Author: openjargon

The global security landscape has shifted dramatically in recent years. 

Countries around the world are increasing their spending commitments, led by Europe and the United States, which are investing more and more into their defence budgets.

Australia has a vibrant defence industry that will benefit from this structural tailwind. 

The question for investors is which stocks can best capture this opportunity?

DroneShield Ltd (ASX: DRO)

DroneShield has become one of the most closely watched and exciting defence technology stocks on the ASX, and for good reason.

The company develops artificial intelligence-enabled counter-drone systems used by military forces, governments, and critical infrastructure operators around the world. 

In FY 2025, DroneShield posted revenue of $216.5 million, up 276% year on year, and a $3.5 million profit.

The company also reported a $2.3 billion sales pipeline and confirmed that $104 million in revenue for 2026 had already been secured. 

It is still early days in the DroneShield story, and with a premium valuation, many risks still exist for the investment thesis. 

But the focus on counterdrone technology is definitely a strong tailwind that will provide many future growth opportunities. 

A recent pullback in the share price due to an ongoing ASIC investigation may provide investors with an attractive entry point. 

The one question investors should be asking is to what point this future growth has already been priced in?

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic Systems develops and manufactures advanced electro-optic technologies for defence and space markets, including remote weapon systems, high energy laser weapons, and counter-drone solutions. 

Clearly in a massive growth phase, the company signed $424 million worth of contracts during FY 2025, compared to just $70 million in FY 2024. 

Key wins included a $125 million high energy laser weapon export contract, the world’s first of its kind, a $108 million LAND 400-3 remote weapon systems contract, and multiple Slinger counter-drone system orders. 

The company ended FY 2025 with $106.9 million in cash after repaying all borrowings, giving it a clean balance sheet heading into a busy delivery year. 

Bell Potter seems to agree on the positive direction of the company: 

We retain our Buy rating and [increase] our TP to $10.40 on lower CY27e earnings. EOS is positioned as a market leader in C-UAS solutions, particularly in directed energy, and is leveraged to increasing budget allocations to C-UAS technologies. Through both its kinetic and directed energy solutions, EOS has a long runway for growth.

Austal Ltd (ASX: ASB)

Austal is a more established name in the defence space and offers a compelling investment proposition.

The company is Australia’s largest defence shipbuilder, designing and constructing advanced naval and patrol vessels for governments and defence forces around the world, operating yards in Australia, the United States, Vietnam, and the Philippines. 

Austal has had great momentum as of late, winning many key contracts. 

As of February 2026, Austal carried a record order book of $17.7 billion in contracted work, up from $13.1 billion just eight months earlier. 

Recent highlights include a $1.029 billion contract to build 18 Landing Craft Medium vessels for the Australian Army, and a separate approximately $4 billion contract to build eight Landing Craft Heavy vessels under the Commonwealth’s Strategic Shipbuilding Agreement. 

Austal’s contracts are often long term, providing a very sticky revenue base for the company. 

Austal has over a decade of work now locked in, offering investors a level of revenue visibility that is rare among ASX-listed companies of its size.

Foolish Takeaway

The structural shift in global security spending looks set to persist for years.

DroneShield and EOS offer higher-risk, higher-upside exposure to this trend.

Austal, on the other hand, with a record order book and long-term government contracts already on hand,  provides investors a more grounded and established investment opportunity.

The post 3 ASX stocks positioned to benefit from rising global defence budgets appeared first on The Motley Fool Australia.

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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 DroneShield and Electro Optic Systems. 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 Temple & Webster Group Ltd (ASX: TPW) share price is in focus after the company reported record April EBITDA of approximately $2.5 million and projected FY26 revenue growth of up to 12%.

What did Temple & Webster report?

• EBITDA for April 2026 was around $2.5 million, the most profitable April in company history
• FY26 revenue is forecast at $665–675 million (up 11–12% versus prior year)
• FY26 EBITDA guidance of $20–22 million (up 6–17%)
• FY27 EBITDA expected to double to roughly $40 million even in a flat growth environment
• Ongoing margin optimisation program successfully implemented

What else do investors need to know?

