Author: openjargon

You won’t often hear the word ‘safe’ here at The Motley Fool. No ASX share, or share-based exchange-traded fund (ETF) for that matter, can be considered completely safe, speaking from a capital preservation standpoint.

Markets can price businesses however they like. This pricing is fickle, though, and can change for no good reason. No one knows what kind of profits a business is going to bring in next month, next year or five years from now. And that makes pricing companies accurately extremely difficult.

As such, no business, whether it be Commonwealth Bank of Australia (ASX: CBA) or Ampol Ltd (ASX: ALD), can be relied upon to preserve your hard-earned dollars if you buy its shares. Nor can they be relied upon completely for dividend income. A company can only pay out dividends from the pool of profits that it amasses. Given that this pool of profits is impossible to anticipate with certainty, so too are any potential dividends derived from it.

Income-focused ASX ETFs that fund income from ASX shares, such as the Vanguard Australian Shares High Yield ETF (ASX: VHY), fall into the same bucket.

But there is one ASX ETF that investors can buy today that can promise capital preservation, as well as a truly reliable income stream. What’s better, this ASX ETF is currently yielding about 4%, and could rise even further.

That ASX ETF is the BetaShares Australian High Interest Cash ETF (ASX: AAA).

A safe ASX ETF with a 4% yield?

AAA can promise capital preservation and income stability because it does not actually invest in ASX shares. Instead, it holds investors’ capital in cash deposits in Australian banks. The fund then uses the interest it receives from these investments to pay income distributions to investors.

Historically, cash investments have not delivered nearly the same levels of returns that ASX shares have. However, I think the rather unique situation currently facing investors makes cash appealing right now. Despite the volatility we have seen on the share market over the last few months, the ASX remains fairly close to its record highs.

Dividend yields on the ASX’s most popular shares remain depressed as a result. Popular income stocks like Telstra Group Ltd (ASX: TLS), Commonwealth Bank of Australia (ASX: CBA) and Wesfarmers Ltd (ASX: WES), to illustrate, currently trade on dividend yields well under 4%.

In contrast, this ETF’s last monthly distribution (yes, it pays out monthly) came in at 17.2 cents per unit. Annualised, that would give AAA a distribution yield of 4.12%. The only factor that can really affect this ETF’s yield is interest rates. And with rates rising in May, and possibly again before the end of the year, this looks like a pretty compelling option for anyone investing for income today.

The post A surprising ASX ETF that yields 4% and pays out monthly appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend stocks with 4% yields to buy for a winning income portfolio
• Top 10 ASX shares bought and sold in April

Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL) shares have gone from market darling to market disappointment.

On Monday, the biotech giant’s shares crashed 16% and finished at their lowest level in almost a decade. They are now down 63% from their 52-week high.

That is a stunning fall for a company that was once treated as one of the highest-quality shares on the ASX.

So, should investors finally give up on CSL?

What went wrong?

The latest selloff was driven by another disappointing update from the company.

CSL has downgraded its FY 2026 outlook and now expects revenue of around US$15.2 billion and NPATA of US$3.1 billion, both on a constant currency basis and excluding restructuring costs and impairments.

The downgrade reflects several issues. CSL flagged a US immunoglobulin revenue impact of approximately US$300 million due to the normalisation of channel inventory, a US$200 million impact from albumin in China, and a further US$150 million impact from the Middle East conflict, revised HEMGENIX growth, and competition in iron.

This is not a clean downgrade caused by one temporary factor. It is a reminder that CSL is dealing with several problems at once.

Management has also been blunt about the situation. CSL’s interim CEO, Gordon Naylor, said the company’s growth initiatives are working, but that the financial benefits will take longer than previously expected to materialise. He said:

Our growth initiatives are working, but the financial benefits will take longer than previously anticipated to materialise. As a result, we have now revised down our 2026 financial year guidance.

That is the key issue for investors. CSL is not unfixable, but it is taking longer to repair than the market hoped.

The painful reset

The update also included more bad news on impairments.

CSL paid US$11.7 billion to acquire Vifor Pharma in 2022. Unfortunately, this has so far failed to deliver on expectations and has weighed heavily on shareholder value.

The company revealed that it expects to recognise approximately US$5 billion of additional non-cash, pre-tax impairments across FY 2026 and FY 2027. These relate to CSL Vifor intangible assets, including the product portfolio, as well as under-utilised property, plant and equipment.

