Author: openjargon

Building a true “buy and hold” portfolio isn’t about chasing the highest yield. It’s about owning resilient ASX dividend shares that can keep paying and ideally growing dividends through cycles, downturns, and decades.

With that in mind, here are five ASX dividend shares that could form the backbone of a long-term income portfolio.

BHP Group Ltd (ASX: BHP)

BHP Group stands out as a dividend heavyweight. Backed by world-class iron ore and copper assets, this ASX dividend share generates enormous cash flow during commodity upcycles.

The company targets a payout ratio of at least 50% of earnings, which means dividends can surge when conditions are strong. The trade-off is volatility. Earnings and payouts will rise and fall with commodity prices, but over time, BHP offers powerful income upside.

APA Group (ASX: APA)

For stability, APA Group is hard to overlook. Its gas pipeline network operates under long-term contracts, delivering predictable cash flow and a consistent stream of distributions.

While higher interest rates can weigh on infrastructure stocks, APA’s reliability makes it a core income anchor for many portfolios.

Transurban Group (ASX: TCL)

Transurban Group brings a different kind of strength. It owns monopoly-like toll roads across major cities, with many tolls linked to inflation. As populations grow and traffic increases, so too does revenue.

The business carries significant debt, but its long-term concessions and essential infrastructure position it well for steady, inflation-linked income growth.

Commonwealth Bank of Australia (ASX: CBA)

No dividend portfolio feels complete without exposure to banking, and Commonwealth Bank of Australia remains the standout. It combines a dominant retail banking position with strong profitability and a long history of fully franked dividends.

While valuation can sometimes look stretched and earnings are tied to the housing cycle, CBA offers high-quality, dependable income.

Woodside Energy Group Ltd (ASX: WDS)

Rounding out the mix is Woodside Energy Group, which adds serious yield potential. As a major LNG exporter, it benefits from global energy demand and typically pays out a large portion of earnings as dividends.

That said, energy prices can be volatile, so payouts may swing. Still, it plays an important role in boosting overall portfolio income.

Foolish Takeaway

Together, these five ASX dividend shares provide exposure to multiple income drivers across resources, infrastructure, and financials. Some offer steady, defensive income, while others deliver higher but more variable payouts. That balance is what helps a portfolio navigate changing market conditions.

Over time, a mix like this could reasonably target an average yield of around 4.5% to 6%, with the added benefit of franking credits from Australian shares. More importantly, it’s the potential for dividend growth – not just yield – that can drive long-term wealth.

A “forever” portfolio doesn’t mean never reviewing your holdings. But it does mean choosing businesses you can hold with confidence. These five ASX names have the scale, assets, and cash flow to keep rewarding shareholders for years to come.

The post 5 powerhouse ASX dividend shares to buy and hold until 2050 appeared first on The Motley Fool Australia.

More reading

• Stagflation: How to position an ASX stock portfolio
• 5 things to watch on the ASX 200 on Wednesday
• What are brokers predicting for BHP shares over the next 12 months?
• 3 ASX 200 shares tipped to tumble 10% (or more) in the next 12 months
• Should you buy BHP shares ahead of the miner’s production update?

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group and Transurban Group. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session, slipping slightly into the red. The benchmark index fell slightly to 8,949.4 points.

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

ASX 200 to fall

The Australian share market looks set to fall on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 69 points or 0.75% lower. In the United States, the Dow Jones fell 0.6%, the S&P 500 dropped 0.6%, and the Nasdaq also fell 0.6%.

Oil prices rise

It looks like ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 2.5% to US$89.59 a barrel and the Brent crude oil price is up 3.5% to US$98.83 a barrel. This appears to have been driven by doubts over US-Iran peace talks.

BHP Q3 update

All eyes will be on BHP Group Ltd (ASX: BHP) shares on Wednesday when the mining giant releases its third-quarter update. According to a note out of Morgans, its analysts are forecasting WAIO shipments of 67.5Mt. This will be down 1% on the prior corresponding period and 12% quarter on quarter due to the impacts of Cyclone Narelle. The broker will also be looking out for updates on its diesel supply.

