Author: openjargon

A good retirement portfolio should feel steady.

Not exciting, not unpredictable, just quietly doing its job year after year.

That usually comes down to owning businesses with strong positions in their industries and a clear path to maintaining cash flow to shareholders.

Here are three blue-chip ASX shares I think fit that brief right now.

Endeavour Group Ltd (ASX: EDV)

Endeavour hasn’t had the smoothest run lately, but that’s part of what makes it interesting.

The business is in the middle of a reset. Management is sharpening its focus on price leadership, simplifying operations, and investing more heavily in its hotel network and core retail brands.

There are already signs that this is gaining traction. Retail momentum has been improving, with customers responding to better pricing, while the hotels division continues to perform well with steady growth.

For income investors, the appeal here is that Endeavour still owns a large portfolio of well-known assets (Dan Murphy’s and BWS) and generates significant cash flow. If this reset delivers, it could support more reliable and potentially growing dividends over time.

Woolworths Group Ltd (ASX: WOW)

Woolworths is a blue-chip ASX share that rarely stands still for long.

After a more challenging period, the company appears to be getting back on track, leaning on its scale, supply chain strength, and dominant supermarket position.

That matters because grocery spending is one of the most consistent parts of the economy. It gives Woolworths a dependable earnings base, which has historically translated into regular dividends.

What stands out to me is that even when conditions get tougher, Woolworths has the ability to adjust, whether that’s through pricing, efficiency improvements, or refining its offering.

For a retirement portfolio, that adaptability can be just as important as the dividend itself.

Telstra Group Ltd (ASX: TLS)

Telstra’s story today is very different from what it was a few years ago.

The company is now firmly focused on its long-term strategy, known as Connected Future 30, which is centred around expanding connectivity, improving efficiency, and driving sustainable growth.

It’s already making progress. The business is growing earnings, controlling costs, and generating strong cash flow, all of which support its ability to pay and potentially grow dividends.

Telstra also benefits from operating essential infrastructure. Its network underpins a large portion of Australia’s digital economy, providing a level of stability that many other businesses simply don’t have.

For income investors, that combination of strategy, scale, and cash generation is hard to ignore.

Foolish Takeaway

Endeavour, Woolworths, and Telstra are all at slightly different points in their journey.

Endeavour is resetting, Woolworths is regaining momentum, and Telstra is executing on a long-term strategy.

But they all share something important. They are large, established businesses with the capacity to generate consistent cash flow and return it to shareholders.

For anyone looking to boost their retirement income, I think these are the types of blue-chip ASX shares that are worth serious consideration.

The post 3 blue-chip ASX shares to boost your retirement income appeared first on The Motley Fool Australia.

More reading

• 3 dependable ASX shares to add to a superannuation fund in 2026
• Pulse check: How are the top 10 ASX 200 shares performing amid a new war?
• How I’d build a world-class ASX passive income portfolio
• These 3 ASX ETFs can help protect your portfolio in 2026
• 3 reasons to buy Telstra shares 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 and Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investing in (ASX) shares could be the ticket to building more investment cash flow than what the Age Pension can provide. We could build a portfolio capable of delivering that wealth for just the price of a daily coffee.

Currently, a good coffee could cost around $7 per cup in one of Australia’s major cities, which translates into $49 per week and approximately $2,550 per year.

That doesn’t sound like a lot compared to the current Age Pension of $1,100.30 per fortnight, or $28,600 annually, for a single person.

But, compounding is a great ally to assist with wealth building. Compounding can help a small number grow into a much larger figure over time as interest earns interest.

The power of a coffee and compounding

The numbers I’m about to outline are based on what daily coffee typically would cost, but it doesn’t need to be a coffee exactly, it could be another relatively small expense that is replaced. Or even just what can happen when someone regularly invests a limited amount each year. I’ll base the number on someone who’s currently 30 years old, with 40 years to retirement. Someone older may have less time to retirement, but more financial capability to invest bigger sums each year.

Simply putting $2,550 each year under the mattress would mean $102,000 after 40 years. That wouldn’t be enough to outperform the Age Pension. Stashing money under the mattress would not mean any protection from inflation over those years.

