Author: openjargon

Retirement is supposed to be the point when years of saving and investing finally start paying off.

But what if the timing is terrible?

Imagine retiring, beginning to draw on your portfolio, and then watching the ASX fall sharply within the first year.

That would be uncomfortable, but I do not think it automatically ruins a retirement plan.

The early years can be particularly important

A market crash becomes more difficult when an investor is withdrawing money at the same time.

If shares fall heavily and I need to sell some of them to fund living costs, I am locking in losses while the portfolio is already under pressure.

That can leave less capital available to participate in the eventual recovery.

This is often described as sequence-of-returns risk. The order in which good and bad years arrive can have a major impact once withdrawals begin.

Two retirees could earn the same average return over a long period and still end up with very different outcomes depending on when the weakest years occurred.

I would avoid relying on forced selling

If I were approaching retirement, I would want enough flexibility that I was not forced to sell ASX shares immediately after a large fall.

That could mean keeping some cash or lower-volatility assets available for near-term spending.

It could also mean holding companies that continue generating dividends through weaker markets like Coles Group Ltd (ASX: COL) or Telstra Group Ltd (ASX: TLS), although I would never assume those payments are guaranteed.

The aim would be to give the growth side of the portfolio time to recover.

I would still keep growth investments

A crash just after retirement might tempt an investor to move everything into cash.

I would be careful about doing that. Someone retiring at 60 or 65 could still have decades of investing ahead of them. Over that timeframe, inflation can gradually erode the purchasing power of a portfolio that is too defensive.

I would still want exposure to strong ASX businesses and potentially international shares or exchange-traded funds (ETFs) that can grow earnings over time.

The balance between growth and stability may change, but I would not want retirement to mark the end of long-term investing.

Spending can also be flexible

Another tool is simply adjusting withdrawals when the ASX share market is weak.

If the portfolio suffered a large fall, I might temporarily delay major discretionary spending or take slightly less from the portfolio if my circumstances allowed.

Even small changes can reduce the pressure to sell assets at poor prices.

That flexibility becomes much easier if retirement spending has been planned with some margin for error.

Foolish takeaway

An ASX share market crash immediately after retirement would be a difficult start, but it does not have to derail the years ahead.

I would want a retirement portfolio that gives me options during weak markets rather than depending on continually rising share prices.

For me, the combination of some near-term liquidity, ongoing growth exposure, diversification, and flexible withdrawals would make a bad first year far easier to manage.

The post What happens if the ASX share market crashes just after I retire? appeared first on The Motley Fool Australia.

More reading

• Is the Telstra share price a buy for its 6.25% dividend yield?
• How much passive income could a $500,000 superannuation balance generate?
• How much is needed in superannuation for $3,000 in weekly passive income?
• How much do I need in my superannuation to earn $10,000 passive income every month?
• Post-earnings: I’d buy these ASX dividend stocks for income today

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

ASX 200 healthcare shares are on a roll, up by a staggering 42% since the sector began a rapid rebound, after a horror year, on 3 June.

The S&P/ASX 200 Health Care Index (ASX: XHJ) reached a 9-year low on 3 June following a 39% 12-month pummelling.

Healthcare shares tanked due to many industry headwinds, including the FX rate for companies reporting in US dollars; cost of living pressures; higher shipping and labour costs, and US regulatory uncertainty for biotech businesses. 

Value investors have since swooped in, and reassuring FY26 results and guidance during earnings season last month propelled the rebound further.

Healthcare shares are now 42% higher since 3 June versus a 2% rise for the broader S&P/ASX 200 Index (ASX: XJO).

During the August earnings season, ASX 200 healthcare shares jumped 19% while the ASX 200 moved up 1.1%.

Here are 3 ASX 200 healthcare shares with buy recommendations and promising 12-month price targets from Bell Potter.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is $2.21, down 0.9% today and steady over 12 months. 

Since 3 June, this ASX 200 healthcare share has risen 9.4%.

