Author: openjargon

A good ASX dividend share needs more than a big yield.

I think the best income shares are backed by assets, tenants, cash flows, or services that can keep supporting distributions through different market conditions.

For investors looking for income with staying power, these are two ASX dividend shares I would consider buying.

Charter Hall Long WALE REIT (ASX: CLW)

Charter Hall Long WALE REIT is one income share I would look at.

The trust owns a diversified portfolio of property assets leased to corporate and government tenants. Its focus is on long leases, which can provide investors with a clearer view of future rental income.

That is the attraction. Income investors are often looking for reliability, and long leases can help provide it. They do not remove all risk, but they can make the cash flow profile easier to understand.

I also like that the trust gives exposure to real assets. Property can be affected by interest rates, debt costs, valuations, and tenant demand. But well-leased assets can still play a useful role in an income portfolio.

The key for investors is to watch gearing, lease expiries, asset values, and distribution coverage. Property trusts can look attractive when yields are high, but balance sheet strength is still important.

For me, Charter Hall Long WALE REIT is appealing because it offers income backed by leases rather than pure economic optimism. And based on consensus estimates, it currently trades with a forward 7% dividend yield.

BWP Trust (ASX: BWP)

BWP Trust is another ASX income share I would consider.

The property group owns a portfolio of large-format retail sites, with a strong connection to Bunnings-leased properties. That gives it exposure to a tenant and retail category with a long history of relevance in Australia.

The model is simple, which I think is part of the appeal with this one.

BWP owns properties, collects rent, manages its portfolio, and pays distributions to investors. It is not trying to be a fast-moving growth stock. It is more about property income, asset quality, and long-term lease relationships.

Large-format retail sites can be valuable because they are not always easy to replace. Location, access, parking, and building suitability are important.

Interest rates and property valuations can affect the share price, and retail property still needs to be assessed carefully. But I think BWP’s tenant profile and tangible asset backing make it a useful income candidate.

Another positive is that BWP trades with a forward dividend yield of 5% based on consensus estimates.

Foolish Takeaway

Income investing can feel more comfortable when the cash flow has structure behind it.

That is what I like about these two ASX income shares. Their appeal is not just the headline yield, but the property assets, tenant relationships, and lease profiles supporting those payments.

Both still carry risks, especially around interest rates, debt, tenant demand, and property valuations. But for investors trying to build income that can last, I think these are the kinds of businesses worth considering.

The post 2 ASX dividend shares I’d buy for income with staying power appeared first on The Motley Fool Australia.

More reading

• 3 buy-rated ASX dividend shares forecast to yield 5%+ in FY 2027
• 3 ASX dividend shares with bigger yields than CBA
• Here are my 5 best ASX passive income stocks
• Charter Hall Long WALE REIT declares June 2026 distribution and DRP details
• After the Federal Budget, this is the type of property investment I’d buy in 2026

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 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.

A $1,000 investment can be a strong starting point on the ASX.

The right exchange traded fund (ETF) can spread that money across dozens, hundreds, or even thousands of companies in a single trade.

That makes ETFs useful for investors who want diversification, long-term growth, and a simple way to get started.

With that in mind, here are three ASX ETFs that could be good options for a $1,000 investment.

Betashares Global Cybersecurity ETF (ASX: HACK)

The Betashares Global Cybersecurity ETF gives investors exposure to one of the unavoidable costs of doing business in a digital world.

Every company with customer data, online payments, cloud software, connected devices, or remote workers needs to think about cyber protection.

That is what makes cybersecurity such an interesting long-term theme. It is not tied only to one product cycle or one fashionable technology. It is linked to the basic need to keep systems, identities, money, and information safe.

The fund owns companies that sit close to that problem, including CrowdStrike (NASDAQ: CRWD), Palo Alto Networks (NASDAQ: PANW), and Fortinet (NASDAQ: FTNT).

A $1,000 investment in this ETF is essentially a bet that digital risk will keep growing and that businesses will continue spending money to defend themselves.

The fund can be volatile because it is concentrated in a specialist sector. But for investors wanting targeted exposure to cybersecurity, it could be a compelling long-term option.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF takes a different approach.

This fund is built around the idea that some businesses have stronger defences than others. Those defences might come from brand strength, customer relationships, cost advantages, patents, scale, or products that are difficult to replace.