If someone earned 4% interest during those years from a bank acount, the $102,000 would actually grow into $242,315. With a 4% interest rate, that would generate $9,692.6 of annual interest, which still doesn’t match the current income from the Age Pension.

If we choose great (ASX) share investments, that could lead to very strong wealth creation.

For example, up until February 2026, the VanEck MSCI International Quality ETF (ASX: QUAL) had returned an average of 15.3% per year since its inception in October 2014.

If our daily coffee figure achieved that same return over the next 40 years – remembering that past performance is not a guarantee of future performance – then it would grow into $4.94 million. That’s how powerful compounding is.

Withdrawing 4% per year from that balance would mean annual cash flow of $197,523. In my view, that’s likely to be (far) more than what the Age Pension will be in 40 years from now.

I’d invest more than that

Of course, we don’t know how shares will perform over the next 40 years, and it’s also hard to say what inflation will do to the value of a dollar.

So, I think it’d be a wise idea to invest more than $2,500 per year into shares, if a household’s finances allow.

I’m currently building my non-super share portfolio to provide a mixture of both capital growth and dividend income, with the dividends adding to my regular income from names like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). I like that strategy to help both my shorter-term and long-term finances.

The post You can aim to beat the Age Pension for the price of a daily coffee! appeared first on The Motley Fool Australia.

More reading

• Don’t want to rely on your wage? Build a second income with these ASX shares
• 3 amazing ASX ETFs that focus on quality
• Why these ASX shares could be buys in today’s volatile market
• 3 ASX ETFs for beginners starting with $5,000
• Forget CBA shares! Buy these ASX dividend shares instead for passive income

Motley Fool contributor Tristan Harrison has positions in VanEck Msci International Quality ETF 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 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.

For retirees, or those approaching retirement, it’s probably fair to say that the most important aspect that a potential superannuation fund investment can have is dependability. After all, retirement means giving up one’s primary source of income. Whilst hanging up the proverbial boots can be a blessing, the loss of this primary source of income also removes a cushion from one’s investing portfolio. There is simply less room for errors and mistakes. That’s why finding dependable, reliable ASX shares is so important.

With 2026 already looking like an exceptionally volatile year for investors, today, let’s go through three ASX shares that I think offer the dependability and reliability that a superannuation fund requires.

Three dependable ASX shares perfect for a superannuation fund in 2026

Telstra Group Ltd (ASX: TLS)

First up, we have ASX 200 telco Telstra, the leading provider of telecommunication services in Australia, which enjoys a clear market lead in both fixed-line and mobile services. In our modern world, internet and mobile connectively is a necessity, not a luxury. If economic times get tough, Australians will cut down on a lot before touching their mobile or internet services.

That makes Telstra a highly defensive stock, and one perfect for a superannuation portfolio. Telstra also offers a long and distinguished history as a reliable payer of fat dividends too.

Coles Group Ltd (ASX: COL)

Next up, we have supermarket stock, Coles, the second-largest grocery store chain in the country, which also operates the Liquorland chain of bottle shops. Coles is a consumer staples stock, meaning it sells products that we tend to need to buy. In this case, that’s food, drinks, and household essentials. Like Telstra, this makes Coles a highly defensive stock, and a great long-term superannuation investment in my view.

Yes, Coles is in the firing line when it comes to potentially higher energy prices going forward. Saying that, the company’s nature means it can pass on much of these costs to its customers. Coles is also a reliable funder of hefty dividends, which usually come fully franked too.

Wesfarmers Ltd (ASX: WES)

Our final stock, perfect for a superannuation fund, is industrial and retailing conglomerate Wesfarmers. I like Wesfarmers for its inherent diversity when it comes to earnings. This company is best known for its top-tier retailers, including Bunnings, Kmart, and OfficeWorks. But it also has extensive operations in a number of other sectors. These span from mining and energy to healthcare and industrial safety equipment.

Wesfarmers is another proven performer, with decades of delivering reliable growth and franked dividends for shareholders under its belt. I would be more than comfortable adding this ASX stock to my superannuation fund.

