Category: Stock Market

Woolworths vs Metcash shares: Which is the better ASX defensive stock?

Choosing between Woolworths Group Ltd (ASX: WOW) and Metcash Ltd (ASX: MTS) is a classic dilemma for investors seeking a defensive anchor on the ASX. Both companies are at the heart of Australia’s consumer staples scene— but their scale, focus, and fundamentals tell very different stories. If you’re looking to decide between Woolworths vs Metcash shares, let’s unpack what really sets them apart.

The case for Woolworths

Woolworths is a giant in the Australian and New Zealand supermarket landscape, with iconic brands and a massive, established store network. Woolworths owns the likes of Big W domestically and supermarket chains in New Zealand, maintaining a sprawling operation across more than 1400 stores and employing over 190,000 people as of its most recent public description. The group moved out of liquor and hospitality in 2021 by spinning off Endeavour Group, firmly returning its focus to groceries and discount retail— businesses that tend to shine when times are tough.

A few standout figures:

• Market cap of $48.36 billion, making it one of the largest companies on the ASX
• P/E ratio of 42.89 signals a premium valuation
• Dividend yield of 2.45% (fully franked), supported by reliable cash generation over decades

Woolworths also boasts a 100% franked dividend, handing full tax credits to Australian shareholders. Its reputation as a “defensive share” comes from the essential nature of its products— even in lean times, most households keep buying their groceries.

The case for Metcash

Metcash is the backbone for many of Australia’s independent supermarkets, bottle shops, and hardware stores. Its wholesale model supplies well-known brands like IGA and Foodland (supermarkets), Cellarbrations and Bottle-O (liquor), and Mitre 10 and Total Tools (hardware). Unlike Woolworths’ direct-to-consumer approach, Metcash supports and supplies a vast network of independent retailers—an approach that might be less visible day-to-day, but is absolutely critical to regional and local economies.

Key metrics for Metcash include:

• Market cap of $3.46 billion, much smaller than Woolworths’
• P/E ratio of 12.17, markedly lower than Woolworths’
• Dividend yield of 5.84% (fully franked), offering a higher income stream for shareholders

Metcash’s 100% franked dividends also give Australian investors the full franking benefits, and its focus on supporting independent businesses offers potential for stability in challenging retail climates.

Valuation comparison

Here’s how Woolworths and Metcash stack up on the key valuation and income metrics:

	Woolworths	Metcash
Market Cap	$48.36 billion	$3.46 billion
P/E Ratio	42.89	12.17
Dividend Yield	2.45%	5.84%
EPS	0.925	0.253
Dividend per share	0.97	0.19
Franking	100%	100%

Woolworths trades on a substantially higher P/E ratio, reflecting its scale, stability, and perceived lower risk. In contrast, Metcash’s lower P/E and higher yield may look appealing to value and income investors. Note: P/E ratios between a national supermarket retailer and a wholesale distributor aren’t perfectly like-for-like, but the contrast is hard to miss.

Recent share price momentum

Comparing recent share price performance up to 14 October 2026:

• Woolworths closed at $39.59, down slightly by 0.20% on the day
• Metcash closed at $3.08, unchanged for the session
• Year-to-date, Woolworths is up an impressive 38.3%, while Metcash is down 3.8%

Woolworths has powered ahead in 2026, while Metcash has struggled for momentum.

Which is the better buy?

If I had to pick a better ASX defensive stock right now, I’d lean toward Woolworths. Its ultra-defensive business model, massive brand presence, and recent share price outperformance simply can’t be ignored. Yes, the P/E is lofty compared to Metcash, but investors have been willing to pay up for proven resilience and stability—just look at the 38% YTD return versus Metcash’s negative return. Metcash does offer a much higher (and fully franked) dividend yield, which could suit income hunters. But overall, Woolworths’ combination of reliability, proven dividends, and price momentum put it ahead for me when looking for a sleep-easy, core ASX defensive share.

The post Woolworths vs Metcash: Which ASX defensive stock 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 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 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.

