Author: openjargon

As we pass the halfway mark of the calendar year, exploring the top-performing ASX ETFs can be a great way to assess which sectors and markets are performing well in 2026. 

Global conflict, inflation and high interest rates have dominated headlines this year. 

These have weighed on markets here in Australia. 

As a result, the S&P/ASX 200 Index (ASX: XJO) has risen just 0.4% year to date. 

However, there have been several ASX ETFs that have shaken headwinds and raced ahead of Australia’s benchmark index. 

Here are three in particular that have performed well this year. 

Global X Semiconductor ETF (ASX: SEMI)

An emerging theme this year has been the surge in semiconductor-related companies. 

A semiconductor is a material like silicon that can be precisely controlled to conduct or block electricity. This lets engineers build the tiny transistor switches that make up computer chips. 

It’s critical to the AI buildout because every bit of AI training and inference runs on these chips.

This ASX ETF has harnessed this momentum and enjoyed a rise of 66% year to date. 

The fund from Global X seeks to invest in companies that stand to potentially benefit from the broader adoption of tech-enabled devices that require semiconductors. 

Investors have been using a “picks and shovels” approach to AI, which has benefited this fund. 

During a gold rush, the safer bet isn’t panning for gold yourself, it’s selling the pickaxes to everyone who is. 

Investors are applying the same logic to AI. They are essentially moving money into companies that supply the AI buildout rather than betting on which AI application or model wins.

Global X Cybersecurity ETF (ASX: BUGG)

Another strong-performing fund this year has been this cybersecurity-focused ETF.

It seeks to invest in companies that stand to benefit from the increased adoption of cybersecurity technology, particularly those whose principal business is in the development and management of security protocols preventing intrusion and attacks on systems, networks, applications, computers, and mobile devices.

Increasing reliance on digital ecosystems has left individuals, businesses, and governments vulnerable to the exponential rise of cyber threats, and this has led to increased investment in the sector. 

This growth has led to a 21% rise for this fund year to date. 

Betashares Global Momentum ETF (ASX: GTUM)

This ASX ETF is one of the newest funds on the ASX – listing in February this year. 

In just a short span, it has made a big impact, rising 18% in that period. 

GTUM aims to track the performance of an index (before fees and expenses) comprising a portfolio of global developed markets companies (excluding Australia) with above average momentum scores, as measured by risk-adjusted returns.

The Index ranks stocks within the eligible universe based on 6 and 12-month risk adjusted returns to target more sustainable positive momentum over sharp, highly volatile run-ups. 

Stocks displaying consistently strong positive momentum over recent history are rewarded with higher weights in the index.

The post 3 of the best ASX ETFs to own right now appeared first on The Motley Fool Australia.

More reading

• Own FANG, WIRE or SEMI ETF? Global X just revealed your next dividend
• 3 high-quality ASX ETFs at 52-week highs I’d still buy

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.

CSL Ltd (ASX: CSL) shares closed around 1% higher on Thursday afternoon, at $125.53 a piece.

The increase continues the biotech company’s strong rally over the past month or so. 

The shares have now climbed around 26% over the past month, and have now rebounded 36% from a 10-year low in early June.

It’s good news for investors, but there is still some way to go before the stock recoups the huge losses it shed this year.

Even after the rebound, CSL shares are still down 27% for the year-to-date, and are 48% lower than 12 months ago.

Why are CSL shares finally rebounding?

It looks like investors have finally recognised that the ASX healthcare share reached a price point well below fair value.

After such a huge share price drop in early 2026, it looks like even nervous investors now consider that the bad news and earnings outlook downgrade is priced in. 

Momentum has picked up pace recently as bargain-hunting investors take advantage of opportunities in oversold stocks.

But can it keep going?

Can they keep climbing higher?

I think the latest increase shows that investors are now looking forward to whether management can improve operations, and if so, what CSL’s FY27 and FY28 earnings might look like.

I think there is a lot of potential too. After all, CSL is operating in a high-growth market, and its blood plasma division dominates the market for rare blood disorders and immunoglobulin products. 

Global demand for plasma therapies is strong and growing, too. There is recurring demand and limited competition, which makes CSL well-placed to carve out a significant portion of the market.

I think that once CSL is able to turn around its financials, investor confidence will follow.

