Category: Stock Market

It was another busy week for Australia’s top brokers, with a number of new research notes being released.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares could be worth buying:

Megaport Ltd (ASX: MP1)

According to a note out of Bell Potter, its analysts have retained their buy rating on this cloud infrastructure company’s shares with a slightly reduced price target of $26.00. While the broker has lowered its valuation to reflect weaker share prices across the sector, it has actually increased its earnings forecasts. Bell Potter believes it previously underestimated the contribution from Megaport’s expanding AI infrastructure business, particularly the computing power it is supplying to customers. It now expects underlying EBITDA of approximately $770 million in FY 2028, up from its previous forecast of $726 million. The broker also highlights Megaport’s strong growth prospects, fully funded expansion plans, and attractive valuation. It estimates that the shares are trading at just six times forecast FY 2028 EBITDA. The Megaport share price ended the week at $16.50.

Paladin Energy Ltd (ASX: PDN)

A note out of Morgans reveals that its analysts have upgraded this uranium producer’s shares to a buy rating with a slightly reduced price target of $13.10. This follows Paladin’s first-quarter update, which revealed uranium production of 1 million pounds at its Langer Heinrich mine. While this was below market expectations, Morgans notes that a slow start to FY 2027 was anticipated due to a planned plant shutdown and lower recovery rates. Importantly, mining performance improved during the quarter, while the average selling price of uranium increased 12% to a record US$79.40 per pound. With Paladin shares falling recently, Morgans believes the risk-reward balance has become more favourable for investors. The Paladin Energy share price was fetching $7.32 at Friday’s close.

PLS Group Ltd (ASX: PLS)

Another note out of Bell Potter reveals that its analysts have upgraded this lithium producer’s shares to a buy rating with a trimmed price target of $4.40. According to the note, the broker has lowered its near-term lithium price forecasts due to weaker market conditions and concerns about a potential supply surplus in 2027. However, Bell Potter still sees plenty of reasons to be positive about PLS Group’s outlook. It believes the company can generate substantial earnings and cash flow at current lithium prices, particularly with the restart of its Ngungaju processing plant. The broker also highlights potential production growth from future developments, supported by long-term demand for electric vehicles and battery energy storage systems. With the recent decline in its share price, Bell Potter believes investors are being offered an opportunity to gain exposure to this growth at an attractive price. The PLS Group share price ended the week at $2.98.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Why the Paladin Energy share price “doesn’t make sense”
• 3 ASX 200 mining shares to buy with 41% to 79% upside ahead: broker
• Buy, hold, sell: Paladin Energy, Fortescue, Rio Tinto shares
• 9 ASX 200 shares experts are backing for growth amid market weakness
• PLS Group to invest $650m in Pilgangoora upgrades to fuel growth

Motley Fool contributor James Mickleboro has positions in Megaport. 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’ve been looking at ASX shares that I think the market may be underestimating in terms of what the business could achieve over the next few years.

Three companies stand out to me, each with an opportunity to deliver stronger earnings and potentially reward patient investors.

Here’s why I think they are worth buying.

WiseTech Global Ltd (ASX: WTC)

WiseTech has had a difficult period, but I think there is still an excellent business underneath the uncertainty.

Its CargoWise software is deeply embedded in global logistics operations, helping customers manage everything from shipments and customs documentation to complex international supply chains.

I like the company’s opportunity to generate more revenue from customers already using its technology. WiseTech is introducing a transaction-based commercial model, which could allow revenue to grow as customers process more activity through CargoWise.

The acquisition of e2open also gives it access to a much larger network of businesses across global supply chains.

Of course, management has plenty to prove. Integrating e2open, delivering the benefits of its new commercial model, and navigating changes brought by artificial intelligence will all require careful execution.

But with ASIC’s investigations into the company and key personnel recently concluded without enforcement action, one important uncertainty has been removed.

And I think the valuation leaves room for a recovery. WiseTech shares are trading on a PE ratio of approximately 26 times FY27 earnings, falling to around 16 times FY29 earnings based on consensus forecasts.

If management delivers the expected growth, I think WiseTech’s share price could be much higher than where it trades today.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store is another ASX share I think deserves more attention.

The retailer operates several youth-focused fashion brands, including Universal Store, Perfect Stranger, and Thrills.

What I like is its ability to develop brands that connect with younger consumers while continuing to expand its retail footprint.

There are opportunities to open additional stores, grow online sales, and improve profitability as the business becomes larger.

Despite consensus estimates forecasting solid earnings growth through to at least FY29, they are trading on a PE ratio of around 14 times forecast FY27 earnings.

There is also a forecast dividend yield of approximately 5.6% for FY27.

I think that is an attractive combination of income and growth for investors prepared to accept the risks of retailing.

Flight Centre Travel Group Ltd (ASX: FLT)

My final pick is Flight Centre, which I think could reward investors willing to wait for better conditions in the travel industry.

