Author: openjargon

Some of the best long-term investments are businesses that can keep growing without having to reinvent themselves every few years.

They usually have strong competitive positions, plenty of room to grow, and the ability to reinvest profits at attractive returns.

With that in mind, here are three ASX shares that I think have many of the ingredients needed to compound shareholder wealth over time.

Life360 Inc (ASX: 360)

The first share is Life360. Its family safety app has become a big part of everyday life for millions of families, offering location sharing, driving reports, crash detection, emergency features, and a growing range of other services.

What I like about Life360 is how much more it could potentially get from the audience it has already built.

Most users access the platform for free, which gives the company a huge pool of people that could eventually move onto paid memberships. At the same time, Life360 can keep adding reasons for families to spend more through new services and higher-value subscriptions.

There is also a significant international opportunity. The US is its most developed market today, but there is no obvious reason why its overseas business couldn’t eventually become much larger.

If Life360 can keep growing its audience while getting better at monetising it, I think the company could be considerably bigger in a decade.

Pro Medicus Ltd (ASX: PME)

Another ASX share I think has excellent long-term prospects is Pro Medicus.

Its Visage imaging platform is used by major hospitals and healthcare groups, particularly in the United States, to manage and interpret huge volumes of medical images.

And those volumes aren’t standing still. Healthcare systems are performing more scans, while radiologists are being asked to deal with increasingly heavy workloads. Software that allows them to work faster and more efficiently is therefore becoming increasingly valuable.

This has helped Pro Medicus win a string of major contracts in the US, and I think there is plenty more market share available to take.

I also like the economics of the business. Once another customer comes onto Visage, Pro Medicus doesn’t need to build factories or hire thousands of employees to support the extra revenue.

That scalability means continued market share gains could translate into very strong profit growth over the long term.

WiseTech Global Ltd (ASX: WTC)

A final ASX share with the potential to compound for many years is WiseTech Global.

Its CargoWise platform helps freight forwarders and logistics companies manage everything from customs and warehousing to shipping, documentation, and compliance.

Global logistics is complicated, which works in WiseTech’s favour. Large customers can build CargoWise deep into their operations, and once that happens, replacing it isn’t necessarily a simple exercise. This gives WiseTech an opportunity to grow alongside its customers and gradually provide them with more functionality through the same platform.

The company has also spent heavily on expanding what CargoWise can do, both through internal development and acquisitions.

Governance concerns are worth highlighting, because poor governance can ultimately undermine even a very good business.

But if WiseTech can put those issues behind it and CargoWise continues becoming an increasingly important part of global logistics, I think the company could have a lot more growth ahead of it.

The post These 3 ASX shares have the ingredients of long-term compounders appeared first on The Motley Fool Australia.

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• AGL, Cochlear, WiseTech shares: Buy, hold, sell
• 3 ASX 200 shares I’d buy and hold for the next decade
• 2 ASX shares highly recommended to buy: Experts
• Tech shares shine while ASX 200 plunges to 4-month low
• Why I just invested $1,500 into this top ASX growth share

Motley Fool contributor James Mickleboro has positions in Life360, Pro Medicus, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Life360 and WiseTech Global. 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.

The Lottery Corporation vs Aristocrat Leisure shares

Many Aussie investors might find themselves weighing up The Lottery Corporation Ltd (ASX: TLC) and Aristocrat Leisure Ltd (ASX: ALL) when looking for exposure to the broader gaming and leisure sector. Both companies have strong brand recognition and play prominent roles in gaming, but with very different business models and financial profiles. Whether you’re seeking steady income or growth prospects, let’s take a closer look at how The Lottery Corporation and Aristocrat compare.

The case for The Lottery Corporation

The Lottery Corporation is Australia’s biggest provider of lotteries, including well-known games like Powerball, Oz Lotto and TattsLotto, plus instant scratch-its and Keno. As of its company profile, The Lottery Corporation holds long-dated or exclusive licences in every state and territory outside WA, distributing its products through a wide retail network (including newsagents and service stations) as well as digitally. Since its 2022 demerger from Tabcorp Ltd (ASX: TAH), the business is now a pure-play lottery operator.