The important part is that the fund is not simply buying the largest US companies by default. It is looking for businesses that combine competitive strength with valuation discipline.

Current holdings include NXP Semiconductors (NASDAQ: NXPI), Masco Corp (NYSE: MAS), and Airbnb (NASDAQ: ABNB).

That mix is quite different from a standard market-cap weighted US index. It gives investors exposure to companies from different industries, but with a shared focus on business quality and durability.

For a $1,000 investment, this ETF could suit someone who wants US exposure with a more selective investment process behind it.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A third ASX ETF to consider is the Vanguard MSCI Index International Shares ETF.

This fund gives investors broad exposure to developed share markets outside Australia.

That can be useful because many Australian portfolios are naturally tilted toward local banks, miners, supermarkets, and dividend shares. The Vanguard MSCI Index International Shares ETF expands the opportunity by adding access to companies listed in the United States, Europe, Japan, and other major developed markets.

Its holdings include global giants such as NVIDIA (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT).

The fund is not trying to be clever or thematic. Its strength is breadth. Investors get exposure to a very large group of international companies, which can help reduce reliance on the Australian market alone.

For someone investing $1,000 and wanting a simple global foundation, it could be one of the easiest options on the ASX.

The post Which ASX ETFs are good options for a $1,000 investment? appeared first on The Motley Fool Australia.

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• How I’d invest $250 a week in ASX shares to aim for $700,000
• 10 amazing ASX ETFs for the next decade
• Invest like Warren Buffett with these top ASX ETFs
• 5 high-quality ASX ETFs to buy with $5,000
• 3 world-class ASX ETFs to help build a winning portfolio

Motley Fool contributor James Mickleboro has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Airbnb, Apple, BetaShares Global Cybersecurity ETF, CrowdStrike, Fortinet, Microsoft, NXP Semiconductors, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Masco and Palo Alto Networks. The Motley Fool Australia has recommended Airbnb, Apple, CrowdStrike, Microsoft, Nvidia, VanEck Morningstar Wide Moat ETF, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX healthcare stock Vitrafy Life Sciences Ltd (ASX: VFY) has been one of the hottest shares in 2026. 

The company has designed and developed an innovative solution to advance cryopreservation, including smart devices, a quality management software platform, and smart packaging solutions.

Commercial success has led to significant share price gains of almost 150% in 2026 alone. 

A new report from Bell Potter suggests this is likely to continue, with the broker significantly increasing its 12-month price target. 

$30 million capital raise

Vitrafy recently raised $30 million from institutional investors at $2.60 per share.

Following this, the company announced a Share Purchase Plan (SPP). 

The company said the SPP intends to raise up to $2 million. 

The SPP provides Eligible Shareholders with the opportunity to acquire new fully paid ordinary shares in the Company (“New Shares”) at the same price as the institutional placement announced to the ASX on Friday, 12 June 2026, which raised A$30 million.

Each Eligible Shareholder may apply for up to A$30,000 worth of New Shares at the offer price of A$2.60 per New Share, irrespective of the size of their holding in Vitrafy, without incurring brokerage or transaction costs.

What is Bell Potter’s view?

Following this announcement, the team at Bell Potter provided updated guidance on this ASX healthcare stock. 

The broker largely appears constructive/bullish on the capital raise, viewing it as growth funding rather than a rescue financing.

According to the report, commercial traction is improving, with positive developments in military blood studies, animal reproduction partnerships, and growing interest from the U.S. civilian blood market.

The $32 million total raise (A$30m placement + A$2m SPP) provides enough capital to manufacture approximately 100 units and accelerate commercial deployment. 

Bell Potter estimates those units could generate around A$12 million of annual managed-service revenue, plus recurring consumable sales.

Target price increase for ASX healthcare stock

This ASX healthcare stock closed trading yesterday at $3.19 per share. 

The team at Bell Potter have now upgraded their 12-month price target to $5.15 (previously $3.00). 

It has retained its speculative buy recommendation. 

This indicates an upside potential of 61% from current levels. 

The capital raising and developments in the Red Blood Cell market have instigated a revision to our estimates, particularly from FY28 on the revenue line, where we see 175 total units being installed by FY30 which could generate $80m in annual revenue.

We still anticipate VFY reaching breakeven by FY30.

The post This ASX healthcare stock just got a big upgrade following capital raise appeared first on The Motley Fool Australia.

