Author: openjargon

March is shaping up to be an important month for income investors.

With dividend guidance clearer and market volatility still creating pockets of value, this could be a good time to position a portfolio for reliable passive income through the rest of 2026.

Here are three of the best ASX dividend shares to consider this month.

APA Group (ASX: APA)

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

APA owns and operates energy infrastructure assets across Australia. This includes gas transmission pipelines and renewable energy infrastructure. These are long-life assets that typically operate under contracted or regulated frameworks.

That structure gives APA strong visibility over future cash flows. It is not a business that relies on day-to-day consumer spending or short-term economic swings.

For FY 2026, APA is guiding to a dividend of 58 cents per share. Based on its current share price, this equates to a dividend yield of approximately 6.2%.

For investors seeking above-average yield backed by essential infrastructure assets, APA stands out as a best buy.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that could be among the best to buy this month is Rural Funds Group.

It provides exposure to agricultural assets including cattle properties, almond orchards, vineyards, and cropping farms. Rather than farming directly, it typically leases these assets to experienced operators under long-term arrangements.

This model allows Rural Funds to generate rental-style income while benefiting from exposure to Australian agricultural land and food production.

The company is guiding to dividends of 11.7 cents per share in FY 2026. Based on its current share price, this represents an attractive dividend yield of around 5.5% at current levels.

Agriculture can have cyclical elements, but long-term demand for food production and land scarcity provide structural support for the sector.

Transurban Group (ASX: TCL)

A final ASX dividend share to consider in March is Transurban.

Transurban owns and operates toll roads across Australia and North America, including major urban motorway networks. These are critical transport links with high barriers to entry and long concession lives.

Traffic volumes can fluctuate slightly with economic conditions, but over time, population growth and urban expansion tend to drive higher usage.

For FY 2026, Transurban is guiding to a dividend of 69 cents per share. Based on its current share price, this equates to an attractive dividend yield of approximately 4.75%.

The post 3 of the best ASX dividend shares to buy in March appeared first on The Motley Fool Australia.

More reading

• How to make $25,000 of passive income a year
• ASX 200 at a record high? Here’s where I still see value
• If I had to build an ASX share portfolio from scratch today, here’s how I’d do it
• 3 strong ASX dividend stocks for retirees to buy
• With a yield of 6.4%, is this one of the best ASX shares to consider buying for passive income?

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 positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group, Rural Funds 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.

This ASX retail stock has been sliding steadily since hitting a 52-week high of $7.70 in October.

Since then, shares in ASX retail stock Harvey Norman Holdings Ltd (ASX: HVN) have tumbled 26%, wiping billions from its market value.

For a company long seen as a retail heavyweight, that’s a sharp pullback. So, what’s going on?

Softer than expected earnings

Last week’s half-year results of the ASX retail stock didn’t exactly inspire confidence. While the company remained profitable and cash generative, earnings came in slightly softer than many had hoped.

The owner of brands like Harvey Norman, Domayne, and Joyce Mayne reported a 6.9% increase in sales revenue to $5.16 billion and a 16.5% lift in net profit after tax to $321.9 million. Sales momentum was patchy across regions, and margins felt the squeeze from discounting and cautious consumers.

In short, it wasn’t a disaster — but it wasn’t a knockout either.

Strengths still matter

Harvey Norman isn’t a speculative small-cap. It’s a diversified retail group spanning furniture, bedding, electronics and appliances, with operations in Australia, New Zealand, Ireland and Asia.

Its franchise model helps limit capital intensity and supports steady cash flow. The company also owns a significant property portfolio. That’s a hidden asset that underpins its balance sheet and provides long-term flexibility.

Importantly, the $7 billion ASX retail stock has navigated retail cycles before. When consumer confidence rebounds and housing activity lifts, big-ticket categories like furniture and appliances tend to follow.

Eroding profits, delayed purchasing

But retail is tough right now. Higher interest rates and cost-of-living pressures have weighed on discretionary spending. Shoppers are trading down, delaying purchases, or hunting for deals.

