Author: openjargon

Want to build long-term wealth?

A good place to start is with ASX 200 shares that have the potential to compound earnings over many years. These are businesses with strong market positions, long growth runways, and the ability to reinvest for the future.

With that in mind, here are two ASX 200 shares that could be worth buying and holding for the next decade.

Goodman Group (ASX: GMG)

The first ASX 200 share to look at for the long term is Goodman.

It has become one of the most important property groups on the ASX, but it is no longer just a traditional industrial landlord.

The company owns, develops, and manages high-quality logistics, warehousing, and industrial properties in major global markets. These assets are positioned close to cities, transport corridors, and key supply chain hubs.

That is more important than you think because modern businesses need faster delivery, better inventory management, and more efficient distribution networks. Ecommerce, automation, and supply chain resilience have all increased the value of well-located industrial property.

Goodman also has another powerful growth angle: data centres.

As artificial intelligence, cloud computing, and digital services require more infrastructure, demand for data centre capacity could remain strong for many years. Goodman’s land holdings, development capability, and global relationships could put it in a strong position to benefit.

Overall, for investors thinking in decades rather than months, that could make it one of the ASX 200’s most attractive long-term compounders.

Netwealth Group Ltd (ASX: NWL)

Another ASX 200 share to consider for the long haul is Netwealth.

It is not a household name like a bank or supermarket, but it plays an important role behind the scenes of Australia’s wealth management industry.

Its platform helps financial advisers manage client portfolios, administration, reporting, investments, and account structures. That may sound unexciting, but it is exactly the kind of infrastructure that advisers rely on every day.

The strength of the business is in its operating model. As more funds move onto the platform, Netwealth can benefit from scale. Revenue can grow with funds under administration, while technology and automation can help support margins over time.

It is also exposed to a long-term structural tailwind. Australia has a large and growing pool of superannuation and investment wealth, and advisers continue to need modern platforms to serve clients efficiently.

That gives Netwealth a runway that could last well beyond the next year or two.

Competition is strong, but Netwealth has shown that specialist platforms can keep taking share from older incumbents when they deliver a better user experience. Over 10 years, that kind of steady market share gain could be very powerful.

The post 2 incredible ASX 200 shares to buy and hold for 10 years appeared first on The Motley Fool Australia.

More reading

• Interested in investing in AI? Check out this new $350 million trust
• The ASX shares I’d pick in a FIFA World Cup first eleven
• Why I’d put $2,000 into CBA and these blue-chip ASX shares this month
• Time to cash out? Why this expert is bearish on Goodman and BHP shares
• Goodman shares rise as another insider sells $18.9 million. Should investors care?

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 Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth 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.

S&P/ASX 200 Index (ASX: XJO) shares fell 0.2% to 8,633.2 points yesterday.

Let’s check out what these experts think of three ASX shares in the retail and healthcare sectors.

Nick Scali Ltd (ASX: NCK)

The Nick Scali share price closed at $15.05, down 1.1% yesterday and down 36% in the calendar year to date (YTD). 

Morgans commenced coverage on this ASX 200 retail share with a buy rating this week.

The broker said it was looking through weak near-term consumer sentiment, and that the current share price is attractive.

Morgans described Nick Scali as a “high-quality retailer with a long track record”.

In a new note, the broker explained its buy recommendation:

Nick Scali has delivered long-term EPS growth through disciplined store rollout, LFL growth, best-in-class margins, and operating leverage. Strong cash generation and balance sheet.

Structural negative working capital supports high cash conversion, while the low capital intensity of new store rollouts leaves ample cash flow for dividends and property purchases and/or growth ventures.

Store rollout optionality. Further Plush and Nick Scali rollout in ANZ and the Nick Scali rollout opportunity in the UK provide an attractive growth leg.

Morgans has a 12-month target of $17.84, which suggests almost 20% upside ahead.

