Author: openjargon

They say that “you’ve got to know when to hold ’em, know when to fold ’em.”

This poker advice rings equally true for investing. After all, holding ASX shares that keep falling can act as a major drag on an otherwise healthy portfolio.

With that in mind, let’s take a look at three big-name ASX 200 shares that experts have named as sells this week courtesy of The Bull. Here’s what they are bearish on:

Mineral Resources Ltd (ASX: MIN)

The team at Red Leaf Securities has named mining and mining services company Mineral Resources as an ASX 200 share to sell this week.

It thinks investors should stay away from the company until its earnings volatility and debt leverage are reduced. It said:

MIN is a diversified resources company, with extensive operations in lithium, iron ore, energy and mining services across Western Australia. The diversified model provides some cash flow stability via mining services, but overall earnings remain cyclical and exposed to volatile bulk commodity markets. 

Higher leverage amplifies downside risk during commodity downturns. Execution complexity across multiple divisions adds additional risk relative to simpler, more focused producers. While the company retains strategic asset value, earnings stability remains inconsistent, in our view. Until we see a reduction in leverage and earnings volatility, the stock remains a sell, or in the underweight category.

PLS Group Ltd (ASX: PLS)

Another ASX 200 share that Red Leaf Securities is bearish on is this lithium giant. 

Red Leaf has put a sell rating on PLS shares due to concerns over increasing lithium supply, which it appears to believe could weigh on spot prices. It explains:

PLS is a leading Australian lithium producer. Lithium remains structurally linked to electrification, but near term fundamentals are challenged by expanding supplies. While PLS asset quality remains strong, earnings are highly leveraged to spot prices, generating volatility through the cycle. Balance sheet strength provides a buffer, but doesn’t offset cyclical earnings pressure. 

PLS remains a high risk recovery trade dependent on the timing of lithium re-balancing, with limited near term visibility.

REA Group Ltd (ASX: REA)

Finally, DP Wealth Advisory has named REA Group shares as a sell this week.

This has been driven by concerns over the slowing housing market and increasing competition from rival Domain. DP Wealth explains:

REA is the dominant online property platform in Australia. But competitor Domain Holdings Australia, acquired by US listed company CoStar Group, is expected to provide fierce competition. Federal Budget changes to capital gains tax and negative gearing leaves property far less appealing to investors. 

The Australian property market is slowing, which could impact REA listing volumes moving forward. Auction clearance rates have been falling in Sydney and Melbourne. Other stocks appeal more at this stage of the cycle.

The post Experts name 3 big-name ASX 200 shares to sell appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: TechnologyOne, Pro Medicus, PLS Group shares
• 5 ASX All Ords shares that ripped 200% to 400% in FY26
• 10 fantastic ASX shares to buy for FY27
• 3 ASX 200 shares I’d buy and hold for life
• Top 5 ASX 200 lithium shares of FY26

Motley Fool contributor James Mickleboro has positions in REA Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

ASX bank share Commonwealth Bank of Australia (ASX: CBA) has seen plenty of volatility in the past year, as the chart below shows.

I think this is a good time to ask whether Australia’s largest bank is attractive or overvalued, considering it’s down 8% from mid-April.

For such a large business, that’s a significant reduction of the market capitalisation in dollar terms.

After everything that’s happened, let’s take a look and see if the ASX bank share is attractive according to experts.

Can the CBA share price rise from here?

The company has a long-term track record of delivering earnings growth, which is a great tailwind for share price gains.

Commonwealth Bank has managed to deliver good returns for investors through its connection with its customers. The bank has a high level of loans originating through proprietary channels, which helps its market share and net interest margin (NIM).

But being a high-performer may not necessarily help the CBA share price in the near-term, with headwinds like taxation changes and higher interest rates hurting potential loan demand.

Now let’s consider what could happen with the ASX bank share. Analysts sometimes put a price target on a business, which is where analysts think the business could be trading within 12 months.

According to CMC Invest, there have been eight analyst ratings on the business in the last three months. All of those ratings were a sell.

The average price target for CBA shares is $120.69 of those eight analysts, suggesting the business could fall by close to 30% within the next year. In other words, experts still think the ASX bank share is significantly overvalued.

The most optimistic price target is $144.40, implying a possible 14% decline. The most negative price target is $90, implying a potential decline of around 47% from its level at the time of writing.

