Author: openjargon

ASX exchange-traded funds (ETFs) are a popular choice among investors because it’s a simple and low-cost way to get access to a wide range of assets, without needing to buy individual stocks.

ASX ETFs offer instant diversification, they traditionally have low fees, and because they usually track an index they tend to grow consistently and steadily over time.

Just as importantly, ASX ETFs are a great way to earn passive income because they pay a dividend. Unlike stocks which pay dividends directly to shareholders, ASX ETFs would have a portfolio of dividend-paying shares which the fund collects and passes onto its investors.

Like any ASX dividend-paying stock, this is usually paid out quarterly or annually. But then there are the rare few ASX ETFs that pay income to investors monthly.

The monthly-paying ASX ETF on my radar right now is the Betashares Dividend Harvester Active ETF (ASX: HVST).

Here’s a rundown of how it works and what it pays.

What’s the fund’s investment strategy?

The Betashares HVST is an ASX-listed ETF that invests in 40 to 60 dividend-paying companies. 

These are selected from the 100 largest companies listed on the ASX based on their dividend forecasts, franking credits, and expected future gross dividend payments.

The fund does not track an index; instead, it targets exposure to high-dividend stocks.

The fund is created in a way that allows it to own a dividend share until it trades ex-dividend. At this point, the fund sells the shares and reinvests the proceeds into its next opportunity.

What does HVST ETF pay its investors?

HVST ETF pays its investors a regular, partially-franked dividend income every single month.

Its annual dividend yield is around double the annual income yield of the broader ASX. 

As of the 27th of February 2026, the HVST ETF pays a 12-month gross distribution (dividend) yield of 7%, and a net yield of 5.5%. Its franking level is 64.7% and it has an annual management fee of 0.72%.

Its most recent dividend payment was in mid-March when it paid out 6 cents per share to investors. The fund also paid out $0.06 per share to investors in late February and in January. 

HVST shares have trailed the S&P/ASX 200 Index (ASX: XJO) index over the past 12 months. At the time of writing, the ASX ETF’s share price has climbed 1.4% over the past 12 months, compared with the ASX 200’s 9.3% annual gain.

The post This monthly income ASX ETF yields 7%, and every ASX investor should take note appeared first on The Motley Fool Australia.

More reading

• 3 reasons to buy Wesfarmers shares today
• Northern Star Resources posts Q3 gold sales, on track for FY26
• Want to retire at age 65? This is how much superannuation you need
• Here’s what I consider to be the very best ASX 200 share to buy in April
• 5 things to watch on the ASX 200 on Thursday

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.

Pexa Group Ltd (ASX: PXA) shares took a big tumble this week after the release of a consultation paper on pricing in the New South Wales market, which could affect how much they can charge for their services.

The stock fell 17.3% on Wednesday, prompting the ASX to issue a speeding ticket to the company, asking for an explanation of why it had been sold down so heavily.

Macquarie sees this as an opportunity to buy into the stock and has a bullish price target on the company’s shares, although it’s worth noting that UBS has a differing opinion.

The review into pricing is still underway, however, it could have large implications for what Pexa is able to charge for e-conveyancing services.

In its own words, the company said in its statement to the ASX:

As part of its Pricing review process, yesterday IPART released a consultation Paper titled ‘Methodology Paper – Initial Asset Base for an Electronic Lodgment Network Operator’. The Paper sets out a proposed approach to calculating an initial asset base and seeks submissions and feedback on the proposed and alternative methodologies prior to developing draft recommended prices for the Draft Report, which they expect to be published in June 2026. IPART’s methodology paper contains information which does not constitute a decision, is open to change and contains illustrative examples which should not be read as guidance. There is no certainty at this point in time that the proposed approach will be used by IPART and, if the proposed approach is used to develop draft recommended prices, the numerical components remain uncertain and open to discussion. While the initial asset base is a key element in the ‘building block’ method IPART will use in their price recommendation, there are multiple other inputs including return of capital, return on capital, operational expenditure, tax adjustments and other adjustments as determined by IPART.

Pexa Group shares looking cheap?

The analyst team at Macquarie said it was difficult to discern IPART’s outcome.

They ran the numbers using some assumptions, however, and said that even if price cuts of 5% to 10% were implemented, there was sufficient cost-out opportunity within the business.