Some stand-out fundamentals:

• The Lottery Corporation boasts a 100% franked dividend yield of 3.40%, appealing for investors seeking steady, fully franked income.
• The P/E ratio sits at 37.97, making it pricier (by this metric) than Aristocrat Leisure.
• Year to date, The Lottery Corporation shares are down 2.6%, suggesting recent investor caution.

This is a classic “income and stability” pick, with defensive appeal thanks to its regulated monopoly-like position in lotteries. The fully franked dividends are consistent and attractive, and the business typically holds up well in mixed economic conditions.

The case for Aristocrat Leisure

Aristocrat Leisure is one of the world’s leading gaming technology providers. Famous for its poker machines, casino management systems, and rapidly growing digital and interactive divisions, Aristocrat generates revenue all over the world—especially in North America. Its products span physical pokies, real-money online gaming, and free-to-play mobile games via its Product Madness subsidiary.

Key points from the data:

• Aristocrat’s P/E ratio is 25.17, notably lower than The Lottery Corporation’s, which could make it look more attractive for value-conscious buyers.
• Its year-to-date return is positive at 3.6% as of early October 2026, outpacing TLC.
• The dividend yield is lower, at 1.66%, and recent dividends have not been fully franked.

Aristocrat is geared for growth, with technology and overseas expansion driving its outlook. Its lower dividend yield and franking may deter income investors, but those after capital growth might appreciate its global ambitions and strengthening digital business.

Valuation comparison

With both companies operating in the broader gaming space, it’s worth comparing their key numbers, though their business models and risk profiles differ.

Metric	The Lottery Corporation	Aristocrat Leisure
Market Cap	$10.62 billion	$35.19 billion
P/E Ratio	37.97	25.17
Dividend Yield	3.40% (100% franked)	1.66% (mostly unfranked recently)
Dividend per share	$0.17	$0.99
Earnings per share	0.128	2.374
YTD Return	-2.62%	3.58%

Aristocrat is the much larger company by market cap and boasts higher reported earnings per share. The Lottery Corporation trades on a notably higher P/E even though its EPS is lower, which could reflect investors’ preference for its reliable income stream. The trade-off shows up clearly in the higher dividend yield (plus franking credits) from The Lottery Corporation, compared to Aristocrat’s more modest, largely unfranked payouts.

Recent share price momentum

To keep things apples-to-apples, I’ve compared both shares as of 2 October 2026, the most recent date available in both datasets.

• The Lottery Corporation closed at $4.77, having dipped 1.85% that day. Its 2026 year-to-date return is down 2.6%.
• Aristocrat Leisure closed at $59.76, up 1.5% for the session and up 3.6% for 2026 year-to-date.

The difference in short-term momentum is clear: Aristocrat shares have outperformed so far this year, while The Lottery Corporation has edged lower.

Which is the better buy?

Looking at the numbers, my pick would be Aristocrat Leisure for Australian investors chasing growth. With its lower P/E ratio (25.17), stronger year-to-date share price gains, and global footprint, it feels better positioned for capital appreciation—even if the unfranked and lower dividend yield is less attractive for income hunters.

That’s not to say The Lottery Corporation should be ignored. If dividend income and franking credits are your main priority, The Lottery Corporation’s near 3.4% fully franked yield with defensive characteristics is compelling. But at a significantly higher P/E and given its recent underperformance, I think Aristocrat offers the more appealing risk/reward mix right now. The difference in franking could matter for some, but I’d lean toward Aristocrat’s growth story, scalable technology, and international reach.

The post The Lottery Corporation vs Aristocrat Leisure: ASX shares compared appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Aristocrat, Liontown, and Navigator Global shares
• Tabcorp vs The Lottery Corporation: Which ASX gaming share comes out on top?
• This ASX dividend share is near a 52-week low. Would I buy?
• Why I’d buy and hold these ASX passive income shares
• Light & Wonder vs Aristocrat Leisure: Which gaming share wins?

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 The Lottery Corporation. The Motley Fool Australia has recommended The Lottery Corporation. 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.

The team at Bell Potter has made some significant changes to its Australian equities portfolio this month.

And the broker’s message is clear. Now could be a good time to increase exposure to quality.

Focus on quality ASX shares

Bell Potter notes that the S&P/ASX 200 index (ASX: XJO) has been one of the weaker major equity markets in 2026. But underneath the index, the falls have been much more severe, with a number of quality businesses down more than 20% despite relatively modest changes to earnings expectations.