Commonwealth Bank valuation

According to the projection on CMC Invest, the CBA share price is valued at 26x FY26’s estimated earnings.

The business is still forecast to grow earnings in both the 2027 financial years and 2028 financial year, but the pace of the earnings growth is expected to be slow.

In FY27, its net profit is only expected to rise by 5.4%. In FY28, the net profit is forecast to grow earnings by just 1.3%.

In terms of the dividend, the FY26 CBA grossed-up dividend yield could be 4.3%, including franking credits, at the time of writing.

I don’t think Commonwealth Bank shares are the best place to invest new cash right now; other opportunities seem more appealing.

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

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• How much do I need in my superannuation to get $50k per year in passive income?
• Your FY27 tax return will look different. Here’s what changed and how to prepare

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.

ASX dividend stock Nick Scali Ltd (ASX: NCK) has fallen 37% from its peak less than six months ago.

I love buying dividend-paying shares when their valuations decline because we can get a lower price and a higher dividend yield.

For example, if a business has a dividend yield of 5% and then the share price falls 10%, the dividend yield becomes 5.5%. That’s a noticeably better passive income return, just because we bought during a dip.

The Nick Scali share price is down 37% – investors can get a much better dividend yield now.

I think the ASX dividend stock is a great buy today for a few different reasons.

Opportunistic time to buy

It’s understandable that retail shares go through volatility because of how economic conditions can change, affecting consumer spending and investor confidence.

Higher interest rates may well mean that demand for mid-range furniture declines during this period, but I don’t think conditions will remain negative forever, which is why this could be a good time to invest opportunistically.

It’s not often that the business falls by more than a third, but those large declines have proven to be good times to buy for the longer-term as the business grows.

The company’s existing store network can see like-for-like sales grow in reasonable conditions, but the store network expansion is helping increase its underlying value as time goes by, even as the share price moves up and down.

Store expansion

As of December 2025, the business had 64 Nick Scali stores across Australia and New Zealand and 46 Plush stores in Australia.

The company says there’s a long-term opportunity to reach 86 Nick Scali stores in Australia and New Zealand, as well as between 90 to 100 Plush stores across Australia and New Zealand. In other words, its overall ANZ network could grow from 110 to up to between 180 to 200 stores.

On top of that, the company recently expanded into the UK after acquiring Fabb Furniture. It’s now rebranding those stores to Nick Scali. The UK has a much bigger population than Australia, so there’s plenty of room for growth there too.

For now, the ASX dividend stock has around 20 stores in the UK and the business has a long-term opportunity of between 60 to 70 UK stores. With how the business is selling Nick Scali furniture to UK stores, the UK segment’s gross profit margin is rapidly rising.

The UK business saw total January written sales of $6.7 million, with four refurbished stores achieving LFL store written sales growth of 32% compared to the prior corresponding period.

Better dividend yield

According to Commsec, for FY26, the business is projected to pay an annual dividend per share of 68.7 cents – that translates into a grossed-up dividend yield of 6.1%, including franking credits.

The dividend is forecast to grow even further by FY28, with a possible annual payout of 76.9 cents per share. That translates into a grossed-up dividend yield of 6.8%, including franking credits.

Overall, the future looks positive for dividend investors.

Cheaper valuation

It’s clear that the ASX dividend stock is cheaper – it has dropped by more than a third. But what earnings multiple is it now trading at?

According to the forecast on Commsec, the Nick Scali share price is valued at 19x FY26’s estimated earnings and 16x FY27’s estimated earnings.

I think this is a great time to invest in the ASX dividend stock, though it’s not the only ASX share that looks good value today.

The post 1 ASX dividend stock down 37% I’d buy right now appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
• Bell Potter names 3 Australian shares to buy
• 5 things to watch on the ASX 200 on Tuesday
• Morgans recommends these ASX shares as buys
• Broker names 3 ASX shares to buy 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 Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Mesoblast Ltd (ASX: MSB) shares could be seriously undervalued.

That’s the view of the team at Bell Potter, which remains very bullish on the biotechnology company’s shares.

What is Bell Potter saying?

