Category: Stock Market

ASX dividend shares can be a great place to look for passive income.

But not all dividend shares are created equal. The best income options usually have dependable earnings, strong market positions, and the ability to keep rewarding shareholders through different market conditions.

With that in mind, here are three ASX dividend shares that are rated as buys by analysts and could be worth a closer look.

Cedar Woods Properties Ltd (ASX: CWP)

Cedar Woods Properties is an ASX dividend share that could appeal to income investors.

The property developer has a diversified portfolio of residential communities, townhouses, apartments, and commercial projects across Australia. This gives it exposure to long-term demand for housing, particularly in markets where population growth and housing shortages remain important themes.

Bell Potter is bullish and expects Cedar Woods to pay dividends of 38 cents per share in FY 2026 and 41 cents per share in FY 2027. Based on its current share price of $6.84, this represents dividend yields of 5.5% and 6%, respectively.

The broker has a buy rating and $9.65 price target on its shares.

Lottery Corporation Ltd (ASX: TLC)

Another ASX dividend share that could be a top pick is Lottery Corporation.

It operates lotteries and Keno across Australia, giving it exposure to a highly cash-generative and relatively defensive form of consumer spending. While jackpot activity can influence short-term performance, lotteries have historically shown resilience through different economic conditions.

That defensive profile can be attractive for income investors. The company benefits from well-known brands, large customer reach, and exclusive or long-dated licences in key markets. These characteristics can support strong cash generation, which is important for dividends.

The team at UBS believes this will underpin fully franked dividends of 17 cents per share in FY 2026 and then 21 cents per share in FY 2027. Based on its current share price of $5.34, this would mean dividend yields of 3.2% and 3.9%, respectively.

UBS has a buy rating and $6.35 price target on its shares.

Telstra Group Ltd (ASX: TLS)

Telstra remains one of the most popular ASX dividend shares for income investors and it isn’t hard to see why.

The telco giant has a defensive earnings profile, supported by millions of mobile, broadband, and enterprise customers across Australia. Its services are essential for households and businesses, which gives the company a level of resilience that many other businesses do not have.

The mobile division is the key growth driver. Telstra has the largest mobile network in Australia and continues to benefit from strong demand for data, connectivity, price increases, and premium network coverage. This has been supporting steady earnings growth and cash flow generation.

Morgan Stanley expects this to lead to franked dividends of 20 cents per share in FY 2026 and then 21 cents per share in FY 2027. Based on its current share price of $5.23, this represents dividend yields of 3.8% and 4%, respectively.

The broker has an overweight rating and $5.40 price target on its shares.

The post Why Telstra and these ASX dividend shares could be top buys for income appeared first on The Motley Fool Australia.

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• 2 ASX dividend shares I’d buy for reliable passive income
• Telstra shares fall 6% from a multi-year high: What happened, and is it time to sell up?
• How much is needed in superannuation to target a $3,000 monthly passive income?
• Why these ASX real estate stocks could be sleeping giants
• How to start investing in ASX shares in 2026

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

ASX energy share Elixir Energy Ltd (ASX: EXR) has been making its longer-term stockholders very happy of late.

How happy?

Well, a year ago, you could have picked up Elixir Energy shares at an intraday low of 2.9 cents each.

In afternoon trade on Wednesday, those same shares were changing hands for 11.5 cents apiece. That sees the ASX energy shares up a whopping 296.6% over the past 12 months.

Or enough to turn a $10,000 investment into $39,655.

To put that performance into some context, the S&P/ASX Small Ordinaries Index (ASX: XSO) is up 8.7% since this time last year.

And according to the team at Euroz Hartleys, Elixir Energy – which counts as the largest acreage holder in the Taroom Trough, located in Queensland’s Bowen Basin – is well placed to keep charging higher in the months ahead.

Here’s why.

ASX energy share tapping into Queensland’s gas riches

On 18 May, Elixir Energy released an update on the flow testing operations of its Diona-1 exploration well in the Bowen Basin.