It believes higher bond yields, subdued economic growth expectations, and concerns around artificial intelligence (AI) disruption have weighed on valuations more than company fundamentals.

This has created an opportunity to upgrade the quality of its portfolio, highlighting Charter Hall Group (ASX: CHC), Washington H. Soul Pattinson and Company Ltd (ASX: SOL), and Wesfarmers Ltd (ASX: WES) as opportunities. It explained:

The portfolio changes reflect a deliberate shift towards businesses with proven management teams, resilient earnings, strong balance sheets and long-term capital allocation credentials. Specifically, Soul Patts and Wesfarmers are proven high-quality capital allocators, providing a solid ballast in a portfolio and worthy of long-term ownership. Charter Hall, on the other hand, offers compelling value at a point when markets appear to be underappreciating the group’s long term growth potential.

Bell Potter also notes that it has been positioned for interest rates to remain higher for longer.

However, with that view now becoming more widely accepted and rate-sensitive sectors already de-rating, the broker believes valuations are starting to offer a margin of safety. It said:

Knowing equity markets look forward, we are neutralising our positioning given affected sectors have moved to factor in rate, policy and competitive headwinds, with valuations now representing a margin of safety. Collectively, these changes increase exposure to long-term structural growth, recurring earnings and proven capital allocators which have scope for long term value creation.

The buys

Bell Potter has added Charter Hall to gain exposure to a potential recovery in property capital markets.

The broker highlights the company’s $94 billion funds management platform and its exposure to office, industrial, retail, and social infrastructure.

It also likes that Charter Hall is not simply a traditional property owner. Its earnings are driven heavily by managing capital for institutional investors, giving the business a more scalable model. Bell Potter said:

CHC offers exposure to recovering property capital markets, growing institutional allocations to real assets and a high-quality funds management platform, underpinned by solid dividend growth averaging 6% per annum and a strong track record of long-term earnings growth.

Bell Potter is also buying Soul Patts shares, which it describes as Australia’s Berkshire Hathaway. It likes the company’s permanent capital base and ability to invest across listed shares, private businesses, credit, and real assets.

This gives management flexibility to deploy capital wherever it sees the best opportunities, including during periods of market weakness. It said:

SOL’s portfolio is deliberately diversified and increasingly liquid, providing the flexibility to capitalise on opportunities as they arise. The group’s strong balance sheet, permanent capital base and extensive deal flow allow it to invest counter-cyclically when others cannot.

Finally, Bell Potter has added Wesfarmers after its shares fell around 20% from their mid-year peak.

The broker believes this has created an opportunity to buy one of Australia’s highest-quality companies at a more attractive valuation.

It sees the investment case as extending beyond Bunnings and Kmart, with Wesfarmers also offering exposure to healthcare, lithium, and industrial businesses. Bell Potter said:

WES combines earnings resilience, growth optionality and disciplined capital allocation. Its portfolio spans household spending, housing, industrial demand and healthcare, reducing reliance on any single driver, while market-leading positions at Bunnings and Kmart generate defensive cash flows and healthcare, lithium and industrial technology investments provide additional growth avenues.

The post Why this top broker is buying Charter Hall, Soul Patts, and Wesfarmers shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Berkshire Hathaway and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Aurum Resources Ltd (ASX: AUE) have fallen just shy of 30% over the past 12 months, but according to the analysts at Bell Potter, that could be about to change.

They have released a new research report with a speculative buy recommendation on the company and a very bullish share price target, which I’ll get to shortly.

Firstly, let’s take a look at what’s been making news for the company recently.

Excellent exploration results boosting confidence

Aurum on 1 October announced that it had hit the best gold intercept to date at its Boundiali Gold Project in Côte d’Ivoire.

The company received assays back from eight drill holes, with one returning an intercept of 28.8m at 22.9 grams per tonne of gold from a depth of 204m.

Aurum said the drilling also confirmed that the gold mineralisation at the site remained open.

The company is expecting to release a new mineral resource estimate for Boundiali in the fourth quarter of the calendar year, incorporating drilling that was completed in September.

This would be followed by a definitive feasibility study expected in late 2026.

The company currently has a mineral resource estimate of 3.22 million ounces of gold at Boundiali and 1.2 million ounces at its Napié Gold Project.

