Author: openjargon

The S&P/ASX 200 Index (ASX: XJO) enjoyed another strong day of gains this Tuesday, lifting the value of many ASX shares.

After yesterday’s rise kicked off the trading week on a positive note, investors built on that momentum today. The ASX 200 opened higher this morning and stayed in green territory all day, closing with a gain of 0.68%. That leaves the index at 9,164.6 points.

This terrific Tuesday for the local markets came after a mixed start to the American trading week on Wall Street overnight.

The Dow Jones Industrial Average Index (DJX: .DJI) was in an accommodating mood, rising 0.26%.

However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) had a more Garfield-esque Monday, closing 0.76% lower.

Let’s get back to the ASX now and take stock of how the different ASX sectors fared this session.

Winners and losers

Today’s market rises were near-universal, with only two sectors missing out.

The first, and worst, of those sectors was energy stocks. The S&P/ASX 200 Energy Index (ASX: XEJ) gave up an early lead to finish down 0.78% today.

The other red sector was real estate investment trusts (REITs), with the S&P/ASX 200 A-REIT Index (ASX: XPJ) sinking 0.16%.

Let’s get to the happier sectors now. Leading the charge were tech shares. The S&P/ASX 200 Information Technology Index (ASX: XIJ) had a blowout, rocketing up 2.25%.

Consumer staples stocks ran hot as well, illustrated by the S&P/ASX 200 Consumer Staples Index (ASX: XSJ)’s 2.11% surge.

Healthcare stocks were also popular. The S&P/ASX 200 Healthcare Index (ASX: XHJ) soared 1.4% higher this Tuesday.

Financial shares joined the party, with the S&P/ASX 200 Financials Index (ASX: XFJ) shooting up 0.94%.

Consumer discretionary stocks were also at the festivities. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) galloped up 0.91% today.

Next came utilities shares, as you can see by the S&P/ASX 200 Utilities Index (ASX: XUJ)’s 0.59% jump.

Industrial stocks were right behind that. The S&P/ASX 200 Industrials Index (ASX: XNJ) added 0.58% to its total this session.

Communications shares had a day to remember as well, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) advancing 0.4%.

Gold stocks didn’t miss out. The All Ordinaries Gold Index (ASX: XGD) enjoyed a 0.34% lift today.

Finally, mining shares managed to find buyers, evidenced by the S&P/ASX 200 Materials Index (ASX: XMJ)’s 0.3% bump.

Top 10 ASX 200 shares countdown

Defence company Electro Optic Systems Holdings Ltd (ASX: EOS) was our top performer this Tuesday. Electro Optic shares exploded 23.02% higher today to close at $10.58 each.

This astonishing showing followed the company’s latest earnings, which were obviously a delight for the market.

Here’s how the other top stocks tied up at the dock:

ASX-listed company	Share price	Price change
Electro Optic Systems Holdings Ltd (ASX: EOS)	$10.58	23.02%
ARB Corporation Ltd (ASX: ARB)	$21.51	13.87%
Ansell Ltd (ASX: ANN)	$41.36	8.16%
Suncorp Group Ltd (ASX: SUN)	$19.37	7.97%
DroneShield Ltd (ASX: DRO)	$1.95	7.44%
Judo Capital Holdings Ltd (ASX: JDO)	$1.03	6.74%
A2 Milk Company Ltd (ASX: A2M)	$7.09	6.30%
Data#3 Ltd (ASX: DTL)	$11.73	5.77%
Minerals 260 Ltd (ASX: MI6)	$0.92	5.75%
4DMedical Ltd (ASX: 4DX)	$3.88	5.72%

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

• Why is the ASX 200 having its best day in 3 weeks?
• Buy, hold, sell: Judo Capital, Healius, BHP shares
• Buy, hold, sell: Bendigo and Adelaide Bank, PLS, EOS shares
• EOS shares rocket 13% today. Can the rally keep going?
• ARB Corporation shares: FY26 profit drops but growth investments strengthen outlook

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 ARB Corporation, DroneShield, and Electro Optic Systems. The Motley Fool Australia has recommended ARB Corporation, Ansell, and Data#3. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Coles Group Ltd (ASX: COL) dividend has been announced with the FY26 result, and it was another pleasing payout for shareholders.

