Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) ascended 1% last week and is down 2.5% over 12 months.

Let’s start the week with some new ratings from market experts (courtesy The Bull). 

JB Hi Fi Ltd (ASX: JBH)

The JB Hi-Fi share price has tumbled 37% over 12 months.

Andrew Wielandt from DP Wealth Advisory has a buy call on this ASX 200 consumer discretionary share. 

Wielandt said: 

This consumer electronics giant continues to show why it’s one of Australia’s highest quality retailers.

The company delivered record total sales of $11.06 billion in full year 2026, up 4.8 per cent on the prior corresponding period.

Net profit after tax of $489.9 million increased 6 per cent. The total fully franked dividend of $3.37 was up 22.5 per cent.

The company continues to take market share through its low cost operating model, strong brand recognition and leadership across consumer electronics.

Our recommendation is supported by a proven management team, strong cash generation and a history of executing well during varying economic conditions.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire Resources share price is up 31% over 12 months. 

Michael Gable from Fairmont Equities has a hold rating on this ASX 200 copper share. 

Gable said: 

SFR is Australia’s largest listed pure play copper producer. Copper demand is increasing in an environment of low supply and this is likely to lead to higher prices.

Group sales revenue of $1.7 billion in full year 2026 was up 41 per cent year on year. Profit after tax of $354 million was up 294 per cent.

Its final fully franked dividend of 35 cents a share was much higher than the market was expecting.

From a charting perspective, the price action for SFR looks bullish and we expect to see a sustainable uptrend from here.

Ramsay Health Care Ltd (ASX: RHC)

The Ramsay Health Care share price has streaked 77% higher over 12 months.

Toby Grimm from Baker Young has a sell rating on this ASX 200 healthcare share. 

Grimm explained: 

Ramsay Health Care is one of the largest private hospital operators in Australia. It has additional operations in the UK and Europe.

Ramsay’s operations have improved. Insurer pricing better reflects cost inflation, with higher demand and higher margin procedures prioritised.

Yet the industry remains challenging and public sector competitors effectively set input costs without needing to operate profitably.

The stock has strongly rallied in the past 12 months to the point we believe it’s exposed to a pullback.

The forward price/earnings ratio has risen significantly above its 10-year average.

Investors may want to consider booking profits and monitor performance from the sidelines.

The post Buy, hold, sell: JB Hi-Fi, Sandfire Resources, Ramsay Health Care shares appeared first on The Motley Fool Australia.

More reading

• 6 ASX shares hit by broker downgrades this week
• Own ASX mining shares? Official forecasts show commodity prices peaking in FY27
• 2 top ASX blue-chip shares to buy according to experts
• Buy, hold, sell: Wildcat Resources, Ramsay Health Care, CBA shares
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bronwyn Allen 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.

Once a week, I like to look at ASIC’s short position report to find out which ASX shares are being targeted by short sellers.

That’s because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

The top 10 most shorted ASX shares

• DroneShield Ltd (ASX: DRO) remains the most shorted ASX share after its short interest jumped from 14.5% to 16.2%. Short sellers may still be concerned about the ASIC investigation into the company’s previous market disclosures and share trading, as well as its ability to deliver on growth expectations.
• Lotus Resources Ltd (ASX: LOT) has seen its short interest rise to 15.6%. With the company working to increase production at its Kayelekera uranium mine, short sellers may be questioning whether it can achieve its production targets without further cost pressures.
• Boss Energy Ltd (ASX: BOE) has short interest of 15.1%, up from 13.1% last week. This could reflect doubts about the company’s revised development plans for its Honeymoon uranium operation, particularly whether it can deliver the production and cost improvements outlined in its latest feasibility study.
• Zip Co Ltd (ASX: ZIP) has moved up the table with 12.9% of its shares held short, compared to 12.6% last week. Short sellers may be concerned about the sustainability of its US growth and the potential for higher funding costs and customer defaults to weigh on profitability due to higher rates.
• PLS Group Ltd (ASX: PLS) has short interest of 12.9%, up slightly since last week. With lithium prices weakening recently and forecasts pointing to a potential supply surplus in 2027, short sellers may be betting that the company’s earnings will be less than expected.
• IperionX Ltd (ASX: IPX) has seen its short interest increase to 12.9%. Although the company is making progress with its titanium production technology, short sellers may remain sceptical about how quickly it can scale up manufacturing and generate meaningful profits.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has 12.1% of its shares held short, up from 11.7% last week. The company recently announced another leadership change in Australia and New Zealand, and short sellers may be questioning whether its restructuring efforts can deliver a sustained recovery in sales and earnings.
• Paladin Energy Ltd (ASX: PDN) has short interest of 11.8%, compared to 11.5% last week. Its Langer Heinrich mine recently reported quarterly uranium production below market expectations, potentially adding to concerns about production reliability and recovery rates.
• Lynas Rare Earths Ltd (ASX: LYC) has seen its short interest rise to 11.8%. Short sellers may be concerned about the financial and operational risks associated with the proposed acquisition of Meteoric Resources and the development of its Caldeira rare earths project in Brazil.
• WiseTech Global Ltd (ASX: WTC) has entered the top ten with short interest of 11%. Short sellers may be questioning whether the logistics software company can deliver the expected benefits from its major e2open acquisition and AI-driven restructuring, particularly given the significant changes taking place across the business.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week
• 3 undervalued ASX shares I would buy today
• WiseTech Global vs Netwealth: Which ASX tech stock could double from here?
• Why the Paladin Energy share price “doesn’t make sense”

