Author: openjargon

The Fortescue Ltd (ASX: FMG) share price has been having a tough year.

The iron ore giant’s shares hit a new 52-week low this week following the release of a disappointing quarterly performance update.

So, with the company’s shares down almost 30% since the start of the year, are they not a bargain buy?

Is the Fortescue share price a bargain buy?

Unfortunately, a couple of Australia’s leading brokers don’t believe that now is the time to buy shares.

For example, a note out of Morgans reveals that its analysts have downgraded the miner’s shares to a trim rating with a reduced price target of $15.40 (from $18.70).

Based on the current Fortescue share price of $15.79, this implies potential downside of 2.5% for investors. 

Commenting on the quarterly update and downgrade, Morgans said:

We have long argued that investing material capital in near-term loss-making projects (magnetite and new energy) has not diversified Fortescue, and has instead left group earnings more exposed to the iron ore price. Magnetite adds more iron ore exposure but at a higher cost, while new energy investment, and US$0.9-1.3bn of FY27 decarbonisation spend, are funded from hematite cash flow. This dynamic is starting to show in the numbers. 

Fortescue flagged that net debt rose US$1.9bn in 1Q27, equal to the final dividend (US$1.0bn) plus quarterly capex (US$0.9bn), implying negative FCF for the quarter. We attribute this mainly to weaker hematite cash flow after the central buying group China Mineral Resources Group (CMRG) reportedly halted purchases of two of Fortescue’s products during the quarter, leaving shipments 6% and actual sales 14% below Visible Alpha (VA) consensus in 1Q27. On updated estimates we lower our rating to TRIM (from HOLD) with an A$15.40 target price (was A$18.70).

Bell Potter says hold

A note out of Bell Potter reveals that its analysts are a little more positive.

According to the note, the broker has responded to the update by retaining its hold rating with a reduced price target of $15.80 (from $17.10). This is broadly in line with the current Fortescue share price.

Speaking about the update, Bell Potter said:

FMG has reported a suite of negative metrics in an out-of-cycle preliminary report updating performance for the September 2026 quarter. Total shipments were down 6% YoY to 46.8Mt (incl. 2.5Mt from Iron Bridge), with a scheduled port shutdown impacting volumes. Sales of 42.9Mt were 8% below shipments of 46.8Mt, with the 3.9Mt gap attributed to ongoing negotiations with China Mineral Resource Group (CMRG), China’s centralised ore buying agency. This is the first time FMG has disclosed a material discrepancy between shipments and sales. Price realisations also weakened to 82% (vs benchmark Platts 61%: US$80/dmt).

We had previously flagged risks to price realisations and we now make a greater allowance and for longer through our forecast period. EPS changes in this report are: FY27 -6%, FY28 -6% and FY29 -7%. We lower our NPV-based target price by 8%, to $15.80/sh and retain our Hold recommendation.

The post Is the Fortescue share price a bargain buy? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Rural Funds Group, Imdex, Fortescue shares
• 5 things to watch on the ASX 200 on Friday
• Fortescue posts September 2026 quarterly earnings update
• NextDC, Generation Development, Fortescue shares hit 52-week low. Can they rebound?
• Fortescue vs PLS Group: Which ASX mining share is the better buy?

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.

S&P/ASX 300 Index (ASX: XKO) shares are down 3.6% over 12 months.

Here, three experts give us their views on three ASX 300 shares.

Rural Funds Group Ltd (ASX: RFF)

The Rural Funds share price is down 0.3% over 12 months.

Bell Potter reiterated its buy rating on this ASX 300 agricultural real estate investment trust (REIT) on Wednesday.

The broker has a 12-month price target of $2.55.

This implies potential capital gains of more than 120% ahead.

The broker commented:

Since providing disappointing FY27e AFFO guidance the share price of RFF has been under pressure, this is despite the favourable backdrop in agricultural land valuations and RFF having executed asset sales to create balance sheet capacity, with further sales planned.

During FY26 RFF contracted to dispose of $315m in assets at an 18% premium to BV. While this is a positive, there remains $356m worth
of assets under development or operated, where there is limited income being generated.