The ASX energy shares said the tests from the well proved a recoverable gas and condensate resource, an over pressured system, and low impurity hydrocarbon composition.

Commenting on the results, Elixir Energy CEO Stuart Nicholls said:

This unoptimised vertical exploration well continues to show encouraging results and flows which may improve significantly once back pressure is reduced sufficiently from the remaining stimulation fluids.

Given the proximity to the pipeline, it is worth persisting in pursuit of this objective whilst working on the booking of a new Contingent Resource which reflects the success of the campaign to date.

Euroz Hartley said Elixir’s update was “broadly positive”.

“We view this as a constructive update for EXR, but not yet a commercial flow-rate outcome,” the broker said.

Euroz Hartley noted:

The main near-term catalyst remains EXR’s Lorelle-3H flow test, which sits in the core Taroom Trough fairway and is expected to use an optimised horizontal well and frac design, consistent with Shell’s approach next door.

As for last week’s Diona-1 well update, the broker said:

The key positive from this announcement is that Diona appears to extend the Taroom Trough play beyond where it was previously considered to sit, increasing the project’s strategic relevance and potential resource footprint.

The inclusion of the Diona sub-block increases the Taroom Trough acreage position by a further net 184km2 / 45k acres, taking the total position to 548k net acres and representing a basin-leading position within the Taroom Trough.

Connecting the dots, the broker maintained its speculative buy rating on the ASX energy share with a price target of 28 cents a share.

That represents a potential upside of more than 143% from Elixir Energy’s share price on Wednesday afternoon.

The post This ASX energy share has rocketed 297% in a year. Here’s why it’s forecast to more than double your money again appeared first on The Motley Fool Australia.

More reading

• 3 amazing ASX ETFs that could be perfect for beginners
• Why Wesfarmers shares remain the gold standard of ASX retail investing
• 2 ASX dividend shares I’d buy for reliable passive income
• Why Telstra and these ASX dividend shares could be top buys for income
• This ASX bank ETF has a 5.2% dividend yield right now

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.

There are many exchange-traded funds (ETFS) listed on the ASX. These range from broad-based index funds like the iShares S&P 500 ETF (ASX: IVV) and the Vanguard Australian Shares Index ETF (ASX: VAS) to niche and thematic ETFs like the BetaShares Crude Oil Index Complex ETF (ASX: OOO) and the Global X Hydrogen ETF (ASX: HGEN).

Saying that, if you are looking for an ETF that offers up a dividend yield greater than 4% today, your choices are far more nuanced. In fact, only a handful of funds still offer yields of that size. Even the broad-based index funds, long famed for their fat dividends, aren’t in that ballpark. VAS, for example, currently trades on a trailing yield of 3.14% (as of yesterday’s closing price).

That’s why, if you’re an investor who prioritises maximising dividend cash flow above all else, you may wish to consider the VanEck Australian Banks ETF (ASX: MVB) today.

This is a very simple ASX ETF. As its name implies, MVB gives investors access to an underlying portfolio of ASX bank shares. It keeps things simple, with just seven bank stocks in its portfolio at present. As one might expect, the big four are all there, and take up a lot of room.

Which ASX bank shares are in this dividend ETF?

As it currently stands, Commonwealth Bank of Australia (ASX: CBA) shares are at the top of the pile, taking up about 20% of MVB’s portfolio. ANZ Group Holdings Ltd (ASX: ANZ) is next, contributing 19.9%, followed by Westpac Banking Corp (ASX: WBC)’s 18.9%.

National Australia Bank Ltd (ASX: NAB) accounts for a further 17%.

Then we have two of the ASX’s smaller bank shares. Bendigo and Adelaide Bank Ltd (ASX: BEN) and Bank of Queensland Ltd (ASX: BOQ) are the smallest holdings in the VanEck Australian Banks ETF.

That’s six. So what about number seven? Well, that would be the ASX’s ‘fifth bank’, the millionaire’s factory, also more formally known as Macquarie Group Ltd (ASX: MQG). Macquarie, although not a pure bank, is MVB’s largest holding, making up 21.4% of the entire portfolio.

