Author: openjargon

It’s never too late to begin buying ASX shares to build a wealthier retirement.

With that said, the earlier you start, the sooner you can tap into the magic of compounding.

So, if you’re 30 years and don’t have any real savings to fall back on yet, don’t panic. You have plenty of time to build that retirement nest egg well beyond your superannuation balance.

How much do I need to invest in ASX shares for $1 million at retirement?

Let’s assume you’d like to retire a little early. Say at 65 years of age rather than the more customary 67 years.

In that case you’ve got 35 years to gradually build up your ASX share portfolio to the magic $1 million figure.

But to do so, you will need to start saving some money each month and investing in quality ASX stocks or exchange traded funds (ETFs).

There’s no way around it.

But you may be surprised by the modest amount it will take to reach your $1 million retirement mark, provided you start soon.

Let’s take the S&P/ASX 200 Gross Total Return Index (ASX: XJT) – which includes all cash dividends reinvested on the ex-dividend date – as our benchmark for the types of returns you might expect.

Over the past five years, the ASX 200 total return index has gained 45%. That equates to 7.7% annual gains, compounded.

Now if you invest just $500 in ASX shares every month, or only $6,000 a year, at a 7.7% annual return you’ll have:

• $91,305 in 10 years
• $288,090 in 20 years
• $708,326 in 30 years
• $1,072,204 in 35 years

So, if you just turned 30 and start investing $500 each month now, you should achieve your $1 million mark sometime before your 65^th birthday party.

And if you do decide to work the extra two years to the standard 67 year old retirement age, and you keep buying $500 worth of ASX shares every month, you could kick back with an extra $1,264,195.

One ASX ETF to consider today

Rather than trying to build a well-diversified ASX share portfolio from day one, you may want to look into the Vanguard Australian Shares Index ETF (ASX: VAS).

This low-cost, diversified, exchange traded fund aims to track the ASX 300 Index, which holds the top 300 ASX shares by market cap.

And this ASX ETF has just edged out the 7.7% annualised gains figure we used above, returning 7.8% five-year annualised gains.

The fund’s top four holdings are BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), and National Australia Bank Ltd (ASX: NAB) shares.

The post No savings at 30? Here’s how I’d aim to retire early with $1 million buying ASX shares appeared first on The Motley Fool Australia.

More reading

• How much do I need in my superannuation to earn $200 a day in passive income?
• Looking for income for life? These are the ASX shares I’d consider
• These are the 10 richest people in the world in September
• ASX 200 bank shares led a financial sector rebound last week
• These are the most popular ASX ETFs. Which has performed best over the last year?

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

Following the stellar rebound from the June multi-year share price lows, the upcoming CSL Ltd (ASX: CSL) dividend is icing on the cake.

In late afternoon trade on Friday, CSL shares were trading for $175.68 apiece. That sees shares in the S&P/ASX 200 Index (ASX: XJO) biotech giant up a an eye-popping 90.5% since the stock closed at $92.24 a share on 3 June.

For some context, the ASX 200 has gained 2.5% over this same period.

Talk about outperformance!

But we were talking about the CSL dividend.

The clock is running on the final CSL dividend

CSL reported its full year FY 2026 results on 18 August.

And investors couldn’t have responded more enthusiastically. By the end of the trading day, CSL shares closed up 17.3%.

As for the CSL dividend, management declared an unfranked dividend of $2.277 a share.

Now that’s 7.1% below the FY 2025 final dividend payout. But from a yield perspective, it’s important to remember that, despite the recent supercharged rally, the CSL share price is still down around 17% from this time last year.

Now the stock trades ex-dividend on Wednesday, 9 September. So if you want to bank the upcoming CSL dividend, you’ll need to own shares at market close tomorrow, 8 September.

You can then expect to see that passive income hit your bank account on 2 October.

At the recent share price, this equates to a yield of 1.3%.

Adding in the interim dividend of $1.81 a share, CSL stock trades on an unfranked dividend yield (partly trailing, partly pending) of 2.3%.

Why did the ASX 200 healthcare stock soar on its results?

The big one-day gains posted by the ASX 200 stock following its FY 2026 results release wasn’t driven so much by the past year’s performance, of the final CSL dividend, but by a brighter outlook.