Geopolitical tensions, higher fuel prices, and more expensive airfares have created a difficult environment.

But Flight Centre has been using this period to strengthen its business. Management has materially reduced costs, while acquisitions made around the bottom of the travel cycle have expanded its offering in specialist markets.

I especially like its substantial corporate travel operations, where it has established relationships with businesses around the world.

As travel conditions improve, I think Flight Centre could benefit from stronger demand flowing through a leaner and more diversified business.

And investors are paying a relatively modest price for that potential. At current levels, Flight Centre trades on less than nine times forecast FY28 earnings, with an expected dividend yield of around 5% for that year.

The recovery could take time, but I think the potential reward makes the shares worth buying.

Foolish takeaway

I think all three ASX shares have a reasonable chance of being worth considerably more in a few years.

There is execution risk involved, particularly with WiseTech and Flight Centre, but I believe their current valuations leave room for attractive returns.

I’d be happy to buy at today’s prices and give these businesses time to deliver.

The post 3 undervalued ASX shares I would buy today appeared first on The Motley Fool Australia.

More reading

• WiseTech Global vs Netwealth: Which ASX tech stock could double from here?
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Appen, Flight Centre, and Telstra shares
• Should I buy WiseTech shares after today’s big news?
• If I invest $5,000 in Flight Centre shares, what passive income could I earn in FY27?

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 WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Flight Centre Travel Group and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX 200 utilities shares led the 11 market sectors with a 4.47% gain, capitalising on a 3.64% lift the week before.

ASX 200 healthcare shares rose 3.88%, adding to their 3.53% increase the week before.

Last week was the second consecutive case of these traditionally defensive sectors outperforming their peers.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) rose 1.03% to close at 8,806.7 points.

Defensive shares tend to do well amid economic uncertainty.

Investors remain worried about a potential fifth interest rate hike in November due to persistently high inflation.

Experts described a hawkish tone in the minutes of this month’s Reserve Bank (RBA) board meeting, released on Tuesday.

However, news on Thursday of a rise in unemployment to 4.7% in September eased fears of another rate hike somewhat.

The market is now pricing in a 16% chance of the RBA raising the cash rate to 4.85% next month.

Eight of the 11 market sectors finished in the green last week.

Let’s recap.

Utilities shares led the ASX sectors last week

Just 21 companies make up the ASX 200 utilities sector.

Here’s how the top companies by market capitalisation performed last week.

The Origin Energy Ltd (ASX: ORG) share price ripped 6.06% to close at $12.06 on Friday.

The APA Group (ASX: APA) share price ascended 2.37% to $11.23.

Mercury NZ Ltd (ASX: MCY) shares decreased 2.68% to $5.45 per share.

The Meridian Energy Ltd (ASX: MEZ) share price rose 4.61% to close at $4.54.

AGL Energy Ltd (ASX: AGL) shares lifted 4.27% to $8.79 apiece.

Contact Energy Ltd (ASX: CEN) shares edged 1.59% higher to $7.04 per share.

Genesis Energy Ltd (ASX: GNE) shares fell 1.28% to $1.94.

The LGI Ltd (ASX: LGI) share price soared 6.84% to $2.50.

In the healthcare sector, CSL Ltd (ASX: CSL) shares rose 4.55% to $192.20.

Sigma Healthcare Ltd (ASX: SIG) shares increased 5.95% to $2.85 apiece.

The Resmed CDI (ASX: RMD) share price ascended 5.43% to $34.35.

The Pro Medicus Ltd (ASX: PME) share price rose 6.03% to $175.73.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Utilities (ASX: XUJ)	4.47%
Healthcare (ASX: XHJ)	3.88%
Consumer Staples (ASX: XSJ)	3.35%
Financials (ASX: XFJ)	3.2%
Consumer Discretionary (ASX: XDJ)	2.15%
Energy (ASX: XEJ)	1.31%
Industrials (ASX: XNJ)	0.61%
Communication (ASX: XTJ)	0.42%
Information Technology (ASX: XIJ)	(1.28%)
A-REIT (ASX: XPJ)	(1.73%)
Materials (ASX: XMJ)	(2.31%)

The post ASX 200 utilities and healthcare shares win the week again appeared first on The Motley Fool Australia.

More reading

• Why these are my favourite ASX growth shares to buy and hold
• If I could only buy 5 ASX shares for retirement, these would make my shortlist
• Here’s the average superannuation balance at 60 and 70 in Australia
• Here are the top 10 ASX 200 shares today
• 9 ASX 200 shares experts are backing for growth amid market weakness

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 positions in and has recommended CSL and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Apa Group and ResMed. The Motley Fool Australia has recommended CSL, LGI Limited, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

WiseTech Global vs Netwealth Group shares: Which beaten-down stock could rebound?

