Author: openjargon

There are plenty of ASX blue-chip shares I would be comfortable owning for the medium to long term.

For me, the best opportunities are businesses that can keep growing over time while giving shareholders something along the way.

Here are three I would be happy to buy today.

Telstra Group Ltd (ASX: TLS)

Telstra has become a business I am increasingly comfortable owning for the long term.

Connectivity is now essential for households and businesses, and Telstra remains focused on strengthening its position in mobile and other core services.

Its Connected Future 30 strategy is targeting mid-single-digit compound annual growth in cash earnings through to FY30. I like that ambition because Telstra does not need spectacular growth to produce a good outcome for shareholders. Steady earnings growth can support higher dividends and give the share price room to rise over time.

There are also opportunities beyond simply adding more mobile customers. Telstra is investing in areas such as its intercity fibre network, satellite connectivity, and technology that can improve how customers use its services.

Management has also made a sustainable and growing dividend an important part of its plans.

For me, Telstra offers a nice combination of recurring demand, income, and steady long-term growth.

Woolworths Group Ltd (ASX: WOW)

Woolworths is another business I would be happy to own for years.

Groceries account for a meaningful part of household spending, giving the company a large base of customers who return regularly.

What interests me is how Woolworths can make that enormous existing business better. The company has invested heavily in its supply chain, including automated distribution centres designed to move products into stores faster and make replenishment more efficient. Its Moorebank precinct in Sydney is a major investment that gives the business modern infrastructure to support its operations for many years.

I think those investments can help Woolworths improve convenience, build stronger customer relationships, and gradually grow earnings over time.

The supermarket giant also has a long history of paying dividends, adding an income component to the investment case.

Macquarie Group Ltd (ASX: MQG)

Macquarie has a wide range of opportunities ahead.

This ASX share operates across asset management, commodities and financial markets, banking, advisory, and investing. Its global reach also means its fortunes are not tied solely to the Australian economy.

I particularly like Macquarie’s exposure to long-term investment themes through its asset management and infrastructure activities.

The world needs enormous amounts of capital for areas such as renewable energy, digital infrastructure, transport, and other essential assets. Macquarie has spent decades building expertise in finding, financing, and managing these types of investments.

Its Commodities and Global Markets business provides another earnings engine by helping clients manage risks and access markets around the world.

Macquarie’s earnings can move around with market conditions and investment activity, but I think its ability to find opportunities across countries and asset classes gives it plenty of room to keep creating value over the long term.

Foolish takeaway

I think the best blue-chip shares are those that can keep finding ways to become better businesses over time.

Telstra, Woolworths and Macquarie already have strong positions in their respective markets, but I can still see opportunities for each to grow from here.

That is why I would be happy to buy them today and hold on for the years ahead.

The post Why I’d buy Telstra, Woolworths, and Macquarie shares appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Aristocrat, Telstra, ANZ shares
• How much do I need in my superannuation to earn $50,000 per year in passive income?
• How much could the Telstra share price rise in the next year?
• How to invest $10,000 the Warren Buffett way: Buy businesses, not stocks
• Reporting season half-time report: 5 lessons from August so far

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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia 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.

Yesterday, Australian Strategic Materials Ltd (ASX: ASM) announced that the Federal Court had approved Energy Fuels’ takeover, with ASM shareholders set to receive 0.053 New Energy Fuels CDIs and 13 cents in cash per share. ASM options holders will receive 50 cents per option in cash if the schemes proceed as planned.

What did Australian Strategic Materials report?

• Federal Court of Australia has approved the acquisition by Energy Fuels Inc. subsidiary.
• ASM shareholders entitled to 0.053 New Energy Fuels CDIs (or shares) plus A$0.13 cash per ASM share.
• ASM optionholders to receive A$0.50 cash per ASM option.
• Trading in ASM securities to be suspended from close of 19 August 2026.
• Final implementation date set for 28 August 2026.

What else do investors need to know?

ASM will lodge court orders with ASIC on 19 August 2026, at which point the schemes will become effective. Eligible ASM shareholders will default to receiving New Energy Fuels CDIs, unless they elect to receive shares, and must submit election forms by 5.00pm AWST, 19 August 2026.

