Category: Stock Market

It’s a good time to consider whether the Westpac Banking Corp (ASX: WBC) share price is a buy after the ASX bank share recently announced its FY26 first-quarter update for the three months to 31 December 2025.

Westpac reported that it generated $1.9 billion of statutory net profit, which was 5% higher than the FY25 second half average. Excluding notable items, the underlying net profit was $1.9 billion, representing 6% growth.

Let’s take a look at what broker UBS thought of the result and whether the ASX bank share is appealing.

UBS view on the result

The broker noted that the FY26 first-quarter result was not as well-received as peers in the ASX bank share space, despite cash net profit being 6.8% ahead of expectations.

UBS highlighted that revenue growth was underpinned by stronger lending, despite the net interest margin (NIM) declining by 1 basis point (0.01%) quarter over quarter.

The broker said that the ASX bank share’s common equity tier 1 (CET1) was 12.31%, a reduction of 22 basis points (0.22%) compared to the second half of FY25, but this is expected to lift organically in the second quarter of FY26, as well as there being a boost (22 basis points) from the RAMS sale, giving Westpac capital flexibility.

UBS said costs were the standout, down 5% compared to the second half of FY25 (excluding notable items). Management are pursuing productivity savings of more than $500 million in FY26, with some of that driving UBS to increase its earnings per share (EPS) expectations for Westpac.

The broker noted that the bank’s tilt towards business and institutional is continuing, with the overall company showing “strong momentum”. Gross loans and advances (GLA) grew by around 10%, driven by institutional lending, and deposits increasing by 6.7% on an annualised basis.

UBS also said that the broader sector is improving, supported by credit growth, particularly in wholesale lending and stable asset quality

Based on the quarterly update, UBS increased the FY26 EPS estimate by 2.4%, grew the FY27 EPS estimate by 2% and decreased the FY28 EPS estimate by 1.3%.

Is the Westpac share price a buy?

UBS has a neutral rating on the ASX bank share, with a price target of $40. A price target is where analysts think the share price will go over the next 12 months. Therefore, UBS is suggesting that Westpac could slightly fall over the next year.

The broker forecasts that the business could deliver $2.15 of EPS in FY26, which translates into the ASX bank share trading at 19x FY26’s estimated earnings, meaning that it’s trading at a much higher earnings multiple than it has historically, according to UBS.

The post Is the Westpac share price a buy today? Here’s an expert view appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Northern Star, Temple & Webster, and Westpac shares
• Here’s an ASX 200 share that I think could beat Westpac in 2026
• Westpac shares hit new record high on Q1 update
• Westpac posts $1.9bn profit in 1Q26 as digital push and lending gains continue
• What’s going on with ASX bank stocks this week?

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.

If you’re willing to be patient, Bell Potter thinks the ASX dividend stock in this article could be worth considering.

That’s because the broker believes that after a period of no dividends, this stock could be positioned to provide a dividend yield of 9% in 2027 and then 10% in 2028.

Which ASX dividend stock?

The stock that Bell Potter is tipping as a buy is Healthco Healthcare and Wellness REIT (ASX: HCW).

It is an externally-managed REIT under parent HMC Capital Ltd (ASX: HMC), which manages around $1.4 billion of healthcare assets. This includes investment in hospitals, aged care, childcare, government, life sciences, and primary care & wellness property assets.

Among its tenant base is a combination of large-scale operators including Healthscope (HSO) and Acurio, as well as the Australian Government, which is the third biggest tenant by gross income.

What is the broker saying?

Its shares have come under significant pressure over the past 12 months due to its exposure to the struggling HSO business.

Commenting on recent developments, the broker said:

All 11 HSO hospitals continue to operate as normal, with 100% of all rent due having been paid, and state-by-state executable lease agreements with alternate operators remains in place as per prior. Incrementally though, HCW now expects upon new leases being struck the terms would include face rents to remain unchanged and incentives would indicatively result in a 10-15% near-term reduction to asset values.

The HSO receiver-led process remains the key determinant in potential pathways head, particularly in regards to UHF equity investment and HCW distribution’s recommencing (BPe 1QFY27).

Dividend forecast

Bell Potter doesn’t believe there will be any dividends in FY 2026. However, it is expecting them to recommence in FY 2027 with a dividend of 6.3 cents per share. The broker then expects a dividend of 7.5 cents per share in FY 2028.

