Author: openjargon

Uncertain markets can make investors overthink things.

Inflation, interest rates, consumer pressure, and global risks all create noise. But sometimes the best ASX shares to own are the ones with simple, durable demand behind them.

That is why I think Coles Group Ltd (ASX: COL) shares could be a smart buy today.

A business people keep using

Coles is not an exciting growth stock. It sells groceries, household products, and everyday essentials through one of Australia’s largest supermarket networks.

But I think that is why it can be useful in a portfolio.

People still need food, cleaning products, toiletries, baby items, pet food, and other staples in almost every economic environment. Shoppers may become more price-conscious, swap brands, or hunt for specials, but grocery demand remains far more reliable than many discretionary categories.

That gives Coles a defensive quality that can be valuable when the broader market is unsettled.

The value focus helps

Cost-of-living pressure is still shaping household behaviour.

I think that plays into the hands of supermarkets that can offer convenience, scale, loyalty programs, private-label products, and regular promotions.

Coles has the size to compete hard on price while still investing in stores, online shopping, supply chain improvements, and customer data.

The supermarket sector is not easy. Competition from Woolworths Group Ltd (ASX: WOW), Aldi, Costco, and independent operators remains intense. Coles also needs to manage wage costs, supplier relationships, logistics, and scrutiny over grocery prices.

But I think a strong supermarket business can still be a very useful long-term holding when managed well.

Income plus resilience

Coles also has appeal as an income share.

Its dividend yield may not be the highest on the ASX, but I think the quality of the earnings base counts for a lot.

A lower-risk dividend from a defensive business can be more attractive than a larger yield from a company with more cyclical earnings.

For investors looking for passive income, Coles could provide regular dividends backed by a business that has a clear role in everyday Australian life.

There is also room for capital growth if the company can keep improving margins, growing online sales, lifting efficiency, and strengthening customer loyalty over time.

A share for the quieter part of a portfolio

I would not buy Coles shares expecting explosive returns.

That is not the point. I would buy it because it can add balance to a portfolio that may already have banks, miners, technology shares, and higher-risk growth stocks.

When markets are strong, Coles may not always lead the way. But when investors become more cautious, businesses with defensive earnings and reliable demand can become more appealing.

That kind of stability can be underrated.

Foolish takeaway

Coles is the type of ASX share that can look a little ordinary at first glance. But ordinary businesses can be very useful when they sell products people need every week.

The supermarket sector will always have competition, cost pressure, and political attention. Those risks should be taken seriously.

Even so, I think Coles has enough scale, brand strength, and defensive demand to make it a strong candidate for long-term investors.

In a market full of uncertainty, a dependable grocery business may be just the sort of share worth owning.

The post Why Coles shares could be a smart buy in an uncertain market appeared first on The Motley Fool Australia.

More reading

• 3 strong ASX 200 shares for retirees to buy and hold
• Why Bapcor, Coles, Graincorp, and Xero shares are tumbling today
• Coles share price ‘down down’ after Federal Court rules shoppers were deceived
• How much do I need to invest in ASX shares for $500 a month of passive income?
• How big will the Coles and Woolworths dividends be in 2027?

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

Market rallies rarely announce themselves in advance.

By the time confidence returns, some of the best opportunities may already have moved. That is why it can be worth looking for quality ASX shares while sentiment is still mixed.

The aim is not to chase the hottest stock of the week. It is to find businesses with strong long-term drivers that could benefit when investors become more willing to back growth again.

Here are three ASX shares I’d be looking at before the next market rally.

Breville Group Ltd (ASX: BRG)

Breville is an ASX share I’d be happy to buy before confidence improves.

The company has built a global premium appliance business with coffee at the centre of its growth story. Its espresso machines have benefited from the shift toward better coffee at home, particularly among consumers willing to pay for quality.

That category gives Breville more than a one-off product sale. Coffee sits in daily routines, and the company has built credibility with consumers who care about performance, design, and consistency.

Breville also has room to grow internationally through its Breville, Sage, Baratza, and Lelit brands. Expansion in the United States, Europe, and newer markets gives the business several levers beyond Australia.

If consumer sentiment improves and premium spending stabilises, Breville could be well placed to keep building on its global growth story.