Once upon a time, investing was seen as an exclusive club for the wealthy and well-connected. 

High transaction fees, significant minimum balance requirements, and a lack of access to information posed barriers for many Australians.

Today, almost anyone can invest. Technological advances such as online brokers, fractional trading, and a wide range of information sources have democratised access to financial markets. 

The ASX currently operates Australia’s largest equity market, with more than 2,000 listed entities. Around 2,500 retail products are currently on offer.

Over the past 12 months, average daily trading activity hit $9.1 billion. This level of liquidity and transparency has instilled investor confidence and fuelled investor participation.

Given these changes, the average Australian investor’s profile is likely to have changed dramatically over the past few decades.

So, what does the average Australian investor look like in 2026? 

How big is their portfolio? How old are they? What are they invested in? How often do they trade? 

These questions were recently answered in the 2026 ASX Australia Investor Study.

Meet your average Australian investor

Gone are the days of the average Australian investor being a multimillionaire. 

Today, the average Australian investor is 46 years old with an income of $122,000. That’s only slightly higher than the average Australian annual wage of $108,000, as reported by the Australian Bureau of Statistics.

In terms of portfolio size, the average sits at $450,000. However, this reflects a small number of investors with very large portfolios pulling that number significantly higher. The median portfolio value is much lower at $130,000. This means that 50% of Australian investors have portfolios worth less than that number.

The average Australian investor trades (buys and sells) nine times a year. Interestingly, this number is down from an average of 13 times in 2023. 

Online brokers remain the most popular trading platform. Nearly 70% of investors used them to place a trade in the past year.

ASX-listed shares remain the most popular investment type, with 48% of Australian investors making a new investment in the past 12 months.

Exchange-traded funds (ETFs) ranked second, with 33% of investors adding this investment type to their portfolio in the past year. 

This is not surprising given the surge in popularity of ETFs since Australia’s first ETF launched in 2001. 

The COVID-19 pandemic further accelerated Australians’ preference for ETFs, with investors drawn to their simplicity and low cost.

In fact, since 2020, the number of ETF investors has nearly doubled, with an additional 2.47 million Australians adding at least one ETF to their portfolio.

As reported by the Australian Financial Review, State Street, the largest global ETF administrator and one of the world’s big three ETF providers alongside BlackRock and Vanguard, has predicted the Australian ETF market to grow to $380 billion in funds under management (FUM) in 2026. This would be a material increase from $320 billion in ETF FUM in 2025.

Cryptocurrency was ranked the third most popular asset class, with 23% of investors making an investment in the past 12 months. While Bitcoin (CRYPTO: BTC) remains the most popular cryptocurrency, many others have entered the market in recent years, lifting participation rates. 

What is holding people back?

An additional 950,000 Australians plan to make their first investment in the next 12 months. Among these prospective investors, 41% plan to invest in ASX-listed shares, 33% in ETFs, and 28% in cryptocurrencies.

However, some Australians continue to face real or perceived barriers that prevent them from investing. 

A lack of Investment knowledge was cited as the leading barrier for intending investors. 51% of respondents said they would start investing if they developed sufficient knowledge. 

Being more confident about future returns (28%) and waiting until the economy and markets feel more stable (16%) were also cited as additional barriers.

Where do investors get their information?

The ASX Investor Study also examined Australian investors’ preferred sources of investment information in 2026. 

Family and friends were cited as the top source of information at 41%. This was noticeably up from 2023, when this number sat at 31%. 

According to the study:

Investors faced with a large volume of information, and potential misinformation and disinformation, may be turning increasingly to family and friends when making investment decisions. There was also a noticeable increase in the importance of online broking websites and traditional media as information sources, compared with 2023.

Primary sources such as company annual reports and websites, and product disclosure statements ranked further down the list. 

The study suggested that “investors are relying more on third-party opinions and less on information sourced directly from companies or product providers.”

Short videos and podcasts also remained popular, with around a third of investors using these mediums as an information source.

