Author: openjargon

BHP Group Ltd (ASX: BHP) and Woodside Energy Group Ltd (ASX: WDS) are two of the biggest resources shares on the ASX.

Both are quality businesses. Both generate large amounts of cash when commodity prices are favourable. And both can play a useful role in an income-focused portfolio.

But if I had to choose one to buy today, I would pick BHP.

The main reason is copper.

Why I like Woodside

Woodside is still an ASX share I rate.

It gives investors exposure to global energy markets, has high-quality LNG assets, and can generate very strong cash flow when oil and gas prices are elevated.

That can also support attractive dividends.

In the current environment, the business has benefited from higher energy prices. The conflict in the Middle East has added risk to global oil supply, and that has helped keep energy prices strong.

However, this is also the main reason I would be a little cautious.

If the US and Iran sign a peace deal, and oil supplies are able to flow more freely through the Strait of Hormuz, oil prices could pull back meaningfully.

That would not make Woodside a bad business. But it could take some heat out of the investment case in the short term.

Energy markets can change quickly, and Woodside’s earnings remain highly exposed to oil and gas prices. For investors who already own the stock, I can see the case for holding. But if I were putting fresh money to work today, I would prefer BHP shares.

Why BHP shares win for me

BHP is also exposed to commodity cycles, so it is not immune from volatility.

Iron ore prices, China’s economy, project costs, and global growth all matter.

But I think BHP has a more compelling long-term demand story because of copper.

Copper is central to electrification, electricity networks, renewable energy infrastructure, data centres, industrial activity, and electric vehicles. The world is going to need a lot of it over the next decade.

At the same time, I am not convinced supply will keep up with demand.

New copper mines are difficult to develop. They can take many years to approve, fund, build, and ramp up. Grades are also declining at some older mines, and political or permitting risks can delay new projects.

That creates a very attractive setup for established producers.

BHP is already the world’s largest copper producer, which puts it in a strong position if copper prices remain elevated over the long term.

The valuation question

There is one important caveat.

BHP shares have performed strongly this year, and the valuation is no longer as compelling as it was.

That means I would not necessarily go all-in today.

Instead, I would consider buying gradually. That could mean starting with a partial position and adding more if the share price pulls back.

I think that approach makes sense because BHP is still a cyclical business. Even if the long-term copper story is attractive, commodity shares rarely move in a straight line.

There will almost certainly be periods when sentiment cools, prices fall, or investors worry about global growth. Those moments could provide better entry points.

Foolish takeaway

Woodside and BHP are both quality ASX resources shares.

But BHP looks more attractive to me because of its copper exposure.

So, while I still like Woodside, BHP would be my pick today. I would just be patient with the entry point after its strong run this year.

The post BHP shares vs Woodside shares: Which is the better buy? appeared first on The Motley Fool Australia.

More reading

• CGT tax changes may encourage investors into ASX dividend shares: Expert
• How to build passive income with ASX shares in 3 easy steps
• How high does Morgan Stanley think BHP shares will go?
• Buying BHP shares today? Here’s the dividend yield you’ll get
• This ASX mining stock tipped to rise 50% could make a profit of $250m in 2028

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

If I had to rebuild my portfolio from scratch today, my investing strategy would be much simpler than when I first started.

Instead of chasing speculative trends or trying to pick every market winner, I would focus on a balanced mix of high-quality ASX shares and diversified ETFs designed to deliver long-term growth, passive income and global exposure.

The core of my investing strategy would start with diversification.

Rather than relying heavily on one sector or one country, I would spread investments across Australian blue chips, global markets and technology-focused growth opportunities.

Australian exposure

For Australian exposure, I would begin with the Vanguard Australian Shares Index ETF (ASX: VAS).

This ETF provides broad access to many of Australia’s largest companies, including banks, miners and industrial businesses. It also delivers solid dividend income, which can help compound returns over time through reinvestment.

Alongside that ETF, I would add selective ASX shares with reliable earnings and defensive characteristics. Wesfarmers Ltd (ASX: WES) would likely feature prominently. The company owns high-quality retail and industrial businesses including Bunnings and Kmart, while also generating steady cash flow and dividends.

For infrastructure exposure, I would include Transurban Group (ASX: TCL). Infrastructure assets can add stability to an investing strategy because they often produce recurring revenue linked to population growth and inflation. That can become particularly valuable during periods of economic uncertainty.

