Author: openjargon

Washington H Soul Pattinson vs PM Capital Global Opportunities Fund shares

If you’re tossing up between Washington H Soul Pattinson (ASX: SOL) and PM Capital Global Opportunities Fund (ASX: PGF) shares, you’re looking at two very different investment companies. One is a legendary Aussie investment house with more than a century of history; the other is a globally focused LIC aiming to deliver long-term capital growth. Which one might suit your portfolio better? Let’s take a closer look at both.

The case for Washington H Soul Pattinson

Soul Patts, as it’s fondly known, is one of the ASX’s oldest and most respected investment companies. It holds a diversified portfolio, spanning listed and private companies, emerging businesses, real assets like property and agriculture, and more. It counts major stakes in TPG Telecom Ltd (ASX: TPG) and New Hope Corporation (ASX: NHC), with recent growth including the merger of Brickworks into the group.

Notable fundamentals for Soul Patts include:

• Market cap: $16.63 billion — one of the largest and most stable investment groups around.
• P/E ratio: 6.83 — hinting at a relatively undemanding valuation.
• YTD return: Up 19.36% for 2026 so far, showing strong momentum.
• Dividend yield: 2.44% fully franked, with a long track record of steadily increasing payouts.

Its 100% franking is a plus for Aussie income investors, and decades of consistent dividend growth add to its appeal. Soul Patts describes its goal as delivering shareholder returns via both capital growth and steadily increasing dividends — a dual focus.

The case for PM Capital Global Opportunities Fund

PM Capital Global Opportunities Fund is a listed investment company (LIC) set up to give Australians exposure to a portfolio of listed securities across global markets. It aims squarely at long-term capital growth, using the skills of the PM Capital team to pick opportunities outside Australia.

A few key points stand out:

• Market cap: $1.92 billion — much smaller than Soul Patts, but still substantial for a LIC.
• Dividend yield: 4.72% fully franked — easily outpacing SOL on yield.
• YTD return: 5.32% for 2026, lagging SOL over the same period.

Valuation comparison

Here’s how the key numbers stack up, where they’re available:

	Washington H Soul Pattinson (SOL)	PM Capital Global Opportunities Fund (PGF)
Market Cap	$16.63 billion	$1.92 billion
P/E Ratio	6.83	N/A
Dividend Yield	2.44% (100% franked)	4.72% (100% franked)
YTD Return	19.36%	5.32%

Soul Patts sports a much larger market cap, while PGF trades at a yield almost double, but doesn’t provide standard profit metrics. PGF’s income focus shows in its higher yield, while Soul Patts has outperformed on recent growth.

Recent share price performance

The numbers below are based on provided pricing up to 15 September 2026.

Over the last three weeks, Soul Patts’ share price has oscillated between roughly $43.75 and $45.30, with a slightly negative bias in the past few sessions but strong gains overall, consistent with its positive year-to-date return of 19.36%.

PGF shares have traded tightly around $3.15–$3.37 in the same window, with movement mostly sideways to slightly down in recent days. Its year-to-date return is just 5.32%.

Long story short, Sol Patts has provided significantly greater share price growth than PGF in 2026 so far.

Which is the better buy?

If I had to pick between these two today, I’d lean toward Washington H Soul Pattinson. The sheer scale and depth of its diversification — through listed, private, real assets, and credit — gives me confidence in its resilience and ability to ride out market turmoil. It’s hard to argue with more than a century of history and a market cap that dwarfs PGF.

But it’s not just size: SOL has delivered far stronger share price growth this year, and while its 2.44% yield is more modest, that’s backed by a rich history of increases and 100% franking. It also trades at a low price-to-earnings ratio of 6.83, suggesting you’re not overpaying for those assets.

PGF certainly shines on dividend yield — at 4.72%, it’s better for upfront income. And its global approach might suit investors wanting international exposure from Aussie soil. But with less diversification, I view it as a riskier play right now.

For my money, the combination of SOL’s growth, proven management, and ultra-diverse portfolio are hard to beat, especially when share price momentum is humming.