“FY26 has been a year of reset. We have taken decisive action and created a clear path to return to sustainable growth,” CSL interim CEO Gordon Naylor said on the day.

Looking to FY 2027, CSL expects to achieve steady revenue, with underlying NPAT forecast to grow by around 5%.

Are CSL shares still a good buy after surging 90%?

Morgans’ Damien Nguyen recently analysed the outlook for the resurgent ASX 200 biotech stock. And he believes it can keep outperforming (courtesy of The Bull) in FY 2027.

He noted:

CSL is a global healthcare leader with strong competitive advantages across plasma therapies, vaccines and specialty medicines. Demand for its products remain largely independent of economic conditions.

Summarising his buy recommendation, which bodes well for future CSL dividends, he concluded:

In our view, the latest full year result in 2026 is generating confidence that repeated earnings downgrades are behind CSL.

With defensive earnings, global market leadership and attractive long term growth prospects, we view CSL as an appealing investment opportunity.

The post Looking to bank the upcoming CSL dividend? You better hurry! appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX healthcare shares to buy after a brutal year
• Top 3 ASX shares I’d buy with $5000 right now
• 40 ASX shares with ex-dividend dates next week
• ASX shares investors are getting younger and trading more often: CBA report
• 11 ASX 200 shares with reaffirmed buy ratings post-results

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 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.

S&P/ASX All Ords Index (ASX: XAO) mining shares typically reward investors with generous dividend payout ratios.

The dividend payout ratio is the percentage of a miner’s earnings paid out to shareholders as dividends. 

Most miners target a percentage range, or a minimum or maximum payout ratio, as part of their standing dividend policy.

For example, the market’s largest miner, BHP Group Ltd (ASX: BHP), pays a minimum 50% of underlying attributable profit as dividends at each reporting period.

This earnings season, BHP declared a final dividend of 99 US cents for FY26, which equated to a 72% payout ratio.

Many ASX mining shares are paying boosted dividends this season because of higher earnings due to stronger commodity prices.

The final BHP dividend for FY26 was 65% higher than the final dividend for FY25, and the largest final dividend in four years.

BHP shares went ex-dividend last week, along with Fortescue Ltd (ASX: FMG) and Newmont Corporation CDI (ASX: NEM) shares.

This week, nine ASX mining shares go ex-dividend. Among them is Sandfire Resources Ltd (ASX: SFR), which benefited from an 18% increase in the copper price in FY26.

The higher copper price helped enable the miner to declare its first dividend since 2022.

Mineral Resources Ltd (ASX: MIN) benefitted from a 278% surge in the lithium spodumene price and a 7% lift in the iron ore price.

The miner resumed dividends this season after a two-year break.

Genesis Minerals Ltd (ASX: GMD) and other ASX gold miners benefitted from an 18% rise in the gold price.

Genesis Minerals is paying its maiden dividend this season.

ASX mining shares going ex-dividend this week

Remember, in order to receive a dividend, you must buy (or already own) the ASX mining share before its ex-dividend date.

ASX share	Ex-div date	Dividend	Payday
Alkane Resources Ltd (ASX: ALK)	Today	1 cents per share	1 October
Perseus Mining Ltd (ASX: PRU)	Today	9 cents per share	7 October
Mineral Resources Ltd (ASX: MIN)	8 September	83 cents per share	30 September
Evolution Mining Ltd (ASX: EVN)	9 September	21 cents per share	2 October
Northern Star Resources Ltd (ASX: NST)	9 September	30 cents per share	15 October
Genesis Minerals Ltd (ASX: GMD)	9 September	5 cents per share	5 October
IGO Ltd (ASX: IGO)	9 September	5 cents per share	30 September
Regis Resources Ltd (ASX: RRL)	10 September	20 cents per share	7 October
Sandfire Resources Ltd (ASX: SFR)	10 September	35 cents per share	30 September

These ASX mining shares are among 40 stocks going ex-dividend this week.

The post 9 ASX mining shares going ex-dividend this week appeared first on The Motley Fool Australia.