Nyrada Inc (ASX: NYR)

The Nyrada share price finished at 45 cents, down 8.2% yesterday and down 62% YTD. 

Nyrada is a biotech developing novel therapies for cardiovascular, neurological, and cancer-related diseases.

On The Bull this week, Tony Locantro from Alto Capital put a hold rating on this ASX biotech share.

Locantro commented: 

Recent announcements highlighted progress in the Phase IIa PROTECT-MI trial for its lead drug candidate Xolatryp, along with encouraging pre-clinical oncology data and additional patent protection.

These developments continue to strengthen confidence in the broader platform and its commercial potential.

However, the company remains at a clinical development stage, with key efficacy and regulatory milestones still ahead. While the long term opportunity remains attractive, the current risk profile supports a hold recommendation pending further clinical validation.

Wesfarmers Ltd (ASX: WES) 

The Wesfarmers share price closed at $84.31 on Thursday, up 1.1% for the day and up 3% YTD. 

Wesfarmers held its 2026 Strategy Briefing Day on Wednesday.

The diversified conglomerate highlighted its growth and productivity plans, its portfolio of high-quality businesses, and its strong balance sheet, which provides the potential to invest.

Managing Director Rob Scott said Wesfarmers’ primary objective remained satisfactory returns for shareholders.

Scott pointed out that Wesfarmers shares had delivered an average annual return of 15.8% over 10 years.

This compares to a 9.2% average annual return from the All Ordinaries Accumulation Index.

After the event, Citi reiterated its sell call on the ASX 200’s biggest consumer discretionary share.

The broker has a price target of $69 on Wesfarmers shares.

This indicates a potential near-20% downside ahead.

The post Buy, hold, sell: Nick Scali, Nyrada, Wesfarmers shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Are Wesfarmers shares a buy, sell or hold after this week’s update?
• Down 40%+! 2 cheap ASX shares I’d buy before the recovery becomes obvious
• Here are the top 10 ASX 200 shares today
• I love Wesfarmers shares. Here’s why I’m not buying more

Citigroup is an advertising partner of Motley Fool Money. 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 Wesfarmers. The Motley Fool Australia has recommended Nick Scali and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

After a “prolonged” period of uncertainty around the future prospects of many technology stocks, the dust is beginning to settle, and the companies holding true value are becoming apparent, Canaccord Genuity says.

In a new research note issued to their clients, the brokerage said their key positioning remained in metals and mining, “particularly commodities supported by supply tightness and favourable structural demand drivers, and underweight the banks, which have unattractive valuations, growth prospects and mounting credit headwinds”.

But they also turned their focus to the technology sector, which has been shaken by AI disruption concerns.

Sorting the wheat from the chaff

The Canaccord team said that global software-as-a-service (SaaS) stocks have staged a recovery since May 26, following previous sectoral weakness driven by concerns over AI hollowing out the business models of some companies.

They added:

After some surprisingly resilient results from some software companies listed in the US, market participants have appeared increasingly willing to challenge some of the more bearish interpretations of the theme and reassess which software stocks can be winners, particularly those that sit on the critical path of agent-driven workflows where AI proliferation drives consumption rather than displacement.

The Canaccord team said the new positivity had spilled over into the Australian market, with some ASX-listed software stocks experiencing a sharp upswing.

They said broadly re AI:

Our view on the long-term impact of AI on SaaS companies remains unchanged. We believe AI will to put pressure on weaker software models, but high-quality incumbents with genuine, difficult-to replicate competitive advantages (such as embedded systems, high subscriber switching costs, proprietary datasets) should prove more resilient to disruption and use AI to their advantage.

So which companies do they like?

TechnologyOne Ltd (ASX: TNE)

The Canaccord team says TechnologyOne is their preferred large-cap software pick, with its key upside being its AI tool Plus product, “which aids customers in actioning tasks within the system, among other things”.

They said that TechnologyOne is aiming to target adoption of 10% to 15% in year one and 75% by year four.