Looking for a quality bounce after some tough months? Both WiseTech Global Ltd (ASX: WTC) and Netwealth Group Ltd (ASX: NWL) have copped a beating in 2026, catching the eye of contrarian investors hoping for a big comeback. If you’re wondering which of these two ASX tech stocks is more likely to double from here, let’s break down their businesses, financials, and recent momentum.

The case for WiseTech

WiseTech Global is a leading logistics software provider, well known for its CargoWise One platform. Its clients include top global freight forwarders—think names like Toll and DHL—allowing it to play a central role in streamlining complex global supply chains. Founded in Sydney in 1994, WiseTech now has a major international footprint. While the company profile highlights its reach and innovation, most recently confirmed user or revenue numbers weren’t available in the supplied data.

A few things stand out in the numbers:

• Market cap of $11.28 billion makes WiseTech a significant force in the tech sector.
• P/E ratio sits at 43.47, which is substantial, but arguably not strange for a high-growth software business.
• EPS is 0.532, and the dividend yield is a modest 0.66%. All dividends are fully franked, which is handy for tax-conscious Aussie investors.
• Year-to-date (YTD) WiseTech shares are down a hefty 51.3%, so it’s fair to say sentiment is gloomy, but steep declines can sometimes mean the sharpest rebounds—if business momentum returns.

The case for Netwealth

Netwealth Group is another Australian tech success story, though its focus is on wealth management platforms and superannuation services. The firm provides cloud-based admin software and managed accounts to advisers, private clients, and institutions, charging SaaS fees largely based on funds under administration.

Netwealth’s investment case leans on these features:

• Market cap is $4.12 billion, much smaller than WiseTech but still firmly mid-cap territory.
• P/E ratio is comparatively high at 68.50 (not unusual for platform businesses with sticky customers, though definitely toward the upper end of ASX valuations).
• EPS is 0.247 and the dividend yield is much higher at 2.48%, with all dividends 100% franked.
• Netwealth shares are down 32.5% YTD—a painful slide, but far less extreme than WiseTech’s recent plunge, making the prospective “double from here” a less herculean task if sentiment changes.

Valuation comparison

Let’s look at how the key numbers stack up side by side:

Metric	WiseTech	Netwealth
Market Cap	$11.28 billion	$4.12 billion
P/E Ratio	43.47	68.50
EPS	0.532	0.247
Dividend Yield	0.66%	2.48%
Dividend Franking	100%	100%
YTD Return	-51.3%	-32.5%

A quick note: Netwealth Group’s P/E ratio is much higher than WiseTech’s, despite having a significantly lower EPS. This usually implies investors expect more future growth from Netwealth or see its earnings as higher quality. But with both companies in different parts of the tech space, direct P/E comparisons need some caveats—platform SaaS versus global logistics have different typical multiples.

Recent share price momentum

Comparing recent share price performance up to 13 October 2026:

• WiseTech Global closed at $33.11 on 13 October 2026, after dropping 2.8% that day. Momentum has been volatile with sharp losses and gains, but the overall trend remains deeply negative for the year.
• Netwealth Group finished at $16.92 on the same date, down 3.0%. Its short-term trading has been choppy too, especially after an 8%+ drop in late September, but the losses haven’t been as brutal as WiseTech’s over 2026.

Which is the better buy?

If I’m picking which beaten-down stock is more likely to double from today, I’d lean toward WiseTech Global. Here’s my reasoning:

• The market has hammered WiseTech far harder in 2026, with shares sinking over 51%. That kind of sell-off can sometimes (not always!) be a set-up for a sharp recovery, especially given the company’s global reach, strong customer base, and mission-critical software.
• WiseTech’s valuation, while not low, is meaningfully below Netwealth’s on a P/E basis (43.5 vs 68.5). They’re different kinds of businesses, but I’d rather back a global tech leader with a lower multiple if I’m hunting for a rebound.
• The dividend yield is low on both, but fully franked. Netwealth pays more, but if I’m after a potential double, it’s capital growth that matters more, not yield.
• Netwealth hasn’t fallen anywhere near as far, so a double from here would require an even bigger surge in optimism and growth. That feels less likely unless the business suddenly accelerates.
• Of course, turnarounds are always risky. There’s no guarantee WiseTech will be back in favour soon—sentiment could worsen before it improves.

For those willing to stomach volatility in exchange for the potential of outsized gains, WiseTech looks like the better bet to stage a double from here—though it’s not one for the faint-hearted!

The post WiseTech Global vs Netwealth: Which ASX tech stock could double from here? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• This high-quality ASX 200 share could rise 60%
• 5 things to watch on the ASX 200 on Friday
• Should I buy WiseTech shares after today’s big news?
• Netwealth reports record FUA and platform growth in September 2026 quarter

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group and WiseTech Global. The Motley Fool Australia has positions in and has recommended Netwealth Group and WiseTech Global. 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.

