac trades on a fully franked 4.5% dividend yield. Westpac shares are down 12.9% in 12 months.

These are the top two yielding ASX 200 bank stocks

Over the past 12 months, Bendigo and Adelaide Bank Ltd (ASX: BEN) has declared 63 cents a share in fully franked dividends. At the recent Bendigo Bank share price of $10.61, this ASX 200 bank stock trades on a fully franked dividend yield of 5.9%.

Bendigo Bank shares are down around 21% in a year.

Over the past 12 months, Bank of Queensland Ltd (ASX: BOQ) paid out a total of 55 cents a share in fully franked dividends. That includes the special capital return dividend the bank paid out on 24 August.

At the recent share price of $6.42, this sees Bank of Queensland shares trading on a fully franked dividend yield of 8.6%. Even excluding the special dividend, the stock still trades on a fully franked 6.2% yield, making this the highest yielding ASX 200 bank stock.

Bank of Queensland shares are down around 11% in 12 months.

The post The 2 top yielding ASX 200 bank stocks revealed (Hint: Not CBA shares) appeared first on The Motley Fool Australia.

More reading

• Are ASX bank shares a buy in September?
• Sell alert! Why this expert is calling time on Westpac and CBA shares
• Could ASX shares crash? 5 questions every investor should ask now
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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 positions in and has recommended Bendigo And Adelaide Bank. 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 rough month for S&P/ASX 200 Index (ASX: XJO) bank shares, with declines across the board reversing many gains made earlier this year.

It looks like investor sentiment has turned negative amid concerns about falling mortgage demand, a weakening housing market, and tight competition squeezing margins.

It didn’t help that inflation data came in higher than expected in August, sending major banks into a tailspin. Recent July inflation data showed underlying inflation remained at 3.6%, above the Reserve Bank’s 2% to 3% target. The update has prompted several major banks to forecast another hike as early as September.

What happened to the ASX 200 big four major banks in August?

Australia’s banking sector is dominated by the big four banks: Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), and ANZ Group Holdings Ltd (ASX: ANZ).  

Together, they make up around a quarter of the ASX 200 Index by market capitalisation. 

There was a flurry of results announcements from the ASX major banks this month, which didn’t exactly instil confidence.

CBA reported a record cash profit, while NAB, Westpac and ANZ also delivered resilient quarterly earnings. However, all four majors showed signs of weaker mortgage demand.

At the time of writing, with only a couple more trading days left of the month, CBA shares are changing hands at $155.68 a piece. The ASX 200 major bank’s shares have fallen around 12% in August. 

NAB shares are trending lower at the time of writing, down around 8% over the month to $38.06 per share.

ANZ shares are down around 2% for the month of August and are changing hands at $36.54 per share at the time of writing.

Meanwhile, Westpac shares are trading for $33.83 each, having fallen around 11% throughout the month.

What about the mid-tier banks?

It’s more of the same for ASX 200 mid-tier banks too.

Bendigo and Adelaide Bank Ltd (ASX: BEN) fell around 8% to $10.50, at the time of writing.

Bank of Queensland Ltd (ASX: BOQ) shares have fallen a slightly lesser 4% to a current trading price of $6.38 each. 

While Macquarie Group Ltd (ASX: MQG) shares suffered the least, they are still in the red for the month, at the time of writing. The ASX bank shares are down around 1% for the month and trade at $251.59 per share.

Which ASX bank shares are a buy for September?

Macquarie shares were the least affected by the ASX bank stock sell-off in August, and brokers are bullish on the prospect of a near-term rebound. TradingView data shows that the majority (nine out of 12) have a buy/strong buy rating on Macquarie shares. The average $268.69 target price now implies a potential upside of around 7% at the time of writing.

Which ASX bank shares to brokers rate as a hold?

TradingView data shows the majority of brokers have a hold rating on ANZ shares. But the $35.92 average target price implies a potential 2% downside at the time of writing.

The data also shows the majority of brokers rate NAB shares as a hold. The $38.07 average target price is largely flat relative to the trading price at the time of writing, with a small potential 0.2% upside ahead.

Brokers are also neutral on Bendigo Bank shares. TradingView data shows that the majority have a hold rating, but again, the $10.33 average target price implies a potential 2% downside at the time of writing.

And which ones have a sell recommendation?

Then there are the ASX bank shares that brokers are most bearish on.

CBA shares still the least favoured ASX bank stock. TradingView data shows the majority have a strong sell rating on the banking giant’s shares. The latest $127.86 target price implies a potential 18% downside ahead for investors, at the time of writing. 

The majority also have a sell rating on Westpac shares. The latest $33.38 average target price now implies a potential 1% downside, according to TradingView data.

BOQ shares are also expected to keep falling. Most brokers rate the ASX bank as a sell, and the $6.09 average target price on TradingView now implies around a 5% downside ahead.

The post Are ASX bank shares a buy in September? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.