More reading

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• What is Morgan’s updated view on this red hot ASX healthcare stock?

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.

Chasing dividend yield at any price is a mistake.

A high yield sitting on top of a deteriorating business is rarely worth the risk.

The better approach is to find quality businesses that have pulled back enough to make their dividend yield attractive again.

These three well-known ASX dividend shares fit that description right now.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is down about 9% from the all-time high of $95.18 it set in August last year.

That pullback has not been driven by a deteriorating business.

In the first half of FY2026, Wesfarmers delivered net profit after tax of $1.603 billion, up 9.3% on the prior corresponding period. Reassuringly, Bunnings and Kmart both continue to deliver strong sales growth.

The board lifted its fully franked interim dividend by 7.4% to $1.02 per share, a clear signal of confidence in the underlying cash generation.

At the lower share price, that growing dividend now goes further.

CMC Invest forecasts an annual dividend of $2.20 per share for FY2026, implying a forward yield of approximately 2.54%. That figure is expected to climb further as the dividend continues to grow into FY2027.

Wesfarmers has increased its dividend every year since divesting Coles in 2020. This streak gives income investors a degree of confidence in the trajectory of consistent dividend compounding.

BHP Group Ltd (ASX: BHP)

BHP offers a higher starting yield than Wesfarmers, backed by one of the strongest commodity tailwinds on the ASX.

BHP’s dividend is highly cyclical, swinging from $4.63 per share in 2022 to just $1.71 per share in 2025, before the trend reversed with a 2026 interim dividend of $1.04 per share, a healthy rise over the prior year’s 79 cents.

Including the September final dividend, BHP currently has a trailing 12-month payout of $1.96 per share. This is fully franked, putting the trailing yield at approximately 3.3% at current prices.

For Australian taxpayers, the full franking on that yield is important. This effectively lifts the after-tax return well above the headline figure for shareholders in the 30% tax bracket. What’s more, the franking lifts the after-tax return even further for those in pension-phase superannuation accounts able to claim the full cash refund.

The dividend backdrop has been reinforced by BHP’s copper exposure, with copper earnings now exceeding iron ore contributions for the first time in the company’s history. This comes as demand for AI data centres and electrification drives the copper price to record levels.

This tailwind gives the BHP dividend more support than its historical cyclicality alone would suggest.

Telstra Group Ltd (ASX: TLS)

Telstra is the most defensive of the three, and its dividend track record reflects that.

Shareholders have not seen a dividend cut since 2019 and have enjoyed an annual dividend increase every year since 2022.

Telstra’s most recent interim dividend came in at 9.5 cents per share, fully franked, matching the equivalent payout from 2025. This brings the trailing annual total to 19 cents per share and a trailing yield of approximately 3.7%.

Brokers see further growth ahead. UBS forecasts Telstra paying 21 cents per share in FY2026, implying a grossed-up yield of approximately 6.2% including franking credits.

Moreover, Morgan Stanley separately forecasts 20 cents per share with a price target implying further capital upside on top of the dividend.

Telstra’s mobile division, the largest network in Australia, continues to underpin that earnings growth through pricing power and steady subscriber growth.

The lesson for these ASX dividend shares

Each of these three businesses has pulled back for reasons that are largely cyclical or sentiment-driven rather than structural.

Wesfarmers fell on broader retail sector caution despite delivering double-digit profit growth.

BHP’s yield swings with the commodity cycle.

Telstra has simply continued growing its dividend through a defensive, less exciting period for the broader market.

That combination of real earnings growth and a lower entry price is exactly what makes these ASX dividend shares well priced.

Foolish takeaway

Wesfarmers, BHP, and Telstra all offer a different entry point into ASX dividend shares right now.

Wesfarmers offers the lowest starting yield but the most consistent growth track record. BHP offers a higher cyclical yield backed by a genuine structural copper tailwind. Telstra offers the most defensive earnings base and a long, uninterrupted streak of dividend growth.

For income investors prepared to look past the headlines, all three remain well-priced options on the ASX today.

The post There are still some well-priced ASX dividend shares. Here’s where to look appeared first on The Motley Fool Australia.

More reading

• How I’d build $50,000 of ASX passive income
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• $5,000 invested in BHP shares 12 months ago is now worth….
• Forget BHP and Rio Tinto, this ASX copper share could rise 100%+

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

Most Australians check their superannuation and focus on one thing: the balance.