Macquarie maintained its $19.60 price target on Pexa shares, compared with its current $12.97. This would constitute a 51.1% return if achieved.

Conversely, UBS has downgraded Pexa from a buy to neutral and lowered its price target for the shares from $17.50 to $15.70.

Pexa does not currently pay dividends.

Pexa Group was worth $2.28 billion at the close of trade on Wednesday.

The post After their big fall is it time to buy the dip on Pexa? appeared first on The Motley Fool Australia.

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• Why Pexa shares are sinking 16% today
• Why Dateline, Karoon Energy, Lindian, and PEXA shares are falling today
• PEXA goes live with NatWest in the UK. Is this the breakthrough investors have been waiting for?
• PEXA Group shares in focus as NatWest goes live on UK platform
• Brokers rate these 2 top ASX shares as buys in March

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

The ASX share market is one of the best places to find passive income, in my view. But, there are some businesses that could be a better source of dividends than others because of how they source their revenue.

Sometimes it’s difficult to predict how much demand a business is going to see for its offering.

Companies like BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO) and Adairs Ltd (ASX: ADH) can see revenue bounce around.

Wouldn’t it be great to know you have revenue locked in for a number of years? Normally, I’d write about Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), when it comes to long-term passive income, but there are two other businesses I really want to highlight.

Rural Funds Group (ASX: RFF)

Rural Funds has been one of my favourite real estate investment trusts (REITs) and I expect it will continue to be that way in the coming years.

Food is an exceptionally important commodity, so the farmland that Rural Funds owns is an important part of the national and global picture.

It owns various types of farmland including almonds, cattle, macadamias, vineyards and cropping, but it leases that land to agricultural tenants, ensuring the Rural Funds doesn’t carry major operational risks.

What makes it an effective pick for long-term passive income? It’s because it has a long weighted average lease expiry (WALE) with its tenants of approximately 13 years. In other words, the average tenancy rental agreement the ASX share has will expire in more than a decade, even if it didn’t sign any other long-term leases or renewals in that time.

That’s an extremely long time and suggests to me that the business has also largely locked in paying good passive distribution income in the coming years as well.

The business continues to invest in its farms to help maximise their rental income potential. But, rent is also growing organically, with most rental agreements having an indexation of either a fixed annual increase or a rise linked to inflation, plus market reviews.

Its guided FY26 payout translates into a distribution yield of 5.9%.

Charter Hall Long WALE REIT (ASX: CLW)

The other ASX share I want to highlight is this diversified REIT that owns properties across an array of commercial real state categories including pubs and hotels, telecommunication exchanges, service stations, distribution and logistics centres, manufacturing and so on.

I like the diversified strategy because it reduces risks and ensures the business can look across a wide range of areas for potential opportunities.

The one part of the strategy that all these properties have in common is that the ASX share has signed on tenants for years, providing appealing long-term income.

This ASX share has a WALE of around nine years, which is also a long time to have rental income locked in.

The business expects to grow its FY26 annual distribution by 2% to 25.5 cents per security, translating into a distribution yield of 7.6%, at the time of writing.

The post Looking for long-term passive income? Try one of these ASX shares appeared first on The Motley Fool Australia.

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• Is it time to load up on these high-yielding ASX dividend shares?
• 20 ASX shares with ex-dividend dates next week
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• 2 ASX dividend shares with yields above 7%
• 3 ASX dividend shares yielding 5%+ that still have growth potential

Motley Fool contributor Tristan Harrison has positions in Rural Funds Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adairs and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Adairs, Rural Funds Group, and Washington H. Soul Pattinson and Company Limited. 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.

Nine Entertainment Co Holdings Ltd (ASX: NEC) has this week finalised the $805 million acquisition of QMS Media, a major outdoor advertising company, which it bought from Quadrant Private Equity.

The analyst team at Macquarie took the opportunity to run the ruler over the company following the deal being bedded down, and has a bullish stock price on Nine Entertainment shares, which we’ll get to later. Firstly, what did Nine buy?

Major new business division

Nine said, on announcing the deal in January, that:

QMS is a leading digital outdoor media platform with operations in Australia and New Zealand. With a footprint concentrated in metro areas, QMS adds a digitally focused and growing media platform that complements Nine’s existing media assets, whilst also benefiting from being part of the broader Nine Group.