Competition is intense, both from local rivals and global online players. Margin pressure can quickly erode profits if discounting ramps up.

There’s also the question of timing. Even if a recovery comes, it may take longer than bulls hope. Retail turnarounds rarely happen overnight.

What next for the ASX retail stock?

Broker views are mixed. Some analysts see value emerging after the recent pullback, arguing that much of the bad news is already priced in. They point to the company’s property backing, resilient balance sheet and potential upside if consumer conditions stabilise.

Others remain cautious, trimming earnings forecasts and price targets for the ASX retail stock after the latest result. For them, the near-term outlook is still cloudy, and clearer signs of sales momentum are needed before turning bullish.

Bell Potter has a buy rating and $8.30 price target on its shares, which implies 46% upside.

The broker is one of the more bullish market watchers. The average 12-month price target is $6.65, a potential gain of 17%.

The post Can this $7 billion ASX retail stock stage a comeback? appeared first on The Motley Fool Australia.

More reading

• Why Bapcor, Brainchip, Coles, and Harvey Norman shares are dropping today
• Harvey Norman posts 1H26 result
• 2 ASX dividend shares to buy for passive income
• Analysts say these ASX dividend shares are buys for income investors
• Which ASX 200 retail stock looks stronger: JB Hi-Fi or Harvey Norman?

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

Telstra Group Ltd (ASX: TLS) is rarely the most exciting share on the ASX, but I think that is part of its appeal. It generates strong cash flow, operates in an essential industry, and has been executing well against its strategy.

Here are three reasons I would consider buying Telstra shares right now.

1. A growing and well-supported dividend

One of the biggest attractions of Telstra shares is income.

The company recently declared an interim dividend of 10.5 cents per share, which was up on the prior period and approximately 90% franked. If we annualise that interim payment, it suggests around 21 cents per share for the full year.

At a share price of $5.23, that implies a forward dividend yield of roughly 4%. That is not an extremely high yield, but it is better than a term deposit and reflects a payout that is comfortably supported by cash earnings. 

Telstra has also been disciplined with capital management, including buybacks, which support earnings per share and dividend per share growth over time by reducing the total number of shares outstanding.

For income-focused investors, that combination of a good dividend yield and growth potential is attractive.

2. Mobile momentum and pricing power

Telstra’s mobile business remains the engine of the group.

The company has continued to grow mobile services revenue, supported by higher average revenue per user and ongoing customer demand for its premium network. In a rational competitive environment, Telstra’s brand strength and network quality allow it to defend margins more effectively than many peers.

Telecommunications is an essential service. Even in slower economic periods, consumers and businesses prioritise connectivity. That defensive characteristic gives Telstra a level of earnings resilience that I value in a portfolio.

3. Clear strategy and disciplined execution

Telstra’s Connected Future 30 strategy is focused on driving sustainable earnings growth through cost discipline, operating leverage, and smarter capital allocation.

In recent periods, the company has delivered on this. That tells me management is focused on execution, not just ambition.

When I look at Telstra today, I see a simpler, more focused business compared to the past. It is concentrating on connectivity, infrastructure, and disciplined investment rather than chasing unrelated growth initiatives.

That clarity of direction gives me confidence in its medium-term outlook.

Foolish takeaway

Telstra shares may not deliver explosive growth, but I wouldn’t let that put you off.

At $5.23 per share, investors are getting a defensive business with mobile momentum, improving cost control, and a dividend yield of around 4% that is largely franked.

For those seeking steady income and moderate earnings growth rather than high volatility, I think Telstra shares look like a sensible buy right now.

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

More reading

• 5 top ASX 200 shares I’d buy in March
• The best ASX dividend stock to buy in March
• How to make $25,000 of passive income a year
• Why I’d buy CBA and these ASX 200 shares in March
• 3 ASX dividend stocks built to pay you year after year

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

Buy and hold investing does not have to mean buying individual ASX shares.

For many investors, exchange traded funds (ETFs) offer a cleaner, lower-maintenance way to build long-term wealth. With a single trade, you can gain exposure to entire regions, themes, or investment styles.