That makes sense because it is the number staring back at you from the app or annual statement. It feels like the scoreboard. Higher is better, lower is worse, and anything below the average can feel like bad news.

But the uncomfortable truth is that your super balance is not the only number that matters in retirement planning. In many cases, it may not even be the most useful one.

The number that matters more is how much income that balance can realistically support.

A big superannuation balance can still feel small

It is easy to assume that reaching a large super balance will automatically make retirement feel comfortable, but that is not always the case.

A person with $500,000 in superannuation and high spending needs may feel far more financially stretched than someone with $350,000, a paid-off home, low expenses, and a modest lifestyle.

That is why retirement planning should not begin with the question: “How much do I have?” It should begin with a more practical question: “How much will I need each year?”

Once you know that, your super balance starts to make far more sense.

Retirement is a cash flow problem

During your working life, income usually arrives through wages or a salary. In retirement, that income has to come from somewhere else. It may come from super drawdowns, investment income, the Age Pension, savings, or a combination of all of them.

That means your superannuation is not just a nest egg. It is a future pay packet, and like any pay packet, what is important is whether it can cover the life you want to live.

According to the Association of Superannuation Funds of Australia, a comfortable retirement requires around $630,000 in super for a single person and $730,000 for a couple, assuming home ownership and some Age Pension support.

Those numbers are useful, but they are only estimates of the capital needed to support a particular lifestyle.

Comfortable means choices

A comfortable retirement is not extravagant. It is not about luxury travel every month or spending without limits. Instead, it is about choice.

It means having the flexibility to eat out, run a reliable car, maintain private health insurance, replace household items when needed, visit family, and take occasional holidays without every decision feeling financially loaded.

By contrast, a modest retirement can still be workable, but it usually involves more compromise. The bills may be paid, but there is less room for mistakes, surprises, or indulgences.

This is why income is so important. It determines whether retirement feels flexible or fragile.

What to do instead

A better way to assess your superannuation is to work backwards.

Start by estimating the annual income you would like in retirement. Then consider how much of that could come from the Age Pension, if you are eligible. From there, your super only needs to fill the gap.

This approach can be far less intimidating than chasing a giant headline number.

It also makes the task more practical. If the gap is too large, you can respond by increasing contributions, reviewing investment options, reducing fees, delaying retirement, or adjusting expectations.

Foolish takeaway

Your superannuation balance is important, but it is not the whole story.

The real question is not whether your balance looks impressive on paper. It is whether it can help generate the income you need for the retirement you want.

In retirement, wealth is not just measured by what you have saved. It is measured by how comfortably that money lets you live.

The post The Australian superannuation number that is more important than your balance appeared first on The Motley Fool Australia.

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• Centuria Capital Group wraps up $300m equity raise and shares resume trading

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.

12 months ago, Xero Ltd (ASX: XRO) shares were flying high, reaching a record high of $196.52. Fast forward a year, and the picture looks dramatically different.

At the time of writing, the accounting software company’s shares change hands for around $65.00, a 7-year low. That leaves the stock down more than 40% since the start of 2026 and roughly 66% lower than this time last year.

It’s been a brutal period for shareholders.

So what on earth is happening with this former ASX tech darling?

Why are Xero shares under pressure?

The latest weakness appears to be part of the broader sell-off that has swept through growth stocks.

Investors have become far less willing to pay premium valuations for technology companies, particularly those whose investment appeal depends heavily on future growth. As sentiment towards the sector has deteriorated, Xero shares have come under fire.

The market simply isn’t valuing software businesses the way it did during the boom years.

That doesn’t necessarily mean there’s anything fundamentally wrong with the company.

Business is still performing

While the price of Xero shares has collapsed, Xero’s operating performance tells a very different story.

Revenue surged 31% to NZ$2.75 billion in the most recent financial year, highlighting continued strong demand for its accounting software platform.

Adjusted EBITDA increased 18% to NZ$757.4 million, while free cash flow reached NZ$554 million.

Perhaps most importantly, annualised recurring revenue jumped 37%.

That’s a key metric for software companies because recurring subscription income provides visibility and predictability. Investors typically place a high value on businesses that can generate growing streams of recurring revenue.

In other words, the business continues to grow even as the share price struggles.

US opportunity remains enormous

One reason some investors remain optimistic about Xero shares is the company’s growing traction in the US.