The post 3 dependable ASX shares to add to a superannuation fund in 2026 appeared first on The Motley Fool Australia.

More reading

• How to build $100,000 a year in passive income from ASX shares
• Pulse check: How are the top 10 ASX 200 shares performing amid a new war?
• How I’d build a world-class ASX passive income portfolio
• These 3 ASX ETFs can help protect your portfolio in 2026
• 3 reasons to buy Telstra shares today

Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. 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.

A direct stock set-and-forget portfolio can create a fantastic passive income stream as part of your retirement strategy. You aren’t looking for aggressive outperformance compared to the market, just solid returns and strong dividends to create a relatively passive portfolio.

Here are my six rules to select set-and-forget investments.

1. How will this business win?

The first question you should ask yourself about any potential investment is why can this business win? It’s not about why it’s popular or what’s trending now, it’s about how it can keep competitors at bay over the long run.

Look for what is driving its defensive moat, such as:

• Scale/cost advantage
• Regulatory barriers
• Network effects
• High switching costs
• Brand strength

If you don’t understand how it can win, you can’t have true conviction that it will. Knowing how a company protects its profits is a must as quality set-and-forget investing is built on companies that have a strong line of defence.

2. Do I understand what I’m investing in?

Another simple filter is to ask yourself whether you understand how the company makes money. Observing the products and services you use in real life can help in investment decisions as you understand the customer and can explain the value proposition. Understanding where a company’s money comes from – and is likely to continue coming from – is key to set-and-forget investing.

3. Can I see a growth runway?

Set-and-forget investing is less about what’s happening today and more about what’s going to happen. So, ask yourself how will the company continue to grow? You want companies with a credible pathway to expand earnings and adapt as the industry evolves.

If growth relies on a single project, commodity price or regulatory outcome, it’s too narrow for a set-and-forget portfolio. 

4. What will happen if things go wrong?

Of course, you don’t have a crystal ball, so you can never entirely answer this one. What you can do, however, is look for companies with solid cash holdings and low debt or a history of using debt to successfully grow the business as they are in the best position to weather changing circumstances.

A strong balance sheet is critical to dividend sustainability and optionality when external shocks and unexpected challenges arise. For me, companies that generate predictable cash flows, can fund growth internally and don’t rely on regular capital raisings are non-negotiable in set-and-forget investing.

5. Does management have ‘skin in the game’?

Much like I don’t like the idea of flying in a plane with a remote pilot, I feel the same way about investing in a company when management hasn’t invested. If they don’t believe in the outcomes enough to invest, why should I?

When management is invested, I think incentives are more aligned, decision making improves and long-term thinking is more likely, because people behave differently when their own money is on the line.

6. Am I paying a fair price relative to the opportunity?

Valuation matters, of course. But conviction matters more in set-and-forget investing, in my view. A quality business can justify a higher multiple if it offers a solid defensive moat, robust cash flows, visible growth and a strong runway. That said, this comes with a disclaimer. Nothing is a buy at any price. Growth can only cover valuation sins to a point.

But in this type of investing, I care less about squeezing the last 5% of upside and more about investing in quality businesses and avoiding long-term mistakes.  

The bottom line

Of course, a direct stock portfolio will never be truly set-and-forget as you’ll need to review your investments periodically to make sure they still fit your criteria. But investing in quality businesses with good defensive moats, strong cash flows and good dividends can create a relatively passive portfolio – as long as you set and stick to a well-considered investment framework.

The post 6 rules for set-and-forget investing to fund your retirement goals appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Viva Energy welcomes government boost to refinery support
• Ampol welcomes stronger refinery support and domestic supply boost
• Which fast-growing Aussie furniture brand is about to list on the ASX?
• Atlas Arteria announces 20 cent unfranked dividend for H2 FY25

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.

If you have $1,000 ready to invest, it can still go a long way in building a high-quality portfolio.

But where should you put it next week?

Here are three ASX shares that could be best buys right now according to analysts:

NextDC Ltd (ASX: NXT)

The first ASX share that could be a strong option for a $1,000 investment is NextDC.