Here’s what the experts tip for CSL shares

Market sentiment for CSL shares looks to have shifted slightly, and analysts are now divided about how much further they can climb.

Although they do agree there will be some element of upside ahead.

Market Index data shows most brokers (seven out of nine) have a hold rating on CSL shares. However, the $131.48 target price implies a potential 4% upside, at the time of writing.

TradingView data also shows that, of 18 analysts, 10 have a hold rating and another eight have a buy or strong buy rating on the stock. 

The average $140.15 target price implies a potential 11% upside at the time of writing. However, some analysts tip the ASX healthcare shares to fall around 17% to $104.55, while others forecast CSL shares to jump around 58% higher to $199.68, at the time of writing.

Morgans is one optimistic broker. It has a buy rating with a price target of $147.59.

The team at Macquarie is more cautious. The broker has a lower price target of $114 and a neutral stance. It cites uncertainty across CSL’s core plasma and albumin businesses, as well as ongoing competitive pressures.

The post Up 36%: Can CSL shares keep rebounding? appeared first on The Motley Fool Australia.

More reading

• 3 ASX blue-chip shares that could be strong long-term value plays
• Which ASX 200 sectors paid the highest dividend yields in FY26?
• Is CSL a fallen ASX giant to buy in July?
• The only 3 ASX blue-chip shares I’d buy and hold until 2036
• July is historically one of the best months for ASX shares. Can July FY27 deliver?

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

Superannuation can be a powerful place to build passive income for retirement.

It gives investors a long time horizon, tax advantages, and the ability to keep compounding returns over many years.

But how much super would someone actually need to generate $52,000 per year in passive income?

Let’s break it down.

$52,000 per year in passive income

A passive income target of $52,000 per year works out to $1,000 a week or around $4,333 per month.

That could be a useful amount for many retirees. It could help cover everyday living costs, bills, insurance, travel, healthcare, or simply provide more breathing room in retirement.

This would leave most Australians well-placed for a comfortable retirement.

How much superannuation is needed?

If a superannuation portfolio generated a 3% dividend yield, it would need to be worth around $1.73 million to produce $52,000 per year in passive income.

That is a large amount of money, but it is worth noting that the required balance falls as the portfolio yield rises.

A 4% yield would require a balance of around $1.3 million. A 5% yield would require approximately $1.04 million. A 6% yield would need about $867,000, while a 7% yield would require roughly $743,000.

That shows why yield makes such a big difference.

The same $52,000 income target can require a very different super balance depending on the investments selected.

Should investors chase the highest yield?

A higher yield can make the numbers look more achievable, but it can also introduce more risk.

The highest-yielding ASX shares are not always the safest income options.

Sometimes a very high dividend yield appears because the share price has fallen sharply and the market expects the dividend to be cut. In other cases, the company may be under pressure from weaker earnings, rising debt, lower commodity prices, or a cyclical downturn.

A better approach is to look for income that can be sustained. That means focusing on companies with reliable cash flow, sensible payout ratios, strong balance sheets, and businesses that can continue operating through different economic conditions.

A portfolio built only around maximum yield can become fragile. But a portfolio built around quality income has a better chance of lasting.

What could a passive income portfolio include?

ASX shares can be useful inside superannuation because many pay dividends and some come with franking credits.

Large banks, infrastructure shares, property trusts, telecommunications companies, retailers, and listed investment companies can all play a role.

Examples could include income-focused blue chips such as Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS), or Wesfarmers Ltd (ASX: WES).

Investors looking for property or infrastructure-style income might consider names such as Charter Hall Long WALE REIT (ASX: CLW), APA Group (ASX: APA), or Transurban Group (ASX: TCL).

Listed investment companies and dividend-focused ETFs can also help spread income across a wider range of holdings.

Foolish takeaway

A $52,000 annual passive income stream from superannuation is possible, but it generally requires a sizeable portfolio.

The rough balance needed could range from about $743,000 at a 7% yield to $1.73 million at a 3% yield.

Most investors may prefer to sit somewhere in the middle, balancing income with quality, diversification, and long-term capital preservation.

But it is always worth remembering that the goal is not just to reach $52,000 in one year. It is to build an income stream that can keep supporting retirement for many years to come.

