Author: openjargon

Rio Tinto Ltd (ASX: RIO) shares have finally taken a breather.

The Rio Tinto share price has slipped around 8% over the past month, but that barely dents what has been an outstanding run. The mining heavyweight is still up an impressive 67% over the past 12 months, making it one of the best-performing ASX blue chips and even outpacing rival BHP Group Ltd (ASX: BHP).

So, after such a stellar rally, is there still a case for buying Rio Tinto shares?

Here are three reasons long-term investors may think so.

World-class iron ore assets

Rio Tinto’s biggest strength remains its iron ore business.

The company owns some of the world’s highest-quality, lowest-cost mines in the Pilbara, giving it a significant competitive advantage over many global rivals.

Because these operations sit so low on the cost curve, Rio Tinto can continue generating healthy profits even when iron ore prices soften. When prices rise, those same assets become cash-generating machines.

Its scale, infrastructure, and decades of operational expertise create barriers to entry that few competitors can match.

Reliable cash flow and dividends

Rio Tinto shares have long been one of the ASX’s premier dividend stocks.

While dividends naturally fluctuate with commodity prices, the company has consistently returned a substantial share of its profits to shareholders through dividends and, at times, share buybacks.

That shareholder-friendly approach is supported by a strong balance sheet, disciplined capital allocation, and exceptional cash generation.

For income investors, few miners have Rio’s track record of rewarding shareholders throughout the commodity cycle.

Growing exposure to future-facing commodities

Although iron ore remains Rio Tinto’s biggest earnings driver, the company is steadily broadening its portfolio. It is investing heavily in commodities expected to benefit from the global energy transition, including copper, lithium, and aluminium.

Copper is essential for electrification, renewable energy, and electric vehicles. Lithium demand continues to grow as battery production expands, while aluminium is increasingly used in lightweight transport and clean-energy infrastructure.

These investments give Rio Tinto shares exposure to long-term structural growth trends while its iron ore business continues funding expansion.

The key risk

Investing in Rio Tinto shares is not without risk. Rio Tinto still derives the majority of its earnings from iron ore, making the company highly sensitive to Chinese steel demand and fluctuations in iron ore prices.

If either weakens significantly, profits and dividend payments could come under pressure.

Foolish takeaway

Rio Tinto combines three qualities that long-term investors often seek: world-class mining assets, exceptional cash generation, and growing exposure to commodities that should remain in demand for decades.

While its fortunes will continue to rise and fall with the iron ore cycle, Rio’s diversified growth strategy and history of rewarding shareholders make a compelling case that the recent pullback could present another opportunity for patient investors.

The post Why Rio Tinto shares could be a smart long-term buy appeared first on The Motley Fool Australia.

More reading

• Forget Rio Tinto and buy this ASX copper share
• BHP shares have lost momentum. Should investors be worried?
• Buy, hold, sell: Woodside, Xero, BHP shares
• Why US stocks have hit record highs while ASX shares have barely risen in 2026
• Want a pay rise? These ASX dividend shares keep delivering

Motley Fool contributor Marc Van Dinther has positions in BHP Group. 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.

Ready to make some new additions to your investment portfolio? Then it could be worth considering the three ASX 200 shares in this article.

That’s because they have just been named as buys by experts according to The Bull. Here’s what they are saying about them:

Aristocrat Leisure Ltd (ASX: ALL)

The team at Medallion Financial Group is positive on this gaming technology company and has named it as an ASX 200 share to buy.

It likes the company due to its belief that it offers quality, growth, and attractive returns. It explains:

Aristocrat is a gaming content creation company. It holds market leading positions across land based gaming and digital social casino. The company recently announced a substantial and extended on-market share buy-back, signalling management’s confidence in the underlying business and providing a meaningful tailwind to earnings per share growth. Combined with strong cash generation, disciplined capital allocation and ongoing digital expansion opportunities, we believe Aristocrat offers quality, growth and appealing shareholder returns.

Goodman Group (ASX: GMG)

Another ASX 200 share that Medallion Financial Group rates as a buy is Goodman Group.