Execution of further asset sales, including mature and operated macadamia orchards and leasing of properties undergoing productivity enhancements would likely be catalysts for improved AFFO and the share price.

The 41% discount to Market-NAV and 34% discount to NAV are both all-time highs and material deviations from historical averages.

Imdex Ltd (ASX: IMD)

The Imdex share price is down 4.3% over 12 months.

Imdex provides cloud-connected devices and solutions that help mining companies uncover, define, and mine ore bodies.

Bell Potter has a hold rating and a $3.80 price target on this ASX 300 materials share. 

This implies a potential 13% upside ahead.

The broker said: 

We are becoming increasingly cautious of a deceleration in exploration activity growth from FY28, compounded by weakening Junior equity raisings, a resurgence of cost input inflation observed across the global mining industry, rising bond yields and a weakening gold price environment.

However, exploration activity appears supported in FY27 by a favourable trailing Junior equity raising trend and elevated CY26 budgeted spend by Majors and Intermediates.

Fortescue Ltd (ASX: FMG)

The Fortescue share price is down 18% over 12 months. 

Morgans put a trim rating and a $15.40 price target on Fortescue after its 1Q FY27 update yesterday.

This suggests a potential 2.5% downside ahead for the ASX 300 mining giant.

The broker said:

We have long argued that investing material capital in near-term loss-making projects (magnetite and new energy) has not diversified Fortescue, and has instead left group earnings more exposed to the iron ore price.

Magnetite adds more iron ore exposure but at a higher cost, while new energy investment, and US$0.9-1.3bn of FY27 decarbonisation spend, are funded from hematite cash flow. This dynamic is starting to show in the numbers.

Fortescue flagged that net debt rose US$1.9bn in 1Q27, equal to the final dividend (US$1.0bn) plus quarterly capex (US$0.9bn), implying negative FCF for the quarter.

We attribute this mainly to weaker hematite cash flow after the central buying group China Mineral Resources Group (CMRG) reportedly halted purchases of two of Fortescue’s products during the quarter, leaving shipments 6% and actual sales 14% below Visible Alpha (VA) consensus in 1Q27.

The post Buy, hold, sell: Rural Funds Group, Imdex, Fortescue shares appeared first on The Motley Fool Australia.

More reading

• Is the Fortescue share price a bargain buy?
• 5 things to watch on the ASX 200 on Friday
• Fortescue posts September 2026 quarterly earnings update
• NextDC, Generation Development, Fortescue shares hit 52-week low. Can they rebound?
• Is this cheap ASX dividend share one of the best income buys?

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Wesfarmers vs Coles Group shares: Which ASX dividend stock is better for retirees?

Everyday investors looking for reliable, fully franked dividends often land on two household names: Wesfarmers Ltd (ASX: WES) and Coles Group Ltd (ASX: COL) Both are ASX giants with strong brands, defensive business models and long histories of shareholder payouts. But for retirees focused on dependable income and capital stability, which one comes out on top? Here’s my break down of Wesfarmers vs Coles Group shares.

The case for Wesfarmers

Wesfarmers is a true blue-chip conglomerate, operating across retail, hardware, office supplies, health and chemicals. With famous brands like Bunnings, Kmart, Officeworks and Priceline under its belt, plus a chemicals and fertilisers division, its earnings are spread across sectors that tend to do well in most economic environments.

Personally, I like Wesfarmers for its size, diversity and strategic flexibility. Its $86.08 billion market cap makes it one of Australia’s largest listed companies, which can help cushion the business during downturns.

Key fundamentals for Wesfarmers:

• Market cap: $86.08 billion
• Dividend yield: 2.94% (fully franked)
• P/E ratio: 29.78
• Recent dividend per share: $2.22, with a strong history of fully franked payments
• Year-to-date return: -4.2%

Wesfarmers has a solid record of paying dividends. It has delivered decades of fully franked payouts, often topping them up with occasional specials. For retirees, that 100% franking can make a big difference come tax time.