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

On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week with a strong gain. The benchmark index rose 1% to 8,806.7 points.

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

ASX 200 expected to fall

The Australian share market looks set for a subdued start to the week following a poor session on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points or 0.1% lower. In the United States, the Dow Jones was down 0.35%, the S&P 500 fell 1.1%, and the Nasdaq sank 2.15%.

Oil prices jump

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a strong start to the week after oil prices jumped on Friday night. According to Bloomberg, the WTI crude oil price was up 3.5% to US$101.41 a barrel and the Brent crude oil price was up 3.7% to US$109.86 a barrel. Increased Strait of Hormuz attacks and reports that Ukraine is vowing to hit Russian refineries were behind the rise.

Buy Mesoblast shares

Mesoblast Ltd (ASX: MSB) shares offer major upside according to Bell Potter. This morning, the broker has retained its buy rating and slightly trimmed price target of $4.40 on the biotech company’s shares. 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.”

Gold price edges higher

It could be a reasonable start to the week for ASX 200 gold shares such as Capricorn Metals Ltd (ASX: CMM) and Northern Star Resources Ltd (ASX: NST) after the gold price edged higher on Friday night. According to CNBC, the gold futures price was up 0.25% to US$4,181.1 an ounce. This couldn’t stop the precious metal from recording a weekly decline following hotter-than-expected U.S. inflation data.

Buy PLS shares

The team at Bell Potter remains positive on PLS Group Ltd (ASX: PLS) shares following the final investment decision to double Pilgangoora nameplate spodumene concentrate capacity to 2Mtpa. In response, the broker has retained its buy rating on the lithium miner’s shares with a trimmed price target of $4.10 (from $4.40). 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.”

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

More reading

• These are the 10 most shorted ASX shares
• Buy, hold, sell: Santos, BHP, Telstra shares
• Top brokers name 3 ASX shares to buy next week
• ASX 200 utilities and healthcare shares win the week again
• Here’s the average superannuation balance at 60 and 70 in Australia

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

The Sigma Healthcare Ltd (ASX: SIG) share price has seen its fair share of volatility in the last year, as the chart below shows. The owner of Chemist Warehouse, Amcal and Discount Drug Stores has delivered strong financial performance, even if the valuation hasn’t reflected that.

When a business reports solid earnings growth, it normally leads to strong shareholder returns. The FY26 result clearly demonstrated what the company is capable of.

Let’s review what the company achieved in the 2026 financial year, then consider what experts think of Sigma Healthcare’s share price.

FY26 earnings recap

In the 2026 financial year, revenue grew by 15.5% to $10.8 billion. The Australian segment grew revenue by 14.9% to $10.4 billion, while the international segment grew revenue by 33% to $421.4 million. Australian Chemist Warehouse like-for-like sales growth was 13.4%, while international like-for-like sales growth was 12.2%.

That’s an impressive level of growth considering how long the company has been growing.