Bell Potter has a buy recommendation on Mesoblast shares with a $4.45 target.

This implies the Mesoblast share price could double over the next 12 months.

Analyst John Hester said: 

(All US$m) Revenues $120.2m and loss at the EBIT line -$49.9m were in line with our forecast. Ryoncil sales of $115m were at the mid-point of the guidance range.

Operating expenses $153m were dominated by R&D expense ($97m), driven by the investment in label expansion for Ryoncil and the ongoing Phase 3 trial for Rexlemestrocel in chronic lower back (CLBP).

Loss at NPAT $57.4m with net cash burn for the year -$43.8m inclusive of just -$13m in 2H26.

MSB has a long pipeline and label expansions for Ryoncil alone which we expect will come to market on a 3 to 5 year time horizon.

Pivotal moments in the short term include the interim readout on adult GvHD and the pending submission of the BLA for Rexlemestrocel in HF.

Neuren Pharmaceuticals Ltd (ASX: NEU)

The Neuren Pharmaceuticals share price is steady at $20.46 on Tuesday, and down 2% over 12 months.

Since 3 June, this ASX 200 healthcare share has streaked 51% higher.

Bell Potter has a buy rating on Neuren Pharmaceuticals shares with a $25.50 target.

This implies a potential 25% gain over the next 12 months.

Neuren Pharmaceuticals has also just started paying investors dividends.

Analyst Thomas Wakim said:

NEU remains very well capitalised with $286.5m in cash at 30-June. Considering the (1) strong cash position, (2) recent Daybue guidance upgrade, and (3) imminent Daybue launch in Europe, NEU have commenced a dividend program, starting with an interim dividend of $0.15/share (fully franked).

The dividend provides a moderate yield for shareholders, however capital growth will dominate future shareholder returns and is the reason to own the stock in our view, particularly as the binary Phase 3 readout in PMS draws closer (estimated in ~1H CY28), the result of which will largely determine whether NEU is a one-trick pony or whether they repeat the glory a second time round with NNZ-2591.

Sonic Healthcare Ltd (ASX: SHL)

The Sonic Healthcare share price is $19.44, down 0.7% today and down 15% over 12 months. 

Since 3 June, this ASX 200 healthcare share has risen 3%.

Bell Potter says ‘buy’ with a $27.50 target, suggesting a possible 41% upside ahead.

Analyst Martyn Jacobs commented:

SHL reported EBITDA of c.$1.92b (cc) which was within the guidance range of c.$1.87b – c.$1.95b.

On a reported basis, EBITDA of c.$1.93 was in line with consensus, but c.1.5% below BPe.

The result was impacted by a range of nonrecurring items that more than offset the one-off gain from the Brisbane lab sale &
leaseback transaction.

While the headline EBITDA margin was c.10bp lower than pcp, margins in the 2H showed meaningful improvement at c.19% v
c.16.7%.

The post 3 ASX healthcare shares to buy with 25% to 100% upside as sector rebound races higher appeared first on The Motley Fool Australia.

More reading

• How much passive income could a $500,000 superannuation balance generate?
• How much do I need in my superannuation to earn $10,000 passive income every month?
• Why brokers see 85% upside for this ASX biotech stock
• Sonic Healthcare shares crash 21%: What on earth is going on?
• Why these ASX shares are worth watching closely today

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

A $500,000 superannuation balance can start to take on a new purpose once retirement arrives.

After years of building the balance, the focus may shift towards what that money can provide each year.

There are several ways to approach that, and I would be careful not to focus on the biggest possible income number.

Start with a sustainable approach

For me, retirement income should come from investments I would still be comfortable owning for years.

That could mean holding a mixture of dividend-paying ASX shares, exchange-traded funds (ETFs), and other assets rather than filling the portfolio with whichever shares currently offer the highest dividend yields.

A large dividend can be tempting, but it becomes far less attractive if the underlying business struggles and eventually cuts the payment.