The case for Coles

Coles is one of Australia’s top supermarket and liquor retailers, with Coles Supermarkets and its bottle shop chains a staple in almost every suburb. While it used to be part of Wesfarmers, Coles was spun out in 2018 and is now very much its own beast.

For conservative, income-focused investors—particularly retirees—Coles’ appeal is simple: Food retailing is a defensive sector, and people have to eat whatever the economy is doing.

Notable fundamentals for Coles Group:

• Market cap: $30.75 billion
• Dividend yield: 3.39% (fully franked)
• P/E ratio: 28.33
• Recent dividend per share: $0.74, also fully franked with a stable payout pattern
• Year-to-date return: 10.9%

Coles has consistently paid out fully franked dividends since relisting, and the current yield is a touch higher than Wesfarmers. This direct income edge may appeal to retirees wanting to maximise after-tax income.

Valuation comparison

With both companies in the ASX’s top ranks and fully franked dividends on offer, it’s worth drilling into their key valuation measures to spot the differences most relevant to retirees:

	Wesfarmers	Coles
Market cap	$86.08bn	$30.75bn
P/E ratio	29.78	28.33
Dividend yield	2.94%	3.39%
Dividend per share	$2.22	$0.74
Franking	100%	100%

Wesfarmers trades at a slightly higher P/E than Coles, but both are in the same ballpark. The standout difference for retirees is Coles’ higher yield—3.39% versus Wesfarmers’ 2.94%—on current prices.

Recent share price momentum

Comparing recent share price momentum up to 6 October:

• As of 6 October 2026, Wesfarmers closed at $75.86, up 0.52% on the day, but its year-to-date return sits at -4.2%.
• As of the same date, Coles closed at $22.88, down 0.52% on the day, but boasts a year-to-date return of +10.9%.

That’s a steady outperformance from Coles in 2026 so far, while Wesfarmers has dropped back a touch.

Which is the better buy?

Weighing up Wesfarmers vs Coles, if I were a retiree focused on maximising regular, tax-effective income, I’d lean toward Coles right now. The dividend yield is modestly higher (3.39% vs 2.94%), both are fully franked, and Coles’ supermarket focus means cashflows tend to be steady and recession-resistant. Add to that its positive year-to-date share price momentum (despite a few wobbles in the broader market), and Coles looks to be delivering both income and capital stability.

Wesfarmers is more diversified—and in the long run, that can mean more growth potential—but for a retiree’s portfolio, I think the steadiness, relative simplicity, and strong current yield of Coles get it over the line for me today.

The post Wesfarmers vs Coles: Which dividend share is better for retirees? appeared first on The Motley Fool Australia.

More reading

• Why this top broker is buying Charter Hall, Soul Patts, and Wesfarmers shares
• My favourite ASX passive income shares for retirees
• Down 20%: Is the Wesfarmers share price a top buy?
• How much passive income can I earn from a $950,000 superannuation balance?
• How much passive income can I make from a $100,000 ASX share portfolio?

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

Not all companies are created equal. Some businesses consistently earn high returns, carry manageable debt, and produce dependable profits. 

Others can look attractive when conditions are favourable but struggle when the cycle turns.

For investors who want to focus their portfolio on stronger businesses, these three ASX exchange traded funds (ETFs) could be worth considering.

VanEck MSCI International Quality ETF (ASX: QUAL)

The VanEck MSCI International Quality ETF provides investors with a simple way to own a portfolio of high-quality stocks from developed markets around the world.

Rather than buying stocks simply because they are large, the fund looks for businesses with characteristics such as high returns on equity, relatively low financial leverage, and stable earnings growth.

I like that approach because it puts the emphasis on the financial strength of the business rather than short-term market popularity.

That can lead to exposure to established global stocks that have already demonstrated an ability to generate attractive returns through different market conditions.

For investors looking for a long-term international holding with a clear quality bias, this ETF could be well worth considering.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Another similar option is the Betashares Global Quality Leaders ETF.

This fund also focuses on financially strong businesses, but it takes a more concentrated approach. It currently holds around 150 stocks, compared with roughly 300 for the VanEck MSCI International Quality ETF.