It believes the market is undervaluing the industrial property giant’s long-term growth potential, which is being underpinned by its data centre strategy. Medallion said:

GMG is a global industrial property group and data centre developer. Recent acquisitions and development activity have further strengthened the group’s exposure to data centres, artificial intelligence infrastructure and cloud computing demand. Work in progress of $14.5 billion at March 31, 2026 is expected to increase to $18 billion by the end of June. We believe the market is still undervaluing the long term earnings potential of Goodman’s data centre strategy.

Woodside Energy Group Ltd (ASX: WDS)

A third ASX 200 share that has been given the thumbs up is energy giant Woodside.

Fairmont Equities believes that Woodside’s shares have been oversold recently, creating a buying opportunity for investors. It explains:

We were a buyer of this major energy company prior to the war in Iran. In our view, the recent share price fall presents another buying opportunity. Moving forward, we’re expecting tighter crude oil supplies to lead to higher prices. Recent weaker crude oil prices is a response to governments releasing oil from strategic reserves, but they now need to be replenished. As the biggest oil stock on the ASX, Woodside Energy will attract investors when they conclude crude oil prices will be higher for longer.

The post Experts name 3 top ASX 200 shares to buy this week appeared first on The Motley Fool Australia.

More reading

• 7 ASX 200 shares going ex-dividend today
• Buy, hold, sell: Woodside, Xero, BHP shares
• 5 things to watch on the ASX 200 on Monday
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• If I invest $8,000 in Woodside shares, how much passive income will I receive in 2027?

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

A bad week on the Nasdaq tends to ripple straight through to ASX tech stocks, but not always in the way the headlines suggest.

The Nasdaq Composite Index (NASDAQ: .IXIC) posted its fifth consecutive losing session on Friday, dropping 0.24% to close at 25,297.62. Investors rotated out of major technology stocks and into more defensive areas of the market.

For the week, the Nasdaq fell 4.6%, its worst weekly performance in months, even as the Dow Jones Industrial Average Index (DJX: .DJI) actually rose 0.6% over the same period.

That rotation also affected ASX stocks, with the S&P/ASX 200 Index (ASX: XJO) falling 0.42%, led by many well-known tech stocks.

What drove the selloff, and what this means for ASX tech stocks

A lot of this sell-off can be attributed to renewed caution about the entire AI infrastructure trade.

Chip stocks were weaker after reports that OpenAI is considering delaying its IPO to next year. This is due specifically to SpaceX’s poor performance following its own debut and broader volatility in AI-related shares.

That report raised concerns about the sustainability of AI infrastructure spending given the delay in funding from the capital markets.

This is a challenge to the thesis behind buying ASX data centre and AI infrastructure stocks this year: that mega-cap AI IPOs would keep validating and funding the buildout.

When the US sneezes, Australia catches a cold. These three ASX tech stocks all reacted in different ways to last week’s underperformance.

What it means for NextDC Ltd (ASX: NXT)

NextDC is the ASX tech stock most directly exposed to this specific news. This is because OpenAI is the foundational customer for its Western Sydney AI data centre campus.

A delayed OpenAI IPO does not cancel that contracted relationship, but it does remove, at least for now, one of the strongest near-term catalysts that has supported sentiment around NextDC’s AI infrastructure thesis.

The contracted capacity and capital expenditure NextDC has already committed to remain unchanged regardless of OpenAI’s listing timeline.

But investors should not assume the AI IPO wave will keep providing an automatic tailwind for the stock in the way it has over recent months.

What it means for WiseTech Global Ltd (ASX: WTC)

WiseTech is sensitive to broad technology sector rotation given its premium valuation and exposure to global growth-stock sentiment. But this week the company also gave the market its own, separate reason to worry.

Reports emerged that the Australian Federal Police is investigating founder Richard White over serious allegations involving a former employee.

This sent WiseTech shares down almost 13% in a single session, on top of an already difficult year for the stock.

Until there is clarity on both the investigation and the board’s response, the stock’s near-term moves are likely to reflect that overhang as much as any broader rotation out of growth names.