Gold price drops

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor session on Wednesday after the gold price tumbled overnight. According to CNBC, the gold futures price is down 2.2% to US$4,720.6 an ounce. A stronger US dollar and inflation concerns weighed on the precious metal. Northern Star will also be releasing its quarterly update.

Buy Hub24 shares

Bell Potter thinks investors should be buying Hub24 Ltd (ASX: HUB) shares following their 8% decline on Tuesday. This morning, the broker has retained its buy rating on the investment platform provider’s shares with a trimmed price target of $110.00 (from $120.00). It said: “Following the update we have downgraded our EPS estimates -1%/-2%/-2% with the miss dampened from mark-to-market impacts. FY27 Platform FUA guidance of $160- 170bn remains in play, with revised forecasts landing on the lower end of that range. A pickup in sentiment would likely push outcomes the other way. Acquisition of the superannuation fund trustee is also expected to have a limited influence on EBITDA line. For these reasons, we expect the multiple gap to peers can close over time.”

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

More reading

• Here are the top 10 ASX 200 shares today
• What are brokers predicting for BHP shares over the next 12 months?
• Why ANZ, Challenger, Hub24, and Lynas shares are dropping today
• 3 ASX 200 shares tipped to tumble 10% (or more) in the next 12 months
• Should you buy BHP shares ahead of the miner’s production update?

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 Hub24. The Motley Fool Australia has recommended BHP Group and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Zip Co Ltd (ASX: ZIP) shares closed in the green again when the ASX bell rang on Tuesday afternoon. 

The shares ended the day 2.8% higher, at $2.58, continuing on a huge price rally.

The latest uptick means the shares have now flown 40% higher over the past 5 days. They’re also now up a massive 71% over the past month. 

Despite the incredible rally, Zip shares are still 23% lower for the year-to-date thanks to a series of share price falls throughout the first six weeks of the year.

Why are Zip shares suddenly flying higher?

The BNPL provider posted its Q3 FY26 results ahead of the ASX open last Friday morning. The company also updated FY26 guidance figures ahead off the back of the results.

The company posted record cash EBTDA of $65.1 million, up 41.5% year-on-year. Its total transaction volume grew 22.5%, total income jumped 20.2%.

Following its strong third-quarter performance, Zip has upgraded its FY26 group cash EBTDA guidance to at least $260 million and reaffirmed all key target ranges for the year. 

US transaction volume is forecast to rise over 40% in FY26. Meanwhile group operating margins are expected to remain above 18%. The result seems to align with expectations that the company can maintain its credit quality while scaling up its operations.

Clearly investors were thrilled with the latest update. Zip shares have jumped over 25% since the announcement alone.

The good news came off the back of what seemed to be a turnaround in investor confidence in mid-March.

There wasn’t any price-sensitive news out of the Zip ahead of the results announcement to explain why the share price was flying higher earlier this month. 

The share price increase is likely due to a combination of factors, including a shift in sentiment and investors buying back into the tech stock in the dip. This has now been accelerated by a positive results announcement.

Is it too late to buy? Or is there more upside ahead?

According to TradingView data, analysts are very bullish about the outlook for Zip shares, with 11 analysts holding a consensus buy or strong buy rating.

There is more good news too. It looks like Zip shares could storm much higher this year.

The average target price is $3.83, which implies that Zip shares could fly another 49% higher over the next 12 months.

And some more are even more bullish, with a maximum price target of $5.40, which suggests 109% upside.

The post Up over 70% in a month, is it too late to buy Zip shares? appeared first on The Motley Fool Australia.

More reading

• Up another 9%, how much higher can Zip shares go?
• Why Navigator Global, St Barbara, Vulcan Energy, and Zip shares are racing higher today
• These are the 10 most shorted ASX shares
• $10,000 invested in Zip shares one month ago is now worth…
• 3 ASX 200 stocks leaping higher in this week’s slumping market

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.