I would prefer companies with dependable cash flows and a reasonable chance of at least maintaining (but preferably increasing) their dividends over time.

What could the income look like?

How much income a $500,000 balance could generate depends on how the money is invested.

At an average yield of 4%, the portfolio would produce around $20,000 a year.

A 5% yield would increase that to approximately $25,000, while 6% would generate around $30,000.

I think somewhere in that range gives investors a sensible idea of what could be possible without assuming an unusually high yield.

The income would not necessarily stay the same every year. Dividends can rise, fall, or occasionally disappear, which is another reason I would spread the portfolio across several investments.

Which ASX shares might help?

Telstra Group Ltd (ASX: TLS) could be one income holding I would consider.

Its mobile and internet services generate recurring demand, while the company has placed a growing dividend at the centre of its shareholder return plans.

Aurizon Holdings Ltd (ASX: AZJ) offers another type of income exposure through rail infrastructure and freight operations.

I might also consider Sonic Healthcare Ltd (ASX: SHL). Diagnostic testing provides exposure to healthcare demand, and the company has a long history of returning cash to shareholders.

These would only form part of a broader portfolio. I would want enough diversification that my retirement income was not overly dependent on one company or industry.

Growth still has a role

A retiree may need their superannuation to last for decades.

That means I would still want some investments capable of growing earnings and distributions over time.

Inflation gradually reduces what $20,000 or $25,000 can buy, so a portfolio that can produce increasing income has an advantage.

I would also be comfortable selling a small amount of investments when necessary rather than insisting that every dollar of retirement spending must come from dividends.

Foolish takeaway

A $500,000 superannuation balance could potentially generate somewhere around $20,000 to $30,000 a year from investments yielding between 4% and 6%.

I would be more interested in building a durable income stream than pushing for the top end of that range.

For retirement, I think a diversified portfolio with dependable income and some room for growth gives that $500,000 the best chance to keep working for years.

The post How much passive income could a $500,000 superannuation balance generate? appeared first on The Motley Fool Australia.

More reading

• $10,000 a year in passive income buying just $10k worth of ASX shares? Here’s how I’d go about it
• How much do I need in my superannuation to earn $10,000 passive income every month?
• Post-earnings: I’d buy these ASX dividend stocks for income today
• How I’d target $5,000 a year in passive income from ASX shares
• These ASX shares benefit from a high Aussie dollar

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

The S&P/ASX 200 Index (ASX: XJO) is heading lower on Tuesday, with the market dropping back below 9,000 points.

At the time of writing, the benchmark index is down 0.68% to 8,949 points.

That puts the ASX 200 at its lowest level in 3 sessions and wipes out Monday’s small gain, when the index closed at 9,010 points.

The selling is also fairly widespread. Around 115 ASX 200 shares are falling, compared with 70 trading higher and 15 unchanged.

So, what is weighing on the market today?

Oil is back near US$100

Oil prices are getting plenty of attention after another skirmish in the Middle East conflict.

Brent crude settled at US$97.31 a barrel on Monday after reaching US$98.06, its highest level since late July. It is trading around US$96.80 this morning.

The move followed another escalation between the US and Iran, including attacks involving oil tankers and warships around the Strait of Hormuz.

That’s keeping concerns around energy prices, inflation and interest rates in focus.

There was also little direction from Wall Street overnight, with the US stock market closed for the Labor Day public holiday.

Heavyweights are pulling the index lower

Several of the ASX 200’s largest companies are trading lower this morning.

Commonwealth Bank of Australia (ASX: CBA) shares are down 0.64% to $160.51, while ANZ Group Holdings Ltd (ASX: ANZ) shares have fallen 0.61% to $37.70.

CSL Ltd (ASX: CSL) shares are down 0.81% to $171.79, and Wesfarmers Ltd (ASX: WES) has slipped 0.40% to $76.99.

REA Group Ltd (ASX: REA) is also among the weaker large-cap shares, falling 1.22% to $161.17.

