Category: Stock Market

Coles Group Ltd (ASX: COL) is one of the first businesses I think of when looking for defensive qualities on the ASX.

Australians still need groceries when economic conditions become difficult, giving the supermarket giant a dependable source of demand.

I think there is also enough growth ahead to make Coles more than simply a defensive holding.

Everyday demand is a major strength

Coles serves millions of customers buying food and household essentials each week.

That gives the business a level of resilience that companies dependent on discretionary spending cannot always match.

Consumers may change what they put in their baskets when budgets become tighter, but grocery spending itself remains difficult to avoid.

Coles also has enormous scale across stores, distribution, online shopping, and its Flybuys loyalty program. I think those customer relationships and infrastructure help reinforce its position in a highly competitive industry.

For investors looking for a share that could hold up reasonably well across a range of economic conditions, those qualities are attractive to me.

There is still a growth story

What strengthens the investment case for me is the opportunity for Coles to improve an already enormous business.

The company has invested heavily in automated distribution centres and online fulfilment infrastructure.

These investments can help Coles move products through its growing network more efficiently, improve availability, and handle growing online demand.

Small operational improvements can become meaningful when applied across a supermarket business of this size.

The earnings forecasts suggest analysts expect those efforts to translate into continued progress.

According to CommSec consensus estimates, earnings per share are forecast to rise from 98.2 cents in FY27 to $1.05 in FY28 and $1.15 in FY29.

That represents cumulative growth of around 17% over those two years.

What about the price?

At around $23.39, Coles trades on a PE ratio of approximately 24 times forecast FY27 earnings, falling to just over 20 times FY29 earnings.

I would not call that cheap. However, I think a premium can be justified for a business offering resilient demand alongside a positive earnings outlook.

Income investors also have something to consider. CommSec consensus estimates point to fully franked dividends of 83.5 cents per share in FY27, 88.8 cents in FY28, and 97.4 cents in FY29.

That starts with a forward dividend yield of around 3.6%, with the potential for the income to increase over time if those forecasts are achieved.

Foolish takeaway

Coles remains one of my preferred defensive ASX shares.

Its grocery business gives it dependable demand, while automation, online shopping, and an expanding Australian population provide opportunities to keep growing.

Coles shares carry a premium, but I think the quality of the business and forecast earnings growth make that price reasonable.

For investors seeking resilience without sacrificing the prospect of long-term growth, I think Coles remains a strong buy.

The post Is Coles still one of the best defensive ASX shares to own? appeared first on The Motley Fool Australia.

More reading

• Coles vs Woolworths shares: One I’d buy and one I’d sell
• How I’d use ASX shares to build wealth outside my superannuation
• 11 ASX 200 shares with reaffirmed buy ratings post-results
• Top 3 ASX 200 shares that lifted their dividend this reporting season
• Own BHP, Woodside or Coles shares? Here’s what investors should know

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.

There are countless investing strategies that investors can focus on to generate wealth. 

Two of the most common are growth and value. These two strategies are often viewed as opposing investment styles.

However Global X offers ASX ETFs that combine the best of both worlds.

Growth vs Value

Growth investors seek companies with above-average revenue and earnings growth. 

The attraction is that businesses can sustainably grow their earnings and have the potential to compound shareholder value over time. 

However, it can come with a price. 

As investors become increasingly optimistic about a company’s prospects, its valuation can rise well ahead of its fundamentals.

If expectations are not met, even a high-quality company can experience a significant decline. 

On the other side of the coin sits value. 

Value investors take a different approach, seeking companies that appear inexpensive relative to their fundamentals. 

The challenge is distinguishing between a genuine opportunity and a value trap. 

A company may look cheap because its earnings are deteriorating, profitability is falling or its competitive position is weakening. 

Balancing both using Growth at a Reasonable Price (GARP)

According to Global X, GARP seeks to navigate between these two extremes. 

The opportunity lies where these characteristics intersect. 

GARP doesn’t just blindly pay for growth or buy what looks cheap. It is about finding businesses where the growth opportunity is supported by quality fundamentals and where the price remains reasonable.