They also noted that the outdoor advertising category had been a “standout performer” in the Australian advertising market, growing by about 9% annually from 2014 through to 2025, and expanding its share of the market from 10% to 18% over that period.

QMS itself was also estimated to have grown its share of the market from about 10% in 2019 to about 15% in 2025, Nine said, “through a combination of high-profile tender wins, new site builds and digitisation of billboards”.

Nine said this week that it expects the acquisition of QMS to hit the bottom line immediately.

The company said:

Nine continues to expect QMS to contribute $92m of EBITDA in FY26 on a pro forma … basis (inclusive of outdoor lease expenses). Inclusive of full run-rate cost synergies of $20m, and adjusted for current interest rates, this equates to mid single digit earnings per share accretion. Following completion, Nine’s digital growth assets (Stan, 9Now, digital mastheads and Outdoor) are estimated to contribute more than 60% of Group revenue in FY27, up from approximately 45% in FY25.

Nine Chief Executive Officer Matt Stanton said it was a “defining moment” for Nine.

QMS is a high-growth, digitally-led business that complements our existing premium content and data capabilities. With the addition of QMS, we can offer advertisers an unparalleled cross-platform reach, while diversifying our revenue streams towards structural growth areas. Now the acquisition is complete, we are finalising the alignment of the Nine and QMS go to market sales strategies which will allow clients to capitalise on this powerful combination.

Nine Entertainment shares looking cheap

The Macquarie team said following the QMS acquisition, that Nine “should be better placed to deliver more consistent growth, although broadcast challenges need to be tamed with cost-out”.

Macquarie has a price target of  $1.15 per share on Nine shares, compared with 97 cents currently.

Nine is also expected to pay a dividend yield of 6.3% this year. The company is valued at $1.51 billion.

The post After a big acquisition what are Nine Entertainment shares worth? appeared first on The Motley Fool Australia.

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• 3 ASX 200 shares at 52-week lows: Buy, hold, or sell?

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

4DMedical Ltd (ASX: 4DX) shares have jumped another 8% in Wednesday afternoon trade. At the time of writing, the shares are changing hands at $6 a piece.

Today’s uplift means the shares are now 32% higher for the year-to-date and up an enormous 2,208% over the past 12 months.

The healthcare technology company’s shares have enjoyed an incredible run, but now I’m concerned that investors who are chasing the shares higher and higher could be taking a big gamble.

Why do 4DX shares keep soaring?

4DX is an ASX healthcare technology company that develops imaging software for healthcare providers to analyse airflow through the lungs. It helps identify and treat lung and respiratory diseases ranging from asthma to lung cancer.

The company saw its share price explode in 2025 after its flagship product, CT:VQ, received regulatory approvals. It was quickly implemented and adopted through partnerships and commercial contracts with healthcare organisations.

The company has already signed contracts with hospitals and medical providers across the US. These include Stanford University, the University of Miami, Cleveland Clinic and UC San Diego Health.

It’s this business shift from a research and development business to a globally commercial business which has attracted interest from investors.

There is no price-sensitive news out of the company to explain the share price hike today. 

But it looks like investor interest has continued to keep climbing. 

Here’s why it feels like a gamble

I’m concerned that after such a strong price rally over the past 12 months, the 4DX share price could begin to run away.

While a lot of the price increase is driven by company development and contract wins, it is also being driven by investor expectations and sentiment.

It’s worth remembering that 4DX is still in a loss‑making, growth and commercialisation phase, which means the company is not yet a profitable business.

For the half-year ended 31st December, 4DMedical reported a revenue of $2.9 million, but an adjusted net loss of $16.2 billion, meaning it is far from making money.

This means it also doesn’t pay any dividends to its shareholders.

These types of companies often attract momentum and speculative trading and price increases feed more price increase. Essentially, investor optimism can drive gains.

The problem is that if developments or results don’t live up to expectations, the share price can tumble just as quickly. 

This isn’t to say that could happen. But to assume that it won’t, or that it’ll continue at the same rate, is a gamble I won’t be taking.

The post Are investors taking a big gamble chasing 4DX shares higher and higher? appeared first on The Motley Fool Australia.

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• Why 4DMedical, Brainchip, Catapult, and Star Entertainment shares are falling today
• Why 4DMedical, Clinuvel, Life360, and Silex shares are pushing higher today
• Up 2,075% in a year, why is the 4DMedical share price rocketing again on Friday?
• Why is everyone talking about 4DX shares 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.