Thus, rather than disruption, TNE’s AI narrative is monetising AI without needing to reinvent its core product through Plus adoption and high usage per customer.

Pro Medicus Ltd (ASX: PME)

The Canaccord team said Pro Medicus’ earnings will be bolstered by a series of large contract wins, which are yet to be reflected in the profit and loss statements.

They said while its price-to-earnings (P/E) ratio was still high, it “is a very high-quality business with Pro Medicus gross margins of 99.7% and EBITDA margins of 77%, which is expected to expand above 80%”.

They added:

Concerns about AI’s impact on PME ignores the complexities associated with large-scale hospital systems that PME has expertise in, with imaging embedded across information systems and clinical workflows. Its high cash generative business allows optionality to acquire developing AI tools for additional top- and bottom-line growth, nullifying concerns regarding AI’s impact to PME’s business.

Catapult Sports Ltd (ASX: CAT)

Catapult, Canaccord said, is the global leader in athlete monitoring, supplying its devices and software to about 4000 teams.

They said the growth opportunity is significant, with a total addressable market of about 20,000 teams.

They added:

With this, CAT is growing rapidly, with 3-year forward consensus Management EBITDA growth of 35% and operating leverage driving high incremental margins which is expected to lift Management EBITDA margins from 18% currently to 30% in FY30. While caught up in the ASX tech-related sell-off, Catapult is defensible against AI threats due to its physical wearables devices that AI can’t replace and deeply embedded proprietary analytics data that is difficult to replicate and is mission-critical to manage player loads and optimise team strategies.

The post These 3 ASX technology stocks can prosper in uncertain times appeared first on The Motley Fool Australia.

More reading

• The ASX shares I’d pick in a FIFA World Cup first eleven
• 5 ASX 200 shares downgraded by the experts this week
• 2 ASX tech shares I’d buy that aren’t Xero or WiseTech
• Is it time to get greedy with Pro Medicus shares?
• Why might Pro Medicus shares soon be under pressure?

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

The Vault Minerals Ltd (ASX: VAU) share price is in focus after the company lodged a key regulatory permit for its Sugar Zone project restart, targeting underground development in Q1 FY27 and gold production in Q1 FY28.

What did Vault Minerals report?

• Lodgement of Closure Plan Amendment (CPA) for Ontario’s Sugar Zone mine, following Ministry invitation
• Draft Sewage Environmental Compliance Approval (ECA) for Southern Tailings Management Facility received
• Updated underground Mineral Resource: 4.8Mt at 8.0g/t for 1.23 million ounces of gold as at 30 June 2025
• Ore Reserve: 2.3Mt at 5.4g/t for 389,000 ounces supporting 7-year mine life and annual ~50,000oz production
• Extensive exploration: ~114,000m drilled since August 2023, identifying new mining front (Sugar Zone South)

What else do investors need to know?

Vault’s latest CPA submission signifies a critical step toward restarting Sugar Zone operations after an exhaustive review and consultation with First Nations partners. The CPA will be displayed publicly on Ontario’s registry for up to 45 days before filing, which is expected to trigger the commencement of Q1 FY27 development.

Significant infrastructure refurbishments are complete, with upgrades to mine and plant facilities and a new mining fleet readied. Recruitment of the senior operational team is progressing, while seasonal exploration focused on new surface targets continues to uncover promising zones.

Vault’s restart will proceed under an owner-operator model, with a 9–12 month development phase establishing safe access for stope production and providing construction material for its new tailings facility. The mine is permitted for higher capacity, offering future expansion optionality.

What’s next for Vault Minerals?

Looking ahead, Vault will focus on securing final government approvals and beginning site works, including tailings dam construction and mine development. Underground mining is on track to restart in early FY27, with first gold production targeted for Q1 FY28.

Further resource conversion and exploration upside remain, as high-grade mineralisation is open in multiple directions. As in-mine drilling resumes, the company may extend the mine’s life beyond its current seven-year plan.

