Category: Stock Market

Treasury Wine Estates Ltd (ASX: TWE) shares crashed 9.29% to end the day at $4.98 per share on Wednesday afternoon. 

The drop means the shares have now fallen 12.87% over the past month and are a whopping 55.85% lower than this time last year. It’s been a relatively steady and consistent decline over the past 12 months too. It’s currently the worst performer on the ASX 200 Index.

What has happened to Treasury Wine Estates shares?

The company released an investor update and outlook for the first half of FY26 on Wednesday morning.

The struggling wine giant said that trading conditions have weakened in recent months, particularly in the US and China. And as a result, near term improvement is now considered unlikely. Its expectations for sales volume growth have also moderated.

The company also said that customer inventory levels in both markets are currently above optimal levels. In China, parallel import activity has also been disrupting pricing for its flagship Penfolds brand, prompting management to take decisive action.

Treasury Wine Estates now expects its earnings before interest and tax (EBIT) to be between $225 million and $235 million in the first half of FY26. Although it still anticipates better performance in the second half of the year. 

Clearly investors were unimpressed with the result and have sold off the stock ahead of any potential further downside.

Is there any upside ahead or is it time to sell the shares?

Despite the consistently dwindling share price, analysts are still remarkably optimistic about Treasury Wine Estates shares. Although this might change after yesterday’s announcement. I’d sit tight for now until the dust has settled but I’m quietly optimistic that the latest result is mostly priced-in by the market already.

Data shows that 8 out of 17 analysts have a buy or strong buy rating on the stock. Another 8 have a hold rating and 1 analyst has a strong sell rating. 

As it stands, some analysts still expect the share price to storm higher over the next 12 months too. The average target price is $7.37, which implies a potential 48.08% upside at the time of writing. Although this could be as high as $9.90, which implies a whopping 98.8% upside from the current trading price.

The team at Morgans recently confirmed its hold rating for the wine stock and set a $6.10 price target for the next 12 months. The broker noted earlier this month that it expected that the 1H FY26 result will be particularly weak and therefore the broker has made “large revisions to our forecasts and stress that earnings uncertainty remains high”.

The post Treasury Wine Estates shares slump 56% this year. Buying opportunity or time to sell up? appeared first on The Motley Fool Australia.

More reading

• Why DroneShield, Graincorp, Treasury Wine, and Woodside shares are sinking today
• Why are Treasury Wine shares crashing 17% today?
• Treasury Wine Estates’ cost-cut plan and outlook: What investors need to know
• 5 things to watch on the ASX 200 on Wednesday
• What can investors expect from Treasury Wines’ update tomorrow?

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

S&P/ASX 300 Index (ASX: XKO) lithium share Vulcan Energy Resources Ltd (ASX: VUL) enjoyed a strong run on Wednesday.

Amid a broader rally among global lithium miners, Vulcan Energy shares closed up 7.05% yesterday, trading for $3.95 apiece. The ASX 300, meanwhile, ended the day down 0.12%.

Longer term, Vulcan Energy shares remain down 18% since this time last year, underperforming the 3.67% 12-month gains posted by the benchmark index.

Looking to the year ahead, however, EnviroInvest’s Elio D’Amato believes Vulcan Energy will be much more rewarding for its shareholders (courtesy of The Bull).

Here’s why.

ASX 300 lithium share well-funded

“Vulcan recently secured a €2.2 billion ($A3.929 billion) financing package to fully fund phase one of its Lionheart project,” said D’Amato, who has a buy recommendation on the ASX 300 lithium share.

Lionheart, he explained, is “Europe’s first fully integrated, zero carbon lithium and renewable energy project”. Which is the second reason you may want to add Vulcan Energy shares to your buy list.

According to D’Amato:

Funding enables immediate construction. The package includes €1.185 billion in senior debt, €204 million in German government grants, €150 million from KfW, plus strategic equity from HOCHTIEF, Siemens and Demeter.

As for the third reason Vulcan Energy shares could outperform in the months ahead, D’Amato said, “Phase one targets 24,000 tonnes of lithium hydroxide per year. With funding risk removed and execution underway, VUL’s strategic positioning is materially stronger.”

A word from Vulcan Energy’s CEO

Vulcan Energy shares crashed 33.1% on 4 December, the day the ASX 300 lithium share emerged from the trading halt following its funding announcement.

However, investors weren’t selling the company because of the new funding secured via European government grants and senior debt.