Resources are holding up better

The resources sector is providing some support, helped by higher commodity prices.

BHP Group Ltd (ASX: BHP) shares are almost flat at $62.94, while copper prices have climbed to record levels in London trading.

Gold miners are also doing better. Northern Star Resources Ltd (ASX: NST) shares are up 0.77% to $23.47, while Evolution Mining Ltd (ASX: EVN) shares are 0.27% higher at $14.94.

Santos Ltd (ASX: STO) shares are up 0.36% to $8.38 as energy stocks benefit from higher oil prices.

Foolish takeaway

What I find more interesting is how quickly the ASX 200 has lost momentum over the past month.

The index was trading above 9,250 points in mid-August, but has now fallen by more than 3% from those levels.

Yes, that’s still only a modest pullback. But with oil prices rising and interest rate concerns hanging around, investors may need to get used to a bit more volatility.

The post The ASX 200 has dropped to a 3-day low. Here’s what’s happening appeared first on The Motley Fool Australia.

More reading

• Why this news from China has changed the outlook for BHP shares
• UBS names its 10 top ASX picks for the next 3-6 months
• Are CSL shares still cheap after almost doubling since June?
• Top 3 ASX shares to buy with $3,000 in September
• Which ASX shares win when the Aussie dollar is strong?

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

Bubs Australia Ltd (ASX: BUB) shares soared on Monday this week when the company announced it had secured approval to supply the US market with its infant formula products.

Bell Potter has since upgraded its price target on the company, and the analyst team believes there’s about 46% more upside in the shares as a result of the announcement.

I’ll get to their exact share price target on the stock shortly.

First let’s look in some more detail at what the company announced this week.

Key US approval is in the bag

Bubs said in a statement to the ASX that it had secured permanent US Food and Drug Administration (FDA) approval for its Bubs Goat, Bubs 365 Day Grass Fed and Bubs Essential infant formula products.

The company said the authorisation confirms that Bubs products, manufacturing systems and scientific evidence satisfy US regulatory requirements for safety, nutritional adequacy and quality.

The company added:

The United States infant formula market is one of the most highly regulated consumer categories globally, with substantial scientific, regulatory and manufacturing requirements for entry. Permanent FDA authorisation strengthens Bubs’ competitive position as the only Australian infant formula brand and one of a limited number of international manufacturers able to participate in this market. The approval provides a foundation for continued growth across Bubs’ branded portfolio while creating strategic optionality for future product innovation and market expansion.

Bubs Managing Director Joe Coote said it was a “transformational milestone” for the company.

He added:

This approval provides the platform to accelerate our US growth strategy, deepen retailer partnerships, strengthen consumer awareness of the Bubs brand and expand consumer reach across a market where we are already represented in more than 10,000 stores nationwide. Importantly, it also creates additional opportunities to broaden our product offering and evaluate participation in the US private label infant nutrition segment. While any private label expansion remains subject to further regulatory, technical and commercial milestones, the FDA authorisation represents a significant strategic asset that we consider enhances Bubs’ long-term growth potential.

Bubs Australia shares looking cheap

Bell Potter said in a research note to clients that the authorisation was a “material derisking event” for Bubs.

The broker added:

It has been overhanging the stock for some time and is now resolved. Our forecasts already assume ongoing US market access, but having gained USFDA approval, there may be a pathway to accelerate distribution point expansion beyond current projections.

Bell Potter has increased its price target on Bubs Australia shares from 13.5 cents to 19 cents, comparted to the current price of 13 cents.

Bubs is valued at $89.4 million.

The post How high could Bubs Australia shares go, according to Bell Potter? appeared first on The Motley Fool Australia.

More reading

• Bubs shares just rocketed 40%. Here’s the news investors were waiting for
• This ASX share jumped 7% before a trading halt. What’s going on?
• How high do brokers think Bubs Australia shares will go?