Its portfolio is built around companies with high profitability, healthy balance sheets, and stable earnings, resulting in a more selective portfolio of quality businesses.

Of course, even excellent companies can become expensive, so valuation still deserves attention.

But for investors who want their international exposure tilted towards a smaller group of high-quality businesses, the Betashares Global Quality Leaders ETF could be an attractive option.

Betashares Australian Quality ETF (ASX: AQLT)

A final ASX ETF to consider is the Betashares Australian Quality ETF.

This one applies a similar philosophy closer to home. Instead of simply following the largest stocks on the ASX, the fund screens for Australian businesses with strong profitability, healthier balance sheets, and more reliable earnings.

That can result in a portfolio that looks quite different from a traditional Australian index fund, where banks and mining companies can have a very large influence.

I think that makes the Betashares Australian Quality ETF an interesting option for investors who want local exposure but would prefer to place greater emphasis on company fundamentals.

It won’t avoid every weak period, but over the long run, owning businesses with stronger financial characteristics could prove to be a sensible way to approach the Australian share market.

The post 3 strong ASX ETFs for investors who want quality appeared first on The Motley Fool Australia.

More reading

• 5 excellent ASX ETFs to buy in October
• 10 top ASX ETFs to watch in 2027
• Here are the most popular ASX share superannuation investments in SMSFs
• 3 top Betashares ETFs for beginners to buy
• Where to invest $20,000 in ASX ETFs today

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.

On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a disappointing session and dropped into the red. The benchmark index fell 0.75% to 8,660.9 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set for a better session on Friday despite a mixed night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 19 points or 0.2% higher this morning. On Wall Street, the Dow Jones was up 0.1%, but the S&P 500 fell 0.45% and the Nasdaq dropped 1.25%.

Oil prices charge higher

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS)could have a good finish to the week after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2.75% to US$90.71 a barrel and the Brent crude oil price is up 3.15% to US$103.36 a barrel. This follows reports that Iran is stepping up attacks on tankers.

Fortescue shares downgraded

The Fortescue Ltd (ASX: FMG) share price could be heading lower even after hitting a new 52-week low on Thursday. This morning, Morgans has downgraded the iron ore giant’s shares to a trim rating with a new price target of $15.40. It said: “We have long argued that investing material capital in near-term loss-making projects (magnetite and new energy) has not diversified Fortescue, and has instead left group earnings more exposed to the iron ore price. Magnetite adds more iron ore exposure but at a higher cost, while new energy investment, and US$0.9-1.3bn of FY27 decarbonisation spend, are funded from hematite cash flow. This dynamic is starting to show in the numbers. Fortescue flagged that net debt rose US$1.9bn in 1Q27, equal to the final dividend (US$1.0bn) plus quarterly capex (US$0.9bn), implying negative FCF for the quarter.”

Gold price rises

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a decent finish to the week after the gold price rose overnight. According to CNBC, the gold futures price is up 0.45% to US$4,159.6 an ounce. The gold price rebounded from a two-month low as investors weighed the Federal Reserve’s uncertain interest rate path.

Buy Mesoblast shares

Bell Potter thinks Mesoblast Ltd (ASX: MSB) shares are undervalued at current levels. This morning, the broker has retained its buy rating and $4.45 price target on the biotech company’s shares. It said: “MSB remains an enigma for most Australian long only institutions, despite having achieved multiple clinical trial successes, product approvals and revenues likely to exceed US$200m in FY27. We expect this information gap will close over the coming year as the company delivers on additional wins in the clinic.”

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

More reading

• Here are the top 10 ASX 200 shares today
• Fortescue posts September 2026 quarterly earnings update
• NextDC, Generation Development, Fortescue shares hit 52-week low. Can they rebound?
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. 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.

Real estate investment trusts can be a good investment if you’re looking for stability and predictable income streams, but that’s not to say they’re without risk.

Two of the trusts I’m looking at today suffered major shocks over the past year, but they’ve had some good news over the past week, which has shored up investor confidence.

Let’s look at how they’re expected to perform on the dividend front going forward.

