Author: openjargon

Life360 Inc (ASX: 360) shares have fallen further into the red in Wednesday lunchtime trade.

At the time of writing, the shares are down around 1.5% and are changing hands for $20.67 a piece.

The latest decline means the shares are now down 36% year-to-date, and are 56% lower than 12 months ago.

What happened to Life360 shares?

The company’s shares were caught up in a tech-sector-wide sell-off over the past year, as investors sold their tech shares amid growing fears that companies’ core services could be replaced by AI.  

The rotation away from the tech sector saw the Life360 share price steadily tumble from an all-time high of $55.44 in early October, to an annual low of $17.91 in mid-April.

But it looked like the shares had bottomed out, and they rallied through June to early August on the back of a strong quarterly result in mid-May and renewed investor confidence.

But then the company posted an unimpressive second-quarter FY26 update two weeks ago, and it once again slashed investor sentiment.

Life360 recorded a 38% increase in revenue, to US$159 million, and a 53% increase in adjusted EBITDA, to US$31.1 million.

Global monthly active users increased by 4.6 million in the quarter, bringing the total to approximately 102.4 million – up 16% compared to the previous year.

Looking ahead, Life360 still expects FY26 revenue growth to accelerate between 33% to 40% year-on-year to between US$650 million and US$685 million. Adjusted EBITDA is also still expected to be between US$130 million to US$140 million.

Clearly, investors are displeased with the result. It appears that many shareholders expected another upward revision to FY26 revenue guidance.

Since that results announcement, Life360 shares have shed 30% of their value.

What do brokers tip for the shares next?

It looks like the experts are still bullish on Life360 shares, expecting a recovery over the next 12 months.

Market Index shows that brokers currently agree to a buy rating on the shares. The $31.73 average target price implies a potential 54% upside, at the time of writing.

TradingView data shows something similar. Out of 13 analysts, 12 currently hold a buy/strong buy rating on Life360 shares. The average target price is $31.21, implying around a 51% upside at the time of writing. However, some think the shares could climb 97% to $40.76 a share over the next 12 months.

Bell Potter recently confirmed its buy rating and $34 price target on the location technology company’s shares. Ahead of the results and share price crash, the broker said it thinks the stock is trading at reasonable value.

The post Down 56%: Has the market lost interest in Life360 shares? appeared first on The Motley Fool Australia.

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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 Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Australia’s inflation rate fell again in July, although the latest figures came in slightly above economists’ expectations.

New data from the Australian Bureau of Statistics (ABS) shows the Consumer Price Index (CPI) rose 3.5% over the 12 months to July, down from 3.8% in June.

The annual rate is still moving in the right direction, although economists had been expecting inflation to come in at around 3.3%.

Prices also rose 1% during July, above forecasts for a 0.8% increase, while underlying inflation remained elevated.

So, is another interest rate hike back on the table?

What is still pushing prices higher?

Housing remained the biggest contributor to annual inflation, with prices across the group rising 5% over the year.

New dwelling prices increased 5.7%, rents were up 3.6%, and electricity prices rose 6.1%. Food and non-alcoholic beverages were also 3.2% higher, while recreation and culture prices increased 2.6%.

There were also some sizeable price moves during July.

Automotive fuel prices jumped 7.5% for the month after falling for 3 months in a row. The ABS said the increase was driven by higher global oil prices and the partial unwinding of the federal government’s fuel excise relief measures.

Domestic holiday travel and accommodation prices also rose 6.2% as demand picked up during the school holiday period.

The RBA will be keeping a close eye on the underlying inflation figures as well.

Services inflation was still running at 3.7% over the year, while non-tradables inflation was sitting at 4.4%.

Could the RBA raise rates again?

The key number for the RBA was trimmed mean inflation, which gives a better idea of what is happening with underlying price pressures.

It rose 0.5% in July and remained at 3.6% over the year, still above the RBA’s 2% to 3% target range.

That was also higher than expected, with economists forecasting a monthly increase of around 0.3%.

The RBA left the cash rate unchanged at 4.35% earlier this month after raising rates 3 times in 2026.

Minutes from that meeting showed the board considered another rate hike, but decided to keep rates on hold and wait for more data.

There are signs higher rates are already having an effect. Australia’s unemployment rate rose to 4.5% in July, while employment unexpectedly fell by 15,800.

This gives the RBA something else to weigh up as it tries to bring inflation down without slowing the economy too much.