It operates data centres that provide the infrastructure required for cloud computing, artificial intelligence (AI), and enterprise workloads. As more businesses shift their operations online and invest in AI capabilities, demand for high-performance data centres continues to grow.

NextDC has been expanding its footprint across Australia and the Asia-Pacific and has built relationships with major cloud providers. It also has a significant pipeline of contracted capacity that is expected to convert into revenue over the coming years.

With demand for digital infrastructure increasing, the company appears well placed to benefit from long-term growth in data usage and AI adoption.

Morgans thinks its shares are undervalued. It currently has a buy rating and $20.50 price target on them.

Pro Medicus Ltd (ASX: PME)

Another ASX share that could be worth considering is Pro Medicus.

This healthcare technology company develops imaging software used by hospitals and radiologists. Its Visage platform allows clinicians to view and analyse medical scans quickly and efficiently.

What sets Pro Medicus apart is its capital-light model and strong margins. The company continues to win large contracts with major healthcare providers, which supports its long-term earnings growth outlook.

As medical imaging volumes increase and healthcare systems adopt more advanced digital tools, Pro Medicus could continue expanding its global footprint. This is especially the case given critical radiologist shortages.

Bell Potter is bullish on the investment opportunity here. It has a buy rating and $240.00 price target on its shares.

Xero Ltd (ASX: XRO)

A final ASX share to consider for the $1,000 investment is Xero.

It provides cloud-based accounting software to small and medium-sized businesses. Xero’s platform helps users manage invoicing, payroll, and financial reporting, making it an essential tool for many businesses.

Xero benefits from a subscription-based model, which generates recurring revenue and supports long-term growth. It also has significant opportunities to expand internationally and increase revenue per user through additional features and services following recent acquisitions.

With digital adoption continuing across small businesses, Xero could remain a key player in the global accounting software market.

UBS is a big fan of the company and recently put a buy rating and $174.00 price target on its shares.

The post The best ASX shares to invest $1,000 in right now appeared first on The Motley Fool Australia.

More reading

• Why buying ASX shares in March could supercharge your wealth
• Morgans says these ASX 200 shares could rise 120%
• Are these the smartest ASX tech stocks to buy now with $2,000?
• 2 ASX tech shares that could double from here
• 3 ASX healthcare stocks tipped to soar over 100% higher this year

Motley Fool contributor James Mickleboro has positions in Nextdc, Pro Medicus, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Xero. 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.

A lot of Australians have exposure to BHP Group Ltd (ASX: BHP) shares, whether that’s directly or indirectly. It’s important who the leader of the ASX mining share is because they set the strategic direction of the business.

Earlier this week, BHP announced that Brandon Craig will become the new CEO and a director of BHP on 1 July 2026. He’ll replace Mike Henry, who will step down after six and a half years. Brandon Craig has already been working at BHP for decades in various roles.

Experts from broker UBS have given their view on the appointment and what it could mean for BHP (shares).

UBS opinions on the appointment

Firstly, the broker pointed out what Craig’s achievements are at BHP. Under his leadership, Escondida added around 550kt of additional more copper than November 2024 guidance, reflecting “operational and mine plan optimisation”.

Before that, as leader of the Western Australian Iron Ore (WAIO) business, he led WAIO to be the world’s highest margin iron ore business.

The broker said that his track record of “operational excellence” has been central to his rise in the company.

UBS said:

In our observation, Craig brings strong strategic insight across the business, projects, portfolio and BHP’s markets; while being across the detail in operations, especially safety & productivity. In our opinion, Craig represents a strong pair of hands to take forward BHP’s ambitious growth pipeline across copper, in Chile, Argentina and South Australia; and Potash at Jansen.

The broker believes the ASX mining share will continue to be disciplined when executing growth, carry out acquisitions if the value is compelling, and allocate capital to balance growth and returns.

UBS also said that Craig’s focus will also be on “strengthening capacity to deliver disciplined outcomes on projects, leaning harder into curating relationships in jurisdictions BHP operates in, and embracing technology change to drive value.”