The post How much do I need in my superannuation to get $52,000 per year in passive income? appeared first on The Motley Fool Australia.

More reading

• Which ASX 200 sectors paid the highest dividend yields in FY26?
• Wesfarmers shares are closing in on record highs. Buy, hold or sell?
• Dump ’em! Morgan Stanley slaps sell ratings on 5 ASX 200 shares
• 9 ASX 200 shares downgraded by analysts this week
• How to build $60,000 in annual passive income from ASX dividend shares

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

US stocks operate on a different fiscal year cycle from S&P/ASX 200 Index (ASX: XJO) shares.

However, as so many of us are invested in both markets, it’s relevant to compare their performance over a given period.

So, let’s canvas what happened in the Australian financial year (FY26) from 1 July 2025 to 30 June 2026.

Let’s compare…

S&P/ASX 200 Index (ASX: XJO) shares increased 2.77% and delivered total returns, including dividends, of 7% in FY26. 

The S&P/ASX All Ords Index (ASX: XAO) rose 2.43% and provided total returns of 5.69%, according to S&P Global data.

By comparison, the S&P 500 Index (SP: INX) rose by 20.86% and delivered total returns of 22.32%.

The Nasdaq Composite Index (NASDAQ: .IXIC) ascended 28.69% and gave a total return of 30.55%.

The Dow Jones Industrial Average (DJX: .DJI) rose 18.65% and delivered a total return of 20.65%.

Why did US stocks outperform ASX 200 shares?

Drew Meredith from Wattle Partners says it comes down to America’s leading position in the artificial intelligence (AI) revolution.

In an article in The Golden Times, Meredith explained:

The United States market is being driven by a small number of companies with outsized earnings power, almost all tied to artificial intelligence infrastructure.

Nvidia, Microsoft, Alphabet, Meta, and Amazon have delivered earnings growth that justifies, at least in part, the premium valuations US indices now carry.

Meanwhile, ASX 200 shares struggled to grow in FY26 amid resurgent inflation, three interest rate hikes in February, March, and May (reversing the impact of one cut in August), the energy crisis, and weak consumer confidence.

On top of that, fears of an AI bubble and a SaaSpocalypse weighed on our tech sector, which dove 37% in FY26.

ASX 200 healthcare shares also tumbled 37% amid many industry challenges, including a weaker US currency impacting global players.

Meredith says the Federal Budget’s CGT reform package, announced in May, has also weighed on financial shares and property, too.

Can the US markets keep delivering?

Shaun Manuell, Chief Investment Officer (CIO) at AustralianSuper, isn’t ready to call the top of the US stock market yet.

In the Weekend Australian, Manuell described US equities being in the “rational exuberance phase”.

He said:

The retail investor is back in the US, and I think there’s a lot of weight behind that.

When the US equity market gets going it’s a very, very powerful engine. So, I wouldn’t be calling the top of that just yet.

As for ASX 200 shares, Manuell is not optimistic for FY27.

It’ll be another challenging year; you’re going to have to be really careful in the sectors.

We know consumer sentiment’s down, house prices are down, and that leads through to the wealth effect as well.

Manuell said AusSuper is “slightly overweight” US stocks, and underweight ASX shares compared to global stocks.

He likes ASX 200 mining shares but is underweight bank stocks.

Should you buy US stocks?

Meredith warns against ‘recency bias’ and any temptation investors may feel to switch out of ASX 200 shares in order to buy US stocks.

Meredith explains:

When one market dramatically outperforms another for two or three years, investors feel they were wrong to be diversified. That feeling is not evidence. It is recency bias.

The periods of sharpest US outperformance relative to global peers have consistently been followed by periods of mean reversion.

This happened after the dot-com peak in 2000. It happened in the early years after the GFC when US banks were recovering and Australian miners were printing money.

It does not happen on a schedule you can predict, which is precisely why systematic diversification matters more than tactical shifts.

Manuell says his team is eyeing off a recent pullback in the Magnificent Seven US stocks as a potential buying opportunity.

He also said he is more comfortable investing in the “picks and shovels” of the AI revolution, commenting:

Everyone’s been playing the picks and shovels because they can see there’s money to be made but this is just making the infrastructure.