Based on its current share price of 70 cents, this would mean dividend yields of 9% and 10.7%, respectively, over the two years.

In addition, the broker sees plenty of upside for this ASX dividend stock from current levels. It has a buy rating and 95 cents price target. This suggests that its shares could rise by 36% between now and this time next year.

Commenting on its buy recommendation, the broker said:

No change to our Buy rating. HCW trades at a material -50% discount to NTA which is the widest in our sector coverage, notwithstanding +26bp cap rate expansion at the result (c.+40bps for HSO-tenant assets) and additional detail on potential asset devaluations which implies a higher valuation than the current share price implied.

The post Guess which ASX stock could pay a 9% dividend yield in 2027 appeared first on The Motley Fool Australia.

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• Why Bougainville Copper, Brainchip, Challenger, and HMC Capital shares are falling today
• 1 ASX dividend stock down 64% I’d buy right now
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended HMC Capital. The Motley Fool Australia has recommended HMC Capital. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Growth shares haven’t had an easy run of late. Higher interest rates, concerns about valuations, and fears around AI disruption have all weighed heavily on this side of the market.

But history shows that sharp selloffs can set the stage for powerful rebounds once sentiment stabilises.

If confidence returns to growth in 2026, these three ASX shares could be well placed to bounce back strongly according to analysts.

NextDC Ltd (ASX: NXT)

The first ASX growth share that could rebound strongly is NextDC. It operates critical data centre infrastructure supporting cloud providers, enterprises, and government agencies. Demand for data storage and processing continues to rise, particularly with the expansion of AI workloads.

Yet like many ASX growth shares, NextDC has experienced volatility amid broader market weakness.

If investor appetite for infrastructure-backed growth returns in 2026, NextDC’s long-term expansion pipeline and exposure to digital infrastructure could support a meaningful rebound.

Macquarie currently has an outperform rating and $22.30 price target on its shares. Based on its current share price of $13.90, this implies potential upside of 60% for investors.

WiseTech Global Ltd (ASX: WTC)

Another ASX growth share that could rebound hard is WiseTech Global.

WiseTech’s CargoWise platform sits at the core of global freight and logistics operations. It is deeply embedded in customers’ workflows, with high switching costs and recurring subscription revenue.

Its share price has been pressured by broader tech sector weakness and AI disruption concerns. However, this type of software is very complex and would be very hard for AI to disrupt.

If investors begin to refocus on structural earnings growth rather than short-term macro noise, WiseTech could see sentiment recover quickly.

Bell Potter currently has a buy rating and $87.50 price target on WiseTech’s shares. Based on its current share price of $47.34, this suggests upside of 85% is possible between now and this time next year.

Xero Ltd (ASX: XRO)

A final ASX growth share with rebound potential is Xero.

Xero has been caught up in concerns that artificial intelligence could lower barriers to entry in accounting software. While that risk can’t be dismissed, the company’s platform remains deeply integrated into the operations of small and medium-sized businesses.

Subscriber growth, international expansion, and ecosystem development continue to underpin the long-term story.

After a significant pullback from previous highs, expectations have been reset. If Xero delivers steady execution, even modest positive surprises could drive a sharp share price recovery.

UBS has a buy rating and $174.00 price target on Xero’s shares. Based on its current share price of $78.50, this implies potential upside of 120% for investors over the next 12 months.

The post 3 ASX growth shares that could rebound hard in 2026 appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs to target if you anticipate a tech turnaround 
• Why this top fundie is doubling down on ASX 200 tech stocks like TechnologyOne and Xero shares
• Why are ASX 200 tech shares down 43% in six months?
• Where to invest $10,000 in ASX shares right now
• ASX recap: 5 most traded shares last week

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

The S&P/ASX 200 Index (ASX: XJO) is on the rise again this week, up 0.24% at the close of the index on Tuesday. As we edge further into the reporting season, some ASX shares are rocketing off the back of strong results while other stocks are sliding.

Here are three ASX shares I have my eye on this week.

CSL Ltd (ASX: CSL) 

The ASX biotech share was one of the most-traded stocks on the index last week. The company’s shares crashed nearly 17% last week after a soft half-year result and a shock CEO exit saw investors sell-up in panic. The latest downturn is just one of many headwinds the company has faced over the past 6 months. Since August last year its share price has dropped 44.31%. 