With that in mind, here are five fantastic ASX ETFs that could be worth buying and holding for years to come.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The first ASX ETF that could be a buy is the Betashares Asia Technology Tigers ETF. It is an easy and effective way to access the digital transformation happening across Asia.

This fund includes major regional innovators such as Tencent (SEHK: 700), Alibaba (NYSE: BABA), and Baidu (NASDAQ: BIDU). These companies are deeply embedded in ecommerce, cloud computing, artificial intelligence, and digital payments across some of the world’s fastest-growing economies.

Rather than relying solely on US tech giants, this fund gives exposure to businesses shaping how hundreds of millions of consumers interact online throughout China and broader Asia. As internet penetration, middle-class wealth, and AI adoption expand across the region, that structural growth story remains compelling.

Betashares Nasdaq 100 ETF (ASX: NDQ)

Another ASX ETF that could be a top buy and hold pick is the Betashares Nasdaq 100 ETF. It provides investors with exposure to the heavyweights of global innovation.

This includes companies such as Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and Netflix (NASDAQ: NFLX). While best known for its technology tilt, the Nasdaq 100 also includes global consumer brands and platform businesses with enormous pricing power.

The common thread is scale. Many of these companies generate massive free cash flow and reinvest aggressively into research, infrastructure, and new products. Over long periods, that reinvestment has translated into earnings growth that outpaces broader markets.

Betashares Global Defence ETF (ASX: ARMR)

The Betashares Global Defence ETF provides investors with exposure to global defence and security spending.

Its holdings include companies such as Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC), and RTX Corporation (NYSE: RTX). As geopolitical tensions rise and governments commit to long-term military and cybersecurity budgets, defence spending has become less cyclical and more structural.

This fund was recently recommended by analysts at Betashares.

VanEck MSCI International Quality ETF (ASX: QUAL)

The VanEck MSCI International Quality ETF is built around the idea of owning a collection of high-quality companies.

The fund screens for businesses with high returns on equity, stable earnings growth, and low financial leverage. Current holdings include Meta Platforms (NASDAQ: META), Eli Lilly (NYSE: LLY), and Visa (NYSE: V).

These are companies that consistently convert revenue into profit and often dominate their industries. Quality investing does not chase hype. It focuses on balance sheets, margins, and durability. Analysts at VanEck recently recommended this fund.

Vanguard Australian Shares Index ETF (ASX: VAS)

The Vanguard Australian Shares Index ETF may be the most straightforward ETF on this list.

It tracks the broad Australian share market, giving exposure to companies such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Ltd (ASX: CSL).

Owning this ASX ETF means participating in Australia’s banking system, resource exports, healthcare innovation, and consumer economy all at once. It also provides access to the relatively attractive dividend yields that the local market is known for.

The post 5 fantastic ASX ETFs to buy and hold for 10 years appeared first on The Motley Fool Australia.

More reading

• New to the share market? Here are 3 ASX ETFs to buy for easy investing
• Why now could be a great time to buy these amazing ASX ETFs
• The lazy investor’s guide to ASX ETFs
• If I had to build an ASX share portfolio from scratch today, here’s how I’d do it
• If AI isn’t just a US story, these 2 ETFs could benefit

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Betashares Capital – Asia Technology Tigers Etf, and CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Baidu, BetaShares Nasdaq 100 ETF, CSL, Meta Platforms, Microsoft, Netflix, Nvidia, RTX, Tencent, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group and Lockheed Martin. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, BHP Group, CSL, Meta Platforms, Microsoft, Netflix, Nvidia, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with the smallest of gains. The benchmark index rose a touch to 9,200.9 points.

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

ASX 200 to edge lower

The Australian share market looks set for a subdued session on Tuesday despite a decent start to the week in the US. According to the latest SPI futures, the ASX 200 is poised to open the day 12 points or 0.15% lower. In late trade on Wall Street, the Dow Jones is up 0.1%, the S&P 500 is up 0.3%, and the Nasdaq is up 0.6%.