I’ve chosen a few ASX shares to be key sources of dividend income from my portfolio. There are four names that currently account for around 75% of the passive income I receive.

I’m a big fan of dividend income because I can use that cash flow in my own life to pay for discretionary spending or essentials. It’d be great if, one day in the future, my total dividends could cover my mortgage payment. I’m not there yet, though.

Australians can receive an elevated level of dividend income from their ASX investments thanks to the benefit of franking credits. These are refundable tax credits that can reduce the tax owed or increase the tax refund for individuals.  

I don’t pick an investment just because of franking credits. I’ll mention that I’m also a fan of exchange-traded funds (ETFs) and real estate investment trusts (REITs) that don’t attach franking credits to their payments.

There are a few factors that I do look for when considering ASX dividend shares.

I want to see that the investment has a compelling outlook to increase its underlying value over time, whether that’s earnings growth, rental profit growth or growth in its net tangible assets (NTA) per share.

I like to see a track record of dividend growth because it shows reliability and the board’s commitment to paying shareholders passive income during uncertain economic times.

I’d also like to see a solid starting dividend yield. If I’m investing for passive income, I want to see a good level of dividends in the first year of ownership and growth from there. But I’m wary of investments that pay huge yields because that could be unsustainable.

With those goals in mind, let’s run through which ASX dividend shares I’m confident will continue to play a huge role in my household’s cash flow. I’ll go through them in alphabetical order.

L1 Long Short Fund Ltd (ASX: LSF)

This first ASX dividend share is a listed investment company (LIC). I like the LIC structure because it can provide a winning combination of diversified investment exposure, growing dividends, a good dividend yield and capital growth, as long as the portfolio performs.

There are a variety of LICs that follow different investment strategies. I like the L1 Group Ltd (ASX: L1G) strategy of avoiding what the investing crowd is chasing. Growing businesses with low price/earnings (P/E) ratios can deliver strong returns if bought at the right time.

L1 Long Short Fund looks at both ASX shares and international shares for investment opportunities, using both ‘long’ investing and short selling to find stocks that could deliver returns.

I like how it’s willing to look beyond the tech and banking sectors, which dominate the global and ASX markets, respectively. Its three most fruitful sectors for returns have been materials, industrials and communication services.

Past performance is not a guarantee of future performance, but its portfolio has produced an average return of 15% per year in the last five years and 20.4% per year in the last seven years. That shows it can perform strongly by picking stocks some investors may avoid.

It started paying a dividend in 2021 and has increased the payout each financial year since. If it continues the same progressive dividend policy, its next quarterly dividend is likely to be 11.4% higher than the quarterly payment 12 months prior. I’d say that’s a solid growth rate.

I expect the next 12 months of dividends will total at least 16.2 cents per share, which translates into a grossed-up dividend yield of 5.25%, including franking credits, at the time of writing.

MFF Capital Investments Ltd (ASX: MFF)

This second ASX dividend share is another LIC.

It targets a portfolio of high-quality shares that have strong competitive advantages and an above-average outlook for profit growth.

MFF is willing to invest anywhere in the world if it finds an opportunity. Its portfolio includes some of the strongest businesses in the international stock market, including several leading US tech giants, among other names.

Over time, the shares in the portfolio may change, but I expect the LIC’s holdings will collectively continue to deliver pleasing results (with both profit growth and capital growth).

It has grown its annual regular dividend nine years in a row and it has provided dividend guidance that suggests it will reach a decade of continuous growth. MFF expects to pay a half-year dividend of 12 cents per share and I expect the full-year dividend will be 25 cents per share.

At the time of writing, that potential payout translates into a grossed-up dividend yield of 7%, including franking credits, at the time of writing.

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

I’ve held this ASX dividend share longer in my portfolio than any other stock. It’s an investment house that has operated for more than 120 years.

The business has built an impressive and diversified portfolio of assets that are largely defensive and generate resilient cash flow. It’s invested across areas such as energy, swimming schools, telecommunications, agriculture, real estate, building products, electrification, financial services, credit, fixed income and more.

Its defensive and growing cash flow has allowed Soul Patts to increase its annual dividend every year since 1998, which is the best record on the ASX for consistent dividend growth.

The company has also delivered shareholders some sort of dividend every year since its listing in 1903, including through the world wars and major economic declines.

Soul Patts doesn’t pay out all of its cash profit each year – it’s currently retaining approximately a quarter of its cash earnings to re-invest in more opportunities and grow the portfolio value.

Its FY26 payout translates into a grossed-up dividend yield of 3.4%, including franking credits, at the time of writing.

WCM Global Growth Ltd (ASX: WQG)

The final ASX dividend share I want to highlight is another LIC, which is managed by fund manager WCM. WCM is based in Laguna Beach, California, a deliberate choice to be far from Wall Street culture in New York.

WCM Global wants to find quality global stocks. Its portfolio is spread across the world, mostly in the Americas, Europe and Asia Pacific – I like the diversification that can provide our portfolios.