Coles has consistently delivered larger dividends in each of its annual results over the last several years, and FY26 was another good year for shareholders hoping for growth.  

As the country’s second-largest supermarket operator, it has market power few can match.

The FY26 result saw a number of growth figures for the business, including 2.8% revenue growth (and 3.7% growth for supermarkets), operating profit (EBITDA) grew 7.1%, underlying net profit increased 13.7%, and statutory net profit rose 1%.

The statutory net profit figure was impacted by $235 million of significant items relating to the Fair Work Ombudsman’s proceedings.

However, the strength of the underlying net profit performance helped the board of directors declare another pleasing payout for investors.

Coles dividend for FY26

The Coles board of directors decided to declare a fully-franked final dividend of 37 cents per share. This brings the full-year dividend for FY26 to 78 cents per share, representing a 13% year-over-year increase.

Based on the statutory net profit, the business delivered earnings per share (EPS) of 81.5 cents. Therefore, the full-year dividend represents 95.7% of statutory earnings, though it’s a lower percentage of underlying net profit after tax.

At the time of writing, the Coles FY26 final dividend represents a dividend yield of 1.6% excluding franking credits and 2.2% including franking credits.

If we look at the annual payout, the dividend yield is 3.3% excluding franking credits and 4.7% including franking credits.

When will this be paid?

Before getting to the payment date, first, we need to look at the ex-dividend date.

The ex-dividend date is the cutoff day for dividend eligibility. Investors need to own shares before the ex-dividend date to be entitled to the upcoming payment.

With this upcoming dividend, the ex-dividend date is 3 September 2026. That means investors need to own Coles shares by the end of trading on 2 September 2026 to be entitled to this payment.

After that, investors will receive payment on 22 September 2026, so that’s less than a month away.

Investors can also elect to receive new Coles shares rather than cash as the dividend. If they want to receive new shares, then they need to make that election with the dividend reinvestment plan by 5pm on Monday, 7 September 2026.

Dividend growth in FY27 looks promising, with the company announcing that supermarket sales growth in the first eight weeks of FY27 was consistent with the fourth quarter of FY26.

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

More reading

• These 3 ASX income shares just hiked their dividends
• By August 2027, $5,000 invested in Coles shares could turn into…
• Post-earnings: Why I’d buy this ASX dividend share for income
• Why is everyone talking about Coles, Ramelius Resources and Woodside shares on Tuesday?
• How many Coles shares do I need to buy for $5,000 a year in passive income?

Motley Fool contributor Tristan Harrison 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.

Earnings season on the ASX is rolling on this week, and so too is dividend season. This time of year, we tend to find out what the next shareholder payouts from the ASX’s most popular income shares will look like. Exciting times indeed.

Today, we’ve heard from a number of prominent shares. Let’s go through three of them that have just announced fresh dividend hikes for their investors.

3 ASX income shares that just increased their dividends

Australian Ethical Investments Ltd (ASX: AEF)

First up is ethically-focused fund manager Australian Ethical Investments. Australian Ethical reported its earnings this morning, which contained some impressive numbers. The company revealed that its revenues were up 9% over FY 2026 to $129.5 million, while underlying profits after tax climbed 29% to $25.7 million.

That helped this ASX income share to declare a final dividend of 10 cents per share, fully franked. That’s 11.1% above the 9 cents per share final dividend from 2025. Over 2026, Australian Ethical will fork out 18 cents per share in dividends, a 29% boost to investors’ 2025 haul.

Australian Ethical shares are currently trading on a trailing dividend yield of 3.56%.