Aurum has a current cash balance of $95 million.

Aurum Managing Director Dr Caigen Wang said regarding the company’s future plans:

This cash and our own diamond rig fleet places us in a strong position to advance drilling, studies and permitting concurrently at Boundiali. We received environmental approval in May and delivered the Pre-Feasibility Study and Maiden Ore Reserve in June. Our focus now is grant of the Mining Licences and completion of the DFS, with the goal of finalising funding and starting construction in early 2027, targeting first gold from Boundiali in the first half of 2028.

Aurum raised $52.5 million in September at 55 cents per share to progress its exploration program.

ASX gold shares looking cheap

Bell Potter said the company received “high-quality support” for the raise, including from Shandong Gold, which was a top 10 global mining company.

They added that strategic investors now accounted for about 25% of Aurum’s share register.

Bell Potter said further:

AUE is one of the most successful gold exploration companies active in West Africa. Its management team has a demonstrated track record of discovery, resource growth, project construction, development, operation and divestment. AUE is well-funded, has outlined a compelling development project at Boundiali with substantial exploration upside.

Bell Potter has a price target of $1.45 on Aurum shares compared to 51 cents at the time of writing.

If achieved, this would constitute upside of 184.3%. Aurum is valued at $255.6 million.

The post Could this ASX gold developer really rise 180%? appeared first on The Motley Fool Australia.

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• Why this top broker is buying Charter Hall, Soul Patts, and Wesfarmers shares
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• 2 ASX blue-chip shares offering big dividend yields

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 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.

Fortunately for income investors, there are lots of ASX dividend shares to choose from on the local bourse.

To narrow things down, let’s take a closer look at one dividend share that analysts at Bell Potter think could be among the best to buy now.

Which ASX dividend share is a buy?

The dividend share that Bell Potter is recommending to clients is Rural Funds Group (ASX: RFF).

It is an agricultural property company with a portfolio focused on almond orchards, vineyards, cattle, cotton and macadamias. 

Its assets are some of the most productive in the industry and leased to high quality tenants including Treasury Wine Estates Ltd (ASX: TWE), Olam, JBS, and Select Harvests Ltd (ASX: SHV). 

Bell Potter notes that Rural Funds’ shares have pulled back meaningfully since providing disappointing AFFO guidance. 

The broker thinks this has created a buying opportunity given the positive backdrop in agricultural land valuations. It said:

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.

The latest Bendigo bank agricultural land values report (for 1HCY26) looked to confirm resilience in agricultural valuation, with the median transaction value up +8% YoY […]  The report notes that further farmland appreciation is anticipated 2HCY26 amidst supportive commodity markets, however, the re-escalation of input cost pressures, further interest rate rises and the dry weather outlook combine to provide a weaker outlook for growth from CY27.

Big returns and generous dividend yields

According to the note, Bell Potter has retained its buy rating and $2.55 price target on the ASX dividend share.

Based on its current share price of $1.93, this implies potential upside of 32% for investors over the next 12 months.

In addition, Bell Potter is expecting dividend yields of 6.1% in FY 2027, FY 2028, and FY 2029.

Commenting on its buy recommendation, the broker said:

Our Buy rating is unchanged. 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 improvedAFFO 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.

The post Is this cheap ASX dividend share one of the best income buys? appeared first on The Motley Fool Australia.

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

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) ended its winning streak with a small decline. The benchmark index edged 0.1% lower to 8,727.7 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to fall

It looks set to be a poor session for Australian investors following a weak night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 53 points or 0.6% lower this morning. In the United States, the Dow Jones fell 0.65%, the S&P 500 dropped 0.2%, and the Nasdaq fell 0.2%.

ASX 200 shares paying dividends

A number of ASX 200 shares are rewarding their shareholders with dividends on Thursday. This includes Aurelia Metals Ltd (ASX: AMI), Brambles Ltd (ASX: BXB), Cleanaway Waste Management Ltd (ASX: CWY), Medibank Private Ltd (ASX: MPL), and Westgold Resources Ltd (ASX: WGX). The latter will be paying a fully franked 10 cents per share dividend to eligible shareholders.

Oil prices mixed

ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is down 0.6% to US$88.91 a barrel and the Brent crude oil price is up 0.3% to US$100.88 a barrel. Traders appear undecided with where oil prices are going next.

