Author: openjargon

The ASX healthcare share sector is suffering through a difficult period following challenging conditions driven by competition and other factors. CSL Ltd (ASX: CSL) and Cochlear Ltd (ASX: COH) are just two of the names that have suffered major declines. But, amid the pain, there could be a great dividend opportunity in the sector.

Medibank Private Ltd (ASX: MPL) may not be viewed as one of the most appealing blue-chip ASX dividend shares out there. But, it offers both a good dividend yield and regular dividend growth, which is a powerful combination for passive income.

Let’s look at those dividend positives.

Good dividend yield

The ASX healthcare share is forecast to deliver a larger dividend in the 2026 financial year, with a projected annual payment of 19.9 cents per share.

At the time of writing, that translates into a potential forward grossed-up dividend yield of 6.2%, including franking credits. Excluding franking credits, that’s a dividend yield of 4.3%.

That’s an attractive level of potential income. For me, I’d take that over a term deposit offering a fixed level of income.

Regular dividend growth

Since the business started paying a dividend per share in 2015, the business has regularly increased its payout. In fact, every year since then, there has only been one year (2020) when it didn’t increase its annual dividend per share, which is a great track record.

Dividend growth is not guaranteed, of course. But, the business has demonstrated an impressive ability to frequently increase its earnings each reporting period, while also increasing the dividend.

Is Medibank a buy?

According to CMC Invest, of seven ratings on the business, only two rate it as a buy and the other five ratings are holds.

However, the average price target of $5.11 suggests a possible rise of around 10% over the next 12 months. We can add the potential dividends to that possible return.

In a recent business update, the ASX healthcare share highlighted that APRA’s quarterly private health insurance statistics showed industry growth of 2.1% in the 12 months to 31 December 2025, which is a small but pleasing tailwind for policyholder growth. Medibank reported 1.1% growth in the nine months to March 2026.

Medibank noted that increasing participation among younger cohorts continues to support ongoing affordability and long-term industry sustainability, even if competition has increased.

The business appears to have defensive earnings – it highlighted that during periods of economic pressure, policyholders tend to prioritise private health insurance.

Medibank also noted that non-resident growth in student and worker segments saw growth in the FY26 third-quarter. This growth reflects improved lifecycle management and a greater focus on direct and digital consumer wins.

Finally, the Medibank Health business continues to grow in size at a pleasing rate – it saw operating profit growth of 30% in the third quarter of FY26 compared to the same period in FY25.

Overall, I think the ASX healthcare share would be a good one to buy for passive income and it has a promising future, though it’s not the only business I’d buy for dividends.

The post Is this ASX healthcare share a buy for its 6.2% dividend yield? appeared first on The Motley Fool Australia.

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

The PLS Group Ltd (ASX: PLS) share price has been one of the best performers in the S&P/ASX 200 Index (ASX: XJO) over the past year.

As the above chart shows, it has been a rocket since the start of FY26. At the time of writing, it has risen just over 313% in the last 12 months.

The ASX lithium share has significantly benefited from a recovery of the lithium price after a period of weakness during the last couple of years.

Let’s look at how big the capital gains have been for a shareholder.

How much a $10,000 investment has grown

A year ago, the PLS Group share price was $1.47 – it has come a long way since then, more than quadrupling in value.

If someone owned $10,000 of PLS Group shares a year ago, it would now (at the time of writing) be worth approximately $43,000. I think almost every investor in the world would be happy with that level of return.

However, when it comes to huge gains like that, it’s very important to remember that past performance is not a guarantee of future performance.

Is the PLS Group share price a buy right now?

According to CMC Invest, there have been 12 recent buy ratings on the ASX lithium share, with six of those being a buy, four being a hold and two being a buy.

While analysts are mixed on their view on the business, the average view on the share price is fairly negative.

Of those 12 ratings on the ASX lithium share, the average price target is $5.57. That means, at the current PLS Group share price, it could fall by more than 12%.

The most optimistic analyst has a price target on the business of $6.78, suggesting a single-digit rise for the company, in percentage terms, over the next year.