Rather, Vulcan Energy separately announced that it had raised around $710 million via an institutional placement. Investors were favouring their sell buttons on the day, as the new shares were issued for $4 apiece, 34.7% below the last closing price.

But Vulcan Energy CEO Cris Moreno was unapologetic about the discounted capital raise.

“The placement will enable Vulcan to transition from development phase into execution phase with project execution of Project Lionheart due to commence in the coming days,” he said.

Moreno added that the ASX 300 lithium share is producing “a lighthouse project for Europe”.

According to Moreno:

Lionheart is set to redefine lithium production, delivering Europe’s first fully domestic and sustainable lithium value chain. It will also provide a clean and reliable source of renewable energy for local communities and industries in Germany’s Upper Rhine Valley.

The post 3 reasons to buy this ASX 300 lithium share today appeared first on The Motley Fool Australia.

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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 recommended Siemens Energy Ag. 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 real estate stock Cedar Woods Properties Ltd (ASX: CWP) drew significant investor attention yesterday. 

The Australian property development company saw its share price rise by an impressive 10% on Wednesday. 

This came on the back of positive guidance out of the company. 

Upgraded guidance 

Cedar Woods Properties upgraded its guidance for FY 2026 again, which marks the second time it has done so this year. 

In October, it upgraded the guidance for its FY26 profits to be 15% better than last year’s net profit, up from the previous guidance of 10%.

Yesterday, the company upgraded this once again, saying FY26 full-year profit is likely to come in “at least” 20% higher than the full-year result for FY25.

The real estate stock has seen its share price grow by more than 60% year to date. 

Bell Potter upgrades

Following the announcement, broker Bell Potter released a new report on this ASX real estate stock. 

The broker said the primary driver of this early upgrade is the acceleration of momentum across the portfolio nationally, with several projects delivering a full years’ worth of price growth within the first half, particularly across WA and QLD land projects. 

It also highlighted improved enquiry and sales volumes in Victoria. 

We believe the 1H skew (BPe 55%/45% 1H/2H) from the timing of settlements provided CWP with clarity and confidence to add a further +5% to earnings growth guidance. In our view, the 1Q upgrade was driven by strong conditions, and this further upgrade was driven by timing and visibility.

The broker also noted a positive outlook for the medium term. 

It said medium-term growth confidence has improved as Cedar Woods Properties’ expanding pipeline (around 30 projects contributing to FY27 earnings versus ~20 in FY25) and another six months of strong price growth are likely to drive better-than-expected revenues and margins. 

Management’s conservative guidance and focus on sustained, repeatable growth further supports confidence that the company can meet earnings growth expectations through FY27–FY28.

Upgraded price target 

Based on this guidance, Bell Potter maintained its buy recommendation on this ASX real estate stock. 

It also increased its price target to $10.00 (previously $9.70). 

From yesterday’s closing price of $8.80, this indicates a further upside of 13.64%. 

We increase our FY26-FY28 EPS estimates by +3% to +5%. We maintain our Buy recommendation on CWP and increase our price target by +3.1% to $10.00. In our view CWP is still undervalued by the market (SP -2.5% QTD despite +10% today), trading on 12.5x despite clear visibility for strong growth over the medium term (+13% 3yr EPS CAGR). 

The broker said there is potential for ASX 300 inclusion in March 2026. 

The post How does Bell Potter view this real estate stock after yesterday’s 10% rise? appeared first on The Motley Fool Australia.

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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.

When it comes to passive income, ASX dividend shares are a no-brainer for any investors’ portfolio.

By holding onto a quality stock for a long period of time, investors can benefit from the power of compounding and long-term business growth.

But finding ASX dividend shares which have grown their dividends consistently over a long period of time is harder than you’d think.

The Aussie sharemarket doesn’t have many “long-timers”, but the few that do exist have proven they can keep paying, and increasing, their dividends even amid market crashes, covid-incuded recessions and sharemarket lulls. 

Here are 5 ASX dividend shares with over 20 years of growth.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Soul Patts is Australian dividend royalty. The company has increased its annual ordinary dividend every year since 1998, which is the longest-running record of dividend growth on the ASX. That’s 27 years of consecutive dividend growth. 

The diversified Australian investment house pays its fully-franked dividends twice per year and has offered a consistent yield of 2.3% to 2.4% since 2016. In FY25, it paid a total $1.03 per share, 100% fully franked. 