Vault Minerals share price snapshot

Over the past 12 months, Vault Minerals shares have risen 37%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 1% over the same period.

View Original Announcement

The post Vault Minerals lodges key permit, on track for Sugar Zone restart appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• ASX 200 slips as oil shock puts investors on edge
• Megaport launches retail entitlement offer after $827 million capital raise
• Lendlease reaffirms FY26 earnings guidance

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Investors on the hunt for big returns might want to turn their attention to the ASX growth shares in this article.

That’s because analysts have recently named them as buys and tipped them to rise 30% or more. Here’s what they are recommending:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville.

It has spent years building a premium global appliances business. Its products enjoy strong positions in categories such as coffee machines, food preparation, cooking, and kitchen appliances.

The company has a large opportunity with its international expansion, particularly in markets where premium home cooking and coffee products still have plenty of room to grow.

But that does not make it immune from consumer weakness. Shoppers can delay bigger discretionary purchases when household budgets are tight. But Breville’s brand strength and offshore growth runway mean it could still have plenty of long-term potential.

Last week, the team at Citi put a buy rating and $39.85 price target on Breville shares. This implies potential upside of approximately 33%.

Life360 Inc (ASX: 360)

Another ASX growth share that brokers are bullish on is Life360.

This location technology and family safety company has been growing its revenue and earnings at a rapid rate for many years.

This has been driven by strong growth in monthly active users (MAUs), which currently sits just short of 100 million. But Life360 isn’t settling for that. Management is guiding to 17% to 20% growth in MAUs in 2026.

This bodes well for the future as it gives it a larger pool to convert into paid subscriptions and to monetise with its advertising business.

Life360 still needs to execute carefully. A business handling location data must maintain trust, and investors will keep watching margins and customer growth closely.

But its combination of global scale, subscription revenue, and a clear consumer use case makes it one of the more exciting growth stories on the ASX.

Bell Potter recently put a buy rating and $33.00 price target on Life360 shares. This suggests potential upside of approximately 55%.

WiseTech Global Ltd (ASX: WTC)

A third ASX growth share to consider buying is WiseTech.

It provides software for the global logistics industry with its leading CargoWise platform, which helps freight forwarders and logistics companies manage complex international shipments, compliance, documentation, customs, and supply chain workflows.

This is not a glamorous market, but it is an enormous one. Global trade is complicated, and logistics companies need software that can handle scale, regulation, and cross-border movement efficiently.

WiseTech’s advantage is that it is solving deeply technical problems for customers that rely on its systems to operate. That can make the platform sticky once embedded.

Bell Potter put a buy rating and $71.75 price target on WiseTech shares this week. This implies potential upside of approximately 94%.

The post 3 buy-rated ASX growth shares tipped to rise 30%+ appeared first on The Motley Fool Australia.

More reading

• The ASX shares I’d pick in a FIFA World Cup first eleven
• ASX 200 slips as oil shock puts investors on edge
• 8 ASX 200 shares with renewed buy ratings this week
• 2 ASX tech shares I’d buy that aren’t Xero or WiseTech
• Why WiseTech Global shares could rise 90% in a year

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Life360 and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and WiseTech Global. The Motley Fool Australia has positions in and has recommended Life360 and WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The oil market has been one of the most volatile in living memory in 2026.

Brent crude surged to US$114 by the end of April per barrel as the US-Iran conflict escalated. It then crashed in May as ceasefire talks briefly raised hopes of a resolution.

This week, oil is climbing again as tensions in the Middle East continue to escalate.

The US Energy Information Administration’s June 2026 Short-Term Energy Outlook, released this week, forecasts Brent prices averaging $105 per barrel in June and July.

This is based on the assumption that the Strait of Hormuz remains closed to most shipping traffic.

For investors in ASX energy shares, that forecast is very important.

Here is how it translates into real dollars for the three biggest names in the sector.