A new report from Betashares has outlined the current shift taking place in the world of climate technology. 

According to the report, it has previously been framed as an innovation story built on novel solutions, venture capital funding rounds and the promise of disruption.

However, it has now moved decisively into its execution phase.

According to Vinnay Cchoda Manager – Responsible Investments at Betashares, this marks a structural shift. 

Climate technology is no longer a niche growth theme but a key constituent of the infrastructure and capital investment cycle underpinning the global economy.

What is climate technology?

Climate technology refers to the tools, systems, and processes used to reduce greenhouse gas emissions and adapt to the impacts of climate change. 

It also includes things like renewable energy (solar, wind), energy storage, electric transport, smart grids, and low-carbon industrial processes.

More broadly, it now covers the infrastructure and technologies needed to transform how energy is produced, distributed, and used.

This is along with solutions for resilience, such as water management and climate-resilient materials.

Investment and application growing

In yesterday’s report from Betashares, the ASX ETF provider said the case for climate technology has strengthened in recent times. 

The physical impacts of climate change are increasingly being felt and have material economic consequences.

The Intergovernmental Panel on Climate Change (IPCC) confirms that human-induced climate change has increased the frequency and intensity of extreme heat, heavy rainfall and drought across most regions – raising risks to infrastructure, food systems and productivity.

At the same time, the transition is increasingly underpinned by energy system economics rather than environmental policy alone. 

The International Energy Agency (IEA) estimates that global energy investment exceeded US$3 trillion in 2024, with roughly two-thirds directed towards clean energy, electrification, grids and storage.

In that context, climate technology should no longer be viewed as a discretionary or thematic allocation. It represents a structural response to tightening physical constraints and a reconfiguration of the global energy and industrial system.

How to gain exposure

For investors looking for exposure to climate tech the Betashares Capital Ltd – Betashares Climate Change Innovation ETF (ASX: ERTH) is worth considering. 

It provides exposure to a portfolio of global companies positioned to benefit from climate change mitigation and adaptation. 

Importantly, this exposure includes early-stage innovators and established companies with scale, robust balance sheets and global revenue bases.

As climate technology becomes increasingly embedded in mainstream capital expenditure and infrastructure cycles, a diversified listed exposure offers a way to participate in the transition without relying on the success of any single technology or policy outcome.

The post The compelling case for investing in this climate tech ASX ETF appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Up over 70% in a month, is it too late to buy Zip shares?
• 3 excellent Vanguard ETFs for Australian investors in 2026
• Forget Westpac shares, I’d buy these ASX dividend stocks
• 3 reasons I’d invest $5,000 in the iShares S&P 500 IVV ETF

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.

There are lots of exchange-traded funds (ETFs) available from Vanguard for Australian investors to choose from, covering everything from broad market exposure to more targeted sectors.

With so many options on offer, I think it could make sense to focus on funds that tap into major global markets and long-term growth trends, while still providing diversification.

Here are three Vanguard ETFs I think stand out for Australian investors in 2026.

Vanguard Global Technology Index ETF (ASX: VTEK)

The VTEK ETF offers Aussies a targeted way to invest in one of the most influential sectors in the global economy.

Technology continues to shape how businesses operate and how consumers interact with products and services. Areas such as artificial intelligence (AI), cloud computing, and digital platforms are still expanding, and the companies leading these trends are continuing to invest heavily.

This ETF provides exposure to around 300 global technology stocks, giving investors access to a wide range of businesses across developed and emerging markets. It is also structured with caps on individual holdings, which helps manage concentration risk.

The recent tech selloff has made valuations more attractive in this part of the market. And with long-term drivers still in place, now could be a good time to consider this ETF.

Vanguard S&P 500 ETF (ASX: V500)

The V500 ETF is one of the simplest ways for Aussies to gain exposure to the US market.

It tracks the S&P 500 index, which includes 500 of the largest listed companies in the United States. These businesses operate across sectors such as technology, healthcare, industrials, financials, and consumer goods.

What I like about this ETF is the balance it provides. It offers exposure to high-quality stocks with strong earnings power, while also spreading that exposure across a broad range of industries.