It added 24 Chemist Warehouse branded stores to the Australian network to reach 561, while the international segment opened 20 stores offshore to reach 98.

Profit improved even faster than revenue. The company’s normalised operating profit (EBIT) grew 20.6% to $1.09 billion, with the EBIT margin improving to 10.1%. Within that, Australian EBIT rose 18.3% and international EBIT grew 91.3%. Normalised net profit increased by 22.3% to $732.3 million.

It also revealed that net debt reduced to $663 million, so the balance sheet health improved on a debt-to-normalised EBITDA ratio basis to 0.57x.

The merger between Sigma Healthcare and Chemist Warehouse continues to deliver significant integration synergies. The synergies delivered reached $32.6 million. The company said it’s on track to reach $100 million per year by FY29.

There were solid growth numbers all around. The company’s earnings look set to grow in FY27. In its outlook commentary, the company said Australian Chemist Warehouse branded store network continues to see double-digit like-for-like sales growth.

For the first half of FY27, it plans to onboard 13 Chemist Warehouse stores in the Australian network and another 19 international stores, including its entry into the UK market. It also plans to open 42 stores across Amcal and Discount Drug Stores in Australia during the first half of FY27.

Sigma Healthcare share price target

A price target is where analysts think the share price of a business will be in 12 months from the time of the investment call.

According to CMC Invest, there have been 11 analyst ratings on the business within the last three months. Nine of those ratings were a buy, and two were a hold. The average price target of those 11 analysts is $3.14, suggesting a possible rise of 10% over the next year.

The most optimistic price target is $3.58. This implies a possible rise of around 25% over the next year.

Overall, it seems like a compelling long-term opportunity, though it’s not the only ASX stock worth looking at.

The post How much could the Sigma Healthcare share price rise in the next year? appeared first on The Motley Fool Australia.

More reading

• ASX 200 utilities and healthcare shares win the week again
• Why these are my favourite ASX growth shares to buy and hold
• Here are the top 10 ASX 200 shares today
• UBS’ top nine ASX large-cap stock picks
• 3 ASX 200 shares I would buy and hold for 10 years

Motley Fool contributor Tristan Harrison 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.

Global X will pay its next round of distributions to ASX exchange-traded fund (ETF) investors today.

We have listed the distribution amounts, rounded to two decimal places, below.

If you elected to participate in Global X’s distribution reinvestment plan (DRP), you will receive your new units today.

The DRP allows investors to instruct Global X to automatically use their dividends to buy more units on their behalf.

The DRP prices for each Global X ETF are also listed below.

Global X ASX ETF distributions

ETF	Distribution	Franking	DRP price
Global X Australia 300 ETF (ASX: A300)	41.37 cents per unit	82%	50.7 cents per unit
Global X S&P/ASX 200 Covered Call Complex ETF (ASX: AYLD)	10.5 cents per unit	82%	10.18 cents per unit
Global X Australian Bank Credit ETF (ASX: BANK)	6.31 cents per unit	44%	9.79 cents per unit
Global X Australia ex Financial & Resources ETF (ASX: OZXX)	9.32 cents per unit	63%	9.79 cents per unit
Global X Nasdaq 100 Covered Call Complex ETF (ASX: QYLD)	8.86 cents per unit	0%	11.23 cents per unit
Global X Russell 2000 ETF (ASX: RSSL)	1.43 cents per unit	0%	9.55 cents per unit
Global X USD High Yield Bond (Currency Hedged) ETF (ASX: USHY)	12.42 cents per unit	0%	8.72 cents per unit
Global X USD Corporate Bond (Currency Hedged) ETF (ASX: USIG)	10.46 cents per unit	0%	8.48 cents per unit
Global X US Treasury Bond (Currency Hedged) ETF (ASX: USTB)	7.91 cents per unit	0%	8.48 cents per unit
Global X S&P 500 Covered Call Complex ETF (ASX: UYLD)	6.29 cents per unit	0%	10.62 cents per unit
Global X S&P/ASX 200 High Dividend ETF (ASX: ZYAU)	16.19 cents per unit	84%	9.93 cents per unit
Global X S&P 500 High Yield Low Volatility ETF (ASX: ZYUS)	12.55 cents per unit	0%	13.7 cents per unit

Curious about what other ETFs are paying?