Once we’ve got the infrastructure, what’s going to happen? Nobody knows…

3-year snapshot of ASX 200 shares vs. US stocks

Total returns	FY24	FY25	FY26
ASX 200	11.44%	13.81%	7%
ASX All Ords	11.44%	13.23%	5.69%
S&P 500	25.02%	15.16%	22.32%

The post ASX 200 shares vs. US stocks in FY26 appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Is the ASX 200 heading for a third straight fall as oil prices jump?
• Steadfast Group extends exclusivity on $6.00 per share takeover offer
• Fletcher Building lifts FY26 profit guidance as quarterly volumes rise

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia has recommended Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and finished lower. The benchmark index fell 0.25% to 8,762.5 points.

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

ASX 200 expected to rise

The Australian share market looks set to rise on Friday following a good night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 8 points or 0.1% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.25%, the S&P 500 is up 0.75%, and the Nasdaq is 1.25% higher.

Oil prices slide

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 1.85% to US$72.15 a barrel and the Brent crude oil price is down 2.1% to US$76.42 a barrel. This has been driven by a de-escalation in US-Iran tensions.

Hold Jumbo shares

Bell Potter thinks Jumbo Interactive Ltd (ASX: JIN) shares are fully valued following a strong gain on Thursday. This morning, the broker has retained its hold rating with an improved price target of $7.20. In response to the release of a trading update, Bell Potter said: “Although we are encouraged with the improvement in Dream US and Stride, we continue to see risks to market share as TLC’s offering improves and as new players play lotteries. We await evidence of positive market share data during periods of strong Powerball jackpots before we turn more positive on the stock. Additional risks include SaaS AI disruption and TLC reseller renewal risk.”

Gold price rises

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a decent finish to the week after the gold price pushed higher overnight. According to CNBC, the gold futures price is up 1.25% to US$4,133.9 an ounce. A pullback in oil prices has reduced inflation and interest-rate hike fears.

Accumulate Netwealth shares

Morgans sees value in Netwealth Group Ltd (ASX: NWL) shares at current levels. In response to a deal with Morgan Stanley Wealth Management, the broker has reiterated its accumulate rating with a $27.50 price target. It commented: “NWL’s recent win with Morgan Stanley Wealth Management represents strong early validation of NWL’s iHIN offering and expansion into the broker segment of the market, which represents a net-flows tailwind into FY27-FY30. We see NWL’s incremental investment into FY27 as a doubling down on its strategy to drive further long-term scale benefits.”

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

More reading

• Here are the top 10 ASX 200 shares today
• 7 ASX shares catching broker upgrades this week
• Is the ASX 200 heading for a third straight fall as oil prices jump?
• 9 ASX 200 shares downgraded by analysts this week
• Steadfast Group extends exclusivity on $6.00 per share takeover offer

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

It was yet another negative session for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Thursday, the fourth red session for the Australian markets in a row this week.

After opening sharply lower at the start of morning trading, the ASX 200 did recover a little over the day. But it wasn’t nearly enough to save investors from a loss. By the time trading finished, the index had lost 0.26% and closed at 8,762.5 points.

This depressing Thursday for the local markets came after a mixed night over on the US markets.

The Dow Jones Industrial Average Index (DJX: .DJI) wasn’t in a good place, dropping 1.09%.

However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared far better, rising 0.2%.

Let’s get back to the local markets now and check out how today’s tough trading conditions have percolated down into the various ASX sectors.

Winners and losers

Despite the market’s bad mood this Thursday, there were plenty of sectors that were spared from a sell-down.

But first, it was mining stocks that got slammed the hardest today. The S&P/ASX 200 Materials Index (ASX: XMJ) ended up crashing 1.48% lower.

Gold shares had another rough one too, with the All Ordinaries Gold Index (ASX: XGD) tumbling 1.24%.

We can say the same for real estate investment trusts (REITs). The S&P/ASX 200 A-REIT Index (ASX: XPJ) sank 1.1% by the closing bell.

Financial stocks were a little better, though, as illustrated by the S&P/ASX 200 Financials Index (ASX: XFJ)’s 0.15% slip.

Turning to the green sectors now, energy shares had a blowout. The S&P/ASX 200 Energy Index (ASX: XEJ) ended up surging 1.67% higher.