Temple & Webster has responded to record-low consumer confidence by rebalancing between profit and growth. The company introduced new promotional strategies, repriced its entire catalogue, and slowed the increase in fixed costs to improve profitability.

Management highlighted that these efficiency measures have delivered better monthly profits and established a clear path to increased earnings. The business also has a strong balance sheet and substantial headroom to continue its on-market share buy-back.

What did Temple & Webster management say?

Temple & Webster CEO Mark Coulter said:

We remain firmly focused on growing our market share and reaching $1 billion in revenue by FY28, and becoming a larger, more profitable business. However right now, given the uncertainty in the Australian economy, we have prudently chosen to rebalance between profit and growth in our core business.

What’s next for Temple & Webster?

Looking ahead, Temple & Webster expects profitability to improve further in FY27, with EBITDA potentially doubling, supported by current margin run-rates. The company aims to invest in its platform and expand its private label and exclusive products, while also taking advantage of opportunities in home improvement, B2B, and international markets.

Temple & Webster’s strong financial position should enable continued investment in organic growth, selective acquisitions, and capital management initiatives as the company pursues its $1 billion revenue target by FY28.

Temple & Webster share price snapshot

Over the past 12 months, Temple & Webster shares have declined 72%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Temple & Webster posts record April profit and FY26 upgrade appeared first on The Motley Fool Australia.

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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 positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. 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.

The Commonwealth Bank of Australia (ASX: CBA) share price is in focus today as the bank released its Basel III Pillar 3 Capital Adequacy and Risk Disclosures for the quarter ended 31 March 2026. Key highlights include a Common Equity Tier 1 (CET1) ratio of 11.6% and a total capital ratio of 20.0%.

What did Commonwealth Bank of Australia report?

• Common Equity Tier 1 (CET1) capital ratio was 11.6%, up 7 basis points from the prior quarter.
• Total capital ratio stood at 20.0%, down slightly from 20.6% at 31 December 2025.
• Total risk weighted assets (RWA) increased 2.4% to $517.5 billion.
• Liquidity Coverage Ratio (LCR) averaged 133% for the quarter.
• Leverage ratio measured at 4.4%, remaining well above the required 3.5% minimum.

What else do investors need to know?

The growth in RWAs during the quarter was largely driven by higher interest rate risk in the banking book, as well as ongoing lending growth. Credit risk RWA rose 1.3% to $414.6 billion, notably across commercial lending and mortgages in both Australia and New Zealand.

The Group undertook several capital initiatives, including the completion of an on-market share purchase to satisfy its Dividend Reinvestment Plan and the issuance of $1.85 billion in new subordinated notes to strengthen Tier 2 capital. Liquidity and funding ratios remained strong, with the Net Stable Funding Ratio (NSFR) at 116%.

What’s next for Commonwealth Bank of Australia?

CBA noted it will remain focused on prudent management of capital, funding, and liquidity as it navigates evolving economic conditions. The bank aims to provide stability and support to customers while meeting all APRA regulatory requirements. Ongoing efforts to strengthen earnings and maintain a resilient balance sheet are expected to continue.

Commonwealth Bank of Australia share price snapshot

Over the past 12 months, CBA shares have risen 3%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Commonwealth Bank of Australia posts Q3 2026 capital update appeared first on The Motley Fool Australia.

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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.

The Aristocrat Leisure Ltd (ASX: ALL) share price is in focus after the company reported its half-year FY26 result, including a 16% surge in NPATA and 19% growth in EPSA.

What did Aristocrat Leisure report?

• Total segment revenue of $3.03 billion, up 6.4% in constant currency
• NPATA rose 16% to $794 million
• EBITDA grew to $1.32 billion, up 13.1%
• EPSA (fully diluted) increased 19% to 129.0 cents
• Interim unfranked dividend of 50 cents per share (up 13.6%)
• Roughly $1 billion returned to shareholders through dividends and buy-backs

What else do investors need to know?