Bell Potter was pleased to see that Mesoblast’s Ryoncil product is building momentum. This saw Mesoblast report sales in line with the mid point of its guidance range. It said:

MSB has reported 4Q26 revenues of US$36m (+20% vs 3Q26) in line with our forecast. FY26 revenues for Ryoncil totalled US$115m which is the mid point of guidance (i.e. US$110m – $120m). The full year result represents an outstanding result considering the product was launched from a standing start in April 2025, prior to broad reimbursement availability. 

Commercial adoption has been exceptionally strong and has continued to grow as barriers to adoption have fallen away – particularly for reimbursement. We expect Group revenues for FY26 of US$121m inclusive of Temcel royalties (Japan).

Looking ahead, the good news is the broker continues to believe that sales will grow strongly in FY 2027. It adds:

Our forecast for FY27 Ryoncil sales remains bullish at US$275m relative to the annualised exit rate of US$144m. The implied quarterly growth rate is ~27% compounding. We continue to believe this is achievable given the progress in recent months on two key fronts: a) expansion of the key account manager team servicing this market – 6 additional FTEs being hired to service large markets in the north eastern US and California; and b) MSB has only recently begun to gain traction with the very largest transplant centres in the US, both on the east and west coast. 

The forecast also includes a small revenue stream from off label use amongst young adults, where some payers have reimbursed hospitals for off label use in isolated cases following patients failing on SOC for SR aGvHD. For these reasons, we retain our FY27 forecast.

Mesoblast shares tipped to double

According to the note, Bell Potter has effectively upgraded Mesoblast shares to a buy rating (from speculative buy) and held firm with its $4.45 price target. This is approximately double its current share price. It concludes:

MSB is expected to commence submission of the various modules of the Biological Licence Application for Rexlemestrocel-L in heart failure and commence recruitment of the adult study in GvHD (for Ryoncil). We expect MSB will also engage in preliminary discussions with distributors for Rexlemestrocel-L in the chronic lower back pain indication, ahead of the phase 3 readout in mid CY27. 

Investment thesis: TP $4.45 (unchanged) There are no changes to earnings and we retain our $4.45 target price and Buy rating. As MSB is generating strong revenue growth the Speculative risk rating is no longer warranted.

The post Why Mesoblast shares could double in value appeared first on The Motley Fool Australia.

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

I believe ASX growth shares have excellent potential to deliver long-term returns because of their ability to compound earnings at a strong rate.

I’m going to highlight three investments I expect big things from over the next three to five years, which I’d happily invest $20,000 in.

Below are two of the ASX’s leading growth companies and one compelling exchange-traded fund (ETF).

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is one of the leading online retailers in Australia, selling hundreds of thousands of homewares and furniture through its website. A significant portion of the items are shipped straight from the supplier, reducing the need for the company to hold inventory and warehouse space – it creates a capital-light model for the business.

The company is growing rapidly and this is steadily giving it stronger scale benefits. Plus, it’s deploying technology and AI throughout its business, which is helping with costs and boosting customer conversion.

During this period of weaker consumer conditions, the ASX growth share is focused on increasing profitability. It expects to approximately double its operating profit (EBITDA) in FY27, even if trading conditions are challenging.

Over the longer-term, I expect rising e-commerce adoption in Australia can help the company increase its market share further. I’m also hopeful that the home improvement segment can continue growing in size and become a significant contributor in the coming years – home improvement revenue rose 46% in HY26 off a small base.

According to the projections on Commsec, the ASX growth share could grow its earnings per share (EPS) by around 160% between FY26 and FY28, with it trading at 32x FY28’s estimated earnings at the time of writing.

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

This is an ETF focused on finding quality growing businesses at a reasonable price, with solid financial strength. There are 250 international businesses in this portfolio that demonstrate ‘GARP’ characteristics – it offers good diversification across countries and sectors.

There are three boxes that stocks need to pick. First, they must demonstrate growth with both sales and earnings. Second, they should be good value on a price to earnings (P/E) ratio basis. Third, they must be quality in terms of low debt levels a high return on equity (ROE).

This high-quality fund has an annual management cost of just 0.3%. Impressively, it has delivered an average return per year of 17.5% since inception in September 2024. Of course, past performance is not a guarantee of future performance.

L1 Group Ltd (ASX: L1G)

Plenty of funds managers go through ups and downs, which can give investors buying opportunities. L1 is a highly respected funds management business with a compelling future with a number of high-performing funds.