Utilities stocks also ran hot, with the S&P/ASX 200 Utilities Index (ASX: XUJ) soaring 1.28%.

Consumer staples shares were solid. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) galloped 0.97% higher this session.

Tech stocks were in demand too, as you can see by the S&P/ASX 200 Information Technology Index (ASX: XIJ)’s 0.92% bounce.

Communications shares fared decently. The S&P/ASX 200 Communication Services Index (ASX: XTJ) added 0.89% to its total today.

As did consumer discretionary stocks, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) advancing 0.58%.

Healthcare shares stayed afloat. The S&P/ASX 200 Healthcare Index (ASX: XHJ) lifted 0.13% this Thursday.

Finally, industrial stocks got over the line, evident from the S&P/ASX 200 Industrials Index (ASX: XNJ)’s 0.12% bump.

Top 10 ASX 200 shares countdown

Today’s top stock was building supplies company Fletcher Building Ltd (ASX: FBU). Fletcher shares rocketed 7.55% this session to $2.99 each.

This followed the stock releasing some updated earnings guidance, which investors clearly appreciated.

Here’s how the other winners pulled up at the kerb: 

ASX-listed company	Share price	Price change
Fletcher Building Ltd (ASX: FBU)	$2.99	7.55%
Megaport Ltd (ASX: MP1)	$20.14	5.56%
New Hope Corporation Ltd (ASX: NHC)	$5.22	5.45%
Infratil Ltd (ASX: IFT)	$12.90	4.12%
Mesoblast Ltd (ASX: MSB)	$2.10	3.96%
Tuas Ltd (ASX: TUA)	$2.29	3.62%
Codan Ltd (ASX: CDA)	$44.49	3.47%
SRG Global Ltd (ASX: SRG)	$3.61	2.56%
Sigma Healthcare Ltd (ASX: SIG)	$2.87	2.50%
Lovisa Holdings Ltd (ASX: LOV)	$23.20	2.47%

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

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

More reading

• Which ASX 200 sectors paid the highest dividend yields in FY26?
• Is the ASX 200 heading for a third straight fall as oil prices jump?
• 3 ASX 200 shares with 50% to 100% upside in FY27
• Why are Fletcher Building shares flying 7% higher today?
• Steadfast Group extends exclusivity on $6.00 per share takeover offer

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

The S&P/ASX 200 Index (ASX: XJO) delivered investors a total return of 7% last financial year.

That return was comprised of 2.77% capital growth and a 4.23% average dividend yield.

That’s an improvement on last year’s payout.

In FY25, dividends made up 3.84% of the total 13.81% return.

That was well below the long-term average of about 4.5%.

This last financial year, the market moved closer to the norm.

What pushed dividend yields higher last year?

The increase partly reflects higher earnings among resources companies due to rising commodity prices.

This contributed to an outstanding performance in the ASX 200 materials sector, which lead the 11 market sectors last year.

Materials stocks soared 47.48% and paid a healthy above-average dividend yield of 4.63%.

The energy sector paid an even higher dividend yield at 5.14% in FY26.

But neither paid the best dividend yield of the 11 market sectors.

That title belongs to a much more defensive segment.

Experts say capital gains tax (CGT) changes may prompt investors to seek better yield.

If that rings true for you, the following list will give you a general guide as to which sectors pay best.

Let’s take a look at the dividend yields of each of the 11 market sectors in FY26.

Which ASX sectors delivered the best dividend yields?

The sectors are listed in order of highest dividend yield for FY26.

Utilities

The total return for the S&P/ASX 200 Utilities Index (ASX: XUJ) last year was 11.87%.

Dividends made up 5.98% of that total return.

Energy infrastructure company APA Group (ASX: APA) was the sector’s best performer for growth.

APA Group shares rose 24%, and are currently trading on a trailing dividend yield of 5.84%.

Energy

The total return for the S&P/ASX 200 Energy Index (ASX: XEJ) was 14.51%.

Dividends represented 5.14% of that return.

ASX 200 coal  producer New Hope Corporation Ltd (ASX: NHC) had the strongest share price growth at 44%.

New Hope Corporation shares have a trailing dividend yield of 4.78%.

Materials

The total return for the S&P/ASX 200 Materials Index (ASX: XMJ) was 52.11% in FY26. 