More reading

• 9 ASX shares downgraded by experts post-results this week
• 8 ASX shares upgraded by the professionals post-results this week
• What’s driving the ASX 200 higher today?
• 5 things to watch on the ASX 200 on Friday
• 40 ASX shares with ex-dividend dates next week

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

Reporting season is usually when ASX dividend shares show off. Unfortunately, this August a few of them did the opposite.

Three well-known companies reduced or removed their payouts entirely.

Why these ASX dividend shares reduced their payouts

A dividend cut is not always a distress signal.

Sometimes it reflects a commodity cycle turning over, and sometimes it reflects a board choosing to spend money on the business instead.

However, occasionally it reflects a company that simply has nothing left to pay out with.

All three ASX dividend shares below fall into a different one of those buckets.

1. ASX Ltd (ASX: ASX)

ASX Ltd is the odd one out on this list.

The exchange operator had a strong year, growing operating revenue by 13.3% to $1.25 billion in FY26. Underlying net profit after tax rose 5.2% to $536.4 million.

Shareholders still received less, with the fully franked full-year dividend coming in at 206.5 cents per share, down 7.5% on the prior year.

The explanation is due to the cost line.

Total expenses climbed 21.1% to $557.4 million as the company funded its technology rebuild, the ongoing Accelerate program and one-off costs arising from the ASIC Inquiry.

Guidance points to more of the same, with FY27 expense growth of 18% to 21% and capital expenditure between $180 million and $200 million.

Interim chief executive Darren Yip, said the following:

It has been a highly consequential year for ASX in FY26. In the past 12 months we navigated significant external scrutiny, while continuing to operate critical market infrastructure through an exceptionally active and volatile period for markets. Against that backdrop, we continued to modernise our technology, introduce new products and serve our customers.

2. Whitehaven Coal Ltd (ASX: WHC)

Whitehaven Coal made the most straightforward dividend cut of the three.

The company’s full-year dividend fell to 10.0 cents fully franked, from 15.0 cents the year before.

That is a reduction of exactly one third.

Underlying net profit after tax dropped to $227 million from $319 million, while revenue slipped 7% to $5.4 billion on an average achieved coal price of A$202 a tonne.

The operations themselves performed well.

Managed run-of-mine production rose 3% to 40.3 million tonnes, at the top end of guidance.

Unit costs fell to $132 a tonne from $139, which makes this a coal price problem.

Chief executive Paul Flynn had the following to say about the dividend cut:

Whitehaven will return up to $159 million of capital to shareholders in respect of FY26, including a fully franked final dividend of 6 cents per share to take the full-year dividend to 10 cents, together with an equivalent amount of capital returned through Whitehaven’s on market share buy-back program.

3. Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel Management did not cut its dividend; rather, it abandoned it.

Payments remain suspended after thirteen months of trading suspension.

The company resumed trading on 3 September and promptly lost around 80% of its value.

FY26 itself was not the problem, with revenue and other income rising 4% to $669.9 million while underlying EBITDA climbed 36% to $113.6 million.

The obstacle is a customer remediation liability forecast near $234 million alongside a modified audit opinion.

Foolish takeaway

A dividend cut tells you what a board thinks about the next twelve months.

On that basis I find Whitehaven the least worrying of these ASX dividend shares, because the cash is still being returned through buybacks.

ASX Ltd is the harder call, since the spending is material but the revenue growth has not yet reached shareholders.

Corporate Travel is not an income stock at all right now.

Income investors should not necessarily panic when one of their holdings cuts their dividends: sometimes there are very good reasons for such an action, other times, it can reveal troubling underlying issues with the company.

The post 3 ASX shares that cut their dividend this reporting season appeared first on The Motley Fool Australia.

More reading

• Corporate Travel Management shares crashed 80% on their first day back. What happened?
• Why I’m still smiling after losing 85%
• Warning: Corporate Travel shares have crashed 80%. What on earth just happened?
• Corporate Travel Management shares resume trading after FY26 report
• Corporate Travel Management swings to profit as earnings jump in FY26

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

Aiming to earn $50,000 a year in passive income from your superannuation savings in your retirement years?

If you’re a single homeowner, it’s a decent figure to shoot for to provide a comfortable lifestyle in your golden years.

Now, there are a number of ways you can go about investing your superannuation to build that passive income stream.