Global reach and tech growth

However, if I were starting again today, I would place much greater emphasis on global growth and technology exposure than I did originally.

Artificial intelligence (AI), cloud computing and digital infrastructure are reshaping industries worldwide, and I would want meaningful exposure to those long-term trends.

That is where the iShares S&P 500 ETF (ASX: IVV) would play a major role. This ETF gives investors access to some of the world’s largest technology companies, including Apple Inc (NASDAQ: AAPL) and Nvidia Corporation (NASDAQ: NVDA). These businesses continue benefiting from AI investment, digital transformation and expanding global demand for computing power.

To further strengthen diversification, I would also include the Vanguard MSCI International Shares ETF (ASX: VGS). This ETF provides exposure to developed international markets beyond Australia and reduces reliance on the local economy alone.

For a direct ASX tech growth opportunity, I would consider Xero Ltd (ASX: XRO). Xero has built a strong global software platform and continues expanding internationally, offering long-term growth potential despite short-term volatility.

Foolish Takeaway

Importantly, my investing strategy today would focus less on short-term market movements and more on consistency.

I would invest regularly, reinvest dividends where possible and avoid reacting emotionally to market volatility.

Starting over has a hidden advantage: it forces simplicity. And over long periods, a simple investing strategy built around diversification, quality businesses and long-term patience can often outperform more complicated approaches.

The post My simple investing strategy if I had to start over appeared first on The Motley Fool Australia.

More reading

• These ASX dividend shares could power your retirement income
• 3 ASX 200 shares I’d buy and hold through any market cycle
• How to build passive income with ASX shares in 3 easy steps
• Buy, hold, sell: GrainCorp, Treasury Wine, and Xero shares
• Brokers name 3 ASX shares to buy right now

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 Apple, Nvidia, Transurban Group, Wesfarmers, Xero, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Transurban Group and Xero. The Motley Fool Australia has recommended Apple, Nvidia, Vanguard Msci Index International Shares ETF, Wesfarmers, 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.

This month, a number of Australia’s most popular shares have released updates.

Brokers have had time to review these updates and give their verdict. So, have they named them as buys, holds, or sells? Let’s find out:

Commonwealth Bank of Australia (ASX: CBA)

Morgans notes that Australia’s largest bank underperformed expectations in the third quarter.

Combined with a challenging outlook and the tightening of its balance sheet, the broker has reaffirmed its sell rating with a trimmed price target of $119.40. It said:

3Q26 earnings were below 1H26 growth expectations, both before and after the impact of topping up loan loss provisions. The balance sheet as per the CET1 capital ratio also looks a little tighter than we had previously budgeted. FY26-28 EPS forecasts downgraded c.3-5%. Target price reduced 4% to $119.40. SELL retained, with potential total return of c.-19% at current prices (including c.3.3% dividend yield). Even after today’s c.10% sell-off, CBA’s valuation metrics remain extended and don’t provide a sufficient margin of safety.

CSL Ltd (ASX: CSL)

Morgans was disappointed with CSL’s guidance downgrade last week.

However, it remains upbeat and believes the issues the company is facing are temporary and not structural.

As a result, with CSL shares down heavily, Morgans has named them as a buy with a $147.59 price target. Commenting on the biotech giant, the broker said:

FY26 guidance was downgraded on China Albumin price pressure, US Ig channel inventory normalisation and other impacts (paused Iran sales, lower Hemgenix and and Iron sales), combined with a further cUS$5bn in flagged impairments. Importantly, issues are framed as primarily executional rather than structural, with infrastructure overbuild, organisational complexity, and weak commercial execution cited, while underlying demand and industry structure remain healthy.

Encouragingly, Seqirus is performing better than expected, Ig demand remains mid-to-high single digit, and there are early signs of plasma share stabilisation. While forward earnings visibility remains limited, we believe the current valuation increasingly discounts a structurally impaired plasma franchise, which we do not believe the current industry dynamics support. We reduce FY26-28 forecasts and lower our blended DCF, PE and EV/EBITDA-based target price to A$147.59. Given CSL’s global leadership positions, structurally growing end markets and operational initiatives, we retain a BUY rating.