There are two features that WCM wants to see from its stock picks.

It wants to find businesses with a widening economic moat (improving competitive advantages, measured by a strengthening return on invested capital (ROIC)).

WCM also wants to see evidence that the business has a corporate culture that supports the strengthening of the economic moat, which is an essential ingredient for long-term success.

The ASX dividend share has increased its payout every financial year since FY19, and it’s now increasing the payout each quarter. The next year’s dividend is guided to be 10.1 cents per share, which translates into a grossed-up dividend yield of 7.3%, including franking credits, at the time of writing.

I think all four of these stocks have a very promising future for dividend growth and total returns. I’d be very happy to buy shares today, and I plan to buy more in the coming weeks and months. I’ve also got my eyes on a few other investments.

The post 75% of my dividends come from these 4 ASX shares (and I want to buy more) appeared first on The Motley Fool Australia.

More reading

• Why this ASX dividend share is a retiree’s dream for 2027
• How much is needed in superannuation to target a $7,500 monthly passive income?
• The 3 factors that have helped me build a six-figure ASX share portfolio at 35
• CBA vs Soul Patts: Which ASX share wins in 2026?
• How much is needed in superannuation to target a $100,000 annual passive income?

Motley Fool contributor Tristan Harrison has positions in L1 Group, L1 Long Short Fund, Mff Capital Investments, Washington H. Soul Pattinson and Company Limited, and Wcm Global Growth. 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 Mff Capital Investments and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Aurizon vs Atlas Arteria shares: Which high-yield ASX 200 stock is better for safe passive income?

Thinking about parking your hard-earned cash in a top-yielding ASX 200 stock for some peace-of-mind passive income? Aurizon Holdings Ltd (ASX: AZJ) and Atlas Arteria Ltd (ASX: ALX) are both popular picks among income-focused investors, and each has its loyal fan base. But when you’re weighing up Aurizon vs Atlas Arteria shares, which one stands out as the better option for those craving a regular, reliable dividend stream? Let’s break down the essentials.

The case for Aurizon

Aurizon is Australia’s largest rail freight operator, moving a hefty volume of commodities—like coal, grains, iron ore, and more—across the country’s vast rail and road network. The company operates three main segments: Network (which covers the regulated coal rail infrastructure in Queensland), Coal (for coal haulage), and Bulk (for diversified freight, recently boosted by the acquisition of One Rail). With over 2,600km of essential rail track under a 99-year lease, Aurizon sits at the heart of Australia’s commodity supply chain.

A few things jump out from the numbers:

• Market cap sits at $6.31 billion, making Aurizon a sizeable player on the ASX.
• Its dividend yield of 6.08% stands comfortably above the market average, and franking sits at 90%—a real plus for Aussie investors chasing after those valuable franking credits.
• The company’s latest reported earnings per share is $0.211, supporting a dividend per share of $0.23, and giving a P/E ratio of 17.91.

Recent dividend history shows Aurizon paying semi-annual dividends, with franking levels mostly between 60% and 100%. This track record of regular payments, plus relatively high franking, gives some comfort to investors seeking steady, tax-effective income.

The case for Atlas Arteria

Atlas Arteria operates in a different world: international toll roads. The business was spun out of Macquarie Infrastructure Group and owns interests in five toll roads across France, Germany, and the United States. Its core asset is a substantial stake in APRR, a major French toll road network with long-dated concessions, and it also owns the Dulles Greenway in the US.

On the income front, Atlas Arteria goes big:

• Its market cap is $5.49 billion, slightly smaller than Aurizon.
• The dividend yield—at a mouth-watering 10.31%—is one of the highest on the index right now.
• However, ALX dividends are unfranked, which may make a difference for investors comparing take-home income after tax.
• Earnings per share are $0.077, with a dividend per share of $0.40. The P/E ratio is 50.39—a lot higher than Aurizon’s.

Atlas Arteria has a long-standing history of semi-annual, sizeable cash dividends, but none of its payments are franked. For yield hunters, though, the cash on offer is hard to ignore.

Valuation comparison

Here’s a side-by-side look at the key numbers:

Metric	Aurizon Holdings	Atlas Arteria
Market Cap	$6.31 billion	$5.49 billion
P/E Ratio	17.91	50.39
Dividend Yield	6.08% (90% franked)	10.31% (unfranked)
Dividend per Share	$0.23	$0.40
Earnings per Share	$0.211	$0.077

Note: Atlas Arteria’s reported P/E ratio may be based on a different earnings measure (for example, underlying or forward earnings) than the EPS shown here, which is why these figures may not quite line up mathematically.

Aurizon trades on a much lower P/E and higher EPS, but Atlas Arteria counters with a far higher cash yield—though without franking credits.

Which is the better buy?

If I’m picking between these two giants for a safer, sustainable passive income stream, my vote goes to Aurizon.