The company’s own review points to the need for better execution, a simpler operating model, improved supply chain efficiency, and more disciplined capital allocation. It also notes that historical growth expectations have not been delivered and that some investment case assumptions have not eventuated.

That is a very different story from the CSL of old.

For years, investors were happy to pay a premium valuation for CSL shares because the company delivered predictable growth, strong margins, and world-class execution. That premium has now been destroyed.

Are CSL shares cheap?

CSL shares are now trading on around 12 times estimated FY 2027 earnings. That looks too low for a company with its scale, market positions, and long-term healthcare exposure.

But investors should be careful about expecting the old valuation to return.

CSL may once have justified a valuation above 30 times earnings. After this period of missed expectations, downgrades, impairments, and strategic repair work, that seems unlikely any time soon.

A more realistic outcome could be a rerating toward 18 to 20 times earnings if CSL can return to consistent growth and prove that its transformation program is working.

That would still leave room for upside from current levels. But it would require delivery, not just promises.

Should you give up?

I would not give up on CSL shares completely.

The company still has high-quality assets, strong market positions, and exposure to long-term healthcare demand. Its current valuation also appears to reflect a lot of bad news.

But investors need to reset their expectations. This is no longer the CSL of old. It is a turnaround story inside a high-quality healthcare company.

For patient investors, I think CSL shares are worth holding. But from here, the company needs to earn back trust one result at a time.

The post Down 63%: Should you finally give up on CSL shares? appeared first on The Motley Fool Australia.

More reading

• What are experts saying about these shares hitting 52-week lows 
• 5 things to watch on the ASX 200 on Tuesday
• Why ANZ, CSL, Dateline, and DroneShield shares are sinking today
• Why the ASX 200 is being smashed today
• CSL shares suffer their biggest one-day crash ever! What just went wrong?

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

A new report from VanEck has laid out the case for timely rotation into global small-cap stocks. 

According to VanEck, many industry pundits are forecasting volatility. However, the macroeconomic backdrop and geopolitical uncertainty bode well for a quality rotation with global small companies.

ASX investors may target global small-caps to diversify beyond Australia’s concentrated market of banks and miners.

Simultaneously, Aussie investors can gain exposure to faster-growing sectors like technology, healthcare, and advanced manufacturing. 

Global small-caps can also provide higher long-term growth potential and access to opportunities driven by overseas economies and currencies.

Early stages of a small company quality rotation

According to the report, global small company valuations, relative to large companies, are at a discount. However, being selective in small companies is important.

There are several signs that suggest we could be in the early stages of a small company quality rotation. These include:

• US manufacturing has shifted into expansionary territory with the ISM Index moving above 50, a backdrop that has historically favoured all caps as capex and production pick up, and QSML is well positioned via its tilt toward industrials
• US GDP growth outlook consensus forecast is around 2% for 2026 and 2027, a trajectory that bodes well for smaller companies in the market to harvest higher earnings growth
• Attractive valuations
• Higher-for-longer oil prices and elevated tariffs could lift inflation concerns and growth uncertainty, which could result in investors favouring quality small caps due to their defensive characteristics

Why small caps are starting to outperform

VanEck said markets have experienced significant volatility over the first four months of 2026. 

While early concerns were driven by a weakening US labour market and AI disruption adversely impacting tech software earnings, the dominant narrative became the escalation of the US/Iran conflict. 

This initially led to a broad-based market sell-off, with higher-risk segments such as small companies particularly impacted.

In the immediate aftermath, large-cap and energy stocks outperformed, supported by inflationary expectations and safe-haven demand.

However, as markets began to price in a potential de-escalation amid negotiations and non-negotiations, investor attention started to shift toward more compelling value opportunities.

One area that stood out is quality small-cap stocks. These have started to outperform both their benchmark (MSCI World ex Australia Small Cap Index) and the broad equities (MSCI World ex Australia Index) as investors rotate into segments with stronger fundamentals and attractive valuations.

How to gain exposure to global small caps

For investors looking to expand their portfolio to include global small caps, there are several ASX ETFs to consider.  

Targeting ETFs can help spread the risk that often comes with small-cap investing. 