What it means for Xero Ltd (ASX: XRO)

Xero sits closer to the US SaaS peer group than either WiseTech or NextDC. This makes it the most directly comparable of the three to whatever is driving Nasdaq software valuations specifically.

When US growth software names sell off on rate or rotation concerns, Xero’s share price  tends to move in parallel. This is despite the fact that the company’s own performance has remained solid through the volatility.

Xero delivered operating revenue growth of 31% to NZ$2.8 billion in its most recent full-year result. The US stood out as its fastest-growing market on the back of its Melio bill pay integration.

This gives the Xero shares a company-specific growth story that has little to do with whatever is driving sentiment on the Nasdaq this week.

Foolish takeaway for ASX tech stocks

The Nasdaq’s worst week in months was driven by a rotation away from growth and AI-adjacent names, sharpened by a specific report that OpenAI may delay its IPO because of SpaceX’s shaky debut.

That detail matters more for NextDC than for WiseTech or Xero, given its direct contractual link to OpenAI.

For all three, however, the broader lesson is the same: ASX tech stocks are not immune to what is happening across the pond in the US.

The post The Nasdaq just had its worst week in months. Here’s what that means for ASX tech stocks appeared first on The Motley Fool Australia.

More reading

• 3 reasons why the Xero share price is a buy in July
• WiseTech shares are all over the place. Here’s why
• Buy, hold, sell: Woodside, Xero, BHP shares
• 4 ASX 200 shares I’d buy before the end of June
• Top brokers name 3 ASX shares to buy next week

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

It has been a rough few weeks for investors in DroneShield Ltd (ASX: DRO) shares.

The ASX defence stock has fallen around 16% over the past week and 29% over the past month. It is now down approximately 26% in 2026, leaving its once-spectacular 12-month gain almost completely erased at just 4%.

That’s a painful reversal for investors who piled into the ASX stock during this year’s defence rally.

But there’s another way to look at it. With much of the hype now gone, the recent pullback arguably makes the risk-reward equation more attractive for long-term investors. While DroneShield remains a higher-risk stock, its position in one of defence’s fastest-growing niches continues to make it an intriguing opportunity.

Here are three reasons investors may want to take a closer look at DroneShield shares this July.

1. Specialist in one of defence’s fastest-growing markets

DroneShield isn’t trying to compete across the entire defence industry.

Instead, it has focused almost exclusively on counter-drone technology. This is a market that has moved from niche to strategic priority in just a few years.

Demand for counter-drone systems has surged as conflicts in Ukraine and the Middle East demonstrated how inexpensive drones can threaten military forces, critical infrastructure, airports, and public events.

Industry researchers estimate the global counter-UAS market could exceed US$15 billion annually by the early 2030s, driven by rising defence budgets and increasing adoption by military and civilian customers alike.

Those are powerful structural tailwinds for DroneShield shares that aren’t likely to disappear anytime soon.

2. DroneShield has built a genuine competitive niche

DroneShield is hardly the biggest name in defence. It competes with giants such as RTX Corp (NYSE: RTX), Lockheed Martin Corp (NYSE: LMT), and Thales SA (XPAR: HO), all of which have vastly greater financial resources and decades-long government relationships.

Yet DroneShield has successfully carved out a reputation as an agile counter-drone specialist. Rather than offering a single product, the company provides an integrated suite of technologies, including drone detection, electronic warfare systems, AI-enabled tracking software, and command-and-control platforms.

That breadth has helped it secure an increasing number of contracts with defence agencies and government customers.

Recent wins for DroneShield shares include multi-million-dollar contracts across Europe, Latin America, and Asia-Pacific, as well as ongoing supply agreements with military customers responding to heightened geopolitical tensions.

For a business of DroneShield’s size, those contract wins demonstrate growing credibility on the global stage.

3. The valuation looks more reasonable

Earlier this year, DroneShield shares were pricing in almost flawless execution. After the recent sell-off, expectations have become considerably more realistic.

That’s not to say the shares are cheap – they still carry meaningful execution risk – but investors are no longer paying peak multiples for the business.