Some of its funds like L1 Global Long Short Fund Ltd (ASX: GLS) have a strong track record for delivering returns, which is a very powerful tailwind for growth of funds under management (FUM) and management fees. The great returns also help attract more FUM.

The ASX growth share has highlighted a number of other factors that could help earnings rise in the coming years such as joint ventures, acquiring other fund managers and launching more strategies.

Additionally, the business is working on unlocking synergies from the Platinum acquisition.

According to the projection on Commsec, the ASX growth share is valued at 23x FY27’s estimated earnings and is forecast to grow earnings per share (EPS) by 25.5% in FY27.

The post Where I’d invest $20,000 into ASX growth shares right now appeared first on The Motley Fool Australia.

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• 2 ASX shares near 52-week lows I’d buy today
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• 2 top ASX shares to buy and hold for the next decade

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

The ASX is home to thousands of potential investments, though the biggest companies get the most attention. The smaller ASX shares could actually be some of the most compelling investments to own right now.

It’s quite easy to underestimate how much of a difference compounding can make to a company’s financial progress and what that can do for shareholders.

Fund managers from the listed investment company (LIC) WAM Active Ltd (ASX: WAA) have revealed two compelling ideas. WAM Active looks for mispriced opportunities in the Australian market.

Impressively, the WAM Active portfolio has returned an average of 14.4% per year since inception in January 2008, before fees, expenses and taxes. That shows the investment team are adept at picking ideas. Let’s look at the two names that WAM highlighted.

Solstice Minerals Ltd (ASX: SLS)

WAM described Solstice Minerals as a copper-gold exploration company advancing its Nanadie Project in Western Australia.

Last month, the company released updated drilling results from its first diamond drilling program. This confirmed the mineralised system extends to a depth of more than 600 metres and remains open at depth.

The fund manager also noted the ASX share’s drilling showed mineralisation continues well below the existing resource, which highlights the potential for the deposit to grow.

WAM said these results build on earlier drilling and continue to demonstrate the scale and continuity of the system.

The investment team concluded that the project currently hosts a 40.4 million tonnes mineral resource estimate and WAM believes the latest results highlight the potential for the resource to grow as drilling continues.

Southern Cross Electrical Engineer Ltd (ASX: SXE)

The other ASX share that WAM highlighted in the WAM Active portfolio was Southern Cross Electrical Engineering, a national provider of electrical, instrumentation and communications services. It also has growing exposure to data centres, infrastructure and electrification projects.

The fund manager noted that, last month, the company upgraded its earnings guidance and strengthened its balance sheet with a capital raising to support further growth.

WAM also said that the ASX share secured more than $150 million of new projects, including work linked to data centre construction.

With that update, Southern Cross Electrical Engineering upgraded its guidance for FY26 underlying operating profit (EBITDA) to at least $75 million, while introducing FY27 EBITDA guidance of at least $100 million.

WAM concluded:               

We believe the company is well positioned to continue growing earnings, supported by demand for data centre capacity and broader electrification trends, with the strengthened balance sheet providing flexibility to pursue further growth opportunities.

The post Leading fund manager reveals 2 exciting ASX shares to buy appeared first on The Motley Fool Australia.

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

BHP Group Ltd (ASX: BHP) shares finished last week on a strong note, climbing 2.5% on Friday to close at $58.28.

The ASX mining giant has eased around 4% over the past month, but the bigger picture remains impressive. BHP shares have surged 28% year to date and are up 54% over the past 12 months.

So, after such a powerful rally, should investors still be buying BHP shares in FY27?

What’s driving BHP higher?

BHP shares have ridden a powerful wave of investor enthusiasm for the mining sector, but it hasn’t just been lucky. The company has benefited from an 18% jump in copper prices and a 7% rise in iron ore prices, giving earnings a meaningful boost.

And while BHP remains one of the world’s biggest iron ore miners, it’s increasingly becoming a copper powerhouse. Copper has become the star of the show as demand continues to grow thanks to electric vehicles, renewable energy infrastructure, and expanding electricity networks.

The metal reached a record high of US$6.60 per pound in May, highlighting just how tight the market has become. That shift matters. During the first half of FY26, copper contributed more than half of BHP’s underlying EBITDA, underlining the company’s growing exposure to one of the world’s most sought-after commodities.