Over time, the US market has been a consistent driver of global returns, supported by innovation and scale. I believe this can continue over the long term.

For Australian investors, the Vanguard S&P 500 ETF also provides diversification away from the local market, which is more concentrated in financials and resources.

Vanguard All-World ex-US Shares Index ETF (ASX: VEU)

The VEU ETF complements US exposure by covering the rest of the world.

It includes holdings across Europe, Asia, and other regions (except the US). This creates access to economies that are growing at different rates and driven by different factors.

That diversification can be valuable over time. Different regions can perform well at different stages of the cycle, and the Vanguard All-World ex-US Shares Index ETF captures that variation across a large number of companies and industries.

It also provides exposure to emerging markets, which can add another layer of growth potential as those economies continue to develop.

Foolish takeaway

When investing in ETFs, I think it makes sense to combine exposures that can work together over time.

The VTEK ETF provides access to long-term technology trends, the V500 ETF offers broad exposure to leading US companies, and the VEU ETF adds diversification across the rest of the world.

Together, they create a simple framework that can capture growth across multiple regions and sectors, which is what I look for when investing for the long term.

The post 3 excellent Vanguard ETFs for Australian investors in 2026 appeared first on The Motley Fool Australia.

More reading

• Best and worst case scenarios this week for global equities: Expert
• Vanguard ETF dividends to be paid today
• How ASX ETF investors repositioned as the Iran war shook markets
• 5 Vanguard ETFs for Aussies to buy this month
• Why I’d buy these excellent Vanguard ETFs in April

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF. 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.

Westpac Banking Corp (ASX: WBC) shares have had a strong run, and I think that is now being reflected in its valuation.

At current levels, I don’t see a lot of upside. The dividend is still there, but the starting point looks less attractive to me than it did a year ago.

That is why I would be looking elsewhere for income right now.

Here are three ASX dividend stocks I would buy instead.

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman slipped to a 52-week low this week, which is where it starts to get interesting.

Retail has been under pressure as interest rates rise, and that has weighed on the share price. But this is a business with a long track record and a strong brand in Australia and overseas.

What I like here is the asset backing. The company owns a large property portfolio, which adds another layer to the investment case beyond retail earnings.

At this lower share price, its dividend yield is forecast to be over 8% in FY27 according to CommSec, which is why I think it is worth a closer look for income-focused investors.

Nick Scali Ltd (ASX: NCK)

Nick Scali is down close to 40% from its 52-week high, reflecting concerns over softening conditions in the furniture retail market.

Even so, the business has been through these cycles before.

It has a focused model, strong margins, and a history of managing inventory and costs well. That tends to support profitability even when conditions are softer.

With the share price well below previous levels, I think its forecast 5% dividend yield (according to CommSec) and potential for a recovery make this one stand out.

Lottery Corporation Ltd (ASX: TLC)

Lottery Corporation offers something different as an ASX dividend stock.

It hasn’t seen the same kind of pullback as the others, but it provides a steady income stream backed by a defensive business model.

Demand for lottery products tends to hold up well across different conditions, which supports consistent cash flow and dividends.

With a yield around 3%, it adds a level of stability to an income portfolio, which I think is worth having alongside more cyclical names.

Foolish takeaway

Westpac still offers income, but I think the current valuation leaves less room for upside.

These three ASX dividend stocks offer a different mix. Harvey Norman and Nick Scali bring recovery potential at lower share prices, while Lottery Corporation provides steady income backed by a more defensive model.

That balance is what I would be looking for right now.

The post Forget Westpac shares, I’d buy these ASX dividend stocks appeared first on The Motley Fool Australia.

More reading

• 3 reasons to buy Westpac shares today
• 3 ASX 200 shares tipped to tumble 10% (or more) in the next 12 months
• Would Warren Buffett buy this ASX 200 share?
• 3 ASX shares Bell Potter rates as top buys
• 6 ASX 200 shares downgraded by the experts this week

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended The Lottery Corporation. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Nick Scali 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.