Aristocrat saw standout growth in its core Gaming and Social Casino (Product Madness) segments, with both market share and recurring revenue on the rise. The Gaming business grew installed machine share to 43% in North America and nearly doubled ANZ unit sales, contributing to record profitability.

The Interactive segment delivered strong iLottery and content revenue, further diversifying growth avenues. The group remains focused on disciplined capital management while investing in design, development, and expanding AI capability across its businesses.

What’s next for Aristocrat Leisure?

Looking ahead, management expects FY26 NPATA growth, supported by continued momentum in Gaming and Interactive, and accelerating content expansion. Aristocrat is targeting 4,000–5,000 net new gaming units this year and remains on track towards its US$1 billion FY29 Interactive revenue target.

Further investment in design, development, and AI is planned to drive efficiencies and sustain Aristocrat’s position as a market leader, alongside an ongoing focus on shareholder returns.

Aristocrat Leisure share price snapshot

Over the past 12 months, Aristocrat Leisure’ shares have declined 33%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Aristocrat Leisure posts double-digit profit and dividend growth in HY26 appeared first on The Motley Fool Australia.

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• Paladin Energy posts profit as revenue rebounds in FY26 earnings
• Temple & Webster posts record April profit and FY26 upgrade
• Commonwealth Bank of Australia posts Q3 2026 capital update
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• Here are the top 10 ASX 200 shares today

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.

The exchange-traded fund (ETF) Betashares Nasdaq 100 ETF (ASX: NDQ) has delivered great returns over the long-term. But, investors may be questioning whether it’s actually worth investing in at this level.

One of the best pieces of investment advice that helps investors outperform the market, in the long-term, is “be fearful when others are greedy and greedy when others are fearful”.

As the above chart shows, the NDQ ETF reached an all-time high this week. It certainly doesn’t seem as though investors are fearful about the companies within the NDQ ETF portfolio right now.

Yes, I’d much rather invest when the unit price was below $50 – significantly below where it is today – but we don’t know if or when the unit price will get back to that level.

The question is – is it worth investing in today at this high valuation? I think investors should remember one key factor.

Great businesses continue growing earnings

The NDQ ETF is invested in 100 of the largest non-financial businesses in the US.

The biggest positions in the portfolio include Nvidia, Alphabet, Apple, Microsoft, Amazon¸ Tesla and Micron Technology.

These businesses have collectively soared over the last few years, largely because they have grown their earnings as a group. The NDQ ETF has justified capital growth because the underlying companies are driving impressive financial progress.

As the chart below shows, the fund’s unit price has increased by more than 100% in the past five years.

These businesses are regularly releasing new products and services, as well as implementing price rises on some products. New phones, devices, accessories, subscriptions – earnings have been driven by product developments and market share gains.

AI is one of the latest and biggest things the US tech giants are focused on. It’s not quite clear how they’re going to monetise AI to make a reasonable return on all of the expenditure on AI-related efforts.

If a company continues growing profit, it’s very likely to send the share price higher. The business can grow into a valuation.

Final thoughts on the NDQ ETF

So, while it’s true it’s not cheap at an all-time high, it’s also true that it has hit an all-time high numerous times over the last five years, as the chart below shows.

It has reached plenty of highs before and kept growing thanks to the quality of the businesses involved.

I think the same can continue over the long-term, so I’d be happy to invest in the NDQ ETF today, though I’d start with a small position following its 20% rise since the end of March, at the time of writing.

The post Why invest in Betashares Nasdaq 100 ETF (NDQ) at an all-time high? appeared first on The Motley Fool Australia.

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

Fortunately for income investors, the Australian share market is home to a large number of ASX dividend shares.

To narrow things down, let’s look at three high-yield options that brokers are tipping as buys this week. They are as follows:

Cedar Woods Properties Limited (ASX: CWP)

Bell Potter has named Cedar Woods as an ASX dividend share to buy.