HealthCo Healthcare and Wellness REIT (ASX: HCW)

This real estate trust was caught up in the failure of private hospital operator Healthscope, which went into receivership in May, casting doubts over the income streams from hospitals owned by the trust.

The good news is that the Healthscope hospitals were able to continue operating, albeit split up among several new owners.

Healthco announced just this week that binding agreements had been finalised for the 10 final Healthscope hospitals owned by itself and the associated Unlisted Healthcare Fund, which led the company to reinstate its dividend payments.

Healthco is aiming to pay 6 cents per share in dividends over the full year, which equates to an 8% dividend yield at the share price of 74.75 cents at the time of writing.

Macquarie predicts this strong dividend stream will continue through FY29, when it will be 8.7%, and the broker also has a price target of $1.10 on Healthco shares, up from 88 cents as a result of the Healthscope resolution.

The broker said the company is trading at a steep discount to its $1.35 net tangible asset backing.

Arena REIT (ASX: ARF)

Arena also had some hiccups over the past year, with childcare operator Edge Early Learning Centre placed in administration, casting doubt on lease payments from that portfolio.

Arena said this week that the administrator of Edge had entered into an agreement with Goodstart Early Learning for the acquisition of 31 early learning centre businesses operated by Edge.

The proposed transaction includes services at 20 of the 27 centres owned by Arena and occupied by Edge, and Arena said it was still being paid rent for all 27 centres.

Arena shares have added almost 25% over the week to be changing hands for $2.48 at the time of writing.

Arena has previously guided to dividends per share of not less than 18 cents for FY27, which would constitute a dividend yield of 7.3%.

Centuria Office REIT (ASX: COF)

Centuria is forecasting dividends of 9 cents per share in FY27, which, at the time of writing, equates to a dividend yield of 10.8%.

The company’s portfolio includes 18 assets worth $1.8 billion, which had 91% occupancy last year.

COF Fund Manager Belinda Cheung said recently the focus for the current year would be on “maintaining high portfolio occupancy, improving portfolio weighted average lease expiry by addressing near-to medium-term expiries while curating a quality portfolio of modern, sustainable office assets”.  

The post 3 ASX real estate investment trusts paying a dividend yield of more than 7% appeared first on The Motley Fool Australia.

More reading

• Macquarie tips an 8% dividend yield and 46% share price gain for this stock
• Here are the top 10 ASX 200 shares today
• Arena REIT shares in focus as Edge Early Learning lease update issued
• Here are the top 10 ASX 200 shares today
• 6 ASX REITs just hit 52-week lows. Do any brokers say buy?

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

The ASX dividend stock Future Generation Australia Ltd (ASX: FGX) is one of my favourite ideas as a high-yield passive income option. On top of that, it’s providing growing dividend payments too. I think it’s a true dividend winner.

Future Generation Australia is a listed investment company (LIC) that invests quite differently from many other LICs.

A typical LIC will usually invest in a portfolio of ASX shares or international shares. This ASX dividend stock operates in a way that adds significant diversification and lower volatility.

Significant diversification

Future Generation Australia invests with a fund-of-funds strategy. It’s invested in the funds of 16 different fund managers, including L1 Group Ltd (ASX: L1G), Vinva, Firetrail, Smallco, Eley Griffiths, and TenCap.

By investing in these funds, the ASX dividend stock’s portfolio is less concentrated on the largest businesses on the ASX than the weightings of the S&P/ASX 300 Index (ASX: XKO).

In other words, Future Generation Australia is much more focused on smaller, faster-growing businesses that could help provide better returns over time.

Additionally, these fund managers don’t charge any management fees to Future Generation Australia for a special reason.

Philanthropic nature

All of the fund managers involved work on a pro bono basis so that the ASX dividend stock can donate 1% of its net assets to charities focused on young Australians.

Some of the current recipients of donations include Australian Children’s Music Foundation, Lighthouse, Mirabel Foundation, Giant Steps, and Raise.

Since inception, Future Generation Australia has donated $54.9 million and each year that figure becomes larger. The LIC is making an important contribution to Australia’s next generation, and I’m glad I’m a shareholder.

Great dividends

There are two reasons why I think this LIC is so appealing for dividends.