Mark your calendar for 29 September, when the RBA will hand down its next interest rate decision.

The post Inflation falls again, but could the RBA still raise interest rates? appeared first on The Motley Fool Australia.

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• ASX 200 closes in on record territory as BHP and Woolworths surge
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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 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.

The Betashares Nasdaq 100 ETF (ASX: NDQ) is an ASX exchange-traded fund (ETF) I would be comfortable buying with a long-term view.

It gives investors access to many of the businesses shaping how technology is used around the world, without requiring them to decide which individual company will ultimately come out on top.

Here are three reasons I would buy it now.

It gives me exposure to businesses changing how the world operates

One reason I like the NDQ ETF is that many of its largest holdings sit behind technologies that are becoming increasingly important to consumers and businesses.

Nvidia, for example, has become central to the build-out of artificial intelligence (AI) infrastructure through its advanced chips.

Microsoft approaches the opportunity from another direction. Its cloud computing and software businesses give it the chance to bring AI tools directly into products already used by companies around the world.

Then there are businesses such as Amazon, where cloud computing, ecommerce, advertising, and automation all provide potential avenues for further growth.

These businesses are helping build the infrastructure, software, and services that could shape how we work, shop, communicate, and process information for many years.

I don’t have to pick the biggest winner

Artificial intelligence is a good example of why I like the broad exposure provided by the NDQ ETF.

There are several places where value could ultimately be created.

Chipmakers may benefit from the initial infrastructure spending; cloud providers can supply computing power; software companies can develop applications for businesses; and consumer platforms may find entirely new ways to use the technology.

The balance between those opportunities could shift considerably over the next decade.

Owning the NDQ ETF lets me participate across that broader development rather than trying to predict today which company will capture the largest share of the profits.

The same thinking applies beyond AI.

Technology changes quickly, and I would rather own a collection of leading businesses than depend too heavily on my ability to identify the next major trend before everyone else does.

The fund can evolve without me doing anything

The way the index can evolve is probably one of the strongest reasons I could imagine holding the NDQ ETF for many years.

The NASDAQ-100 Index (NASDAQ: NDX) will not contain the same companies forever. Businesses that grow can become more important within the index, while others can lose influence or eventually be replaced.

That means the fund can gradually change as the corporate landscape changes.

I think this is especially valuable over a timeframe of 10, 20, or even 30 years. It would be unrealistic to expect today’s largest companies to remain in the same positions indefinitely.

Some will keep compounding. Others will eventually be overtaken by businesses that may still be relatively small today.

With the NDQ ETF, investors can participate in that evolution without continually rebuilding the portfolio themselves.

Foolish takeaway

I think the NDQ ETF gives ASX investors a simple way to own a collection of businesses positioned around some of the world’s most important long-term growth trends.

There will be periods when technology shares struggle, and the fund’s concentration in large growth companies means volatility should be expected.

But I like the idea of owning an investment that can keep evolving as new corporate leaders emerge.

The post 3 reasons I’d buy the NDQ ETF now appeared first on The Motley Fool Australia.

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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 Amazon, BetaShares Nasdaq 100 ETF, Microsoft, and Nvidia. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Westgold Resources Ltd (ASX: WGX) has more than doubled in value over the past year, but according to the team at UBS, there’s more upside to be had.

This week, the broker issued a new research report on Westgold, after the company put out an update on its Meekatharra expansion plan.

Before we get to the UBS valuation of the company, let’s have a look at what Westgold announced.

Processing expansion numbers stack up

Westgold released the results of a scoping study examining the expansion of capacity at the Meekatharra processing hub from 1.8 million tonnes per year to 2.9 million tonnes per year.

The company said regarding the plans:

The Meekatharra expansion plan is being advanced as a low-capital-intensity, brownfields expansion option that leverages Westgold’s existing Meekatharra infrastructure and long-lead equipment already procured. The preferred pathway is intended to remove an emerging processing constraint and create a larger, more flexible platform for the Murchison ore base, without the cost, risk or timeframe of constructing a new standalone processing plant.  

The expansion plan would add 47,000 ounces of gold production per year once commissioned, with total gold production to rise to 1.6 million ounces over 10 years.

Westgold said the project would cost about $100 million and have a payback period of nine months, with commissioning targeted for FY28.