What about artificial intelligence? 

The prevalence of artificial intelligence as an information source was also surveyed.

Around 14% of investors use AI tools as a “significant source of information advice”.

However, the gap between age brackets was particularly noticeable. While 24% of Younger investors (age 18 to 29) reported using AI, just 1% of retirees (over 65) had used this new medium for investment information over the past 12 months.

Foolish Takeaway

The democratisation of financial markets has allowed many Australians to become millionaires through investing. 

Over the past 30 years, Australian shares have achieved an average annual growth rate of 9%. 

This means that the average Australian investing $1,000 per month at this growth rate can increase their balance to around $1 million in 25 years. 

With that kind of life-changing trajectory, we should all celebrate progress that has been made in the investing landscape over the past few decades.

The post What does the average Australian investor in 2026 look like? 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 Bitcoin and BlackRock. The Motley Fool Australia has positions in and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Arena REIT (ASX: ARF) share price is in focus today after the company upgraded its FY2027 distribution guidance, now expecting to pay out between 19.0 and 20.2 cents per security—an increase of up to 12.2% on previous guidance.

What did Arena REIT report?

• FY2027 distribution guidance upgraded to 19.0–20.2 cents per security (was not less than 18.0 cps).
• Upgrade reflects positive progress on resolving the Edge portfolio.
• Three targeted property divestments totalling $16.6 million in Q1 FY2027, at a 10.9% premium to book value.
• Fully funded development pipeline maintained.

What else do investors need to know?

Arena’s revised distribution guidance is based on successful resolution and rent receipt from 27 properties in the Edge portfolio during September and October 2026. The outlook also factors in recent lease agreements with new tenants and proceeds from applying a $4 million bank guarantee tied to the Edge assets.

The company completed three property divestments in early FY2027, raising $16.6 million and delivering a healthy premium to book value. This forms part of its ongoing strategy to recycle assets and enhance its portfolio’s quality. Arena says no new acquisitions or material changes to current market conditions are assumed in the new guidance.

What’s next for Arena REIT?

The upper end of Arena’s guidance depends on outstanding transactions—most notably, Goodstart Early Learning’s proposed acquisition of 20 Edge businesses operating from Arena-owned centres. These transactions are still subject to due diligence, transfer of service approvals, and final documentation.

Arena plans to continue its prudent capital management and asset recycling program, with a focus on high-quality, long-term rental growth assets. The company’s approach to development and capital allocation will be guided by progress on Edge portfolio outcomes and market conditions.

Arena REIT share price snapshot

Over the past 12 months, Arena REIT shares have declined 37%, trailing the S&P/ASX 200 Index (ASX: XJO), which has fallen 2% over the same period.

View Original Announcement

The post Arena REIT upgrades FY2027 distribution guidance on Edge portfolio progress 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 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.

The Ampol Ltd (ASX: ALD) share price is in focus after the company announced continued growth in Group RCOP EBIT for the third quarter of 2026 and a doubling of the Lytton Refiner Margin compared to last year.

What did Ampol report?

• Group RCOP EBIT grew from the 2H 2025 quarterly average, driven by the integrated supply chain and positive operating conditions.
• Lytton Refiner Margin reached US$23.92 per barrel in 3Q 2026, up from US$10.64 in 3Q 2025.
• Convenience Retail shop sales rose by double-digit percentages, with robust growth in both tobacco sales and average basket value.
• Total Group sales volume was 6,245 ML for the quarter, up 3.6% on the prior year.
• Australian wholesale volumes were down 19%, while international volumes rose by 23% for the quarter.
• The Ultra Low Sulfur Fuels project commissioning is now expected in 1Q 2027, with no material impact on earnings or capex outlook.

What else do investors need to know?

Ampol has taken the proactive step of completing additional reliability work and bringing forward maintenance activities within the current Turnaround and Inspection at the Lytton refinery. While this means refinery production was 9.2% lower versus the previous corresponding period, customer fuel supply is not expected to be affected.