APA Group (ASX: APA)

Energy infrastructure group APA is a quiet achiever when it comes to passive income. The gas and energy infrastructure pipeline owner and operator also hiked its out semi-annual dividends consistently for over 20 years. Its yield is usually much higher than the wider market, too, which makes it an appealing option for investors seeking an ongoing passive income.

In FY25, the company increased its annual dividend distribution by 1.8% to 57 cents per security. Dividend growth is never guaranteed to continue, but it looks like increases are likely for FY26 and beyond.  

Computershare Ltd (ASX: CPU)

Computershare has a history of paying consistent dividends to its shareholders and has not lowered its dividend payment for 25 years. The difference is that unlike Sol Patts and APA, there have been some years where Computershare has kept its dividend payment stable, meaning that while overall its dividends have generally been rising, there hasn’t been a strict 20+ number of year-on-year increases.

For FY25, the ASX dividend share has paid out a final dividend of 48 cents per share, and its total FY25 dividend was 93 cents, up 14.3%.

Sonic Healthcare (ASX: SHL)

In terms of the dividend, Sonic has grown its payout in most (not all) years over the past 30 years. There were a few years between 2010 and 2012 where the Aussie passive income stock maintained its dividend at 59 cents, although they’ve increased each year ever since.

The company paid a total total dividend of $1.07 per share in FY25, a 1% increase from FY24. This consisted of a 44-cent interim dividend paid in March 2025 and a 63-cent final dividend paid in September 2025. 

The post $5,000 to invest? Consider 4 no-brainer ASX dividend shares with over 20 years of growth appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Apa Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I’m a big advocate for owning growing businesses because rising profit over time is likely to turn into a higher share price (and bigger dividends). There are some great S&P/ASX 200 Index (ASX: XJO) shares available for Aussies to invest in.

However, a number of the ASX’s best businesses have seen their share prices drop, which undoubtedly has made them cheaper on an earnings multiple basis, also known as the price/earnings (P/E) ratio.

Buy-the-dip investing won’t always lead to incredible results, but I think it makes a lot of sense with growing businesses like the two below.

Xero Ltd (ASX: XRO)

Xero is one of the world’s leading cloud accounting businesses with a very impressive presence in English-speaking countries. It now has over 4.5 million subscribers across countries like Australia, New Zealand, the UK, the US, South Africa and so on.

It has an incredibly high gross profit margin of 88.5%, which means most of the new revenue it creates can turn into gross profit which can be used for growth spending or fall onto the bottom line.

In the FY26 first-half result, it reported revenue growth of 20% to $1.2 billion, net profit growth of 42% to $135 million and free cash flow growth of 54% to $321 million.

If the ASX share can successfully crack the competitive, but huge, US market in a major way, Xero could become significantly more profitable.

The ASX 200 share looks a lot better value after the Xero share price’s fall of more than 40% over the past six months, as the chart below shows. I think it looks much better value today.

Guzman Y Gomez Ltd (ASX: GYG)

The Mexican food business is another Australian company that has successfully captured a good market share in the local market, and now it’s growing overseas.

It has over 220 locations in Australia, as well as 22 in Singapore, five in Japan and seven in the US. The business has ambitious plans to roll out dozens of restaurants each year in Australia and eventually reach 1,000 locations, implying strong growth ahead.

The ASX 200 share’s total network sales are growing at a strong rate in Australia and overseas, with growth of 18.5% to $330.6 million in the three months to September 2025, supported by mid-single-digit comparable sales growth from existing restaurants.

GYG is expecting its profit margins to increase as it becomes larger, partially thanks to the power of operating leverage. I think this will help the company’s bottom line significantly, while it continues investing for long-term growth.

If the ASX 200 share can become profitable in the US and continue expanding its overall location count and network sales, I believe the business will have a very positive future.

As the above chart shows, the GYG share price has declined by more than 40% in 2025 to date.

The post 2 ASX 200 shares that could be top buys for growth appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Guzman Y Gomez. 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.

Market crashes are uncomfortable, but they are also where some of the best long-term opportunities are created.

History shows that share markets have always recovered from major downturns, even though it rarely feels that way at the time.

If the ASX and global markets were to suffer a sharp sell-off, I wouldn’t be trying to pick the bottom or trade in and out. Instead, I would be looking to deploy capital into high-quality exchange-traded funds (ETFs) that offer diversification, resilience, and strong long-term growth potential.