The post Soul Patts vs PM Capital Global Opportunities Fund: Which is better? appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Santos Ltd (ASX: STO), Ramsay Health Care Ltd (ASX: RHC), and AMP Ltd (ASX: AMP) shares have climbed to fresh annual highs in Wednesday trade as the S&P/ASX 200 Index (ASX: XJO) swings into the green.

Here’s what has happened, and what brokers tip next.

Santos shares

The ASX energy shares have climbed over 2% to $8.74 at the time of writing in what is the highest recorded share price for Santos since January 2020. Today’s increase means the shares are now 42% higher for the year-to-date and 14% higher than 12 months ago.

It looks like the oil and gas major’s shares are enjoying tailwinds from a climbing oil price. According to Trading Economics, crude oil is trading around US$104 per barrel on Wednesday. This is a retreat from a high of US$105 per barrel yesterday, but it still represents a 24% increase in the price of crude oil over the past month alone. 

Prices are rising amid new drone attacks and ongoing conflict in the Middle East which have restricted oil supply even further. 

And investment bank Goldman Sachs said recently that it thinks crude oil could rise above US$120 if production remains well below pre-conflict levels. 

Experts are bullish that Santos shares can keep climbing higher, too. TradingView data shows that all brokers have a strong buy rating on the stock. The $8.99 average target price implies around a 3% upside at the time of writing.

Ramsay Health Care shares

Ramsay Health shares are also up around 2% to a multi-year high of  $54.64 at the time of writing. The share price flew higher in late-August off the back of a healthcare-sector wide rebound and the company’s impressive FY26 results announcement. 

Ramsay Health shares are now up around 58% for the year-to-date and 63% higher than 12 months ago.

For FY26, the company reported a 22.9% increase in its underlying net profit after tax (NPAT) and a 11.8% increase in its underlying EBIT. Revenue also climbed 4.2%. Shareholders also received a dividend increase, up 13.8% to 91 cents per share for the full-year FY26.

Looking ahead, Ramsay expects to report EBIT growth and further margin improvement in FY27, with ongoing focus on cost management, activity growth, and capital discipline. 

The company is also moving ahead with plans to separate its 52.79% stake in Ramsay Santé, which owns hospitals across Europe.

But it looks like the experts want to see more evidence that the company can keep growing. TradingView data shows the majority of brokers have a hold rating but the $51.49 average target price now implies a downside of around 6%.

AMP shares

AMP shares are up around 0.5% to $2.51 at the time of writing on Wednesday. This is the highest share price AMP has traded at since November 2018. The shares are also up an impressive 37% for the year-to-date and are 39% higher than a year ago.

Ongoing geopolitical tensions and concerns about Australia’s inflation data weighed heavily on financial shares like AMP throughout the first half of the year.

But the diversified financial services company continues to post some strong financial results. In mid-July it announced first-half NPAT guidance of $170 to $180 million, significantly higher than the $131 million reported for the same period last year. Investors rushed to buy the shares and sent the price flying 22% higher within a week.

Then, early last month AMP posted its first-half FY26 results, including a 33% year-on-year increase in underlying NPAT to $174 million, an 8.2% year-on-year increase in assets under management (AUM) and a 33% increase in AMP’s Platforms net cash flows increased by 33%.

Again, investors were thrilled and the share price has continued climbing since the announcement.

TradingView data shows that the majority of brokers have a buy rating on AMP shares. But after such a strong rally recently, the average $2.49 target price now implies a downside of around 1%.

The post Santos, Ramsay Health Care, and AMP shares reach new 52-week highs: Can they keep climbing? appeared first on The Motley Fool Australia.

More reading

• The ASX 200 is finally rising. Is the sell-off running out of steam?
• 5 things to watch on the ASX 200 on Wednesday
• Worried about a downturn? 3 ASX shares and 3 ETFs built to weather it
• Santos shares slide from fresh multi-year high: What’s next for the ASX energy stock?
• Santos shares are up 40% in 2026. Here’s why I’d still buy them today

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.

September has been a rough month for our local share market.

The S&P/ASX 200 Index (ASX: XJO) has fallen in five of its past 6 sessions, including another 0.88% decline on Tuesday.

Wednesday is finally giving investors some relief, with the benchmark index up 0.26% to 8,695 points at the time of writing.