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

BHP Group Ltd (ASX: BHP) shares rose again on Monday on a report out of China.

The country’s largest steelmaker is considering buying into one of the BHP’s biggest iron ore mines.

What does this mean for BHP?

Well, this piece of news points to a change in how Australia’s biggest miner and its biggest customer deal with each other.

What China’s Baowu is proposing

China Baowu Steel Group is reportedly weighing a minority stake in BHP’s Jimblebar operation in the Pilbara.

The range under discussion is 15% to 25%.

The stake would come out of BHP’s own 85% holding, with Itochu and Mitsui owning the remaining 15%.

Jimblebar is not a peripheral asset.

The operation produced roughly 62.5 million tonnes in FY26, close to a quarter of BHP’s total iron ore output.

BHP responded to the reports without confirming anything.

BHP notes the recent media speculation regarding a potential partnership involving part of the Western Australia Iron Ore (WAIO) business. BHP has a long history of partnerships at its assets and regularly explores options that may create long-term value to its shareholders.

Why this matters more than the price move for BHP shares

Context is everything here.

Until April, China Mineral Resources Group was restricting purchases of BHP’s US dollar-denominated cargoes.

That pricing dispute ran for roughly seven months.

CMRG negotiates contracts covering more than half of China’s iron ore imports.

It was resolved shortly after Brandon Craig met leaders of both CMRG and Baowu in Beijing.

Craig became BHP’s chief executive on 1 July.

A customer that owns part of the mine has a very different set of incentives in the next pricing negotiation.

That is the real significance for BHP shares.

The precedent at Rio Tinto

This would not be the first time Baowu has bought into the Pilbara.

Rio Tinto Ltd (ASX: RIO) opened the Western Range mine with Baowu in June 2025.

The US$2 billion joint venture is owned 54/46 and can produce up to 25 million tonnes a year.

The model already exists and it already works.

The contrast between the two miners is important to highlight.

BHP settled with CMRG in April.

Rio Tinto has not, and in August CMRG reportedly instructed some Chinese mills to halt negotiations with the company over shipments from September.

Rio Tinto delivered a strong first half regardless, with underlying EBITDA up 28% to US$14.8 billion and the interim dividend up 43%.

What it means for BHP shares from here

The underlying business is in good shape.

FY26 revenue rose 15% to US$58.8 billion, underlying EBITDA rose 27% to US$32.9 billion, and underlying attributable profit rose 30% to US$13.2 billion.

Net debt fell to US$8.7 billion and the full-year dividend was 172 US cents fully franked.

Iron ore production reached 265 million tonnes at a unit cost of US$19.66 a tonne.

That is the lowest among the majors for a seventh straight year.

The obstacles are somewhat political.

The Federal Opposition has already objected to a Chinese stake in a major Western Australian iron ore mine, and foreign investment approvals in resources have tightened considerably.

No decision has been made and there is no certainty any transaction follows.

Foolish takeaway

BHP shares are up roughly 50% over twelve months and about 10% below the record high set on 26 August.

The broker consensus target of around $59 sits below the current price.

A lot of optimism is already priced in.

I would not buy on the Baowu headline alone, because it is speculation and it faces a potential political challenge.

What it does signal is that BHP has repaired the most important commercial relationship it has.

The post Why this news from China has changed the outlook for BHP shares appeared first on The Motley Fool Australia.

More reading

• Why I’d wait to buy BHP shares in superannuation
• How much do I need in my superannuation to earn $10,000 passive income every month?
• Why is everyone talking about China and BHP shares today?
• These ASX shares benefit from a high Aussie dollar
• This ASX 200 giant is up 37% in 2026. Is the pullback worth buying?

Motley Fool contributor Mark Verhoeven 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.

Investors looking for ideas over the next few months have a new list to work through.

UBS has released its latest “Top Picks” list, naming 10 ASX shares its analysts see as the most compelling opportunities over the next 3 to 6 months.

The list is selected from a wider pool of 30 stocks and is updated each month.