Here’s why: Although Atlas Arteria offers a juicier headline yield at over 10%, those dividends are fully unfranked, so the income may end up being less tax efficient for Aussie investors once you factor in personal rates. Meanwhile, Aurizon’s 6.08% yield is nearly all franked—making the take-home cash for Australian taxpayers potentially much higher. Aurizon also sports a lower P/E ratio, suggesting the market isn’t demanding such a sky-high price for its profit.

Atlas Arteria’s impressive dividend looks tempting, but that P/E is elevated relative to Aurizon. Without multi-year earnings trend data here, it’s tough to dig deeper, but the numbers nudge me toward Aurizon as the more balanced, reliable passive income play in this match-up.

The post Aurizon Holdings vs Atlas Arteria: Which ASX 200 high-yield share wins for reliable passive income? appeared first on The Motley Fool Australia.

More reading

• 3 great ASX dividend shares with 7%+ yields
• How much is needed in superannuation to target $2,000 a week in passive income
• If I invest $15,000 in Atlas Arteria shares, how much would I get in dividends?
• Here are the top 10 ASX 200 shares today
• Atlas Arteria flags French tax hikes may impact toll road revenues

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.

There are plenty of ASX shares that could deliver strong growth over the next few years.

But I particularly like businesses that have already built something successful and still have plenty of room to expand.

Here are three ASX growth shares I would be happy to buy today and hold for many years.

Breville Group Ltd (ASX: BRG)

Breville is one of my favourite examples of an Australian business that has successfully taken its products to the world. The company has built a reputation in premium kitchen appliances, particularly coffee machines.

What I like is how Breville has positioned itself in a market where customers are often willing to spend more for better equipment.

Making coffee at home has become a serious hobby for many people, and Breville has developed products catering to everyone from beginners to enthusiastic home baristas.

I also think there is considerable potential for Breville to build on its international success. The company already has a presence in major markets, but there are still countries where its brands have room to become more established.

Of course, premium appliances are discretionary purchases, so weaker consumer spending can affect sales. But over the next decade, I think Breville has a realistic opportunity to become a much larger global business.

Xero Ltd (ASX: XRO)

Xero is another ASX growth share I would be comfortable backing for the long term. One thing I particularly like about the accounting software provider is how important its platform becomes to customers once they start using it.

A small business might initially sign up to manage its accounts, but over time it can begin using Xero for invoicing, payroll, payments, and other financial tasks.

Accountants also become familiar with their clients’ systems, making the platform an important part of how businesses manage their finances.

I think that creates valuable customer relationships that can last for years. It also gives Xero opportunities to generate more revenue from customers as they adopt additional services.

The acquisition of Melio is particularly interesting because it strengthens Xero’s payments offering and could help accelerate its expansion in the United States.

There are execution risks and artificial intelligence (AI) could be a threat. But with millions of small businesses around the world still relying on older systems, I think Xero has a substantial market opportunity ahead.

Sigma Healthcare Ltd (ASX: SIG)

My final pick is Sigma Healthcare, which I think could look considerably different by 2035.

The combination of Sigma and Chemist Warehouse has created a business with an extensive pharmacy retail network and substantial pharmaceutical distribution operations.

I am particularly interested in its international ambitions. Chemist Warehouse has already demonstrated that its retail model can work outside Australia, and there could be significant opportunities to build its presence in new markets over time.

Healthcare and pharmacy spending should also benefit from ageing populations and ongoing demand for medicines and related products.

I think this positions Sigma to grow into a much larger company over the next decade.

Foolish takeaway

I would be happy owning all three shares for the long term.

Each has an established business and opportunities to grow well beyond its current size.

For me, the prospect of seeing what these companies could become over the next five to ten years makes them worth buying and holding today.

The post Why these are my favourite ASX growth shares to buy and hold appeared first on The Motley Fool Australia.

More reading

• 9 ASX 200 shares experts are backing for growth amid market weakness
• I investigated 3 ASX shares that have fallen sharply. Are they bargains or value traps?
• Droneshield vs Xero: Which ASX tech stock is the better buy for a young growth investor?
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Xero, Ansell, Wesfarmers shares

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 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.

It is easy, with a long-term investment like superannuation, to “set and forget” and just assume it’s working as it should.

It is a dangerous trap to fall into, however, and the impact can be large.

Compound interest impacts can be large

Some superannuation funds are perennial underperformers, and if you’re stuck in one of those, you’ll be leaving a lot on the table.

As an example, just a 0.5% difference in performance can have a large effect.

If you invest $100,000 for 20 years at a 5% rate of return, you’ll end up with $265,330.

But if you add just 0.5% to that rate of return, you end up with $291,776 over the same period.

So how do you perform your own superannuation health check?

The easiest way to do this is to use the Federal Government’s YourSuper comparison tool, which can be found on the Australian Taxation Office website.