Woodside Energy Group Ltd (ASX: WDS)

Woodside Energy Group is Australia’s largest listed energy company and the most direct way to play the oil price story for energy shares.

Every sustained increase in the oil price flows almost directly into Woodside’s revenue given its relatively fixed cost base for LNG and oil production.

Woodside soared last week, touching a three-month share price high of $25.88 on Friday. This was due to the recovery of oil prices on renewed Middle East tensions.

The company’s Scarborough LNG project is now 94% complete with first cargo targeted for Q4 2026. This means Woodside is entering a phase where its major capital investments are beginning to generate cash flow.

A sustained oil price at $105 per barrel, as the EIA forecasts, would deliver significant uplift to Woodside’s second-half FY2026 earnings.

To support this optimism, UBS forecasts Woodside’s FY2026 dividend at approximately 109 US cents per share. The broker forecasts more upside if oil prices remain elevated through the second half.

Santos Ltd (ASX: STO)

Santos is Australia’s second largest oil and gas producer and has been one of the standout performers on the ASX in 2026.

The company’s Barossa LNG project is producing at 75% of its planned 2026 production rates, with plateau production targeted before year end.

Santos delivered first oil from its Pikka Phase 1 development in Alaska in late May 2026, adding a new production stream as oil prices are recovering.

In Q1 2026, Santos reported sales revenue of $1.27 billion, up 3% on the prior quarter. This was driven by stronger crude oil prices and higher LNG volumes.

A sustained oil price above $100 per barrel through the second half of 2026 would improve Santos’s cash generation and dividend capacity relative to current analyst estimates.

Beach Energy Ltd (ASX: BPT)

Beach Energy offers the most leveraged and concentrated play on rising oil prices among the three. This is due to its smaller size and higher sensitivity to oil price movements relative to production costs.

The company posted a strong operational Q3 FY2026 update with production rising 7% quarter on quarter to 4.8 million barrels of oil equivalent.

Meanwhile, its Waitsia Gas Plant in Western Australia is ramping toward full capacity.

Beach has strengthened its balance sheet significantly, with available liquidity rising to $974 million and net gearing falling to just 11%. This should give it the financial resilience to navigate price volatility while still paying dividends to shareholders.

The key risk for Beach is that its smaller scale and Western Australia gas exposure means it benefits less from global oil price movements than Woodside or Santos.

Bell Potter maintains a hold rating on Beach Energy with a $1.15 price target. The borker noted that production growth should return in FY2027 as capital expenditure eases.

Foolish takeaway for ASX energy shares

Oil is back on the up and the EIA is forecasting $105 for June and July.

The Strait of Hormuz remains effectively closed.

Woodside, Santos, and Beach Energy are all positioned to capture higher oil prices through their existing production profiles.

For investors comfortable with commodity price volatility, the current environment is arguably the most supportive for ASX energy shares it has been all year.

The post Oil prices are back in focus. Here’s what that means for ASX energy shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 slips as oil shock puts investors on edge
• Why Lendlease, Meteoric Resources, Super Retail, and Woodside shares are rising today
• 5 things to watch on the ASX 200 on Thursday
• Buy, hold, sell: Woodside, Rio Tinto, NAB 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 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 ASX share market is one of the best places to find good passive income, in my opinion. That’s because some opportunities have an exceptionally high dividend yield.

I wouldn’t buy just anything, though. I’d want to ensure I have a high degree of confidence that the business is going to continue delivering stable (and hopefully growing) payouts.

Let’s look at two of the highest-yielding ASX shares that I expect to continue to deliver good dividends.

Hearts and Minds Investments Ltd (ASX: HM1)

This is a listed investment company (LIC) that can give significant passive income and a compelling level of diversification.

LICs are companies that simply invest in other shares to help them generate returns. Dividends can then be funded from those investment profits.

Hearts & Minds is quite different to most other LICs. Firstly, there are no management fees or performance fees. Instead, 1.5% of net assets are donated to medical research organisations.