Its financials are certainly in a much better place.

In the FY26 third-quarter update for the three months to March 2026, the company reported that compared to the three months to December 2025 – just three months prior – revenue jumped 52% thanks to a 61% increase in the realised price for its lithium to US$1,867 per tonne.

Thanks to this jump, its cash margin (profit) from operations increased 178% to A$461 million, underpinned by stronger pricing and lower production costs. The cash balance increased 52% to A$1.45 billion.

It’s clear to see why the PLS Group share price has risen so much – its ability to make profit is significantly higher now. The lithium price will determine what happens next – there are good reasons why it could rise or fall amid the Middle East uncertainty.

But, I think there are other ASX shares that could be a better value buy, considering how far the ASX lithium share has risen.

The post $10,000 invested in PLS Group shares 12 months ago is now worth… appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

ASX 200 materials led the market sectors last week, rising 4.26%, as several miners set new records or multi-year highs.

The S&P/ASX 200 Index (ASX: XJO) rose 0.91% to close at 8,744.4 points, marking the benchmark’s first weekly gain in four weeks.

The long-term outlook for Australian mining is strong, with 5 key drivers behind a new commodities super cycle now underway.

However, the war in Iran and the global oil shock remains a short-term headwind that is expected to drive miners’ costs higher in 2026.

As the world awaits Iran’s response to the latest peace plan proffered by the US, share markets remain volatile.

Last week, only four of the 11 market sectors finished in the green.

Let’s review.

Higher commodity prices boost ASX 200 mining shares

Several ASX 200 mining shares hit new records or multi-year highs as key commodities lifted over the week.

On Friday, the iron ore price was US$110.95 per tonne, up 3.5% over the week, due to strong buying from mainland China.

Trading Economics analysts said:

Sentiment was further lifted by a continued drawdown in steel inventories, which have now declined for seven consecutive weeks, pointing to potential restocking demand for raw materials.

On the macro front, China’s manufacturing PMI remained in expansion territory, while policymakers in Beijing continued efforts to stabilize the real estate sector, improving the broader economic outlook.

Also last week, the gold price rose 2.2% to US$4,730 per ounce, and silver lifted 6.3% to US$80.61 per ounce.

The copper price increased 3.7% to US$6.25 per pound.

ASX 200 lithium shares had a strong week as lithium prices continued their recovery.

Lithium prices finally bottomed out in mid-2025 after a devastating two-year downward spiral.

Since then, the lithium spodumene price has more than quadrupled to US$2,792 per tonne on Friday.

The lithium carbonate price also reached its highest level since 2023 at US$28,949 per tonne, up 3.5% for the week.

Which ASX mining shares hit new highs last week?

The BHP Group Ltd (ASX: BHP) share price increased 5.48% to close out the week at $57.95.

BHP shares reached a 10-week high of $58.71 on Thursday, their highest level since the stock hit a record $59.39 on 3 March.

BHP is now a whisker away from re-taking its traditional crown as the largest company on the ASX 200.

For now, Commonwealth Bank of Australia (ASX: CBA) remains at the top with just $2.6 billion in market cap separating it from BHP.

The Rio Tinto Ltd (ASX: RIO) share price lifted 3.93% to close at $178.72 after reaching a new all-time high of $180.33 on Friday.

The Mineral Resources Ltd (ASX: MIN) share price rose 4.27% to $69.55, after reaching a two-year high of $71.62 on Friday.

The market’s largest ASX 200 lithium share, PLS Group Ltd (ASX: PLS) rose 1.95% to $6.26 on Friday.

PLS Group shares also set a new record last week at $6.38 apiece.

Other impressive gains among the miners

Fortescue Ltd (ASX: FMG) shares gained 6.3% to finish the week at $21.27.

ASX 200 copper share Sandfire Resources Ltd (ASX: SFR) lifted 7.33% to $18.01.

The Capstone Copper Corp (ASX: CSC) share price gained 4.3% to $12.37.