First, it offers a very compelling dividend yield. It has provided guidance that it will pay an annual dividend per share of 7.6 cents in FY26.

At the time of writing, that translates into a grossed-up dividend yield of 8.3%, including franking credits.

The second reason to really like the business is that its dividend is consistently growing. It has grown every year since 2015, providing more than a decade of consistent payout increases.

It expects to hike its annual dividend by 5.6% for FY26, which would mean the dividend will have grown by 90% since 2015.

$4,000 investment in the ASX dividend stock

I think now is a good time to invest with the FY26 half-year dividend to go ex-dividend (and be paid) in November.

At the time of writing, an investor can buy 3,065 Future Generation Australia shares with a $4,000 investment, which I think is a solid investment choice.

But it’s not the only ASX share I’d buy for returns right now.

The post $4,000 buys 3,065 shares in an impressively reliable ASX dividend stock appeared first on The Motley Fool Australia.

More reading

• How much do I need to retire on $85,000 a year at 50?
• 2 ASX shares with dividend yields above 8%
• How much do I need to retire on $75,000 a year at 45?
• $3,000 buys 2,325 shares in an impressively reliable ASX dividend stock
• 2 ASX passive income share ideas I’d use to generate $200 a month in 2027

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia and L1 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.

Zip vs Block shares: Which payments stock stacks up best?

When it comes to payments stocks on the ASX, Zip Co Ltd (ASX: ZIP) and Block Inc (ASX: XYZ) catch the eye for anyone watching the fast-moving world of digital money and buy-now, pay-later (BNPL) services. With both companies offering innovative ways for consumers and businesses to handle payments, everyday investors might be weighing Zip and Block against each other for their next portfolio move. Here’s how they compare on the fundamentals, value, and recent share price action.

The case for Zip

Zip is an Australian financial technology business focused on disrupting the traditional credit card and payments market. Zip operates in Australia, New Zealand, the United States, and 12 countries altogether, offering point-of-sale credit and BNPL services through products like Zip Money and Zip Pay. Founded in 2013, the company’s core pitch is to give shoppers more flexibility and an alternative to old-school credit cards.

Looking at the fundamentals:

• Market cap stands at $2.58 billion, so it’s a mid-cap ASX player with solid reach.
• Zip’s P/E ratio is 22.63, which is at the lower end for a payments or fintech stock, potentially signalling more attractive value compared to fast-growth peers.
• Earnings per share come in at $0.091, supporting its move toward profitability.

Dividend hunters won’t find much here, though — Zip currently pays no dividend.

The case for Block

Block formerly known as Square, was originally a US payments upstart. Now, it’s a global force in payments tech, offering everything from merchant point-of-sale solutions to Cash App for peer-to-peer payments, as well as hosting platforms like Weebly. In 2022, Block snapped up Aussie juggernaut Afterpay in a headline-making deal, adding serious BNPL firepower to its roster. The business is dual-listed in the US and Australia, catering to a broad investor base.

Key stats for Block Inc:

• Its market cap is a substantial $4.21 billion, making it notably bigger than Zip on the ASX stage.
• The P/E ratio is 132.23, vastly higher than Zip’s, which indicates investors are pricing in a lot of future growth or that current profits are relatively slim compared to the company’s valuation.
• Earnings per share are showing at $0.560.

Block also offers no dividend at this time.

Valuation comparison

With three key valuation metrics available for both, here’s how Zip and Block stack up:

Metric	Zip	Block
Market Cap	$2.58 billion	$4.21 billion
P/E Ratio	22.63	132.23
Earnings per Share	$0.091	$0.560
Dividend Yield	0.00%	0.00%
Year To Date Return	-37.7%	9.0%

Note: Block Inc’s reported P/E appears very high compared to its EPS, suggesting investors are paying a heavy premium for expected growth and the Afterpay component. Both companies are not offering dividends right now.