For years, the US small-business market has been viewed as the company’s biggest long-term opportunity. Success there could significantly expand Xero’s addressable market and growth runway.

Encouragingly, organic growth in the US reportedly accelerated to 30%.

That’s an important milestone. If Xero can establish itself as a meaningful player in the world’s largest accounting software market, the long-term growth potential becomes far more compelling.

Management’s outlook also suggests growth remains firmly on the agenda. The company is targeting roughly 34% revenue growth in FY27 and expects adjusted EBITDA to land between NZ$860 million and NZ$920 million.

Those numbers hardly describe a business running out of steam.

What next for Xero shares?

Despite the strong operating performance, risks remain.

Investors are still waiting to see how the company’s Melio acquisition progresses, while broader market sentiment towards software stocks remains fragile.

That’s helping explain why Xero shares continue to trade well below previous highs.

Even so, some analysts see value emerging. Shaw and Partners believes the stock offers approximately 25% upside from current levels.

For now, the market appears torn between two competing narratives: a rapidly growing software business and a growth stock sector that remains deeply out of favour. Which story wins may determine where Xero shares head next.

The post What’s spooking investors about Xero shares? appeared first on The Motley Fool Australia.

More reading

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

Some of the ASX 200’s highest-quality shares have been hit hard over the past 12 months.

While this is disappointing, for investors with a long-term mindset, large falls in strong businesses can create buying opportunities.

This is especially true when the market becomes focused on short-term concerns while the company’s long-term position remains attractive.

Here are three ASX 200 shares that are down heavily and could be bargain buys for patient investors.

Cochlear Ltd (ASX: COH)

Cochlear has been one of the biggest underperforming shares in the ASX 200 over the past 12 months.

Its shares are down approximately 62% over this period, leaving the hearing implant company well out of favour with investors.

That is a major move for a business with a long record of innovation, global leadership, and life-changing products.

Cochlear’s devices help people with significant hearing loss reconnect with speech, sound, and daily communication. That gives the company a role that goes well beyond consumer electronics or discretionary healthcare.

The business operates in a specialised market where clinical trust, product reliability, surgeon relationships, and long-term patient support all matter.

Those advantages take years to build.

The recent share price weakness reflects disappointment over its recent performance. However, the long-term need for hearing solutions should continue to grow as populations age and access to treatment improves.

If Cochlear can restore confidence in its earnings trajectory, the selloff could prove to be a major opportunity for buy and hold investors.

REA Group Ltd (ASX: REA)

REA has also been sold down heavily.

Its shares are down approximately 40% over the past 12 months amid concerns about higher interest rates and proposed changes to negative gearing.

These issues have weighed on investor sentiment because REA is closely connected to the housing market. If property activity slows, listing volumes and advertising demand can come under pressure.

But the long-term investment case remains compelling.

REA owns realestate.com.au, one of Australia’s most important property platforms. Buyers go there because the listings are there, agents list there because the audience is there, and vendors want access to the largest possible pool of potential buyers.

That loop gives REA a powerful position in the property ecosystem.

Housing markets move through cycles, and policy changes can affect confidence. But Australians remain deeply engaged with property, and digital marketplaces continue to play a central role in how homes are bought and sold.

A 40% fall may have created an opportunity to buy one of the ASX’s best digital businesses at a far more attractive price.

Xero Ltd (ASX: XRO)

Xero has suffered the sharpest fall of the three ASX 200 shares.

The cloud accounting software company’s shares are down approximately 65% over the past 12 months.

The broader tech selloff has hurt sentiment, and investors have also been weighing concerns about artificial intelligence disruption across software markets.

That has created a difficult backdrop for Xero.

However, the company remains deeply embedded in the financial workflows of small businesses, accountants, and bookkeepers.

Its platform helps users manage invoicing, payroll, bank feeds, reporting, compliance, payments, and adviser relationships. Once a business has built its financial processes around Xero, switching can become inconvenient and disruptive.

Artificial intelligence may also become a useful tool inside the platform over time, helping automate tasks and improve the value customers receive.

The share price fall shows how much expectations have reset. But if Xero keeps expanding internationally, adds more services, and uses technology to deepen its platform, the current weakness could prove to be an attractive entry point into one of the ASX’s strongest software businesses.

The post These ASX 200 shares are down 40% to 65% and could be bargain buys appeared first on The Motley Fool Australia.