Megaport Ltd (ASX: MP1)

Megaport is a smaller and more volatile idea, but its market opportunity is significant.

This ASX share helps businesses connect to cloud providers, data centres, and networks through its on-demand connectivity platform. As companies continue shifting workloads into the cloud, the need for flexible digital infrastructure keeps growing.

Megaport’s recent acquisition of Latitude.sh expands the company beyond connectivity and into compute infrastructure, increasing its addressable market.

That is important because cloud and artificial intelligence demand are not only software stories. They require networks, compute capacity, and infrastructure that can scale quickly.

Megaport still has to execute well. But if it can turn its broader platform into stronger revenue and earnings growth, the share price could have significant upside over the long term.

ResMed Inc (ASX: RMD)

ResMed Inc remains one of the highest-quality healthcare businesses on the ASX.

The company develops devices, masks, and software used to treat sleep apnoea and other breathing-related conditions. These are not discretionary products. They sit in an area of healthcare where diagnosis, treatment, and ongoing patient management is important.

What makes ResMed interesting is the size of the untreated market. Management estimates that there are over 1 billion sufferers of sleep apnoea globally, with the vast majority still undiagnosed. This means demand can continue growing as awareness improves and more patients enter treatment.

The company also benefits from connected devices and digital tools that help patients and healthcare providers manage therapy over time. That gives ResMed a stronger position than a simple medical device manufacturer.

If investors rotate back toward reliable global growth businesses, ResMed could be one of the ASX shares that attracts attention.

The post I’d buy these 3 ASX shares before the next market rally appeared first on The Motley Fool Australia.

More reading

• 10 ASX shares given buy ratings this week
• 7 ASX shares with strengthened buy ratings this week
• 3 ASX growth shares I think can double in under 7 years
•  3 ASX shares that could be future blue chips
• 3 ASX 200 shares I’d buy before the market wakes up

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

Monthly-paying ASX dividend shares are a dream for income-focused investors who want a reliable passive income.

Here are my three top picks, and one of them yields as high as 9.2%.

BetaShares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX)

The Betashares YMAX is an ASX-listed exchange-traded fund (ETF) that provides exposure to the 20 largest blue-chip ASX-listed shares.

At the time of writing, the fund is heavily weighted into the financial sector, which accounts for 47% of its allocation. The materials sector is second, accounting for 21.4% of its allocation.

The fund has been paying quarterly dividends to its shareholders since April 2013. But in January, its payment frequency was amended to monthly.

As at 30th April 2026, the YMAX ETF has a 12-month gross distribution yield of 9%, and a 12-month distribution yield of 7.6%. The total 12-month franking level is 41.2%.

The fund most recently paid a $0.047623 per unit dividend to shareholders on Monday this week.

Plato Income Maximiser Ltd (ASX: PL8)

Plato is a listed investment company (LIC) that targets income-focused investors, including retirees, SMSF investors, and other investors seeking a dependable income stream.

The company actively manages a portfolio of mature ASX-listed equities, cash, and listed futures. It mostly focuses on ASX dividend shares with strong dividend payouts, such as major banks, mining giants, and energy firms. 

Metrics Income Opportunities Trust (ASX: MOT)

The Metrics Master Income Trust is an LIT with a diversified portfolio of private credit and related opportunities. 

This means the Trust can give investors direct exposure to private credit investments, which is becoming an increasingly popular asset class for income-focused investors.

It said its investment objective is to provide monthly cash income, preserve investor capital, and manage investment risks. It also seeks to provide upside potential through investments in private credit and other assets. These “other assets” include warrants, options, preference shares, and equity.

The Trust targets a cash yield of 7% per year, with a total target return of 8% to 10% per year. The yield is net of fees and expenses. 

Dividend distributions are paid monthly. The Trust also has a distribution reinvestment plan (DRP), which allows its unitholders to reinvest monthly income distributions.

The ASX dividend share’s latest payout was 1.22 cents per unit in late April. The Fund also paid out 1.09 cents per unit in March, 0.92 cents in February, and 1.22 cents in January. 

Over the past 12 months, Metrics Income Opportunities Trust has paid out 12 dividends totalling 15.92 cents per share (unfranked). This means the LIT has a dividend yield of around 9.2% at the time of writing.

The post 3 ASX dividend shares yielding up to 9%, and with monthly payouts appeared first on The Motley Fool Australia.