Cedar Woods is one of Australia’s leading property companies. It owns a high-quality portfolio that is diversified by geography, price point, and product type. This leaves it well-positioned to benefit from Australia’s chronic housing shortage.

Bell Potter is positive on the company’s outlook. It is expecting Cedar Woods to be in a position to pay fully franked dividends per share of 38 cents in FY 2026 and then 41 cents in FY 2027. Based on its current share price of $7.20, this equates to 5.3% and 5.7% dividend yields, respectively.

The broker has a buy rating and $9.65 price target on its shares.

IPH Ltd (ASX: IPH)

Another ASX dividend share that is being tipped as a buy is IPH.

It is an intellectual property services company, providing patent and trademark services across multiple jurisdictions through a large number of brands.

IPH has a long history of paying attractive dividends to its shareholders thanks to its strong cash flow generation.

The team at Morgans is bullish and is expecting the company to pay fully franked dividends of 38 cents per share in FY 2026 and then 39 cents per share in FY 2027. Based on its current share price of $3.58, this equates to dividend yields of 10.6% and 10.9%, respectively.

Morgans has a buy rating and $5.39 price target on the company’s shares.

Premier Investments Ltd (ASX: PMV)

A third ASX dividend share that could be a buy according to analysts is Premier Investments.

It owns the popular Smiggle and Peter Alexander brands and holds a significant investment portfolio.

While trading conditions have been tough, Macquarie believes Premier Investments is positioned to continue paying attractive dividends to shareholders. This is largely due to the strength of the Peter Alexander brand.

Macquarie is expecting fully franked dividends of 95.2 cents per share in FY 2026 and then 97.4 cents per share in FY 2027. Based on its current share price of $12.01, this would mean generous dividend yields of 7.9% and 8.1%, respectively.

Macquarie has an outperform rating and $16.90 price target on its shares.

The post 3 ASX dividend shares to buy for 5% to 10% yields appeared first on The Motley Fool Australia.

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

Light & Wonder Inc (ASX: LNW) is one of Australia’s largest consumer discretionary shares.

It is a leading global cross platform games company that operates three cohesive segments in the gaming sector.

It has been in focus this week after the company released quarterly results.

The company’s net income came in at US$52 million, down 37% on the first quarter the previous year.

Net income fell 37% to US$52 million, while diluted net income per share declined 30% to US$0.66.

Management attributed the decline largely to approximately US$50 million in legal reserve contingencies associated with legacy legal matters.

Light and Wonder shares have experienced some volatility since reporting, and ultimately are down 29% from the start of the year. 

Here is the latest guidance from Morgans following last week’s results. 

Softer than expected

Morgans said Light & Wonder delivered a softer than expected 1Q26 result missing Morgans and consensus on revenue and AEBITDA in what is seasonally the group’s weakest quarter. 

The North American Gaming operations installed base was the standout negative surprise – ex-Grover net installs of -420 units, driven by the earlier than anticipated Resorts World New York VLT to Class III conversion – compounded by weak international machine sales and ongoing SciPlay softness. Grover delivered a strong 660 sequential net adds on Indiana market entry, and AEBITDA margins expanded across every segment.

Buy rating retained 

Based on this guidance, Morgans has retained its buy recommendation, but lowered its 12-month target price to $168 (previously A$183) on Light and Wonder shares.

The market’s 8% sell-off reflects legitimate frustration, though at ~10x forward PER and an FY26-28F EPSA CAGR of 17%, we view the dislocation as an opportunity.

From yesterday’s closing price of $110.30, this indicates an upside potential of 52%. 

Other brokers weigh in

Light & Wonder shares are drawing attention from other brokers too. 

It seems sentiment around the market suggests Light & Wonder shares could now be significantly undervalued.

Following its results, both UBS and Macquarie updated their guidance on the gaming stock. 

Macquarie’s price target on the stock is $200, while UBS has a price target of $210 on Light & Wonder shares.

The broker said they were confident the company could deliver 5% to 9% EBITDA growth this year.

Elsewhere, Bell Potter have retained their buy rating on this gaming technology company’s shares with a reduced price target of $190.00. 