Vanguard paid its latest round of dividends to ETF investors last Friday.

Vanguard manages some of the largest funds on the market.

They include Vanguard Australian Shares Index ETF (ASX: VAS) and Vanguard Australian Shares High Yield ETF (ASX: VHY).

See how much Vanguard investors received here.

Betashares also paid dividends last Friday.

See how much Betashares ETF investors received here.

BlackRock paid distributions to ETF investors on 9 October.

You can view the final amounts here.

The post ASX ETF investors will receive dividends today. Here is how much you'll get appeared first on The Motley Fool Australia.

More reading

• ASX ETF dividends: Global X reveals next payments

Motley Fool contributor Bronwyn Allen has positions in Vanguard Australian Shares High Yield ETF. 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 Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares rose 1% last week and are down 2.5% over 12 months.

Here’s what Michael Gable from Fairmont Equities thinks of these 3 ASX 200 shares (courtesy The Bull). 

Santos Ltd (ASX: STO)

The Santos share price rose 3.88% to close at $9.11 last week.

Gable has a buy rating on this ASX 200 energy share. 

He said: 

Santos is a global energy company. We’ve been bullish on the outlook for oil and gas since 2025 due to a looming imbalance between supply and demand.

Investors have been underweight in the energy sector, but buying support is emerging for major oil and gas companies like Santos.

The shares have risen from $6.15 on January 2 to trade at $9.14 on October 15.

A major technical breakout in Santos shares was achieved this month, which is a positive sign and indicates potentially higher prices moving forward.

BHP Group Ltd (ASX: BHP)

The BHP share price fell 1.49% to finish at $60.03 last Friday.

Gable has a hold rating on this ASX 200 mining share. 

He commented: 

BHP is one of the world’s biggest miners and most of its earnings is now generated from copper.

In our view, we remain in the early stages of a commodities boom. The copper price continues to trend higher due to supply constraints and increasing demand.

The company posted an attributable profit of $US9.8 billion in full year 2026, up 9 per cent on the prior corresponding period.

It was recently trading on a fully franked dividend yield of almost 4 per cent, which is attractive for Australian shareholders in light of the Federal Government’s changes to capital gains tax rules.

Telstra Group Ltd (ASX: TLS)

The Telstra share price edged 0.63% lower to $4.74 last week.

Gable has a sell rating on this ASX 200 telco share. 

Gable explained: 

Stock in this telecommunications giant enjoyed a good run in the two years up to May 2026, but has fallen back and formed a negative reversal signal on the share price chart.

In an environment of higher interest rates, Telstra’s dividend loses appeal when compared to cash in the bank.

Telstra shares have fallen from $5.55 on May 19 to trade at $4.785 on October 15.

In our view, low growth prospects and possibly increasing competition from SpaceX‘s Starlink leaves the share price under pressure.

The post Buy, hold, sell: Santos, BHP, Telstra shares appeared first on The Motley Fool Australia.

More reading

• If I could only buy 5 ASX shares for retirement, these would make my shortlist
• Buy, hold, sell: BHP, DroneShield, and Lynas shares
• I look for 3 things in a retirement stock. These 5 shares have them all
• 9 ASX 200 shares experts are backing for growth amid market weakness
• How much do I need in my superannuation to generate a $108,000 annual passive income?

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. 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.

Insurance Australia Group vs Medibank shares: Which is the more reliable passive income stock?

Looking to steady your income with ASX dividend shares? Insurance Australia Group Ltd (ASX: IAG) and Medibank Private Ltd (ASX: MPL) are two prominent insurers – but with different focuses, histories, and fundamentals. If you’re torn between these giants for your portfolio’s next source of passive income, here’s what stands out about IAG and Medibank shares right now.

The case for Insurance Australia Group

Insurance Australia Group is the largest general insurer in Australia and New Zealand, with roots going back to NRMA Insurance. Through well-known consumer brands, IAG offers policies across motor, home, and business insurance, and underwrites billions in premiums each year. It operates in a highly regulated space and is known for scale and brand strength.

Three points make IAG noteworthy for income hunters:

• Dividend yield: 3.8% – solid, though not spectacular, especially among defensive stocks.
• Dividend history: IAG has a long dividend track record, but dividend per share and franking have fluctuated in recent years, with a 0.32 dividend per share and partial franking (recent dividends as low as 25–60% franked).
• YTD return: Up an impressive 9.5%, signalling positive momentum.