Strong operations, cost blowout

Operationally, the news has also been encouraging. In its third-quarter FY26 update, BHP said strong production from its flagship Escondida mine in Chile and Antamina mine in Peru meant full-year group production was expected to finish at the upper end of guidance.

Earlier this year, BHP secured a US$4.3 billion upfront payment through a long-term silver streaming agreement with Wheaton Precious Metals. The deal strengthened the balance sheet while allowing BHP to unlock value from future silver production at Antamina.

Not everything has gone according to plan for BHP shares, however.

On the downside, the company’s Jansen Stage 2 potash project in Canada suffered a sizeable cost blowout. Management of BHP shares now expects the project to cost US$6.9 billion, up from an earlier estimate of US$4.9 billion.

What do the experts think?

Broker sentiment is mixed on BHP shares, although few analysts appear outright bearish.

Morgan Stanley remains one of the most optimistic, retaining its overweight rating and $67.50 price target. That points to a potential 16% upside.

The broker believes recent weakness reflects little more than profit-taking after a strong rally and sees the pullback as a buying opportunity, particularly given its positive outlook for copper.

However, hold remains the dominant rating across the market.

Morgans recently reiterated its hold recommendation while increasing its 12-month target to $59.80.

Meanwhile, Bank of America Corp (NYSE: BAC) maintained its hold rating but lowered its target to $65. CitiGroup Inc (NYSE: C) and Jefferies also kept hold recommendations while trimming their respective price targets to $63 and $65.

Foolish takeaway

BHP enters FY27 in a strong position, supported by rising copper exposure, healthy operations, and a robust balance sheet.

While the easy gains may already be behind investors after the stock’s exceptional run, brokers generally expect BHP to remain well placed if copper prices stay elevated.

For long-term investors seeking exposure to high-quality mining assets, BHP shares continue to make a compelling case.

The post Should you buy BHP shares FY27? Here’s what experts are saying appeared first on The Motley Fool Australia.

More reading

• Do you want to earn passive income from your superannuation? Here’s a guide to get you started
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• VAS vs. VHY: Which is the better ASX ETF for retirement?
• How much must I invest in BHP shares to earn a $1,000 passive income in 2027?
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Bank of America is an advertising partner of Motley Fool Money. Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares rose 2.77% and produced total returns, including dividends, of 7% in FY26.    

Here, John Athanasiou from Red Leaf Securities shares his insights on three ASX 200 shares (courtesy The Bull). 

Are they a buy, hold, or sell in the new financial year? 

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price dropped 28% in FY26 to close out the year at $29.47.

ASX 200 tech shares were smashed between late August through to 30 March this year.

Since then, tech shares have recovered almost 20% while TechnologyOne stock has lifted 16%.

Athanasiou has a buy rating on TechnologyOne shares, commenting:

This technology company holds an embedded position in enterprise resource planning software across government, education and the corporate sector.

The business benefits from long duration contracts, expensive switching costs and a highly recurring revenue base underpinning strong earnings visibility.

The company has consistently delivered double-digit earnings growth, while maintaining disciplined cost control.

While the valuation remains elevated, it’s broadly supported by earnings visibility and structural digitisation tailwinds.

In a market favouring predictable cashflows and defensiveness, TechnologyOne remains a core long duration compounder.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price tumbled 29% in FY26 amid a broader healthcare sector rout. 

However, the ASX 200 healthcare share has been recovering ahead of its peers since hitting a 52-week low of $107.75 in February.

Pro Medicus shares are up 82% since that trough. The broader sector did not turn until 3 June but is rapidly rising.

Athanasiou explained his hold rating on Pro Medicus shares:

Pro Medicus remains a premium healthcare technology compounder with a dominant position in US medical imaging software.

The company exhibits strong operating leverage, minimal churn and structurally high returns on capital.

However, valuation is the binding constraint.

The market already embeds sustained high growth over an extended horizon, reducing the margin of safety.

PME remains a high quality hold, with upside dependent on continuing US market expansion and incremental large scale contract wins.

PLS Group Ltd (ASX: PLS)

The PLS Group share price soared 275% to close out FY26 at $5.02. 

PLS Group has reaped the rewards of strongly rebounding lithium prices over the past 12 months.  

Athanasiou has a sell rating on the ASX 200 lithium share, explaining:

PLS is a leading Australian lithium producer. Lithium remains structurally linked to electrification, but near term fundamentals are challenged by expanding supplies.