As such, the VanEck Australian Banks ETF can be thought of as a ‘seven-for-the-price-of-one’ investment in the Australian financial sector.

But let’s talk dividends.

Over the past 12 months, investors have received four dividend distributions from MVB. These total $2.19 per unit. At the last MVB unit price of $42.52, that gives the VanEck Australian Banks ETF a trailing dividend distribution yield of 5.15%. Those came with an average franking level of 91%.

There’s no guarantee buying MVB units today will secure you that kind of yield going forward, of course. No ASX dividend share or ETF can promise that. However, given the high levels of income ASX bank shares tend to pay out, I’d be surprised if this ETF didn’t remain a reliable source of income for the foreseeable future.

The post This ASX bank ETF has a 5.2% dividend yield right now appeared first on The Motley Fool Australia.

More reading

• 3 amazing ASX ETFs that could be perfect for beginners
• How I’d invest $20,000 in ASX shares before the end of FY26
• 3 ASX shares that could build serious wealth for shareholders
• ASX 200 rises as inflation surprise leaves investors with one big question
• Top brokers name 3 ASX shares to buy now

Motley Fool contributor Sebastian Bowen has positions in Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank and Macquarie Group. The Motley Fool Australia has recommended iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A 10-year investment horizon changes the way investors look at ASX 200 shares.

Short-term earnings volatility, market sentiment, and valuation swings are still important. But over a decade, the bigger question is whether a business is becoming more important to its customers, expanding its market opportunity, and building a stronger competitive position.

Two ASX 200 shares that could fit that description are listed below.

Netwealth Group Ltd (ASX: NWL)

The first ASX 200 share to look at is Netwealth.

Netwealth operates an investment platform used by financial advisers, wealth managers, and their clients.

What makes Netwealth stand out is the way wealth management is becoming more digital, personalised, and data-driven. Advisers are increasingly expected to do more for clients, with better reporting, greater transparency, and more efficient portfolio administration.

That makes the platform layer very important. A good platform does not just hold investments. It can become the operating system that helps advisers manage client relationships, investment choices, reporting, tax information, and administration.

Netwealth has built its reputation by being nimble, adviser-focused, and technology-led. That gives it room to keep improving its offering as client expectations rise and financial advice becomes more complex.

The business will still face competition from other platforms and pressure to keep investing in technology. Market weakness can also slow funds growth. But over 10 years, a strong platform with loyal adviser relationships could become a much larger business.

Bell Potter is a fan and currently has a buy rating and $30.00 price target on Netwealth’s shares. This implies potential upside of 36% from current levels.

NextDC Ltd (ASX: NXT)

Another ASX 200 share that could be worth buying and holding is NextDC.

It develops and operates data centres, which are becoming increasingly important as businesses shift more workloads to the cloud, adopt artificial intelligence tools, and store larger amounts of data.

This is not a passing trend. Digital infrastructure is becoming essential infrastructure. Companies need secure, reliable, and scalable places to house their computing power and connect to cloud providers, networks, and technology partners.

NextDC is positioned right in the middle of that demand. Its facilities serve customers that need high-performance data centre capacity, and the company has been investing heavily to expand its footprint.

That investment can weigh on near-term earnings and cash flow, so this is not a low-risk option. Data centres are capital-intensive, and expectations are high.

Even so, the long-term demand picture remains attractive. If data usage and AI workloads continue to grow, NextDC could be one of the ASX’s clearest ways to gain exposure to the infrastructure behind the digital economy.

Ord Minnett is very positive on the company’s outlook. It currently rates NextDC shares as a buy with a $21.50 price target. This offers 40% upside based on its current share price.

The post 2 of the best ASX 200 shares to buy and hold for 10 years appeared first on The Motley Fool Australia.

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• Up 29% since April, should you buy NextDC shares today?