Rather than trying to predict which factor will lead the market next, GARP combines several characteristics within a single framework. 

This can provide advisers with a more balanced approach to factor investing, seeking exposure to companies with sustainable earnings growth while maintaining discipline around valuation and quality.

How to invest with GARP principles using ASX ETFs

For investors looking to apply GARP strategy to their own portfolio, there are several ASX ETFs to consider. 

The first is the Global X S&P World Ex Australia GARP ETF (ASX: GARP). 

It provides exposure to approximately 250 global companies that meet the GARP criteria, combining growth, quality and valuation characteristics. 

Since launching in September 2024, GARP has demonstrated the potential of the approach in live market conditions, ranking among the stronger-performing factor strategies over the period.

For investors looking to apply the same framework to Australian shares, an option to consider is the relatively new Global X S&P Australia GARP ETF (ASX: GRPA). 

It provides exposure to approximately 50 Australian companies selected for their combination of growth, financial strength and reasonable valuations. 

It also applies a systematic approach to identifying companies where these characteristics align, but within the Australian equity market.

The post How to balance growth and value using these 2 ASX ETFs appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares I am close to buying in August

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.

The best exchange traded funds (ETFs) are not always the ones making the most noise today.

For long-term investors, a strong buy and hold pick should offer exposure to markets, industries, or businesses that can keep becoming more important over time.

With that in mind, here are three ASX ETFs that could be worth considering.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF gives investors exposure to large technology and online retail companies across Asia, excluding Japan.

This is an interesting part of the market because Asia is both a major producer and consumer of technology.

The region is home to key semiconductor manufacturers, hardware businesses, ecommerce platforms, digital entertainment companies, and internet giants. That means investors are not just buying one narrow idea. They are gaining exposure to several parts of Asia’s digital economy.

Holdings include SK Hynix, Samsung Electronics, and Taiwan Semiconductor Manufacturing Co (NYSE: TSM).

This could make the Betashares Asia Technology Tigers ETF a strong long-term option for investors who want technology exposure beyond the usual US names.

Betashares Global Cybersecurity ETF (ASX: HACK)

The Betashares Global Cybersecurity ETF could be another ASX ETF to look at for the long term.

Cybersecurity is becoming one of those expenses that businesses cannot easily avoid.

Companies can delay some technology projects when conditions are tough. But protecting customer data, payment systems, cloud networks, devices, and internal systems is harder to postpone.

That gives this sector a different feel to many other growth themes. The Betashares Global Cybersecurity ETF owns companies involved in areas such as network security, endpoint protection, identity management, cloud security, and threat detection.

This includes Palo Alto Networks (NASDAQ: PANW), Fortinet (NASDAQ: FTNT), and CrowdStrike (NASDAQ: CRWD).

This ETF can be volatile, but the need for better digital protection is unlikely to disappear.

Vanguard Global Technology Index ETF (ASX: VTEK)

A third ASX ETF that could be a strong buy and hold pick is the Vanguard Global Technology Index ETF.

This fund gives investors exposure to around 300 large and mid-cap technology stocks across developed and emerging markets.

That makes it broader than a fund focused only on one exchange or one technology theme.

The Vanguard Global Technology Index ETF provides exposure to companies involved in chips, software, hardware, digital platforms, cloud infrastructure, and other parts of the global technology sector.

Its holdings include NVIDIA (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT).

For investors who believe technology will keep taking a larger role in business and everyday life, this ETF offers a simple way to invest in that long-term shift.

The post Why these ASX ETFs could be strong long-term picks appeared first on The Motley Fool Australia.

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• 3 Betashares ETFs I want to buy
• How much passive income can I earn off a $630,000 superannuation balance
• 3 exciting ASX ETFs to watch
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• 3 amazing ASX ETFs for Aussie investors in September

Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Global Cybersecurity ETF, CrowdStrike, Fortinet, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Palo Alto Networks. The Motley Fool Australia has recommended Apple, CrowdStrike, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX healthcare shares have spent the past year being repriced harder than almost any other corner of the market.