More reading

• Here’s a 9% ASX dividend stock to consider for a monthly passive income
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• Build the ultimate retirement portfolio with these 2 monthly ASX dividend stocks

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. 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.

Here at The Motley Fool, we believe in long-term, diversified investing principles. One simple way to follow these principles is with ASX ETFs. 

ASX ETFs offer instant diversification in just one trade. 

However more and more thematic funds are becoming available that allow investors to tap into specific sectors. 

This can be extremely effective when certain areas of the market are undervalued. 

Scooping up an ASX ETF in an undervalued sector can pay off big in the long run when markets correct. 

With that in mind, here are three ASX sectors that have struggled recently, making them a prime value play in the long run. 

Healthcare

Healthcare shares have been hit hard in 2026. 

Here on home soil, the S&P/ASX 200 Health Care Index (ASX:XHJ) is down around 30% for the year to date. 

Many healthcare stocks were previously trading at high valuations after years of strong performance, so investors became less willing to pay premium prices as interest rates stayed elevated. 

Higher rates also pushed investors away from growth-oriented healthcare and biotech companies and toward sectors like banks, mining, and energy. 

Some experts are now suggesting the sell-off may have swung too far to the down side, creating a buy-low opportunity for ASX ETFs focussed on this sector. 

These headwinds have pushed down healthcare shares globally, not just here in Australia. 

Some options for investors optimistic on a global long-term rebound include: 

• BetaShares Global Healthcare ETF – Currency Hedged (ASX: DRUG)
• iShares International Equity ETFs – iShares Global Healthcare ETF (ASX: IXJ)
• Vaneck Vectors Global Health Leaders ETF (ASX: HLTH). 

Technology 

ASX technology shares have also been heavily sold off in 2026. 

The S&P/ASX All Technology Index (ASX: XTX) is down around 20% for the year to date. 

ASX technology shares have been pressured by fears that generative AI could disrupt traditional software business models and reduce the value of existing SaaS platforms. 

Investors have been concerned that AI tools and autonomous agents may replace some software functions, weaken pricing power, and force Australian tech companies to spend heavily just to remain competitive against larger global AI players.

However it appears some momentum is beginning to swing back in favour of tech shares.

Targets from brokers are now swinging back towards the optimistic side. 

For investors confident in a long-term rebound, an ASX ETF to consider is Betashares S&P/ASX Australian Technology ETF (ASX: ATEC), which provides exposure to leading ASX-listed companies in a range of tech-related market segments.

Real estate

Finally, real estate shares have also struggled in 2026. 

The S&P/ASX 200 Real Estate Index (ASX: XRE) has dropped around 10% since the start of the year. 

Headwinds have included higher bond yields and interest rates hurting property valuations and REIT financing costs. 

For investors looking to target this undervalued sector, some ASX ETFs to consider include: 

• VanEck Vectors Australian Property ETF (ASX: MVA)
• Vanguard Australian Property Securities Index ETF (ASX: VAP). 

The post ASX ETFs to target this month that focus on undervalued sectors appeared first on The Motley Fool Australia.

More reading

• 3 amazing ASX ETF for beginners to buy and hold
• 3 ASX ETFs that could outperform the ASX in the next 12 months 
• 3 excellent ASX ETFs to buy and hold for 10 years
• Why this BetaShares ETF could be a strong buy for Aussie investors
• ASX tech shares vs. ATEC ETF: How they fared during sector downturn

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 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.

Many of Australia’s leading brokers were busy this week updating their financial models and recommendations.

Let’s look closer at ten ASX shares that received buy ratings from them. They are as follows:

Bega Cheese Ltd (ASX: BGA)

Morgan Stanley is bullish on this diversified food company. This week, it initiated coverage on the Vegemite owner’s shares with an overweight rating and $6.70 price target. The Bega Cheese share price ended the week at $5.39.

Catapult Sports Ltd (ASX: CAT)

Bell Potter was pleased with this sports technology company’s FY 2026 results. In response, the broker retained its buy rating with an improved price target of $4.65. This compares to its latest share price of $3.57.

Evolution Mining Ltd (ASX: EVN)

UBS turned positive on this gold miner and upgraded its shares to a buy rating with an improved price target of $14.00. The Evolution Mining share price ended the week at $12.17.