That said, IAG’s reported recent earnings per share is negative at -1.921, which does warrant some caution – negative earnings can put future dividend sustainability under pressure.

The case for Medibank Private

Medibank Private is Australia’s largest private health insurer, operating under both Medibank and ahm brands. Its core is health cover, but it’s diversified into pet, life, and travel insurance, plus corporate health. Medibank is often seen as a defensive, reliable dividend share thanks to its stable customer base and highly cash-generative business.

Key features for dividend investors include:

• Dividend yield: 4.1%, just topping IAG and attractive for a major ASX stock.
• Dividend history: Medibank’s dividends have been consistent and are fully franked, giving income investors a tax edge and a sign of strong underlying earnings quality.
• Earnings per share: Positive at 0.232, providing support for ongoing dividends.

While its year-to-date return is only 1.7% (much lower than IAG’s), Medibank’s steady performance and 100% franking may appeal more to income-focused investors.

Valuation comparison

Here’s how the headline numbers stack up:

	Insurance Australia Group	Medibank Private
Market Cap	$19.42bn	$12.83bn
P/E Ratio	18.99	20.17
Dividend Yield	3.80%	4.10%
Dividend Franking	Recent: 25%–60%	100%
Earnings per share	-1.921	0.232

Note: IAG’s negative EPS seems inconsistent with its positive P/E ratio. This may mean the reported P/E uses an adjusted or forecast earnings number.

Both valuations are within the normal range for major ASX insurers, though Medibank’s P/E is a touch higher – understandable given its 100% dividend franking and consistent profits.

Recent share price momentum

Comparing recent share price performance up to14 October 2026:

• IAG: Closed at $8.30, down 1.43% on the day. Its YTD return, however, is a strong 9.5%.
• Medibank: Closed at $4.66, down 0.43% on the day. Its YTD return is 1.7%.

Both have had small down days but, over 2026, IAG has delivered stronger share price gains.

Which is the better buy?

If reliable, consistent passive income is the goal, I’d lean toward Medibank Private. Its fully franked dividends provide better after-tax returns, and its dividend record is both steady and fully supported by current earnings. Medibank’s 4.1% yield edges out IAG, and the consistency of 100% franking is a major plus for Australian tax residents, especially with partial franking now the norm for IAG.

IAG has delivered better share price growth this year, but its negative earnings and lower franking raise some questions on dividend sustainability. While its insurance business is huge and diversified, I think income investors want clarity and reliability.

So, for pure passive income reliability, my pick would be Medibank Private shares.

The post Insurance Australia Group vs Medibank: Which is the more reliable passive income stock? appeared first on The Motley Fool Australia.

More reading

• 9 ASX 200 shares experts are backing for growth amid market weakness
• How much passive income can I earn off a $700,000 superannuation balance?
• Insurance Australia Group updates on RAC alliance and ACCC review
• Here are the top 10 ASX 200 shares today
• UBS’ top nine ASX large-cap stock picks

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.

National Australia Bank vs Coles Group shares: Which blue chip should I buy next for my SMSF?

If you’re looking at National Australia Bank Ltd (ASX: NAB) shares versus Coles Group Ltd (ASX: COL) shares for your SMSF, you’re not alone. Both are household-name blue chips on the ASX, known for reliable dividends, defensive business models, and roles as core holdings in many Australian portfolios. But which deserves a spot in your next SMSF purchase? Let’s break down the fundamentals, dividend outlook, recent momentum, and relative value to help you decide.

The case for National Australia Bank

National Australia Bank, or NAB, is one of the ‘big four’ banks dominating Australian and New Zealand banking. Its mainstays are retail and business banking, plus some operations overseas. NAB’s size and scale, with a strong local focus, give it a distinct position as a pillar of the Australian financial system.

Notable fundamentals jumping out include:

• Market cap: $120.18 billion, one of the biggest companies on the ASX
• P/E ratio: 19.63, on the lower side for a blue-chip, partly reflecting the lower-growth, higher-stability banking sector
• Dividend yield: 4.33%, fully franked at 100%, meaning those dividends can be particularly attractive for SMSFs seeking income with franking credits

NAB’s earnings per share comes in at $2.00, with a dividend per share of $1.70, showing it’s distributing a healthy portion of its profits. Year-to-date return is -5.22%, meaning the share price has drifted lower this year, but the dividend cushion gives some comfort. According to its most recent public description, NAB has built a dominant presence in local banking, serving millions of Australians and New Zealanders.