CSL Ltd (ASX: CSL) fell as low as $90 before staging a recovery, and Pro Medicus Ltd (ASX: PME) has roughly halved from the high it set less than a year ago.

Yet the sector rose 9% in a week during reporting season, which tells you sentiment may have started to turn.

Why ASX healthcare shares fell so far

The damage was mostly self-inflicted at the company level.

CSL wrote down its Vifor acquisition, Pro Medicus derated from an extraordinary multiple, and drug pricing pressure from the United States hung over the entire sector.

None of those problems has vanished, but the price investors are now asked to pay for them has changed.

That is usually where the better opportunities in a beaten-up sector are found.

1. CSL

CSL trades around $175 against a 52-week range of $90.00 to $222.47.

FY26 was openly badged as a reset year.

Revenue slipped 1% to US$15.8 billion, and impairments of US$7.1 billion drove a statutory loss of US$2.6 billion.

Underlying profit after tax and amortisation still reached US$3.1 billion, which is the figure worth focusing on because the impairments were non-cash and largely historical.

The forward numbers are what matter here.

CSL is targeting US$400 million of annual cost savings, rising to US$550 million by FY28.

FY27 guidance points to underlying profit growth of around 5%, with a further A$1.1 billion buyback authorised.

On the flipside, the company’s dividend was held at US$2.92 per share and net debt sits at 1.8 times EBITDA.

2. Pro Medicus

Pro Medicus is the quality name and remains the expensive one.

The shares trade near $185 against a 52-week high of $321.57, so the derating has been severe.

FY26 revenue rose 22.9% to $261.7 million and underlying net profit climbed 24.1% to $144.7 million.

The company’s underlying EBIT margin reached 74.9% and the company remains debt-free with $252.3 million in cash.

Chief executive Dr Sam Hupert was optimistic about the previous year:

We were aiming for 30% increases in EBIT and NPAT, and we exceeded both on a constant currency basis.

The company signed $407 million of new contracts and lifted its dividend 25.5% to 69 cents.

At roughly 75 times earnings the shares are still priced for something close to perfection, though considerably less so than they were twelve months ago.

3. Ramsay Health Care

Ramsay Health Care Ltd (ASX: RHC) is the turnaround story of the three.

FY26 revenue reached $18.6 billion and underlying EBIT rose 11.8% to $1.2 billion.

The EBIT margin improved 30 basis points to 6.2%, which is the number the market had been waiting on.

The full-year dividend lifted 13.8% to 91 cents.

The bigger catalyst is linked to its markets.

Ramsay plans to separate Ramsay Santé, its European business, with a shareholder vote scheduled for 24 November.

Approval would leave behind a simpler, Australian-focused hospital operator with a cleaner balance sheet and a far easier story for investors to value.

What could go wrong with ASX healthcare shares

Each of these stocks carry their own risk.

CSL still has to prove that its cost programme can deliver, and its Vifor division is guided to shrink around 25% in FY27.

Pro Medicus depends on continued contract wins in a US market where it already holds meaningful share.

Then on the other hand, Ramsay’s separation still requires a shareholder vote in November, and demergers routinely take longer and cost more than the initial timetable suggests.

Foolish takeaway

Of these three ASX healthcare shares, CSL offers the clearest difference between price and normalised earnings.

Pro Medicus has the best business and the hardest valuation to defend, whereas Ramsay has the most tangible catalyst and yet the least growth behind it.

A brutal twelve months has left the sector significant cheaper than it was, without making any of these three businesses straightforward to own.

The post Top 3 ASX healthcare shares to buy after a brutal year appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX shares I’d buy with $5000 right now
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• ASX shares investors are getting younger and trading more often: CBA report
• 11 ASX 200 shares with reaffirmed buy ratings post-results
• How CSL shares skyrocketed 39% in August

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

Rio Tinto Ltd (ASX: RIO) shares have been on fire over the past year.