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

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was on form and charged higher. The benchmark index rose 0.7% to 8,717.7 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set for a poor session on Thursday despite a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 45 points or 0.5% lower this morning. In the United States, the Dow Jones was up 0.4%, the S&P 500 edged slightly higher, and the Nasdaq rose 0.1%.

Buy Nufarm shares

Nufarm Ltd (ASX: NUF) shares rocketed almost 14% on Wednesday following the release of the agricultural chemicals company’s results. Bell Potter believes there is more to come. This morning, the broker has retained its buy rating and $3.60 price target on Nufarm shares. It said: “Our Buy rating is unchanged. NUF is executing on its cost out initiatives ($32m of the $50m FY26e target achieved and a $50m target in FY27-28e) with a more favourable backdrop in crop protection markets and omega-3 (a doubling in fishoil pricing). Despite this NUF trades at a ~25% discount to global crop protection and seed peers.”

Oil prices sink

ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) could have a poor session on Thursday after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 4.75% to US$89.42 a barrel and the Brent crude oil price is down 4.7% to US$94.93 a barrel. Traders were selling oil after the US stated that it would give Iran peace talks “every chance to succeed.”

Buy Eagers shares

Bell Potter remains bullish on Eagers Automotive Ltd (ASX: APE) shares. In response to its annual general meeting, the broker has retained its buy rating with a trimmed price target of $28.75 (from $29.25). It said: “There are no changes in the key assumptions we apply in each of the valuations used to determine our target price – 22.5x and 7.5x multiples in the PE ratio and EV/EBITDA and an 8.7% WACC in the DCF. The net result is a 2% decrease in our target price to $28.75 which has been driven by the earnings downgrades. This is still >15% premium to the share price so we maintain our BUY recommendation. Focus now perhaps shifts to vehicle deliveries in May and June – May should be out late next week – given these are two of the biggest months of the year and, as Eagers said, the company generates 20-25% of full year profit in these two months.”

Gold price falls

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Thursday after the gold price fell overnight. According to CNBC, the gold futures price is down 1% to US$4,456.2 an ounce. Increasing interest rate hike bets sent gold down to a two-month low.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

• Are Nufarm shares a buy, hold or sell after jumping 13% on half-year results?
• Santos shares just hit a four-year high. Here’s why they could keep rising.
• Here are the top 10 ASX 200 shares today
• ASX 200 rises as inflation surprise leaves investors with one big question
• Top brokers name 3 ASX shares to buy now

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. 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 Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A new report from Betashares has revealed the sectors and themes that are emerging in the current geopolitical climate. 

According to Tom Wickenden, Investment Strategist at Betashares, geopolitics is now a structural driver of asset prices.

The short-term threat is the hit to global growth and the inflationary pressure from higher oil prices.

Given the recency of the shock, its impact will only show up in hard economic data with a lag. Put simply, the longer the war runs, the greater the risk of global recession. Our base case assumption remains a timely de-escalation without a severe shock to the global economy.

In yesterday’s report, Betashares identified three ASX ETFs that could be ideal investments in today’s climate. 

Betashares Global Defence ETF (ASX: ARMR)

According to Betashares, global defence stocks have been among the best performing since the start of Trump’s second presidential term. 

In April of 2026 the US proposed a US$1.5 trillion defence budget for FY27. This is the largest in history and a 50% increase on FY26.

Across the Atlantic, Europe’s defence priorities are also accelerating. 

EU defence spending is projected to rise from €218 billion in 2021 to €392 billion in 2025.

The direction of travel is clear, and defence contractors globally could be structural beneficiaries and a potential hedge to geopolitical threats that can cause broader equity market disruption.

The Global Defence ETF from Betashares provides a simple way to gain exposure to the potential long term structural growth in the global defence sector.

It currently holds 13 of the top 20 defence contractors in the world by defence revenue. 

Betashares Global Uranium ETF (ASX: URNM)

The Betashares report said the Iran conflict has now re-ignited energy self-sufficiency concerns globally. 