If the company continues converting growing defence demand into larger, more frequent contract wins, today’s valuation could prove much more attractive than it appeared just a month ago.

Foolish takeaway

Investing in DroneShield shares is not without risks. Revenue remains lumpy because defence contracts are often awarded irregularly. Procurement decisions can be delayed, larger competitors may invest more heavily in counter-drone technologies, and rapid innovation means the company must continually invest in research and development.

But the long-term investment case remains compelling. Counter-drone technology is becoming an increasingly important part of modern defence. DroneShield has established itself as a recognised specialist in the field, and the recent share price correction has significantly lowered investor expectations.

For investors comfortable with volatility, July could present an opportunity to buy a quality defence growth stock after a sharp reset.

The post 3 reasons to buy DroneShield shares in July appeared first on The Motley Fool Australia.

More reading

• Here are the 10 most shorted ASX shares
• After a horror week: Are DroneShield shares a buy, hold or sell?
• Why DroneShield, WiseTech and Judo shares are leading the ASX 200 lower this week
• Is DroneShield the ASX growth share investors should be buying?
• Should I invest $5,000 in DroneShield shares before the end of June?

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 DroneShield and RTX. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lockheed Martin. 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.

There could be big returns waiting for investors in the healthcare sector according to analysts at Bell Potter.

In fact, the ASX healthcare share in this article is being tipped to almost double in value from current levels.

Which ASX healthcare share?

The share in question is Neuren Pharmaceuticals Ltd (ASX: NEU).

It is a biotechnology company with two novel drug assets. Bell Potter notes that the most advanced is Daybue (trofinetide), which was out-licensed to Acadia (NASDAQ: ACAD).

The ASX healthcare share’s second asset, NNZ-2591, is under development for multiple rare diseases. The most advanced is Phelan McDermid syndrome.

Neuren Pharmaceuticals is currently conducting a Phase three trial in Phelan McDermid syndrome and has conducted Phase 2 trials in three other rare neurological conditions.

Bell Potter believes the market is ascribing no value to NNZ-2591, which it feels has created a compelling buying opportunity for investors.

At the same time, it highlights that European regulators have reversed a negative recommendation on Daybue in the region, putting it on a likely path to approval.

Commenting on this, Bell Potter said:

The addition of Daybue European sales adds ~$2/share to our NPV valuation based on current forecasts. We estimate the future value of Daybue licensing income to be ~$9.50 (comprising ~$7.50 from the US and ~$2 from Europe). The existing ~A$300m cash balance equates to ~$2.50/share. Hence a total value of ~$12/share for cash + Daybue licensing income, excluding any contribution from NNZ-2591.

At the latest closing price, we therefore see effectively zero implied value for NEU’s second asset, which in itself would be a multi-billion-dollar value asset should it succeed in the Phase 3 trial. The Phase 3 remains in the early stages of recruitment, with results not expected until the end of CY27 at the very earliest (pending recruitment pace).

Big potential returns

According to the note, Bell Potter has retained its buy rating on the ASX healthcare share with an improved price target of $23.50 (from $22.00).

Based on its current share price of $12.20, this implies potential upside of approximately 93% for investors over the next 12 months. It said:

We maintain our BUY recommendation and increase PT to $23.50.

To put that into context, a $5,000 investment would turn into approximately $9,650 by this time next year if Bell Potter is on the money with its recommendation.

The post Bell Potter says this ASX healthcare share could rise 93% (It’s not CSL) appeared first on The Motley Fool Australia.

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

ASX blue-chip shares can be among the best options for passive income because of both their dividend yields and the stability they provide.

Businesses that are market leaders in their sector can be a very effective choice because they are much stronger than competitors, with scale and margin advantages.

The two businesses below have a strong track record of paying dividends, and I expect compelling dividend payouts in the months and years ahead.

JB Hi-Fi Ltd (ASX: JBH)

JB Hi-Fi is one of the leading retailers in Australia and New Zealand, with its JB Hi-Fi Australia, JB Hi-Fi New Zealand, The Good Guys and E&S Trading businesses.