Recently trading for $173.18, shares in the S&P/ASX 200 Index (ASX: XJO) mining giant have surged 51.3% in 12 months, smashing the 0.6% one-year gains posted by the benchmark index.

And that’s not including the two fully franked dividends, totalling $6.70 a share, that Rio Tinto paid (or shortly will pay) over the full year.

If we add that back into the recent share price of $173.18, then the accumulated value of Rio Tinto shares has rocketed 57.2% in 12 months.

But with those kinds of outsized gains already in the bag, should I still buy the ASX mining stock today?

Rio Tinto shares: Buy, hold or sell?

Morgans’ Damien Nguyen recently ran his slide rule over the ASX 200 mining giant (courtesy of The Bull).

“Rio Tinto continues to generate strong cash flow from its world class iron ore operations, while building exposure to copper and lithium,” Nguyen said.

“The company maintains a robust balance sheet and offers attractive shareholder returns, supported by low-cost assets,” he added.

But amid concerns over the miner’s heavy weighting towards iron ore and its strong run higher, Nguyen issues a hold recommendation on Rio Tinto shares.

He concluded:

However, iron ore remains the primary earnings driver, leaving profits exposed to movements in commodity prices and Chinese demand. Given this balance of quality and cyclical risk, we see Rio Tinto as fairly valued at recent levels.

What’s the latest from the ASX 200 mining stock?

Rio Tinto shares were in sharp focus on 29 July following the release of the company’s half year results (H1 2026).

Highlights included a 15% year on year increase in revenue to US$31.0 billion. And earnings surged 28%, with the miner reporting underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$14.8 billion.

On the bottom line, Rio Tinto reported a half year net profit of $6.7 billion, up 48.9% from H1 2025.

With profits surging, management declared a $3.029 per share fully franked interim dividend, up 36.4% from last year’s interim payout.

The stock traded ex-dividend on 13 August. If you held shares on 12 August, you can expect that passive income to land in your bank account on 24 September.

“Our strong performance is underpinned by accelerating productivity across the business,” Rio Tinto CEO Simon Trott said.

Rio Tinto shares closed up 3.7% on the day of the results announcement.

The post Up 57%! Should I still buy Rio Tinto shares today? appeared first on The Motley Fool Australia.

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• Up 20% this year, are Rio Tinto shares still good value?
• What’s driving the ASX 200 higher today?
• Here’s how Fortescue, Rio Tinto and BHP shares stacked up in August
• How much passive income can I earn off a $630,000 superannuation balance
• Is it a great time to buy Rio Tinto shares?

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.

South32 shares have almost doubled in a year. At current valuation levels, more and more brokers are starting to turn against the stock.

Those brokers, including Morgans, MPC Markets and others, have also issued fresh ratings on two other ASX stocks this week.

Between the three, one has run too hard, one is caught in a housing downturn, and one is rebuilding itself.

Here’s what the brokers had to say

Hold: South32 shares

South32 Ltd (ASX: S32) shares have gained 96% over twelve months, which values the miner at roughly $23 billion.

Morgans has downgraded to a hold, arguing the earnings upcycle is now reflected in the price.

The broker noted the stock has outperformed even the pure copper producers.

To explain the rally, investors need look no further than the FY26 numbers.

Underlying revenue rose 7% to US$8,108 million and underlying EBITDA jumped 28% to US$2,462 million.

Underlying earnings after tax climbed 55% to US$1,032 million, with the operating margin widening 4.7 percentage points to 31.0%.

The final dividend more than doubled to US5.4 cents, taking the full-year payout to US9.3 cents fully franked.

Net cash reached US$283 million and free cash flow grew 136% to US$610 million.

Chief executive Matt Daley said of the year:

We’re repositioning South32 as an upstream, base metals-focused company, primed for growth, and transforming into a simpler, stronger business.

Sell: Australian Finance Group

Australian Finance Group Ltd (ASX: AFG) finds itself in the opposite situation.

The mortgage aggregator closed near $1.435 at the start of the week, down almost 49% over twelve months and near a 52-week low.