But I think the current share price gives investors the opportunity to buy the stock for cheap. The company still has great growth potential and a strong core business. Demand for its biotherapies and vaccines are likely to continue growing globally and its plasma business is still one of the largest plasma collection networks in the world. 

CSL is entering a key investment phase which could help boost its financials. I’d expect that if and when the company’s financials pick back up, investor confidence and also the share price could follow suit.

West African Resources Ltd (ASX: WAF) 

The ASX gold stock has soared over 100% over the past year off the back of strong gold prices and some promising exportation results. I’m impressed with the company’s 10-year production plan and current cash and billion reserves. 

The gold price is tipped to beat record-levels again this year as demand for safe-haven assets keeps climbing. And if this happens then robust gold miners like West African Resources could continue outperforming over the next 12 months.

Pro Medicus Ltd (ASX: PME)

Pro Medicus posted record revenue and surging profits in its half year results last week, but it didn’t stop investors fleeing the health imaging ASX company’s shares, sending the share price crashing.

The share price drop is surprising given the company’s strong financials and the fact that its visage imaging platform is becoming widely adopted across large hospital networks in the US. 

The company is gaining traction with long-term contracts, it has a strong earnings visibility, a growing pipeline of major contract wins, all against a backdrop of radiologist shortages. 

I think the current share price is a once-in-a lifetime opportunity to buy the shares at a two-year low, ahead of the next uptick.

The post 3 ASX shares I’d buy with $10,000 this week appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why this top fundie is doubling down on ASX 200 tech stocks like TechnologyOne and Xero shares
• Here are the top 10 ASX 200 shares today
• 3 ASX shares smashed in the sell-off to buy this week
• Pro Medicus shares rally off recent lows. Time to chase?

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

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) continued its positive run and pushed higher. The benchmark index rose 0.25% to 8,958.9 points.

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

ASX 200 to rise again

The Australian share market looks set to rise on Wednesday after a decent night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 54 points or 0.6% higher this morning. In late trade in the United States, the Dow Jones is up 0.25%, the S&P 500 is up 0.4% and the Nasdaq is 0.5% higher.

Oil prices fall

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor session on Wednesday after oil prices tumbled into the red overnight. According to Bloomberg, the WTI crude oil price is down 0.9% to US$62.33 a barrel and the Brent crude oil price is down 1.8% to US$67.42 a barrel. Traders were selling oil down after Iran made progress with its nuclear talks with the United States.

NAB shares on watch

National Australia Bank Ltd (ASX: NAB) shares will be on watch on Wednesday when it becomes the last of the big four to release an update this month. The rest of the major banks delivered solid updates, so expectations are high for this one. Also scheduled to release results today are Sonic Healthcare Ltd (ASX: SHL), Lottery Corporation Ltd (ASX: TLC), and Suncorp Group Ltd (ASX: SUN).

Gold price sinks

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a difficult session on Wednesday after the gold price sank overnight. According to CNBC, the gold futures price is down 2.9% to US$4,899.3 an ounce. Traders were selling gold (and silver) as they awaited delayed economic data and responded to easing US-Iranian tensions.

CBA shares go ex-dividend

Commonwealth Bank of Australia (ASX: CBA) shares are going ex-dividend this morning and could trade lower. Last week, Australia’s largest bank released its half-year results and reported a cash net profit of $5.45 billion. This was an increase of 6% on the prior corresponding period and allowed the CBA board to declare a fully franked interim dividend of $2.35 per share. Eligible CBA shareholders can look forward to receiving this payout next month on 30 March.

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

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

Income investors are spoilt for choice on the Australian share market.

But which ASX dividend stocks could be buys right now? Let’s take a look at two that Bell Potter thinks are in the buy zone:

GDI Property Group Ltd (ASX: GDI)

Bell Potter is a fan of GDI Property Group and is tipping it as an ASX dividend stock to buy.

GDI Property is an integrated, internally managed property and funds management group with capabilities in ownership, management, refurbishment, leasing, and syndication of office properties.

It aims to always hold a portfolio of office properties that have either been developed internally or purchased for below replacement cost and have additional upside potential through development, redevelopment, refurbishment and releasing.

Bell Potter highlights that GDI Property’s shares are trading at a discount to their net tangible assets (NTA) and sees this as a buying opportunity. It said:

No change to our Buy recommendation. GDI continues to trade at a significant -41% discount to NTA which reflects no value for its FM OpCo, and while the Perth office market recovery could be a ‘slow burn’ with early leasing wins working through for GDI, we do still see upside from current levels which drops straight through to FFO gains.

