Author: openjargon

The ASX dividend share Future Generation Australia Ltd (ASX: FGX) could be one of the best choices that Aussie retirees could make. It offers numerous benefits to investors focused on passive income, as well as people who want diversification.

Future Generation Australia is a name I’ve had in my portfolio for several years already and I plan to continue holding it for a few different reasons.

Let’s look at why it’s such a compelling reason for retirees to buy for the long-term.

Diversification

Future Generation Australia is a listed investment company (LIC) that is invested in the funds of fund managers like Paradice, L1 Group Ltd (ASX: L1G), Wilson Asset Management, Vinva, Eley Griffiths and so on.

All of those find managers work for free so that Future Generation Australia can donate 1% of its net assets each year to youth charities, including Giant Steps, Mirabel Foundation, Raise, Karinyahouse and Lighthouse.

By being invested in so many different fund managers, the ASX dividend share gives investors exposure to more than 430 businesses.

I think it really ticks the diversification box, while also giving more market capitalisation diversification.

Around 19% of the portfolio is invested in companies outside of the S&P/ASX 300 Index (ASX: XKO), showing that the LIC can give exposure to some of the smaller and more growth-orientated stocks in Australia – I think this is a key reason why Future Generation Australia’s portfolio has beaten the return of the S&P/ASX All Ordinaries Accumulation Index (ASX: XAOA) by an average of around 1% per year.

Large dividend yield

One of the main reasons to like this ASX dividend share is its strong dividend yield. There are few businesses that I’d be more willing to invest in for a large dividend yield than Future Generation Australia.

The business expects to pay an annual dividend per share for 2026 of 7.6 cents. At the time of writing, that translates into a grossed-up dividend yield of 8%, including franking credits.

In my view, that’s a far better yield than what term deposits and most other ASX blue-chip shares have to offer.

Growing payouts

Another reason for retirees to love this business is that it has regularly increased its annual dividend for investors. It has increased its annual payout each year since 2015, so 2026 is more than a decade of increases.

Dividend growth is not guaranteed, of course, but with Future Generation Australia’s impressive track record and profit reserve of 41.8 cents per share, I think it’s well positioned to continue growing dividends in the next few years.

Over the long-term, I think Future Generation Australia can continue to deliver rising payouts for retirees and other shareholders.

The post Why this ASX dividend share is a retiree’s dream for 2026 appeared first on The Motley Fool Australia.

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• $1,000 buys 735 shares in an incredibly reliable ASX dividend stock

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia. 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.

Westpac Banking Corp (ASX: WBC) shares usually come with a pleasing level of passive income, more than what someone could get from a term deposit.

It’s a good idea to remember that Westpac wants to keep shareholders happy, so dividends are likely to keep flowing unless something goes really wrong, like we saw at the start of 2020.

Westpac is one of the leading ASX bank shares, along with names like Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Macquarie Group Ltd (ASX: MQG) and ANZ Group Holdings Ltd (ASX: ANZ).

By owning enough Westpac shares, an investor could generate $1,000 of passive income, or even more.

What would it take to create $1,000 of passive income?

Westpac’s dividends have been stable (with a little bit of growth) over the last couple of years. I think it’s likely the ASX bank share will aim to continue gradually increasing its payouts in the coming years.

According to Commsec’s projections, Westpac is forecast to slightly increase its annual payout in FY27 to $1.55 per share. That translates into a grossed-up dividend yield of 6.1% with franking credits and 4.2% without.

If an investor wanted to receive $1,000 of dividend income, it’d take 646 Westpac shares. If we include the franking credits as part of the income, it’d take 452 Westpac shares to generate that level of income based on the projected payout for FY26.

At the time of writing, that means an investor would need to invest approximately $23,600 or $16,500, depending on whether franking credits are included.

Is this a good time to invest in Westpac shares?

Analysts are not convinced that the Westpac share price is good value, despite the fact that it’s down more than 10% since the 2026 high in April 2026.

According to CMC Invest, there have been eight analyst ratings on the ASX bank share within the last three months, with three of them being holds and five of them being sells. In other words, not a single buy recommendation among them.