Gentrack Group Ltd (ASX: GTK)

Bell Potter continues to see value in this software provider’s shares. This week, the broker retained its buy rating and $5.70 price target on its shares. This is notably higher than its current share price of $3.18.

Goodman Group (ASX: GMG)

Morgan Stanley put an overweight rating and $36.15 price target on this industrial property company’s shares. This compares to its current share price of $30.28. The broker is feeling positive about Goodman ahead of its quarterly update next week.

Megaport Ltd (ASX: MP1)

Morgans remains positive on this network-as-a-service provider following the announcement of another big contract win for its Latitude business. It has put a buy rating and $15.50 price target on its shares. The Megaport share price ended the week at $13.05.

Qualitas Ltd (ASX: QAL)

The team at Morgans upgraded this real estate investment company’s shares to a buy rating this week with a $3.50 price target. This implies potential upside of 20% from its current share price of $2.92.

Regis Resources Ltd (ASX: RRL)

Macquarie is positive on this gold miner’s merger plans. After looking at the proposal, the broker has retained its outperform rating and $9.50 price target on Regis Resources’ shares. This compares to its current share price of $6.35.

Santos Ltd (ASX: STO)

Citi is bullish on this energy producer and has put a buy rating and $9.00 price target on its shares. The Santos share price ended the week at $8.24.

Temple & Webster Group Ltd (ASX: TPW)

Over at Morgan Stanley, its analysts have also put an overweight rating and reduced price target of $8.00 on this online furniture retailer’s shares. This is notably higher than its current share price of $5.04.

The post 10 ASX shares given buy ratings this week appeared first on The Motley Fool Australia.

More reading

• I’d buy these 3 ASX shares before the next market rally
• How to turn $500 a month into $500,000 with ASX shares
• Thinking about dividend yields? Here’s how much the top 10 ASX 200 shares pay
• Why Catapult Sports, IAG, Telstra, and Tuas shares are falling today
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Motley Fool contributor James Mickleboro has positions in Goodman Group, Megaport, and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Sports, Gentrack Group, Goodman Group, Megaport, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Catapult Sports and Gentrack Group. The Motley Fool Australia has recommended Goodman Group, Qualitas, and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

After the recent Federal budget changes to trusts, and negative gearing and capital gains for individuals, superannuation may be the best way to invest for full-time working Australians who want passive income.  

Superannuation has a low tax rate compared to individuals, trusts and companies. Plus, it’s easy to invest for the long-term through the investment vehicle.

It’s important to remember that the net income is an after-tax figure. An Australian working full-time could lose approximately a third of their passive income return to tax.

Therefore, investing in superannuation is a much more appealing prospect compared to other options. Superannuation has a lower tax rate in the accumulation phase than the standard individual tax rates for a full-time earner. In retirement, the tax rate could be 0%.

However, every Australian’s tax position is different, so we’re going to look at targeting a particular income level without mentioning tax any further.

How much is needed in superannuation for $7,500 of monthly passive income

Receiving $7,500 in dividends per month translates into $90,000 per year. I reckon many Australians would love to receive that level of dividends each year without having to do any ongoing work for it.

Australian investors need to decide what investments they want to own and the dividend yield that comes with that.

A portfolio with a dividend yield of 7% can be half the size of a portfolio with a dividend yield of 3.5% and earn the same level of passive income.

For example, if a portfolio were $1.3 million in size, it would generate $91,000 of annual passive income with a 7% dividend yield. If a portfolio had a dividend yield of 3.5%, the portfolio would need to be $2.6 million in size to generate the same level of cash payments.

To generate almost exactly $90,000 of annual passive income with a 7% dividend yield, an investor would need a portfolio size of $1.286 million.

A 5% dividend yield would require a portfolio size of $1.8 million to make $90,000 annually.

A 4% dividend yield would require a portfolio size of $2.25 million.

The types of ASX dividend shares I’d want to buy

If a superannuation investor is targeting mid-to-higher dividend yields, then I’d look at reliable and discounted real estate investment trusts (REITs), growing companies with a generous dividend payout ratio and listed investment companies (LICs) with a good track record of dividends.