The company is pushing ahead with its energy transition plans, announcing a proposed acquisition of Evie Networks, a public electric vehicle charging provider. This strategic move, pending ACCC approval, aims to strengthen Ampol’s position in the fast-growing e-mobility space.

What’s next for Ampol?

The focus remains on integrating the EG Australia acquisition and delivering synergy benefits, with early integration progressing to plan. The Ultra Low Sulfur Fuels project is on track for commissioning in early 2027.

While market conditions remain supportive—particularly due to regional refining margins and favourable supply—Ampol is also positioning itself for growth in areas such as electric vehicle charging, bolstering its resilience against future industry shifts.

Ampol Limited share price snapshot

Over the past 12 months, Ampol shares have risen 45%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has fallen 2% over the same period.

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The post Ampol posts 3Q26 EBIT growth and surging refinery margins 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 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.

The New Hope Corporation Ltd (ASX: NHC) share price is in focus today after announcing plans to acquire all outstanding shares of Malabar Resources Limited via a recommended scheme of arrangement. This merger will create a combined group with a pro forma market capitalisation of around $6.3 billion and is expected to deliver up to 19 million tonnes of saleable coal production per year.

What did New Hope report?

• New Hope will acquire all Malabar shares it doesn’t already own, via a scheme of arrangement.
• Malabar shareholders to receive 0.500 New Hope shares for each Malabar share, valued at $2.92 per Malabar share (based on New Hope’s 16 October 2026 closing price).
• Implied equity value of $1.8 billion for Malabar and a combined group market cap of about $6.3 billion.
• Malabar shareholders will hold approximately 21% and New Hope shareholders about 79% of the combined group.
• The deal is unanimously supported by both boards, subject to standard approvals.
• Scheme implementation is targeted by March 2027, pending necessary approvals.

What else do investors need to know?

The merger brings together three high-quality coal operations, consolidating Malabar’s Maxwell Mine with New Hope’s portfolio. The transaction allows Malabar shareholders to swap their unlisted shares for liquid ASX-listed New Hope shares, providing them with greater flexibility and ongoing exposure to the growing Maxwell Mine.

On completion, Malabar’s nominees Wayne Seabrook and Tony Haggarty will join the New Hope Board. This will ensure the group retains strong underground mining know-how and helps facilitate a smoother integration. The combined entity also plans to refinance Malabar’s debt, aiming to unlock further value through enhanced scale and improved capital access.

What did New Hope management say?

New Hope CEO Rob Bishop commented:

This transaction provides a clear pathway to unlock the full value of the Maxwell Mine for both shareholder groups. For New Hope shareholders, this on-strategy transaction brings 100% of the Maxwell Mine into the New Hope portfolio, at compelling and accretive terms.

What’s next for New Hope?

The scheme now needs approval from Malabar shareholders, the court, regulators, and Japan’s Fair Trade Commission. If these are granted, implementation is expected by March 2027. Both companies will focus on blending their strengths—New Hope’s operating and financial capability with Malabar’s project and underground mining experience—to ramp up production at Maxwell and explore further regional opportunities.

For Malabar shareholders, the move provides liquidity, exposure to a broader coal asset base, and the possibility of continued dividends, while New Hope shareholders gain 100% control of a large-scale, long-life underground mine.

New Hope share price snapshot

Over the past 12 months, New Hope shares have risen 47%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

View Original Announcement

The post New Hope to create $6.3bn coal group with Malabar merger 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 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.

The South32 Ltd (ASX: S32) share price is in focus today after the company maintained its FY27 production guidance across all operations, increased net cash to US$297 million, and delivered strong growth in base metals output.

What did South32 report?