Broker views on the BHP share price

UBS currently has a neutral rating on BHP shares, with a price target of $52. The broker is currently forecasting that the ASX mining share could generate US$12.6 billion of net profit in FY26, which would translate into earnings per share (EPS) of US$2.48.

That increased level of profit could lead to an annual dividend payment per share of US$1.49 in the 2026 financial year.

Net profit is projected to reduce a little in FY27 to US$12 billion, translating into EPS of US$2.37. This could fund an annual dividend per share of US$1.19.

While the short-term looks positive for profit generation, analysts are seeing better ASX share opportunities elsewhere.

The post Own BHP shares? Here’s an expert’s view on the new CEO appeared first on The Motley Fool Australia.

More reading

• Pulse check: How are the top 10 ASX 200 shares performing amid a new war?
• Brokers name 3 ASX shares to buy right now
• Are Fortescue shares a top buy in March?
• How I’d build a world-class ASX passive income portfolio
• Here’s how much I’d need to invest in BHP shares to generate a $100 monthly income

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

Building a six-figure passive income from dividends is a goal many investors aspire to.

While it may sound ambitious, it becomes far more achievable when broken into a clear long-term strategy. The process involves growing a portfolio steadily over time and then positioning it to generate reliable income.

Here’s how that journey can unfold.

Start with growth in mind

In the early stages, the focus shouldn’t be on income. Instead, it is about growing your capital as efficiently as possible.

Historically, achieving an average return of around 10% per annum has been a reasonable long-term target for equity investors, though it is never guaranteed.

This often comes from owning high-quality ASX shares with strong competitive positions, pricing power, and the ability to grow earnings over time. Companies such as Goodman Group (ASX: GMG), Wesfarmers Ltd (ASX: WES), and Macquarie Group Ltd (ASX: MQG) are good examples. These businesses have delivered strong long-term returns through a combination of growth, reinvestment, and disciplined management.

By focusing on these types of companies, investors can build momentum in their portfolio during the early years.

Use consistency to your advantage

One of the most powerful tools available to investors is consistency.

If you were to invest $1,000 per month and achieve a 10% average annual return, your portfolio could grow significantly over time thanks to the wonderful power of compounding.

Starting from zero, this approach could see your investments build to around $2 million in approximately 30 years.

Importantly, this journey includes both capital growth and reinvested dividends along the way, which helps accelerate the compounding process.

Shift towards income over time

Once your portfolio reaches a meaningful size, the focus can gradually shift from growth to income.

At this point, investors often begin allocating more capital to dividend-paying shares that offer reliable and sustainable dividend yields. These may include companies across sectors such as infrastructure, real estate, and consumer staples.

Assuming an average dividend yield of 5% is possible, a portfolio of $2 million would generate $100,000 in annual passive income.

Stay the course

Reaching this level of income doesn’t require perfect timing or constant trading.

Instead, it comes down to owning quality ASX shares, investing regularly, and allowing compounding to do the heavy lifting over time.

While markets will always experience periods of volatility, maintaining a long-term mindset can make all the difference when building a portfolio designed to deliver meaningful passive income.

The post How to build $100,000 a year in passive income from ASX shares appeared first on The Motley Fool Australia.

More reading

• Pulse check: How are the top 10 ASX 200 shares performing amid a new war?
• How I’d build a world-class ASX passive income portfolio
• 2 great ASX 200 blue-chip shares I’d buy right now
• How are Australia’s biggest blue-chip stocks performing in 2026?
• How to invest when the ASX refuses to calm down

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

The prices we’re seeing now and in the coming weeks could be some of the best value ASX shares available to investors this year, or even the rest of the decade.

It’s not often that share prices go through a decline of 10% or more. Widespread selling is painful as a shareholder but there are lower valuations (almost) across the board for brave prospective investors.

Sell-offs give us the chance to search across the S&P/ASX 300 Index (ASX: XKO) (or smaller) to find beaten-up opportunities which could then bounce back when market confidence returns.

Assuming the investment still has a positive long-term outlook, a large decline is a great opportunity to see big returns if/when there’s a recovery.