Nickel and lithium producer IGO Ltd (ASX: IGO) lifted 8.59% to $8.34 per share.

Lynas Rare Earths Ltd (ASX: LYC) shares closed the week 1.57% higher at $19.44 apiece.

What about ASX gold shares?

The gold price was US$4,730 per ounce on Friday, up 2.2% over the week and up 9.1% in the calendar year to date.

The market’s largest ASX 200 gold share, Northern Star Resources Ltd (ASX: NST) edged 0.05% lower to $21.16 last week.

The Evolution Mining Ltd (ASX: EVN) share price lifted 7.4% to $13.05, and Newmont Corporation CDI (ASX: NEM) rose 4.33% to $160.35.

Regis Resources Ltd (ASX: RRL) and Vault Minerals Ltd (ASX: VAU) announced their merger last week.

The Regis Resources share price lost 2.97% to close at $6.85 while Vault Minerals lifted 3.98% to $4.70 per share.

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
Materials (ASX: XMJ)	4.26%
Industrials (ASX: XNJ)	1.02%
Information Technology (ASX: XIJ)	0.79%
Communication (ASX: XTJ)	0.08%
Financials (ASX: XFJ)	(0.19%)
A-REIT (ASX: XPJ)	(0.97%)
Consumer Discretionary (ASX: XDJ)	(2.64%)
Healthcare (ASX: XHJ)	(2.92%)
Consumer Staples (ASX: XSJ)	(3.56%)
Utilities (ASX: XUJ)	(4.46%)
Energy (ASX: XEJ)	(7.62%)

The post ASX 200 mining shares smash multi-year highs as key commodity prices rise appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. 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.

If you are looking for the top ASX dividend shares to buy, then read on.

That’s because the two listed below have just been named as buys by the team at Bell Potter. Here’s what the broker is saying about them:

DigiCo Infrastructure REIT (ASX: DGT)

The first ASX dividend share that Bell Potter is tipping as a buy this month is the DigiCo Infrastructure REIT.

It is a data centre focused property company with a focus on the Australian and US markets.

Bell Potter was pleased with the announcement of an asset sale last week, which has strengthened its balance sheet. It said:

Today’s announcement is a clear positive for DGT in removing balance sheet overhang given the substantial level of debt on foot, risk from increasing marginal cost of debt, and ability to fund its SYD1 development expansion which is its best use of capital given company-stated 15% incremental yield on cost.

Subject to completion, and LAX asset disposals (US$71m book value) which are a drag on the balance sheet (non yielding), the pay down of debt, and usage into SYD1 improves the forward earnings profile which could see upside given the lack of Aus market supply short term.

In the meantime, Bell Potter expects dividends of 12 cents per share in FY 2026 and then 20 cents per share in FY 2027. Based on its current share price of $2.77, this would mean dividend yields of 4.3% and 7.2%, respectively.

The broker has a buy rating and $3.40 price target on its shares, which implies potential upside of 22%.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share that Bell Potter is tipping as a buy is Universal Store.

It is a leading youth focused fashion retailer operating the Universal Store, Perfect Stranger, and Thrills brands.

Bell Potter thinks the company’s shares are undervalued, which has created a buying opportunity for income investors. It said:

At 13x FY27e P/E (BPe), we see an entry opportunity to a high-quality retailer as we remain optimistic on UNI’s performance in 4Q26 given supportive comps and look forward to FY27e in delivering continued execution driven market share expansion across retail banners. In line with selective consumption trends across the broader sector, we retain our views of the youth customer prioritising on-trend streetwear and expect UNI to benefit with their leading position. Maintain BUY.

As for income, Bell Potter is forecasting fully franked dividends of 36.9 cents per share in FY 2026 and then 39.3 cents per share in FY 2027. Based on its current share price of $6.99, this would mean dividend yields of 5.3% and 5.6%, respectively.

Bell Potter has a buy rating and $9.30 price target on its shares. This implies potential upside of 33% for investors.

The post These ASX dividend shares offer big yields and potential upside of 20%+ appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Universal Store. 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.