Life360 Inc. (ASX: 360)

Bell Potter was pleased with this family safety and location technology company’s first-quarter update.

It notes that Life360 outperformed expectations on everything but monthly active users (MAU), which missed due to a technical issue.

In response, the broker has put a buy rating and $32.50 price target on Life360’s shares. It said:

1Q2026 revenue and adjusted EBITDA of US$143.1m and US$17.1m were 4% and 18% ahead of our forecasts and 4% and 14% ahead of VA consensus. The key positive of the result was the strong paying circle growth of 201k q-o-q which was more than double our forecast of 99k and well ahead of VA consensus of 109k.

The post Buy, hold, sell: CBA, CSL, and Life360 shares appeared first on The Motley Fool Australia.

More reading

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• 5 excellent ASX dividend shares to buy with $50,000
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Motley Fool contributor James Mickleboro has positions in CSL and Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I’m always on the lookout for great ASX share investments that could deliver strong long-term returns and outperform the S&P/ASX 200 Index (ASX: XJO).

I like to look at businesses that can grow earnings significantly over the next five to ten years because I think that’s where the market may be undervaluing the business.

Below are two of the ASX shares that I’m very excited about.

Tuas Ltd (ASX: TUA)

Tuas is a fast-growing, Singapore-based telecommunications business. It has offered customers great value with a mobile offering and this has resonated.

The company has reported significant growth year after year. In the FY26 half-year result, it grew its mobile subscriber base by 21.7% year over year to 1.41 million. This helped drive revenue higher by 26% and underlying operating profit (EBITDA) grew 27% to $42.1 million.

I think any business that’s growing revenue and EBITDA organically by more than 20% per year is worth looking at. If the underlying EBITDA margin is rising then it’s even more appealing.

The ASX share is steadily growing its market share and this is helping its operating leverage strength.

There are two things that could help it significantly in the coming years. Firstly, it’s acquiring a Singapore competitor called M1, which will help diversify Tuas’ earnings base and significantly increase its bottom line.

I’m particularly hopeful the ASX share could generate strong returns if it can meaningfully expand into other Asian countries because of how that would considerably increase its addressable market. Countries like Indonesia and Malaysia have much larger populations than Singapore.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

I like investing in exchange-traded funds (ETFs) that give me exposure to growing businesses that I can’t buy directly on the ASX.

Over the longer-term, I think it’s the businesses with strong economic moats – meaning competitive advantages – that can deliver above-average returns.

The MOAT ETF is looking for businesses with particularly attractive economic moats – ones where analysts believe certain businesses’ competitive advantages will likely last for 20 years or more.

Having advantages like that will hopefully translate into pleasing long-term profit growth and capital growth. It has certainly worked for the MOAT ETF because the fund has returned an average of 13.9% per year over the past decade to 30 April 2026.

Another element to the investment strategy is the fact that the MOAT ETF only invests when these great businesses are trading at a compelling price to what Morningstar analysts think the business is actually worth.

I like how this fund is able to provide investors with a diversified portfolio and good returns, while not heavily focusing on tech shares. Other industries are also capable of being great businesses. I think this ASX ETF would work very well with a portfolio of compelling ASX shares.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Tuas and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX dividend stock space has a lot of pleasing options to consider for passive income. I believe one of the best ideas to consider is WCM Quality Global Growth Fund (ASX: WCMQ).

That may not be one of the most familiar exchange-traded fund (ETF) options to many investors, but I think it could actually be one of the most effective ideas for passive income to consider.

It’s important to remember that a good dividend investment can provide investors with a pleasing mixture of passive income and capital growth because a rising portfolio value has its advantages, even if just to offset the impacts of inflation.

Let me run through the three major positives that I see with this ASX dividend stock and why it’s a great buy at any time.

Healthy distribution yield

The ASX ETF aims to pay a distribution yield of at least 5% per year. That’s not small, but not huge either – I think it’s the right balance between rewarding investors and holding onto most of its capital to invest on investors’ behalf.

Importantly, that 5% dividend yield (of the net asset value (NAV)) can be paid whether the market is significantly up or down.

We can’t know how strongly the share market is going to perform in the coming years, but I think a 5% dividend yield is low enough that the ASX ETF will still be able to deliver capital growth.