Ineligible foreign shareholders will not receive New Energy Fuels CDIs or shares directly; instead, they will get a proportionate cash payment after their entitlement is sold by a sale agent. ASM securities will be removed from the ASX following completion, with trading of new securities commencing on ASX, NYSE American, and TSX in late August.

What’s next for Australian Strategic Materials?

The schemes are expected to be implemented on 28 August 2026, with shareholders receiving their consideration soon after. This marks the end of ASM’s journey as an independent ASX-listed company, and investors will transition to holding securities in Energy Fuels.

Normal trading of New Energy Fuels CDIs is set to begin on 31 August 2026, while holding statements will be dispatched from 1 September. The company will announce any further timetable changes as they arise.

Australian Strategic Materials share price snapshot

Over the past 12 months, Australian Strategic Materials shares have risen 113%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

View Original Announcement

The post Australian Strategic Materials: Federal Court approves Energy Fuels takeover appeared first on The Motley Fool Australia.

More reading

• ASM shareholders back Energy Fuels acquisition in decisive Scheme Meetings

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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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.

Yesterday, both Cogstate Ltd (ASX: CGS) and Pro Medicus Ltd (ASX: PME) released FY26 results. 

Investors reacted very differently to these results, with Cogstate shares falling 2% and Pro Medicus shares rocketing over 11%. 

Following these results, the team at Bell Potter provided updated guidance on these healthcare companies. 

What did they report?

Cogstate posted record FY26 revenue of US$60.9 million, up 15%, and a net profit after tax of US$11.9 million, up 17%.

Meanwhile, Pro Medicus announced full-year revenue of $261.7 million, up 22.9%, with underlying NPAT rising 24.1% to $144.7 million. The company remains debt-free and has lifted its fully franked total dividend by 25.5% to 69 cents per share.

Cogstate and Pro Medicus’ full results can be found here: 

• Cogstate results 
• Pro Medicus results. 

Both healthcare companies have had a very different 12 months. 

Cogstate shares are up 62% in the last year, while Pro Medicus are down 38% in the same span. 

Following yesterday’s results, here is the latest guidance out of the team at Bell potter. 

Bell Potter’s outlook for Cogstate

The broker Bell Potter viewed Cogstate’s FY26 result positively, with revenue up 15% to $60.9m, ahead of expectations, while a strong 2H gross margin of 62% drove full-year EBITDA of $18.3m and NPAT of $11.9m, both above forecast. 

The company doubled its dividend to 4 cents per share and remained debt-free with $34.8m of cash. Cogstate now enters FY27 from a record base, supported by very positive sales prospects, expected revenue growth, and an intention to maintain FY26’s EBITDA margins. 

Bell Potter has increased FY27-29 revenue forecasts by around $1m annually, reflecting stronger Clinical Trials activity and improved visibility, but higher operating costs more than offset this, resulting in around $1m lower NPAT forecasts in each year.

Based on this guidance, the broker retained its $3.70 price target and buy recommendation. 

This indicates an upside potential of more than 35%. 

Bell Potter’s outlook for Pro Medicus 

Pro Medicus reported FY26 revenue and EBIT growth of 23% and 26%, respectively, with EBIT results modestly (1.5%) ahead of consensus earnings. 

Bell Potter said that as the group’s revenue base expands, top-line growth is decelerating. However, margin expansion continues, driving the small earnings beat. 

The broker also highlighted that the company retained all six of its expiring contracts during FY26, which it believes were not subject to a competitive bidding process, based on factors such as client satisfaction with service levels and value.

The team at Bell Potter retained its buy recommendation and $226 price target for Pro Medicus shares after the company’s results. 

From yesterday’s closing price, the price target indicates 15% upside.

The post Healthcare results wrap: Are Cogstate and Pro Medicus shares a buy, hold or sell? appeared first on The Motley Fool Australia.

More reading

• Why did this ASX gold stock just soar 24% in a single session?
• Here are the top 10 ASX 200 shares today
• Why are Pro Medicus shares surging more than 10%?
• Why is everyone talking about CSL, Pro Medicus and BHP shares on Tuesday?
• Pro Medicus FY26: Strong earnings growth and higher dividend

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

Shares in EBR Systems Ltd (ASX: EBR) have been on the slide over the past six months, and they’re now languishing not too far off their 12-month lows.

Naturally this begs the question, are they cheap at the moment?