While PLS asset quality remains strong, earnings are highly leveraged to spot prices, generating volatility through the cycle.

Balance sheet strength provides a buffer, but doesn’t offset cyclical earnings pressure.

PLS remains a high risk recovery trade dependent on the timing of lithium re-balancing, with limited near term visibility.

The post Buy, hold, sell: TechnologyOne, Pro Medicus, PLS Group shares appeared first on The Motley Fool Australia.

More reading

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• 10 fantastic ASX shares to buy for FY27
• 9 ASX 200 shares with reiterated buy calls this week
• Why I’d buy and hold ResMed and TechnologyOne shares with $5,000
• Top 5 ASX 200 lithium shares of FY26

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 Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. 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.

Superannuation is not just a savings vehicle.

For investors who understand how to use it, it is one of the most tax-effective passive income generators available in the Australian financial system.

Earnings inside super during the accumulation phase are taxed at just 15%, compared to marginal rates outside super that can exceed 45%.

In retirement, those earnings become completely tax-free.

That tax advantage, compounded over decades, is what turns ordinary dividend income into extraordinary retirement wealth.

Start with what you actually own inside superannuation

Most Australians sit in a default balanced or growth fund option and have no clear picture of what they actually own.

The first step toward generating passive income from super is understanding your current investment mix and whether it is oriented toward income-producing assets.

Furthermore, the concessional contributions cap just rose to $32,500 from 1 July 2026. This has given investors more room to build a passive income portfolio inside this tax-advantaged structure.

Every additional dollar contributed at the 15% concessional rate rather than at a higher marginal rate is a dollar compounding more effectively toward retirement income.

Here are three ASX stocks known for their ability to generate passive income.

Commonwealth Bank of Australia: the fully franked income anchor

Commonwealth Bank of Australia (ASX: CBA) is the most widely held stock inside Australian superannuation funds for a straightforward reason.

CBA pays a fully franked dividend, expected at approximately $5.15 per share in FY26.

For a super fund in accumulation phase taxed at 15%, the 30% franking credit attached to CBA’s dividend generates an additional net refund. This effectively lifts the after-tax yield above the headline figure.

At the current share price of approximately $169, CBA’s fully franked dividend implies a grossed-up yield of approximately 4.4%.

Inside super, that turns into one of the most tax-effective income stream available from any large-cap ASX stock.

What’s more, CBA has grown its dividend every year since 2021, giving investors a passive income stream that grows consistently each year.

Betashares Australia 200 ETF: instant diversification at the lowest possible cost

For investors who want broad exposure to Australia’s dividend economy without picking individual stocks, the Betashares Australia 200 ETF (ASX: A200) is the most cost-efficient option available.

A200 charges a management fee of just 0.04% per annum. This is the lowest among Australian share ETFs. Furthermore, the ETF pays quarterly distributions with 85.14% franking.

That quarterly income, combined with partial franking credits, gives super fund investors regular cash flow that compounds more frequently than the twice-yearly dividends paid by most individual ASX stocks.

The underlying index has returned approximately 8.53% per annum including dividends since inception.

For investors starting out with passive income investing inside super, A200 is the simplest and most effective starting point available.

BHP: commodity income with a structural growth tailwind

BHP Group Ltd (ASX: BHP) adds a third dimension: commodity income with a strong structural growth story behind it.

The company pays fully franked dividends twice per year. Specifically, BHP pays a trailing twelve-month dividend of approximately $1.96 per share, implying a yield of approximately 3.36% at the current share price of $58.28.

For the first time in BHP’s 136-year history, copper earnings exceeded iron ore contributions in the first half of FY26. This was driven by AI data centre construction, electric vehicle adoption, and grid infrastructure investment.

This structural tailwind supports the earnings that fund BHP’s dividend, giving superannuation fund income investors a defensible long-term outlook.

Foolish takeaway

Passive income from superannuation is the natural result of investing in quality, income-producing assets inside a structure that taxes earnings at 15% rather than your marginal rate.

CBA provides the fully franked income anchor. A200 provides the low-cost diversification with quarterly distributions. BHP provides the commodity income growth tailwind.

Together, they form the foundation of a portfolio that compounds into meaningful passive income over a superannuation career.

The post Do you want to earn passive income from your superannuation? Here’s a guide to get you started appeared first on The Motley Fool Australia.