Appealing businesses with a dividend yield of around 5% to 6%, in my view, include WCM Quality Global Growth Fund (ASX: WCMQ), Telstra Group Ltd (ASX: TLS), Rural Funds Group (ASX: RFF), Centuria Industrial REIT (ASX: CIP), Australian Foundation Investment Co Ltd (ASX: AFI) and Argo Investments Ltd (ASX: ARG).

Businesses with a higher dividend yield include Future Generation Global Ltd (ASX: FGG), Future Generation Australia Ltd (ASX: FGX), Hearts and Minds Investments Ltd (ASX: HM1), WCM Global Growth Ltd (ASX: WQG), WAM Leaders Ltd (ASX: WLE), WAM Microcap Ltd (ASX: WMI) and Charter Hall Long WALE REIT (ASX: CLW).

The post How much is needed in superannuation to target a $7,500 monthly passive income? appeared first on The Motley Fool Australia.

More reading

• How to turn $500 a month into $500,000 with ASX shares
• 2 rock-solid ASX dividend shares to buy this May
• How to build a $52,000 annual passive income
• Why Catapult Sports, IAG, Telstra, and Tuas shares are falling today
• 5 ASX 200 shares downgraded by the experts this week

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, Future Generation Global, Hearts And Minds Investments, Rural Funds Group, Wam Microcap, Wcm Global Growth, and Wcm Quality Global Growth Fund. 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 Rural Funds Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Getting started in the share market can feel more difficult than it needs to be.

But for beginners, a simple buy and hold approach could be a very sensible place to start.

Instead of trying to time the market, investors can focus on owning quality exchange traded funds (ETFs) that provide exposure to strong long-term trends.

This reduces the pressure to pick individual winners and allows investors to benefit from the power of compounding.

With that in mind, here are three ASX ETFs that could be worth buying and holding for the long term.

Betashares S&P/ASX Australian Technology ETF (ASX: ATEC)

The Betashares S&P/ASX Australian Technology ETF could be a good option for beginners wanting exposure to the local tech sector.

Australia may not be as famous for technology as the United States, but the ASX is home to some impressive software, payments, online marketplace, and digital infrastructure businesses.

This ETF brings many of these companies together in a single fund. This means investors can gain exposure to the sector without needing to decide which individual technology share will perform best.

That could be useful because local tech shares can be volatile. Earnings expectations, interest rates, and investor sentiment can all move prices around. But over the long run, the digitisation of business and consumer activity remains a powerful tailwind.

For beginners, the Betashares S&P/ASX Australian Technology ETF offers a straightforward way to back Australian innovation without putting all their faith in one company. It was recently recommended by analysts at Betashares.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

Another ASX ETF that could work well for beginners is the Betashares Global Cash Flow Kings ETF.

This fund focuses on global companies with strong free cash flow generation. That is a valuable quality because cash flow gives businesses options. They can reinvest in growth, pay dividends, reduce debt, make acquisitions, or return capital to shareholders.

This fund is not about chasing the most exciting theme of the moment. Its strategy is based on finding financially strong businesses that are generating real cash.

That could make it a useful building block for investors who want global exposure with a quality filter. It may also provide some balance alongside more growth-focused ETFs.

Rather than trying to analyse company accounts one by one, the Betashares Global Cash Flow Kings ETF does the screening and delivers a portfolio of global businesses with attractive cash flow characteristics. It was also recently recommended by the team at Betashares.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF is one of the most popular growth-focused ETFs on the ASX, and it is easy to see why.

It gives investors exposure to many of the companies driving change across the global economy. These businesses are involved in areas such as artificial intelligence, cloud computing, digital advertising, semiconductors, streaming, ecommerce, and software.

What makes this fund interesting for beginners is that it provides access to these trends in one trade. Investors do not need to guess which mega-cap technology company will win next. The fund spreads exposure across a group of major Nasdaq-listed businesses.

It will not be smooth sailing every year. Growth-heavy ETFs can fall sharply when markets turn cautious. But for investors with a long-term mindset, the Betashares Nasdaq 100 ETF offers a simple way to participate in some of the world’s most important innovation stories.

The post 3 amazing ASX ETF for beginners to buy and hold appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs that could help investors tap into global growth
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• Why the Betashares Nasdaq 100 ETF could be the best way to capture the AI boom

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Share prices are always changing, so there are always opportunities to invest in ASX shares that are undervalued.