So, which ASX shares made the cut this time?

Resources and industrials are in hot demand

UBS says the August reporting season reinforced what it describes as a “capex over consumer” cycle.

The broker sees stronger conditions in areas benefiting from spending on data centres, mining, energy and defence, while consumer-facing parts of the market look less attractive.

Several of the stocks on the list fit that view.

They include Genesis Minerals Ltd (ASX: GMD), which finished Monday at $8.17, Mineral Resources Ltd (ASX: MIN) at $63.06, Orica Ltd (ASX: ORI) at $22.95 and Ventia Services Group Ltd (ASX: VNT) at $5.73.

UBS is currently overweight both the mining and industrial sectors.

Megaport Ltd (ASX: MP1) also makes the cut. The data centre connectivity company closed Monday at $17.13 after a strong run this year, up 45%.

The full UBS top 10

The rest of the list is a pretty much a mixed bunch.

Auckland International Airport Ltd (ASX: AIA) finished Monday at $6.99, while AMP Ltd (ASX: AMP) closed at $2.48.

Healthcare heavyweight CSL Ltd (ASX: CSL) ended the session at $173.18, while gaming company Light & Wonder Inc (ASX: LNW) finished at $125.30.

Sigma Healthcare Ltd (ASX: SIG) rounds out the list after closing Monday at $2.69.

That gives UBS a mix of mining, infrastructure, technology, healthcare, financial and consumer-related exposure.

It’s also worth remembering these are short-term picks, not necessarily the stocks UBS likes best over the next 5 or 10 years.

The list can change quickly as share prices and earnings expectations move on the daily.

What is UBS avoiding?

Just as interesting is where UBS is more cautious.

The broker isn’t keen on banks, consumer discretionary shares and real estate, with higher RBA interest rates and weaker sentiment making life tougher across those parts of the market.

UBS thinks that could lead to more earnings-per-share (EPS) downgrades in the months ahead.

That leaves the broker leaning more heavily towards companies exposed to business investment and infrastructure spending.

Of course, these are only 3-to-6-month picks, and UBS refreshes the list every month.

I’d be interested to see which of these 10 are still there next time around.

The post UBS names its 10 top ASX picks for the next 3-6 months appeared first on The Motley Fool Australia.

More reading

• Are CSL shares still cheap after almost doubling since June?
• 5 things to watch on the ASX 200 on Tuesday
• CSL led the ASX healthcare shares rebound. Can it continue?
• These ASX shares benefit from a high Aussie dollar
• Buy, hold, sell: Megaport, Xero, AMP shares

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

There are plenty of interesting investment opportunities available on the ASX share market right now.

The experts in charge of WAM Capital Ltd (ASX: WAM) have outlined some compelling opportunities in its portfolio that have pleasing outlooks.

WAM Capital is a listed investment company (LIC) – a company that invests in other shares to generate profits for shareholders. Which ASX shares? The LIC wants to find the “most compelling undervalued growth opportunities in the Australian market”.

Let’s dive into the two stocks that Wilson Asset Management highlighted as ideas in its August 2026 update.

EVT Ltd (ASX: EVT)

The first ASX share that WAM discussed was EVT, an Australian leisure and property company that operates cinemas, hotels and commercial properties. Its cinema chains are reportedly the largest in Australia and New Zealand.

The fund manager noted that the EVT share price rose in August following the release of its FY26 annual result. It shot up 18% during last month.

Wilson Asset Management highlighted that the ASX share’s reported net profit after tax (NPAT) rose 51.9% year-over-year to $50.7 million. The company’s board of directors declared a fully franked final dividend of 23 cents per share, representing a year-over-year rise of 4.5%.

WAM said that the FY26 result was ahead of the consensus of analysts’ expectations, driven by the cinema segment.

The fund manager also noted the business plans to divest approximately $800 million of non-core property assets, as well as an independent strategic review of the group structure.