More reading

• Should you buy BHP shares FY27? Here’s what experts are saying
• Top brokers name 3 ASX shares to buy next week
• If I invest $10,000 in CBA shares, how much passive income will I receive in 2027?
• VAS vs. VHY: Which is the better ASX ETF for retirement?
• How much do I need in my superannuation to get $50k per year in passive income?

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.

It’s pay day for iShares S&P 500 ETF (ASX: IVV) investors!

And anyone else who owns iShares ETFs, for that matter.

BlackRock is paying its next lot of distributions (dividends) for all of its ASX exchange-traded funds (ETFs) today.

There are some mega payouts this dividend season, including six ASX ETFs paying a 10%-plus dividend yield in a single hit.

Currency-hedging has also magnified returns by up to 10x in some cases.

For example, iShares Global 100 (Currency-hedged) ETF (ASX: IHOO) will pay investors $10.82 per unit.

Its unhedged counterpart, iShares Global 100 ETF (ASX: IOO), will pay $1.82 per unit.

iShares ASX ETF dividends

Here is an abridged list of the finalised distributions that iShares ETF investors will receive today.

ASX ETF	Distribution
iShares Core S&P/ASX 200 ETF (ASX: IOZ)	25 cents per unit
iShares S&P 500 ETF (ASX: IVV)	23 cents per unit
iShares S&P 500 (AUD Hedged) ETF (ASX: IHVV)	270 cents per unit
iShares Global 100 ETF (ASX: IOO)	182 cents per unit
iShares Global 100 (Currency-hedged) ETF (ASX: IHOO)	1082 cents per unit
iShares S&P/ASX 20 ETF (ASX: ILC)	29 cents per unit
iShares S&P/ASX Small Ordinaries ETF (ASX: ISO)	17 cents per unit
iShares Europe ETF (ASX: IEU)	720 cents per unit
iShares MSCI Japan ETF (ASX: IJP)	209 cents per unit
iShares 15+ Year Australian Government Bond ETF (ASX: ALTB)	104 cents per unit
iShares Core Cash ETF (ASX: BILL)	34 cents per unit
iShares Core FTSE Global Infrastructure (AUD Hedged) ETF (ASX: GLIN)	133 cents per unit
iShares Core FTSE Global Property Ex Australia (AUD Hedged) ETF (ASX: GLPR)	85 cents per unit
iShares Core Composite Bond ETF (ASX: IAF)	76 cents per unit
iShares MSCI South Korea ETF (ASX: IKO)	1,399 cents per unit
iShares MSCI EAFE ETF (ASX: IVE)	308 cents per unit
iShares 20+ Year US Treasury Bond (AUD Hedged) ETF (ASX: ULTB)	212 cents per unit
iShares S&P/ASX Dividend Opportunities ESG Screened ETF (ASX: IHD)	11 cents per unit
iShares Government Inflation ETF (ASX: ILB)	70 cents per unit
iShares Nasdaq Top 30 ETF (ASX: ITEK)	202 cents per unit
iShares Enhanced Cash ETF (ASX: ISEC)	29 cents per unit
iShares S&P Small-Cap ETF (ASX: IJR)	82 cents per unit
iShares S&P Mid-Cap ETF (ASX: IJH)	21 cents per unit
iShares Global Consumer Staples ETF (ASX: IXI)	126 cents per unit
iShares Global Healthcare ETF (ASX: IXJ)	154 cents per unit
iShares S&P China Large-Cap ETF (ASX: IZZ)	45 cents per unit
iShares MSCI Emerging Markets ETF (ASX: IEM)	75 cents per unit
iShares Asia 50 ETF (ASX: IAA)	196 cents per unit

 

The post ASX IVV and other iShares ETFs are paying dividends today! appeared first on The Motley Fool Australia.

More reading

• How to go from zero to $50,000 with ASX shares
• 3 ASX ETFs to buy and hold for 10 years
• SpaceX will be included in the Nasdaq index this week. Here’s what that means for ASX investors
• The currency-hedged ASX ETFs magnifying dividends by up to 10x this season
• Own ASX IVV or other iShares ETFs? Here is your next dividend

Motley Fool contributor Bronwyn Allen has positions in iShares S&P 500 Aud Hedged ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended iShares S&P 500 ETF. The Motley Fool Australia has recommended iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.