When I think about long-term investing, I look for exposures that are simple, scalable, and supported by strong underlying markets.

That is why the iShares S&P 500 ETF (ASX: IVV) continues to stand out to me as a compelling option.

Here are three reasons I would consider investing $5,000 into this exchange-traded fund (ETF) today.

Access to the world’s most influential companies

The IVV ETF provides exposure to the S&P 500 Index (SP: .INX), which includes many of the largest and most influential companies in the world.

These businesses operate across technology, healthcare, finance, and consumer sectors, and they play a central role in the global economy.

This includes Apple, Nvidia, Microsoft, McDonald’s, and Tesla.

What I find compelling is how these companies continue to evolve.

They invest heavily in innovation, expand into new markets, and build platforms that reach billions of people. Over time, that can support strong earnings growth and long-term returns.

For me, the iShares S&P 500 ETF offers a way to access that group of companies in a single investment.

A history of long-term growth

The US market has delivered strong long-term returns over many decades.

That performance has been driven by a combination of innovation, productivity, and the ability of companies to scale globally.

The IVV ETF captures that dynamic.

It provides exposure to a market that continues to lead in areas such as technology, healthcare, and capital markets. That leadership can translate into ongoing growth over time.

For investors focused on the long term, I think that track record is an important part of the story.

Diversification and low-cost access

Another reason I like the IVV ETF is its diversification and low fees.

It provides exposure to 500 companies across a wide range of industries, which creates a broad and balanced portfolio within a single investment.

That diversification helps spread exposure across sectors, which means each can contribute to returns at different points in the cycle, which can support more consistent long-term outcomes.

Cost is another key part of the appeal. The iShares S&P 500 ETF comes with a very low management fee of 0.04%, which allows more of the underlying returns to stay with investors over time. Over long periods, that can make a meaningful difference to overall performance.

I think this combination of diversification and low-cost access is what makes the ETF such an efficient long-term investment.

Foolish Takeaway

The IVV ETF offers exposure to some of the most influential companies in the world, backed by a long history of growth and a simple, low-cost structure.

For me, it is an ETF that I think could form a strong foundation for long-term investing, supported by the strength and scale of the US market.

The post 3 reasons I’d invest $5,000 in the iShares S&P 500 IVV ETF appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs to build a portfolio around in 2026
• Best and worst case scenarios this week for global equities: Expert
• A 2026 market crash could be a once-in-a-decade chance to build a $1 million ASX portfolio
• How to build a $500,000 ASX share portfolio step by step
• The biggest ASX ETFs revealed – are they still buys?

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, Nvidia, Tesla, and iShares S&P 500 ETF and is short shares of Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2028 $320 calls on McDonald’s and short January 2028 $340 calls on McDonald’s. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX dividend shares are a fantastic way for Australian investors to earn a passive income, while lowering portfolio volatility.

Rather than chasing high-risk growth, the right ASX dividend share will give you an income, some relative stability, and also potential for compounding growth.

Here are two reliable, high-yield ASX dividend shares that could be a great addition to any portfolio.

GQG Partners Inc (ASX: GQG)

GQG is a global boutique asset management company focused on active equity portfolios. It offers investment advisory and portfolio management services for pension funds, sovereign funds, wealth management companies, and individual investors across three continents.

Earlier this month, GQG reported a challenging quarter due to heightened market volatility and ongoing geopolitical risk. The company reported FUM of US$162.5 billion as at 31 March 2026. This included net outflows of US$8.6 billion for the quarter.

But GQG said its defensive investment positioning, favouring companies with stable earnings and strong fundamentals, helped all major strategies outperform benchmarks.

The funds management giant has historically paid four unfranked dividends per year to its shareholders, in March, June, September and December.

Most recently, GQG paid a final unfranked dividend of US$0.0357 to investors last month. Full-year dividends declared were US$0.1469 per share, a 7.5% increase from the previous year. At the time of writing, this translates to a dividend yield of around 12%.