The average price target from those analysts is $32.84, implying a possible decline of 10% from where it is at the time of writing. Therefore, the ASX bank share may not be a great investment to consider today.

According to the projection on CMC Invest, the Westpac share price is now valued at around 18x FY26’s estimated earnings, at the time of writing.

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

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• ANZ, NAB, Westpac and CBA shares: Brokers rate 2 a sell, and 2 a hold

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

CSL Ltd (ASX: CSL) and Telstra Group Ltd (ASX: TLS) shares offer investors two very different paths.

One is working through a difficult reset, while the other continues to deliver the steadier performance investors expect from a defensive blue chip.

If I could buy only one today, which would I choose?

The case for Telstra shares

I can see plenty to like about Telstra.

Connectivity has become essential to how Australians work, communicate, shop, travel, and access entertainment. That gives the company a level of demand that many businesses would love to have.

Its mobile division remains the main attraction for me. Telstra has continued growing mobile revenue as customers choose its network and accept higher prices, while cost reductions have also supported earnings.

I also value the income profile. Telstra has been growing its dividend, and its cash flow gives investors a degree of stability that CSL cannot currently match.

The trade-off is the valuation. At a share price of around $5.07, Telstra trades on a price-to-earnings ratio of approximately 25.6 times estimated FY26 earnings of 19.8 cents per share. The multiple remains around 25.4 times based on the FY27 consensus estimate of 20 cents.

That feels quite full when consensus forecasts suggest very little earnings growth between those years.

Why CSL shares look more compelling

CSL shares are trading around $122.61, compared with consensus earnings estimates of $8.22 per share in FY26 and $8.36 in FY27.

That places the biotechnology company on price-to-earnings ratios of approximately 14.9 times and 14.7 times, respectively.

Their sectors and earnings profiles are different, so those multiples need context. But even with that caveat, the gap is hard to ignore.

CSL is cheaper because confidence has collapsed.

Management has reduced its outlook, the Vifor acquisition has underperformed, and growth initiatives are taking longer to improve the financial results. The company has also faced challenges involving US immunoglobulin inventories, albumin pricing in China, research productivity, a change of CEO, and operating complexity.

Those problems could continue testing shareholders. However, the current valuation appears to reflect a deeply pessimistic view of what comes next.

CSL still owns a global plasma collection and manufacturing network that has taken decades to build. Demand for immunoglobulin therapies continues to grow, while large numbers of potential patients remain undiagnosed or untreated.

Management is also simplifying the organisation, improving plasma and manufacturing efficiency, and targeting substantial annual savings by FY28.

The recovery may take time, but I don’t think CSL needs to return immediately to its former market valuation for shareholders to do well from here. Better execution and a return to dependable earnings growth could be enough to change sentiment considerably and support a re-rating.

Which share would I buy?

Telstra would be my choice for an investor who prioritises defensive earnings and dividends.

For my own portfolio, I would buy CSL shares.

The biotech carries greater uncertainty, and another disappointment could send the share price lower. In return for accepting that risk, investors are being offered a much cheaper valuation and what I believe is considerably more upside if conditions improve.

Foolish takeaway

Telstra is doing many of the things shareholders would want to see, but its valuation already gives the company credit for that steadiness.

CSL is being priced as though its recent problems will weigh on the business for years. That could happen, although I think the strength of its core operations gives it a credible route back to growth.

I would be happy to own both shares. But choosing just one at current prices, I think CSL offers the more compelling balance between risk and potential reward.

The post CSL vs Telstra shares, which should I buy? appeared first on The Motley Fool Australia.

More reading

• I’d listen to Warren Buffett and buy cheap ASX shares
• How to build an ASX dividend portfolio that keeps paying you for decades
• Down 50%+: Are these ASX healthcare shares finally worth buying?
• Could CSL shares double from here? Here’s what the experts think
• How much is needed in superannuation to target a $100,000 annual passive income?

Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended CSL. 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 has dropped more than 10% since mid-June, as the chart below shows, which has boosted the dividend yield.