With respect to income, the broker is forecasting dividends of 5 cents per share in both FY 2026 and FY 2027. Based on its current share price of 59 cents, this would mean dividend yields of 8.5% for both years.

Bell Potter has a buy rating and 85 cents price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

Bell Potter is also positive on Universal Store and believes it could be another ASX dividend stock for income investors to buy.

Universal Store is a leading youth focused apparel, footwear, and accessories retailer with almost 90 stores under its flagship Universal Store brand. In addition, it is expanding with stand-alone formats for its private label brands Perfect Stranger and Thrills.

Bell Potter thinks the market is undervaluing its shares and expects some attractive dividend yields in the near term. It said:

At ~18x FY26e P/E (BPe), we see UNI trading at a discount to the ASX300 peer group and see the multiple justified by the distinctive growth traits supporting consistent outperformance in a challenging category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution.

Bell Potter is forecasting fully franked dividends of 37.3 cents per share in FY 2026 and then 41.4 cents per share in FY 2027. Based on its current share price of $8.23, this would mean dividend yields of 4.5% and 5%, respectively.

The broker currently has a buy rating and $10.50 price target on its shares.

The post Broker names 2 ASX dividend stocks to buy now appeared first on The Motley Fool Australia.

More reading

• 5 of the best Aussie stocks to buy now
• Invest $20,000 in these 4 ASX shares and get $1,000 passive income
• 3 super small-cap ASX shares that could be destined for big things
• 2 ASX dividend shares raising dividends like clockwork
• These buy-rated ASX dividend stocks offer 4% to 6% yields

Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you’ve got cash ready to invest and are looking for quality Aussie stocks to buy, then read on!

Here are five stocks that operate in different industries but each have compelling long-term stories.

Breville Group Ltd (ASX: BRG)

The first Aussie stock worth considering is Breville. In recent years, Breville has evolved into a premium global brand, particularly in the coffee segment. Its machines are positioned at the higher end of the market, where quality and design matter more than price alone.

As at-home coffee culture continues to expand worldwide, Breville’s international footprint gives it exposure to a lifestyle trend rather than simply cyclical retail demand. It is partly for this reason that Morgans recently put a buy rating and $40.65 price target on its shares.

Cochlear Ltd (ASX: COH)

Another Aussie stock to look at is Cochlear. It is a healthcare leader with strong competitive advantages. The company develops implantable hearing solutions and benefits from ageing populations across developed markets. Its products are complex, heavily researched, and difficult for competitors to replicate.

With a large installed base and ongoing innovation, Cochlear’s growth is supported by both new recipients and device upgrades. And while current trading conditions are not easy, there’s no denying its positive long-term growth outlook.

Life360 Inc. (ASX: 360)

Another Aussie stock to consider is Life360. It has built a global family safety platform with almost 100 million users. What makes it interesting is that monetisation still has room to expand. Many users begin on free plans before upgrading to paid tiers that include advanced safety features, driving insights, and emergency assistance.

That model gives Life360 both scale and optionality. As engagement deepens and premium penetration rises, earnings can grow without needing to dramatically increase user numbers. It also has a growing advertising business, which could be another growth driver in the future.

Light & Wonder Inc. (ASX: LNW)

Light & Wonder operates across gaming machines, digital gaming content, and social casino platforms. Rather than relying on a single revenue stream, the company has built exposure across physical and digital channels. Its content library and recurring revenue streams help smooth performance across economic cycles.

As gaming continues to migrate online and expand globally, this Aussie stock remains well positioned.

Universal Store Holdings Ltd (ASX: UNI)

The final Aussie stock to consider is Universal Store. Targeting younger consumers, Universal Store has been expanding its store footprint while also growing its private-label offerings. Strong brand positioning and disciplined cost management have supported cash generation.

Retail can be cyclical, but well-executed expansion combined with brand strength can drive attractive long-term returns.

The post 5 of the best Aussie stocks to buy now appeared first on The Motley Fool Australia.