Investing in ASX dividend shares

In my opinion, investing in quality ASX dividend shares is the best way to secure a reliable passive income. Ideally these dividends will come with franking credits. Those give you credit for the taxes the companies you invest in have already paid on their profits.

Below we look at three S&P/ASX 200 Index (ASX: XJO) dividend shares that fit the bill.

Of course, a properly diversified passive income portfolio will hold more than just three ASX dividend stocks. While there’s no right number for everyone, somewhere in the range of 15 is a decent figure to aim for.

Ideally you want to own companies that operate across a range of sectors and locations. This helps to reduce the risk that your passive income stream takes a big hit if a single sector or company runs into a rough patch.

So just how big a super balance do I need for a $50,000 annual passive income without drawing down that balance?

How much superannuation will I need?

The exact level of super savings you’ll need will depend on the yield you get.

I believe the three ASX dividend stocks below provide a reasonable example of the dividend yield you could expect to achieve over the longer-term. And, of course, we’ll be hoping the share prices of the companies we invest in go up as well.

So, without further ado, the first ASX 200 dividend share I’d invest some of my superannuation in is Woodside Energy Group Ltd (ASX: WDS).

Over the past 12 months, the ASX 200 oil and gas stock has paid (or will shortly pay) two fully franked dividends totalling $1.63 per share.

At the recent Woodside share price of $32.13, Woodside trades on a fully franked dividend yield of 5.1%. The Woodside share price has gained around 24% over the full year.

The second ASX 200 dividend stock I’d buy is rail freight operator Aurizon Holdings Ltd (ASX: AZJ).

Over the past 12 months, Aurizon has paid (or will shortly pay) two dividends, 90% franked, totalling 23 cents a share. At the recent Aurizon share price of $3.72, the stock trades on a dividend yield of 6.2%. The Aurizon share price is up around 17% over the past 12 months.

And the third dividend stock I’d buy with my superannuation savings is ANZ Group Holdings Ltd (ASX: ANZ).

Over the past 12 months, the ASX 200 bank stock has paid two partly franked dividends totalling $1.66 a share. At the recent ANZ share price of $38.00, ANZ trades on a partly franked dividend yield of 4.4%. The ANZ share price is up around 16% over a year.

So, if I were to invest a similar amount in each of the above ASX 200 dividend stocks, I could expect to earn a yield of 5.2%, with tax benefits from those franking credits.

For my $50,000 annual passive income, I’d need around $956,000 in superannuation savings.

The post How much superannuation do I need to retire with a $50,000 annual passive income? appeared first on The Motley Fool Australia.

More reading

• ASX 200 bank shares led a financial sector rebound last week
• What’s driving the ASX 200 higher today?
• Here’s what brokers tip next for APA, Transurban, Aurizon shares
• 5 things to watch on the ASX 200 on Friday
• Own BHP, Woodside or Coles shares? Here’s what investors should know

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.

What if the biggest dividend yield on the ASX is actually a trap? For investors chasing income for decades, I’d rather own quality ASX shares with resilient cash flows, sustainable payouts and room to grow their dividends.

A strong ASX dividend portfolio should also avoid relying too heavily on any single industry. The goal is to build several income streams that can keep flowing through different economic conditions.

A defensive foundation

Coles Group Ltd (ASX: COL) is one example. Supermarkets may not be glamorous, but Australians need groceries and household essentials in good times and bad.

Coles still faces competition, rising costs and changing consumer behaviour, but its defensive business model and recurring customer demand can provide the earnings stability income investors seek.

Consensus forecasts point to fully franked dividends per share of 83.5 cents in FY27, 88.8 cents in FY28 and 97.4 cents in FY29. That equates to estimated dividend yields of around 3.5% to 4%.

Add essential infrastructure

Transurban Group (ASX: TCL) could provide another income stream. The toll-road operator owns and operates infrastructure across Australia and North America, collecting revenue from millions of journeys.

That can produce relatively predictable cash flows, although investors need to consider its debt, capital requirements and regulatory risks.

For a dividend portfolio, toll roads offer exposure to essential infrastructure without relying directly on consumer spending or commodity prices. Transurban also has major projects that could support future growth.