These estimates between $190 and $210 indicate upside potential of between 72% and 90%. 

The post Why do brokers believe Light & Wonder shares could rise between 72% and 90%? appeared first on The Motley Fool Australia.

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

ASX tech stock Megaport Ltd (ASX: MP1) has exploded higher over the past month, leaving many investors wondering whether the rally is only getting started.

The $2 billion share has surged more than 50% in just one month, dramatically outperforming the S&P/ASX All Technology Index (ASX: XTX), which has gained roughly 4% over the same period.

Despite the sharp rebound, Megaport shares are still down around 19% year to date at the time of writing, roughly in line with the broader ASX tech stock benchmark.

So, could Megaport still have room to double from here?

Powering global data flow

Megaport operates a global network-as-a-service platform that enables businesses to instantly connect to cloud providers, data centres, and internet infrastructure worldwide.

In simple terms, the ASX tech stock helps enterprises move and manage massive amounts of data quickly and securely without needing to build expensive physical infrastructure.

That positioning is becoming increasingly valuable as artificial intelligence, cloud computing, and digital infrastructure demand continue to accelerate globally.

Importantly, Megaport generates recurring revenue through long-term customer contracts, giving investors exposure to scalable software-like earnings growth.

AI demand continues driving growth

One major reason investors remain bullish on this ASX tech stock is its growing exposure to AI-driven infrastructure demand.

Megaport recently announced a major new compute and storage customer contract valued at approximately US$25.1 million, or around $35.4 million, over 36 months. The agreement adds approximately US$8.4 million, or A$11.8 million, in annualised recurring revenue (ARR).

That matters because recurring revenue growth is often a key driver of higher valuations for technology companies.

Management said its subsidiary Latitude.sh is ideally positioned as a critical infrastructure platform to continue capturing “unprecedented AI-driven demand for CPU, GPU and storage”. As global businesses invest heavily in artificial intelligence systems and high-performance computing, demand for scalable network infrastructure may continue rising rapidly.

Strong recurring revenue momentum

The ASX tech stock is also continuing to deliver impressive underlying growth metrics.

Megaport’s network ARR reached $272 million as at 31 March 2026, representing 23% year-over-year growth on a constant currency basis. Those are strong growth figures in a market where many technology companies are struggling to maintain momentum.

The company’s expanding customer base, growing enterprise demand, and increasing exposure to AI infrastructure are helping support investor optimism despite broader volatility across the technology sector.

Risks remain

Of course, risks still exist. Technology shares can remain highly volatile, particularly when valuations become stretched after sharp rallies. Megaport also faces intense competition in cloud infrastructure and connectivity markets.

Profitability and execution will remain key areas investors watch closely.

Still, analyst sentiment currently appears very positive. According to TradingView data, 12 of 15 brokers rate the ASX tech stock as either a buy or strong buy, while the remaining three have hold recommendations.

The average analyst price target currently sits at $15.32, implying roughly 55% upside from current levels. Meanwhile, the most bullish analyst valuation suggests the stock could climb as high as $24. That points to a potential upside of around 142%.

The post After a 50% surge, could this ASX tech stock still double? 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 Megaport. 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 iShares S&P 500 ETF (ASX: IVV) is a very popular option and it isn’t hard to see why.

It is one of the simplest ways for Australian investors to access the US share market.

Rather than trying to pick individual American stocks, this exchange traded fund (ETF) gives investors exposure to the S&P 500 index through a single trade.

Here are three reasons why it could be worth buying and holding for the long term.

IVV ETF provides exposure to world-class companies

The first reason to consider the fund is the quality of the businesses inside the fund.

The S&P 500 is home to many of the largest and most influential companies in the world. These are businesses with global brands, deep customer bases, strong balance sheets, and major positions in their industries.

Its holdings include names such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Berkshire Hathaway (NYSE: BRK.B).

This gives investors access to companies across technology, healthcare, financials, industrials, consumer goods, and more. It is not a bet on one sector or one theme. It is exposure to a broad group of companies that help drive the US economy.