The analyst team at Bell Potter thinks so and has a speculative buy recommendation on the company, along with a bullish share price target, which I’ll get to shortly.

First let’s look at what the company has been up to.

Solid progress on technology sales

EBR has developed a system called WiSE which it says is designed to overcome the limitations of conventional cardiac resynchronisation therapy and, “is the only leadless left ventricular endocardial pacing (LVEP) device”.

The company recently released a quarterly report and said that it had surpassed its hundredth commercial WiSE implant, “with multiple sites performing their first WiSE implants and numerous sites performing their 2nd, 3rd, 4th, and greater cases”.

The company also completed the first two tranches of a fully underwritten $150 million capital raise with the final $35 million expected to be completed by August 24.

EBR Chief Executive Officer John McCutcheon said:

We are extremely pleased with this quarter on multiple fronts. Commercially, EBR surpassed its 100th commercial WiSE implant, with multiple sites performing their first WiSE implants and numerous more experienced sites continuing to treat patients with WiSE. We secured master purchasing agreements with HCA Healthcare, Advocate Health, and CHRISTUS Health, validating the clinical and economic benefit of WiSE in major U.S. healthcare networks. In support of our future commercial efforts, the U.S. Centers for Medicare & Medicaid Services (CMS) further advanced WiSE through the Transitional Coverage for Emerging Technology (TCET) program by formally initiating the National Coverage Determination process for WiSE.

The company also fully transitioned to its new manufacturing facility in California, Mr McCutcheon said.

During the quarter EBR had operating cash outflows of $25 million.

Shares are looking cheap but more capital needed

In a note to clients released after the quarterly results, Bell Potter said that EBR’s cash receipts were still modest at US$3.6 million for the quarter but had doubled in the period. Bell Potter also noted that the company has five quarters’ worth of cash on hand.

The broker believes the company will need to raise more capital, and has therefore reduced its share price target on EBR to 70 cents, down 22%. This is still well above the current share price of 28 cents.

The broker added:

This still represents significant upside potential, but the need for more funding may weigh on investor sentiment. We retain our BUY (Spec.) rating.

EBR is valued at $214.7 million.

The post Bell Potter tips more than 140% upside for this out of favour ASX biotech appeared first on The Motley Fool Australia.

More reading

• Why I’d buy Telstra, Woolworths, and Macquarie shares
• Australian Strategic Materials: Federal Court approves Energy Fuels takeover
• Healthcare results wrap: Are Cogstate and Pro Medicus shares a buy, hold or sell?
• Why did this ASX gold stock just soar 24% in a single session?
• BCI Minerals: SOP pilot plant contract awarded

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 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.

In 2025, ASX gold stocks surged as record gold prices, geopolitical uncertainty and expectations of lower interest rates boosted safe-haven demand and expanded miners’ profit margins, with several major stocks doubling or more.

As the calendar ticked over to 2026, many of the biggest winners initially fell as valuations became stretched and gold experienced a sharp correction. 

However research from VanEck suggests ASX gold stocks are more resilient than investors might have thought. 

One ASX gold stock worth monitoring is Ausgold Ltd (ASX: AUC). 

It soared 24% yesterday after a key announcement to the ASX. 

What did the company announce?

As reported yesterday by Laura Stewart, Ausgold Ltd (ASX: AUC) announced a recommended scheme of arrangement under which OceanaGold Corp (TSE: OGC) will acquire 100% of Ausgold, valuing each Ausgold share at an implied A$1.36 and the total company at approximately A$776 million. 

The scheme is subject to regulatory and court approvals, as well as an independent expert’s conclusion that the deal is in shareholders’ best interests.

For investors, this $1.36 price represented a 28% premium at the time. 

However, after the massive climb during Tuesday’s session, the stock price is now hovering just below at $1.32. 

Following the announcement, the team at Bell Potter issued updated guidance on the ASX gold stock. 

Here is what the broker had to say. 

Downgraded outlook 

Bell Potter downgraded its outlook on this ASX gold stock to a speculative hold following OceanaGold’s proposed ~$776m acquisition of AUC. 

The all-scrip deal (with up to A$194m cash consideration) is unanimously recommended by the AUC Board, with major shareholder Dundee Resources also intending to support it. 