Dividends made up 4.63% of that return.

The best performer was gold explorer, Minerals 260 Ltd (ASX: MI6), which rocketed 508% in FY26.

Minerals 260 does not pay dividends.

The largest company in the materials sector is BHP Group Ltd (ASX: BHP), which has a trailing yield of 3.47%.

Consumer Staples

The total return for the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) was 13.72%. 

Dividends represented 3.63% of that return.

Woolworths Group Ltd (ASX: WOW) was the top-performing consumer staples share, rising 29%.

Woolworths shares have a trailing yield of 2.24%.

Financials

The total return for the S&P/ASX 200 Financials Index (ASX: XFJ) was 1.69%. 

The index lost 1.89% of its market cap last year, but dividends of 3.58% brought the sector into the green.

New Zealand-based infrastructure investment company, Infratil Ltd (ASX: IFT) was the fastest riser, lifting 29%.

Infratil shares have a trailing dividend yield of 1.22%.

Industrials

The total return for the S&P/ASX 200 Industrials Index (ASX: XNJ) was 5.24%.

Dividends made up 3.55% of that return.

Electro Optic Systems Holdings Ltd (ASX: EOS) shares were the fastest risers, rocketing 261%.

Electro Optic Systems does not pay dividends.

The biggest company in the sector is Transurban Group (ASX: TCL), which has a trailing yield of 4.68%.

Real estate & REITs

The total return for the S&P/ASX 200 Real Estate Index (ASX: XPJ) was a negative 2.24%.

The index dropped 5.32% in FY26, but an average dividend yield of 3.08% mitigated the capital loss.

Property fund manager Charter Hall Group (ASX: CHC) outperformed with capital growth of 19%.

The ASX 200 real estate investment trust (REIT) has a trailing dividend yield of 2.3%.

Communications

The total return for the S&P/ASX 200 Communications Index (ASX: XTJ) was a negative 9.41%.

The sector lost 12.4% of its value, but an average dividend yield of 2.99% partially offset the loss.

Aussie Broadband Ltd (ASX: ABB) shares rose the most, lifting 26%.

Aussie Broadband has a trailing dividend yield of 1.03%.

Consumer discretionary

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) produced a negative total return of 1.21%.

The index fell 3.56%, but an average dividend yield of 2.35% reduced the impact.

The Eagers Automotive Ltd (ASX: APE) share price experienced the most growth, rising 22%.

Eagers Automotive shares have a trailing dividend yield of 3.43%.

Healthcare

The total return for the S&P/ASX 200 Health Care Index (ASX: XHJ) was a negative 36.15%.

The healthcare index fell 37.4%, and an average dividend yield of 1.25% did little to buoy investors’ spirits.

4DMedical Ltd (ASX: 4DX) was the outperformer, with its share price skyrocketing 1,786%.

4DMedical does not pay dividends.

The largest company in the sector is CSL Ltd (ASX: CSL), which has a trailing dividend yield of 3.38%.

The healthcare sector is experiencing an extraordinary bounce back, with value investors returning just last month.

Since the pivot point on 3 June, the healthcare index has soared 23%.

Technology

The total return for the S&P/ASX 200 Information Technology Index (ASX: XIJ) was a negative 36.97%.

The index lost 37.22% of its value, and a tiny average dividend yield of 0.25% was barely noticeable to investors.

The Aussie tech sector is comprised predominately of younger growth companies, and not many pay dividends yet.

ASX 200 tech shares tanked in FY26, with only four shares experiencing capital growth.

The stand-out was Codan Ltd (ASX: CDA) shares, which rocketed 119%.

Codan shares have a trailing dividend yield of 0.8%.

Technology is also on the rebound after bottoming out on 30 March.

The post Which ASX 200 sectors paid the highest dividend yields in FY26? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband, CSL, Electro Optic Systems, and Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group and Transurban Group. The Motley Fool Australia has recommended Aussie Broadband, BHP Group, CSL, and Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares are 0.5% lower at 8.744 points on Thursday.

Meanwhile, brokers have increased their ratings on several ASX shares this week.

Let’s take a look.

Santos Ltd (ASX: STO)

The Santos share price is $7.64, up 1.8% today.