That still leaves the ASX 200 down around 2.5% over the past week and 4.6% over the past month. The index has now slipped slightly into negative territory for 2026.

So, is the market starting to find its feet?

Buyers are starting to come back

There is a bit more support under the market today than we have seen recently.

At the latest check, 105 of the top 200 shares were higher, compared with 84 lower and 11 unchanged.

The gains are being helped along by some of the ASX’s biggest resources stocks.

BHP Group Ltd (ASX: BHP) shares are up 1.13% to $59.92, while Rio Tinto Ltd (ASX: RIO) shares have gained 0.81% to $165.83.

Fortescue Ltd (ASX: FMG) shares are also 1.05% higher at $16.39.

Energy shares are doing even better, with oil prices still elevated as tensions in the Middle East continue.

Woodside Energy Group Ltd (ASX: WDS) shares are up 3.12% to $33.36, and Santos Ltd (ASX: STO) shares have climbed 2.22% to $8.74.

There’s still plenty to watch

That being said, one better session doesn’t mean the recent weakness is over.

The ASX 200 closed at 9,127 points on 26 August, which leaves it more than 400 points below that level today.

There’s also plenty happening outside Australia that could keep investors on edge.

Oil prices remain high, while the US 10-year Treasury yield has pushed above 5%, adding another challenge for share markets.

Wall Street finished lower again overnight, with the Dow Jones Industrial Average (DJX: .DJI) falling 0.63%, the S&P 500 (SP: .INX) down 0.45%, and the Nasdaq Composite (NASDAQ: .IXIC) dropping 0.78%.

Investors are now waiting for the Federal Reserve’s next interest rate decision and any clues on what could come after it.

Foolish takeaway

I wouldn’t read too much into one positive session just yet.

The ASX 200 has been under pressure for most of September, so today’s rise could simply be a dead-cat bounce.

What I’d rather see is the index put together a few decent sessions and start working its way back towards 8,800.

Until that happens, I’d be careful about calling the recent sell-off over.

The post The ASX 200 is finally rising. Is the sell-off running out of steam? appeared first on The Motley Fool Australia.

More reading

• Santos, Ramsay Health Care, and AMP shares reach new 52-week highs: Can they keep climbing?
• Fortescue shares break a 4-day losing streak as $150 million legal fight heats up
• Why I’d buy and hold BHP shares for 10 years
• How much passive income could I earn from a $650,000 superannuation balance?
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Aaron Teboneras 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.

Fortescue Ltd (ASX: FMG) shares are finally back in positive territory on Wednesday.

The Fortescue share price is up 0.96% to $16.37 in early afternoon trade after spending the previous four sessions in the red.

That run took the stock from $17.61 on 9 September to $16.22 at yesterday’s close, a drop of almost 8% in less than a week.

Fortescue shares are down about 25% since the start of 2026 and are trading near their 52-week low.

And while there is no new ASX announcement today, another long-running issue has moved back into the spotlight.

Let’s take a closer look.

A $150 million legal battle continues

According to The Australian, Fortescue has lodged an appeal against the Federal Court’s landmark native title compensation ruling involving the Yindjibarndi people.

The court ordered the miner to pay $150 million for cultural loss, along with compensation for economic loss and interest, relating to mining activities on Yindjibarndi land.

Fortescue paid the amount in July, but the company has now joined the Western Australian Government in appealing parts of the decision.

A Fortescue spokesperson said the company needed to protect its legal position after other parties took the matter back to court.

The Yindjibarndi have also appealed the award, arguing the compensation should have been higher.

What else are investors watching?

The legal case comes at a time when Fortescue shares have already been struggling.

Its FY26 result was a bit of a mixed bag.

Revenue rose 9% to US$17 billion, while underlying EBITDA climbed 9% to US$8.6 billion.

Iron ore shipments also reached a record 201.3 million tonnes.

Underlying net profit after tax (NPAT) increased 3% to US$3.5 billion, and free cash flow rose 25% to US$3.2 billion.

But the statutory result was weaker, with profit falling 15% to US$2.86 billion.

That included a US$525 million after-tax impairment relating to Iron Bridge and a US$73 million after-tax compensation claim expense.