More reading

• 5 ASX growth shares I want in my portfolio in FY27
• What’s spooking investors about Xero shares?
• What on earth’s going on with Cochlear shares?
• Xero shares just crashed to COVID-era lows. Is this ASX 200 tech stock broken?
• Buy, hold, sell: Charter Hall, Northern Star, Cochlear shares

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

The team at Bell Potter have been consistently bullish on ASX materials stock WA1 Resources Ltd (ASX: WA1) this year. 

WA1 listed on the ASX in February 2022. Since then, it has focused on an aggressive drill-out program at West Arunta, specifically targeting the Luni carbonatite structure. 

Niobium is a niche commodity, primarily micro-alloyed into structural steel to improve strength and reduce weight in applications.

In the last 12 months, this ASX materials stock has been relatively flat.

However a key announcement has led to a strong upgrade from the team at Bell Potter who now see this ASX materials stock as one that could double in the next 12 months. 

What happened?

WA1 has completed larger-scale processing tests on ore from its Luni niobium project. 

The tests showed the company can successfully concentrate the niobium into a high-grade product using a relatively simple flotation process and ordinary site water.

For investors, this is a big positive as one of the biggest risks for any mining project is whether the ore can actually be processed economically.

These results show that:

• The processing method appears to work consistently across different parts of the deposit.
• The quality of the concentrate produced is high enough to be commercially attractive.
• The project’s future processing plant design is becoming more certain.

In mining terms, this “de-risks” the project because investors now have more confidence that the ore can be turned into a saleable product.

Standout results

The best area of the deposit (Composite A), which is expected to be mined first, delivered:

• 46% niobium concentrate grade
• 67% recovery rate.

Recovery rate means 67% of the niobium in the ore was successfully captured during processing.

This was better than previous test results and suggests the project could be more profitable than originally expected.

Because recoveries were stronger than expected, Bell Potter increased its assumption for how much niobium WA1 can extract from the ore.

Big upgrade for ASX materials stock

As a result, Bell Potter has upgraded its price target on this ASX materials stock to $27.20 (previously $24.40). 

This is significant because this ASX materials stock currently trades for around $12.50 per share. 

The new target from Bell Potter indicates an upside potential of 129%. 

The testwork confirms a two-stage flotation regime can produce high-quality niobium concentrates with commercially relevant recoveries across the deposit, using raw site water.

The broker has retained its speculative buy recommendation. 

The post Bell Potter tips 129% upside for this ASX materials stock appeared first on The Motley Fool Australia.

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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.

Of those ASX investors who love buying and investing in Vanguard index funds, there are two real choices if an investor wishes to gain broad exposure to the Australian share market. The preferred choice of many is, of course, the Vanguard Australian Shares Index ETF (ASX: VAS).

This exchange-traded fund (ETF) is, by a large margin, the most popular index fund and ETF in Australia, with more than $26 billion currently under management.

VAS offers investors simple, easy access to our most well-known shares by mirroring the S&P/ASX 300 Index (ASX: XKO). As its name implies, this index tracks the largest 300 stocks listed in Australia. That’s everything from Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), and Woolworths Group Ltd (ASX: WOW), to JB Hi-Fi Ltd (ASX: JBH), Ampol Ltd (ASX: ALD), and Metcash Ltd (ASX: MTS).

However, there is another Vanguard index fund that addresses one of investors’ chronic concerns about ASX index funds – that they are too heavy on sluggish bank shares and mining stocks.

That Vanguard ETF is the Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO). Instead of buying 300 of the largest stocks listed on the public markets, VSO only holds about 170. These are all taken from the bottom end of the ASX 300, so no CBAs or Telstras here.

Instead, you’ll find the likes of BlueScope Steel Ltd (ASX: BSL), NextDC Ltd (ASX: NXT), and Orica Ltd (ASX: ORI) amongst its largest holdings. VSO is designed to give extra weight to these smaller, and potentially more nimble and mobile stocks, at the expense of the ASX’s largest blue chips.

That all sounds grand. But today, let’s check out the numbers, and see which ASX ETF has actually delivered the best returns for investors.

VSO or VAS: Which ASX index fund comes out on top?

Let’s start with the Vanguard Australian Shares ETF. As of 31 May, this index fund has delivered a 1.38% return year to date. Over the past 12 months, the number is 7.091%. That stretches to 10.94% per annum over the three years to 31 May, 7.92% over five years, and 9.03% over ten.