Recent share price momentum

To line things up evenly, let’s use 2 October 2026 as the most recent shared date both companies have closing prices for. Here’s what the short-term momentum looks like as of that date:

• Zip: Closed at $2.07 on 2 Oct 2026, up 3.5% from the previous close. Despite the daily bounce, its year-to-date return sits deeply in the red at -37.7% — meaning Zip shares have struggled significantly so far this year.
• Block: Closed at $106.62 on 2 Oct 2026, up 0.7% on the day. Block, on the other hand, has delivered a positive year-to-date return of 9.0%, showing stronger recent momentum versus Zip.

Which is the better buy?

Looking at the numbers, I’d lean toward Block as the pick of these two payments stocks right now. The decisive factor for me is the year-to-date performance: Block shares have pushed ahead nearly 9%, while Zip is down a hefty 37.7%. That sort of divergence tells me Block is winning investor confidence and, crucially, executing better in this tough market for fintechs.

Yes, Block’s P/E ratio is sky-high at 132, and that does make me pause — but with its diversified business, global scale, and the Afterpay acquisition now bedded down, I can see why the market is backing Block for future earnings growth. Zip is fighting hard and has managed to move towards profitability, but its steep price decline and smaller scale leave me with less confidence, at least based on the data I have in front of me.

Of course, neither company is paying shareholders a dividend, so it’s really about capital growth potential. On current fundamentals and recent momentum, Block gets my vote as the more compelling buy.

The post Zip vs Block: Which ASX payments share is better? appeared first on The Motley Fool Australia.

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

Your superannuation isn’t just a savings pot for retirement; it can also generate a regular passive income to live off when you decide to quit work.

A $100,000 annual passive income generated completely from your superannuation balance is entirely possible.

This type of money sits well above the estimated cost for a comfortable retirement lifestyle. And it means your passive income will cover most of your expenses without needing to draw down aggressively on the rest of your balance. 

In retirement, you can move your superannuation from an accumulation phase to a retirement phase. This is where you can convert your savings into a regular income stream or withdraw lump sums. 

At this point, you can set up your superannuation to provide a regular income from your investment income, leaving the rest largely untouched, or you can withdraw dividend income in lump sums.

But the question is, how much do you need in your super to be able to earn this level of passive income when you transition to your pension phase?

Let’s take a look.

How much do I need in my superannuation to earn an annual passive income of $100,000?

To calculate the amount of superannuation you need, you’ll need to divide your annual passive income by the dividend yield of your portfolio.

The catch is that the answer changes depending on what that yield is.

Generally, as your yield goes up, the passive income you can earn off the same balance also increases.

This means that a portfolio with a dividend yield of say, 3%, generally needs to be double the size of one with a 6% dividend yield in order to earn the same passive income. 

Ok, what if my portfolio yields somewhere between 3% to 6%? How much do I need?

Say your overall portfolio has a dividend yield of around 3%, you’ll need a balance of around $3.3 million to earn $100,000 per year in passive income. That’s because $100,000 ÷ 3% = $3,333,333.

Of course, $3.3 million is a huge balance, and out of reach for most Australians.

But remember, as your yield increases, the required balance goes down. 

For example, if the yield of your portfolio is around 4%, your balance would need to be closer to $2.5 million to earn the same $100,000 annual dividend income.

For a 5% yielding portfolio, you’d need a balance of closer to $2 million.

And then a 6% yielding portfolio could generate $100,000 in passive income from a sound $1.6 million.

Give me some ideas of 4% to 5% yielding ASX shares that I can invest my superannuation in

There are many ASX dividend shares available for superannuation investment, and many of them yield around 4% to 5%.

But here are some of my top picks.

I’d consider defensive shares such as Telstra Group Ltd (ASX: TLS), Transurban Group (ASX: TCL), or Inghams Group Ltd (ASX: ING). 

Otherwise, insurance shares are generally resilient to market volatility. QBE Insurance Group Ltd (ASX: QBE), Medibank Private Ltd (ASX: MPL), and Insurance Australia Group Ltd (ASX: IAG) are all good options in this sector, and they generate a yield of around the 4% to 5% level at the time of writing.

Elsewhere, ASX energy shares are also able to generate reliable dividends for investors. Such as Origin Energy Ltd (ASX: ORG), Contact Energy Ltd (ASX: CEN), or Mercury NZ Ltd (ASX: MCY).