Shareholders also received a smaller final dividend, which fell 23% to 46 cents per share. That took total FY26 dividends to $1.08 per share.

Where to next?

The court case is worth watching, but I don’t think it will be the main thing driving Fortescue shares from here.

Fortescue is still heavily tied to what happens with iron ore, and that means China remains a big part of the backdrop.

If iron ore prices hold up and the Asian superpower avoids another slowdown, sentiment towards Fortescue shares could improve again.

The post Fortescue shares break a 4-day losing streak as $150 million legal fight heats up appeared first on The Motley Fool Australia.

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• Fortescue shares just hit a 52-week low. Could $16 be next?
• Experts name CBA and these big-name ASX 200 shares as sells this week
• Buy, hold, sell: Corporate Travel Management, Wesfarmers, Fortescue shares

Motley Fool contributor Aaron Teboneras 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.

Reliance Worldwide Corporation Ltd (ASX: RWC) shares are having another strong session on Wednesday.

The stock is up 4.39% to $4.52 at the time of writing after trading as high as $4.65 earlier this morning.

That’s a new 52-week high, taking Reliance shares up more than 23% over the past month and around 17% in 2026.

The latest rise comes after another major development in the company’s takeover talks.

But there could still be more to come over the next few weeks.

Let’s dive right in.

Brookfield locks in the deal

According to the release, Reliance has signed a scheme implementation deed with Brookfield.

Under the deal, Brookfield plans to acquire all Reliance shares for US$3.38 each in cash, or around $4.75 per share.

On an enterprise value basis, that values the company at roughly $4.1 billion.

Notably, Brookfield has had to increase its offer a few times to get here.

Its first approach came in at $4.15 per share, followed by offers of $4.25 and then $4.50.

Reliance then gave Brookfield access to non-public information while it carried out due diligence.

After several weeks of that process, Brookfield came back with the higher offer.

The Reliance board is now unanimously backing the deal, provided there is no better proposal and the independent expert gives it the tick.

Chair Russell Chenu said the board had “carefully assessed” the offer, including Reliance’s outlook, growth opportunities and cash generation.

Could another buyer still emerge?

Now, this is where things get a little more interesting.

Reliance has agreed to the Brookfield deal, but it still has the chance to see if someone else is willing to pay more.

The agreement includes a 30-day “go-shop” period, which runs until 15 October.

During that time, Reliance can approach other potential buyers, share due diligence information and negotiate another proposal.

AustralianSuper is also worth keeping an eye on.

According to The Australian, the super fund recently increased its stake in Reliance to 14.68%.

This means it could have a decent say in how things play out when shareholders eventually vote.

What happens next?

At $4.52, Reliance shares are still trading below the $4.75 value of Brookfield’s offer.

And there are a few reasons for that.

The deal still needs shareholder, court and regulatory approval, while completion isn’t expected until the first quarter of 2027.

The final value could also move around because the offer is being paid in US dollars.

So, clearly there’s still a few hurdles to get through.

The post Reliance shares surge to a 52-week high on $4.1 billion takeover deal appeared first on The Motley Fool Australia.

More reading

• Brookfield moves to acquire Reliance Worldwide Corporation at a 43% premium
• 10 ASX 200 shares downgraded by analysts this week
• Here are the top 10 ASX 200 shares today
• Reliance Worldwide FY26 profit falls but receives Brookfield takeover offer

Motley Fool contributor Aaron Teboneras 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.

Netwealth Group Ltd (ASX: NWL) shares have had a difficult 12 months.

The wealth management platform company’s shares are down around 40% over that period and fell to a fresh 52-week low of $18.29 on Wednesday.

Here’s why I think the lower share price has created an opportunity for investors with this S&P/ASX 200 Index (ASX: XJO) share.

This ASX 200 share is still growing

The first thing I would look at is whether Netwealth’s weaker share price reflects a weaker business.

I do not think that is the case.

Netwealth finished FY26 with $135.7 billion of funds under administration, up more than 20% over the year. It also continued attracting strong net inflows and gaining market share.

That tells me financial advisers and their clients are still putting more money onto the platform.