• FY27 production guidance remains unchanged for all operations.
• Net cash rose by US$14 million to US$297 million after a US$153 million distribution from Sierra Gorda.
• Sierra Gorda copper equivalent production increased by 11% to 22.4kt in the September 2026 quarter.
• Manganese production rose 14% as operations benefitted from improved conditions in Australia and South Africa.
• Cannington’s zinc equivalent production decreased by 27% due to temporary lower mining rates but was offset by processing low-grade stockpiles.
• A fully-franked ordinary dividend of US$242 million was paid for the June 2026 half year, after the quarter close.

What else do investors need to know?

South32 has kept its FY27 production guidance steady across all sites, signalling consistent operational expectations. The company made progress on key development milestones, including advancing the Taylor zinc-lead-silver project at Hermosa and starting the fourth grinding line at Sierra Gorda, which aims to boost copper output by 25% in future years.

Shareholders approved the sale of South32’s aluminium value chain assets to Alcoa at the October AGM, with completion expected in the June 2027 half, pending regulatory approvals. This move will position South32 as a focused upstream base metals company with long-term growth opportunities.

What did South32 management say?

South32 Chief Executive Officer, Matt Daley, said:

We’ve made a positive start to FY27, maintaining production guidance across all our operations and achieving key development milestones for our copper and zinc growth projects… The transaction [sale of aluminium assets] will reposition South32 as a leading upstream base metals focused company with high-margin assets and transformational growth.

What’s next for South32?

Looking ahead, South32 will continue to invest in expanding its base metals portfolio, including growth capital at Hermosa and ongoing development at Sierra Gorda. Upgrades at Cannington are expected to support higher mining rates as the year progresses.

The pending sale of aluminium assets will further concentrate South32’s business on copper, zinc, and manganese. Ongoing capital management, including the share buy-back and dividend payments, remains a priority as the group looks to deliver value to shareholders.

South32 share price snapshot

Over the past 12 months, South32 shares have risen 48%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

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The post South32 sustains FY27 guidance while boosting base metals and cash position 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 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.

The Pro Medicus Ltd (ASX: PME) share price is in focus today after the company announced a significant seven-year, A$24 million contract win with Billings Clinic – Logan Health in the United States.

What did Pro Medicus report?

• Secured a 7-year, A$24 million deal with Billings Clinic – Logan Health
• Contract covers deployment of Visage 7 Viewer, Workflow, and Open Archive solutions
• Cloud-based implementation planned, supporting digital transformation for the client
• Migrating legacy image archives to the Visage 7 Open Archive platform
• Agreement operates on a transaction-based model, with potential for further upside

What else do investors need to know?

Billings Clinic – Logan Health is a leading not-for-profit healthcare provider across Montana and the surrounding region, operating 25 hospitals and over 1,000 beds. This contract reflects Pro Medicus’s strong reputation for delivering scalable and innovative cloud-based imaging solutions.

The implementation will see Visage 7’s entire platform integrated, including image distribution within the client’s electronic health record system. Rollout planning is underway, aiming for a go-live date in early 2027.

What did Pro Medicus management say?

Pro Medicus CEO Dr Sam Hupert said:

Billings Clinic – Logan Health provides comprehensive community-focused care to patients across a broad, multi-state, rural area. They join an ever-growing list of Visage 7 clients to opt for our fully cloud-based platform, which, as a result of our CloudPACS strategy, is becoming the standard in the North American healthcare IT market.

What’s next for Pro Medicus?

Pro Medicus will begin planning for the rollout with its proven cloud-based implementation processes. The company continues to report strong interest in its solutions, with management pointing to a robust North American sales pipeline spanning all market segments.

This deal supports Pro Medicus’s broader strategy of expanding its North American footprint and reinforces its position as a leading healthcare imaging provider with widespread cloud adoption.

Pro Medicus share price snapshot

Over the past 12 months, Pro Medicus shares have declined 39%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

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The post Pro Medicus signs A$24M US deal 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 recommended Pro Medicus. 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. 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.

Certain ASX blue-chip shares are excellent contenders for passive income given their pleasing dividend yields.

Strength and stability are reassuring factors for investors seeking a strong dividend each year, even through tougher economic conditions.

With that in mind, I want to highlight the two stocks below as contenders for passive income.