Woodside Energy Group Ltd (ASX: WDS)

Next up, we have ASX energy stock, Woodside. Woodside also reported its half-year earnings this morning. The oil and gas giant enjoyed 13% higher operating revenues over the six months to 30 June at US$7.45 billion. Underlying net profits after tax rose 7% to US$1.33 billion.

That helped Woodside boost its 2026 interim dividend by 7.55% to 57 US cents per share. Like most of this ASX income share’s historic payouts, this dividend will be fully franked.

This will bring Woodside’s 2026 dividend total to US$1.16 per share. That’s 9.4% higher than 2025’s total of US$1.06 per share.

Right now, Woodside shares are trading on a trailing dividend yield of 4.99%.

Coles Group Ltd (ASX: COL)

Last but not least, we have ASX income share and supermarket giant Coles Group. Coles’ earnings this morning were well received by investors. As we covered at the time, the company recorded $45.58 billion in revenues for its FY 2026, up 2.8% from FY 2025. Net profit after tax (NPAT) did even better, jumping 13.7% to $1.26 billion.

That helped this ASX dividend share deliver its seventh annual shareholder pay rise in a row. Investors will bag a final dividend worth a fully franked 37 cents per share, pushing its full-year payouts to 78 cents per share. The final dividend represents a 15.6% hike over 2025’s equivalent payout.

Coles shares are currently sitting on a dividend yield of 3.1%.

The post These 3 ASX income shares just hiked their dividends appeared first on The Motley Fool Australia.

More reading

• Everything you need to know about the Coles dividend
• Everything you need to know about the Woodside dividend
• By August 2027, $5,000 invested in Coles shares could turn into…
• Post-earnings: Why I’d buy this ASX dividend share for income
• Here’s what brokers tip for Woodside shares over the next 12 months

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

The Woodside Energy Group Ltd (ASX: WDS) dividend has just been announced with the FY26 half-year result for the six months to 30 June 2026.

Woodside is Australia’s largest ASX oil and gas share with projects across Australia, Africa and North America.

The company regularly gives investors a sizeable dividend every six months and this dividend is another pleasing payout.

Woodside dividend

The ASX oil and gas share reported a 13% rise in operating revenue to US$7.4 billion, underlying net profit rose 7% to US$1.33 billion, free cash flow increased 159% to US$352 million and statutory net profit grew 27% to US$1.67 billion.

Woodside benefited from a 20% rise in its average realised price to US$74 per barrel of oil equivalent (BOE). Gas production fell 21% to 46.1 million barrels of oil equivalent (MMboe), liquids production fell 4% to 39.4 MMboe, and ammonia production was 1 MMboe.

The 36% decline of capital expenditure to US$1.6 billion helped the company’s free cash flow. However, operating cash flow declined 10% to US$3 billion.

Following all of those numbers, Woodside’s board of directors decided to increase the interim dividend per share by 8% to US 57 cents. This payout represents a dividend payout ratio of 80% of underlying net profit after tax.

At the time of writing, the interim payout translates into a dividend yield of 2.4% excluding franking credits and 3.4% including franking credits.

When will the payout hit bank accounts?

Before we talk about the payment date of the upcoming Woodside dividend, we need to look at the ex-dividend date first.

The ex-dividend date is the cut-off date for eligibility for a dividend. Investors need to own shares by the end of trading on the previous trading day.

For Woodside’s interim dividend, the ex-dividend date is 3 September 2026, so investors need to own Woodside shares by the end of trading on 2 September 2026.

After that, the dividend will be paid on 25 September 2026. So, investors don’t have long to wait between now and payment day.

The dividend reinvestment plan (DRP) remains suspended, according to Woodside.

I think the dividend is generous considering it represents a dividend payout ratio of 80% of underlying profit.

The company continues to invest in building its new projects of Scarborough, Trion and Louisiana LNG, which could all help unlock higher earnings once they’re completed. Woodside is also investing in exploration to help unlock a further stage of growth beyond the near future.