BHP has been an excellent dividend pick over the last decade, with the ASX mining share benefiting from various times of higher iron ore prices. Even an iron ore price of US$100 per tonne can allow it to make good earnings.

The company’s main commodities are iron ore and copper, though it also produces coal and is building a potash project in Canada called Jansen.

Following the company’s recent valuation decline, I think it’s worthwhile to consider the ASX mining share.

Dividend projection

According to the forecast on Commsec, the business could deliver a relatively pleasing dividend payout for shareholders.

The business is projected to pay an annual dividend per share of A$2.148 in the 2026 financial year. At the time of writing, this translates into a forward grossed-up dividend yield of 5.4%, including franking credits.

That’s not the biggest dividend yield on the ASX and the BHP dividend yield has been higher in recent years. That’s partly because the BHP share price has gone up so much in recent times, it’s (still) up 25% this year and up 47% in the past 12 months.

The higher the share price goes, the lower the dividend yield, assuming the dividend payment stays the same.

Is the BHP share price a buy?

There’s much more to the appeal of a business than just the passive income on offer.

The valuation also needs to make sense; otherwise, capital losses could offset the passive dividend income.

The latest update from the ASX mining share was its operating update for the period ending 30 June 2026.

Its most important commodities are iron ore and copper, so I’ll focus on those.

In the three months to June 2026, copper production was 491.9k, up 3% quarter-over-quarter but down 5% year-over-year. Iron ore production was 68.1mt, up 8% quarter-over-quarter, but down 3% year-over-year.

What was perhaps even more interesting was the guidance it gave. BHP produced 1.95mt of copper in FY26, but only expects between 1.65mt to 1.8mt of copper in FY28 – a sizeable decline. FY27 iron ore production is expected to be between 260mt to 272mt, down from 264.7mt in FY26.

Lower copper production is not ideal, given its plans to ramp up production in the coming years to take advantage of strong demand.

Even so, both the copper price and iron ore price are at strong enough levels that the business can generate strong profits. However, at the current elevated BHP share price, I’m not sure it’s an attractive buy.

Broker analysts seem to have a similar view. According to CMC Invest, of 14 recent ratings on the ASX mining share, two were buys and 12 were holds. The average price target is $59.08, suggesting only a slight rise (at the time of writing) over the next 12 months.

There are quite a few other ASX shares I’d rather buy for dividends.

The post Is the BHP share price a buy for its 5% dividend yield? appeared first on The Motley Fool Australia.

More reading

• BHP shares soared 62% in FY26. Can they keep climbing?
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• How to build an ASX dividend portfolio that keeps paying you for decades
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• 5 things to watch on the ASX 200 on Monday

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.

BHP shares were one of the standout performers on the ASX 200 last financial year.

The BHP share price soared 62% in FY26 to finish at $59.40 on 30 June.

That was a spectacular run for the Australia’s largest company.

The question now is whether the shares can keep climbing in FY27.

Let’s take a look.

What drove BHP shares higher in FY26

Two forces did most of the heavy lifting.

First, commodity prices ran hot: the copper price rose 18% over FY26 and hit a record US$6.60 per pound in May.

Iron ore prices also climbed by around 7%.

Second, investors rotated heavily into mining stocks.

That combination pushed BHP shares to a new high in FY26.

Yet there is a bigger story here: BHP is now the world’s largest copper producer.

Copper made up more than half of the company’s underlying EBITDA in the first half of FY26. Copper is essential to electrification, data centres, and the broader energy transition. All of these are global megatrends that can be expected to only intensify in future years.

For the first time in BHP’s history, copper earnings exceeded those of iron ore.

Can BHP shares keep climbing?

After such a big run, the easy gains may be behind us.

Most brokers are now sitting on the fence.

Morgans recently reiterated a hold rating and lifted its target from $54.90 to $59.80. Macquarie also has a hold rating with a $60.20 target. Overall, the broker consensus target sits near $61.44.

Based on recent prices, that implies only modest single-digit upside.