The case for Coles

Coles is Australia’s second-largest supermarket operator, with a nationwide footprint spanning Coles Supermarkets, Coles Liquor, and an online offering. Famous for its weekly specials and focus on essential products, Coles is a true consumer staple — the sort of retailer that hums along no matter what the economy is doing.

A few highlights from the numbers:

• Market cap: $31.76 billion (significantly smaller than NAB, but still a titan in listed retail)
• P/E ratio: 29.19, higher than NAB’s, reflecting different growth expectations for supermarket retail versus banking
• Dividend yield: 3.29%, also fully franked, making Coles appealing to income-seeking SMSFs

Coles delivers earnings per share of $0.812 and a dividend per share of $0.74 — again, a decent portion of profits returned to shareholders. Year-to-date, Coles shares are up 14.18%, outpacing much of the market. According to its latest company profile, Coles operates across groceries, liquor, and household goods, maintaining a huge retail presence and brand recognition.

Valuation comparison

Here’s how NAB and Coles stack up on the key valuation and income stats:

	National Australia Bank	Coles
Market Cap	$120.18b	$31.76b
P/E Ratio	19.63	29.19
Dividend Yield	4.33% (100% franked)	3.29% (100% franked)
Dividend per Share	$1.70	$0.74
Earnings per Share	$2.000	$0.812
Year to Date Return	-5.2%	14.2%

NAB currently offers a materially higher dividend yield than Coles and does so with full franking. The P/E ratio for NAB is noticeably lower — but keep in mind: banks and retailers tend to trade at different benchmarks, so comparing their P/E ratios should be done in context. Coles’ higher P/E may price in its perceived stability and growth outlook in groceries, while NAB’s lower multiple can reflect sector trends or short-term headwinds.

Recent share price momentum

Comparing recent share price performance up to 14 October 2026:

• National Australia Bank: Closed at $38.55, down 1.78% for the day, and -5.2% year-to-date. NAB’s shares have seen some bouts of volatility lately, with a short-term downward drift this year.
• Coles Group: Closed at $23.63, down 0.30% for the day, but is up 14.2% year-to-date. Coles shares have been far more resilient in 2026, delivering strong positive momentum versus the banking giant.

Which is the better buy?

If I could only add one of these blue chips to my SMSF right now, my pick would be Coles. Here’s why: Coles may be on a higher P/E multiple, but its share price has delivered stronger momentum all year. The retail staple is churning out reliable profits and still providing a solid, fully franked dividend — albeit at a slightly lower yield than NAB. The steady consumer staples business has shown real resilience, especially through periods of economic uncertainty.

Meanwhile, NAB’s dividend yield edges out Coles and may appeal to income-focused SMSFs, particularly with those juicy franking credits. But the negative share price performance year-to-date — and sensitivity to interest rate cycles and regulatory shifts — gives me pause. Until NAB can demonstrate steadier share growth or less sector risk, I’d lean toward the proven strength and momentum of Coles as a solid core holding for a long-term SMSF strategy.

The post NAB vs Coles: Which is the better ASX blue-chip buy for SMSF investors? appeared first on The Motley Fool Australia.

More reading

• I look for 3 things in a retirement stock. These 5 shares have them all
• How much do I need in my superannuation to generate a $108,000 annual passive income?
• 3 ASX shares I think could still be thriving in 2040
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• How much passive income can I earn off a $700,000 superannuation balance?

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.

Commonwealth Bank of Australia (ASX: CBA) shares usually provide shareholders with a solid dividend yield. This decade, it has regularly hiked the passive income payout following the COVID-19 pandemic.

Investors may be looking at the CBA share price as a potential opportunity. At the time of writing, it’s down around 16% in the past six months. Lower prices typically mean a better valuation.

Part of the consideration when thinking about an investment for dividends should be the profitability and operational performance.

The ASX bank share‘s latest report contained solid numbers. Cash net profit grew 7% to $11 billion.