MPC Markets sees more downside than upside from here, pointing to the slowing property market.

Home loan applications have fallen sharply since the May federal budget, and AFG’s earnings follow that volume directly.

The frustrating part is that the business itself performed.

FY26 net profit after tax rose 39% to $49 million, with underlying profit up 33% to $54 million. Residential settlements grew 18% to $75 billion and the loan book expanded 30% to $7.1 billion.

More than 4,300 brokers now write roughly one in nine Australian mortgages through the group.

At 8.55 times earnings and a 5.94% yield, a housing downturn is already reflected in the price, potentially presenting an opportunity for investors who take a contrary view on the housing market.

Buy: Magellan Financial Group

Magellan Financial Group Ltd (ASX: MFG) is the contrarian call of the three.

Morgans remains constructive despite trimming its price target, and the reason is the Barrenjoey merger.

The merger was completed on 1 July. In this transaction, the investment bank contributed $112 million of operating profit after tax in FY26 at a 32.9% return on equity.

However, the headline numbers still look ugly.

Statutory net profit after tax of $146 million was roughly half the prior year.

Standalone Magellan revenue fell 12% to $291 million, and combined funds under management were $41 billion at 30 June.

Shareholders received a fully franked second-half dividend of 25.5 cents, an 80% payout, with a 60% to 90% range targeted from here.

The group intends to rebrand as Barrenjoey, subject to a shareholder vote at the annual general meeting in October.

Foolish takeaway

I think the Morgans’ view on South32 shares is fair.

A 96% gain and a doubled dividend is what a commodity peak often looks like. The balance sheet is in excellent condition either way.

Australian Finance Group looks cheap yet very risky, since nothing improves for a mortgage aggregator until applications recover.

Magellan is the most interesting of the three, because the market is still valuing the company as a fund manager, instead of an investment bank. This could provide an opportunity for investors looking for bargain deals on the market.

The post Buy, hold, sell: South32, Australian Finance Group and Magellan shares appeared first on The Motley Fool Australia.

More reading

• 9 ASX shares downgraded by experts post-results this week
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• Buy, hold, sell: South32, Australian Finance Group, Magellan shares
• 5 ASX shares downgraded by Morgans post-results
• Buy, hold, sell: South32, Mineral Resources, BHP shares

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

Temple & Webster Group Ltd (ASX: TPW) shares have been smashed over the past year, falling around 79%.

At approximately $4.70 today, investors are being offered a very different entry point to 12 months ago.

I think the sell-off has gone far enough to create an opportunity for long-term investors.

The market is much bigger than Temple & Webster

Temple & Webster is Australia’s largest pure-play online furniture and homewares retailer, but I think its current scale can disguise how much of the market remains available.

The company puts its addressable Australian furniture, homewares, and home improvement markets at around $40 billion. Earlier this year, management was still targeting $1 billion of annual revenue by FY28.

That gives some perspective on the runway ahead.

There is also a structural shift that could help Temple & Webster take more of that spending.

Only around 20% of Australian furniture and homewares sales were online based on the company’s market analysis, compared with 35% in the US and 29% in the UK. Online penetration in home improvement was even lower at around 5% to 10%.

I do not think Australia needs to completely match either overseas market for Temple & Webster to benefit. Even a gradual shift online could move billions of dollars of spending towards the channel where it is already a leader.

There is more than furniture to pursue

I also like that the opportunity is no longer confined to sofas, dining tables, and homewares.

Home improvement has significantly expanded the market Temple & Webster can target, while the company has started testing its model in New Zealand. Its Australian business also benefits from an asset-light model where much of its range is shipped directly from suppliers.

That gives the ASX share several ways to become larger without needing the overall furniture market itself to suddenly boom.

For me, the long-term question is whether Temple & Webster can keep taking spending away from traditional stores as more people become comfortable furnishing their homes online.

I think it can.

Still not a cheap share

The 79% fall has not turned Temple & Webster into a conventional value stock.

At $4.70, consensus earnings per share forecasts of 13.6 cents in FY27 put it on a PE ratio of roughly 35 times forward earnings.