The company is also expected to provide shareholders with a dividend yield of around 11% in FY26 and FY27.

IPH Ltd (ASX: IPH)

IPH provides intellectual property (IP) services through a network of global brands. The group operates across ten jurisdictions in 25 countries, including Australia, New Zealand, Southeast Asia, and the US, which makes it the largest IP services provider in the Asia-Pacific region. 

Its services cover everything from patent filing and trademarks to prosecution, portfolio management, and enforcement. 

The ASX dividend company has a long history of consistently generating a strong cash flow from its operations. For example, the company reported cash conversion of 101% in its first-half FY26 results.

It is this strong cash flow that has enabled the company to be an established and reliable dividend payer. The company has also been able to increase its dividend over time.

IPH pays two partially or fully-franked dividends a year, in March and September.

IPH paid an interim partially-franked dividend of 19 cents per share last month and is expected to pay fully-franked dividends of 38 cents per share in FY26. That translates to a dividend yield of around 11% at the time of writing.

IPH is expected to increase its dividend payment to 39 cents per share in FY27. This impliesa higher dividend yield of around 12%. 

The post 2 ASX dividend shares yielding 11% or even more appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares to buy for 5.8%, 7%, and 10% yields
• 2 ASX shares downgraded by Morgans this week
• One ASX share to double, one yielding 11% — ASX picks for April
• Why this $5 billion ASX financial stock is slipping today
• GQG Partners share price in focus as Q1 FUM update reveals outflows

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 recommended Gqg Partners and IPH Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Westpac Banking Corp (ASX: WBC) shares peaked at an all-time high of $42.95 in mid February, and they’ve fluctuated ever since. 

Solid profits, dividend appeal, and cost-cutting efforts have helped push the share price higher at times. But Westpac has also suffered headwinds from ongoing global uncertainty, interest rate hikes, and inflation concerns.

After the peak, Westpac shares tumbled 9%, they then reversed and gained over 8% in the first 10 days of April. Since then, it looks like investor sentiment has turned again and the ASX bank stock has shed nearly all gains to the time of writing.

Despite broad share market uncertainty, and a rollercoaster share price, I still think there are compelling reasons for investors to add Westpac shares to their portfolio.

Here are three of them.

1. It’s a defensive ASX stock

Westpac, like many other ASX bank stocks, is considered a defensive stock because it can remain relatively stable, even when the economy slows down. The bank provides a broad range of consumer, business, and institutional banking and wealth management services like mortgages, loans, and savings accounts. Australians need these services on a daily basis regardless of what state the economy is in. What’s more, investors often rotate into defensive assets in volatile markets, which means Westpac is able to actually benefit from instability elsewhere in the index.

2. Solid earnings and good growth momentum

Because Westpac is a defensive asset which is able to create consistent revenue and predictable earnings, even in a downturn.Westpac posted its first-quarter results in February. The bank reported a 5% increase in unaudited statutory net profit and a 6% increase in net profit excluding notable items. Westpac CEO Anthony Miller said, “We are optimistic on the outlook for the economy and expect demand for both business and household credit to remain resilient.” The bank posed an update saying that geopolitical uncertainty and higher market volatility has begun to flow through to the bank’s earnings. Westpac said it expects a $75 million reduction to its NPAT in the first half of FY26. But, beyond that one-off cost, the bank confirmed that its underlying business update looks relatively steady.

3. Westpac shares pay a reliable dividend

Because of Westpac’s defensive nature and consistent earnings, it can pay an attractive dividend to its investors. Westpac typically pays dividends twice per year. The bank most recently paid a fully franked final dividend of 77 cents per share to investors in December. For FY25, the bank paid a total of $1.54 per share, which equates to a dividend yield of 3.85% at the time of writing. This is forecast to increase to $1.605 per share in FY26, and again to $1.64 per share in FY27.