These are the ASX ETFs I would be buying if markets fell sharply.

iShares S&P 500 ETF (ASX: IVV)

The first ASX ETF I would reach for is the iShares S&P 500 ETF. It provides exposure to 500 of the largest and most profitable stocks in the United States, many of which have proven their ability to survive and thrive through multiple market cycles.

Its holdings span industries such as technology, healthcare, consumer goods, and industrials. This includes names such as Microsoft (NASDAQ: MSFT), Johnson & Johnson (NYSE: JNJ), Costco Wholesale Corp (NASDAQ: COST), Visa Inc (NYSE: V), and Nvidia Corp (NASDAQ: NVDA).

A market crash often hits even the strongest businesses indiscriminately. Buying this fund during those periods has historically given patient investors exposure to world-class stocks at far more attractive valuations.

Vanguard Australian Shares ETF (ASX: VAS)

Closer to home, I would also be looking at the Vanguard Australian Shares ETF. This fund tracks the broader Australian share market and provides instant exposure to the country’s 300 largest stocks.

Its portfolio includes Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), CSL Ltd (ASX: CSL), Coles Group Ltd (ASX: COL), and Wesfarmers Ltd (ASX: WES). These businesses dominate their respective industries and play a central role in the Australian economy.

For long-term investors, a market crash can be an opportunity to buy into the Australian market at valuations that don’t come around very often.

Betashares Global Cybersecurity ETF (ASX: HACK)

Finally, I would want some exposure to a long-term structural growth theme that is unlikely to disappear in a downturn.

The Betashares Global Cybersecurity ETF invests in stocks that are providing cybersecurity software and services. This includes Palo Alto Networks (NASDAQ: PANW), CrowdStrike Holdings (NASDAQ: CRWD), Fortinet (NASDAQ: FTNT), and Zscaler (NASDAQ: ZS).

As digital threats continue to rise, spending on cybersecurity remains a priority for governments and businesses regardless of economic conditions.

If the market crashed, high-growth thematic ETFs like HACK would likely be hit hard. But for investors with a long time horizon, that volatility could present an opportunity to buy into an essential industry at discounted prices.

The post These are the ASX ETFs I would buy if the market crashed tomorrow appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF, CSL, Costco Wholesale, CrowdStrike, Fortinet, Microsoft, Nvidia, Visa, Wesfarmers, Zscaler, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and Palo Alto Networks and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended BHP Group, CSL, CrowdStrike, Microsoft, Nvidia, Visa, Wesfarmers, and 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.

NextDC Ltd (ASX: NXT) shares came under pressure on Tuesday, finishing 2% lower to $12.70.

The pullback extends a broader decline that has seen the data centre operator’s shares fall nearly 15% from their 5 December peak of $14.90.

This has occurred despite no material downgrade to the company’s long-term outlook. While short-term sentiment has cooled, broker confidence appears to be improving.

NextDC is currently rated a strong buy, with analysts pointing to meaningful upside from current levels.

What are brokers saying?

Broker consensus points to an average price target of around $19 to 22 per share, implying potential upside of roughly up to 70% from yesterday’s closing share price.

Support for NextDC remains widespread among brokers. The majority of covering analysts’ rate NextDC as a buy, with no sell recommendations currently on the table. Several brokers have also reaffirmed or lifted price targets in recent weeks, even as market volatility has increased.

Why the NextDC investment case remains strong

NextDC owns and operates some of Australia’s most critical digital infrastructure, servicing hyperscalers, government agencies, and large enterprises. While the business is capital intensive, earnings visibility continues to improve as new capacity is contracted.

At its latest update, the company reported pro-forma contracted utilisation of more than 300MW, alongside a forward order book exceeding 200MW. Much of this capacity is expected to convert into revenue between FY26 and FY29, supporting broker forecasts for accelerating earnings growth.

Management has also maintained FY26 guidance, helping to reassure the market around execution risk.

The AI tailwind the market may be underestimated

A key driver behind broker optimism is NextDC’s growing role in Australia’s sovereign AI infrastructure. The company recently announced it had joined OpenAI as an infrastructure partner, with plans to develop and operate a GPU supercluster in Sydney.

Brokers believe AI-related workloads could materially lift long-term demand for high-density data centres, with NextDC well positioned to benefit. Several analysts have also noted that this opportunity is unlikely to be fully reflected in near-term earnings models.