Some options include: 

• VanEck MSCI International Small Companies Quality ETF (ASX: QSML) – gives investors a diversified portfolio of 150 international developed market small-cap quality growth securities
• Vanguard MSCI International Small Index ETF (ASX: VISM) – provides exposure to small companies listed in major developed countries  

VanEck said the US GDP growth outlook consensus forecast is around 2% for 2026 and 2027, with an AI-driven productivity boost potentially adding another 50 to 100 bps.

This resilient growth trajectory bodes well for smaller companies in the market to harvest higher earnings growth.

Taking history as a guide, we believe this backdrop (potential volatility) bodes well for a quality rotation within the global small companies’ complex.

The post Why investors should be rotating into global small caps: Expert appeared first on The Motley Fool Australia.

More reading

• Why I think Australian growth investors would love this Vanguard ETF
• Vanguard ETF dividends to be paid today
• Why I’d buy and hold NDQ and these ASX ETFs for 10 years

Motley Fool contributor Aaron Bell 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.

Retiring rich is rarely about one lucky investment.

It usually comes from owning high-quality ASX shares for long periods and allowing strong earnings growth to compound over time.

That is why I like ASX growth shares with real competitive advantages. The best ones can keep expanding, reinvesting, and becoming more valuable long after they already look successful.

Two ASX growth shares I think could help investors build serious long-term wealth are named in this article.

Pro Medicus Ltd (ASX: PME)

Pro Medicus has become one of the ASX’s most admired growth shares.

The healthcare technology company provides imaging software used by hospitals and radiology groups. Its Visage platform helps clinicians view, manage, and interpret medical images quickly and efficiently.

What I like about Pro Medicus is that it solves an important problem in a demanding environment.

Medical imaging volumes continue to grow, and healthcare systems need software that can handle large amounts of data without slowing clinicians down. Speed, reliability, and accuracy are important in this market.

That gives Pro Medicus a powerful position.

It has also shown an impressive ability to win large contracts with major healthcare organisations, particularly in the US. These contracts can be long-term in nature and deeply embedded once implemented.

The share price can look expensive. But I think the market is willing to pay up because the business has exceptional margins, a strong balance sheet, and a large global opportunity.

For investors trying to retire richer, I think Pro Medicus is the kind of business that could keep compounding if it continues executing well.

Breville Group Ltd (ASX: BRG)

Breville is a consumer brand rather than a software or healthcare company, but I think it has one of the more attractive long-term expansion opportunities on the ASX.

It has built a strong reputation in premium kitchen appliances, especially coffee machines. That is important because the business is not just selling household products. It is selling better at-home experiences to customers who are willing to pay more for quality.

I think coffee remains the clearest example.

Many consumers have become more selective about the coffee they drink at home. Breville sits in a useful position because it offers products that can appeal to people who want a more premium experience without relying on cafes every day.

The growth runway comes from taking that brand into more markets, launching new products, and deepening its position in categories where design and quality matter.

There are risks. Consumer spending can weaken, tariffs and supply chain costs can affect margins, and premium appliances are not immune to a tougher economy.

But I like that Breville has a global brand-building opportunity. If it keeps proving that it can win beyond Australia, I think the business could be much larger over the next decade.

Foolish takeaway

I think these ASX growth shares could play a major role in building long-term wealth.

Pro Medicus offers exposure to world-class healthcare software, while Breville brings a global premium brand story. 

They will not move smoothly, and valuation still matters. But if these businesses keep growing over the next decade and beyond, I think they could help investors build serious wealth before retirement.

The post Retire rich with these ASX growth shares appeared first on The Motley Fool Australia.

More reading

• Down 50%, these 2 ASX growth shares look too cheap to ignore
• Are these the 3 most undervalued ASX 200 shares right now?
• Down 40% but not out: Is Pro Medicus the buy of the decade right now?
• Why the ASX 200 is being smashed today
• 3 ASX healthcare shares to buy while they’re on sale

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

Building passive income from ASX stocks does not have to mean sticking with the obvious names.

While banks and infrastructure stocks often dominate the dividend conversation, there are other companies that can provide income from very different parts of the economy.

Here are three ASX dividend stocks that could be worth looking at.

Elders Ltd (ASX: ELD)

The first ASX dividend stock to look at is Elders.

It is one of Australia’s leading agribusiness companies. It provides products and services to farmers across areas such as rural supplies, livestock, wool, real estate, and financial services.