The dividend still appeals, though. CommSec estimates dividends of $2.10 per share in FY26, a yield of around 3.6%.

BHP’s balance sheet also remains strong, with low net debt.

However, not everything is smooth sailing. A review of the Jansen potash project in Canada resulted in a hefty cost blowout.

There is also the ongoing concern around industrial action at BHP’s Pilbara iron ore operations.

Investors will get more clarity when the company reports its FY26 results on 18 August.

Foolish takeaway

BHP shares have had a brilliant run.

Copper’s growing role in the global economy also gives investors a long-term tailwind.

But after a 62% gain, brokers see only limited near-term upside.

For patient investors, the dividend and copper leverage may still appeal.

Just don’t expect BHP shares to repeat their FY26 heroics every single year.

The post BHP shares soared 62% in FY26. Can they keep climbing? appeared first on The Motley Fool Australia.

More reading

• Why I think BHP is the best ASX mining share
• How to build an ASX dividend portfolio that keeps paying you for decades
• What is Morgan’s updated view on Rio Tinto and BHP shares?
• 5 things to watch on the ASX 200 on Monday
• Buy, hold, sell: BHP, CBA, and Rio Tinto shares

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

I think the best way to invest in ASX shares is for the long-term, with a decade or more being my preferred investment time horizon.

If investors hold for that length of time, it gives compounding the best opportunity to deliver results over the long-term.

Given how rapidly the world is changing in relation to technology and AI, I’m less optimistic about some ASX tech stocks than I used to be. That’s partly why I think the investments below could be strong ASX share picks for the long term.

Guzman Y Gomez Ltd (ASX: GYG)

GYG is one of the best quick service restaurant (QSR) businesses in Australia, in my view. At the end of March 2026, it had 242 Australian locations, along with 23 Singapore restaurants and five Japanese locations.

The company is aiming for 1,000 Australian restaurants within the next 20 years, which could mean significant network sales growth and excellent scale benefits.

In the third quarter of FY26, the company reported that Australian total network sales rose by 19.7% to $320.4 million, and Asian network sales grew by 15% to $21.5 million.

The business is growing network sales thanks to both solid comparable sales growth and an expanding mutlinational network.

Over the next decade, I expect the company to significantly increase its restaurant network, increase its market awareness and boost profit margins. I believe the market is underestimating how much the business could grow network sales overseas, which could unlock a lot of royalty income – its Asian operations are under a master franchise agreement.

According to the company, it’s expecting its Australian and Asian operations to grow their underlying operating profit (EBITDA) by 29% in FY26 to $85 million, showing an increase in its profit margins.

According to the projection on Commsec, the GYG share price is valued at 33x FY28’s estimated earnings, which I think is an appealing price for this fast-growing ASX share.

Global X S&P World Ex Australia GARP ETF (ASX: GARP)

Another investment that I want to highlight is this exchange-traded fund (ETF), which aims to give investors exposure to a portfolio of global businesses that fit the bill when it comes to the investing strategy ‘growth at a reasonable price’ (GARP).

When you buy growing businesses at a good price, it can lead to excellent investment returns over the long-term.

There are three different things that the GARP ETF looks for to include in its portfolio of 250 companies across different countries and sectors.

It wants to see growth characteristics, with a good pace of 3-year sales and earnings growth.

Second, it wants to see ‘value’. That is identified by the price/earnings (P/E) ratio.

Finally, this GARP strategy involves looking at the quality of these businesses. That includes looking at the financial leverage (debt levels) and return on equity (ROE). ROE tells us how much profit is making compared to the retained amount of shareholder money – the higher the ROE the better.

Since inception in September 2024, the GARP ETF has returned an average of 16.8%. Past performance is not a guarantee of future returns of course, but I’m bullish about this strategy being able to continue to deliver good returns for the next decade and beyond.

These aren’t the only ASX shares I think would make excellent long-term investments.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Guzman Y Gomez. 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.

Fortunately for income investors, there are lots of ASX dividend shares to choose from.

But with so much choice, it can be hard to decide which ones to buy.