A minority of the portfolio is decided at an investment conference where several investment experts each pitch their best idea such as Brookedale Senior Living.

A majority of the portfolio is chosen by core portfolio managers, who have (currently) chosen names like Nvidia, Microsoft, Amazon and TSMC.

Its portfolio has performed adequately over the longer-term, with an average return per year of 12.8% after expenses.

The board of the ASX share have “resolved” to increase dividends by 0.5 cents per share every six months for the foreseeable future. That means the next two dividends should amount to 20.5 cents per share, equating to a grossed-up dividend yield of 10.5%, including franking credits, at the time of writing. That’s a great starting yield, in my books.

Shaver Shop Group Ltd (ASX: SSG)

The other ASX share I really want to highlight is Shaver Shop, a leading retailer in the hair removal space. It sells things like electric shavers, clippers, trimmers, and wet shave items. The company also sells items like oral care, hair care, massage and beauty categories.

Shaver Shop has impressed me with its reliable dividend over the last several years. It started paying a dividend in 2017 and has increased it every financial year since, aside from FY24 when it maintained it at 10.2 cents per share.

The last two half-year dividend payments total 10.3 cents, which translates to a grossed-up dividend yield of 11.5%, including franking credits, at the time of writing.

If the business continues its reliable dividend record, then I’d expect the next 12 months to offer that level of passive income for shareholders.

I view hair removal as a fairly consistent sector considering how hair just keeps growing – it’s more defensive than I think some investors give it credit for.

Shaver Shop has a number of levers it can pull it grow earnings, including adding more stores to its ANZ network, selling more online, growing its private label brand (Transform-U), signing additional exclusive agreements with quality brands, and selling more products in other categories like oral care, hair and beauty.

According to the projection on CMC Invest, it’s valued at just 11x FY26’s estimated earnings.

The post 2 ASX shares with dividend yields above 10% appeared first on The Motley Fool Australia.

More reading

• 1 ASX dividend stock down 16% I’d buy right now
• 2 ASX shares with dividend yields above 8%
• 3 ASX dividend shares to block out the noise and lock in a yield as high as 11%
• Is this ASX dividend share a buy for its 11% dividend yield?
• How much is needed in superannuation to target a $7,500 monthly passive income?

Motley Fool contributor Tristan Harrison has positions in Hearts And Minds Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia has recommended Amazon, Microsoft, Nvidia, and Shaver Shop Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Every six weeks, a small group of people in Sydney makes a decision that ripples through every mortgage and every ASX share price in the country.

On Tuesday 17 June 2026, the Reserve Bank of Australia board will meet to decide on the official cash rate.

The RBA has already raised the cash rate three times in 2026, taking it to 4.35%, the highest level since late 2011.

Markets are currently pricing a hold at near-certainty.

But the language that accompanies that hold could move ASX shares as much as the decision itself.

Why this meeting is important for ASX shares

The three prior hikes each blindsided markets. This one is different.

The April CPI data showed headline inflation at 4.2%, below the 4.4% forecast, immediately pushing the probability of a June hike to near zero.

But the underlying story is more complex. Trimmed mean inflation rose to 3.4% in April, its highest reading since late 2024. This indicator is still well above the RBA’s 2% to 3% target band.

The Middle East conflict has also pushed oil prices back toward $92 per barrel this week, complicating the inflation picture further.

What the RBA says about the path ahead will determine how these ASX shares trade for the rest of the month.

What it means for Commonwealth Bank shares

Commonwealth Bank of Australia (ASX: CBA) finds itself in a bind heading into the meeting.

Higher rates support net interest margins, which is good for earnings.

But elevated rates also increase mortgage stress and weaken credit demand, both of which eventually weigh on earnings.

A hold removes the near-term risk of further stress.

However, as Morgan Stanley noted, a pause also removes the NIM expansion tailwind that has been partially offsetting deposit competition pressure.