This gives the company exposure to the agricultural economy without being tied to just one commodity. Its earnings can still be influenced by seasonal conditions and farmer confidence, but the breadth of the business provides several revenue streams.

This means that its dividends are linked to a business serving an essential industry. As demand for food and agricultural production continues over time, Elders remains positioned in a market with long-term relevance. This is particularly the case following the recent acquisition of Delta Agribusiness for $475 million, which boosts its position in crop protection and animal health.

Jumbo Interactive Ltd (ASX: JIN)

Another ASX dividend stock worth considering is Jumbo Interactive.

It operates digital lottery platforms and provides lottery software services. Its best-known brand is Oz Lotteries, which allows customers to buy lottery tickets online.

The company has a capital-light model, which can support strong cash generation when trading conditions are favourable. It also benefits from the continued shift from physical lottery purchases to digital channels.

Jumbo’s earnings can be influenced by jackpot activity, as larger jackpots tend to drive higher customer engagement. But over the long term, the move toward online lottery participation remains an important growth driver.

With a digital platform, strong margins, and cash-generative operations, Jumbo offers a dividend profile that looks very different from traditional income stocks.

Sonic Healthcare Ltd (ASX: SHL)

A third ASX dividend stock that could help build passive income is Sonic Healthcare.

Sonic is a global pathology and laboratory medicine business. It provides diagnostic testing services across Australia, Europe, and North America.

Healthcare demand tends to be more resilient than many other parts of the economy. People still need medical testing through different economic conditions, which gives Sonic a defensive quality.

The company also has global scale, which helps diversify earnings across markets and healthcare systems.

While pandemic-related testing provided a temporary boost in past years, the underlying business remains supported by ageing populations, chronic disease management, and ongoing demand for diagnostics. This bodes well for its long-term dividend outlook.

The post 3 ASX dividend stocks to help build passive income appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares to buy with 5% to 6% yields
• 2 top ASX dividend stocks on sale, are they buys today?
• Why this ASX dividend share is a retiree’s dream
• What’s making healthcare the worst sector on the ASX 200, down 39% in a year?
• 3 ASX dividend shares to build a 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 Jumbo Interactive. The Motley Fool Australia has recommended Elders, Jumbo Interactive, and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Fortescue Ltd (ASX: FMG) share price has seen lots of volatility in the past several months, as the chart below shows, though it hasn’t moved too much since the start of the year.

But, the ASX mining share has seen a significant rise over the past 12 months, as the chart below also shows.

It’s very difficult to predict what’s going to happen with ASX iron ore shares because of how much they rely on the iron ore price. Both global demand and supply can shift quite significantly, partly because of Chinese demand and because of uncertainty related to supply shifts from Africa and South America.

While I’d love to invest at a Fortescue share price below $15 (seen less than a year ago), I think the company still has multiple positives.

Strong iron ore price

The iron ore price plays a massive role in how much profit Fortescue makes each year, both positively and negatively, due to operating leverage.

When the iron ore price goes up, most of those extra revenue dollars can turn into net profit dollars, aside from paying more to the government. Its production costs don’t typically change much month to month.

The iron ore price was expected to be weaker by now due to concern over the Chinese economy’s demand and increasing iron ore supply from Africa. Despite that, the iron ore price has been resilient amid all of the global economic uncertainty.

According to Trading Economics, at the time of writing, the iron ore price is currently sitting at around US$110 per tonne, which allows it to deliver significant profit generation. The market may be underestimating how much profit the company can make in the foreseeable future.

Copper expansion

I don’t know what the long-term iron ore price is going to be. It could still fall from here.

So, I think it’s a smart idea that the business is looking to build exposure to copper. Only a small part of the company’s underlying value relates to copper at this stage. But, not only is diversification a good idea, but copper also has a pleasing outlook due to electrification, decarbonisation, energy grid expansion, data centre growth and so on.

Fortescue said that copper is a “core pillar” of its “growth and diversification strategy”. It recently completed the acquisition of Alta Copper, securing ownership of its portfolio of exploration assets, including the Canariaco Copper project in Northern Peru.

In the long-term, copper could be a very useful contributor to the overall earnings picture.

Pleasing dividend yield

Fortescue is known for paying large dividends and it could continue providing a solid dividend yield for investors.