Charter Hall Long WALE REIT (ASX: CLW)

Rental income is predictable and locked in thanks to the terms of lease agreements. This makes certain real estate investment trusts (REITs) very attractive.

Charter Hall Long WALE REIT has a diversified portfolio of properties. Within that portfolio are long-term leases.

It has a weighted average lease expiry (WALE) of around nine years, which is a long time and provides significant rental security.

The REIT has an occupancy rate of around 100%. Approximately 99% of the portfolio is leased to blue-chip tenants such as government entities, Endeavour Group Ltd (ASX: EDV), Telstra Group Ltd (ASX: TLS), BP, Coles Group Ltd (ASX: COL), Metcash Ltd (ASX: MTS), David Jones, Westpac Banking Corp (ASX: WBC), Arnott’s Group and Sonic Healthcare Ltd (ASX: SHL).

It’s those sorts of tenants that can provide investors with commendable reliability during all economic conditions.

I like the areas of the commercial market the REIT is invested in, including hotels, grocery and distribution, telecommunications exchanges, data centres, service stations food manufacturing, healthcare and more.

Despite the headwind of higher interest rates, the ASX blue-chip share is expected to maintain its operating earnings per security (EPS) of 25.5 cents in FY27. The business plans to pay a 100% distribution payout ratio, so the distribution is also expected to be 25.5 cents per security.

The likely payout for the 2027 financial year translates into a forward distribution yield of 7.8%.

Australian United Investment Company Ltd (ASX: AUI)

Another ASX blue-chip share that looks compelling is this listed investment company (LIC) with a long history of paying dividends.

It was founded in 1953 and it invests in both ASX shares and international shares. It aims to provide sustainable dividend income over the long-term.

At the end of September 2026, its largest holdings were Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), CSL Ltd (ASX: CSL), ANZ Group Holdings Ltd (ASX: ANZ), Wesfarmers Ltd (ASX: WES), Westpac Banking Corp (ASX: WBC), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and Transurban Group (ASX: TCL).

The LIC has an incredibly low management expense ratio of 0.09% which is one of the lowest-costing portfolios in Australia.

The ASX blue-chip share has paid a dividend every year since its listing in 1974 and has maintained or increased its dividend each year since 1994.

In FY27, it plans to pay 37 cents per share of ordinary dividends and a special dividend of 8 cents per share. The total dividend per share of 45 cents translates into a grossed-up dividend yield of 5.4%, including franking credits, at the time of writing.

It currently trades at a 14% discount to the net tangible asset (NTA) per share, as of September 2026. This discount makes the valuation look attractive to me.

The post 2 ASX blue-chip shares offering large dividend yields appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Transurban Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group, Transurban Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended BHP Group, CSL, Sonic Healthcare, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are in the market for some new portfolio additions, it could be worth seeing what the team at Bell Potter is saying about the three ASX shares in this article. 

Does the broker rate them as buys, holds, or sells? Let’s find out:

Mesoblast Ltd (ASX: MSB)

Bell Potter notes that this biotechnology company released its quarterly update and revealed Ryoncil sales of US$28 million, which was well short of its forecast of US$40 million.

However, it points out that revenues were adversely impacted by low patient numbers across the summer months, with the low point in August.

As a result, the broker remains positive and has retained its buy rating on Mesoblast shares with a slightly trimmed price target of $4.40. It said:

The miss on September quarter revenues requires a downgrade to the forecast for FY27 Ryoncil revenues. The forecast is lowered by 18% ($243m to $203m) with the NPAT reduced by a similar quantum to $26.7m. The FY28 revenue forecast is reduced by 7%, however, there are no changes to the long-term outlook. Price target is reduced to $4.40.

PLS Group Ltd (ASX: PLS)

Bell Potter has also been looking at lithium giant PLS Group. It highlights that the company has announced plans to double Pilgangoora nameplate spodumene concentrate capacity to 2Mtpa. 