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

More reading

• Here’s what brokers tip for Woodside shares over the next 12 months
• Why is everyone talking about Coles, Ramelius Resources and Woodside shares on Tuesday?
• Woodside Energy half-year results: US$1,672 million profit and 57 US cents dividend
• 5 things to watch on the ASX 200 on Tuesday
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Motley Fool contributor Tristan Harrison 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 K&S Corporation Ltd (ASX: KSC) share price is in focus as the company reports a 2.1% drop in operating revenue to $729.2 million for FY2026, with statutory profit after tax down 22% to $22.8 million.

What did K&S Corporation report?

• Operating revenue fell 2.1% to $729.2 million
• Underlying profit before tax was $32.1 million, down 16.0% year over year
• Statutory profit after tax dropped 22.0% to $22.8 million
• EBITDA fell 10.0% to $81.6 million
• Total fully franked dividend of 11.0 cents per share (2025: 16.0 cents)
• Operating cash flow rose 4.3% to $63.7 million

What else do investors need to know?

The company’s Australian transport segment saw lower profits, reflecting the exit from several contracts and softer customer volumes in a challenging economic environment. Cost reduction strategies and operational reviews helped cushion some of the impact.

The New Zealand arm delivered a steady performance, benefitting from a mildly improved domestic economy and strong export prices. Meanwhile, K&S’s fuel trading business posted increased revenue and profit, navigating price volatility and ensuring fuel supply during market uncertainty.

The balance sheet remains robust, with net borrowings rising to $55.8 million mainly due to ongoing property and facility upgrades. New and upgraded sites are enhancing operational capability, especially in Adelaide and Brisbane.

What did K&S Corporation management say?

Managing Director and Chief Executive Officer Paul Sarant said:

Our strategy remains to improve the quality and contribution of our revenue base, rather than targeting work solely to grow top line revenue.

What’s next for K&S Corporation?

Looking ahead, K&S expects economic conditions to remain tough given global disruptions, low domestic growth, and cost pressures. The company notes risks to FY2027 results from subdued construction activity and the conclusion of services for InfraBuild, partly offset by margin improvements and new business in fuel trading.

Management says they’ll stay disciplined with capital and working capital management, continuing to strengthen the revenue base by focusing on high-quality, profitable business both organically and through select acquisitions.

K&S Corporation share price snapshot

Over the past 12 months, K&S shares have declined 10%, trailing the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

View Original Announcement

The post K&S posts lower FY2026 profit as revenue and dividends decline appeared first on The Motley Fool Australia.

More reading

• Everything you need to know about the Woodside dividend
• Are Woolworths shares a buy, sell or hold ahead of its FY26 results announcement?
• 3 ASX shares Macquarie says will return 23% to 49%
• By August 2027, $5,000 invested in Coles shares could turn into…
• Why I think this Vanguard ETF could be one of the best to buy and hold forever

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Woolworths Group Ltd (ASX: WOW) shares have slumped into the red in Tuesday afternoon trade.

At the time of writing, the supermarket giant’s shares are down around 0.5% and are changing hands at $38.42 a piece.

The shares have come off the boil recently after reaching an all-time high of $40.66 in early August.

Since then, the ASX consumer discretionary shares have slipped around 6%. 

But the latest decline has barely made a dent in the amount of gains Woolworths shares have enjoyed over the past year.

For the year to date, the shares are up around 31%, and they’re 18% higher than 12 months ago.

What’s driven the Woolworths share price rally this year?

It hasn’t been smooth sailing for the Woolworths share price over the past 12 months, and some volatility continued throughout early 2026. But the shares have climbed higher overall.

The business made headlines earlier this year after it posted its third-quarter sales update in April, revealing a 4.5% increase. 

At the time, the company also said underlying trading momentum remained solid, but management noted they had seen “some signs of increased customer caution”. Investors were spooked and quickly offloaded their shares.