CSL Ltd (ASX: CSL) shares have had a year to forget.

Shares in the S&P/ASX 200 Index (ASX: XJO) biotech giant closed down 1.0% on Friday, trading for $120.84 apiece.

That sees the stock down a painful 49.6% over the past 12 months, relative to the 6.4% gains posted by the benchmark index over this same time.

Now CSL does pay dividends twice yearly. But the $4.26 a share in unfranked dividends the biotech company paid out over the last year fall far short of making up for the steep capital losses.

At Friday’s close, CSL shares trade on a 3.5% unfranked trailing dividend yield.

Looking ahead, however, Mans Carlsson, a co-portfolio manager at Ausbil Investment Management, believes the ASX healthcare stock is well-placed for material recovery (courtesy of The Australian Financial Review).

Should you buy CSL shares today?

Noting that his fund is overweight CSL shares, Carlsson said:

CSL is a quality business and while the company has had its issues recently, the business ultimately benefits from strong underlying demand and has a leading position in its core plasma business.

The second reason Carlsson is bullish on the biotech stock is the recent leadership shakeup.

Carlsson noted:

The new chief executive, Gordon Naylor, has come in after a period of challenging performance. He is a veteran, with over 30 years of experience in the company, having previously served as chief financial officer, and with a mandate to accelerate CSL’s strategic transformation.

CSL announced the leadership change on 10 February. The handover from outgoing CEO Paul McKenzie, who served in the top role for three years, was effective immediately.

Commenting on his appointment on the day, Naylor said:

I have had a long association with CSL. It is a great company with innovative platforms, world-class people, as well as differentiated medicines and vaccines essential for patients and communities globally.

My immediate priority will be to work closely with the board and leadership team on executing our strategic transformation and delivering for our patients, public health and shareholders.

Which brings us to the third reason you might want to buy CSL shares today.

According to Ausbil’s Carlsson:

We believe the current valuation to be more moderate relative to its own history and some market cap peers. In our view, it will not take too much of a positive surprise in the future for the stock to re-rate back to a higher multiple again.

The post 3 compelling reasons to buy CSL shares today appeared first on The Motley Fool Australia.

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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.

A $1,000 investment is more than enough to get started with ASX exchange traded funds (ETFs).

The appeal is simple. Instead of trying to build a basket of individual ASX shares with the money, investors can gain exposure to dozens or even hundreds of shares through a single trade.

But which ETFs could be worth looking at right now? Here are three ASX ETFs that stand out for different reasons.

iShares S&P 500 ETF (ASX: IVV)

The first ASX ETF to look at is the iShares S&P 500 ETF.

This fund gives investors access to the S&P 500, which is home to many of the largest listed companies in the United States.

That means a $1,000 investment in the iShares S&P 500 ETF can provide exposure to businesses across technology, healthcare, financials, industrials, and consumer sectors.

Its holdings include Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and JPMorgan Chase (NYSE: JPM).

The advantage here is diversification. This fund is not a narrow bet on one industry or theme. It offers exposure to a large part of the US share market, which has historically been a major driver of global equity returns.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

Another ASX ETF that could be worth considering is the Betashares Global Robotics and Artificial Intelligence ETF.

This fund targets companies involved in robotics, automation, and artificial intelligence. These areas are becoming more important as businesses look for ways to improve productivity and reduce costs.

It owns companies across several markets and industries, which gives investors exposure to more than just one part of the AI story. This includes Intuitive Surgical (NASDAQ: ISRG), NVIDIA (NASDAQ: NVDA), and ABB (SWX: ABBN).

This mix gives the fund exposure to factory automation, chips, medical robotics, and industrial technology. These are areas where adoption can continue to grow over many years.

This fund was recently recommended by analysts at Betashares.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

A third ASX ETF worth considering is the Betashares Global Cash Flow Kings ETF.

This fund focuses on global companies that generate strong free cash flow.

That can be an attractive trait because free cash flow gives businesses options. They can reinvest in growth, pay dividends, buy back shares, reduce debt, or make acquisitions.