As the website explains:

The YourSuper comparison tool helps you compare super funds based on their performance. You can access a personalised version or a non-personalised version of the tool. The advantage of using the personalised version via myGov is we show you what your existing super accounts are and you can compare those with others in the tool.

The comparison tool displays a table of MySuper products which are ranked by net returns, updated quarterly, as well as the fees charged by funds.

MySuper products are the default investment option that people are placed into if they don’t choose their own investment option when setting up a fund.

The comparison tool allows you to select up to four superannuation products at a time and will show you the past net returns for three, five, and 10 years, the investment strategy, and the total annual fees.

Check the details of your investments

Beyond confirming that your superannuation fund is performing adequately, it’s also worth assessing whether your investment settings are suitable.

Most funds offer options such as balanced, growth, and high growth, which may be more or less appropriate depending on your risk tolerance, age, and the outlook for the global economy.

The guidance of a financial planner can be helpful in deciding which setting is right for you.

And finally, it’s always good to ensure you are not running more than one superannuation fund at one time, and thereby paying management fees on each.

It’s easy, particularly while young, to accrue more than one fund, but a simple search of your myGov account can tell you whether you have more than one fund in operation, and they’re fairly easy to roll into one. 

The post Is your superannuation fund any good? How to compare performance and fees appeared first on The Motley Fool Australia.

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• If I could only buy 5 ASX shares for retirement, these would make my shortlist
• Here’s the average superannuation balance at 60 and 70 in Australia
• Why the Paladin Energy share price “doesn’t make sense”
• ANZ vs Westpac shares: Which big four bank is the better buy for $5,000?
• Why I’d invest $5,000 into these Betashares ETFs

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

If I were building an ASX share portfolio for retirement, there are a few things I would prioritise.

Naturally, dividend income would be important. After all, having regular payments arriving in your bank account could make retirement much more enjoyable.

But I wouldn’t simply look for the shares with the biggest dividend yields.

Retirement could last 20 or 30 years, and I would want to own businesses that have a reasonable chance of growing their earnings and dividends over that time.

I would also favour established companies with strong market positions, dependable cash flows, and businesses that I can see remaining relevant for decades.

With that in mind, here are five ASX shares that would make my shortlist.

APA Group (ASX: APA)

The first ASX share I would consider is APA Group.

I think infrastructure businesses can be particularly well suited to a retirement portfolio, especially when they own assets that customers depend on and cannot easily replace.

APA certainly fits that description. The company operates an extensive network of gas pipelines, processing facilities, storage assets, and electricity transmission infrastructure across Australia.

Many of its customers rely on this infrastructure to keep their own operations running, which helps APA secure long-term agreements and generate relatively predictable cash flows.

And that is the sort of business I would want supporting my retirement income.

While APA has significant investments to make as Australia’s energy requirements change, it already has an established asset base generating substantial cash.

In FY 2026, the company delivered underlying EBITDA growth of 8.3% and increased its annual distribution to 58 cents per security. Management expects another increase to 59 cents in FY 2027, which will mark its 23rd annual increase in a row.

Looking ahead, APA has a substantial development pipeline that could keep earnings and dividend growth going for a long time to come.

APA gives me a good starting point, but I would want more than energy infrastructure supporting my retirement income.

The other four companies bring different strengths to the portfolio, including some with excellent dividend growth potential.

So, let’s look at why I think they could be worth owning for the next 20 or 30 years.

Telstra Group Ltd (ASX: TLS)

Another ASX share I would put on my retirement shortlist is Telstra.

I don’t expect Telstra to become a spectacular growth company, but that isn’t really what I’m looking for here.

What I like is that telecommunications has become an essential part of everyday life, and Telstra has a leading position in the Australian market.

Millions of customers pay for mobile and internet services every month, giving the company a recurring source of revenue.

Telstra has also demonstrated that it can increase prices while continuing to grow its mobile subscribers.

This has helped support earnings and dividend growth, with the company lifting its annual dividend by 10.5% to 21 cents per share in FY 2026.

And thanks to its Connected Future 30 strategy, I think Telstra could continue providing shareholders with a useful combination of income and modest earnings growth.

Transurban Group (ASX: TCL)

I would also want some exposure to transport infrastructure, which is where Transurban comes in.

The company owns and operates major toll roads across Australia and North America.

What I like about Transurban is the potential for its existing assets to become more valuable as cities grow.

Building major roads through established urban areas is extremely difficult and expensive. That puts Transurban in a strong position where it already operates important routes.

And with many of its concessions allowing tolls to increase over time, the company has opportunities to grow revenue without needing traffic volumes to rise significantly every year.

That could be particularly valuable during retirement, when inflation can gradually reduce the purchasing power of your income.

Transurban is expecting to pay distributions of 72 cents per security in FY 2027, up from 69 cents in FY 2026.

Overall, I think its long-lived assets and potential for growing distributions make it a strong candidate for a retirement portfolio.