The ASX shares currently offer a forward FY2027 dividend yield of around 5.2%.

Diversify beyond banks and miners

APA Group (ASX: APA) could add another layer of diversification. The company owns and operates energy infrastructure, including gas pipelines and renewable energy assets. Its revenues are therefore tied more closely to infrastructure than the underlying commodity price itself.

Based on current estimates, this ASX share offers an FY2027 dividend yield of approximately 5.4%.

Property can also have a place in an income-focused portfolio. Digico Infrastructure REIT (ASX: DGT) provides exposure to global data centres through their ownership, operation and development.

Bell Potter forecasts dividend yields of 5.9% in FY2027, 7.3% in FY2028 and 8.3% in FY2029.

Don’t overlook dividend growth

A high yield today doesn’t necessarily mean higher income tomorrow.

Commonwealth Bank of Australia (ASX: CBA) has a long history of rewarding shareholders through dividends and capital growth. Its scale, balance sheet and strong market position make it a major ASX income stock, although banks remain exposed to economic cycles.

Wesfarmers Ltd (ASX: WES) is another ASX share I’d consider. Its dividend yield isn’t usually among the highest on the ASX, but that isn’t necessarily a weakness.

By reinvesting in its businesses and pursuing attractive growth opportunities, Wesfarmers has the potential to grow earnings and, over time, increase shareholder distributions.

Foolish takeaway

Building an ASX dividend portfolio for life isn’t about finding the biggest yield.

I’d rather combine defensive companies, essential infrastructure, property and dividend growers to create multiple income streams.

The objective isn’t simply to collect big dividends today. It’s to own quality ASX shares that can keep paying — and ideally increasing — those dividends for many years to come.

The post Looking for income for life? These are the ASX shares I’d consider appeared first on The Motley Fool Australia.

More reading

• These are the 10 richest people in the world in September
• How to build a winning ASX share portfolio and create wealth
• ASX 200 bank shares led a financial sector rebound last week
• If I invest $15,000 in CBA shares, how much passive income will I receive in 2027?
• Is Coles still one of the best defensive ASX shares to own?

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 Transurban Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group and Transurban 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.

There is wealthy, and then there is seriously wealthy.

At the very top end, fortunes can rise or fall by tens of billions of dollars in the space of a month as share prices and company valuations move around.

So, who sits at the top of the pile right now?

According to Forbes, these are the 10 richest people in the world as of 1 September 2026.

1. Elon Musk – US$892 billion

Elon Musk remains comfortably on top with an estimated fortune of US$892 billion.

His wealth is largely tied to SpaceX (NASDAQ: SPCX) and Tesla (NASDAQ: TSLA). Forbes estimates that his fortune jumped by US$202 billion during August as both companies increased in value. To put this wealth into context, Australia’s largest bank, Commonwealth Bank of Australia (ASX: CBA), has a market capitalisation of around A$270 billion.

2. Larry Page – US$277 billion

Google co-founder Larry Page is second with US$277 billion.

Much of his wealth comes from his holding in Google parent Alphabet Inc (NASDAQ: GOOGL), where he remains a board member and controlling shareholder.

3. Jeff Bezos – US$268 billion

Amazon.com (NASDAQ: AMZN) founder Jeff Bezos sits in third place with US$268 billion.

Bezos remains Amazon’s executive chairman and owns around 8% of the ecommerce and cloud computing giant.

4. Sergey Brin – US$256 billion

Fellow Google co-founder Sergey Brin is worth an estimated US$256 billion.

Like Page, his fortune is closely linked to Alphabet. Forbes notes that Brin has also become more involved with the company’s artificial intelligence efforts.

5. Michael Dell – US$241 billion

Michael Dell has built a US$241 billion fortune.

He founded Dell Technologies (NYSE: DELL) as a teenager and remains its chairman and CEO.

6. Mark Zuckerberg – US$197 billion

Meta Platforms (NASDAQ: META) CEO Mark Zuckerberg is sixth with US$197 billion.

He still owns approximately 13% of the company behind Facebook, Instagram, and WhatsApp.

7. Larry Ellison – US$193 billion

Oracle (NYSE: ORCL) co-founder Larry Ellison is worth US$193 billion according to Forbes.