Completion is targeted for December 2026, after which AUC shareholders would own ~6–8% of OceanaGold, gaining exposure to its four producing gold assets while retaining Katanning development upside with substantially lower funding and execution risk. 

Bell Potter views OceanaGold’s strong balance sheet as sufficient to fund Katanning’s ~$354m development cost and sees relatively low-medium risk of a competing bidder. 

The proposed transaction implies A$282/oz of resources, well above the A$202/oz average for selected Australian gold deals in 2024–25, supporting the view that the offer is attractive. 

Some upside remains

Based on this guidance, Bell Potter lowered its price target to $1.50 (previously $1.70) on this ASX gold stock. 

From yesterday’s closing price, this indicates upside potential of 13%. 

We downgrade to a Hold recommendation and lower our valuation to $1.50/sh, a 10% premium to the initial offer price recognising that AUC is in-play and its share price should reflect OGC’s share price and gold price movements. We see low-medium interloper risk.

The post Why did this ASX gold stock just soar 24% in a single session? appeared first on The Motley Fool Australia.

More reading

• Healthcare results wrap: Are Cogstate and Pro Medicus shares a buy, hold or sell?
• Ausgold shares in focus after OceanaGold’s $776m takeover offer
• Are A2 Milk shares a buy, hold or sell following results?
• 3 ASX shares tipped to explode up to 72% in the back half of 2026
• This ASX industrials stock just rocketed 13% on results and is expected to keep rising

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

Yesterday, BCI Minerals Ltd (ASX: BCI) announced it had been awarded a construction contract for a new sulphate of potash (SOP) pilot plant at its flagship Mardie Salt Operation and Potash Project. This pilot plant marks a major step towards validating commercial-scale SOP production from the Mardie feedstock.

What did BCI Minerals report?

• Construction contract awarded for a 150 kg/hr SOP pilot plant at Mardie Salt Operation
• Pilot plant expenditure funded within the approved A$1.443 billion Mardie project budget
• Commissioning targeted for the start of Q2 FY2028, with 12-month piloting phase
• Approximately 1,000 tonnes of representative KTMS feedstock to be produced in Q2 FY2027
• Bluestar Lehigh Engineering Institute Co, Ltd engaged as lead designer and constructor

What else do investors need to know?

The new SOP pilot plant will allow BCI Minerals to test the value-adding potential of converting bitterns into high-value, premium fertiliser products onsite. This staged investment is intended to support continuous, end-to-end testing under operating conditions to refine technical and process design before any large-scale decisions are made.

The pilot initiative is fully funded from BCI’s existing project resources, meaning no change to the scope or schedule of the Mardie salt operation. The independent consultancy eXcellerate will provide oversight across design, risk, procurement, and commissioning, with a view to ensuring robust, reliable results.

What did BCI Minerals management say?

Managing Director David Boshoff said:

The SOP pilot plant is an important next step in BCI’s disciplined approach to maximising the value of the Mardie resource. It will allow us to assess the value-adding of bitterns into SOP, with the potential for Mardie to become Australia’s only operation producing both salt and SOP on one site. Piloting is the disciplined way to approach SOP. It gives us realistic, continuous end-to-end data on feed material in our own operating environment, which is exactly what we need to finalise a robust flowsheet and reduce technical and process uncertainty before any future full-scale investment decision. We are funding this entirely from within the existing approved project budget, and it does not change the scope or schedule of the Mardie salt operation.

What’s next for BCI Minerals?

BCI Minerals will now focus on producing and processing around 1,000 tonnes of feedstock for the pilot, aiming to commission the new SOP facility at the start of Q2 FY2028. Piloting will run for approximately 12 months, giving the company valuable operational data for refining its SOP process.

Any decision to proceed with a full-scale SOP facility will depend on successful piloting results, further feasibility work, and a separate investment decision. This staged approach supports BCI’s strategy to diversify Mardie’s earnings base and potentially establish a unique Australian operation.

BCI Minerals share price snapshot

Over the past 12 months, BCI Minerals shares have risen 31%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

View Original Announcement

The post BCI Minerals: SOP pilot plant contract awarded appeared first on The Motley Fool Australia.

More reading

• Why this $1.4 billion ASX All Ords mining stock is tipped to jump 30%
• Brokers name 3 ASX shares to buy with gains of up to 75%

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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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.