WAM said the proposed asset divestments are expected to support hotel growth and potential special dividends, while the strategic review is a potential catalyst to unlock further shareholder value.

FDC Consolidated Holdings Ltd (ASX: FDC)

The other ASX share that Wilson Asset Management wanted to highlight was FDC, an integrated construction and building services company that delivers major construction, fit-out and refurbishment solutions across Australia.

The FDC share price also increased by 19% in August 2026. This positive performance was in response to the company’s first annual result as an ASX-listed company.

FDC reported that revenue grew by 13% year-over-year, which reflected the strength of its diversified business model and national footprint, according to WAM. There was double-digit growth across its construction, fit-out and refurbishment segments.

WAM then pointed out that FDC also reaffirmed its FY27 prospectus forecasts and highlighted a diversified project pipeline, which supported confidence in the ASX share’s future earnings growth.

The post Why a fund manager loves these ASX shares right now appeared first on The Motley Fool Australia.

More reading

• 40 ASX shares with ex-dividend dates next week
• Ouch: WAM Capital shares crash 15% as dividend cut in half
• WAM Capital trims FY27 dividend after portfolio setback in FY26
• Here are the top 10 ASX 200 shares today
• EVT Ltd posts profit jump and pivots focus to hotel growth in FY26 results

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.

CSL Ltd (ASX: CSL) shares have been one of the more spectacular ASX recovery stories of the past few months.

After a difficult period for the healthcare giant, investors have returned quickly as confidence in its earnings outlook improved.

With the shares now trading around $173.18, I think the valuation deserves another look.

A very different price

Back in June, CSL shares could be bought for just $90.

At that level, I thought the stock looked dirt cheap for a global healthcare business with strong market positions across plasma therapies, vaccines, and specialist medicines.

The market clearly agreed eventually. At around $173.18 on Tuesday, CSL shares have almost doubled in roughly three months.

That is an extraordinary move for a company of this size, and it changes the valuation discussion quite considerably.

The easy answer is that CSL is no longer cheap in the way it was at $90.

But I do not think that automatically makes the shares expensive.

What does the valuation look like now?

According to consensus estimates, CSL is expected to generate earnings per share of $9.01 in FY27, rising to $9.51 in FY28 and $10.10 in FY29.

At the current share price, that puts CSL on a PE ratio of roughly 19 times forecast FY27 earnings.

While I would not call that cheap, I think it is still a reasonable price for a business with CSL’s global position and the prospect of returning to steady earnings growth.

The valuation also becomes a little more attractive if those earnings forecasts are delivered. Based on the FY29 estimate, the shares are trading at around 17 times earnings.

That gives investors some room for the earnings recovery to do more of the work from here.

Why I still see value

CSL still has several qualities I like as a long-term investment.

Its plasma collection network, scale in immunoglobulin therapies, and established global operations are difficult to replicate.

There is also potential for earnings to improve as the business works through the operational issues and restructuring that weighed on investor confidence previously.

I would not expect the next few years to be completely smooth.

CSL still needs to show that it can deliver the earnings recovery the market is now pricing in, and any disappointment could put pressure on the share price after such a strong rebound.

Even so, I think the current valuation leaves the stock in a reasonable position if earnings continue moving higher.

Foolish takeaway

CSL shares looked exceptionally cheap around $90 in June.

At $173.18, I do not think that description fits anymore.

The shares have almost doubled, and investors are now paying around 19 times forecast FY27 earnings.

For me, that moves CSL from dirt cheap to decent value.

I would still be comfortable buying at today’s price for the long term, but I think the opportunity now rests much more on future earnings growth than on an obviously depressed valuation.

The post Are CSL shares still cheap after almost doubling since June? appeared first on The Motley Fool Australia.

More reading

• UBS names its 10 top ASX picks for the next 3-6 months
• CSL led the ASX healthcare shares rebound. Can it continue?
• These ASX shares benefit from a high Aussie dollar
• CSL shares are up 94% from their low. What are brokers forecasting next?
• Looking to bank the upcoming CSL dividend? You better hurry!