Westgold Managing Director Wayne Bramwell said:

Meekatharra is the growth engine of Westgold’s Murchison business. As Bluebird–South Junction continues to expand and the Murchison open pit program ramps up, the hub is increasingly moving from being mine-constrained to processing-constrained. The MXP is a capital-efficient brownfields expansion option to address this emerging constraint. It utilises existing infrastructure and long-lead equipment already procured to increase processing capacity from 1.8Mtpa to 2.9Mtpa, without the capital intensity, execution risk or timeframe of building a new plant. Westgold will now commence feasibility-level work to confirm the engineering, capital estimate, delivery schedule and ore source assumptions ahead of a potential investment decision in late FY27.

ASX gold stock looking cheap

UBS said in a note to clients that Westgold could potentially increase gold production to 650,000 ounces per year by 2030, as a result of three separate expansion projects.

The UBS analysts said they visited Meekatharra in July and “could see numerous options for new mining fronts and potential for higher throughput”.

UBS has increased its price target on Westgold shares to $8.25 from $7.75, compared to $6.87 currently.

Westgold is valued at $6.19 billion.

The post This ASX gold producer could jump by 20%, according to UBS appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday
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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Domino’s Pizza Enterprises Ltd (ASX: DMP) shares have crashed 12%, following the pizza chain’s FY26 results announcement this morning.

At the time of writing, the shares are trading for $17.70.

They’re now down around 19% for the year-to-date and are 8% lower than trading levels 12 months ago.

What has spooked investors today?

The company reported a 11.2% decrease in revenue, and a statutory NPAT loss of $134.2 million, including $255.7 million in non-cash write-downs and impairments. These were mainly for its France and Taiwan businesses, and also included technology assets and some underperforming corporate stores.

Domino’s underlying NPAT was up 4% for the 12-month period, and in line with guidance, but EBITDA fell 6.1%.

The company also cut its total FY26 dividend by 25.3% to 57.5 cents.

Going forward, Domino’s said it is planning to return to profitable growth in FY27 after a period of resetting its store network and business model. 

Domino’s also confirmed plans to roll out a revised pricing and operating model across Australia, focusing on long-term franchisee profitability and less reliance on aggressive discounting. The move follows a positive trial in Western Australia.

It’s clear that investors weren’t impressed with the results and many have rushed to sell up their shares this morning.

It’s been a difficult year for the fast food operator. The latest decline follows the company’s FY26 half-year result, which it announced in February this year. That half-year result was also a miss for investors and sent the share price crashing.

The shares dropped to a decade-low in mid-May but began recovering through late July after Domino’s posted its preliminary FY 2026 results ahead of today’s announcement. Most of those gains have been shed so far today.

Earlier this month, the company also revealed that Andrew Gregory has commenced as Group Chief Executive Officer and Managing Director. Jack Cowin has also resumed his former position as Non-Executive Chair.

Is the stock a buy, sell or hold now?

I expect that some market experts may revise their outlook on Domino’s shares in the coming days, following today’s results announcement.

But at the time of writing, analysts are still on the fence about the outlook for Domino’s shares this year.

TradingView data shows that out of 18 analysts, three have a buy or strong buy rating and 10 have a hold rating. Another five have a sell/strong sell rating.

The average $18.94 target price implies potential upside of around 7% over the next 12 months, at the time of writing.

But the difference between the maximum and minimum is wide. Some analysts think the shares could rise 46% to $26 per share. Meanwhile, others expect them to sink another 33% to $12 per share, at the time of writing.

The post Domino’s shares crash 12%: Are the shares a buy, sell or hold today? appeared first on The Motley Fool Australia.

More reading

• Why Woolworths, Domino’s and DroneShield shares are turning heads on Wednesday
• Domino’s Pizza Enterprises posts FY26 loss but boosts franchise profitability
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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 Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two popular ASX growth shares are being heavily sold off on Wednesday after releasing their latest results.

DroneShield Ltd (ASX: DRO) is down around 10% to $1.75, while WiseTech Global Ltd (ASX: WTC) has fallen around 6% to $42.88.

For me, both declines are creating an opportunity to look beyond today’s market reaction and focus on what these businesses could become.

DroneShield shares

DroneShield remains a higher-risk investment, but I think the growth opportunity is becoming harder to ignore.

The counter-drone specialist generated record first-half revenue of $125.8 million, representing growth of 74% over the prior corresponding period. More importantly for me, recurring revenue increased 229% to $11.5 million.

Recurring revenue is still a relatively small part of the business, so I would not make too much of it yet. But it shows DroneShield is beginning to build revenue that can continue after the initial hardware sale.