His fortune increased by US$25 billion during August, helping him move back up the rankings.

8. Jensen Huang – US$191 billion

Nvidia (NASDAQ: NVDA) co-founder and CEO Jensen Huang has an estimated US$191 billion fortune.

His rise has been driven by Nvidia’s extraordinary growth as its chips have become central to the artificial intelligence boom.

9. Steve Ballmer – US$155 billion

Former Microsoft (NASDAQ: MSFT) CEO Steve Ballmer is back in the top 10 with US$155 billion.

Forbes notes that Ballmer has retained a significant Microsoft shareholding since leaving the company.

10. Amancio Ortega – US$148 billion

Finally, Zara co-founder Amancio Ortega has an estimated fortune of US$148 billion.

He owns around 60% of Zara parent Inditex (BME: ITX), with his wealth also reportedly spread across a substantial global property portfolio.

The post These are the 10 richest people in the world in September appeared first on The Motley Fool Australia.

More reading

• Looking for income for life? These are the ASX shares I’d consider
• ASX 200 bank shares led a financial sector rebound last week
• If I invest $15,000 in CBA shares, how much passive income will I receive in 2027?
• What’s driving the ASX 200 higher today?
• ASX shares investors are getting younger and trading more often: CBA report

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, Oracle, and Tesla. The Motley Fool Australia has recommended Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building wealth on the ASX is not about finding one perfect share.

It is about putting together a portfolio that can keep growing even when individual companies disappoint, markets fall, or the economy changes.

That sounds simple enough, but there is a big difference between owning a collection of shares and owning a portfolio with a clear purpose.

Here is how I would approach it.

Build around your best long-term ideas

I would start with the companies I would be most comfortable owning for the next five to ten years.

These should be businesses with strong market positions, healthy balance sheets, and opportunities to keep growing earnings.

Examples could include companies such as Goodman Group (ASX: GMG), ResMed Inc (ASX: RMD), TechnologyOne Ltd (ASX: TNE), REA Group Ltd (ASX: REA), and Wesfarmers Ltd (ASX: WES).

They operate in different industries, but each has qualities that could allow it to become more valuable over time.

This is where a large part of the ASX share portfolio’s wealth creation can come from.

Give growth shares room to compound

A winning portfolio should probably have some exposure to faster-growing businesses as well.

Technology companies such as Xero Ltd (ASX: XRO), Life360 Inc (ASX: 360), and HUB24 Ltd (ASX: HUB) operate in markets where there is still considerable room to expand.

These shares can be more volatile, and valuations can move around quickly.

But if earnings grow strongly for many years, the eventual value of the business can look very different from where it started.

The important thing is giving successful investments enough time.

Selling a great company simply because its share price has already risen can sometimes cut short the most valuable part of the compounding process.

Do not let one idea control the portfolio

Conviction is useful, but concentration can become dangerous.

Even excellent businesses can run into unexpected problems.

I would therefore spread investments across different industries and earnings drivers rather than allowing one company or sector to dominate the portfolio.

Australian investors should also think beyond the local market.

ASX exchange traded funds (ETFs) such as the Vanguard MSCI Index International Shares ETF (ASX: VGS) or iShares S&P 500 ETF (ASX: IVV) can provide global exposure alongside individual Australian shares.

Pay attention to price

Quality alone is not enough. A fantastic company bought at an extreme valuation can still deliver disappointing returns.

I would rather keep a company on my watchlist than convince myself I have to buy it immediately.

There will usually be another opportunity. Results disappoint, markets correct, sentiment changes, and shares fall out of favour. Having cash ready when a quality business becomes more reasonably priced can be valuable.

Keep adding to the portfolio

The portfolio itself is only one part of the equation. Regular contributions can make an enormous difference over a long period.

Adding money each month or quarter means investors continue buying through strong markets, weak markets, recessions, recoveries, and everything in between.

Over decades, the combination of new contributions, rising company earnings, reinvested dividends, and compounding can become extremely powerful.

For example, $1,000 a month into an ASX share portfolio would turn into approximately $725,000 in 20 years with an average 10% annual return.