To narrow things down, let’s look at three dividend shares with 5%+ dividend yields that analysts are tipping as buys.

They are as follows:

Charter Hall Long WALE REIT (ASX: CLW)

The team at Citi thinks that Charter Hall Long WALE REIT could be a top pick for income investors.

The broker has a buy rating and $4.10 price target on the long-lease focused property company’s shares.

Citi highlights that the company’s shares offer value at current levels, especially with a large portion of rents inflation-linked and its big dividend yield.

Speaking of which, the broker is forecasting dividends per share of 25.5 cents in FY 2026 and then 25.7 cents in FY 2027. Based on its current share price of $3.71, this would mean dividend yields of approximately 6.9% in both years. 

Harvey Norman Holdings Ltd (ASX: HVN)

Another ASX dividend share that could be worth considering is retail giant Harvey Norman.

Bell Potter is bullish on the company and has a buy rating and $6.00 price target on its shares.

Although the broker expects FY 2027 to be a tough year, it believes this is more than priced in. So, with generous dividend yields expected, it sees now as a good time to snap up Harvey Norman’s shares. 

Bell Potter is forecasting fully franked dividends of 31.1 cents per share in FY 2027 and then 33.3 cents per share in FY 2028. Based on its current share price of $4.82, this equates to dividend yields of 6.5% and 6.9%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

A third ASX dividend share that brokers are recommending to clients is Universal Store. 

Morgans has a buy rating and $9.50 price target on the youth fashion retailer’s shares.

The broker has been pleased with the company’s performance in FY 2026, highlighting that double-digit sales growth is expected despite tough operating conditions.

It notes that Universal Store’s Perfect Stranger brand is performing strongly, which bodes well for its store rollout. 

With respect to income, Morgans is forecasting the company to pay fully franked dividends of 40 cents per share in FY 2026 and then 46 cents per share in FY 2027. Based on its current share price of $7.43, this represents dividend yields of 5.4% and 6.2%, respectively.

The post 3 ASX dividend shares to buy with 5%+ yields appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $100,000 annual passive income?
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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Harvey Norman. 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.

I’m always on the lookout for ASX shares that could boost my portfolio returns and passive income.

I feel fortunate to be able to regularly invest money into the share market, and I recently put $3,000 to work into more stocks.

The three names I bought were: MFF Capital Investments Ltd (ASX: MFF), WCM Global Growth Ltd (ASX: WQG) and L1 Long Short Fund Ltd (ASX: LSF).

All three of my new investments have similar positive attributes, which I’ll get into below.

Effective investment strategies

All three of these ASX shares are listed investment companies (LICs). In other words, they invest in other shares and assets on behalf of shareholders.

They each have their own investment strategy, and they have all performed strongly over the long-term.

MFF aims for high-quality global shares with strong competitive advantages and an above-average ability to grow earnings.

The L1 LIC invests in a mixture of ASX shares and global shares that are priced cheaply with good earnings growth potential.

WCM Global Growth invests in businesses with improving competitive advantages and a corporate culture that supports that economic moat improvement.

Each of them have managed to deliver double-digit portfolio returns over the long-term, helping fund good dividends and a rising share price (thanks to their growing retained earnings).

Rising dividends

I believe the best ASX dividend shares can provide shareholders with consistent dividend growth.

It’s good to be able to offset (or outpace) inflation. Rising dividends also allow us to feel wealthier, with more cash flowing through our bank accounts. The dividends can be reinvested or spent on our lives for essentials or to fund discretionary spending.

All three ASX shares I recently invested in – MFF, WCM Global Growth and L1 Long Short Fund – have all recently increased their dividends by more than 10% year-over-year.

It’s not guaranteed that these businesses will continue to grow their dividends by more than 10% in the next financial year. It’s possible they may not even grow the dividend. But, of all of the businesses on the ASX, these are three of the ASX shares I’m most confident will deliver a rising dividend to shareholders.

With their profit reserves and impressive investment returns, I believe they’ll be able to continue hiking their payouts at a good pace for the next few years.