As governments reassess their baseload power (the minimum level of electricity a grid needs around the clock) and seek to reduce dependence on hostile suppliers, nuclear energy has re-emerged as a cornerstone of the solution.

With nuclear increasingly recognised as essential for energy independence, decarbonisation and AI-driven electricity demand, the uranium supply chain may be entering a period where demand outpaces supply, which could favour producers in allied nations.

An ideal allocation for investors looking to target this theme is the Global Uranium ETF. 

It provides exposure to a portfolio of global companies involved in the mining, exploration, development and production of uranium. It also includes companies that hold physical uranium or uranium royalties.

Betashares Energy Transition Metals ETF (ASX: XMET)

Critical minerals, inputs essential for AI data centres, EVs, renewable energy and defence technology, are at the intersection of future technologies and geopolitics.

According to Betashares, renewed focus on diversifying away from Chinese dependence is leading to increased investment from Australia, the US and others. 

Both the US and Australia have established strategic mineral reserves, and the latest US defence budget dramatically expands investment in domestic critical mineral supply chains. Selected producers from allied nations, Australia, Canada, Peru and Chile, could be well positioned to benefit from this government-backed push for supply chain resilience.

XMET ETF provides Australian investors with targeted exposure to global companies at the heart of the critical minerals supply chain.

The post 3 ASX ETFs positioned to outperform in today’s uncertain geopolitical climate appeared first on The Motley Fool Australia.

More reading

• The top 3 Betashares ASX ETFs over the past year
• Why this ASX defence ETF keeps attracting investor attention
• Where to invest $5,000 in ASX ETFs this month

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.

Nufarm Ltd (ASX: NUF) shares were making headlines yesterday after the ASX materials stock soared 13% in a single session. 

Investors were gobbling up Nufarm shares after releasing its FY 2026 half-year results.

What did Nufarm report?

For the half year ended 31 March 2026, it reported: 

• Statutory Net Profit After Tax $38 million, up 28% on the prior corresponding period (pcp)
• Underlying NPAT (uNPAT) $52 million, up 35% on pcp
• Underlying EBITDA (uEBITDA) $243 million, up 18% on pcp
• $193 million improvement on pcp in free cash flow
• Net debt $1.23 billion, a reduction of $135 million on pcp
• Net debt to uEBITDA for twelve months to 31 March 2026 of 3.6x, a 20% reduction on pcp
• FY26 Outlook for uEBITDA and Leverage reaffirmed.

Commenting on the announcement, Nufarm CEO Rico Christensen said 

We are pleased with first half performance and are well placed to deliver strong growth in underlying earnings and a significant reduction in leverage for the full year, consistent with previous guidance. 

We have made clear progress on the priorities we set in November last year, delivering earnings growth, improved cash flow and a reduction in leverage. The benefit of our increased strategic focus is visible in the margin improvement in Crop Protection and significant uplift in earnings from our Seed Technologies business.

Bell Potter weighs in 

Following this result, the team at Bell Potter issued updated guidance on Nufarm shares. 

Nufarm is one of the world’s leading developers and manufacturers of seeds and crop protection solutions.

The broker noted that the company’s Seeds business was a standout performer during the half. 

EBITDA more than doubled to $58 million, helped by significantly smaller losses in the omega-3 platform business.

Cash flow also improved compared with the prior year, and net debt declined to around $1.09 billion excluding leases. Debt levels finished the period in line with management guidance.

Looking ahead, management remains confident about FY26. 

The company expects strong earnings growth, supported by continued improvement in crop protection and further growth in the Seeds business. 

Nufarm is also progressing with its cost-saving program, targeting $50 million in annual savings by the end of FY26, with an additional $50 million reduction plan for FY27–28.

Upside in tact 

Based on this guidance, the team at Bell Potter retained their buy recommendation and $3.60 price target on Nufarm shares. 

From yesterday’s closing price of $2.91, this indicates an upside potential of almost 24%. 