A winning ASX share portfolio does not need every decision to be right. It needs enough good businesses, sensible diversification, reasonable purchase prices, and plenty of time to compound.

The post How to build a winning ASX share portfolio and create wealth appeared first on The Motley Fool Australia.

More reading

• ASX 200 bank shares led a financial sector rebound last week
• These are the most popular ASX ETFs. Which has performed best over the last year?
• Down 55%: Should I buy Life360 shares in September?
• Top 3 ASX shares I’d buy with $5000 right now
• Buy, hold, sell: Wesfarmers, Endeavour, Macquarie shares

Motley Fool contributor James Mickleboro has positions in Goodman Group, Life360, REA Group, ResMed, Technology One, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Hub24, Life360, ResMed, Wesfarmers, Xero, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Life360, ResMed, and Xero. The Motley Fool Australia has recommended Goodman Group, Hub24, Vanguard Msci Index International Shares ETF, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was a busy week for Australia’s top brokers. This has led to a number of broker notes being released. 

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Collins Foods Ltd (ASX: CKF)

According to a note out of Morgans, its analysts have retained their buy rating and $10.60 price target on this quick service restaurant operator’s shares. Morgans was pleased with Collins Foods’ trading update, highlighting that group sales are up 6.6% for the first 17 weeks of FY 2027. This is being driven by resilience in Australia and European same store sales improving markedly. In light of this, the broker sees value in its shares at current levels and is recommending them to clients. The Collins Foods share price ended the week at $8.47.

Liontown Ltd (ASX: LTR)

A note out of Bell Potter reveals that its analysts have retained their buy rating and $1.90 price target on this lithium miner’s shares. The broker highlights that Liontown’s valuation is lagging the recent recovery in lithium markets and expected tight fundamentals. In fact, it points out that the company’s shares were last trading at this valuation when lithium prices were significantly lower and its net debt was meaningfully higher. In addition, since then, the Kathleen Valley underground ramp-up has been further de-risked. And while it expects lithium markets to remain volatile, Bell Potter believes market fundamentals remain strong. The Liontown share price was fetching $1.23 at Friday’s close.

Qantas Airways Ltd (ASX: QAN)

Analysts at Morgan Stanley have retained their overweight rating and $12.80 price target on this airline operator’s shares. According to the note, the broker believes Qantas is one of the best options among the Australian industrials it has under coverage. It thinks the company is well-placed to benefit from resilient demand and pricing and expects this to help offset higher fuel costs. Morgan Stanley also believes the market is underestimating the earnings potential of the international business as premium capacity and new aircraft increase. The Qantas share price ended the week at $9.39.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Flight Centre, Qantas, and Wesfarmers shares
• 11 ASX 200 shares with reaffirmed buy ratings post-results
• 3 ASX shares just got big upgrades and are tipped to rise almost 30%
• Buy, hold, sell: Liontown, Collins Foods, and Goodman shares
• Buying Qantas shares? Here’s what happened with the ASX 200 airline in August

Motley Fool contributor James Mickleboro has positions in Collins Foods. 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 Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Financial shares led the 11 ASX 200 market sectors with a 1.97% gain last week.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) sank 0.95% to finish at 9,005.9 points.

It’s likely that investors buying the dip on bank shares were responsible for last week’s sector rebound after a difficult August.

Three of the four major banks were smashed last month after all of them reported significantly lower mortgage applications since May.

That followed the Federal Government announcing changes to capital gains tax (CGT) and negative gearing in the FY27 Budget.

James Gruber, CommSec Equity Market Strategist, said the financial sector was the worst performer of the August earnings season. 

ASX 200 financial shares lost 6.13% of their value over the month.

That performance left investors feeling wary of how the housing market downturn now underway may impact the banks’ profitability.

Then last week, the Australian Bureau of Statistics (ABS) released economic news that changed the outlook for the banks.

Resilient economy benefits bank stocks

The ABS revealed that gross domestic product (GDP) rose 0.4% in the June quarter and 2.1% over 12 months.

That was stronger than consensus expectations of 0.3% growth in June and 1.8% annual growth, and ahead of the Reserve Bank’s forecast of 1.9% annual growth.

The data raised the chances of another interest rate rise as early as next month, and higher rates can be supportive for bank earnings.