Buy ALS shares

ALS Ltd (ASX: ALQ) shares are still in the buy zone according to Bell Potter. This morning, the broker has retained its buy rating with a trimmed price target of $24.00. It 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. That said, indicators point to short-term buoyant conditions in the exploration market, and given the 1Q FY27 Trading Update, we reiterate our position that FY27 Minerals organic revenue growth guidance appears conservative.”

Gold price drops

It could be a tough day for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price dropped overnight. According to CNBC, the gold futures price is down 1.35% to US$4,131 an ounce. The release of the US Federal Reserve’s minutes revealed expectations for another rate hike.

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

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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.

Commonwealth Bank of Australia (ASX: CBA) shares are a popular choice among passive income investors.

The banking giant is the second-largest company on the S&P/ASX 200 Index (ASX: XJO), with a market capitalisation of $253 billion, at the time of writing.

CBA’s latest financial update shows the bank has continued to perform well this year, despite ongoing volatility.

As part of its FY26 results announcement in mid-August, the bank confirmed a 7% increase in cash NPAT and an 8% increase in statutory NPAT for the 12 months to 30th of June. Its operating income also climbed 6.2% over the period.

The bank also said it is the first time it has reported growth at or above system in each of its five core domestic product categories. Those categories are home lending, business lending, consumer finance, household deposits, and business deposits.

The bank’s huge scale and strong operational growth mean it has been able to generate a reliable profit and regularly return a large portion of those earnings to its shareholders by way of dividends.

But what exactly could a passive income from CBA shares look like?

Here’s a breakdown.

What’s the latest on CBA shares?

At the time of writing, CBA shares are trading for $151.24 each. That’s around 6% lower for the year to date and down 11% from 12 months ago.

That means an $8,000 investment would currently buy you around 52 shares.

What dividend is the bank forecast to pay to shareholders in FY27 and FY28?

CBA has paid its shareholders a regular fully-franked dividend since 1992. These are typically paid out every six months, in March and September.

The bank most recently paid a $2.70-per-share fully-franked final dividend in late September. That brought the FY26 dividend total to $5.05 per share.

Going forward, the bank is forecast to pay its shareholders an estimated $5.45 per share dividend in FY27. It is then forecast to pay a slightly lower $5.30 per share dividend in FY28.

Using the CBA share price at the time of writing, this translates to a forward dividend yield of roughly 3.6% for FY27. For FY28, the forward dividend yield is closer to 3.5%.

So, what passive income can I earn off an $8,000 investment into CBA shares in FY27 and FY28?

I’ve run the numbers using the estimated dividend payout figures above to work out roughly how much passive income investors can expect from an $8,000 investment in FY27 and FY28.

If the banking giant pays the forecasted $5.45 per-share dividend in FY27, 52 shares would generate around $283.40 in passive income for the year.

Assuming CBA then pays the expected $5.30 dividend in FY28, those same 52 shares would generate around $275.60 in passive income.

The post If I invest $8,000 in CBA shares, what passive income could I earn in FY27 and FY28? appeared first on The Motley Fool Australia.

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• Are CBA shares still worth buying near $150?
• How much passive income can I earn from a $950,000 superannuation balance?
• If I invest $10,000 in CBA shares today, what could they be worth in October 2027?
• How much could the big 4 banks’ share prices fall?

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

Certain ASX blue-chip shares can deliver substantial passive income thanks to their high dividend yields.

One of the best things I like about investing in ASX dividend shares compared to term deposits is that they can deliver both a good payout and dividend growth over time.

I think two of the most underrated businesses for passive income are below.

Argo Investments Ltd (ASX: ARG)

Argo is one of Australia’s largest and oldest listed investment companies (LICs). It aims to invest in a diversified portfolio of ASX shares with a low-cost, internally managed business model. It says it invests with a conservative, long-term approach.

It aims to provide shareholders with both fully-franked dividend income and capital growth, and it has been successful in doing so.

Argo has regularly increased its annual payout over the last two decades, though the COVID-19 period did lead to dividend reductions.

In FY26, the business grew its annual dividend per share by 4% to 38.5 cents. That means the business currently has a grossed-up dividend yield of 6%, including franking credits, which is a great starting dividend yield.