Multiple experts have called the two ASX shares in this article a good value buy, and I’d definitely agree with them.

Both of the businesses are delivering strong core growth and have plans for more.

Universal Store Holdings Ltd (ASX: UNI)

According to CMC Invest, there have been nine recent analyst ratings on the business, with all of those being a buy. Collectively, those analysts think the business could rise by around 50% over the next year, with a price target of $9.79.

I don’t know whether it’ll rise that much, but I do think the business is undervalued because of how well it’s growing.

The business sells premium apparel to younger, fashion-focused customers through its two main businesses – Universal Store and Perfect Stranger.

In the first 43 weeks of FY26, the ASX share reported total sales growth of 14%. The Universal Store brand saw total sales growth of 11.8% (with like-for-like sales growth of 8.5%) and Perfect Stranger saw total sales growth of 39.8% (with like-for-like sales growth of 12.9%).

Excitingly, the company is expecting its underlying profit (EBITA) profit margin to increase in FY26, which could help the net profit after tax (NPAT) metric to rise faster than revenue. FY26 EBITA is expected to rise by around 15% (at the mid-point of its guidance).

When a business trades on a relatively low earnings multiple and is growing profit by more than 10% per year, it looks very attractive to me.

According to the forecast on CMC Invest, the business is trading at just 12x FY26’s estimated earnings.

Sigma Healthcare Ltd (ASX: SIG)

Sigma Healthcare is the name behind the brand Chemist Warehouse, Australia’s leading chemist chain.

But, it hasn’t reached a point where its Australian growth has significantly slowed.

Chemist Warehouse’s Australian network saw total sales grow by 16.7% between 1 July 2025 to 30 April 2026, while like-for-like growth was 14.4%. It continues to add new stores to its network, which can help boost both sales and scale benefits.

The ASX share’s international store network growth has also very pleasing, though it’s a much smaller dollar amount at this stage. International total sales for 1 July 2025 to 31 March 2026 was 24.7%, while like-for-like growth was 11.8%. Currently it’s in New Zealand, Ireland, Dubai and China.

It’s also expanding into the UK, another large market for the company.

According to CMC Invest, there have been eight recent buy ratings on the business, with an average price target of $3.25.

In five years, I think the ASX share could be a much bigger, more profitable business.

The post Brokers say these 2 ASX shares are highly undervalued — here’s why I agree appeared first on The Motley Fool Australia.

More reading

• Experts name 2 ASX growth shares to buy this week
• Bell Potter names the best ASX dividend shares to buy in May
• Buy, hold, sell: Ventia, Sigma, and Mineral Resources shares
• 3 reasons to buy Sigma Healthcare shares today
• Buy, hold, sell: ResMed, Sigma, and TechnologyOne 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building wealth with ASX shares does not always require a big starting balance.

For many investors, the more realistic path is putting money to work each month and letting time do the heavy lifting.

A regular $500 monthly investment may not sound life-changing on its own. But combined with patience, discipline, and a sensible mix of quality ASX shares, it could grow into something much more substantial.

The type of shares that could help

To aim for strong long-term returns, investors would likely need exposure to growth assets.

That could mean combining different types of ASX shares. A healthcare technology leader such as Pro Medicus Ltd (ASX: PME) could provide growth, while Goodman Group (ASX: GMG) offers exposure to logistics and data infrastructure.

Defensive names such as Woolworths Group Ltd (ASX: WOW) and Telstra Group Ltd (ASX: TLS) could add more stability, while software shares such as TechnologyOne Ltd (ASX: TNE), WiseTech Global Ltd (ASX: WTC), and Xero Ltd (ASX: XRO) bring long-term earnings potential.

Together, shares like these could give an investor a mix of growth, resilience, and income.

Of course, there is no guarantee that any portfolio will deliver a 10% average annual return. But this is a reasonable long-term assumption to use for illustration, given historical share market returns.

What the numbers show

If an investor put $500 a month into ASX shares and achieved an average return of 10% per annum, the portfolio could grow to approximately $500,000 in around 23 years.

That is the power of compounding.

The investor would contribute about $135,000 over that period. The rest would come from investment returns building on previous returns.