Oil prices jump

It could be a good session for ASX 200 energy shares Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 6.3% to US$71.27 a barrel and the Brent crude oil price is up 6.8% to US$77.85 a barrel. This was driven by the war in Iran.

Magellan shares on watch

Magellan Financial Group Ltd (ASX: MFG) shares will be on watch today when they return from a trading halt. On Monday, the fund manager announced a proposed $1.6 billion merger with Barrenjoey. Magellan’s chair, Andrew Formica, said: “The merger with Barrenjoey marks a transformative step in MFG’s evolution, bringing together two highly complementary businesses to create an Australian financial services group with meaningful scale and breadth.”

Gold price storms higher

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a good session on Tuesday after the gold price stormed higher overnight. According to CNBC, the gold futures price is up 1.8% to US$5,342.1 an ounce. This was driven by strong demand for safe haven assets in response to the war in the Middle East.

ASX 200 shares going ex-div

A number of ASX 200 shares are going ex-dividend today and could trade lower. This includes pizza chain operator Domino’s Pizza Enterprises Ltd (ASX: DMP), property listings giant REA Group Ltd (ASX: REA), scrap metal company Sims Ltd (ASX: SGM), and logistics solutions company Qube Holdings Ltd (ASX: QUB). The latter will be paying eligible shareholders a 5.4 cents per share dividend next month on 9 April.

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

More reading

• ASX 200 shares to buy on the cheap right now
• Here are the top 10 ASX 200 shares today
• This ASX 200 energy stock just jumped 13%. Here’s why
• Oil prices rocket to 4-year high as ASX energy giants surge
• Santos and Woodside shares surging higher on Monday as oil price in focus amid Iran strikes

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

Investing in your 40s is about balance. You’re no longer just building from scratch, but you’re also not in full capital-preservation mode. You still need growth, yet you probably want more resilience and structure than you did in your 20s.

For many investors in this stage of life, exchange-traded funds (ETFs) can provide exactly that mix of growth, diversification, and simplicity.

Here are three ASX ETFs I think could make a lot of sense for investors in their 40s.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

In your 40s, I still believe global exposure is essential.

The Vanguard MSCI Index International Shares ETF provides access to around 1,300 stocks across developed markets outside Australia. That includes global leaders in technology, healthcare, consumer goods, and industrials.

The Australian market is heavily concentrated in banks and miners. The VGS ETF helps diversify away from that concentration and gives exposure to sectors that can drive long-term structural growth.

With potentially 20 or more years until retirement, maintaining meaningful exposure to global growth remains important.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

If I’m in my 40s, I’d be increasingly focused on quality.

The VanEck Morningstar Wide Moat ETF invests in US-listed stocks that analysts believe have competitive advantages, or moats, and are trading at attractive valuations.

This aligns closely with the philosophy of investors like Warren Buffett, who emphasise buying wonderful businesses with sustainable advantages rather than chasing speculative growth.

For someone in their 40s, the MOAT ETF can offer exposure to high-quality global stocks while maintaining a valuation discipline. It is a way to position a portfolio for resilience and strong business fundamentals without selecting individual stocks.

Vanguard Diversified Growth Index ETF (ASX: VDGR)

Simplicity becomes increasingly valuable as life gets busier.

The Vanguard Diversified Growth Index ETF provides exposure to Australian, international, and emerging-market shares, as well as fixed income, in a single fund. It is designed as a diversified growth portfolio, meaning it leans toward equities but includes some defensive assets.

For investors in their 40s who may not want to manage asset allocation themselves, the VDGR ETF can act as a core holding. It automatically maintains diversification across asset classes, helping to smooth volatility over time.

That structure can make it easier to stay invested during market swings.

Why ETFs can be powerful in your 40s

By your 40s, wealth is often starting to compound meaningfully. The priority shifts from chasing maximum upside to building something durable.

ETFs help reduce single-stock risk, provide broad diversification, and keep costs relatively low. They also make regular investing straightforward, which is crucial for staying disciplined.

A combination of global market exposure through the VGS ETF, quality-focused investing via the MOAT ETF, and diversified asset allocation through the VDGR ETF could form a well-balanced framework for this stage of life.