I also like what the company is doing to prepare for much greater demand.

DroneShield completed its new Sydney production facility during the half and established operations in Europe, where more than half of first-half revenue was generated. It finished June with $180 million of cash and term deposits, giving it significant resources to keep investing in production, software, and new products.

The next generation of AI-enabled hardware and software is very interesting to me. Counter-drone technology needs to keep evolving as the threats themselves change, and DroneShield is investing heavily to stay near the front of that development.

At $1.75, I think the sell-off offers an attractive entry point for investors comfortable with considerable risk.

WiseTech shares

WiseTech is a much more established business, but I think today’s result shows there is still plenty for long-term investors to look forward to.

CargoWise sits at the centre of the company’s opportunity. It provides software that helps global logistics companies manage the movement of goods across borders, including freight forwarding, customs, warehousing, and other complex processes.

One development that caught my attention is that more than 95% of CargoWise customers have now moved onto WiseTech’s new Value Packs commercial model. This is designed to move the company further towards charging for the value and transactions flowing through CargoWise rather than traditional seat-based pricing.

I think that could become increasingly valuable as WiseTech adds more automation and AI to the platform.

The e2open acquisition also gives the company a much larger presence across global trade and supply chains. WiseTech has already achieved substantial cost savings from integrating the business, while free cash flow increased 43% to US$410.7 million in FY26.

The outlook gives me another reason to remain positive.

Management expects underlying EBITDA to grow by 12% to 21% in FY27, with the underlying EBITDA margin rising to between 49% and 51%.

That suggests WiseTech could continue getting more profitable as it integrates e2open, rolls out new products, and uses AI to improve both its software and internal operations.

At around $42.88, I would be happy to use today’s weakness to build a long-term position.

Foolish takeaway

In both cases, I can see businesses investing heavily today to pursue opportunities that could be substantially larger several years from now.

DroneShield carries considerably more risk and would warrant a smaller position in my portfolio. WiseTech has a more established business and stronger cash generation.

But after Wednesday’s falls, I think both shares are worth buying with a long-term view.

The post Why I’d buy the dip on DroneShield and WiseTech shares appeared first on The Motley Fool Australia.

More reading

• Are DroneShield shares a buy, sell or hold following their half-year FY26 results today?
• Why Woolworths, Domino’s and DroneShield shares are turning heads on Wednesday
• Why are WiseTech shares crashing 8.5% today?
• DroneShield share price in focus as record revenue meets interim loss
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Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in EBR Systems Inc (ASX: EBR) are languishing near their 12-month lows despite the company making good progress on its commercialisation plans.

The analyst team at Morgans believe the shares are deeply undervalued at this point, and has a very bullish share price target on the company which I’ll get to shortly.

First let’s have a look at a recent announcement on the company’s business.

Solid progress on take-up of technology

EBR has developed a system called WiSE which it says is designed to overcome the limitations of conventional cardiac resynchronisation therapy and, “is the only leadless left ventricular endocardial pacing (LVEP) device”.

The company recently released a quarterly report and said that it had surpassed its hundredth commercial WiSE implant, “with multiple sites performing their first WiSE implants and numerous sites performing their 2nd, 3rd, 4th, and greater cases”.

EBR Chief Executive Officer John McCutcheon said:

We are extremely pleased with this quarter on multiple fronts. Commercially, EBR surpassed its 100th commercial WiSE implant, with multiple sites performing their first WiSE implants and numerous more experienced sites continuing to treat patients with WiSE. We secured master purchasing agreements with HCA Healthcare, Advocate Health, and CHRISTUS Health, validating the clinical and economic benefit of WiSE in major U.S. healthcare networks. In support of our future commercial efforts, the U.S. Centers for Medicare & Medicaid Services (CMS) further advanced WiSE through the Transitional Coverage for Emerging Technology (TCET) program by formally initiating the National Coverage Determination process for WiSE.

The company also fully transitioned to its new manufacturing facility in California, Mr McCutcheon said.

During the quarter, EBR had operating cash outflows of $25 million, but also completed a $150 million capital raise.

Shares in this ASX biotech looking very cheap

Morgans said in its note to clients issued this week that they believed the commercial roll out, “has progressed further than the headline implant numbers suggest, but execution capacity has temporarily become a key variable”.