Considering good term deposit interest rates now start with a ‘5.%’, I think the ASX dividend stock offers a very competitive return.

High-quality shares

The investment strategy of this fund is to invest in a portfolio between 20 to 40 stocks with access to quality global companies, with a goal of outperforming the global share market over rolling three-year time periods and hopefully experience lower volatility than the benchmark.

WCM, the fund manager of the fund, looks at businesses with improving economic moats (competitive advantages). The investment team also believe that corporate culture is the biggest influence on a company’s ability to grow its competitive advantages (economic moat).

When a company is increasing the advantage it has over competitors, that can lead to stronger profit margins and rising earnings, which is the key driver of share price gains.

Long-term performance

The WCMQ ETF portfolio’s great long-term returns have not been driven by just a strong single year, it has regularly performed well, allowing the fund to achieve significant returns.

Since the fund’s inception in August 2018 to March 2026, it delivered an average net return per year of 14%, outperforming the global share market by an average of 2.4% per year.

If the ASX dividend stock is able to deliver a good double-digit return over the long-term, that would provide a pleasing mix of a good distribution yield and capital growth.

It’s not the only ASX dividend I’d be happy to invest in, though.

The post I’d buy this ASX dividend stock in any market appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Wcm Quality Global Growth Fund. 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.

Investing in ASX shares does not always start with a large lump sum.

For many people, it begins with a regular amount that can be put aside each month. And while $500 may not sound like enough to build serious wealth, time can do a lot of heavy lifting.

Let’s see just how much wealth could be built with $500 a month and ASX shares.

The numbers

If an investor put $500 a month into ASX shares and earned an average return of 10% per annum, the results could become very meaningful over time.

After 10 years, those monthly investments could grow to approximately $100,000.

After 20 years, the balance could reach around $360,000.

Finally, after 30 years, it could grow to approximately $1 million.

That is the power of compounding. The longer the money stays invested, the more returns begin to build on previous returns.

Of course, a 10% annual return is not guaranteed. It is broadly in line with long-term historical share market returns, but actual returns will vary from year to year. Some years will be strong, others will be weak, and some could even be painful.

Discipline is the hard part

The maths is simple. The behaviour is harder.

Investing $500 a month requires consistency. It means continuing through market falls, bad headlines, interest rate moves, recessions, and company downgrades.

Regular investing removes some of that pressure. It does not require picking the perfect day to buy. It simply keeps the plan moving.

Diversification matters

While long-term investing can be powerful, it is still important to spread risk.

Even high-quality companies can go through difficult periods. CSL Ltd (ASX: CSL) is a recent reminder of that. It was once viewed as one of the ASX’s most dependable long-term growth shares, yet its shares have fallen heavily after a series of disappointing updates.

That does not mean quality investing has failed. It means no single company should carry too much of the load.

A diversified portfolio across different sectors, business models, and geographies can help reduce the damage when one holding struggles. This could be achieved initially with an exchange traded fund (ETF) like the Vanguard MSCI Index International Shares ETF (ASX: VGS), which gives investors easy access to over 1,000 global shares.

Foolish takeaway

Turning $500 a month into a large portfolio is about time, patience, and discipline.

Invest regularly, stay diversified, and give compounding enough years to do its work. That combination can turn a monthly habit into significant long-term wealth.

The post How much $500 a month could become with ASX shares appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building strong retirement income often starts with owning high-quality ASX dividend shares capable of delivering reliable passive income through different market cycles.

For long-term investors, a mix of infrastructure and resource exposure can help balance stability, growth and yield. These three ASX dividend shares each offer a different pathway to building retirement income.

APA Group (ASX: APA)

APA Group can play an important role in a retirement portfolio thanks to its stable infrastructure earnings and highly reliable income generation.

The company owns critical gas pipelines and energy infrastructure assets across Australia, helping generate predictable cash flow that supports consistent distributions to investors.

Importantly, APA has increased its dividend every year for the past 20 years, a rare achievement on the ASX.

For retirement-focused investors seeking passive income, APA’s defensive business model may also help reduce portfolio volatility during weaker market periods.

The forward distribution yield currently sits around 5.5%, and franking credits can push the grossed-up yield considerably higher for Australian investors.

Of course, risks remain. Higher interest rates can pressure infrastructure valuations, while energy regulation and the long-term transition away from fossil fuels remain important considerations.