According to the projection on Commsec, the business could pay an annual dividend per share of 80 cents in FY27. That translates into a grossed-up dividend yield of 5.4%, including franking credits, at the time of writing. The FY26 grossed-up dividend yield is forecast to be almost 7%, including franking credits.

Combine the passive income with the potential for increasing copper earnings and solid iron ore profits – that’s an appealing mix.

But, there may be many other ASX shares that could be even better buys today.

The post 3 reasons why the Fortescue share price could be a buy appeared first on The Motley Fool Australia.

More reading

• ASX 200 mining shares smash multi-year highs as key commodity prices rise
• The ASX 200 just suffered its biggest fall in 7 weeks. Here’s what’s going on
• Buy, hold, sell: Mineral Resources, Fortescue, Champion Iron shares
• Why the ASX 200 is charging higher today
• How I’d aim for a 7% dividend yield in a SMSF

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.

Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) are two of the most closely watched dividend shares on the ASX.

That is not surprising.

Supermarkets are defensive businesses, they generate large amounts of cash, and they sell products that households need in almost every economic environment.

But they are not identical investments. Their growth profiles, margins, valuations, and dividend outlooks can move in different directions.

So, how big could their dividends be in 2027?

Coles dividend forecasts

Coles shares ended Monday at $21.53.

According to CommSec, consensus estimates are for Coles to generate earnings per share of 90 cents in FY26, 96.6 cents in FY27, and $1.12 in FY28.

On the dividend front, analysts are forecasting fully franked dividends per share of 75.5 cents in FY26, 82 cents in FY27, and 95.3 cents in FY28.

Based on Monday’s closing share price, the FY27 forecast dividend of 82 cents per share would represent a forward dividend yield of approximately 3.8%.

That is not the highest yield on the ASX, but I think it looks respectable for a supermarket business with defensive qualities.

What I like about Coles is the simplicity of the story. It is a major grocery retailer with scale, brand recognition, and everyday customer traffic. In tougher economic conditions, households may cut back on discretionary spending, but grocery demand tends to be much more resilient.

The challenge is that supermarket margins can be thin. Wage costs, supply chain costs, competition, and price investment can all affect profitability.

But if Coles can keep improving efficiency, investing in its supply chain, and growing earnings gradually, I think the dividend has a reasonable path higher.

Woolworths dividend forecasts

Woolworths shares closed Monday at $33.50.

According to CommSec, consensus estimates are for Woolworths to generate earnings per share of $1.30 in FY26, $1.48 in FY27, and $1.64 in FY28.

Its dividend is also expected to grow. Consensus estimates point to fully franked dividends per share of 99.5 cents in FY26, $1.13 in FY27, and $1.28 in FY28.

Based on Monday’s closing price, the FY27 forecast dividend of $1.13 per share would represent a forward dividend yield of approximately 3.4%.

That is slightly lower than the forecast yield for Coles, but I do not think income investors should look only at the headline yield.

Woolworths remains a high-quality defensive business with a strong market position. It has a large supermarket network, a significant customer base, and a digital and loyalty ecosystem that can help deepen customer relationships over time.

The business has faced its share of challenges, including pressure on margins, competition, and cost inflation. But I think its scale and brand strength remain valuable advantages.

If earnings recover as expected, the dividend could continue moving higher into FY28.

Which dividend looks better?

From a pure forecast yield perspective, Coles looks slightly ahead for FY27.

At current prices, Coles’ forecast FY27 dividend yield is around 3.8%, compared with approximately 3.4% for Woolworths.

But I would not make the decision on that difference alone.

Both companies operate in defensive industries, both are expected to grow dividends over the next few years, and both could appeal to investors looking for steady income rather than high-risk yield.

The more important question is which business can deliver better earnings growth, protect margins, and manage cost pressures over time.

Foolish takeaway

Consensus estimates imply forecast FY27 dividend yields of about 3.8% for Coles and 3.4% for Woolworths.

Those yields may not be spectacular, but I think both shares can still have a place in an income-focused portfolio.

For investors who value defensive earnings, familiar brands, and the potential for rising dividends, Coles and Woolworths remain two ASX dividend shares worth watching closely.