A feasibility study outlined development capex of $1.9 billion, with an incremental net present value (8% discount rate) of $2.7 billion.

In response, the broker has retained its buy rating on PLS shares with a trimmed price target of $4.10. It said:

While P2000 introduces medium-term execution risk, completion will meaningfully strengthen PLS’ long-term position as a large, low-cost hard-rock lithium producer. The company retains offtake optionality with ~50% of FY30 expected SC production of 2Mtpa uncontracted. Colina development studies are progressing, providing additional organic growth optionality in markets with strong underlying demand fundamentals from EV adoption and BESS deployment.

Seek Ltd (ASX: SEK)

The broker isn’t quite as positive on this job listings company’s shares. 

However, it was pleased to see that Seek’s job ad volume index slowed its annual rate of decline to -3.5% in September (Aug -5.3%). It also printed a third consecutive non-negative month on month number.

In response to the news, the broker has retained its hold rating on Seek shares with an improved price target of $13.60. It said:

We await a positive shift in sentiment or further visibility on jobs volumes recovery; potential near term Growth Fund monetisation remains an asymmetric upside risk, though the current interest rate backdrop may also be an additional headwind in seeking a desired exit price for nominated assets. 

SEK appears to be improving operations to sustainably target 10% yield growth on top of strong cost controls, however, despite trading at deep value ex. Growth Fund, macro-based headwinds suggest difficult sentiment near-term for the stock. Maintain Hold.

The post Buy, hold, sell: Mesoblast, PLS, and SEEK shares 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.

If you are looking for new additions to your portfolio, then it could be worth listening to what analysts are saying about the top ASX shares named below, courtesy of The Bull. 

Here’s what they are recommending this week:

Ramelius Resources Ltd (ASX: RMS)

The team at Fairmont Equities thinks this gold miner could be an ASX share to buy this week.

It likes Ramelius Resources due to its belief that gold stocks will rally higher due to strong gold prices. It said:

Gold prices appear to have bottomed after trading much higher in early 2026. The share prices of various gold mining stocks have held up well, and this sign of strength is bullish. I’m expecting gold mining stock prices to rally higher from here as they follow potentially higher gold prices. 

RMS is an Australian gold producer with no debt and strong free cash flow. It pays a fully franked dividend and has been buying back shares. RMS is highly leveraged to an increasing gold price and the company’s outlook is bright.

Sigma Healthcare Ltd (ASX: SIG)

Over at Baker Young, it has named Chemist Warehouse owner Sigma Healthcare as an ASX share to buy.

Baker Young sees an opportunity for investors after recent share price weakness. It explains:

Sigma Healthcare is a wholesale distributer of pharmaceutical goods and medicines. Sigma merged with pharmaceutical retail giant Chemist Warehouse in 2025. The company’s share price has retreated to appealing entry levels at October 15. Its competitive position remains unrivalled, in our view. Structural health trends should continue to support organic growth. 

Although some competition is likely, the GLP-1 weight loss drug rollout should boost treatment sales. The Chemist Warehouse branded store network is forecast to generate double digit, like-for-like sales growth in full year 2027.

Xero Ltd (ASX: XRO)

Baker Young is also feeling positive about cloud accounting platform provider Xero and thinks it could be an ASX share to buy now.

It sees the material decline in the Xero share price as a buying opportunity for investors. Especially given its view that small to medium sized businesses will continue to use accounting and payment software rather than using AI to develop their own systems. It explains:

Xero is an accounting software provider. Concerns about future growth rates due to perceived competitive threats from AI tools remain. But we believe the material decline in XRO’s share price amid the company continuing to deliver operational performance inline or above market guidance has created a compelling value opportunity. 

We believe small to medium sized firms handling critical financial information will continue using trusted third party suppliers rather than develop their own systems. XRO’s strong growth rates justify higher than average multiples, in our view. We’re comfortable building positions for longer term investors around current levels.

The post Experts name 3 top ASX shares to buy this week appeared first on The Motley Fool Australia.

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