Woolworths shares also gained attention in June following media reports about the company’s plans to offshore hundreds of corporate roles. The move is part of a $400 million office cost reduction push to simplify operations and reduce costs.

Since hitting a low in mid-May, Woolworths shares have now risen around 18%.

It looks like the increase was mostly driven by investor confidence that the turnaround is coming to fruition. There is renewed investor confidence that the retailer’s earnings are recovering after a difficult period in late 2025.

Woolworths posted a stronger-than-expected first-half profit in February and continues to pursue cost-cutting initiatives to support margins and earnings over time.

The company is due to announce its FY26 results tomorrow.

Are the supermarket shares a buy, sell, or hold now?

Market experts appear to be reserved about the outlook for Woolworths shares ahead of the company’s results announcement.

TradingView data shows the majority of analysts (eight out of 17) have a hold rating on Woolworths shares. Another three rate the shares as a buy/strong buy, and six rate the shares as a sell/strong sell.

Although after a strong rally, it looks like the shares are now trading above fair value.

The average $37.39 target price implies a potential 3% downside, at the time of writing.

Although some forecast that the shares could drop 10% to $34.60 over the next 12 months. Meanwhile, others think Woolworths shares have the potential to climb 6% to $40.90 per share at the time of writing.

UBS downgraded Woolworths shares to a sell rating earlier this month, but raised its 12-month price target to $39.

The post Are Woolworths shares a buy, sell or hold ahead of its FY26 results announcement? appeared first on The Motley Fool Australia.

More reading

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• 7 ASX 200 shares downgraded by the experts this week

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

Profit season gives the analysts plenty to work with when they’re assessing which companies represent a good buying opportunity.

I’ve had a look through the reports Macquarie has put out this week and singled out three which profile companies they think will do particularly well.

Let’s see who they like.

Arena REIT (ASX: ARF)

This listed property trust recently reported a net operating profit of $79.1 million, up 8% on FY25, and boosted its distributions per security by 5.5% to 19.25 cents.

The trust also guided to distributions for the current year of not less than 18 cents.

The company said re the result:

Key contributors to the FY2026 result were income growth from contracted annual and market rent reviews and acquisitions and development projects completed in FY2025 and FY2026. Arena finished the year with a strong balance sheet, with total assets of $2 billion and relatively low gearing of 24.5%.

Managing Director Justin Bailey said it was a strong year, and the trust “continued to improve portfolio quality through disciplined capital allocation, development activity and targeted divestments”.

The trust is dealing with a default from Edge Early Learning, which leases 31 Arena properties representing 14% of Arena’s income.

The trust says it is continuing to engage with Edge and reserves its legal rights.

Macquarie said in a note to clients that they assume Edge will not remedy the situation and will need to be replaced.

But they said the current share price implies an “overly pessimistic outcome”.

Macquarie has a price target of $2.90 on Arena shares compared to $2.45 currently.

Liberty Financial Group Ltd (ASX: LFG)

Macquarie said Liberty’s second-half result was positive, underpinned by stronger margins, while a 15 cent special dividend was also a positive.

They said:

We like LFG’s continued focus on delivering stable margins and returns, which we believe supports ongoing capital management initiatives. This supports return on equity of ~14% over the medium term, based on our forecasts. Despite changes to negative gearing and CGT in the budget, management noted only modest impacts to date on mortgage lending (with peers reporting similar), which has positively surprised us.

Macquarie has a price target of $4.70 on Liberty shares compared to $3.58 currently.

Navigator Global Investments Ltd (ASX: NGI)

Macquarie said this funds manager’s net profit of US$75 million came in at about 8% better than consensus estimates, and the outlook for the current financial year was strong.

The completion of an acquisition during the year “provides for material earnings growth in FY27, with capacity on the balance sheet to fund additional M&A”, Macquarie said.

The broker has a price target of $3.24 on Navigator shares compared to $2.51 currently.