As those assets grow, Netwealth has more opportunities to earn administration and investment-related revenue from the same expanding customer base.

I think that remains a strong long-term foundation.

AI has added a concern

Artificial intelligence (AI) has recently given investors something else to think about.

Anthropic launched Claude for Financial Advisors on 14 September, providing wealth managers with specialised data connectors and workflow tools. That followed OpenAI launching its own financial industry offering just days earlier.

I can understand why that has caused some concern.

If powerful AI tools can automate more of the research, administration, and client work carried out by financial advisers, investors may question how much value traditional wealth technology platforms can continue adding.

I think it is too early to assume AI will simply replace platforms such as Netwealth.

Financial advisers still need to administer client assets, meet regulatory requirements, execute investments, and keep large amounts of sensitive financial information organised. AI could change how that work is done, but I think established platforms can also use the technology themselves.

The latest acquisition makes more sense in that context

Netwealth’s acquisition announced this week is particularly interesting for that reason.

The company has agreed to buy Paradino, which operates an AI-enabled workflow and automation platform for financial advisers.

Its technology can assist with areas such as documents, meeting notes, client communications, and other administrative work.

The acquisition itself is not large enough to transform Netwealth overnight.

But I like what it says about the direction of the business.

Rather than watching AI develop from the sidelines, Netwealth is bringing more of that capability into its own adviser technology offering.

If AI can help advisers save time and manage more clients efficiently, I think it could ultimately strengthen the value of the wider Netwealth ecosystem rather than undermine it.

Why I would buy before sentiment improves

There are still risks.

Netwealth is investing heavily, margins could face some near-term pressure, and AI could reshape parts of the financial advice industry faster than expected.

But this ASX 200 share is still growing assets, attracting inflows, and investing in technology that could keep its platform relevant as adviser workflows change.

At $18.29, I think the 40% decline has created a much more attractive entry point.

Foolish takeaway

I would be comfortable buying Netwealth shares at current levels.

AI has added a new source of uncertainty, but I do not think it removes the need for wealth platforms or the long-term opportunity in financial advice technology.

If the ASX 200 share can combine its existing platform with better AI tools while continuing to attract client assets, I think today’s weaker sentiment could eventually look like a good buying opportunity.

The post Down 40%: Why I’d buy this ASX 200 share before sentiment improves appeared first on The Motley Fool Australia.

More reading

• Netwealth shares could be set to rise 60% in the next 12 months – Expert
• 5 things to watch on the ASX 200 on Wednesday
• Netwealth to acquire AI platform Paradino, boosting adviser automation
• ASX 200 bank shares led a financial sector rebound last week
• Where I’d invest $15,000 in ASX shares now

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

Wesfarmers vs Telstra shares: which dividend stock is better?

Looking to boost your passive income with ASX blue chips? Wesfarmers Ltd (ASX: WES) and Telstra Group Ltd (ASX: TLS) are two of the market’s giants. Each is a household name, popular with Australian investors for their steady dividends and defensive businesses. If you’re weighing up Wesfarmers vs Telstra shares for your dividend portfolio, here’s how the two compare in 2026.

The case for Wesfarmers

Wesfarmers is one of Australia’s oldest and largest companies. From its 1914 beginnings as a WA farmers’ cooperative, it’s grown into a diversified conglomerate spanning retail, office supplies, pharmaceuticals, and chemicals. Its subsidiaries include iconic names like Bunnings, Kmart, Officeworks, and Priceline. That means revenue is underpinned by everyday essentials, from hardware to health.

For fundamentals, Wesfarmers carries a hefty market cap of $82.64 billion, making it an ASX heavyweight. Its P/E ratio currently sits at 28.64, reflecting a market willing to pay a premium for its brand portfolio and reliability. The company’s dividend yield is 3.06%, fully franked, with a dividend per share of $2.22. Notably, Wesfarmers has a well-established record of regular, fully franked dividends extending back decades, including occasional special payouts. However, its shares are down -7.77% year to date as of mid-September 2026.