Wesfarmers Ltd (ASX: WES) shares closed 0.7% higher on Wednesday afternoon, at $73.43 a piece.

Global volatility and concern about inflation rates and the rising cost of living has smashed the retail giant’s shares recently. After initially climbing 9% through the first few weeks of the year, Wesfarmers shares have crashed nearly 18% since mid-February.

Now, Wesfarmers shares are down 10% for the year-to-date and 0.3% lower than 12 months ago.

For context, the S&P/ASX 200 Index (ASX: XJO) is 0.6% lower year to date and 9.3% higher over the year.

It’s clear Wesfarmers shares have come off the boil recently as Australians tighten their purse strings and prepare for ongoing instability.

But I still think there are compelling reasons why investors should buy into the stock. Here are three of them.

1. Wesfarmers is a high-quality blue chip stock

Wesfarmers is a leading Australian blue-chip company. The business is the 6th largest company listed on the ASX with a market cap of around $823 billion. It is well-established, and financially sound with a history of reliable growth and stability.

The diversified company has broad retail operations in home improvement and outdoor living, apparel, general merchandise, office supplies, health and wellbeing. It also has a health division, and an industrials division with businesses in chemicals, energy and fertilisers, and industrial and safety products.

Wesfarmers subsidiaries include household names such as Bunnings Warehouse, Kmart Australia, Officeworks, Priceline, and more.

2. The business has had consistent earnings growth

Wesfarmers has demonstrated consistent, long-term net profit growth and a track record of delivering solid earnings despite challenging economic conditions.

For the first half of FY26, the conglomerate posted a 9.3% increase in NPAT, to $1.6 billion.

And while the company acknowledges that inflation and higher operating expenses could remain as headwinds going forward, it is confident that earnings growth will continue.

Analysts at UBS think that Wesfarmers could achieve $2.86 billion in net profit in FY26. The broker forecasts earnings to keep climbing in FY27 and beyond. It expects $3.07 billion in net profit in FY27, $3.1 billion in FY28 and a hike to $4 billion by FY30. That implies Wesfarmers earnings could jump 40% between FY26 to FY30. 

3. Wesfarmers shares offer a reliable passive income

The retail conglomerate is well-known for its reliable and consistent passive income payment. In February, the Kmart and Bunnings owner declared a fully franked interim dividend of $1.02 per share, up 7.4%.

And as the company’s earnings climb, its payout is expected to rise too.

UBS predicts that the business could deliver an annual dividend per share for FY26 of $2.13. 

The broker expects Wesfarmers to pay an annual dividend per share of $2.31 in FY27 and $2.56 in FY28. By FY30, the broker expects the dividend to hike to $3 per share. That would be a 41% increase from FY26. 

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

More reading

• Northern Star Resources posts Q3 gold sales, on track for FY26
• Want to retire at age 65? This is how much superannuation you need
• Here’s what I consider to be the very best ASX 200 share to buy in April
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today

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

The Northern Star Resources Ltd (ASX: NST) share price is in focus after the company reported preliminary gold sales of 381,000 ounces for the March quarter, keeping it on track to meet its revised full-year guidance.

What did Northern Star Resources report?

• Gold sold (March quarter): 381,000 ounces (koz)
• Total gold sold in FY26 to date (nine months): 1,110,000 ounces (koz)
• FY26 production guidance: Forecast above 1.5 million ounces (Moz)
• New KCGM mill commissioning: Early FY27

What else do investors need to know?

Northern Star’s progress towards its full-year target hinges on maintaining strong mill throughput at KCGM. While the company isn’t currently facing diesel supply issues, management flagged it as a key ongoing risk for the mining sector.

The release notes that Northern Star will provide a more detailed quarterly update on 22 April 2026, along with a public results call for investors and analysts.

What’s next for Northern Star Resources?

Investors should watch for the official March quarterly results later this month, which will offer further detail on costs and production across sites. Looking ahead, upgrades to the KCGM mill remain a strategic priority, with commissioning expected in early FY27. Management continues to actively monitor fuel supply risks.

Northern Star Resources share price snapshot

Over the past 12 months, Northern Star Resources shares have risen 22%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

View Original Announcement

The post Northern Star Resources posts Q3 gold sales, on track for FY26 appeared first on The Motley Fool Australia.