For example, if a share price drops by 50%, then returning to the previous position would be a return of 100%! Of course, it’s not as easy as that to find the right opportunities. I’d only go for investments I believe can deliver higher earnings in three years from now.

Where I’m seeing exciting ASX share opportunities

In my view, there are multiple areas where the market is being too bearish on certain ASX shares.

The ASX tech share (and tech-related) space is awash with names that have been hit by AI worries, then hit again by the prospect of inflation and higher interest rates. I’m thinking of names like Siteminder Ltd (ASX: SDR), TechnologyOne Ltd (ASX: TNE), Xero Ltd (ASX: XRO), REA Group Ltd (ASX: REA) and Pro Medicus Ltd (ASX: PME).

Businesses in the funds management space are certainly feeling the pain of lower share markets, as well as a hit to market confidence. I think the businesses of Pinnacle Investment Management Group Ltd (ASX: PNI), L1 Group Ltd (ASX: L1G) and Australian Ethical Investment Ltd (ASX: AEF) are very compelling options right now.

The ASX retail share space is appealing as well because market confidence in them can be cyclical. I think growing retail businesses could be particularly good long-term investments during this period, such as Temple & Webster Group Ltd (ASX: TPW), Lovisa Holdings Ltd (ASX: LOV), Universal Store Holdings Ltd (ASX: UNI) and Nick Scali Ltd (ASX: NCK).

Finally, I want to highlight some other ASX growth shares that have been caught up in the sell-off but could be generate significantly higher profit in three to five years. I’m attracted to Breville Group Ltd (ASX: BRG), Sigma Healthcare Ltd (ASX: SIG), Tuas Ltd (ASX: TUA) and Guzman Y Gomez Ltd (ASX: GYG).

The post Why buying ASX shares in March could supercharge your wealth appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy right now
• 4 top ASX share picks to buy
• How I’d build a world-class ASX passive income portfolio
• Morgans says these ASX 200 shares could rise 120%

Motley Fool contributor Tristan Harrison has positions in Breville Group, Guzman Y Gomez, Pinnacle Investment Management Group, Pro Medicus, SiteMinder, Technology One, Temple & Webster Group, and Tuas. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Australian Ethical Investment, Lovisa, Pinnacle Investment Management Group, SiteMinder, Technology One, Temple & Webster Group, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group, SiteMinder, and Xero. The Motley Fool Australia has recommended Australian Ethical Investment, Lovisa, Nick Scali, Pro Medicus, Technology One, Temple & Webster Group, and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Some years call for bold stock picking. Others are better suited to a simpler approach.

With markets still adjusting to shifting interest rates, global uncertainty, and changing growth expectations, I think 2026 could be a year where diversification does a lot of the heavy lifting.

That’s why I keep coming back to Vanguard exchange-traded funds (ETFs).

Here are three I believe could be among the best buys right now.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

If I could only choose one ETF for long-term growth, this would be right up there.

The Vanguard MSCI Index International Shares ETF gives investors exposure to a wide range of global companies, including many of the world’s largest and most influential businesses across the US, Europe, and other developed markets.

What I like about it is its simplicity. Instead of trying to pick which global stocks will outperform, you’re effectively backing the broader strength of international markets.

The VGS ETF also provides diversification away from the Australian share market, which is heavily weighted toward banks and miners. That balance can be especially valuable over time.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

The Vanguard FTSE Asia Ex-Japan Shares Index ETF adds something different to a portfolio.

It focuses on Asian markets outside of Japan, including countries like China, India, South Korea, and Taiwan. These regions are home to some of the fastest-growing economies in the world.

That growth can come with volatility, but it also creates long-term opportunities.

For me, this ETF is about adding exposure to regions that could play a bigger role in global growth over the coming decades. It complements a fund like the VGS ETF rather than replacing it.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

The Vanguard Diversified High Growth Index ETF takes a more all-in-one approach.

It gives investors exposure to a mix of Australian and international shares, along with smaller allocations to fixed income assets, all within a single ETF.

What stands out is how easy it makes diversification. Instead of building a portfolio across multiple funds, you can access a broad range of markets in one investment.