This ASX 200 energy share has fallen 1% over 12 months.

Morgan Stanley upgraded Santos shares to a buy rating this week.

The broker raised its 12-month price target from $7.50 to $7.67.

This suggests the stock is fully priced already.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is $29.42, up 1.9% today.

Stock in the market’s largest oil and gas producer has risen 23% over 12 months.

Morgan Stanley upgraded Woodside shares to a hold rating on Monday.

The broker has a target price of $28, suggesting a 5% downside ahead.

IGO Ltd (ASX: IGO)

The IGO share price is $6.73, down 3.2% today.

This ASX 200 mining share was among the top 5 lithium stocks for capital growth over FY26.

The IGO share price ascended 77% to close out the year at $7.37 on 30 June.

Morgan Stanley upgraded IGO to a hold rating this week.

The broker raised its 12-month target from $6.85 to $6.95.

This suggests a potential 2% upside ahead.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is $23.46, down 0.2% today.

This ASX 200 financial share has tumbled 33% over 12 months.

Ord Minnett upgraded Netwealth shares to a buy rating yesterday.

The broker increased its 12-month target from $25 to $26.

This suggests a potential 10% upside ahead.

HomeCo Daily Needs Ltd (ASX: HDN)

The HomeCo Daily Needs REIT share price is $1.27, up 0.2% today.

This ASX real estate investment trust (REIT) has risen 2.2% over 12 months.

Morgans upgraded the ASX REIT to a buy rating with a $1.36 target on Wednesday.

This implies potential capital growth of 7% over the next year.

Waypoint REIT (ASX: WPR)

The Waypoint REIT share price is $2.42, down 0.2% today.

This ASX real estate share has fallen 1% over 12 months.

Morgans upgraded Waypoint REIT shares to a buy with a $2.50 target yesterday.

This implies a potential 3% upside ahead.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire Resources share price is $17.98, down 1.6% today.

This ASX 200 copper share has rocketed 61% over 12 months amid a rising copper price.

Morgan Stanley upgraded Sandfire shares to a hold rating this week.

The broker increased its 12-month price target from $16 to $17.35.

This suggests a potential 4% downside ahead.

The post 7 ASX shares catching broker upgrades this week appeared first on The Motley Fool Australia.

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Wesfarmers Ltd (ASX: WES) shares continue to flex their muscles.

The retail heavyweight gained a modest 0.3% to $90.48 during Thursday afternoon trade, but don’t let that fool you. The stock is still edging closer to its all-time high of around $95.

It’s been a cracking run. Wesfarmers shares have climbed roughly 12% over the past month and are now up 11% in 2026. That’s comfortably ahead of the S&P/ASX 200 Index (ASX: XJO), which has gained around 1% over the past month and is barely positive for the year.

The obvious question now is whether the market has got carried away, or whether Wesfarmers still has room to climb.

Why are Wesfarmers shares rallying?

A few things have fallen into place for Wesfarmers shares. For starters, Australian consumers have proved tougher than many expected. Household spending rose 1.3% last month, comfortably beating forecasts and easing fears that higher living costs were crushing retail demand.

Interest rate expectations have also helped. Markets increasingly expect the Reserve Bank of Australia to keep rates on hold at its next meeting, reducing concerns that households could face another squeeze from higher mortgage repayments.

That’s been music to the ears of retail investors.

Retail royalty

Wesfarmers isn’t just another retailer. It owns some of Australia’s best-known brands, including Bunnings, Kmart Australia, and Officeworks.

Bunnings remains the undisputed king of home improvement, while Kmart has quietly become one of the country’s most successful discount retailers. Both businesses thrive by offering value, scale, and convenience.

Ironically, if consumer spending does soften during FY27, Wesfarmers shares could actually benefit as shoppers trade down and hunt for bargains.

Being the low-cost leader isn’t a bad place to be.

There’s more than retail under the bonnet

Wesfarmers also continues to find new ways to grow. Its Anko expansion is gathering momentum, with stores opening across the Philippines and more planned before the end of FY27.

Meanwhile, Bunnings keeps moving into new product categories, including pet supplies and automotive accessories. Kmart is experimenting with larger K Home stores, potentially opening another growth avenue beyond its traditional discount retail business.