The ASX blue-chip share is arguably the market leader in electronics and appliances in Australia, and it continues to work on improving its position through new stores, increased scale, and a low-cost operating model.

JB Hi-Fi has grown its annual dividend in most years over the last 13 years, which is impressive to me for a retailer.

The business doesn’t typically trade on a high price/earnings (P/E) ratio, which means its dividend yield can be attractive.

According to Commsec’s projection, the business is forecast to pay an annual dividend per share of $3.38 in FY26. That translates into a possible grossed-up dividend yield of 5.9%, including franking credits.

Electronics and appliances remain an essential element for many households, so I expect the company can deliver fairly defensive earnings during this period of higher inflation and interest rates (again).

Telstra Group Ltd (ASX: TLS)

Telstra is Australia’s leading telecommunications business with the most subscribers, the widest network coverage and seemingly the best spectrum assets to deliver its service.

The ASX blue-chip share has leveraged its market position in Australia with regular price increases. Unlocking more revenue from the same number of subscribers should improve its margins, since costs aren’t increasing at the same pace.

Australia is becoming increasingly digital for households, businesses and government, which gives the company defensive earnings. Plus, Australia’s growing population gives the business a tailwind to win more subscribers.

According to Commsec’s projection, the business is forecast to pay an annual dividend per share of 21 cents in FY26. That translates into a possible grossed-up dividend yield of 5.8%, including franking credits.

The business has a strong chance of increasing its dividend in FY27 and is expected to raise its annual payout to 21.5 cents per share, according to projections on Commsec.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

More reading

• How to build passive income for life from the ASX share market
• Why Telstra shares could be a top ASX buy for the new financial year
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• Where should I invest inside SMSFs instead of property?

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 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.

The Xero Ltd (ASX: XRO) share price has been one of the worst performers in the S&P/ASX 200 Index (ASX: XJO) in recent history. In the last year alone (at the time of writing), the Xero share price has dropped more than 60%, as the below chart shows.

As an accounting software business, Xero has been one of the victims of the big decline in investor confidence surrounding software companies.

But, I think the business has been significantly oversold, and now looks very good value for three reasons.

Ongoing revenue growth

Firstly, the decline in the share price suggests a bleak future. However, while we can’t know for certain what the future holds (positively or negatively), revenue (and subscriber) numbers remain solid because of a few different elements.

The company recently reported its FY26 results for the 12 months to 31 March 2026. Its customer numbers grew 11% to 4.92 million. Growth is accelerating – its net customer additions (excluding removed long idle subscriptions) improved by 22% to 506,000. That’s a lot of extra revenue flowing through the business!

Its average revenue per user (ARPU) continues to grow thanks to regular price hikes, which isn’t materially hurting the loyalty of subscribers. ARPU rose 23% to $55.44 during the FY26 period.

Those subscribers likely see the huge time-saving and efficiency tools Xero provides as a great benefit. Time-poor business owners (and accountants and bookkeepers) want to complete tasks as quickly as possible.

Thanks to those revenue growth benefits, its annualised monthly recurring revenue (AMRR) jumped 37% to $3.27 billion, and the total lifetime value (LTV) of customers increased 17% to $21 billion.

US expansion

Xero has built a significant market position in New Zealand, Australia and the UK. It also has a growing presence in countries like Singapore, South Africa and Canada.

However, it has struggled to gain much of a foothold in the US, which is a huge market if Xero can get it right. It’s difficult to break into a market that already has such embedded incumbents.

The acquisition of small and medium business payments company Melio may have been costly, but it could unlock the growth and access to more subscribers that Xero has hoped for.

In FY26, it reported US revenue growth of 240% (30% on an organic basis, excluding Melio). If it can continue to grow US revenue in the double digits, I think it has a very good future.

Long-term profit potential

Profitability took a hit in FY26 due to Melio-related acquisition costs, but I think the long-term outlook looks very promising for continued profit growth in the coming years.

As a software business, the company has a lot of operating leverage – its revenue can increase at a much faster pace than its expenses, in a normal financial year.