Still, demand for essential infrastructure is expected to remain strong for decades.

Fortescue Ltd (ASX: FMG)

Fortescue is well known among income investors for paying large dividends during periods of strong iron ore prices.

The mining giant benefits from low-cost iron ore operations and substantial export demand from Asia, helping support large cash flows during commodity upcycles.

For retirement investors comfortable with some market volatility, Fortescue could offer an attractive source of dividend income.

According to CommSec projections, the company could pay an annual dividend of 80 cents per share in FY27.

At current prices, that translates into a grossed-up dividend yield of around 5.4%, including franking credits. The projected FY26 grossed-up yield is even higher at 6.6%.

However, investors should understand the risks tied to commodity cycles. Fortescue’s earnings and dividends remain heavily exposed to fluctuations in iron ore prices and Chinese steel demand. If commodity prices weaken sharply, dividend payments could fall as well.

Transurban Group (ASX: TCL)

Transurban is another infrastructure heavyweight that may suit retirement investors seeking stable long-term returns.

The company operates major toll roads across Australia and North America, generating recurring revenue linked to population growth, urban expansion and rising traffic volumes.

Infrastructure assets such as toll roads often produce inflation-linked earnings, which can become increasingly valuable during retirement when preserving purchasing power matters.

For FY26, Transurban has guided to a distribution of 69 cents per security, implying a forward yield of around 5.0%. The company recently paid an interim distribution of 34 cents per security, reinforcing its steady payout profile.

Like APA, higher interest rates can pressure infrastructure valuations and borrowing costs. But Transurban’s long-term growth outlook remains supported by growing transport demand and large-scale infrastructure ownership.

The post These ASX dividend shares could power your retirement income appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares I’d buy and hold through any market cycle
• CGT tax changes may encourage investors into ASX dividend shares: Expert
• How to build passive income with ASX shares in 3 easy steps
• Hunting passive income? Here are three ASX dividend shares to buy
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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Starting at 50 with no savings can feel daunting. There is less time than someone in their 20s or 30s, which means the margin for error is smaller.

But it does not mean building wealth is impossible.

The key is to avoid panic, keep the process simple, and follow principles that have worked over long periods.

That is where Warren Buffett’s approach can be useful with ASX shares.

Start with what can be controlled

The first step is not finding the perfect ASX share.

It is getting the habit right. At 50, regular contributions matter because there is still time for compounding to work, but not enough time to rely on it alone.

That means cutting unnecessary expenses, directing surplus income into investments, and doing it consistently.

Buffett has often stressed the importance of patience and discipline. For someone starting later, those qualities become even more important.

Buy quality, not hype

Buffett’s investing style at Berkshire Hathaway (NYSE: BRK.B) was built around owning high-quality businesses.

That means companies with strong competitive positions, dependable earnings, good management, and the ability to keep generating cash over time.

On the ASX, this could mean looking at established businesses with durable advantages rather than chasing speculative stocks. Examples could be Goodman Group (ASX: GMG), REA Group Ltd (ASX: REA), and Telstra Group Ltd (ASX: TLS).

The temptation when starting late can be to take bigger risks in an attempt to catch up. That can be dangerous. A large loss at 50 can be much harder to recover from than a loss earlier in life.

A better approach is to build around businesses that can compound steadily.

Think in decades

Warren Buffett is famous for taking a long-term view.

That mindset is especially valuable for someone starting with no savings at 50. The goal is not to double money quickly. It is to build a portfolio that can grow through consistent investing and sensible decision-making.

A 15-year or 20-year investing period can still make a big difference.

Investing regularly into quality shares or low-cost funds, reinvesting dividends, and staying invested through market volatility can create meaningful wealth over time.

Keep it simple

Buffett has often praised simple investing.

For many people, that means using broad, low-cost index funds rather than trying to pick every winner. This can provide exposure to many companies at once and reduce the risk of relying too heavily on one stock.

That matters because even high-quality companies can have difficult periods. Diversification helps smooth the journey and keeps the plan from depending on one decision.

Simplicity can also make it easier to stay the course.

Foolish takeaway

Starting with no savings at 50 is not ideal, but it is not hopeless.

By saving aggressively, buying quality investments, staying diversified, and thinking long term, it is still possible to build meaningful wealth.