Foolish Takeaway

Your 40s are a pivotal investing decade. There is still time for growth, but portfolio construction and risk management matter more than ever. ASX ETFs can provide a thoughtful blend of global exposure, quality tilt, and diversification.

The post Why these ASX ETFs could be strong buys for investors in their 40s appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs for a stress-free start to investing
• The $10,000 ASX share portfolio I’d build for a 25-year-old today
• 2 incredible ASX share investments I’d buy to build long-term wealth
• How to make $25,000 of passive income a year
• The lazy investor’s guide to ASX ETFs

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

While the broader S&P/ASX 200 Index (ASX: XJO) has edged just 5.8% higher this year, the real opportunities may be lurking beneath the surface. Brokers have identified 2 ASX 200 shares that could outpace the benchmark in 2026: Mesoblast Ltd (ASX: MSB) and Zip Co Ltd (ASX: ZIP).

Here’s why analysts think these ASX growth shares are gearing up to outperform.

Mesoblast: high-risk, high-reward biotech

This ASX 200 share is not for the faint-hearted. It’s a classic high-risk, high-reward biotech play, that has lost 25% in value so far this year.

However, momentum seems to be finally swinging its way. Mesoblast released its half-year result and an operational update on Friday.

For the six months to 31 December 2025, the ASX 200 share delivered total revenue of US$51.3 million. That’s a massive jump from just US$3.2 million a year earlier. While the company still reported a net loss of US$40.2 million, this was an improvement on last year’s US$47.9 million loss.

Operationally, the rollout of Mesoblast’s leading product Ryoncil continues to build momentum. So far, 49 transplant centres are up and running, with a target of 64 centres covering 94% of US transplants. Ryoncil generated gross sales of US$57 million and net revenue of US$48.7 million after adjustments. The product also delivered gross profit (excluding amortisation) of US$44.2 million during the half.

Mesoblast finished the period with US$130 million in cash and locked in a US$125 million five-year non-dilutive credit facility, giving its balance sheet a serious boost.

But let’s be clear — this story still carries real risk. Mesoblast has burned significant capital over years of development. The cell therapy space is competitive. Regulatory delays have tested investor patience before. And even with approvals in hand, commercial execution must deliver.

If momentum continues, the upside could be meaningful. If it stumbles, another nosedive of the ASX 200 share will follow just as quickly.

Bell Potter is bullish on the $3 billion biotech stock. The broker just retained its speculative buy rating and $4.45 price target. Based on its current share price, this points to potential upside of roughly 116% over the next 12 months.

Zip: sharp selloffs, punchy rebounds

The ASX 200 share has been a rollercoaster in recent weeks. A sharp sell-off after its full-year result was followed by punchy a rebound as bargain hunters stepped in. Still, the damage for this year stands at a 45% decline to $1.75 at the time of writing.

On the surface, the numbers of the ASX 200 share weren’t bad. Earnings jumped. Guidance ticked higher. Momentum looked solid. But investors zoomed in on the details.

Margins slipped to 7.9% as the faster-growing, lower-margin US business drove more volume. Net bad debts edged up to 1.73% of TTV — still within board targets, but high enough to keep nerves on edge.

Management also flagged that second-half cash EBITDA will mirror the first. In other words, profit growth may stall before it accelerates again.

The deeper issue is confidence. The buy now, pay later space still faces regulatory pressure, rising competition, and the threat of higher credit losses if consumers tighten spending. Those risks haven’t gone away. And for an ASX 200 share that’s already been heavily sold, every hint of weakness gets punished.

What happens next?

Execution is everything. Zip needs to turn new products into reliable, repeat revenue and prove margins can stabilise.

Not everyone is bearish. UBS remains positive, keeping its buy rating on the ASX 200 shares and a $4.50 price target. That suggests potential upside of 157% over the next 12 months.

The post 2 ASX 200 shares tipped to more than double in value appeared first on The Motley Fool Australia.