As revenue continues to grow, I expect earnings to grow quickly. Despite profit headwinds in FY26, free cash flow increased 9% to $554 million. The company can use the rapidly rising cash flow to pay dividends and/or make more bolt-on acquisitions.

For me, long-term profit growth is the key reason I’m interested in the Xero share price.

I think Xero is a very exciting ASX share to own, though it’s not the only stock I’d buy today.

The post 3 reasons why the Xero share price is a buy in July appeared first on The Motley Fool Australia.

More reading

• The Nasdaq just had its worst week in months. Here’s what that means for ASX tech stocks
• Buy, hold, sell: Woodside, Xero, BHP shares
• How to invest $500, $5,000, and $50,000 on the ASX
• Why I’d buy Xero and Block shares with $2,000
• Is the tech recovery finally here for Xero and Wisetech shares?

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

The Pro Medicus Ltd (ASX: PME) share price has been an incredible performer over the last five years, rising by 230%. The Australian stock’s return would have been much stronger if the end date of this measure had been July 2025, as it was above $330 at that stage.

As the above chart shows, it’s actually down 40% since that July 2025 peak. So, after significant volatility over the past year, is it good value or overvalued?

Let’s take a look at what analysts think of the business at its current valuation.

Expert views on Pro Medicus shares

According to CMC Invest, there have been 10 analyst ratings on the business. Of those ratings, nine were buys, and one was a hold.

Clearly, investors are feeling very positive about the business right now, though it has already regained some of its lost ground after rising more than 40% over the last month.

Experts still think the Pro Medicus share price could rise from here. The average price target of those 10 ratings is $203.15. That suggests it could rise more than 7% in the next year.

The most optimistic price target is $245.13, suggesting it could rise another 30% from where it is at the time of writing.

Why is the Australian stock still attractive?

The business has continued to deliver excellent financials for shareholders, which is the only thing Pro Medicus can truly control.

Its operating profit (EBIT) remains one of the highest on the ASX. This means much of the new revenue it’s winning is turning directly into usable EBIT that can help grow the bottom line, pay larger dividends, and/or strengthen the balance sheet.

The company continues to win new and renew existing contracts from valuable clients, giving it tailwinds for shareholder returns.

Additionally, Pro Medicus continues to strive to offer the best service, which is why it recently announced it’s exploring a partnership with EchoIQ Ltd (ASX: EIQ) to provide Pro Medicus customers with AI-powered cardiovascular diagnostic technology. Cardiology could be a great growth avenue for Pro Medicus.

The company’s earnings per share (EPS) is expected to continue rising at a strong pace. According to Commsec’s forecast, the business is projected to grow EPS by around 30% in FY27 and by another 25% in FY28.

Can any other very profitable S&P/ASX 200 Index (ASX: XJO) share grow EPS as much in percentage terms between FY26 and FY28? Time will tell, but I think the Australian stock has a very promising future.

The post Up 230% in 5 years! Is this still a top Australian stock to buy? appeared first on The Motley Fool Australia.

More reading

• How to invest $500, $5,000, and $50,000 on the ASX
• Is this exciting ASX tech stock a buy after its massive news?
• Pro Medicus just struck a revolutionary AI cardiology deal. Here’s why that matters
• Why is everyone talking about Mineral Resources, A2 Milk and Pro Medicus shares on Thursday?
• Why A2 Milk, EchoIQ, Lendlease, and Qantas shares are racing higher today

Motley Fool contributor Tristan Harrison has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I believe investors are much more likely to see good returns by owning ASX shares over the long term.

But, there aren’t many investments I’d commit to owning for 10 years, let alone 60 or 70 years.

There are a few names I expect to own for a very long time. I’ve already owned the two below ASX share for many years and I expect they’ll be in my portfolio for decades to come.

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust (REIT) that owns farmland across Australia.

Farms have been an essential part of life for many centuries, and I think that will continue to be the case for a very long time to come.

Rural Funds is invested across a variety of farming sectors. I like the diversification strategy of the business because it lowers the risk of being too exposed to one type of farm and allows it to find the best opportunities it can for a combination of rental income and growth.