This fund is therefore less about chasing a single hot theme and more about backing companies with financial strength.

Its holdings include Alphabet (NASDAQ: GOOG), Mastercard (NYSE: MA), and Palantir (NASDAQ: PLTR).

For those wanting quality global exposure with a cash flow focus, the Betashares Global Cash Flow Kings ETF could be a smart ETF to buy with $1,000. It was also recently recommended by analysts at Betashares.

The post Are these the best ASX ETFs to buy with $1,000 now? appeared first on The Motley Fool Australia.

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JPMorgan Chase is an advertising partner of Motley Fool Money. 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 Abb, Alphabet, Amazon, Intuitive Surgical, JPMorgan Chase, Mastercard, Microsoft, Nvidia, Palantir Technologies, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Microsoft, Nvidia, 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.

Qantas Airways Ltd (ASX: QAN) shares have had a rough run since the end of February.

On Friday, shares in the S&P/ASX 200 Index (ASX: XJO) airline stock closed the day at $8.90 each.

That sees the Qantas share price down 16.43% since the 25 February close of $10.65 a share.

For some context, the ASX 200 is down 4.21% over this same period.

Now, I should mention that Qantas traded ex-dividend on 10 March. Eligible stockholders will have received that fully-franked 19.8 cents a share dividend on 15 April. Which puts the accumulated value of the stock down a lesser 14.57% since February.

We’ll look at why a leading fund manager believes Qantas stock could come flying back in a tick.

But first…

What’s been pressuring the ASX 200 airline stock?

Qantas shares closed down 9.2% on 26 February, despite reporting some strong half-year results on the day.

Highlights for the six months included a 6% year-on-year increase in revenue to $12.9 billion. And on the bottom line, Qantas reported underlying profit before tax of $1.46 billion, up $71 million.

It’s unclear if the selling was spurred by investor concerns over reduced travel demand amid rising inflation and interest rates, or whether some investors may have seen the writing on the wall in terms of the US and Israeli strikes on Iran over the following weekend.

But the onset of the Iran war on 28 February has certainly thrown up headwinds for Qantas and other global airlines.

Atop from potentially decreasing international travel demand, the Middle East conflict has sent oil prices soaring.

On 27 February, Brent crude oil was trading for US$72 per barrel. The oil price then went on to top US$118 per barrel on 29 April. On Friday, Brent crude oil was fetching US$102 per barrel, up almost 30% since the start of the war.

Now, that’s a big deal for Qantas shares.

Why?

Well, on 26 February, Qantas forecast that its second half-year (H2 FY 2026) jet fuel costs would come in at around $2.5 billion.

But in a market update on 14 April, Qantas revealed that it now expects second half-year jet fuel costs to be in the range of $3.1 billion to $3.3 billion.

Which certainly puts my own fuel bills into perspective!

Why Qantas shares could be poised for take off

Asked which stock his fund holds that’s most undervalued by the market, Mans Carlsson, co-portfolio manager at Ausbil, recommended that investors consider Qantas (courtesy of The Australian Financial Review).

And much of his bullishness stems from the impact of the recent oil price spike.

“The market has priced an assumption that oil prices remain elevated, and we believe that investors need to look through the current geopolitical crisis,” Carlsson said.

“At present, Qantas is trading at an FY28 price-earnings ratio of approximately seven times, which is extremely low versus the market average,” he added.

Summarising his bullish view on Qantas shares, Carlsson concluded, “We think that as we move beyond the oil supply shock, Qantas could be set for a significant re-rate on improving operating conditions.”

The post Down 17% since February, why Qantas shares are looking like a bargain buy appeared first on The Motley Fool Australia.

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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.

Light & Wonder Inc (ASX: LNW) released its quarterly results to the market over the past week, and the brokers like what they see.

Both of the analyst teams at UBS and Macquarie have very bullish share price targets on Light & Wonder shares, which we’ll get to shortly.