More reading

• 3 reasons to buy Wesfarmers shares today
• Should you buy the dip on gold shares? Expert
• Want to retire at age 65? This is how much superannuation you need
• Here’s what I consider to be the very best ASX 200 share to buy in April
• 5 things to watch on the ASX 200 on Thursday

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.

Looking at the WAM Capital Ltd (ASX: WAM) share price today, it’s likely that one particular metric might jump out at you. That would be this listed investment company (LIC)‘s dividend yield. At the time of writing, WAM Capital shares are going for $1.69 each. At this pricing, WAM Capital is trading with a trailing dividend yield of 9.17%.

Let that sink in for a moment. We have a stock that is ostensibly offering to return $9 a year in cash flow for every $100 invested. That’s almost twice what you could expect from a savings account or term deposit right now. And more than twice what other popular dividend stocks, ranging from Coles Group Ltd (ASX: COL) to Commonwealth Bank of Australia (ASX: CBA) and Telstra Group Ltd (ASX: TLS), currently have on the table.

So, does that 9% yield make WAM Capital shares a screaming buy for income-hungry investors, or investors more generally?

Well, as you might suspect, the answer is definitely not an unambiguous ‘yes’. Whenever the market is offering a stock with a 9% yield, one should always exercise a high degree of caution. After all, if that kind of yield was a sure thing, investors would flock to its shares, pushing up the price and lowering the running yield.

That is clearly not happening with WAM Capital, so we must ask ourselves why.

Does a 9% yield make WAM Capital shares a screaming buy?

Well, our first red flag is the WAM Capital share price itself. This is not what one might call a high flyer. At the current share price, this LIC has lost more than 24% of its value over the past five years. In fact, investors who bought WAM Capital shares ten years ago would also be down by about 25% from their initial investment.

This indicates to us that WAM Capital pays out all of its profits, and then some, as dividends.

WAM Capital’s dividends also look to be on shaky ground. Over 2025, this company paid an annual dividend of 15.5 cents per share. As of the company’s most recent update, it appears that WAM Capital has only 21.1 cents per share in its ‘profit reserve’, which it uses to fund its dividends. That means WAM Capital can only afford another 12-18 months of payouts if this reserve isn’t topped up.

So, it seems the market has weighed up all this and decided there is a high risk of lower dividends from WAM Capital going forward. This company could well be a reliable source of dividend income for investors who buy today. But given the company’s poor share price performance over many years and its near-empty profit reserves, investors should at least consider the not-insignificant risks of this stock.

The post Thinking of buying WAM Capital shares for the 9% dividend yield? Read this first appeared first on The Motley Fool Australia.

More reading

• After a big acquisition what are Nine Entertainment shares worth?
• Are investors taking a big gamble chasing 4DX shares higher and higher?
• 3 reasons to buy Wesfarmers shares today
• Northern Star Resources posts Q3 gold sales, on track for FY26
• 1 ASX dividend share and 1 ASX growth stock to buy in April

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 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.

It’s shaping up to be an interesting month for ASX share market investors.

If you’re hunting for reliable income or high-growth potential, these two ASX shares stand out: Washington H. Soul Pattinson and Company Ltd (ASX: SOL) for dependable dividends and Xero Ltd (ASX: XRO) for long-term capital growth.

Let’s take a closer look.

Soul Pattinson: Over 120 years of payouts

This ASX Share isn’t your average dividend play. Washington H. Soul Pattinson has been around for over 120 years and has paid a dividend every single year, through wars, pandemics, and recessions. Its track record of 28 consecutive years of dividend growth is unmatched on the ASX.

Originally a pharmacy business — hence the “Chemist” name — Soul Patts has since divested that arm and transformed into a diversified investment company. Its portfolio of investments generates strong, recurring cash flow, supporting both its regular payouts and long-term capital growth.

The company recently increased its HY26 interim dividend by 9.1% to 48 cents per share, giving it a grossed-up yield of 3.8% including franking credits.

With a combination of consistent income and an expanding investment portfolio, shareholders can reasonably expect both reliable dividends and gradual capital appreciation. The price of the ASX share has gained 9% in 2026 and 17% over 12 months.

Xero: Deep sell-off sparks opportunity

If income isn’t your priority, this ASX share offers growth. This cloud-based accounting platform powers small and medium-sized businesses, handling invoicing, payroll, and financial reporting all in one place.