This is why time matters so much. In the early years, progress can feel slow because most of the growth comes from contributions. But as the balance gets larger, compounding starts doing more of the work.

Why monthly investing helps

Investing monthly also has a practical advantage.

It removes the pressure of trying to pick the perfect time to buy. Instead, investors buy through different market conditions.

This is known as dollar-cost averaging.

Some months, shares will be expensive. Other months, they will be cheaper. Over time, regular investing can smooth out entry prices and help investors stay consistent.

That discipline is important because markets will not rise in a straight line. There will be selloffs, disappointing results, and periods where patience is tested.

Diversification is essential

The recent struggles of CSL Ltd (ASX: CSL) are a useful reminder that even high-quality companies can go through very difficult periods.

That is why diversification matters. A portfolio should not rely too heavily on one company, one sector, or one theme. Spreading money across different types of businesses can reduce the damage when one holding underperforms.

The goal is not to avoid every setback. That is impossible. The goal is to build a portfolio that can keep moving forward even when some parts are struggling.

Foolish takeaway

Turning $500 a month into $500,000 is not about luck.

It is about investing regularly, owning quality assets, staying diversified, and giving compounding enough time to work.

Time, patience, and discipline are the ingredients that can turn a simple monthly habit into serious long-term wealth.

The post How to turn $500 a month into $500,000 with ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL, Goodman Group, Pro Medicus, Technology One, WiseTech Global, Woolworths Group, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goodman Group, Technology One, WiseTech Global, 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 Telstra Group, WiseTech Global, Woolworths Group, and Xero. The Motley Fool Australia has recommended CSL, Goodman Group, Pro Medicus, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Age Pension is a sum paid to Australians aged 67 years or older to help fund their retirement.

While the Age Pension is a fantastic tool to help older individuals, it might not necessarily be enough to find the retirement lifestyle that you want.

Here’s a breakdown of everything you need to know.

How much is the Age Pension payment?

The maximum fortnightly Age Pension payment is $1,100.30 for single Australians or older. Couples can get up to $829.40 per person per fortnight. 

The rates don’t include any additional potential supplement rates.

The amount you’ll receive can also vary depending on where you fall under the Age Pension assets and income tests. It is possible to earn a part-payment if your income and/or assets are over the threshold, and the amount is generally calculated on a sliding scale.

How much will a comfortable retirement cost me?

According to Association of Superannuation Funds of Australia (ASFA) defines a comfortable retirement as one which allows Australians to maintain a good standard of living. It assumes you’ll keep top-level private health insurance, will own a reasonable car brand, do regular leisure activities, have funds for home repairs and renovations, go for an occasional meal out, and maybe even an annual domestic trip (or an occasional overseas one).

According to ASFA data, a comfortable retirement lifestyle will cost individual Australians around $54,840 a year. For couples, this can be closer to $77,375 a year. That translates to around $2,100 and $3,000 per fortnight, respectively.

You’ll note this is significantly higher than the Age Pension payment, meaning that Australians can’t rely on the Age Pension alone if they want to retire comfortably.

What about a modest retirement?

A modest retirement assumes you’ll hold basic health insurance, a cheap car model (or none at all), a limited home repair budget, minimal utility expenses, limiting dining out, and infrequent travel, and it’ll cost a lot less. 

In order to live a modest retirement lifestyle, individual Australians can expect to need $35,503 per year, or for a couple this would be closer to $51,299 per year. That translates to around $1,360 and $2,000 per fortnight respectively. 

Again, calculations show the Age Pension alone isn’t enough to fund what ASFA classifies as a modest retirement.

The verdict – your superannuation will need to bridge the gap

To fund a comfortable retirement, ASFA has calculated that single Australians will need a superannuation balance of around $630,000, or couples would need $730,000. 

These sums still also assume you’ll earn a part Age Pension. It’s not possible to rely solely on the Age Pension if you want to retire comfortably. 

The post Is the Age Pension enough to retire comfortably in Australia? appeared first on The Motley Fool Australia.

More reading

• 3 amazing ASX ETF for beginners to buy and hold
• Brokers say these 2 ASX shares are highly undervalued — here’s why I agree
• How to turn $500 a month into $500,000 with ASX shares
• 2 rock-solid ASX dividend shares to buy this May
• These are the cheapest ASX ETFs on the Australian market

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