The company also maintains exposure to lithium through its mining interests, giving shareholders another potential long-term earnings driver if battery materials regain momentum.

The secret sauce

One reason Wesfarmers shares command such a premium valuation is simple: the company generates outstanding returns. During the first half of FY26, Bunnings produced a return on capital approaching 71%, while Kmart wasn’t far behind at almost 70%.

Across the broader business, return on equity reached 32.7%.

Those are elite numbers. Very few mature ASX companies consistently generate that level of profitability while continuing to reinvest for future growth.

What do brokers think?

Here’s where things get interesting.

According to TradingView data, analysts are far less enthusiastic than the market.

Of the 14 brokers covering Wesfarmers shares, seven recommend holding the shares, six rate them as either a sell or strong sell, and only one has a buy recommendation.

The average 12-month price target sits at $76.91, implying a downside of around 15% from current levels.

Even the most optimistic analyst doesn’t expect the shares to move meaningfully above today’s price, while the most bearish forecast suggests downside of roughly 28%.

Foolish takeaway

After a stellar run, investors appear willing to pay almost any price for Wesfarmers’ strengths. Brokers, however, aren’t so convinced.

For long-term shareholders, Wesfarmers shares still look like they’re worth owning. New investors may simply need to decide whether they’re comfortable paying a premium for one of the ASX’s best operators.

The post Wesfarmers shares are closing in on record highs. Buy, hold or sell? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday

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

The S&P/ASX 200 Index (ASX: XJO) is back in the red on Thursday as investors react to another jump in oil prices.

At the time of writing, the ASX 200 is down 0.53% to 8,738 points.

The move has the benchmark index on track for its third straight decline, with weakness across the big miners and banks weighing on the market.

At the latest check, 113 stocks are lower, 80 are higher, and 7 are unchanged.

Here’s a closer look at today’s fall.

Oil is back on the agenda

Oil prices are giving investors something else to worry about today.

According to Trading Economics, Brent crude rose to around US$78.80 a barrel after fresh US strikes on Iran, while WTI crude was trading near US$74.26 a barrel.

The move is helping parts of the energy sector, but it is not doing much for the broader mood across the ASX 200.

With inflation, rates, and global growth already weighing on the market, higher oil prices have only added to the pressure.

Miners and banks weigh on the market

Most of the damage is coming from the big miners and banks.

BHP Group Ltd (ASX: BHP) shares are down 1.93% to $56.40, while Rio Tinto Ltd (ASX: RIO) has fallen 3.98% to $157.33.

The major banks are also softer.

Commonwealth Bank of Australia (ASX: CBA) shares are down 0.42% to $167.47, National Australia Bank Ltd (ASX: NAB) has slipped 1.21% to $39.11, and ANZ Group Holdings Ltd (ASX: ANZ) is 1.23% lower at $35.43.

Westpac Banking Corp (ASX: WBC) is holding up better, edging 0.06% lower to $36.23.

Energy and defensives offer support

There is still some support around, which is stopping the ASX 200 from falling further.

Woodside Energy Group Ltd (ASX: WDS) shares are up 1.8% to $29.39, while Santos Ltd (ASX: STO) has added 1.67% to $7.625.

CSL Ltd (ASX: CSL) is also doing some work, rising 1.86% to $126.61.

The supermarkets are helping as well. Woolworths Group Ltd (ASX: WOW) shares are up 0.46% to $40.085, while Coles Group Ltd (ASX: COL) has lifted 0.96% to $23.635.

But even with those gains, the ASX 200 is still struggling to get back on the front foot.

Can the ASX 200 recover today?

The ASX 200 still has time to recover, but it needs more help from the usual heavyweights.

Energy stocks and defensives are doing their bit, but the weakness in miners and banks is making it hard for the index to turn positive.

A lot may depend on whether BHP, Rio Tinto, and the major banks can steady into the afternoon session.

If they do, the ASX 200 could claw back some of today’s losses.

The post Is the ASX 200 heading for a third straight fall as oil prices jump? appeared first on The Motley Fool Australia.

More reading

• Steadfast Group extends exclusivity on $6.00 per share takeover offer
• Fletcher Building lifts FY26 profit guidance as quarterly volumes rise
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Why the ASX 200 is sliding towards a 4-week low today

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