The case for Telstra

Telstra is Australia’s dominant telecommunications provider, with roots stretching back to the country’s telecommunications beginnings. Today, Telstra runs core infrastructure and consumer businesses including ServeCo, InfraCo Fixed, Amplitel and Telstra International, all part of a 2022 corporate restructure. The company not only serves millions of Aussies but also has a global presence in 20 countries.

Telstra clocks in with a market capitalisation of $53.91 billion—smaller than Wesfarmers but still a major player by any measure. Its P/E ratio is 24.27, which is noticeably cheaper than Wesfarmers on current earnings. For income investors, Telstra is offering a higher dividend yield: 4.35%, mostly franked (90%+ in recent years). Its dividend per share stands at $0.21 and, pleasingly, Telstra’s dividend growth has resumed after a long flat patch. Its shares are up a solid 3.49% year to date as of the latest data.

Valuation comparison

Here’s how the numbers stack up side by side:

Metric	Wesfarmers	Telstra
Market Cap	$82.64 billion	$53.91 billion
P/E Ratio	28.64	24.27
Dividend Yield	3.06% (100% franked)	4.35% (90% franked)
Dividend per Share	$2.22	$0.21
Year-to-date Return	-7.77%	+3.49%

Wesfarmers is bigger and arguably more diversified, but you’re paying a higher price for it, both in terms of P/E and a lower yield. Telstra, on the other hand, currently offers a much more generous dividend yield and is trading at a lower earnings multiple.

Recent share price performance

Share prices for both companies, as at mid-September 2026, tell an interesting story.

Wesfarmers shares have retreated from above $83 to $72.83 over the past three weeks. That translates to a loss of about 12% in less than a month. The broader 2026 year-to-date figure is also negative at -7.77%.

Telstra, by contrast, has been stable or slightly positive. In September, its price has hovered around the $4.70–$4.85 level, with occasional dips and rebounds. Telstra shares are up 3.49% for the year to date, showing relative resilience and steady investor support.

All prices and returns are as per the data provided, current to 15 September 2026.

Which is the better buy?

If I’m choosing for dividend income right now, my pick would be Telstra. The numbers are pretty clear: Telstra’s dividend yield of 4.35% is comfortably ahead of Wesfarmers’ 3.06%, and while franking isn’t quite 100%, it’s still generous for most Australian shareholders. Add to that its lower P/E ratio, indicating better value, and its positive share price momentum so far in 2026.

Wesfarmers is a quality blue-chip and has one of the best dividend records on the ASX, but you’re currently paying a premium for its diversification and brand power. The lower yield and negative short-term return make it less attractive for pure income seekers. For yield-focused investors looking for relatively defensive income in 2026, I think Telstra is the more appealing buy out of the two right now.

The post Wesfarmers vs Telstra: Which ASX dividend stock comes out on top? appeared first on The Motley Fool Australia.

More reading

• How much passive income could I earn from a $650,000 superannuation balance?
• How to make $26,000 of passive income from ASX shares
• How much of my superannuation do I need to invest to earn $60,000 of passive income in 2027?
• How much superannuation do I need to earn $70,000 per year in passive income?
• Buy, hold, sell: Domino’s Pizza, Telix Pharmaceuticals, Westfarmers shares

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

A $1.2 million superannuation balance is a substantial amount of money.

But what sort of retirement income could it fund?

The answer to that depends on how the money is invested and how quickly the retiree is comfortable drawing it down.

Start with the withdrawal rate

One simple way to think about retirement income is as a percentage of the starting balance.

If someone withdrew 4% from a $1.2 million portfolio in the first year, that would provide around $48,000.

A 5% withdrawal would increase the annual income to $60,000, while 6% would provide $72,000.

That gives us a fairly wide range.

I would not automatically choose the highest figure simply because the portfolio could support it in the first year. Retirement could last for decades, and the balance still needs to cope with market downturns, inflation, and future spending.

For me, the amount withdrawn would need to make sense alongside the investments held and the lifestyle I wanted.

Income does not have to come entirely from dividends

It is important to note that a $1.2 million portfolio doesn’t necessarily have to generate a 5% dividend yield to provide $60,000 of annual income.

Retirement income can come from several places.

A portfolio might receive dividends and distributions from shares and exchange-traded funds (ETFs), interest from defensive assets, and cash from selling a small portion of investments when required.