NUF is executing on its cost out initiatives ($32m of the $50m FY26e target achieved and a $50m target in FY27-28e) with a more favourable backdrop in crop protection markets and omega-3 (a doubling in fishoil pricing). Despite this NUF trades at a ~25% discount to global crop protection and seed peers.

The post Are Nufarm shares a buy, hold or sell after jumping 13% on half-year results? appeared first on The Motley Fool Australia.

More reading

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• Nufarm shares jump 11% as turnaround signs continue
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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.

Santos Ltd (ASX: STO) shares reached a four-year high last Friday, and are up around 28% for the year to date.

On Tuesday, the company held its annual Investor Briefing Day in Sydney.

The headlines coming out of that event did not disappoint.

Here is what investors need to know about the Santos shares story right now.

Three things Santos told the market

The Briefing Day centred on three key messages.

First, the Barossa LNG project is currently producing at 75% of its planned 2026 production rates, with plateau production targeted before year end.

This is the most important near-term earnings driver Santos has, and it is tracking on schedule.

Second, management outlined a cost reduction framework targeting higher free cash flow margins as production grows.

Third, Santos confirmed first oil from its Pikka Phase 1 development in Alaska in late May 2026, with ramp-up expected to continue over the coming weeks.

Together these milestones mark a clear shift.

Santos is moving away from being a company spending heavily on major capital projects to one collecting the returns from them.

That transition is exactly what investors have been waiting for.

The oil price is doing the rest

Oil prices surged above US$105 per barrel in 2026 on Middle East tensions.

Every dollar rise in the oil price flows almost directly into Santos’ revenue.

In Q1 2026, Santos reported sales revenue of $1.27 billion, up 3% on the prior quarter, driven by stronger crude oil prices and higher LNG volumes.

Management reaffirmed full-year production and cost guidance, which removed a key uncertainty investors had been watching.

But the shares pulled back on Tuesday

Despite the positive Briefing Day content, Santos shares fell 5% from their four-year high by Tuesday afternoon.

This has been attributed the move to profit-taking and a cooling oil price as markets began pricing in a possible US-Iran peace deal.

Oil prices dropped more than 6% on Monday on that news.

For context, Santos shares are still up more than 22% over the past twelve months even after Tuesday’s retreat.

The key risk

A US-Iran peace deal would reopen the Strait of Hormuz and push oil prices materially lower.

This is the single biggest near-term risk to the Santos investment thesis.

As a result, investors should watch Middle East developments closely.

Foolish takeaway

Santos shares are not as cheap as they were.

But a world-class LNG portfolio finally converting major capital projects to cash flow, an oil price above $100, and confirmed first production from Alaska is a powerful combination.

For investors who believe energy prices stay elevated, Santos remains one of the more interesting energy stories on the ASX today.

The post Santos shares just hit a four-year high. Here’s why they could keep rising. appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Top brokers name 3 ASX shares to buy now
• 5 things to watch on the ASX 200 on Wednesday
• Santos shares cool 5% from four-year high: Have they come off the boil, or is a rebound imminent?
• Buying Santos shares? Here’s how the company aims to cut spending and lift production

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.

With around a month left before the end of FY26, I think now could be a good time to put fresh money to work in ASX shares.

I would not rush just because the financial year is ending. The market will still be there in July. But if I had $20,000 ready to invest, I would use this period to add quality, global exposure, and long-term growth to my portfolio.

Here is how I would think about it.

I’d start with a global core

The first place I would look is an exchange-traded fund (ETF) with broad international exposure.

For me, the iShares S&P 500 AUD ETF (ASX: IVV) would be a strong candidate.

The IVV ETF gives investors exposure to America’s largest listed companies. I like that because the US market has a depth of world-class businesses that is difficult to replicate on the ASX alone.

This is not just about owning the biggest technology names. The S&P 500 includes companies across healthcare, financial services, consumer brands, industrials, digital platforms, payments, software, and communication services.

I’d consider a quality ASX blue chip

I would also look for direct exposure to a high-quality Australian business.

One ASX share I would consider is Macquarie Group Ltd (ASX: MQG).