Why the share price has fallen?

The recent sell-off appears driven by short-term concerns around capital expenditure, funding requirements, and valuation multiples, rather than any deterioration in operating performance.

With earnings growth weighted towards later years, some investors have chosen to step aside. Many brokers, however, argue that this disconnect between near-term costs and long-term cash flows is exactly why NextDC looks undervalued today.

The bottom line

While near-term volatility remains, broker sentiment suggests the market may be overlooking a high-quality infrastructure business with powerful long-term tailwinds.

For investors willing to take a longer-term view, NextDC is increasingly being labelled by brokers as one of the ASX 200’s most undervalued growth opportunities, and one I’ll be adding to my watchlist.

The post This ASX 200 share is being labelled one of the market’s most undervalued by brokers 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 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.

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form again and ended the day slightly lower. The benchmark index fell 0.15% to 8,585.2 points.

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

ASX 200 expected to edge lower

The Australian share market looks set to fall again on Thursday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 5 points lower this morning. In late trade in the United States, the Dow Jones is down 0.3%, the S&P 500 is down 0.95%, and the Nasdaq is 1.5% lower.

Oil prices rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Thursday after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 1.3% to US$55.97 a barrel and the Brent crude oil price is up 1.25% to US$59.65 a barrel. This follows news that Donald Trump has ordered a Venezuelan oil tanker blockade.

Boss Energy update

Boss Energy Ltd (ASX: BOE) shares will be on watch on Thursday when the uranium producer returns from its trading halt. On Wednesday, it requested the halt while it prepared an announcement regarding the conclusion and outcomes of the Honeymoon Review. Short sellers have been loading up on Boss Energy’s shares on the belief that this review could fall well short of the market’s expectations.

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) will be on watch on Thursday after the gold price pushed higher. According to CNBC, the gold futures price is up 0.9% to US$4,373.3 an ounce. Soft US labour market data boosted rate cut chances.

Buy DroneShield shares

Bell Potter thinks that investors should be buying DroneShield Ltd (ASX: DRO) shares ahead of a potentially big year in 2026. This morning, the broker has reiterated its buy rating with a trimmed price target of $4.40. It said: “We expect 2026 will be an inflection point for the global counter-drone industry with countries poised to unleash a wave of spending on RF detect and defeat solutions. Consequently, we believe DRO should see material contracts flowing from its $2.5b potential sales pipeline over the next 3-6 months as defence budgets roll over to FY26e.”

The post 5 things to watch on the ASX 200 on Thursday 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 positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When it comes to building long-term wealth, few strategies are as powerful as owning high-quality ASX dividend shares and holding them through thick and thin.

The best shares don’t just pay income today. They adapt, grow, and keep rewarding shareholders across economic cycles, commodity booms, recessions, and everything in between.

Here are three ASX dividend shares that I think stand out as businesses you could buy, hold, and rely on for decades.

BHP Group Ltd (ASX: BHP)

It is hard to talk about long-term dividend investing on the ASX without mentioning BHP Group. As one of the world’s largest diversified miners, the Big Australian sits at the heart of global demand for iron ore, copper, and other critical commodities.

What makes BHP especially attractive for long-term income investors is its scale and cost position. Its assets are among the lowest-cost producers globally, which allows it to remain profitable even when commodity prices fall. During stronger cycles, excess cash is returned to shareholders through generous dividends (including special dividends).

While BHP’s payouts can fluctuate with commodity prices, its balance sheet strength and disciplined capital management have made it one of the ASX’s most reliable long-term dividend payers. I expect this to remain the case over the next decade and beyond.

Macquarie Group Ltd (ASX: MQG)

Macquarie Group has quietly built one of the strongest dividend records on the ASX.

It operates a globally diversified financial services business, spanning asset management, infrastructure investing, commodities trading, and specialist banking. This diversity helps smooth earnings across market cycles and provides multiple growth engines.

Over time, the company has steadily increased its payout as earnings expanded, rewarding long-term shareholders who stayed the course. And while there have been many ups and downs, the overall trajectory is up.

Combined with a conservative capital approach, this arguably makes Macquarie a compelling option for income investors.

Wesfarmers Ltd (ASX: WES)

Finally, Wesfarmers could be a great buy and hold option. It is one of Australia’s highest-quality conglomerates with a portfolio including Bunnings, Kmart, Priceline, Officeworks, and a growing industrial and chemicals division.