That gives an investor more freedom when building the portfolio.

I would rather hold a mixture of investments with good long-term prospects than force the entire $1.2 million into high-yield assets purely to produce a particular income figure.

Growth still has a role

Even after retirement, I would want part of the portfolio invested for growth.

If someone retires in their 60s, their superannuation may still need to support them for another 30 years.

Over that period, living costs are likely to rise.

An income of $60,000 may feel comfortable today, but it will not have the same purchasing power decades from now.

Holding Australian and international shares gives the portfolio a chance to keep growing while withdrawals are being made.

Of course, share markets will not rise every year. That is why I would also want some cash or more defensive investments available for spending during weaker periods.

How much would I aim for?

If I had $1.2 million in superannuation, I would probably think about an initial income somewhere around $48,000 to $60,000 a year rather than immediately targeting $72,000.

That is not because $72,000 is impossible.

It simply places more pressure on the portfolio from the beginning, particularly if withdrawals later need to rise with inflation.

Someone with lower expenses may be happy to take much less, while another retiree may deliberately draw down their capital more quickly because they want to spend more in the early years of retirement.

There is no single number that will suit everyone.

Foolish takeaway

A $1.2 million superannuation balance could potentially provide a meaningful retirement income without requiring an unusually high investment return.

At withdrawal rates of 4% to 5%, it could provide roughly $48,000 to $60,000 in the first year.

For me, the bigger goal would be finding a level of income that supports the lifestyle I wanted while still giving the remaining balance a chance to keep working for the years ahead.

The post How much income could a $1.2 million superannuation balance generate? appeared first on The Motley Fool Australia.

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• Why I’d buy and hold BHP shares for 10 years
• 3 ASX shares I think could return 10%+
• Cochlear share price rebounds 53% from 10-year low: Can it keep climbing?
• Is the Australian Age Pension enough to retire comfortably?
• Two broker upgrades put CSL shares back in focus

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

BHP Group Ltd (ASX: BHP) is already one of the largest companies on the Australian share market.

That size can sometimes make it easy to assume the biggest growth period is already behind it.

I am not so sure that is the case.

And if I were looking for an ASX mining share to buy today and leave alone for the next decade, BHP would be high on my list.

Scale gives BHP options

One of the things I like most about BHP is the flexibility that comes with its scale.

The company owns large, long-life assets across several major commodities, which means management can direct capital towards the opportunities offering the strongest prospective returns.

That becomes particularly valuable in resources.

Mining projects can take years to develop, cost billions of dollars, and operate for decades once they are running. Companies with strong balance sheets and existing infrastructure have a major advantage when attractive opportunities appear.

BHP does not need every commodity to be booming at the same time.

It can continue investing through weaker periods, expand existing operations where the economics make sense, and take a patient approach to major new projects.

Over a 10-year holding period, I think that flexibility could be more valuable than trying to predict which commodity will perform best next year.

Demand should keep evolving

The global economy will probably look quite different a decade from now, but it will still need enormous quantities of physical materials.

Cities will keep expanding. Electricity networks need upgrading. Data centres, renewable energy projects, electric vehicles, construction, and manufacturing all require resources somewhere along the supply chain.

BHP’s exposure to commodities, including copper and iron ore, puts it in a strong position to participate in that spending.

I am particularly interested in how its copper portfolio could develop.

BHP already operates major copper assets, giving it a platform to expand as demand increases. New supply is also difficult to bring online quickly, which could make high-quality existing operations increasingly valuable over time.

The important point for me is that BHP already owns the assets and expertise needed to participate rather than having to build an entirely new business from scratch.

I would expect income along the way

A decade is a long time to wait for an investment thesis to play out, so I also like that BHP can return substantial amounts of cash to shareholders.

Its dividend will move with commodity prices and profits, so I would never treat the payment as fixed.

But when conditions are strong, BHP’s enormous operations can generate significant free cash flow.

That gives management the ability to balance reinvestment in future projects with dividends to shareholders.

For a long-term investor, I think receiving income while the company’s asset base continues to develop is a valuable combination.

The risks are part of the investment

BHP will not deliver smooth results every year.