These returns account for fees and include both capital growth and dividend distribution returns.

Meanwhile, VSO units have gone backwards by 2.6% in 2026 so far. However, over 12 months, investors have enjoyed a 13.27% return. That morphs into 11.42% per annum over the past three years, 7.02% over five years, and 9.33% over ten years.

As you can see, there isn’t a lot of distance between these two Vanguard ETFs. Both VAS and VSO come out ahead over different periods, but an investor who put all of their eggs in either VAS or VSO five or ten years ago would largely come out level.

It seems, going off the historical data at least, it didn’t matter if investors chose one, the other, or both.

The post VAS vs VSO: Do small-cap stocks beat the ASX 300? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Vanguard Australian Shares Index ETF and Vanguard Msci Australian Small Companies Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL) shares remain one of the most debated blue-chip stocks on the ASX.

The biotechnology giant is trading around $112.04, which is a long way below the levels investors were used to seeing in past years. That alone makes the stock interesting, but it does not make the investment case simple.

Ord Minnett has recently reviewed its CSL model and maintained a hold recommendation on the stock. The broker’s concern centres heavily on the Vifor nephrology business and the uncertainty around CSL’s earnings outlook as management works to reset the company.

So, is the broker right to stay cautious?

The cautious case

Ord Minnett’s concern is not hard to understand.

CSL is best known for its Behring plasma products business, but the group also includes Vifor and Seqirus. Vifor is exposed to nephrology therapies, while Seqirus operates in vaccines.

The broker believes Vifor’s challenges are being underestimated by the broader market. It has highlighted the loss of exclusivity rights for Injectefer, which is used to treat iron deficiency anaemia, as generic versions enter the US market. It also points to Velphoro, a therapy used by chronic kidney disease patients on dialysis, being removed from the US federal government’s transitional drug add-on payment adjustment program from January 2027.

Ord Minnett expects these issues to pressure pricing and has assumed a fall in Vifor revenue and profit of US$355 million in FY27.

That is not a minor concern.

The broker’s Vifor revenue and operating profit forecasts for FY27 sit below consensus estimates. It also expects Vifor operating profit across FY27 to FY29 to be more than 10% below market expectations.

That cautious view, combined with what it sees as a middling outlook for Seqirus, has led Ord Minnett to cut its CSL group earnings per share estimates for FY27 and FY28.

Why I see it differently

I understand the hold rating. CSL is dealing with genuine moving parts, and investors should not pretend the reset is already complete.

But I think the more interesting question is whether the current CSL share price is already giving patient investors a reasonable chance to be rewarded.

In my view, it is.

CSL is not just Vifor. The Behring division remains the core of the business, and Ord Minnett itself appears to see a modestly brighter outlook for this key plasma products operation.

That is important because plasma is the heart of CSL’s long-term investment case.

This is a global business with scale, specialist manufacturing capability, regulatory experience, collection infrastructure, and deep relationships across healthcare markets. Those strengths are difficult to recreate.

I also think the market’s view of CSL has changed dramatically. Investors are no longer treating it like a flawless compounder. Expectations are lower, the valuation has reset, and management has a clearer challenge: rebuild confidence through execution.

That does not need to happen quickly to make the stock attractive. It needs to happen steadily.

A patient buy

I would rate CSL shares as a buy for patient investors.

The word patient is important. Vifor’s challenges, Seqirus’ mixed outlook, margin pressure, and management’s broader reset all mean the recovery case may take time.

But I think the share price already reflects a lot of disappointment. CSL still has a globally important plasma business, exposure to healthcare demand, and the potential to improve earnings over time if management executes well.

Ord Minnett may be right to flag the risks in Vifor. I just think the hold rating is too cautious when looking at the broader business and the current valuation.

Foolish takeaway

CSL is no longer the easy blue-chip story it once seemed to be. Investors now have to weigh a high-quality global healthcare franchise against real earnings uncertainty and a business reset that still needs proof.

That tension is exactly why the opportunity exists.

I would not ignore Ord Minnett’s concerns. Vifor could remain a drag, and CSL has work to do. But for investors willing to look beyond the next couple of reporting periods, I think the balance of risk and reward now looks attractive.

CSL shares may require patience, but I think they are worth buying at current levels.

The post Is this broker right about CSL shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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.