More reading

• Why this ASX 200 stock is being tipped to rocket 100%
• 2 battered ASX shares that look too cheap to ignore
• Why Zip shares are bouncing back 5% today
• What’s going on with Mesoblast shares today?
• Mesoblast shares: Revenue surges on Ryoncil® US launch in H1 FY2026

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.

Not everyone wants to monitor earnings updates, track sector rotations, or decide which individual dividend stock to buy next.

Some investors simply want reliable income, broad diversification, and minimal effort. If that sounds appealing, I think there’s a strong case for building a “lazy” passive income portfolio using just one ASX ETF.

If I had to choose only one, I’d look at the Vanguard Australian Shares High Yield ETF (ASX: VHY).

Here’s why.

Diversification in a single trade

The VHY ETF currently holds 79 ASX shares, focusing on companies with higher forecast dividend yields.

With one purchase, you gain exposure to some of the largest income generators in the Australian market. Its top holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), Rio Tinto Ltd (ASX: RIO), Woodside Energy Group Ltd (ASX: WDS), and Transurban Group (ASX: TCL).

That mix gives exposure across banks, resources, infrastructure, energy, and telecommunications. Instead of trying to pick which bank will perform best or whether BHP is preferable to Rio, the ETF spreads your money across them.

For a passive-income investor who wants simplicity, that level of diversification is powerful.

A balanced income stream

The Vanguard Australian Shares High Yield ETF currently averages a dividend yield of around 4%, paid quarterly.

In my view, that is an attractive starting point. It is high enough to generate meaningful income, but not so high that it suggests excessive risk. Very high dividend yields can sometimes signal stretched payout ratios or vulnerable earnings. A diversified 4% yield backed by large, established ASX shares feels more sustainable.

For investors who are still accumulating wealth, those dividends can be reinvested to buy more ETF units, which in turn generate more income. Over time, that compounding effect can significantly boost total returns.

For investors approaching retirement, the same income stream can instead be used to support living expenses.

Why this suits “lazy” investors

A one-ETF approach removes complexity.

There is no need to monitor individual earnings reports closely or worry about whether one company might cut its dividend. The ETF structure spreads that risk across dozens of holdings.

It also makes regular investing straightforward. You can add to the same fund consistently each month or quarter without constantly reassessing your portfolio construction.

That simplicity can be an advantage. In my experience, the fewer moving parts in a portfolio, the easier it is to stay disciplined during market volatility.

The trade-off to understand

Of course, using just one ETF means your exposure is concentrated in the Australian market. The VHY ETF has meaningful weightings in banks and resource companies because those sectors tend to offer higher dividend yields.

That concentration is part of the design. It supports income, but it also means performance will be influenced by how those sectors perform over time.

For an investor seeking global diversification, a single high-yield Australian ETF may not be enough. But for someone who wants a straightforward, income-focused strategy with minimal effort, it can be a very practical solution.

Foolish Takeaway

Building a passive income portfolio does not need to be complicated.

With the Vanguard Australian Shares High Yield ETF, you gain exposure to 79 dividend-paying ASX shares in a single trade, with an average yield of around 4%.

For investors who value simplicity, diversification, and steady income over constant stock picking, this kind of one-ETF strategy could be one of the easiest ways to build a truly “lazy” passive income portfolio on the ASX.

The post How to build a ‘lazy’ passive income portfolio with just 1 ASX ETF appeared first on The Motley Fool Australia.

More reading

• How to make $25,000 of passive income a year
• Here’s a $50,000 starter dividend portfolio delivering passive income
• 3 ASX ETFs for investors chasing yield and growth
• These are my top ASX passive income picks
• How ETFs can help investors build significant passive income

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Transurban 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 Telstra Group and Transurban Group. The Motley Fool Australia has recommended BHP Group and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Buying the right ASX shares offers one of the best means I know of for Australians to secure a welcome extra passive income during their retirement years.

One of the advantages we have Down Under, which investors in US and many international stocks don’t, is that a lot of ASX dividend shares come with full franking credits.

That means the companies you’ve invested in have already stumped up the 30% corporate taxes on the dividends they’re paying. Meaning you get credit for that when it comes time to pay your own taxes.