But analysts expect earnings to rise to 15.3 cents in FY28 and 20.6 cents in FY29. If that final forecast is achieved, today’s price represents less than 23 times FY29 earnings.

That is much easier for me to accept when the business is still pursuing such a large market.

There are risks. Consumer spending can weaken, competition could increase, and the shift towards online furniture shopping may take longer than expected. But I believe this is priced into its shares following their sharp decline.

Foolish takeaway

A 79% decline gets my attention when the growth opportunity remains this substantial.

Temple & Webster still needs to deliver, and I would not call the shares cheap at around $4.70.

But with online penetration still relatively low and a huge market left to capture, I think the current price gives patient investors an attractive chance to back the business for the next several years.

The post This ASX share is down 79%. Is it a buy? appeared first on The Motley Fool Australia.

More reading

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

All Ordinaries Index (ASX: XAO) construction services specialist Shape Australia Corporation Ltd (ASX: SHA) counts among my top passive income picks today.

There’s a lot to like about this stock.

First, the share price has been in a strong upward trend for more than three years now.

Second, it pays fully franked dividends. This give you credit for the 30% in corporate taxes the company has already forked out to the ATO on the profits it earns. Meaning you should be able to hold onto more of that passive income when it’s time to pay your own tax bill.

And, importantly, Shape has been steadily increasing its dividend payouts for four years running now. That’s a trend I like to see.

Over the past 12 months (as at Thursday afternoon) the Shape share price has rocketed 74.5%, recently trading for $7.40 a share.

Over this time, the ASX All Ords stock has paid – or shortly will pay – two fully franked dividends totalling 32 cents per share.

Shape shares traded ex-dividend on 28 August. Shareholders who held the stock on 27 August can expect to see the final 18 cents per share hit their bank accounts on 14 September.

At the recent share price, then, Shape trades on a 4.3% fully franked trailing dividend yield.

But some investors are earning a lot more from their Shape shares.

Getting in early for that passive income boost

While trying to time the market is incredibly difficult – and nearly impossible to do consistently – buying the right ASX dividend stocks in their earlier growth days can pay off handsomely over time.

Which relates more to “time in the markets” than timing them.

In Shape’s case, savvy passive income investors could have bought into the company for $1.80 a share in early January 2024. Now, I’m not cherry-picking a particularly low entry point here. Indeed, in January 2024, the Shape share price had gained 19% over the prior 12 months.

Now, if you’d bought Shape shares in January 2024, and held tight, you’d have been eligible to receive the past six fully franked dividends, totalling 71.5 cents a share. This would have already returned 40% of your initial investment to you as passive income alone, not to mention the 311% increase in the Shape share price over this time.

And at your buy-in price of $1.80, the past year’s dividend payout of 32 cents per share equates to a fully franked dividend yield of 17.8%. Or 25.4% grossed-up, if we factor in those franking credits.

The post How these savvy passive income investors are earning a stellar 18% dividend yield from this ASX All Ords stock appeared first on The Motley Fool Australia.

More reading

• Up 75%! Why this rocketing ASX All Ords stock is forecast to deliver more outsized gains
• SHAPE Australia: Record profit, revenue, and dividends in FY26

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

Turning 60 has a way of making superannuation feel more immediate.

For much of working life, the balance can sit quietly in the background while mortgages, family costs, and everyday spending take priority.

But at 60, superannuation starts to move to the foreground and retirement planning comes into play.

That makes the average balance at this age particularly interesting for anyone wondering how they compare.

The average superannuation balance at 60

The latest data is reported in five-year age groups rather than for individual birthdays, so there is no precise figure for Australians who are exactly 60.

However, the 60 to 64 age bracket gives us the clearest guide. The average superannuation balance for women in this group is $327,440, while the average for men is $413,700.

Those numbers are noticeably higher than in the 55 to 59 age bracket, where the averages are $260,199 for women and $341,115 for men.

That difference shows how much work super can still do late in a career. Employer contributions are continuing, and a larger balance means investment returns can have a greater dollar impact when markets are favourable.