The post How big will the Coles and Woolworths dividends be in 2027? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: ANZ, Eagers, and Woolworths shares
• 3 ASX retail shares exposed to a drop in consumer spending
• Money to invest? I’d follow Warren Buffett to get rich
• How to build a $1,000 a month passive income from the ASX
• 5 ASX 200 shares downgraded by experts this week

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

The RBA has already hiked the cash rate three times in 2026, pushing it to 4.35% in its latest move.

With the RBA back in hiking mode, the financial services sector should stand to benefit.

However, not all banks are created equal.

For investors, this raises an obvious question: which ASX banks are best positioned to profit?

Judo Capital Holdings Limited (ASX: JDO): The Standout Beneficiary

Judo is uniquely positioned to thrive in an interest-heavy environment.  

Unlike the mortgage-heavy big four banks, Judo lends almost exclusively to SMEs on floating-rate terms, meaning its income rises almost immediately after an RBA hike.

The latest numbers show this.

In Q3 FY26, Judo’s net interest margin improved to approximately 3.15%, up from 3.03% in the first half, while most Australian banks saw their margins shrink due to fierce competition.

To back this up, analysts are very optimistic about Judo’s outlook across any ASX bank stock, with an average target price of $2.25.

Bendigo & Adelaide Bank Ltd (ASX: BEN): Quietly Gaining Ground

Bendigo Bank is the regional bank that rarely gets attention, but it has been delivering.

In Q3 FY26, net interest income grew 4.1% year on year, operating profit before credit charges surged 10.9%, and net interest margin rose 6 basis points to 1.98%.

With a pledge to keep expenses no higher than inflation throughout the cycle, meaning real-term costs may reduce in the current environment, Bendigo is well positioned to deliver on margin expansion.

Westpac Banking Corporation (ASX: WBC): Scale With Some Strings Attached

As one of Australia’s major banks, Westpac benefits from rising rates through improved spreads between deposit costs and lending rates, as deposit pricing typically adjusts more slowly than lending rates.

In H1 FY26, statutory net profit grew 3% to $3.4 billion, driven by balance sheet growth and stronger Treasury performance.

Importantly, total lending and deposits growth were both up 7% YoY, meaning Westpac has an even larger lending base which may benefit from higher interest rates.

To note, however, with 69% of its loan book in residential mortgages, Westpac’s earnings are heavily dependent on Australian property prices remaining stable.

The Foolish Takeaway

In the current environment, Judo Capital offers the most direct exposure to rising rates, with a fast-growing SME loan book that is expected to generate higher levels of revenue.

All three stocks, however, can be expected to deliver higher net interest income in the short-term.

The post Which Australian banks will benefit the most from rising interest rates? appeared first on The Motley Fool Australia.

More reading

• Why the ASX 200 is being smashed today
• If I invest $8,000 in Westpac shares, how much passive income will I receive in 2027?
• Here’s what Westpac says the RBA will do with interest rates next
• ASX share volatility is rising, are you making this mistake?
• Why Macquarie, QBE, Tabcorp, and Westpac shares are dropping today

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

The ASX has been strong in some areas, but plenty of quality shares are still well below their former highs.

That is where I think investors can find opportunities.

I am looking for a business with a strong market position, a long runway, and a share price that already reflects plenty of disappointment.

One ASX share that fits that description for me is WiseTech Global Ltd (ASX: WTC).

A business built for complexity

WiseTech is one of those companies that can look complicated from the outside.

It does not sell a product most consumers see. It does not have stores on high streets. It does not make headlines in the way banks, miners, or retailers often do.

But behind the scenes, WiseTech plays an important role in global trade.

Its software helps logistics companies manage freight, customs, compliance, warehousing, transport, and cross-border operations. These are areas where mistakes can be costly and delays can frustrate customers.

That is why I think this is such an interesting market.

The world still needs goods to move across borders. Businesses still need supply chains to function. Freight forwarders and logistics operators still need systems that can help them manage more moving parts, more regulation, and more customer expectations.

WiseTech is trying to be one of the key software platforms behind that activity.

Why the sell-off has my attention

WiseTech shares have fallen a long way from their highs. They are down 56% over the past 12 months.

Some of that reflects broader pressure on ASX technology shares. Some reflects company-specific concerns. Investors have had plenty to think about, including valuation, acquisition strategy, leadership questions, and the potential impact of artificial intelligence on software businesses.

I do not think those issues should be brushed aside.

But I also think the share price fall has changed the opportunity.