The post 3 ASX shares Macquarie says will return 23% to 49% appeared first on The Motley Fool Australia.

More reading

• Liberty Financial Group grows FY26 profit, rewards shareholders with special dividend
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• Arena REIT postpones FY2026 earnings result as Edge Early Learning seeks rent relief

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

Coles Group Ltd (ASX: COL) shares are up around 2% in lunchtime trading on Tuesday. At the time of writing, Coles shares are changing hands at $23.19 each.

The increase means Coles shares are now up around 9% for the year to date, and have climbed 12% over the past 12 months.

Today’s increase comes off the back of the company’s FY26 results posted to the ASX ahead of the market open this morning.

Coles announced a 2.8% increase in its group sales revenue, a 9.9% increase in its EBIT excluding significant items, and a 13.7% increase in its NPAT excluding significant items.

The robust result saw management declare a fully-franked total dividend of 78 cents per share for FY26, an increase of 13%.

But, while it’s worthwhile to understand how the supermarket giant and its shares have performed over the past 12 months, investors should also keep an eye on what lies ahead.

For the business itself, Coles said it is ramping up its investment in new stores, renewals, and technology, including accelerated eCommerce and supply chain automation.

This could improve productivity and market share over the longer term, but it also raises near-term capital requirements.

But what about the Coles share price? What can we expect to happen next?

If I buy $5,000 of Coles shares today, what could they be worth in 12 months’ time?

Most experts are positive about the outlook for ASX consumer discretionary shares.

Market Index data shows that the majority of brokers have a buy rating on Coles shares. The $24.28 average target price implies a potential upside of around 5% at the time of writing.

Sentiment is similar on TradingView. The majority of analysts (eight out of 17) have a buy/strong buy rating on Coles shares, and another seven rate Coles shares as a hold. Two experts have a sell or strong sell rating.

The average target price of $24.07 implies a potential 4% upside over the next 12 months, at the time of writing. But analyst forecasts range from a 9% downside to $21 to a 17% upside to $27 over the next 12 months.

Assuming the average target price comes to fruition, that means a $5,000 investment today could be worth around $5,200 to $5,250 in 12 months time.

But if the more bullish expert forecasts are correct, a $5,000 investment today could climb to $5,850 by this time next year.

The post By August 2027, $5,000 invested in Coles shares could turn into… appeared first on The Motley Fool Australia.

More reading

• Post-earnings: Why I’d buy this ASX dividend share for income
• Why is everyone talking about Coles, Ramelius Resources and Woodside shares on Tuesday?
• How many Coles shares do I need to buy for $5,000 a year in passive income?
• Coles Group grows profit and dividend as Supermarkets shine in FY26
• 5 things to watch on the ASX 200 on Tuesday

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

Some investments become more attractive to me because of how little attention they require.

The Vanguard Diversified High Growth Index ETF (ASX: VDHG) is designed to give investors a diversified portfolio through a single investment.

For someone looking decades ahead, I think that simplicity can be a major advantage.

One Vanguard ETF does a lot of work

The VDHG ETF invests across Australian shares, international shares, emerging markets, smaller companies, and defensive assets such as bonds.

Its portfolio is tilted heavily towards growth assets, with roughly 90% invested in shares.

I think that makes sense for investors with a long timeframe who are prepared to accept periods of market volatility in exchange for greater growth potential.

More importantly, investors do not need to decide for themselves how much money to allocate to Australia, the US, Europe, Asia, or emerging markets.

Vanguard handles those allocations within the fund.

That removes a surprisingly difficult part of investing. It is easy to spend too much time wondering whether one market has become expensive or another is about to outperform.

With this Vanguard ETF, I can simply own a collection of markets and let the portfolio develop over time.

It automatically stays diversified

Another feature I like is rebalancing.

Markets rarely move together. Australian shares might have a strong year while international shares struggle, or technology stocks might surge while another part of the market falls behind.