WiseTech Global Ltd (ASX: WTC) shares finished Tuesday 3% higher at $43.35, extending their monthly gain to 25%. That’s an impressive rebound, but the ASX tech stock remains 37% lower year to date and down 62% over the past 12 months.

Now, investors are looking towards 26 August, when WiseTech is due to deliver its FY26 results. The numbers could determine whether this rally has genuine legs.

Is WiseTech’s comeback gathering momentum?

The recovery in WiseTech shares since late July has been eye-catching. But the collapse has been brutal, and investors still have plenty of reasons to remain cautious.

The interesting thing is that the underlying business hasn’t simply fallen apart.

WiseTech’s flagship CargoWise platform remains a major logistics software solution, used by the world’s top 25 freight forwarders, including Toll and DHL. The platform helps freight forwarders, customs brokers and supply-chain operators navigate increasingly complex global trade.

That leaves WiseTech exposed to powerful long-term trends, particularly the continued digitalisation of global trade and growing demand for sophisticated logistics technology.

Crucially, the sell-off hasn’t primarily reflected collapsing demand for CargoWise. Investor confidence, governance concerns and regulatory issues have played a major role.

That makes next week’s results particularly important.

What could WiseTech report?

Management has reaffirmed FY26 guidance for revenue of US$1.39 billion to US$1.44 billion, representing growth of 79% to 85%.

EBITDA is expected to reach US$550 million to US$585 million, which would represent growth of 44% to 53% over FY25.

If WiseTech delivers on those numbers — and provides an encouraging FY27 outlook — investors in WiseTech shares may become more willing to look past the governance drama and refocus on the company’s underlying growth opportunity.

What do brokers think?

The broker community appears relatively bullish on WiseTech shares.

According to TradingView data, 11 of 14 analysts have a buy or strong-buy rating. The average price target of $60.61 implies potential upside of roughly 40% from Tuesday’s close.

The most bullish target is a remarkable $114.11, suggesting potential upside of approximately 163%.

Bell Potter has a buy rating and $71.75 price target. Its analysts believe some of the headwinds weighing on WiseTech could begin to fade, particularly following the appointment of Raelene Murphy as chair.

Macquarie is also bullish, with a buy rating and $47.10 price target. The broker has suggested WiseTech could “surprise to the upside” with FY27 guidance, although tariffs and regulatory issues remain risks.

Could WiseTech shares really rebound?

The bull case for WiseTech shares is certainly becoming harder to ignore. A strong FY26 result, combined with upbeat FY27 guidance, could give investors the catalyst they’ve been waiting for to reassess WiseTech’s battered valuation.

But this isn’t a risk-free recovery story. Governance, regulatory and execution risks remain, while the company must prove that it can translate its powerful long-term growth opportunity into sustainable earnings growth.

The post WiseTech shares are up 25%. Could this be the start of a huge comeback? appeared first on The Motley Fool Australia.

More reading

• Down 50% – Are these the best value ASX 200 shares right now?
• Here are the top 10 ASX 200 shares today
• WiseTech shares are taking off: Is this the start of a major comeback?
• These 2 oversold ASX shares look super cheap right now
• Down 65%! Are WiseTech shares now a bargain buy?

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

A decade gives businesses plenty of time to grow, new industries to develop, and investment returns to compound.

For investors looking towards 2036, these are three Vanguard exchange-traded funds (ETFs) I think could be worth considering.

Vanguard Diversified All Growth Index ETF (ASX: VDAL)

The VDAL ETF is one of the newer additions to Vanguard’s Australian range, and I like how much it can cover in a single investment.

The fund invests entirely in shares and provides exposure to more than 6,000 stocks across over 50 markets. That includes Australian shares, large international companies, emerging markets, and global small caps.

For me, the attraction is the sheer number of places growth can come from.

The businesses leading global markets in 2036 may look quite different from those dominating today. New companies will emerge, existing leaders will expand, and some industries could become far more important.

The VDAL ETF does not require investors to predict all of those changes beforehand. Its broad exposure allows the portfolio to evolve alongside global share markets.

I think it could be an attractive Vanguard ETF for investors who want broad share market exposure over a long timeframe.

Vanguard Global Technology Index ETF (ASX: VTEK)

Technology is one area where I expect the world to look considerably different by 2036.