Buffett’s approach is not about getting rich overnight. It is about patience, discipline, and letting good investments compound. At 50, that is exactly the mindset I would want.

The post With no savings at 50, I’d follow Warren Buffett’s approach to build wealth appeared first on The Motley Fool Australia.

More reading

• CGT tax changes may encourage investors into ASX dividend shares: Expert
• 5 excellent ASX dividend shares to buy with $50,000
• How to build passive income with ASX shares in 3 easy steps
• Are Telstra shares a top buy for passive income?
• I’d buy these blue-chip ASX shares with $2,000 in a heartbeat

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

Markets never move in a straight line.

Some years are driven by optimism, falling interest rates, and strong earnings growth. Other years are shaped by inflation, geopolitical shocks, weaker consumer spending, and nervous investors.

That is why I think it helps to own ASX 200 shares that can handle different conditions.

The three ASX 200 shares in this article are not guaranteed to outperform every year. But I think they have the kind of quality, resilience, and long-term relevance that makes them worth buying and holding through the cycle.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of the first ASX 200 shares I would consider for an all-weather portfolio.

The company owns a collection of businesses that touch everyday life, including Bunnings, Kmart, Officeworks, Priceline, and industrial operations.

What I like about Wesfarmers is that it gives investors a rare mix of defensive earnings and long-term growth options.

Bunnings is the standout. It has a powerful position in home improvement, strong brand trust, and a store network that would be very hard to replicate. Even when the economy slows, Australians still need to repair, maintain, and improve their homes.

Kmart is another important part of the story. Its value-focused model can actually become more relevant when households are under pressure. That gives Wesfarmers a useful offset in tougher consumer environments.

I also like the group’s capital allocation record. Wesfarmers has shown over many years that it is willing to invest where it sees opportunity and exit areas that do not meet its standards.

That discipline is a big reason I would be happy to hold the stock through different market cycles.

ResMed Inc. (ASX: RMD)

ResMed is another ASX 200 share I think investors can buy with a long-term mindset.

The company is a global leader in sleep apnoea treatment and respiratory care. That gives it exposure to a large healthcare market with strong structural demand.

For me, the appeal is simple. Sleep apnoea remains underdiagnosed, but awareness continues to grow. As more people are tested and treated, ResMed has a chance to sell more devices, masks, software, and connected care solutions.

I also like the fact that healthcare demand is not purely tied to the economic cycle. People do not stop needing treatment because markets are weak or consumer confidence is low.

Of course, ResMed still has risks. Competition, pricing pressure, currency movements, and changing technology can all affect performance. The GLP-1 weight loss drug debate has also created periods of uncertainty for the share price.

But I think the long-term case remains attractive. In fact, if better awareness of obesity and sleep-related health issues leads to more diagnosis, ResMed could still benefit over time.

That makes it the kind of global healthcare business I would be willing to hold through volatility.

Transurban Group (ASX: TCL)

Transurban is a very different type of ASX 200 share, but that is why I like it in this mix.

The company owns and operates toll roads across Australia and North America. These are infrastructure assets that can produce relatively defensive cash flows over long periods.

Road traffic can move around with economic conditions, but major urban toll roads tend to remain important parts of daily life. People still need to commute, move goods, visit family, and travel around large cities.

I also like the inflation-linked nature of many toll road arrangements. In an environment where costs and prices are rising, that can help support revenue growth.

Transurban is not a risk-free income stock. Debt levels, interest rates, regulation, traffic volumes, and project costs all need watching. But I think its assets are high quality and difficult to replace.

For investors wanting a steadier holding alongside growth names, I think Transurban can play an important role.

Foolish takeaway

I do not think an all-weather portfolio needs to be boring.

Wesfarmers gives exposure to high-quality retail and disciplined capital allocation. ResMed adds global healthcare growth. Transurban brings infrastructure income and defensive characteristics.

Each business faces risks, and none will rise every year. But I think all three have qualities that can remain valuable across different market environments.

For investors looking beyond the next market wobble, these are three ASX 200 shares I would be happy to buy and hold for years.

The post 3 ASX 200 shares I’d buy and hold through any market cycle appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Transurban Group and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended ResMed 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.