Over time, those movements can push a portfolio away from its intended allocation.

The VDHG ETF takes care of bringing its investments back towards their target weightings.

For an individual investor, that means fewer decisions. There is no need to work out what to sell, what to buy, or whether a strong-performing market has become too large a part of the portfolio.

I think reducing the number of decisions investors need to make can make it easier to stay with a strategy for the long term.

It can grow with an investor for decades

This Vanguard ETF also has a quality I think is sometimes underestimated. That is that it can grow with an investor.

Someone could buy the fund with their first few thousand dollars and continue adding to the same investment as their portfolio becomes much larger.

The underlying diversification is already built in.

That makes it quite different from buying a handful of individual shares, where a growing portfolio may eventually need more holdings to avoid becoming too concentrated.

An investor could simply keep contributing when they have money available and reinvest dividends along the way.

Given enough time, the combination of regular investing, market growth, and compounding could do much of the wealth-building work.

Foolish takeaway

This Vanguard ETF is the type of investment I could imagine buying and leaving alone for a very long time.

It is diversified, growth-focused, automatically rebalanced, and requires very little ongoing decision-making.

Sometimes making investing easier is one of the best ways to give compounding the time it needs to work.

The post Why I think this Vanguard ETF could be one of the best to buy and hold forever appeared first on The Motley Fool Australia.

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• How I’d make investing easy with Vanguard ETFs
• Which is the best Vanguard ETF? VAS, VGS and VDHG compared
• The simple investing strategy anyone can use to get rich
• 5 top ASX ETFs for beginner investors in August
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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 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.

Wesfarmers Ltd (ASX: WES) shares have been flat around $82.35 on Tuesday, but the retailer has endured a rough year, falling 7% over the past month and 13% over 12 months.

Interest rates, inflation and persistent cost-of-living pressures have weighed on the company behind Bunnings, Kmart Australia, Officeworks and Priceline.

The shares have also been volatile, trading between a 2026 low of $71.26 in May and a high of $92.96 in July. Now, investors are looking towards Thursday’s FY26 results for clues about what’s next.

Plenty to like, but valuation concerns remain

There’s plenty to like about Wesfarmers shares. Kmart continues expanding its Anko brand internationally, with five stores already opened in the Philippines and another five planned by the end of FY27.

Bunnings is also pushing into new categories, including pet products and automotive accessories, while Kmart is testing larger K Home stores to capture more of the furniture market. Both remain exceptional retailers, backed by strong brands, competitive pricing and impressive returns on capital.

Wesfarmers is also developing potential growth engines through Priceline, OnePass, customer data, retail media and its Mt Holland lithium project. The company is also deploying artificial intelligence across merchandising, marketing, supply chains, and productivity.

But the valuation could be the problem. At around $82.35, Wesfarmers shares trade at almost 31 times estimated FY27 earnings. That’s a hefty multiple that leaves little room for disappointment.

Investors will therefore be watching FY26 group financial metrics and the final dividend closely. The results could set the tone for Wesfarmers shares in the months ahead.

Experts are turning bearish

According to TradingView data, nine of 15 analysts rate Wesfarmers shares a strong sell. Five have a hold rating and just one analyst recommends buying the shares.

The average price target of $77.56 implies around 6% downside from the current price, while the most bearish forecast sees the shares plunging more than 20% to $65.10 over the next 12 months.

Morgan Stanley has a sell rating and $79 price target. The broker recently warned that the rally in consumer discretionary stocks has “run ahead of fundamentals” and may not prove durable.

Alto Capital’s Tony Locantro is also bearish. He believes Wesfarmers’ quality and long-term growth prospects are already largely reflected in the valuation, leaving less room for upside if expectations aren’t met.

With FY26 results just days away, Wesfarmers investors may need to ask whether its exceptional businesses can justify an exceptional valuation.

The post Wesfarmers shares: Why experts are saying sell appeared first on The Motley Fool Australia.

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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 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.