Artificial intelligence is already changing how businesses operate, while cloud computing, cybersecurity, semiconductors, automation, and digital services should continue developing over the coming decade.

The VTEK ETF provides exposure to around 300 global technology stocks across developed and emerging markets. It also caps individual positions, helping prevent the portfolio from becoming completely dominated by its largest holdings.

I like this approach because the next decade of technology growth may spread well beyond the companies currently receiving the most attention.

The fund can participate as new technology leaders emerge while retaining exposure to established businesses benefiting from continued digital investment.

There will be periods when technology shares struggle, particularly after valuations become stretched. However, over a decade, I think continued innovation gives this Vanguard ETF an exciting long-term opportunity.

Vanguard MSCI International Small Companies Index ETF (ASX: VISM)

The VISM ETF looks further down the size spectrum.

It invests in smaller companies across major developed markets, with its largest country exposure currently coming from the United States, followed by markets including Japan, the United Kingdom, Canada, Sweden, and Germany.

I think small caps can be particularly attractive over a 10-year timeframe because many are still relatively early in their growth journeys.

Some will expand into new countries, develop new products, or grow into much larger businesses. An ETF provides a way to participate in that potential across a broad collection of companies rather than needing to identify the eventual winners individually.

Smaller companies can experience greater volatility, and plenty will inevitably disappoint. But I think the chance to capture growth across hundreds of businesses makes the fund worth considering for a long holding period.

Foolish takeaway

Ten years is long enough for markets to change in ways that are difficult to predict today.

That is why I like ETFs that either spread their exposure widely or give investors access to areas where I can see substantial growth ahead.

I would be comfortable buying any of these Vanguard ETFs now and giving the investment plenty of time to work.

The post 3 Vanguard ETFs I’d buy and hold until 2036 appeared first on The Motley Fool Australia.

More reading

• 3 excellent Vanguard ETFs I would buy with $10,000
• 3 Vanguard ETFs to buy with $30,000

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.

When it comes to retirement, it’s good to have a handle on how much income you can expect to have on hand to get by on.

How much do you need for a comfortable retimrent?

The Association of Superannuation Funds of Australia (ASFA) calculates a retirement standard each year which is a guide to how much money you need for what they deem to be a comfortable retirement.

A “comfortable retirement” includes the ability to afford top level private health cover, to own and maintain a reasonable car, to maintain your home, and to travel occasionally, among other things.

The figures for a comfortable retirement are currently calculated at $730,000 for couples and $630,000 for singles.

ASFA also assumes that the retiree will draw down all of their capital over time and receive a part Age Pension.

For simplicity’s sake, I am going to assume a retiree is living off of dividends alone and not drawing down any capital.

In that case, what sort of income stream can you expect from a $630,000 lump sum?

The figures are pretty simple. If you can achieve a 10% dividend stream you would receive $63,000 per year, and for 5% it would be $31,500.    

I would argue that a 10% dividend yield from shares each year is unrealistic, while 5% is achievable.

Franking credits boost your earnings

You have to remember that once you are retired, you will get the benefit of franking credits from shares which have them attached.

In simple terms franking credits allow you to claim back the tax a company has already paid on their profits, which can be quite lucrative for retirees who are on a zero per cent tax rate.

In practice this means that if you have a full franked share paying a 5% dividend, the actual return will be 7.14%.

There are plenty of shares which will generate these sort of returns.

For steady dividend returns I am a fan of real estate investment trusts, which often hold a large number of diversified assets, therefore reducing risk.

The Charter Hall Social Infrastructure REIT (ASX: CQE) is paying a trailing dividend of 6.88%, while at the smaller end 360 Capital REIT (ASX: TOT) is paying 7.31%.

Among the banks Bendigo and Adelaide Bank Ltd (ASX: BEN) is paying 5.65% while Bank of Queensland Ltd (ASX: BOQ) is paying 6.22%.

Among the resources stocks Fortescue Ltd (ASX: FMG) is paying 6.87% while Woodside Energy Group Ltd (ASX: WDS) is paying 5.03%.

Given these sorts of returns, I’d argue a yield of 7.5% on your superannuation investments is realistic, which would equate to $47,250 per year from a balance of $630,000.