Is the average balance enough?

The Association of Superannuation Funds of Australia (ASFA) estimates that homeowners need $630,000 in super for a comfortable retirement as a single person at age 67, while a couple needs about $730,000 combined. These figures assume some Age Pension support over time.

Against those targets, the typical balance for someone around 60 may still leave a single person with some ground to cover. The picture can look different for a couple, particularly if both partners have balances around the averages and own their home outright.

Retiring at 60 also creates another consideration because Age Pension eligibility does not begin until 67. Someone leaving work at 60 may therefore need super and other savings to carry more of the load during those early retirement years.

A useful checkpoint

The average superannuation figures should be treated as a comparison rather than a target because retirement needs vary depending on housing, spending, health, other investments, and when someone plans to stop working.

Even so, age 60 is a valuable time to take stock. With average balances of around $327,000 for women and $414,000 for men in the 60 to 64 age group, many Australians have accumulated substantial retirement savings while still having time to improve their position if they keep working.

I think the more useful question is not simply whether your super matches the average, but whether the balance you have built can support the retirement you want.

The post What is the average Australian superannuation balance at age 60? appeared first on The Motley Fool Australia.

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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 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 shares could face a tougher road ahead as concerns about a potential market correction grow due to high valuations, rising inflation, trade tensions and geopolitical uncertainty.

Market crashes are impossible to predict consistently, but Warren Buffett has spent decades building Berkshire Hathaway to survive — and potentially capitalise on — financial panics.

His approach isn’t about calling the market crash. Instead, it centres on financial strength, patience and having capital available when attractive opportunities emerge.

Keep plenty of cash on hand

One of Buffett’s most important lessons is avoiding situations where you’re forced to sell investments at the worst possible time.

Berkshire Hathaway has historically maintained a substantial reserve of cash and short-term US Treasury securities. Buffett has emphasised the importance of holding enough liquidity to ensure the company can meet its obligations and take advantage of opportunities during periods of market stress.

That philosophy proved valuable during the 2008 financial crisis, when Berkshire had the financial flexibility to deploy capital as other businesses struggled to access funding.

For ASX investors, the lesson is straightforward: liquidity gives you options. Holding some cash can provide a buffer during a downturn and, more importantly, allow investors to buy quality ASX shares when prices become more attractive.

Don’t try to predict the crash

Buffett doesn’t need to know exactly when the next market crash will arrive. In 2024, Berkshire was a significant net seller of equities while increasing its holdings of US Treasury bills. That fuelled speculation that Buffett was anticipating a market collapse.

But there’s an important distinction. Buffett has repeatedly indicated that Berkshire is willing to hold cash when it cannot find enough high-quality investments trading at prices that meet its standards.

For ASX investors, that means there may be little value in constantly trying to predict whether a correction is imminent. A better approach could be maintaining a watchlist of quality ASX shares and waiting for valuations to become compelling.

When prices eventually fall, cash can become extremely valuable.

Buy when others are fearful

Buffett has long viewed market declines differently from many investors. In his shareholder letters, he has highlighted how falling share prices can benefit long-term investors because they allow capital to be deployed more cheaply.

That’s the heart of the strategy: don’t fear volatility if you’re financially prepared to take advantage of it.

For investors considering ASX shares, this doesn’t mean blindly buying stocks simply because they’ve fallen.

Buffett’s approach is about buying high-quality businesses with durable competitive advantages, strong financials and attractive long-term prospects — ideally at sensible prices.

Foolish takeaway

Warren Buffett doesn’t prepare for crashes by predicting them. He prepares by maintaining financial flexibility, avoiding excessive risk and patiently waiting for compelling opportunities.

That could be an important lesson for investors in ASX shares facing elevated valuations and economic uncertainty. When the next market correction arrives, investors with cash, conviction and a long-term mindset could be best positioned to take advantage of it.

The post How Warren Buffett prepares for a market crash and what it means for ASX shares appeared first on The Motley Fool Australia.

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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 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.