Private wealth and investment advisory firm, Medallion Financial Group says changes to capital gains tax (CGT) will likely encourage investors to focus on income-generating assets like ASX dividend shares over growth investments.

Under the changes announced in the Federal Budget on Tuesday, the 50% CGT discount for assets held longer than 12 months will be replaced by a cost base indexation method from 1 July next year.

This method adjusts the cost base of an asset for inflation.

Existing investments will be grandfathered, so the 50% CGT discount will continue to apply to gains before 1 July 2027.

Capital gains on existing investments on or after 1 July 2027 will be subject to cost base indexation.

A minimum 30% tax on net capital gains will apply under the cost base indexation method.

There is one exception.

To maintain incentives for new housing supply, investors in new residential properties will be able to choose either the 50% CGT discount, or cost base indexation and the minimum 30% tax rate.

In a newsletter this week, Medallion outlined its predictions as to how the tax changes might influence investor behaviour.

The advisory firm said:

By increasing the effective tax burden on capital gains, the government has altered the relative attractiveness of growth versus income subtly, but meaningfully shifting investor behaviour.

At a high level, the changes tilt the playing field toward yield. If a larger portion of capital gains is taxed away, the after-tax return profile of growth assets; equities, start-ups, and expansionary investments becomes less compelling.

In contrast, income streams such as dividends retain their relative appeal, particularly where they are franked.

ASX dividends shares and franking

Dividends are typically funded from profits, and franking credits represent the tax a company has already paid on its profits in Australia.

People invested in ASX dividend shares receive both the raw dividend plus the level of franking relevant for each company they own.

The level of franking depends on how much corporate tax the company has paid and has available in its franking account.

At tax time, franking is credited towards an investors’ tax payable, reducing tax on their dividend income and preventing double taxation of profits.

For example, Commonwealth Bank of Australia (ASX: CBA) is among the most popular ASX dividend shares on the market.

CBA shares typically pay dividends with 100% franking.

For 1H FY26, CBA declared a dividend of $2.35 per share plus 100% franking.

Therefore, an investor who owned 100 shares in CBA would have received a $235 dividend and a $100.71 franking credit.

‘A likely rotation in capital’

Medallion says the tax changes will likely encourage a rotation in capital away from growth assets to income assets.

Investors may increasingly favour high-dividend, lower-volatility sectors over innovative, higher-risk areas of the market.

In effect, policy is nudging capital away from forward-looking, productivity-enhancing investments and toward more defensive, domestically oriented exposures.

One of the reasons ASX shares are a popular investment is because the dividend yield is much higher than international shares.

The long-term average annual yield for ASX 200 shares is 4% to 4.5%, however, this has fallen closer to 3.5% in recent years.

By comparison, the current trailing dividend yield on US shares or S&P 500 Index (SP: .INX) stocks is 1.1%.

A high dividend yield provides protection for investors when the market falls, as it has in 2026.

In the calendar year to date, the S&P/ASX 200 Index (ASX: XJO) is down 1.1%, however, investors have still received dividends.

Other popular dividend shares

ASX 200 bank and mining stocks have long been viewed as among the most generous ASX dividend shares.

For example, ANZ Group Holdings Ltd (ASX: ANZ) shares are currently trading on a trailing dividend yield 4.76%.

Westpac Banking Corp (ASX: WBC) shares are trading on a trailing yield of 4.31%.

Fortescue Ltd (ASX: FMG) shares have a trailing dividend yield of 5.3%.

Outside of the banks and miners, other strong ASX dividend shares include the energy giants, telcos, and utilities shares.

Woodside Energy Group Ltd (ASX: WDS) shares are trading on a trailing dividend yield of 5.39%.

Telstra Group Ltd (ASX: TLS) shares have a trailing yield of 3.75%.

ASX 200 utilities stock, APA Group Ltd (ASX: APA), has a trailing dividend yield of 5.39%.

The post CGT tax changes may encourage investors into ASX dividend shares: Expert appeared first on The Motley Fool Australia.

More reading

• 5 excellent ASX dividend shares to buy with $50,000
• What are the pros and cons of buying CBA shares in May?
• How to build passive income with ASX shares in 3 easy steps
• Why CBA, Paladin Energy and CSL shares crashed  9% to 17% this week
• Are Telstra shares a top buy for passive income?

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.