Commodity prices can fall sharply, major projects can run over budget, and changes in global economic activity can quickly affect demand.

There are also political, regulatory, and operational risks across the countries where BHP operates.

Those uncertainties are why I would think about the investment in decades rather than quarters.

I am backing the quality of the assets, the company’s financial strength, and management’s ability to allocate capital through multiple commodity cycles.

Foolish takeaway

BHP is the type of share I think makes more sense when viewed over years rather than months.

There will be weaker periods for commodity prices along the way, but the company has the assets, financial strength, and investment opportunities to keep moving forward through those cycles.

For me, that is enough to make BHP a share I would be comfortable buying and holding for the next decade.

The post Why I’d buy and hold BHP shares for 10 years appeared first on The Motley Fool Australia.

More reading

• How much passive income could I earn from a $650,000 superannuation balance?
• ASX 200 drops again as selling continues
• Vanguard ETFs vs. Betashares ETFs: Who’s coming out on top?
• BHP shares keep falling. Is now the time to buy?
• How many BHP shares do I need to buy to earn $100 a week in passive income?

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

The share market has traditionally generated average annual returns of around 9% to 10% over the long term.

But I think some ASX shares have the potential to do even better from here.

These three would be on my buy list.

Breville Group Ltd (ASX: BRG)

Breville is one company I think the market may be underestimating.

The business has spent years building premium appliance brands that can be sold into households around the world. Coffee machines remain very important, but the opportunity extends across a much wider range of kitchen products.

What I like is the repeatability of that model. Breville can enter new markets, expand distribution, launch new products, and encourage existing customers who already know the brand to buy something else.

That gives the ASX share several ways to grow without needing one breakthrough product to carry the business.

So, with Breville shares now trading around $30.43, down almost 15% from their 52-week high, I think a combination of earnings growth and improving investor sentiment could comfortably support a return of more than 10%.

Hub24 Ltd (ASX: HUB)

Hub24 has also had a substantial fall from its highs, but I remain positive about the business.

The company operates investment platforms used by financial advisers to manage client wealth.

I like the position Hub24 has built because more advisers are choosing modern platforms that can make portfolio administration easier while giving them access to a wider range of investment options and technology.

Once an adviser begins moving client assets onto a platform, those funds can remain there for years. New clients and additional contributions can then increase the amount administered without Hub24 having to start from scratch each time.

The company has continued gaining market share and attracting strong net inflows, while its growing scale can support higher profits as more assets move onto the platform.

At around $70, Hub24 is now trading more than 40% below its 52-week high. I think this has created an attractive entry point for long-term investors.

Cochlear Ltd (ASX: COH)

Cochlear shares have fallen heavily from their previous highs as weaker growth and a reduced earnings outlook have tested investor confidence.

There are genuine reasons for caution. But I do not think the long-term need for Cochlear’s products has changed.

Severe hearing loss remains significantly undertreated around the world, leaving a large population of people who could potentially benefit from cochlear implants.

Cochlear is also continuing to improve its technology. The newer Nucleus Nexa platform gives the company an opportunity to strengthen its offering, while future innovations could make implants more capable and easier for patients to live with.

The business does not need to return anywhere near its previous share price for investors buying today to earn 10%.

If sales growth improves and confidence in the earnings outlook begins to rebuild, I think there is plenty of room for the shares to move higher.

Foolish takeaway

I think all three ASX shares have more going for them than their recent share price performances suggest.

Breville still has international room to expand, Hub24 continues to benefit from more wealth moving onto its platform, and Cochlear is addressing a large healthcare need that is not going away.

None is guaranteed to deliver a double-digit return, but I would be comfortable backing each from current levels.

The post 3 ASX shares I think could return 10%+ appeared first on The Motley Fool Australia.

More reading

• Cochlear share price rebounds 53% from 10-year low: Can it keep climbing?
• Cochlear vs Pro Medicus: Which beaten-down ASX healthcare share is the better buy today?
• 2 ASX shares I’d buy before they return to their 52-week highs
• 3 ASX 200 shares I’d buy if I couldn’t sell for 10 years
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear and Hub24. The Motley Fool Australia has recommended Cochlear and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.