In the first half of FY2026, CBA posted statutory net profit of $5.41 billion, up 5% year-on-year, confirming the underlying business is strong.

At approximately 26 times forward earnings, however, the stock prices in little margin for error.

What it means for Westpac shares

Westpac Banking Corp (ASX: WBC) is the most mortgage-exposed of the big four banks, with approximately 69% of its loan book in residential mortgages.

Each additional rate hike puts further pressure on those borrowers. A clean hold on Tuesday, combined with dovish language, is the outcome Westpac shareholders most need.

Westpac declared a fully franked interim dividend of 77 cents per share, payable on 26 June. That payment will proceed regardless of what the RBA does on Tuesday.

But the outlook for Westpac shares next week depends heavily on how the RBA frames the path ahead.

What it means for Mirvac shares

For Mirvac Group (ASX: MGR), Tuesday’s decision could be the single most important catalyst the stock faces in the second half of 2026.

Property trusts are acutely sensitive to interest rates because higher rates simultaneously increase borrowing costs and compress asset valuations.

Mirvac shares have fallen approximately 27% over the past twelve months as the rate hiking cycle weighed on REIT valuations.

A definitive signal that the hiking cycle is over would remove the single biggest valuation headwind the stock faces.

In the first half of FY2026, Mirvac posted a 38% year-on-year lift in residential sales, confirming the underlying business is growing strongly.

Macquarie carries an outperform rating on Mirvac with a price target of $2.70.

A dovish RBA signal next Tuesday could accelerate that re-rating significantly.

Foolish takeaway

Three rate hikes in 2026 have already done significant damage to rate-sensitive ASX shares.

Next week’s decision may not necessarily resolve the uncertainty.

But the language accompanying it will tell investors a great deal about whether the worst is behind them.

For CBA, Westpac, and Mirvac shareholders, it is the most important date in the calendar right now.

The post Why the RBA’s decision next week could be the most important event for ASX shares in 2026 appeared first on The Motley Fool Australia.

More reading

• ASX 200 slips as oil shock puts investors on edge
• Why I’d put $2,000 into CBA and these blue-chip ASX shares this month
• Sell alert! Why this expert is calling time on NAB and Westpac shares
• Hedge funds are shorting the big four bank shares. Should investors be worried?
• What are the big 4 banks worth as the housing market falters?

Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Successful income investing is not just about finding the biggest yield. A high dividend yield can quickly lose its shine if the payout is cut, earnings fall, or the business becomes too exposed to the wrong part of the cycle.

That is why investors may be better served by focusing on companies with essential assets, defensive demand, and the ability to keep generating cash through different conditions.

With that in mind, here are three safe ASX dividend shares that could be worth buying for income.

APA Group (ASX: APA)

The first safe ASX dividend share to look at is APA Group.

It owns and operates a major network of gas pipelines and energy infrastructure across Australia. These are not assets that can be easily rebuilt or replaced, which gives the company an important role in the country’s energy system.

As its assets are used to move energy from where it is produced to where it is needed, this can support relatively steady earnings compared with more cyclical businesses. This provides great earnings visibility, which supports consistent dividends.

Based on current forecasts, APA is expected to offer a dividend yield of approximately 5.5% in FY 2027.

Transurban Group (ASX: TCL)

Another ASX dividend share that could be a top pick for income investors is Transurban.

It owns toll roads in major cities across Australia and North America. These roads are used by commuters, freight operators, airport travellers, and businesses every day.

That makes the company different from many discretionary businesses. Traffic can move around with economic conditions, but major transport corridors remain important parts of city life. This is especially the case as populations grow and road congestion increases.

Its portfolio is also difficult to replicate, which gives the business a strong market position and supports its dividend.

Transurban is forecast to offer a dividend yield of approximately 4.4% in FY 2027.

Woolworths Group Ltd (ASX: WOW)

A third ASX dividend share to consider for income is Woolworths.