Looking at some of the core drivers of its profit over 12 months, retail transaction accounts grew by 6% to 12.3 million, the home lending balance rose by 7% to $636 billion, business transaction accounts grew 7% to 1.4 million and business lending rose 13% to $180 billion.

However, credit demand has diminished in the last few months following interest rate rises and taxation changes to capital gains and negative gearing.

With all of the above in mind, let’s take a look at what dividends owning CBA shares could generate in 2027.

Commonwealth Bank passive dividend income projection for 2027

We’re already a few months into CBA’s 2027 financial year, so it won’t be too long until we hear about the half-year numbers.

In terms of the potential passive income, analysts are expecting an improvement of the ASX bank share’s bottom line in FY27. This could help the business deliver a bigger dividend.

Based on the estimate on CMC Invest, Commonwealth Bank is projected to pay an annual dividend per share of $5.20 in FY27. That would represent a year-over-year increase of 3%.

At the time of writing, that forecast payout translates into a dividend yield of 3.4% excluding franking credits and 4.8% including franking credits.

Is this a good time to invest in CBA shares?

According to CMC Invest, there have been eight analyst ratings in the last three months. All of those ratings from experts were a sell. So, there’s a universal view from investment professionals that the Commonwealth Bank share price is overvalued.

How overvalued do those analysts think the ASX bank share is?

A price target tells us where analysts think the share price will go over the next 12 months.

The average price target of those eight analysts is currently $123.08. Therefore, that group of analysts are collectively suggesting the CBA share price could fall by close to 20% over the next year (at the time of writing).

Therefore, it could be wise to look at other ASX share opportunities for returns.

The post If I invest $20,000 in CBA shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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.

I believe buy and hold investing is one of the best ways to build wealth over the long term.

By investing in quality businesses and giving them time to grow, investors can benefit from compounding returns without needing to constantly buy and sell shares.

And I think ASX exchange traded funds (ETFs) can be particularly useful for this approach, providing exposure to a collection of companies through a single investment.

With that in mind, here are three ASX ETFs to consider buying and holding until 2036.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

The first ETF to look at is the Betashares Global Cash Flow Kings ETF.

When investing for the long term, it makes sense to favour businesses that consistently generate strong cash flows.

After all, profits are important, but having cash available allows companies to invest in growth, reduce debt, make acquisitions, and reward shareholders.

And companies that generate plenty of cash can be better placed to navigate difficult economic conditions.

This is essentially what the Betashares Global Cash Flow Kings ETF is looking for. It invests in 200 global companies with strong free cash flow generation, while also considering factors such as debt levels and cash flow growth.

I think this approach could be well suited to investors wanting to own financially strong businesses over the next decade.

Vanguard FTSE Asia ex Japan Shares Index ETF (ASX: VAE)

Another ASX ETF that could be worth buying and holding until 2036 is the Vanguard FTSE Asia ex Japan Shares Index ETF.

I think Asia could offer some excellent long-term opportunities as its economies develop and businesses become increasingly important on the global stage.

The region is already home to major technology companies, manufacturers, financial institutions, and consumer businesses. And over the next decade, I expect rising wealth, technological development, and growing demand for products and services to create further opportunities.

This fund gives investors exposure to companies across markets including China, Taiwan, South Korea, and India. This means that rather than trying to predict which country or company will perform best, investors can gain exposure to a wide selection of Asian businesses.

For investors wanting to look beyond Australia and the United States, this could be an attractive option.

Global X Artificial Intelligence ETF (ASX: GXAI)

A final ASX ETF to consider is the Global X Artificial Intelligence ETF.

Artificial intelligence has already made enormous progress, but I think we are still relatively early in seeing how widely the technology will be adopted.

Businesses are increasingly looking at ways to use AI to improve productivity, reduce costs, and develop new products. And as the technology becomes more capable, there could be opportunities for companies across many industries to benefit.

The Global X Artificial Intelligence ETF provides exposure to businesses involved in developing AI technology, supplying the hardware needed to run it, and incorporating it into products and services.

Of course, there will be plenty of competition, and not every AI investment will deliver the returns investors expect.

But with a decade-long runway, this ETF could offer exciting long-term growth potential.

The post Buy and hold these top ASX ETFs until 2036 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.