What sets Wesfarmers apart from rivals is the quality and experience of its management. The company has repeatedly shown an ability to allocate capital intelligently, exit underperforming businesses, and reinvest in higher-return opportunities. That discipline has underpinned steady earnings growth and dependable dividends over many years.

And while Wesfarmers may not always offer the highest yield, its strong cash generation and defensive retail exposure make it well suited to long-term income investors.

The post 3 ASX dividend shares worth holding forever 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 positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended BHP Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The “Magnificent Seven” stocks have produced the lion’s share of the S&P 500‘s long-term gains. This group of stocks represents 35% of the S&P 500, and if these seven stocks continue to outperform the index, their presence in the S&P 500 will grow.

Although each of these stocks has been a long-term winner, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) may be the most promising pick of the bunch.

It looks like a promising buy in 2026 due to strong financials and long-term artificial intelligence (AI) tailwinds. Alphabet has been a cloud computing and search leader for many years, but it might just become a physical AI leader as well.

These are some of the reasons investors may want to take a closer look at Alphabet in 2026.

High cash flow lets Alphabet invest in more ventures 

Alphabet isn’t the only company that’s investing in physical AI, but few companies can compete with its cash flow and steady profits. Alphabet’s strong financial position gives it the flexibility to endure losses on start-ups for multiple years before turning a profit.

That’s part of the reason why Alphabet has silently emerged as an autonomous vehicle leader through Waymo. Alphabet recently started offering its AI chips to third parties, and it can become a multibillion-dollar segment.

Alphabet has $98.5 billion in cash, cash equivalents, and marketable securities on its balance sheet. The tech giant also brought in $35 billion in net profits in Q3, which was up by 33% year over year.

Google Cloud used to be a small part of Alphabet’s overall business. Now, it’s one of the three giant cloud providers. Alphabet can experience similar success with Waymo, AI chips, and other parts of its business.

Alphabet has multiple high-growth business

Alphabet doesn’t just rely on online ads, which is one of the few downsides of fellow Magnificent Seven stock Meta Platforms (NASDAQ: META). Google’s parent company has several businesses like search, cloud, and subscriptions, and they’re all growing.

“Alphabet had a terrific quarter, with double-digit growth across every major part of our business,” Alphabet CEO Sundar Pichai said in the company’s Q3 earnings release.

It was also the first quarter that Alphabet earned $100 billion in revenue. Google Cloud was a major highlight, with revenue up by 34% year over year. That part of the business also has a $155 billion backlog.

Cloud computing makes up roughly 15% of the company’s total revenue. As this segment grows, it will make up a larger percentage of total revenue, which can boost Alphabet’s total revenue growth rate.

The Gemini app was another key business segment. Alphabet’s AI model now has 650 million monthly active users. Alphabet has multiple growth drivers that work well with each other and have delivered excellent results over several years.

Most Magnificent Seven stocks are less diversified

Alphabet is one of the Magnificent Seven stocks driving the S&P 500 to new highs, and it’s one of the most diversified companies among the group.

Tesla (NASDAQ: TSLA) heavily relies on automobile sales, with humanoid robots offering significant potential. Apple (NASDAQ: AAPL) heavily relies on iPhone sales, while Meta Platforms generates almost all of its cash flow from online ads. Nvidia (NASDAQ: NVDA) relies on AI chips and software that revolves around its chips.

Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) are the other two well-diversified members of the Magnificent Seven. Both tech giants have competing cloud computing providers and multiple revenue streams.

However, Alphabet is experiencing double-digit growth rates across all of its key businesses. Amazon’s online store sales were only up by 8% year over year, excluding foreign exchange rates. That part of Amazon’s business accounts for more than one-third of total sales.

Meanwhile, Microsoft only delivered 4% year-over-year revenue growth for its more personal computing segment in Q1 FY26, which made up almost 30% of total revenue.

Alphabet’s key businesses are still gaining market share, and AI should accelerate growth rates while resulting in new high-growth segments making a meaningful difference in future earnings results.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Should you buy this “Magnificent Seven” stock before 2026? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

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• Better (almost) $4 trillion AI stock to buy now: Microsoft or Alphabet
• Why the best-performing “Magnificent Seven” stock of 2025 is still a buy for 2026
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• These 2 magnificent seven AI stocks might be offering investors a once-in-a-decade buying opportunity before the New Year.

Marc Guberti has positions in Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.