Good dividend yields

All three of these ASX shares have compelling dividend yields and could continue to grow their payouts from here, unlocking an even greater dividend yield in time.

I estimate that in FY27, the ASX shares could provide grossed-up dividend yields (including franking credits) of more than 5%. At the time of writing, MFF could offer a grossed-up dividend yield of 6.9%, WCM Global Growth could have a grossed-up dividend yield of 7% and L1 Global Short Fund could provide a grossed-up dividend yield of 5.1%.

I believe all of these stocks could outperform the S&P/ASX 200 Index (ASX: XJO) and deliver stronger dividend income. But, these aren’t the only ASX shares I have my eyes on for July.

The post Why I just invested $3,000 in these 3 ASX shares appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $100,000 annual passive income?
• 2 ASX dividend shares with yields above 6%
• How much superannuation is needed to target a $100,000 annual passive income?
• How much passive income can I earn off a $50,000 portfolio?
• Buy, hold, sell: L1 Long Short Fund, REA, Wesfarmers shares

Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund, Mff Capital Investments, and Wcm Global Growth. 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 Mff Capital Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Warren Buffett has spent decades showing investors that price and value are not always the same thing.

That idea feels especially relevant when good ASX shares fall out of favour.

Several well-known shares are trading far below their previous highs, and I think some could reward investors willing to look past the current pessimism.

Price creates the opportunity

Buffett once wrote: “Price is what you pay; value is what you get.”

A lower share price does not automatically create value. The business still needs attractive assets, a credible recovery path, and enough financial strength to work through its challenges.

But when the market becomes too focused on what is going wrong today, long-term investors can sometimes buy future earnings at a much better price.

Treasury Wine Estates Ltd (ASX: TWE) is one share I would examine closely.

The wine company has faced setbacks across its US operations and has struggled to convince investors that recent acquisitions will deliver the expected returns. Its Penfolds brand still has considerable global recognition, while China and other Asian markets could support growth over time.

The recovery needs better execution, but the lower share price gives investors a more forgiving starting point than they had near the highs.

Back businesses that can regain momentum

Temple & Webster Group Ltd (ASX: TPW) is another fallen ASX share I would consider.

Furniture demand can move with consumer confidence, housing activity, and interest rates, which means the company’s growth will rarely arrive evenly.

I still like its long-term position as spending continues moving online. Temple & Webster can offer a wide range without carrying the same store network as traditional retailers, while data and technology can improve merchandising, marketing, and the customer experience.

WiseTech Global Ltd (ASX: WTC) has endured an even more dramatic loss of confidence.

Governance concerns, leadership questions, and uncertainty around the e2open acquisition have weighed heavily on the shares. Yet CargoWise remains deeply embedded in the operations of major logistics companies.

Global trade is full of paperwork, customs requirements, freight movements, warehouses, and regulatory complexity. WiseTech has an opportunity to bring more of those processes into one platform and automate more work through artificial intelligence.

I would keep the position measured, but the long-term opportunity looks far more attractive after the share price decline.

Quality can become cheap too

Some of the best opportunities can appear when the market loses patience with companies that were once considered untouchable.

CSL Ltd (ASX: CSL) and Cochlear Ltd (ASX: COH) both fit that description in my opinion.

CSL needs to improve execution across plasma, vaccines, and Vifor, while Cochlear has faced softer implant demand and hospital capacity constraints. I think those concerns deserve attention, but both companies have spent decades building global healthcare capabilities that would be difficult to reproduce.

REA Group Ltd (ASX: REA) also looks more appealing after its fall.

Property listings can weaken when housing activity slows, yet REA Group’s position at the centre of the Australian property search remains strong. Its audience, data, agent relationships, and network effects give the company several ways to keep developing its platform.

Foolish takeaway

I would not try to predict exactly when sentiment will recover for any of these companies.

Instead, I would focus on whether the business can produce meaningfully higher earnings over the next five or 10 years than the market currently expects.

They all have problems to solve, which is why their share prices have fallen so heavily. But they also retain brands, technology, market positions, or specialist capabilities that could support a recovery.