Solid, yet unexceptional, first quarter

Firstly, let’s look at what the company announced.

Light & Wonder said in its statement to the ASX that revenue grew 2% during the first quarter to US$790 million, “against a strong prior year period”.

The company said:

Light & Wonder delivered a solid start to 2026 underpinned by its highly diversified business model, continued disciplined execution across all three businesses and strong cash flow generation, while demonstrating resilience against a backdrop of macroeconomic and geopolitical uncertainty, including tariff-related pressures. We continue to execute against our commitment to deliver enhanced quality of earnings through recurring revenue(4), with Gaming operations and iGaming as the primary growth drivers during the quarter, each delivering double-digit year-over-year revenue increases. This was further underpinned by continued operational momentum and content strength.

The company’s net income came in at US$52 million, down 37% on the first quarter the previous year, “reflecting approximately US$50 million in legal reserve contingencies associated with certain legacy legal matters, which impacted year-over-year net income and net income per share growth by approximately 61% and 67%, respectively”.

The company said its installed base in the North American market grew for the 23^rd consecutive quarter.

Light & Wonder Chief Executive Officer Matt Wilson said:

The first quarter of 2026 marks the beginning of the next phase of the Company’s growth trajectory: one defined by our content-centric operating model, deepening customer relationships, disciplined execution, expanding margins and enhanced capital structure. We are seeing the benefits of our continued investment in studios and content, as our franchises drive strong game performance across the portfolio. Looking ahead, we remain focused on investing in product innovation and talent to further strengthen our recurring revenue model and enhance our global competitive position as we progress toward our 2028 financial targets.

Shares looking cheap

Macquarie said in a note to clients following the release of the quarterly results that it was positive that Light & Wonder had flagged an acceleration of its buyback in the second quarter.

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

Macquarie’s price target on the stock is $200, compared with $111.02 at the time of writing.

UBS said the first quarter results disappointed against their expectations, “but we have hardly changed our full year estimates or valuation and remain positive on LNW with significant valuation upside”

UBS has a price target of $210 on Light & Wonder shares.

Light & Wonder is valued at $9.09 billion.

The post How high do UBS and Macquarie think this ASX gaming stock will go? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Westpac Banking Corp (ASX: WBC) shares may be one of the most popular dividend options because of the company’s perceived stability and dividend yield.

The ASX bank share usually has a higher dividend yield than competitors like Commonwealth Bank of Australia (ASX: CBA) and Macquarie Group Ltd (ASX: MQG), and a similar yield to names like National Australia Bank Ltd (ASX: NAB) and ANZ Group Holdings Ltd (ASX: ANZ).

Westpac has significantly increased its payout since the COVID-19 pandemic headwinds in 2020.

The recent FY26 half-year result was another example of the ASX bank’s share stability for shareholders and its ability to regularly increase its dividends.

In the HY26 result, Westpac hiked its interim dividend per share by 1.3% to 77 cents after a 1% year-over-year rise of the underlying net profit after tax (NPAT) to $3.5 billion.

In this article, we’re going to look at the annual FY27 dividend, which will be paid in 2027.

2027 dividend projection for owners of Westpac shares

According to the projection on CMC Invest, the ASX bank share is projected to pay an annual dividend per share of $1.625 in the 2027 financial year.

At the time of writing, this forecast translates into a dividend yield of 4.2% excluding franking credits and a grossed-up dividend yield of 6% including franking credits.

If someone were to invest $8,000 in Westpac, they would be able to buy 205 Westpac shares (with a little bit of money left over).

With those 205 Westpac shares, investors could receive $333.13 of cash and $475.89 overall, including the franking credits.

Is this a good time to invest in the ASX bank share?

According to CMC Invest, there have been nine analyst ratings calls on the business in the last three months.

Of those nine, six of them were a sell and three of them were a hold. So, the investment professionals are largely negative on the appeal of the company’s valuation right now.

The average price target of those nine ratings is $35.14. That means, collectively, those analysts are predicting the Westpac share price could fall by around 10% within the next year.