Currently, its biggest investments are BHP Group Ltd (ASX: BHP), Macquarie Group Ltd (ASX: MQG), Rio Tinto Ltd (ASX: RIO), Commonwealth Bank of Australia (ASX: CBA), and Wesfarmers Ltd (ASX: WES).

As you can see, the LIC’s portfolio is full of ASX blue-chip shares, which can provide it with resilient profits and dividends over the long term.

With a low management expense ratio of 0.14%, I’d be happy to invest in this business, which has been running since 1946.

JB Hi-Fi Ltd (ASX: JBH)

The other ASX share I really want to highlight is JB Hi-Fi, one of Australia’s leading retailers of electronics and appliances. It has four businesses – JB Hi-Fi Australia, JB Hi-Fi New Zealand, The Good Guys, and E&S.

One of the main reasons why I think the JB Hi-Fi share price is appealing is that the ASX blue-chip share now offers a very large dividend yield. It’s down 40% in the past year, so the dividend yield is much higher.

JB Hi-Fi is projected to pay an annual dividend per share of $3.35 in FY27. That translates into a grossed-up dividend yield of almost 7%, including franking credits. I think that’s an impressive yield considering it has increased its payout most years over the past 15 years.

It’s true the outlook seems difficult for Australian households, so we’ll see how that plays out in the next year or two. But, I think the market is being too pessimistic about the business on a long-term view, particularly considering revenue only fell slightly in Australia at the start of FY27.

If there’s a good time to invest in a retailer like JB Hi-Fi, I think it’s now, given the much better valuation. I think households will continue to buy electronics in the coming year, making it more defensive than ASX investors are giving it credit for.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

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• How much do I need to retire on $110,000 a year at 65?
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has recommended BHP Group, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Washington H Soul Pattinson vs GQG Partners shares

Many Aussie investors looking to boost their portfolios with reliable dividends or diversified exposure will likely end up weighing up Washington H Soul Pattinson and Co Ltd (ASX: SOL) against GQG Partners Inc (ASX: GQG). Both companies have reputations for generating solid returns in very different ways. But which is actually the more attractive buy right now? Let’s take a closer look at what sets these two apart, and where the more compelling opportunity may lie.

The case for Soul Patts

Washington H Soul Pattinson, often called Soul Patts, is one of Australia’s oldest listed companies and a true investment conglomerate. With its roots in pharmacy, Soul Patts today holds a sprawling and diversified portfolio across listed and unlisted companies, real assets, emerging businesses, and even a credit arm. Its most recent public profile highlights large stakes in TPG Telecom Ltd (ASX: TPG) and New Hope Corporation Ltd (ASX: NHC), and it now controls Brickworks following a 2025 merger.

What stands out most for Soul Patts is its impressive track record of stable, fully franked dividends and long-term capital growth. As of the latest data:

• Market cap sits at $17.24 billion – making it a heavyweight by Australian standards.
• P/E ratio is 7.7, which looks quite reasonable for such a diversified portfolio.
• The current dividend yield is 2.37%, fully franked, with consistent payments over many years.
• Earnings per share are $5.876, supporting that sustainable payout.
• The company boasts a strong year-to-date return of 23.1%.

If you’re after resilience backed by a long-running, diversified business, Soul Patts.

The case for GQG Partners

GQG Partners is a global asset manager with a boutique approach to actively managed equity portfolios. Headquartered in Florida, the company serves big institutional clients and private investors worldwide, offering exposure to international equity markets and diversified strategies. GQG has built its reputation on performance-driven portfolio management.

Key highlights from the most recent numbers:

• Market cap is $3.22 billion – a fair bit smaller than Soul Pattinson, but still substantial.
• P/E ratio is just 4.81, indicating a much lower multiple on recent earnings.
• Dividend yield is a whopping 18.86%, although these dividends are unfranked.
• Earnings per share currently sit at $0.159, with dividends per share at $0.21.
• Year-to-date return is -28.3%, showing investors have had a tough run recently.

GQG’s headline yield is eye-catching, but investors should look at what’s happening underneath the surface, as high yields can sometimes be a red flag depending on business health and recent share price changes.