Macquarie is not just a bank. It is a global financial group with exposure to asset management, infrastructure, commodities, markets, private capital, and the energy transition.

That makes earnings less predictable than a traditional domestic bank, but I think it also gives Macquarie more ways to grow over time.

I like businesses that can adapt as markets change. Macquarie has shown over many years that it can move capital and expertise into areas where it sees opportunity. That flexibility is valuable.

I’d keep room for an ASX tech stock

Finally, I would consider using part of the $20,000 to buy Xero Ltd (ASX: XRO) shares.

Xero has built a strong position in small business accounting software, but I think the bigger opportunity is broader than that.

It can help businesses with invoicing, payroll, tax, payments, cash flow, reporting, and more automated financial tasks over time.

The share price can be volatile, and investors still need to watch valuation and execution. But I think Xero has the sort of global software opportunity that can reward patience.

Foolish takeaway

If I were investing $20,000 before the end of FY26, I would focus on quality and long-term growth rather than trying to predict what the market will do over the next month.

A mix of global exposure, high-quality Australian businesses, and a world-class ASX tech stock would be my preference. That gives the portfolio several ways to grow without making the whole plan depend on one stock or one theme.

The end of the financial year can be a useful prompt to review a portfolio. But the real goal is much bigger than 30 June. I would want these investments working for me for years.

The post How I’d invest $20,000 in ASX shares before the end of FY26 appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares that could build serious wealth for shareholders
• 3 popular ASX 200 shares that experts rate as strong buys
• Top brokers name 3 ASX shares to buy now
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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 Macquarie Group, Xero, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Macquarie Group and Xero. The Motley Fool Australia has recommended iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) shares finished higher on Wednesday as investors weighed up fresh comments about China’s growing influence over iron ore pricing.

The mining giant ended the session up 1.54% to $61.28.

It has been a huge year already for shareholders. BHP shares are now up around 35% in 2026 and 59% over the past 12 months.

The stock is also trading close to the top of its 52-week range, which runs from $35.52 to $62.72.

So, what has put the ASX mining heavyweight back in focus?

China talks are getting tougher

According to The Australian, BHP’s WA iron ore boss, Tim Day, expects talks with China’s state-backed China Mineral Resources Group (CMRG) to get harder.

CMRG was created by Beijing to give Chinese steel mills more weight when negotiating iron ore deals.

That puts it in a strong position with Australian miners, given China is still the world’s biggest buyer of iron ore.

The report said Mr Day believes China now has more ability to push prices lower and secure better terms. He also said BHP had found the recent talks with CMRG difficult.

Chinese media said CMRG secured a 1.8% discount on iron ore from BHP. The same reports said the group also pushed the miner away from a previous index used to set prices.

Why buyers are still backing the rally

The tougher China backdrop hasn’t been enough to stop investors buying.

BHP’s share price reaction suggests the market is still more focused on the company’s scale, earnings power, and exposure to major commodities.

There may also be some relief that the earlier tensions have cooled between BHP and the Asian superpower.

Last year, there were concerns about China’s approach to BHP cargoes and how far the standoff could go. The latest comments suggest the talks are still difficult, but they are moving through the usual commercial channels.

The cost pressure isn’t going away

Mr Day said BHP is focused on what it can control, including keeping production costs down and improving productivity at its Western Australian operations.

The Pilbara remains one of the world’s most important iron ore regions, but it isn’t getting cheaper to operate there.

Miners are dealing with higher costs, union pressure, and ongoing demands to invest in lower-emissions equipment.

The Australian also reported that BlackRock portfolio manager Olivia Markham said Australia had lost some focus on productivity and that other places around the world were cheaper to operate.

That is the balance investors are now weighing.

BHP shares have had a massive run, and the market is still backing the stock. But the company is also facing tougher customers, a higher-cost operating base, and pressure to keep its Pilbara assets competitive.

The post BHP shares near 52-week high, but China just made things more complicated appeared first on The Motley Fool Australia.

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