It is one of the most defensive names on the ASX because its core business is tied to everyday household spending.

Australians may cut back on big-ticket purchases when money is tight. But groceries, household essentials, and fresh food remain regular purchases.

That does not make Woolworths immune from challenges. Competition, wage costs, regulation, and supply chain pressures can all affect profits. But the company’s scale, store network, digital capabilities, and trusted brand give it a strong foundation.

For income investors, Woolworths may not offer the highest yield on the market. But the quality of its earnings base could make it a useful lower-risk dividend option.

Woolworths is forecast to offer a dividend yield of approximately 3% in FY 2027.

The post 3 safe ASX dividend shares to buy for income appeared first on The Motley Fool Australia.

More reading

• The ASX shares I’d pick in a FIFA World Cup first eleven
• Why I’d put $2,000 into CBA and these blue-chip ASX shares this month
• How I’d aim to build $10,000 a year in passive income from ASX shares
• Transurban, Aurizon, Ampol shares hit fresh multi-year highs: Buy, sell or hold today?
• 5 ASX dividend stocks for passive income investors

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

Defensive shares like Telstra Group Ltd (ASX: TLS) are usually a great choice for investors who want to earn an easy and reliable passive income.

Telstra is a dominant Australian telecommunications company. It owns and operates the nation’s largest mobile network and is a major fixed-line internet provider. 

The business has a competitive advantage against other ASX shares. That’s because connectivity (including internet and phone services) has become essential infrastructure rather than a discretionary item. This is particularly the case as households and businesses continue increasing their data usage.

Telstra’s defensive nature is the key reason why it continues to be so popular with dividend investors. 

It also enables the business to record a stable revenue and earnings, regardless of the what stage of the economic cycle we’re in, or how the ASX is faring overall.

And this means it can pay shareholders a consistent, reliable passive income.

Take Telstra’s latest first-half FY26 update, for example. Earlier this year, the telco posted that group underlying EBITDA had risen across all major business lines. Its mobile services revenue was 5.6% higher and group cash EBIT was 14% higher, for the six-month period. Underlying operating expenses were also reduced by 2.4%. 

This meant the telco was able to hike its dividend by 5.25% for the first half of FY26, and pay a higher passive income to its shareholders.

But how much passive income would a $5,000 investment in Telstra actually generate?

Let’s find out.

How many Telstra shares can you get for $5,000 today?

At the time of writing, Telstra shares are trading for $5.21 a piece.

That means your $5,000 investment would buy around 959 Telstra shares.

What dividend does Telstra pay its shareholders?

The telco historically pays its shareholders two full- or partially-franked dividends every year, in March and September. 

Telstra most recently paid its shareholders an interim dividend of 10.5 cents per share, 90.48% franked, in March this year. 

Based on the latest forecasts, the telco is expected to pay a total dividend of 20 cents per share in FY26. It is expected to pay a higher 21 cents per share dividend in FY27.

Based on the current share price, that translates to a forward dividend yield of around 3.8% for FY26, and just over 4% for FY27.

So, what’s the estimated passive income for FY26 and FY27?

Using the estimated payout figures above, we can calculate roughly how much income to expect from a $5,000 investment in Telstra shares.

If the telco pays the expected 20 cents per share in FY26, then your 959 Telstra shares would generate a total of $191.80 in passive income.

Assuming the 21 cents dividend forecast for FY27 also comes to fruition, your 959 shares would generate an estimated $201.39 in passive income for the year.

The post If I invest $5,000 in Telstra shares today, how much passive income will I receive in FY26 and FY27? appeared first on The Motley Fool Australia.

More reading

• The ASX shares I’d pick in a FIFA World Cup first eleven
• How I’d aim to build $10,000 a year in passive income from ASX shares
• Why Telstra shares are a retiree’s dream for FY27
• 5 tips to navigate ASX share market volatility
• 6 ASX 200 shares downgraded by analysts this week

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