The business has long-term rental agreements signed with high-quality agricultural producers. The weighted average lease expiry (WALE) is currently over a decade, indicating compelling rental visibility and security.

Its rental income is steadily growing thanks to contracted increases, either linked to inflation or fixed annual increases, plus market reviews.

One of the main reasons this seems like such a good time to invest is that the business is trading at a significant discount to its net asset value (NAV) – the underlying value of the business, including property values, loans, and so on.

At 31 December 2025, it had an adjusted NAV of $3.10. At the time of writing, it’s trading at a discount of around 33%.

As a final bonus, it offers good passive income – it currently has a distribution yield of 5.6%.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is another ASX share I expect to deliver excellent longevity. It has already been listed for 120 years, and I think it’ll excel for decades to come.

The investment house has a very diversified portfolio of assets and businesses. Having a flexible investment mandate allows the company to steadily change its asset base over the years, giving the business the ability to future-proof itself.

In 20 years, its main investments could be extremely different, but the business will still have the same level of attraction to me. Management is always looking for ideas that can generate defensive cash flow and deliver long-term capital growth.

Currently, some of its biggest investments include energy, sources, property, swimming schools, agriculture, electrification, credit and plenty more.

Soul Patts has outperformed the S&P/ASX 200 Index (ASX: XJO) over the long-term, and I expect that to continue as the business further adjusts its portfolio.

One of the main reasons I like it so much as an investment is its excellent track record of dividend growth. It has increased its regular payout every year since 1998. That’s the most consistent dividend growth record on the ASX.

The post 2 ASX shares I plan to own until I’m 100 appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I’d buy and hold for my kids
• Where should I invest inside SMSFs instead of property?
• How to invest $500, $5,000, and $50,000 on the ASX
• Want a pay rise? These ASX dividend shares keep delivering
• 3 ASX dividend favourites are hitting 52-week highs today. Are investors getting defensive?

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 Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Rural Funds Group and 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.

Owning Wesfarmers Ltd (ASX: WES) shares has been an excellent choice for passive income over the past decade, and I expect it will continue for the foreseeable future.

Shareholders can largely thank Bunnings and Kmart for enabling the company to pay stable and growing dividends this decade. On more than one occasion, those two leading businesses have helped households during high inflation.

Even if national retail spending were to fall, Kmart and Bunnings have shown the ability to grow sales, a great sign that they are increasing their market share. Bigger scale can also help with improving profit margins.

With the business set to report dividend growth in FY26, we’re going to look at what the business could deliver in FY27.

Wesfarmers dividend projection for FY27

According to Commsec’s forecast, the business is projected to pay an annual dividend per share of $2.19 in FY26. That translates into a dividend yield of 2.4%, or 3.5% including the franking credits.

I wanted to give context of where the Wesfarmers dividend is expected to be in FY26 before seeing what could happen in FY27.

According to Commsec’s forecast, the business is projected to grow its annual dividend per share by 8% year-over-year in FY27 to $2.33 per Wesfarmers share.

At the time of writing, that potential payout translates into a dividend yield of 2.6%, or 3.7% including the franking credits.

What would be needed for $1,000 of passive income?

The prospects look good for shareholders to get bigger payouts in FY27, though that’s not guaranteed, of course.

If an investor wants $1,000 of passive income from the Kmart and Bunnings owner, they’d need 430 Wesfarmers shares. At the time of writing, this would cost approximately $38,300.  

If we include franking credits in the income goal, an investor would only need 301 Wesfarmers shares to generate $1,000 in annual dividends. At the time of writing, this would cost approximately $26,800.

Is this a good time to invest in Wesfarmers shares?

I think Wesfarmers is one of the best ASX blue-chip shares around. However, at the time of writing, it has risen approximately 15% in the past month. It’s not as good value as it was.

According to CMC Invest, the average price target from nine recent analyst ratings on the business is $76.34. That suggests those analysts collectively believe the stock could drop by more than 14% over the next year, so there could be even better opportunities at more attractive valuations.

The post How much must I invest in Wesfarmers shares to earn a $1,000 passive income in 2027? 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 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.