Morgans added:

Management is now deliberately de-emphasising new site contracting and physician training to focus on repeat utilisation within existing accounts. This should reduce the administrative burden on the field organisation and allow trained representatives to spend more time supporting procedures. Thus, we view implant productivity per activated account rather than the number of contracted hospitals as the key near-term variable. With 17 sites already having completed ≥3 cases, we see an opportunity for utilisation to compound as physicians gain experience and WiSE becomes embedded in clinical workflows.

Morgans said the company had moved beyond the question of whether hospitals would buy WiSE, to proving whether they could generate repeat sales.

They added, “we view the existing footprint as adequate to provide substantial gains not reflected in the current share price”.

Morgans has a share price target of $1.95 on EBR shares compared to 30.5 cents currently.

The company is valued at $214.7 million.

The post Could this ASX biotech really jump more than 500%? appeared first on The Motley Fool Australia.

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• Bell Potter tips more than 140% upside for this out of favour ASX biotech

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

Telstra Group Ltd (ASX: TLS) is one of those businesses I think can suit investors looking for steady long-term returns rather than excitement.

With the shares trading close to their 52-week low, I think the current price deserves a closer look.

If I had $5,000 to invest today, I would be comfortable putting it into Telstra shares.

The income case is still strong

Telstra shares are trading around $4.60.

According to CommSec, analysts expect fully franked dividends per share of 22 cents in FY27 and 22.5 cents in FY28.

That puts the forward dividend yield at roughly 4.8% in FY27, before taking franking credits into account.

For an investor looking for passive income, I think that is attractive.

More importantly, the dividend is expected to keep edging higher rather than simply remaining flat.

Telstra has made a sustainable and growing dividend an important part of its strategy, and I think its recurring cash flows give it a good base from which to support those payments.

Mobile and internet services are regular household expenses, so Telstra continues receiving revenue from millions of customers every month.

That makes the income case easier for me to understand and gives shareholders a reason to hold the stock through quieter periods.

The business has defensive qualities

I also like Telstra because demand for its core services does not disappear when economic conditions weaken.

People still need mobile phones, internet connections, and access to digital services.

Businesses also rely heavily on telecommunications infrastructure to operate.

Telstra still faces economic pressure, competition, and changing customer behaviour, although I think demand for its services is more resilient than for many discretionary products.

For someone investing $5,000 and looking to hold for years, that stability has real value.

I would be much more comfortable owning a business whose products remain part of everyday life than relying on a company that needs consumers to keep spending freely.

There is still room for modest growth

Telstra does not need strong earnings growth to produce a respectable long-term result.

CommSec forecasts earnings per share of 20.8 cents in FY27 and 21.6 cents in FY28.

That is not explosive growth, but it does point in the right direction.

I think the more interesting part is how Telstra can keep improving the business around its existing customer base.

Its mobile network remains central to the company, while investments in fibre, satellite connectivity, enterprise services, and other infrastructure can create additional opportunities over time.

If Telstra can grow earnings gradually while continuing to increase its dividend, I think shareholders could receive a combination of income and moderate capital growth.

For me, that is enough to make the shares interesting at the current price.

Foolish takeaway

Yes, I would invest $5,000 into Telstra shares at around $4.60.

I like the combination of fully franked income, resilient demand, and the potential for steady earnings growth over time.

For investors seeking income and a relatively defensive long-term holding, I think the current share price looks attractive.

The post Would I buy Telstra shares with $5,000 as they near a 52-week low? appeared first on The Motley Fool Australia.

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• Looking to bank the boosted Telstra dividend? You better hurry!

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 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.

Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) are two of Australia’s biggest banks.

Both offer exposure to the Australian economy, home lending, deposits, business banking, and dividends.

But if I were choosing between them today, which one would I buy?

Why CBA shares stand out

CBA remains my preferred Australian bank because I think it has the strongest overall franchise.

Its enormous customer base gives it relationships across everyday banking, mortgages, business banking, credit cards, payments, and investing.

I particularly like the way CBA has invested in technology around those customers.

The CommBank app has become an important part of how millions of Australians manage their finances, and the bank continues adding services that can make customers more likely to stay within its ecosystem.

That technology investment can also help CBA operate more efficiently, make decisions faster, and improve areas such as fraud detection and customer service.

Business banking gives me another reason to be positive.

CBA has built a substantial position with Australian businesses, giving it another avenue for growth alongside its dominant retail banking operations. Business customers can use the bank for lending, deposits, payments, and other services as their companies develop.