It’s also designed with long-term growth in mind, making it well suited to investors who are comfortable with market ups and downs in pursuit of higher returns over time.

Foolish takeaway

Vanguard ETFs aren’t about trying to beat the market. They’re about owning it.

The VGS ETF offers global exposure, the VAE ETF adds growth from Asia, and the VDHG ETF ties everything together in a diversified package.

For 2026, I think that combination of simplicity, diversification, and long-term focus could make these ETFs some of the most compelling options on the ASX.

The post Why these Vanguard ETFs could be best buys in 2026 appeared first on The Motley Fool Australia.

More reading

• How I’d build a world-class ASX passive income portfolio
• If a 30-year-old invests $500 a month in ASX stocks, here’s what they could have by retirement
• Why I’d buy VGS and these Vanguard ETFs right now
• New to investing? Start with ASX ETFs and quality ASX stocks
• The ASX ETFs to buy for growth, income, and diversification

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 recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When Qantas Airways Ltd (ASX: QAN) shares recommenced paying dividends in 2025, passive income investors took notice.

As you may recall, Qantas suspended its coveted twice-yearly dividend payouts in 2020. That came after Covid restrictions shut down most all air travel and saw Qantas’ profits turn to losses.

But as domestic and international travel demand came roaring back, Qantas paid its first interim dividend in six years in April 2025.

And passive income investors will have received (or shortly will receive) two more fully franked dividends since then.

Now, here’s why I think today could be an opportune time for long-term investors to buy Qantas shares for those future dividends.

Should you buy the dip in Qantas shares for passive income?

Following a very strong run in 2024 and through much of 2025, shares in the S&P/ASX 200 Index (ASX: XJO) airline stock have come under selling pressure after hitting an all-time closing high of $12.12 on 28 August.

Over the past month, Qantas shares have dropped 21%, closing on Friday trading for $8.42 each. Which, as we’ll look at below, could make the airline a compelling long-term passive income investment today.

Most of the past month’s share price losses have come since the onset of the war in Iran.

Atop the medium-term uncertainty surrounding a number of international travel routes and destinations, investors have also been favouring their sell buttons over concerns about mounting fuel costs.

To give you an idea of just how much jet fuel sets the airline back, at its recent half year results (H2 FY 2026), Qantas said it expected fuel costs for the six months to be approximately $2.5 billion, inclusive of hedging and carbon costs.

While the airline has hedging in place, as those contracts expire, Qantas shares will be more directly exposed to surging fuel costs. Since the commencement of the Middle East conflict, the Brent crude oil price is up 47%. Brent crude oil was trading for US$106.38 per barrel on Friday, according to data from Bloomberg.

But here’s the thing.

At some point, hopefully sooner than later, the conflict with Iran will be resolved. And when oil and gas again flow freely from the Middle East, fuel prices will come back down.

When they do, there’s a good chance that the Qantas share price will rebound. And the dividend yield that passive income investors receive after the share price rises will be lower than what investors receive who buy in at the lows.

What kind of dividend yield does the ASX 200 airline pay?

Over the past 12 months, Qantas has declared two fully franked dividends totalling 46.2 cents a share.

The airline will pay its interim dividend of 19.8 cents per share on 15 April. But it’s a bit too late to bank that passive income payout as Qantas shares traded ex-dividend on 10 March.

At Friday’s closing price of $8.42 a share, Qantas trades on a fully franked trailing dividend yield of 5.5%.

Investors who bought at the August highs, however, will only be earning a trailing yield of 3.8%.

Which is why I think that buying the recent share price dip now should pay off handsomely over the long-term.

The post Why I think now is a great time to buy Qantas shares for long-term passive income appeared first on The Motley Fool Australia.

More reading

• Is the Qantas share price dirt cheap after falling 30%?
• How high does Macquarie think Qantas shares will go?
• What’s next for Virgin Australia, Qantas shares as fuel prices surge?
• Qantas shares flying through $105 million legal turbulence
• How many Qantas shares do I need to buy for a $10,000 annual passive income?

Motley Fool contributor Bernd Struben 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.