Wesfarmers Ltd (ASX: WES)

Another ASX share I would be very comfortable owning over a long retirement is Wesfarmers.

I have a lot of respect for the company and the way it has been managed over the years.

It owns some excellent retail brands, including Bunnings, Kmart, and Officeworks, while also operating in healthcare and industrial markets.

But I think one of Wesfarmers’ greatest strengths is its ability to make sensible decisions about where to invest its money.

Management has demonstrated a willingness to expand successful businesses, develop new opportunities, and exit investments that no longer justify their place in the group.

That approach has helped Wesfarmers deliver excellent long-term returns to shareholders.

And the company continues to perform well, with underlying net profit increasing 8.3% in FY 2026.

I wouldn’t necessarily expect Wesfarmers to offer the biggest dividend yield on my shortlist. However, I think its earnings growth potential and disciplined management could allow dividends to increase considerably over a lengthy retirement.

Woolworths Group Ltd (ASX: WOW)

A final ASX share I would consider is Woolworths.

I think the supermarket giant has many of the qualities I would want in a retirement investment.

Its supermarkets serve millions of Australians every week, generating substantial revenue from products that households need regardless of economic conditions.

And after a challenging period, Woolworths is showing signs of being back on track.

Its Australian Food division reported an 8.5% increase in EBIT in FY 2026, demonstrating the progress being made in improving profitability.

With its enormous store network, strong brands, and established customer relationships, I believe Woolworths is well positioned to keep growing earnings and dividends over the long term.

Of course, with its shares now trading near record highs, investors are paying a premium for that quality.

But for someone building a retirement portfolio with a 20- or 30-year investment horizon, I think Woolworths could still be an excellent company to have on their shortlist.

Final word

Of course, I wouldn’t necessarily limit an actual retirement portfolio to just five ASX shares.

I would want greater diversification, potentially including international investments and some cash or defensive assets.

But if I were narrowing down the ASX to a handful of companies capable of supporting my retirement income for many years, these five would certainly deserve a place on my shortlist.

The post If I could only buy 5 ASX shares for retirement, these would make my shortlist appeared first on The Motley Fool Australia.

More reading

• 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?
• Telstra vs ANZ: Which ASX blue chip is better for retirees?
• Here are the top 10 ASX 200 shares today

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

You might expect Australians in their early 70s to have less superannuation than those in their early 60s. After all, many people have stopped working by that age and may have spent several years drawing on their retirement savings.

Interestingly, the latest figures show the opposite, with Australians in their early 70s holding more super on average than those a decade younger.

So, what are the numbers, and what can they tell us about retirement?

The average superannuation balance at 60

According to Moneysmart, using the latest Australian Prudential Regulation Authority (APRA) data, Australians aged 60 to 64 have an average superannuation balance of $270,800.

This provides a rough guide for someone turning 60, although individual balances will vary considerably depending on their working history, earnings, contributions, and investment returns.

At this age, retirement plans can look very different from person to person. Some Australians have already finished working, while others intend to continue for several more years.

That is important because retiring at 60 can mean funding seven years of living expenses before reaching Age Pension eligibility at 67. Someone who continues working, meanwhile, may have the opportunity to build their balance further while delaying withdrawals.

What about at age 70?

By age 70, many Australians have already spent several years in retirement, but that doesn’t necessarily mean their superannuation balances have fallen significantly.

According to the latest figures, Australians aged 70 to 74 have an average superannuation balance of $312,000, which is higher than the $270,800 average for those aged 60 to 64.

One reason retirees can maintain substantial balances is that their super generally remains invested after they stop working. While they may be withdrawing money to fund their lifestyles, the remaining savings can continue generating investment returns.

Others may have delayed retirement or continued working part time, allowing them to preserve more of their savings. They may also be half of a couple, sharing expenses and depleting their balances slower.

How do these figures compare with retirement targets?

The Association of Superannuation Funds of Australia estimates that a single homeowner needs approximately $630,000 at retirement to support a comfortable lifestyle, while a couple needs around $730,000 combined.

Both average balances are well below the single-person benchmark, but that doesn’t necessarily mean Australians with these amounts will struggle financially.

The Age Pension can provide an important source of income for eligible Australians from age 67, while couples may benefit from combining their super balances and sharing household expenses.

Retirement timing also makes a significant difference. Someone retiring at 60 may need to fund seven years of living expenses before reaching Age Pension age, whereas a person retiring at 70 is already old enough to qualify, subject to their financial circumstances and other eligibility requirements.

Ultimately, whether a particular super balance is enough will depend on when you retire, your expected living expenses, and what other sources of income you have available. This is why retirement planning needs to go beyond simply comparing your balance with the national average.

The post Here's the average superannuation balance at 60 and 70 in Australia appeared first on The Motley Fool Australia.

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• Average superannuation balance at 45. How does yours compare?
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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.