For me, CBA has several strong parts of the business working together, and I think that makes it a high-quality long-term holding.

What about Westpac shares?

Westpac is certainly not a bad bank.

It has millions of customers, a huge deposit base, and one of Australia’s largest mortgage businesses. It is also investing to improve its technology and strengthen areas such as business banking.

The shares also trade on a lower price-to-earnings ratio than CBA and offer a higher dividend yield.

That could make Westpac more attractive to investors who place greater weight on income or who want to pay a lower multiple for a major bank.

My hesitation comes from the growth outlook. I remain concerned about Westpac’s heavy exposure to Australian housing at a time when home lending growth could become more difficult. Recent weakness in mortgage applications has reinforced that concern for me.

The bank is working to expand elsewhere, particularly in business banking, but I would like to see more progress before becoming more positive.

A cheaper valuation can certainly improve the investment case. I still want to feel confident that the underlying business has enough ways to grow over the years ahead.

Are CBA shares worth paying more for?

CBA shares normally command a substantial premium over Westpac shares, and investors need to decide whether the quality of the business justifies paying more.

I think it does. I would rather pay a higher price for the bank I believe has the stronger customer franchise, better technology, and more attractive long-term growth opportunities.

Of course, CBA still needs to execute well. A premium valuation leaves less room for disappointment, and banking conditions can change quickly.

But when I am investing with a long holding period, I tend to put more weight on the quality of the business than simply choosing whichever share looks cheaper.

Foolish takeaway

If I had to choose between CBA and Westpac shares today, I would buy CBA.

Westpac offers a lower valuation and stronger prospective income, which may suit some investors.

For me, though, CBA’s customer relationships, technology, and business banking position give it the stronger long-term investment case.

The post CBA vs Westpac shares: Which is the best buy? appeared first on The Motley Fool Australia.

More reading

• CBA shares bounce after settling long-running class action
• Will CBA shares ever get back to the top of the ASX 200?
• Buy, hold, sell: DigiCo Infrastructure REIT, CBA, Telstra shares
• VGS vs VHY: Which Vanguard ETF comes out on top?
• How many CBA shares do I need to buy for $8,000 of passive income?

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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.

Every earnings season, it is the blue chips of the ASX that investors arguably look forward to hearing from the most. Even if an investor doesn’t own one of these shares themselves, what these companies have to say has ASX-wide implications, and even provides an insight into the health of the Australian economy itself. Woolworths Group Ltd (ASX: WOW) is one of those shares, and we heard about the company’s latest numbers, including the new Woolworths dividend, this morning.

As my Fool colleague covered earlier, it was a strong set of numbers that the company had to show for itself. Woolworths revealed that it brought in $71.54 billion in revenues over the 12 months to 30 June, up 3.6% from the prior year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) before significant items was up an even healthier 6.7% to $6.09 billion. Meanwhile, Woolworths posted a net profit after tax (NPAT) and before significant items of $1.6 billion. That was up a pleasing 15.4%.

But let’s talk about the new Woolworths dividend.

Everything you need to know about the next Woolworths dividend

Woolworths just revealed that its final dividend for 2026 will be worth 52 cents per share. That’s a 15.56% increase over the final dividend of 45 cents per share that investors enjoyed in 2025. Like almost every dividend that this company pays, this one will come with full franking credits attached.

Together with the interim dividend of 45 cents per share (also fully franked), this final dividend takes Woolworths’ 2026 payouts to 97 cents per share, up 15.48% from the 84 cents per share that investors enjoyed over 2025. This represents a payout ratio of 74.1% from the $1.309 in earnings per share (EPS) that the company made over FY2026.

If one doesn’t yet own Woolworths shares, but would like to receive this latest payout from the company, Woolworths has named 1 September as the ex-dividend date. That means investors will need to have Woolworths shares in their name by the end of August to be eligible to receive it.

Anyone who buys Woolworths shares on or after 1 September will leave the right to receive the payout behind with the seller. Payment day will then roll around on 25 September next month.

Woolworths is running its dividend reinvestment plan (DRP) for this latest dividend. That means investors who wish to receive additional Woolworths shares in lieu of a cash payment can nominate to do so by 3 September.

Woolworths is currently trading with a trailing dividend yield of 2.21%. However, the company can now be assigned a forward yield of 2.38%.

The post Everything you need to know about the Woolworths dividend appeared first on The Motley Fool Australia.

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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 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.