Nice, right?

Now, there’s no getting around this first part.

If you don’t have any savings at 30, and you’re aiming to retire with an extra $24,600 of passive income a year by 65, you’ll need to start putting away a little extra cash each month to buy ASX shares.

Let’s say $100 per month. That’s less than $25 each week.

Buy $100 a month of quality ASX shares

To begin with, you don’t need to stick strictly to ASX dividend stocks. Instead, do your own research – or reach out for expert advice – and invest in a diversified basket of quality shares. Ones that are likely to outperform or at least match the benchmark returns to reach your passive income retirement goal.

Let’s use the S&P/ASX 200 Gross Total Return Index (ASX: XJT) – which includes all cash dividends reinvested on the ex-dividend date – as our benchmark.

Over the last five years, the ASX 200 Total Return Index has gained 64.6%. That works out to around a 10.5% annual gain, compounded.

Now, here’s the real power of compounding at work.

By investing $100 a month in ASX shares and returning an average of 10.5% per year, you’ll have secured $21,801 in 10 years, $81,050 in 20 years, $251,640 in 30 years, and … drum roll please … $432,264 at the end of 35 years.

All from that $100 per month, or a total of $42,000 invested in ASX shares over the years.

Reposition into top ASX passive income stocks

Now you’ve reached 65, with one eye firmly on that retirement boosting passive income stream.

Here is where you can reposition your investment portfolio wholly into dividend-paying ASX 200 shares. Ideally, ones offering full franking credits.

If you were eyeing a similar situation today, three top ASX dividend shares you might want to consider adding to your passive income portfolio are Woodside Energy Group Ltd (ASX: WDS), Fortescue Ltd (ASX: FMG), and Bank of Queensland Ltd (ASX: BOQ).

Over the past 12 months, Bank of Queensland shares have delivered 38 cents per share in fully-franked dividends. That sees the ASX 200 bank stock trading on a trailing dividend yield of 5.5%.

Fortescue shares have paid (or shortly will pay) $1.22 in fully-franked dividends over 12 months. Fortescue shares trade on a trailing dividend yield of 6%.

And Woodside shares have paid out (or shortly will) $1.652 apiece in fully-franked dividends over a year. Woodside shares trade on a 5.5% trailing dividend yield.

So, how about that passive income?

Well, if you were to invest an equal amount into all three ASX 200 shares, you’d earn an average yield (based on the past 12 months) of 5.7%.

Meaning you can now take out $24,639 a year in passive income from your $432,264 investment portfolio without drawing down on that capital.

The post No savings at 30? Here’s how I’d aim for an extra $24,600 a year in retirement boosting passive income buying ASX shares appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Oil prices rocket to 4-year high as ASX energy giants surge
• Why Ampol, EOS, Lynas, and Woodside shares are roaring higher today
• Why Brainchip, Fortescue, Qantas, and Westpac shares are dropping today
• Santos and Woodside shares surging higher on Monday as oil price in focus amid Iran strikes

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

The S&P/ASX 200 Index (ASX: XJO) managed to kick off the trading week on a positive note, despite a rough start to trading this morning. Amid concerning geopolitical developments over the weekend, the ASX 200 opened deep in the red this morning, but managed to recover throughout the day to close 0.0025% higher.

That leaves the index right on yet another record high of 9,200.9 points.

This volatile start to the trading week for Australian investors follows a decidedly negative finish to the American trading week on Saturday morning (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) finished its week on a low note, sinking 1.05%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was in a similar boat, dropping 0.92%.

But let’s return to this week and the local markets now with a look at how the different ASX sectors handled today’s temperamental trading conditions.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• These ASX defence stocks are rallying. Is it too late to buy?
• This ASX 200 energy stock just jumped 13%. Here’s why
• Oil prices rocket to 4-year high as ASX energy giants surge
• Why DroneShield shares soared in February and are rocketing into March
• Why Ampol, EOS, Lynas, and Woodside shares are roaring higher today

Motley Fool contributor Sebastian Bowen has positions in Newmont. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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.