The post 3 reasons to buy Westpac shares today appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares tipped to tumble 10% (or more) in the next 12 months
• 6 ASX 200 shares downgraded by the experts this week
• In the midst of economic turmoil, what does Morgan Stanley say the ASX banks are worth?
• Forget Westpac, this ASX financials share could have 30%+ upside
• ANZ, NAB, Westpac, and CBA shares: Analysts rate 3 to sell, and 1 to buy

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.

There is a moment that tends to arrive somewhere in your early 50s. 

Retirement stops feeling abstract and starts feeling real.

At 50, you are no longer a young investor with endless runway. But you are also not out of time. You are in the middle ground: close enough to see the finish line, but still with meaningful time to shape how you get there.

So the question is worth asking directly: if you are a typical 50-year-old Australian, is your super balance enough?

What does the average 50 year-old have in super?

According to data from the Association of Superannuation Funds of Australia (ASFA) and the Australian Bureau of Statistics, Australians in their early 50s typically have super balances ranging from about $180,000 to $230,000 for women and $250,000 to $300,000 for men, depending on the source and exact age bracket.

For the sake of simplicity, let us use a rough midpoint of $250,000 for a single person in their early 50s.

That is a meaningful amount of money. But it may still be well short of what is needed for a comfortable retirement.

What does a comfortable retirement cost?

ASFA defines a comfortable retirement as one that supports a good standard of living. That includes regular leisure activities, a reasonable car, private health insurance, occasional domestic travel, and the ability to handle unexpected home repairs without serious stress.

To fund that lifestyle, ASFA estimates a single person needs about $54,840 per year, while a couple needs around $77,375 combined. To support that level of spending through retirement, the suggested lump sum is roughly $630,000 for singles and $730,000 for couples.

Those figures assume you own your home outright and become eligible for a partial Age Pension from age 67.

The gap is meaningful, but not hopeless

If you have around $250,000 in super at age 50, that leaves a gap of roughly $380,000 to reach the benchmark for a comfortable retirement as a single.

That is significant. But it is not a disaster.

You may still have 15 to 17 years of working life ahead of you. Employer contributions should continue. Investment returns still have time to compound. And the decisions you make over the next decade can materially change the outcome.

The real issue is not simply being below the benchmark. It is the risk of arriving at retirement with only the minimum and no buffer.

Why aiming for the benchmark alone can be risky

Retirement benchmarks are useful, but they should be viewed as a floor, not a ceiling.

A single person retiring with exactly $630,000 may have enough on paper. But that assumes investment returns cooperate, inflation behaves, healthcare costs stay manageable, and the Age Pension remains accessible and supportive.

Life rarely lines up that neatly.

That is why there is value in building beyond the benchmark where possible. A balance of $700,000 or $750,000 may not transform your lifestyle, but it can create breathing room when markets disappoint or unexpected costs arise.

Think of it as a margin of safety. The people who retire with the most confidence are often not those who hit the number exactly. They are the ones who gave themselves some room for error.

Your 50s can be your strongest decade for super growth

This is the part many people overlook: your 50s can be one of the most powerful decades for building superannuation wealth.

Income is often near its peak. The mortgage may be shrinking or gone. And your balance is finally large enough for compounding to become meaningful in dollar terms. A 7% return on $250,000 adds $17,500 in a year before any new contributions are made.

That combination matters.

The levers that can still make a difference

At 50, there are still several meaningful ways to improve your outcome.

Concessional contributions remain one of the most tax-effective tools available. The annual cap is $30,000. If your balance is under $500,000 and you have unused cap amounts from previous years, the carry-forward rules may allow you to contribute more.

Investment allocation also matters. Many people become more conservative as retirement approaches, sometimes too early. At 50, you may still have more than a decade before needing to draw on your super, so reviewing whether your allocation still supports long-term growth can be worthwhile.

Fees are quieter, but still important. Even a small difference in annual fees can compound into tens of thousands of dollars over time.

The takeaway is simple. Having less than the retirement benchmark at 50 is not a reason to panic, but it is a reason to act. The window for meaningful progress is still open, and the decisions made now may matter more than any that came before.

The post Could you comfortably retire with the average superannuation of a 50-year-old in 2026? appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant 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.