More reading

• Broker names 2 ASX dividend stocks to buy now
• Why are ASX 200 tech shares down 43% in six months?
• 3 ASX shares smashed in the sell-off to buy this week
• ASX retail shares: Experts rate 2 to buy and 2 to sell
• Why experts think this ASX 200 share can rise 20% after its result

Motley Fool contributor James Mickleboro has positions in Cochlear, Life360, and Universal Store. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear, Life360, and Light & Wonder Inc. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Cochlear, Light & Wonder Inc, and Universal Store. 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) tech stocks, including software-as-a-service provider TechnologyOne Ltd (ASX: TNE) and business and accounting software provider Xero Ltd (ASX: XRO), have had a rough start to the new year.

How rough?

Well, as at market close on Tuesday, the ASX 200 has gained a solid 2.81% year to date.

As for ASX 200 tech stocks, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is down 20.53% so far in 2026.

Xero shares have performed even worse, down 31.15% year to date, while the TechnologyOne share price has slumped 22.32%.

Online real estate advertising company REA Group Ltd (ASX: REA) also hasn’t escaped the selling pressure. REA shares are down 11.43% this calendar year.

Of course, that will sound pretty good to shareholders of health imaging company Pro Medicus Ltd (ASX: PME). The Pro Medicus share price is down a precipitous 42.97% year to date. That’s despite Pro Medicus reporting all-time high half-year profits last week, with underlying net profit up 29.7% year on year to $67.3 million.

Indeed, the sharp sell-down has little (or in some cases seemingly nothing) to do with these companies’ recent performance.

Rather, investors appear to have been favouring their sell buttons amid concerns that rapidly advancing artificial intelligence tech could breach these stocks’ defensive moats and eat their proverbial lunches.

But has the selling been overdone?

Could these ASX 200 tech stocks get an AI boost?

Ten Cap portfolio manager Jun Bei Liu isn’t binning her fund’s holdings in REA, Pro Medicus, TechnologyOne, or Xero shares.

While Liu has cut the Ten Cap Alpha Plus Complex ETF (ASX: TCAP)’s exposure to a number of ASX 200 tech stocks amid weak market sentiment and a surge in ASX mining shares, she’s holding onto these four.

Why?

According to Liu (courtesy of The Australian Financial Review):

These companies will continue to deliver multi-year growth. AI will actually increase cost efficiencies, and their client base is extremely sticky compared to other software businesses that have been sold off.

Commenting on the past months’ selling pressure on most every ASX 200 tech stock, Liu added:

Some of these growth businesses that have been sold off on fear are going to keep delivering results, and if they do, the market will eventually realise they have been oversold… We are seeing an incredible amount of opportunities in some of those companies whose valuation have come down to multi-year lows; to us, these are very rare.

The post Why this top fundie is doubling down on ASX 200 tech stocks like TechnologyOne and Xero shares appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why are ASX 200 tech shares down 43% in six months?
• 3 ASX shares smashed in the sell-off to buy this week
• Pro Medicus shares rally off recent lows. Time to chase?
• Where to invest $10,000 in ASX shares right now

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One and Xero. 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 Xero. The Motley Fool Australia has recommended Pro Medicus and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When I think about blue-chip investing, I’m not chasing excitement. I’m looking for durability. Businesses with scale, strong balance sheets, and advantages that don’t disappear just because sentiment shifts.

There are plenty of quality names on the ASX, but if I were adding established leaders to my portfolio today, these three would be high on my list.

Commonwealth Bank of Australia (ASX: CBA)

I know CBA isn’t cheap on traditional metrics. It rarely is. But I think that premium exists for a reason.

Australia’s biggest bank has built structural advantages that are hard for competitors to replicate. Its deposit base is deep and sticky. Its technology platform continues to set the standard domestically. And its ability to consistently generate strong returns on equity is unmatched among rivals.

What I like most is the predictability. Even in more challenging economic periods, CBA tends to manage margins and credit quality better than peers. That reliability is valuable, especially for long-term investors who want both income and capital preservation.

Fully franked dividends add to the appeal. While I wouldn’t expect explosive growth from here, I do believe CBA can continue delivering steady, compounding returns over time. For me, that’s what a blue chip should do.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of those ASX shares I’m always comfortable owning. Yes, it’s often discussed as a retail conglomerate, but I see it more as a disciplined capital allocator with a portfolio of high-quality assets. Bunnings remains a dominant force in Australian hardware and DIY. Kmart continues to prove that scale and cost discipline can coexist with value positioning.