The post How much passive income could I earn from a $630,000 superannuation balance? appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 bank stocks making BIG moves today on results
• How much do I need in my superannuation to earn $50,000 per year in passive income?
• Buy, hold, sell: Bank of Queensland, Xero, PLS Group shares
• Bendigo and Adelaide Bank posts FY26 profit as it commits to risk overhaul
• Reporting season half-time report: 5 lessons from August so far

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation is a great way for Australians to build wealth for their retirement.

But it’s not just a savings pot.

Did you know that you can also earn a passive income off your balance once you transition to the pension phase?

But how much do you need in your super to be able to get the passive income you want when your retirement years arrive?

And how achievable is a $10,000 per month passive income?

Let’s investigate.

How much do I need in my superannuation to get a passive income of $10,000 every single month?

First, you need to work out what $10,000 in passive income every month equals over the entire year. 

So, $10,000 x 12 = $120,000.

Then you need to divide your annual passive income by the dividend yield of your overall portfolio. 

For example, $120,000 ÷ 5% = $2.4 million (that’s the portfolio size you’d need).

The catch is that the answer varies depending on your dividend yield.

That means a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of passive income.

Break it down for me

Say your overall portfolio has a yield of around 2% or 3%. You’ll need a balance of around $6 million or $4 million to earn your $10,000 per month ($120,000 per year) passive income.

Of course, these are huge figures and this level of superannuation balance is out of reach for the majority of Australians.

But the good news is, as your yield goes up, the amount you need to earn the same $10,000 per month passive income, goes down.

So, if your portfolio yields closer to 4%, you’d need around $3 million.

Then if your portfolio yields a little higher, around 5%, you’d need more like $2.4 million to earn the same amount.

At 6%, you’d need a superannuation balance of around $2 million to earn the same amount.

Increase that to a 7% or 8% yield, and you’re looking at closer to $1.7 million or $1.5 million, respectively.

Then if you have the appetite for higher yielding and riskier shares, around the 9% or 10% mark, you’d need around $1.33 million or $1.2 million in your super to earn the same level of passive income.

Remember, most ASX dividend shares pay dividends on a semi-annually or yearly basis. Which means that while you could target the equivalent of $10,000 per month in passive income, you won’t actually receive the money on a month-by-month basis, but instead in a lump sum every six or 12 months.

Why can’t I invest in the highest yielding ASX shares available so I can earn the same passive income off a lower balance?

Technically this is possible, but it comes with a significant amount of risk.

When it comes to ASX dividend shares, high-yielding shares could be cyclical businesses that fluctuate significantly with market cycles, niche companies with strong cash conversion, or they have discounted share prices. 

It doesn’t mean high-yield shares should be avoided, but rather, they should be part of a diversified portfolio rather than account for the entire portfolio.

Rather than trying to get rich quick, it’s best to concentrate on a diverse range of good-quality businesses with strong balance sheets and stable earnings. Ideally, you want to focus on stocks that are most likely to stand the test of time.

Ok, so what does a diversified portfolio look like?

If you plan to earn $10,000 per month off a 5% yielding portfolio, you’d need a balance of around $2.4 million.

That doesn’t mean that every investment in that superannuation portfolio has to be 5%. It can be a variation which equates to a combined overall 5% yield.

And remember, you don’t need to invest the whole sum in one go. Start with a monthly investment and let compounding do some of the hard work for you.

I’d look at splitting my superannuation portfolio into different yielding stocks, across different sectors.

You could look to have around 10% of your portfolio invested in 3% yielding ASX shares, 20% into 4% yielding, 35% into 5% yielding, 25% into 6% yielding, and 10% into 7% yielding. Overall, this would give a total overall portfolio yield of just over 5%.

Alternatively, you could split it down far more simply and allocate 20% equally to 2%, 3%, 4%, 5%, and 11% yielding shares. Again, overall, this would total a 5% yield and you’d benefit from a range of exposures.

The post How much superannuation do I need to earn $10,000 per month in passive income? appeared first on The Motley Fool Australia.

More reading

• PEXA Group updates market on FY26 volumes and responds to fee review
• Here are the top 10 ASX 200 shares today
• This popular ASX dividend stock has a 10% yield. That’s a problem
• 3 oversold ASX 200 shares trading for cheap right now
• This investment fund is paying a 7.2% dividend yield after solid results

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.