Earlier in May, the Westpac share price had fallen to below $38, but it has since jumped higher after the FY26 half-year result and a higher prospect of interest rate rises amid stronger inflation.

For now, there seem to be more compelling ASX shares out there to buy.

The post If I invest $8,000 in Westpac shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

More reading

• Here’s what Westpac says the RBA will do with interest rates next
• ASX share volatility is rising, are you making this mistake?
• Why Macquarie, QBE, Tabcorp, and Westpac shares are dropping today
• 7 ASX 200 shares just upgraded this week
• The ASX 200 just suffered its biggest fall in 7 weeks. Here’s what’s going on

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

ASX exchange-traded funds (ETFs) have surged in popularity among Australian investors for good reason. They offer low-cost diversification, simplicity, and easy access to a wide range of markets.

But while ETFs are beginner-friendly, that doesn’t automatically mean they’re easy to use well.

If you’re just getting started, avoiding a few common mistakes can make a meaningful difference to your long-term results.

Overcomplicating your portfolio

One of the most common errors is overcomplicating a portfolio. New investors often assume that owning more ASX ETFs automatically means better diversification. In practice, holding multiple funds that track similar global markets can create unnecessary overlap without adding real benefit.

A simpler approach often works better. A single broad-market ETF can already provide exposure to hundreds or even thousands of companies in one trade, delivering instant diversification without the clutter.

Chasing trends instead of strategy

Another trap is chasing what’s popular rather than sticking to a strategy. It’s easy to get drawn into trending themes like technology, artificial intelligence, or niche thematic ASX ETFs. While these can be exciting, they often come with higher volatility and higher fees.

A more disciplined approach is to focus on broad, low-cost index funds that track established markets. Over time, consistency tends to matter more than trying to pick the next hot theme.

Ignoring fees adds up

Fees are another factor many beginners underestimate. Even small differences in management costs can compound significantly over the long term. A fund charging 0.7% annually versus 0.2% might not look like much in isolation, but over decades it can materially reduce returns.

That’s why low-cost ASX ETFs are often the starting point for many investors. Keeping costs down is one of the few controllable factors in investing, and it directly impacts outcomes.

A simple ETF strategy to get started

For those looking for a simple starting framework, a basic ETF strategy can go a long way. Begin with one or two broad-market ASX ETFs, invest consistently through regular contributions, reinvest dividends where possible, and stay invested over the long term. This approach removes much of the emotional decision-making around timing the market.

In terms of building a core portfolio, many investors start with exposure to both domestic and international markets. For Australian shares, an ETF tracking the S&P/ASX 200 Index (ASX: XJO) like BetaShares Australia 200 ETF (ASX: A200) provides access to the country’s largest companies, including major banks, miners, and healthcare stocks.

To diversify globally, the Vanguard MSCI Index International Shares ETF (ASX: VGS) is a popular option, offering exposure to thousands of companies across developed markets. This helps reduce reliance on the Australian economy and adds exposure to global sectors like technology and consumer brands that are underrepresented locally.

For investors focused on income, dividend-oriented ASX ETFs, such as the Vanguard Australian Shares High Yield ETF (ASX: VHY), can provide regular cash distributions, though they often lean more heavily toward sectors such as financials and resources.

Foolish Takeaway

Ultimately, ASX ETF investing doesn’t need to be complex to be effective. In fact, simplicity is often the edge. By avoiding common beginner mistakes like over-diversifying, chasing trends, and ignoring fees, investors can build strong long-term portfolios with minimal effort.

Start small, stay consistent, and think long term. That’s often where the real advantage lies.

The post Building wealth with ASX ETFs? Don’t make these errors appeared first on The Motley Fool Australia.

More reading

• 10 years until retirement: Is your superannuation ready?
• How to build a $1,000 a month passive income from the ASX
• How to make $12,000 of passive income from these ASX ETFs
• ASX share volatility is rising, are you making this mistake?
• How much do I need to invest in ASX dividend shares for a retirement income of $5,000 per month?

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF and 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.