What I particularly respect about Wesfarmers is management’s willingness to reshape the portfolio. It has exited businesses that no longer met return thresholds and reinvested into areas with better long-term potential. That flexibility matters more than you might think.

To me, Wesfarmers represents controlled growth. It has defensive earnings characteristics through its core operations, but also optionality from strategic investments and new verticals. Over a decade or more, I think that balance can be very powerful.

Rio Tinto Ltd (ASX: RIO)

While resources can be cyclical, I see Rio Tinto as more than just an iron ore producer.

Iron ore still underpins earnings, but what excites me longer term is copper. Electrification, renewable energy, grid upgrades, and electric vehicles all require significant amounts of copper. Global supply growth has struggled to keep pace with projected demand.

Rio Tinto has been investing to expand its copper footprint, and I believe that positions it well for structural trends rather than just short-term commodity cycles.

On top of that, the blue-chip ASX share typically runs a strong balance sheet and generates substantial free cash flow in favourable pricing environments. That supports dividends and gives management flexibility during downturns.

For investors who want exposure to global infrastructure and electrification themes, I think Rio Tinto is one of the cleaner ways to access it on the ASX.

Foolish takeaway

For me, blue-chip ASX share investing is about backing businesses with staying power.

Commonwealth Bank offers consistency and income. Wesfarmers brings disciplined capital allocation and resilient cash flows. Rio Tinto provides global scale and exposure to long-term resource demand.

I don’t expect any of them to double overnight. But I do believe each has the qualities that can help build wealth steadily over time.

The post 3 high-quality blue-chip ASX shares I would buy right now appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Where to invest $10,000 in ASX shares right now
• ASX recap: 5 most traded shares last week
• What have we learned from earnings season so far?
• Here’s the earnings forecast out to 2030 for CBA shares

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. 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.

Reaching $100,000 invested sounds like a big milestone. But the truth is, it doesn’t require winning the lottery or picking the next market darling. With consistency, patience, and compounding, investing $500 a month in ASX shares can get you there.

Here’s how it works in four steps.

Step 1

The most important ingredient isn’t timing the market. It’s committing to investing every month.

At $500 per month, you’re investing $6,000 per year. That might not seem life-altering at first, but what matters is how those contributions grow over time.

Assuming an average annual return of 9%, which is broadly in line with long-term historical share market returns, though never guaranteed, your portfolio starts to accelerate as compounding kicks in.

Step 2

Here’s roughly what the journey could look like at a 9% average return:

After 5 years, you would have contributed $30,000, but your portfolio could be worth around $37,000.

After 10 years, you would have invested $60,000, and your portfolio could grow to approximately $95,000.

Somewhere before the 11-year mark, you would cross the $100,000 milestone.

But you don’t have to stop there. After 15 years, your portfolio would be worth roughly $185,000, and after 20 years, it could be worth roughly $320,000 if everything went to plan.

Notice what happens over time. Compounding really starts to show its power the longer you make it work.

Step 3

To aim for long-term returns, the focus should be on quality ASX shares and exchange-traded funds (ETFs) rather than high-risk speculative stocks.

That could mean global leaders like ResMed Inc. (ASX: RMD), infrastructure-backed names like Goodman Group (ASX: GMG), or dominant platforms such as Xero Ltd (ASX: XRO). Alternatively, broad ETFs such as the iShares S&P 500 ETF (ASX: IVV) or the Vanguard MSCI International Index Shares ETF (ASX: VGS) can provide diversified exposure in a single trade.

The key is to invest in businesses or funds with competitive advantages and long growth runways.

Step 4

Reinvesting dividends can meaningfully boost long-term returns. It increases the number of shares you own, which then generates even more income and capital growth over time.

Just as importantly, avoid the temptation to stop investing during market downturns. Periods of weakness often provide opportunities to buy quality assets at lower prices.

Foolish Takeaway

Building $100,000 with $500 a month is about discipline.

By investing consistently, targeting quality ASX shares or ETFs, and allowing compounding to work over a decade or more, that six-figure milestone becomes far more achievable than it first appears. The sooner you start, the easier it gets.

The post How to make $100,000 with just $500 a month in ASX shares appeared first on The Motley Fool Australia.

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• Why are ASX 200 tech shares down 43% in six months?
• 3 ASX shares smashed in the sell-off to buy this week

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 Goodman Group, ResMed, Xero, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended ResMed and Xero. The Motley Fool Australia has recommended Goodman Group, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.