Following Buffett’s approach requires patience and discipline. For investors prepared to provide both, I think today’s market offers several cheap ASX shares worth buying.

The post I’d listen to Warren Buffett and buy cheap ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Cochlear, Temple & Webster Group, Treasury Wine Estates, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates and WiseTech Global. The Motley Fool Australia has recommended CSL, Cochlear, and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I’ve cast my net wide this week, looking for share tips from the brokers which will deliver outsized returns.

The companies profiled are from across the spectrum of listed companies, and in the case of the highest profile company, it’s from overseas.

Let’s check that one out first.

Space Exploration Technologies Corp (NASDAQ: SPCX) 

Shares in SpaceX plunged 5.4% over the weekend to be changing hands for US$123.99, well below the company’s initial public offer price of US$135 and a far cry from levels higher than US$200 the stock visited in the days following its listing.

Despite the recent share price weakness, analysts are almost ubiquitous in their belief that the shares will trade higher, and UBS is one of those, with a share price target of $US210.

The investment thesis is based on the fact that SpaceX is an early and dominant player in the space sector, and that it has the chance to use that dominance to advance its other business units.

Currently the company’s space and AI divisions are not turning a profit, while its Starlink connectivity division is.

Fot its part, UBS believes SpaceX has, “an unparalleled set of assets with a multifaceted return profile and multiple drivers of upside for long term, risk tolerant investors”.

Hub24 Ltd (ASX: HUB)

Morgan Stanley has included Hub24 in its small-mid cap ideas list, saying in a note to clients that a broader sell off in Australian technology growth stocks has pushed its share price lower.

Morgan Stanley says Hub24 has “delivered industry leading net flows and funds under administration growth as well as operating leverage in recent periods, yet has underperformed its closest peers”, which are Netwealth Ltd (ASX: NWL), Praemium Ltd (ASX: PPS) and AMP Ltd (ASX: AMP) on a year to date basis.

The broker said they believed the federal budget created more demand for financial advice and increased relative tax advantages for superannuation, which would benefit Hub24.

Morgan Stanley has a price target of $120 on Hub24 shares compared to $84.95 currently.

Wisetech Global Ltd (ASX: WTC)

Bell Potter says while there has been a tech rally “of sorts” on the ASX over the past couple of months, Wisetech did not gain during this time.

This was possibly due to negative press around the company’s founder Richard White, they said, “and risk around both the FY26 result and FY27 guidance and whether each meets market expectations”.

They added:

In our view, however, these negatives will start to dissipate over the coming months and indeed have already commenced with the appointment earlier this month of Raelene Murphy to Chair which we regard as a positive move. We also believe the company will achieve its FY26 guidance when it reports next month – albeit with some risk around revenue but this should be made up by the margin – and the FY27 guidance will meet expectations following downgrades by the sell-side (ourselves included) over the past few months.

Bell Potter has a price target of $71.75 on Wisetech shares compared to $33.88 currently.

Light & Wonder Inc (ASX: LNW)

Jarden has released a research note on Light & Wonder ahead of its results release, and says they expect the result to be broadly in line with consensus estimates.

The broker says customer demand has remained resilient in the US, and despite ongoing macroeconomic uncertainty this should continue.

Jarden says they like both Light & Wonder and Aristocrat Leisure Ltd (ASX: ALL), but they have a “strong preference” for Light & Wonder on valuation grounds.

The broker has a price target of $182 on the company’s shares compared to $112.34 currently.

The post 4 ASX share tips from 4 brokers, for returns better than 40% appeared first on The Motley Fool Australia.

More reading

• I’d listen to Warren Buffett and buy cheap ASX shares
• When will WiseTech shares bottom out?
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Sigma Healthcare, Wisetech Global, CBA shares
• Why WiseTech shares could rocket 100%

Motley Fool contributor Cameron England has positions in Hub24 and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24, Light & Wonder Inc, Netwealth Group, Praemium, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Netwealth Group and WiseTech Global. The Motley Fool Australia has recommended Hub24 and Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.