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

Three thousand dollars is a good starting point for buying ASX shares.

The important element to focus on is diversification.

The three companies below are chosen to do different jobs.

One pays you now, one is geared to markets, and one is as close to defensive as our market gets.

1. Woodside Energy Group Ltd (ASX: WDS)

Woodside is the income anchor.

The shares trade near $32.33 on a price-to-earnings ratio of about 14.5 and a fully franked yield close to 5%.

That is the cheapest multiple and the highest yield of the three by a wide margin.

However, the company is still performing. The first half of calendar 2026 demonstrated this.

Operating revenue rose 13% to US$7.45 billion and net profit after tax reached US$1.67 billion.

Production came in at 86.5 million barrels of oil equivalent, and the interim dividend was 57 US cents fully franked at an 80% payout ratio.

Gearing is at 20.6%, marginally above the target range, which is the one number worth watching.

There are many things to like about this company.

2. Macquarie Group Ltd (ASX: MQG)

Macquarie Group is the geared exposure to markets.

FY26 net profit rose 30% to $4.85 billion, return on equity recovered to 14.0%, and earnings per share climbed 30% to $12.77.

The company’s full-year dividend was $7.00, though only 35% franked, which is important if you are buying this stock for income.

Importantly, assets under management reached $748 billion at 30 June, up 4% in a quarter.

Chief executive Shemara Wikramanayake described the year in characteristically measured terms:

Each of our businesses used its specialist expertise in navigating the current environment, identifying opportunities that support long-term growth and delivering positive outcomes for our clients and communities.

At current levels the shares trade on a price-to-earnings ratio near 19.7, which is not obviously cheap.

The future investment case depends on Commodities and Global Markets and Macquarie Capital both still running hot.

3. Wesfarmers Ltd (ASX: WES)

Wesfarmers is the awkward stock in this list.

Results were good: FY26 revenue rose 3.4% to $47.3 billion and net profit excluding significant items rose 8.3% to $2.87 billion.

Bunnings lifted earnings before tax 5.1% to $2.46 billion and Kmart Group added 6.0% to $1.11 billion.

The company’s full-year dividend rose 7.8% to $2.22 fully franked.

The problem however is the price.

At $77.30 the shares trade on a price-to-earnings ratio above 30 for a business growing revenue at 3.4%, and the broker consensus sits at a modest sell.

I still want it here, because a strong Australian dollar is lowering Kmart’s landed costs and the shares are already down more than 13% over twelve months.

Managing director Rob Scott pointed to the operating discipline behind the result:

Our businesses focused on mitigating cost pressures through productivity initiatives and were able to deliver more value, better service and increased convenience for our retail and business customers.

Why these ASX shares work together

They barely overlap.

Woodside is leveraged to LNG prices and a project starting up this quarter.

Macquarie rises and falls with market activity and deal flow.

Wesfarmers depends on Australian households and imported goods.

A poor year for one does not mean a poor year for the others.

Foolish takeaway

None of these three ASX shares are bargains, and only Woodside looks cheap.

What the current package gives you is a 5% franked yield, exposure to global markets, and a defensive retailer bought after a 13% fall.

Woodside is the one I would size largest, because the dividend is paid whether or not the share price cooperates.

Wesfarmers is the one that needs the most patience, given where the multiple sits.

Three thousand dollars invested this September will not change your life, and that has never been the point of buying ASX shares.

The post Top 3 ASX shares to buy with $3,000 in September appeared first on The Motley Fool Australia.

More reading

• Which ASX shares win when the Aussie dollar is strong?
• $10,000 a year in passive income buying just $10k worth of ASX shares? Here’s how I’d go about it
• These ASX shares benefit from a high Aussie dollar
• How Woodside shares are building a ‘unique position’ to supply global LNG markets
• What Warren Buffett’s investing style can teach superannuation investors

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