The post How much superannuation do I need to generate $100,000 per year in passive income? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Woolworths Group vs Telstra Group: Which ASX blue chip pays better passive income?
• Buy, hold, sell: IDP Education, Macmahon Holdings, Transurban shares
• 5 things to watch on the ASX 200 on Thursday
• My favourite ASX passive income shares for retirees

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 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) suffered a pullback this Thursday, continuing the sell-off we have seen for much of this week. After spending the entire session in negative territory today, the ASX 200 ended up closing with a 0.77% loss. That leaves the index at 8,660.9 points.

This tough Thursday for ASX investors follows a similarly downbeat morning over on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) was hit hard, dropping 0.66%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was a little tamer, but still fell 0.22%.

But let’s get back to the local markets now and dive a little deeper into what was happening amongst the different ASX sectors this Thursday.

Winners and losers

Despite the broader market’s losses, we still saw a few sectors make hay.

But first, it was mining stocks that were hit the hardest. The S&P/ASX 200 Materials Index (ASX: XMJ) was smashed, tanking 2.03%.

Gold shares found themselves in a similar vein, with the All Ordinaries Gold Index (ASX: XGD) crashing 1.38%.

Financial stocks had a day to forget too. The S&P/ASX 200 Financials Index (ASX: XFJ) sank 0.99% today.

Industrial shares were in the same ballpark, as you can see by the S&P/ASX 200 Industrials Index (ASX: XNJ)’s 0.92% dive.

Tech stocks also found themselves on the nose. The S&P/ASX 200 Information Technology Index (ASX: XIJ) took a 0.77% hit this session.

Healthcare shares were our last losers today, with the S&P/ASX 200 Healthcare Index (ASX: XHJ) dipping 0.12%.

Turning to the winners now, these were spearheaded by consumer staples stocks. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) soared up 1.42% this Thursday.

Energy stocks ran hot too, evident by the S&P/ASX 200 Energy Index (ASX: XEJ)’s 1.36% surge.

Utilities shares were also in demand. The S&P/ASX 200 Utilities Index (ASX: XUJ) added 1.34% to its total today.

Communications stocks didn’t miss out, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) lifting 0.89%.

Nor did consumer discretionary shares. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) advanced 0.31%.

Finally, real estate investment trusts (REITs) got over the line, illustrated by the S&P/ASX 200 A-REIT Index (ASX: XPJ)’s 0.17% jump.

Top 10 ASX 200 shares countdown

Taking out the top index spot this Thursday was the stock market operator itself. ASX Ltd (ASX: ASX) shares had a blowout (relatively speaking) today, rising 3.84% to finish trading at $60.59 each.

There wasn’t any news out today that explains this leap higher, though.

Here’s how the other top stocks tied up at the dock:

ASX-listed company	Share price	Price change
ASX Ltd (ASX: ASX)	$60.59	3.84%
Lottery Corporation Ltd (ASX: TLC)	$4.96	3.77%
Domino’s Pizza Enterprises Ltd (ASX: DMP)	$22.00	3.38%
Xero Ltd (ASX: XRO)	$57.79	3.01%
Karoon Energy Ltd (ASX: KAR)	$1.58	2.93%
Beach Energy Ltd (ASX: BPT)	$0.86	2.99%
Woodside Energy Group Ltd (ASX: WDS)	$32.31	2.57%
AUB Group Ltd (ASX: AUB)	$27.69	2.48%
Minerals 260 Ltd (ASX: MI6)	$0.835	2.45%
Insurance Australia Group Ltd (ASX: IAG)	$8.04	2.16%

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

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

More reading

• Xero shares crash 63% in a year: Is there any upside left?
• The Lottery Corporation vs Aristocrat Leisure: ASX shares compared
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Domino’s Pizza Enterprises vs Guzman y Gomez: Which fast food stock offers better value?

Motley Fool contributor Sebastian Bowen 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 Domino’s Pizza Enterprises, The Lottery Corporation, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Aub Group, Domino’s Pizza Enterprises, and The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.