Valuation comparison

Here’s how the key figures stack up side by side:

Metric	Soul Patts	GQG Partners
Market Cap	$17.24 billion	$3.22 billion
P/E Ratio	7.70	4.81
Dividend Yield	2.37% (100% franked)	18.86% (unfranked)
Earnings per share	$5.876	$0.159
Dividend per share	$1.11	$0.21
Year-to-date return	23.1%	-28.3%

Soul Pattinson trades at a higher multiple but has delivered stronger share price returns and full franking on its dividends. GQG’s sky-high yield must be weighed against recent heavy share price losses and the fact that dividends are unfranked – a big consideration for tax-advantaged Aussie investors.

Recent share price momentum

Comparing recent share price performance up to 5 October 2026:

• Washington H Soul Pattinson closed at $45.39, having lifted from $44.11 on 8 September 2026 for a roughly 2.9% gain over that month.
• GQG Partners closed at $1.09, down from $1.21 on 8 September 2026, representing a roughly 9.9% drop over the same period.

YTD returns back this up: Soul Pattinson is up 23.1% for the year to date, while GQG is down 28.3%. These numbers highlight clearly different recent trajectories.

Which is the better buy?

For my money, Washington H Soul Pattinson looks like the far stronger pick today. Its diversified structure, reliable steadily rising fully franked dividends, and share price momentum all suggest it’s the steadier, more trustworthy long-term investment. The yield on offer is modest but backed by decades of consistent payments and capital growth.

GQG Partners’ 18.9% yield certainly jumps off the page, but it’s unfranked and comes amidst a hefty share price decline this year. Sometimes a massive yield is more “warning sign” than “bargain.” If the underlying profits (or payout) can’t be maintained, dividend chasers could be left out in the cold – and with recent negative share price momentum, a cautious approach is warranted.

Personally, I’d lean toward Soul Pattinson as the more resilient and attractive buy among these two, especially if you value stability and the tax benefits of franking. GQG might suit aggressive yield hunters, but for most Aussie investors seeking long-term wealth building, Soul Patts gets my nod.

The post Soul Patts vs GQG Partners: Which is the stronger pick? appeared first on The Motley Fool Australia.

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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 Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Gqg Partners. 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.

Healthco Healthcare and Wellness REIT (ASX: HCW) shares have had a turbulent year, having been caught up in the private hospital operator Healthscope being placed in receivership in May.

The shares took a tumble around that time but have recovered over the months since and are now trading at 75.25 cents at the time of writing, up 7.5% over a 12-month period.

Major headache for the company resolved

Healthco had some good news this week, saying binding agreements had been finalised for the 10 final Healthscope hospitals owned by itself and the associated Unlisted Healthcare Fund.

This led the company to reinstate dividends, declaring a quarterly payout of 1.5 cents per share, in line with the anticipated full-year payout of 6 cents per share.

Healthco said the new agreements “will enhance the income security and tenant diversity of the hospital portfolio”.

The company said the $1.35 billion portfolio valuation was expected to remain stable, and its weighted average lease expiry had been extended by 2.9 years to 13.5 years.

Healthco said it had locked in 20-year leases, with annual rent escalations at the rate of inflation or plus or minus 3%.

Healthco Fund Manager Christian Soberg said:

The resolution of the Healthscope situation is aligned with our previously-stated objectives including providing continuity of service across all hospitals and maximising long-term value for HCW unitholders. The new leases support distributions being reinstated, restore income certainty and provide a strong foundation for future earnings and distribution growth. The board continues to evaluate a range of strategic and capital management initiatives aimed at maximising value for HCW unitholders.

The quarterly distribution’s ex-dividend date is October 8, with payment to be made on 24 November.

Healthco valuation looking cheap

Macquarie said in a research note that now that the Healthscope issue had been resolved, attention would turn to the sustainability of distributions.

The broker said Healthco was trading at a large discount to its net tangible asset valuation of $1.35 as at the end of June.

Macquarie therefore increased its price target for Healthco from 88 cents to $1.10, up from 75 cents at the time of writing.

If achieved, this would constitute a return of 46.7%. Macquarie is also predicting a dividend yield of 8.2% this financial year, increasing to 8.7% by FY29.

At the release of its full-year results in August, Healthco said it had 99% occupancy across its tenancies.

The company had cash and undrawn debt of $158 million and a gearing ratio of 29%, below its target range.

Healthco is currently valued at $401.6 million.  

The post Macquarie tips an 8% dividend yield and 46% share price gain for this stock appeared first on The Motley Fool Australia.

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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.