When a quality growth stock is priced for perfection, investors have little room for disappointment. When the same stock is priced with more scepticism built in, the risk-reward can become more appealing.

That is where I think WiseTech now sits.

It still has a strong position in a large global market. It still serves customers with complex operational needs. And it still has the chance to keep increasing its relevance across global logistics over time.

The long-term prize

What interests me most about WiseTech is the size of the opportunity ahead.

Logistics is not a small niche. It is a huge global industry that still has plenty of room for better software, automation, and data-driven decision-making.

If WiseTech can continue expanding what CargoWise does for customers, it may be able to capture more value from existing clients and win more business across the industry.

That could happen through new modules, deeper product adoption, better workflow automation, and more sophisticated tools for managing global trade.

This is where I think AI could become useful. Rather than thinking about AI only as a threat, I think it is worth asking how it could improve logistics software. Smarter systems may help users handle exceptions, process documents, identify compliance issues, manage workflows, and make faster decisions.

WiseTech already has deep knowledge of the industry it serves. If it can embed AI in ways that make the platform more useful, I think that could support the long-term investment case.

Foolish takeaway

WiseTech shares may remain volatile in the short term, especially while investors are still debating technology valuations and AI disruption.

But I think the bigger story remains attractive. This is a global ASX software business operating in an industry that needs better systems, more automation, and stronger execution tools.

The share price has already absorbed a lot of disappointment. If confidence in the business starts to rebuild, I think WiseTech could be one of the ASX growth shares to recover strongly.

The post 1 smashed-up ASX share I’d buy before it rebounds appeared first on The Motley Fool Australia.

More reading

• Are these the 3 most undervalued ASX 200 shares right now?
• Where to invest $20,000 in ASX 200 shares this week
• Is this the best ASX 200 stock to buy in May?
• Money to invest? I’d follow Warren Buffett to get rich
• Down 55%, why WiseTech shares could be a bargain hiding in plain sight

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 positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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) dividend share space looks very attractive for passive income, in my view.

I like to focus on businesses which I believe can consistently raise their payouts over the long-term due to underlying earnings growth. Rising profit can also justify a higher share price, so I view that as an essential factor to consider.

Normally, I write about Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) when it comes to excellent ASX 200 dividend share ideas, but there are other names I want to highlight in this article. If I were to invest $10,000 for a combination of stability and yield, the two below would be top picks for me.

Telstra Group Ltd (ASX: TLS)

Telstra is Australia’s leading telecommunications business, with the largest network coverage, the most subscribers, the most valuable spectrum assets and a reputation for reliability.

The company has hiked its annual payout each year for the last few years and the FY26 half-year result saw Telstra increase its interim dividend payment by 10.5% to 10.5 cents per share. I expect it will deliver another 10.5 cents per share dividend with the FY26 result, leading to a grossed-up dividend yield of approximately 5.6%, including franking credits, at the time of writing.

I expect it can grow earnings in the coming years due to Australia’s rising population and growing demand for an internet connection from various devices, vehicles and other electronics.

Telstra’s market position gives it the confidence to regularly increase prices, which is a great tailwind for revenue and profit. It’s one of the few major ASX 200 dividend shares I’m confident will generate materially stronger profit in FY30 compared to FY26.

Centuria Industrial REIT (ASX: CIP)

This is Australia’s largest pure play industrial property real estate investment trust (REIT).

The subsector of the REIT world is very appealing because of the strong demand for industrial space. Some of the demand growth is coming from e-commerce adoption, some of it is data centres, refrigerated facilities is another element of demand (due to food and medicine requirements) and so on.

When you put all of that together, it has led to a very low vacancy rate in Australia’s cities and this is leading to excellent rental growth (with strong re-leasing spreads).

The business reported like-for-like net operating income (NOI) growth of 5.1% in the FY26 first-half period. That’s one of the strongest rental growth rates in the REIT sector currently, which is a key reason why I think it’s a top ASX 200 share to buy today, particularly as it’s trading at a large discount to the net tangible assets (NTA) of $3.95 as of December 2025.

It expects to pay a distribution yield of 5.6%.

The post Where I’d invest $10,000 into ASX 200 dividend shares right now appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Should you buy Telstra shares amid the $1.25 billion share buyback?
• Why the ASX 200 is being smashed today
• Here’s the dividend forecast out to 2028 for Telstra shares

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Telstra Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.