For investors wanting simple global exposure, it remains one of the cleanest options on the ASX.

It has a strong long-term track record

Another reason to buy and hold the iShares S&P 500 ETF is the long-term performance of the market it tracks.

The S&P 500 index has delivered an average annual return of around 10% over the past century. That period has included wars, recessions, inflation shocks, market crashes, banking crises, and a global pandemic.

Despite all of that, the index has continued to rise over time.

This does not mean returns will be smooth. They never are. There will be periods when the IVV ETF falls sharply, sometimes for months or even years.

But the long-term lesson is clear. Investors who stay invested through difficult periods have historically been rewarded for their patience.

That makes the fund a strong option for those who want to benefit from long-term compounding without constantly trading in and out of the market.

It keeps investing simple

A third reason to like the IVV ETF is its simplicity.

Investing can quickly become complicated when trying to choose individual shares, time the market, or respond to every piece of economic news.

This ASX ETF removes a lot of that pressure. It gives investors diversified exposure to 500 large US companies in a single investment.

That can make it easier to stay consistent. Investors can add to the fund over time, reinvest distributions, and let the underlying companies do the work.

The low-cost structure also helps. Over long periods, keeping fees down can make a meaningful difference to total returns.

For investors who want a straightforward way to build wealth over time, the iShares S&P 500 ETF has plenty of appeal as a long-term holding.

The post 3 reasons to buy and hold the IVV ETF forever appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Berkshire Hathaway, Microsoft, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Apple, Berkshire Hathaway, Microsoft, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Argo Investments Ltd (ASX: ARG) is a leading ASX dividend stalwart. It’s a listed investment company (LIC) that provides investors with exposure to ASX blue-chip shares.

Unlike many ASX-listed exchange-traded funds (ETFs) that listed in the last decade or two, Argo is very old and has a demonstrated track record of stability and longevity. It has been operating since 1946, making it one of the oldest companies on the ASX.

LICs are not a high-growth area, but they have unique benefits compared to ETFs and operating companies that makes Argo an appealing choice.

Solid passive dividend income

The business says it provides fully franked sustainable dividends. It has paid dividends every year since inception in 1946 and those payments have been fully franked since 1995.

That doesn’t mean the payout will necessarily be bigger every single year. But, since 2010, most financial years have seen a payout increase for shareholders.

In the FY26 half-year result, the business announced that it’s going to increase its interim dividend per share by 8.8% to 18.5 cents.

That means the last two dividends to be declared by the business come to 38.5 cents per share, translating into a grossed-up dividend yield of 6.2%, including franking credits, at the time of writing.

There are not many ASX dividend stalwarts that have a higher dividend yield than that.

Diversification

The business does not follow an index, so it gives investors a different exposure than the S&P/ASX 200 Index (ASX: XJO), but it does still invest in a variety of recognisable names.

Some of its biggest positions include BHP Group Ltd (ASX: BHP)), Macquarie Group Ltd (ASX: MQG), Commonwealth Bank of Australia (ASX: CBA), Rio Tinto Ltd (ASX: RIO), Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ), Wesfarmers Ltd (ASX: WES) and Telstra Group Ltd (ASX: TLS).

I like that the risks are spread across a number of businesses, rather than just one. Plus, Argo can switch its portfolio to different investments if one stock goes wrong. This can be contrasted to a concentrated investment such as a bank (a bank is stuck as a bank!).

Great value

A business like Argo is backed by its significant portfolio value. We can price it largely to the underlying value of all of the shares it owns. It seems to be trading very cheaply.

The ASX dividend stalwart regularly tells investors about its underlying value, which is measured with the net tangible assets (NTA) figure.

On 8 May 2026, the business had a pre-tax NTA of $10.48. It’s currently trading at a 16% discount, at the time of writing, which is around the biggest discount it has traded within the last 30 years.

I think this is a good time to invest in the business for the long-term.

The post An ASX dividend stalwart every Australian should consider buying appeared first on The Motley Fool Australia.

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