Xero’s global footprint – Australia, New Zealand, the UK, and beyond – is a major strength, an its subscription model provides recurring revenue that grows as its customer base expands.

Xero hasn’t been smooth sailing. The recent tech sell-off hit the ASX share hard, amplified by fears Artificial Intelligence could disrupt traditional software and higher interest rates pressuring valuations. But that’s creating opportunity.

After months of heavy selling, the ASX share is trading at a significant discount to prior highs, attracting bargain hunters looking for high-quality growth at lower entry points.

Analyst sentiment is overwhelmingly positive. According to TradingView, 13 out of 14 analysts rate Xero as a buy or strong buy. Price targets suggest upside of up to 210%, with Citi’s $144.80 target implying a 92% potential gain from current levels.

Its sticky ecosystem, scalable business model, and ongoing global expansion make the $12 billion ASX share a compelling long-term growth story.

Foolish Takeaway

Together, these ASX shares represent two sides of a balanced portfolio: income today and growth tomorrow. Soul Patts offers stability and dependable dividends backed by a century-long track record, while Xero offers high-growth potential for investors willing to ride the ups and downs of tech.

These ASX stocks show that whether you’re chasing reliable payouts or explosive upside, there are opportunities waiting for investors willing to buy quality at the right time.

The post 1 ASX dividend share and 1 ASX growth stock to buy in April appeared first on The Motley Fool Australia.

More reading

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• Why are ASX 200 tech stocks like WiseTech and Life360 going gangbusters on Wednesday?
• Is this smashed ASX tech stock gearing up for a hefty comeback?
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• Here are the top 10 ASX 200 shares today

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

ASX dividend shares with a large dividend yield could be a great buy because of the strong cash flow they can give for our bank accounts.

With inflation and interest rates seemingly on the rise, I think investors may be looking for names that can beat what interest rates bank savings accounts are likely to provide.

I want to highlight two ASX dividend shares that have never given their shareholders a dividend reduction, have a good track record of dividend increases, and have an incredible dividend yield.

WCM Global Growth Ltd (ASX: WQG)

WCM Global Growth is a listed investment company (LIC) that’s managed by WCM, which is based in Laguna Beach, California. It’s deliberately based a long way away from Wall Street (in New York).

This LIC targets a global portfolio of shares, which I think is a good strategy because there are thousands of opportunities to choose from.

WCM has whittled down its portfolio to just 20 to 40 stocks from that global hunting ground.

There are two factors that WCM wants to see particularly – improving economic moats and a corporate culture that supports the strengthening of those competitive advantages.

This strategy has allowed the ASX dividend share’s portfolio to deliver a net return that’s stronger than the global share market over the past year, three years and since the LIC’s inception in June 2017.

WCM Global growth’s net portfolio return has been an average of 15.8% per year since inception, allowing it to pay a growing dividend each year since it started paying one in 2019. Of course, past investment returns are not a guarantee of future returns.

The business has provided guidance that its quarterly dividend will continue growing every quarter until March 2027.

At the time of writing and according to guidance, the next four quarterly dividends to be declared will come to a grossed-up dividend yield of just over 8%, including franking credits. 

WAM Microcap Ltd (ASX: WMI)

It’s my view that ASX small-cap shares are some of the most exciting investments to own because of their large growth potential and how early on in their growth journey we can invest in them.

For example, imagine there’s a business that now makes $100 million in revenue. Wouldn’t it have been great to have bought it when it was making just $10 million in revenue? We could look forward to owning it as it multiplied its sales by ten times.

Not every business is destined to grow 10x from its current scale, which is why I think it could be smart to leave the investing to a seasoned team of small-cap fund managers working full-time that have performed very well over the long-term.

Between inception in June 2017 to February 2026, the WAM Microcap portfolio has returned an average of 15.4% per year (before fees, expenses and taxes), outperforming the small-cap benchmark by 7% per year in that time.

That strength has allowed the ASX dividend share to increase its annual payout every year except FY24, going back to FY18 when it started paying a dividend.

Recent dividend increases have been small, but I think any growth is very appealing given it has such a large dividend yield. At the time of writing, the FY26 grossed-up dividend yield is guided to be around 10.2%, including franking credits.

The post 2 ASX shares with dividend yields above 8% appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Wam Microcap and Wcm Global Growth. 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.