If the banks’ lending rates stay above deposit rates, which is the norm, then a higher cash rate can boost their net interest margins (NIMs).

A stronger economy can also be positive for banks because it typically means stable employment and resilient household spending.

That means people can keep up their repayments on their home loans and other debts with the banks.

Expectations of another rate hike pushed the 3-year government bond yield to 4.82%, and 10-year yields fell to levels not seen since 2011.

This is why the broader ASX 200 had its worst day in three months on the day the GDP data was released, and why it finished the week in the red.

Higher bond yields aren’t great for shares.

When investors can get a pretty high and virtually ‘risk-free’ return from defensive assets like cash or bonds, they can go ‘risk-off’.

That means they are less inclined to invest in shares, which carry a higher risk of capital losses.

Or they might rotate out of growth shares into dividend stocks or blue-chips with reliable earnings (such as the banks!)

This may have also supported ASX 200 bank share prices last week.

As for the rest of the market, 6 of the 11 sectors finished the week in the red.

Let’s recap.

Financial shares led the ASX sectors last week

Commonwealth Bank of Australia (ASX: CBA) shares rose 2.02% to $160.42, recovering some of their 9.9% tumble during August.

Westpac Banking Corp (ASX: WBC) shares lifted 3.13% to $34.96, taking back some of their 8.8% decline last month.

National Australia Bank Ltd (ASX: NAB) shares increased 2.51% to $39.25, pulling back some of their 6.5% loss during earning season.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares closed 3.32% higher at $37.95.

The ANZ share price fell just 0.3% last month as investors were impressed with the fruits of a continued reset under CEO Nuno Matos.

Macquarie Group Ltd (ASX: MQG) shares lifted 0.04% to $251.87, recovering a little of their 1% decline last month.

Bendigo and Adelaide Bank Ltd (ASX: BEN) shares rose 0.47% to $10.63, taking back some of their 6.4% fall in August.

Bank of Queensland Ltd (ASX: BOQ) shares lifted 3.89% to $6.68, wiping out their 1.66% dip last month.

Among the investment companies and wealth managers, Magellan Financial Group Ltd (ASX: MFG) shares fell 3.43% to $8.74.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL) shares fell 0.25% to $44.22.

Among the financial services providers, AMP Ltd (ASX: AMP) shares jumped 5.08% to $2.48.

Hub24 Ltd (ASX: HUB) shares fell 3.58% to $73.81 and Netwealth Group Ltd (ASX: NWL) dropped 5.03% to $20.37.

Buy now, pay later company Zip Co Ltd (ASX: ZIP) fell 3.94% to $2.44 per share.

Among the ASX 200 insurance shares, Insurance Australia Group Ltd (ASX: IAG) rose 2.55% to $8.05.

The Suncorp Group Ltd (ASX: SUN) share price leapt 5.04% to $19.37.

Financial companies are among 40 ASX shares with ex-dividend dates next week.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Financials (ASX: XFJ)	1.97%
Consumer Staples (ASX: XSJ)	0.88%
Communication (ASX: XTJ)	0.77%
Healthcare (ASX: XHJ)	0.43%
A-REIT (ASX: XPJ)	0.02%
Energy (ASX: XEJ)	(0.74%)
Utilities (ASX: XUJ)	(0.83%)
Industrials (ASX: XNJ)	(1.2%)
Consumer Discretionary (ASX: XDJ)	(1.79%)
Materials (ASX: XMJ)	(4.64%)
Information Technology (ASX: XIJ)	(5.21%)

The post ASX 200 bank shares led a financial sector rebound last week appeared first on The Motley Fool Australia.

More reading

• How to build a winning ASX share portfolio and create wealth
• If I invest $15,000 in CBA shares, how much passive income will I receive in 2027?
• Buy, hold, sell: South32, Australian Finance Group and Magellan shares
• Buy, hold, sell: Wesfarmers, Endeavour, Macquarie shares
• 8 ASX shares upgraded by the professionals post-results this week

Motley Fool contributor Bronwyn Allen has positions in Magellan Financial Group and Zip Co. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24, Macquarie Group, Netwealth Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank, Netwealth Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Hub24 and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.