Category: Stock Market

Investing and holding for the long term is the best way to go, in my view, because it means giving the ASX shares a long time to compound, while also reducing tax payments.

I’m going to look at two ASX shares that could be excellent investments to own for the years ahead because of their strong underlying growth and the fact the share prices are cheaper than they used to be.

Below are two of my favourite ideas for long-term returns.

Sigma Healthcare Ltd (ASX: SIG)

Sigma is a business that’s heavily involved in the pharmacy industry as both a chemist brand owner and product distributor. Its key business is Chemist Warehouse, which I’d describe as the leading operator in the sector.

The business recently announced an update that included a number of positives that I think makes it an even stronger buy.

Firstly, Chemist Warehouse’s sales remain incredibly strong.

Australian Chemist Warehouse-branded stores saw network sales growth of 16.7%, powered by 14.4% like-for-like (LFL) sales growth. The international division, which includes Ireland, New Zealand, Dubai, and China saw overall sales growth of 24.7%, with LFL growth of 11.8%.

The fact the core business continues to perform so strongly is very positive for the foreseeable future, in my opinion. I believe investors should never lose sight of the performance of the key element of a company’s earnings, even if it has exciting growth plans for new products or services.

Second, the ASX share announced that Chemist Warehouse is entering the UK by acquiring 75% of a number of Greenlight stores which are based in London. Chemist Warehouse will licence the Chemist Warehouse brand and intellectual property and provide retail support, including ranging, store layout, inventory management, and marketing support.

Some of the Greenlight locations will be developed or relocated, becoming Chemist Warehouse stores. The first phase will focus on rebranding and developing up to five stores initially. If this proves successful, more stores could be developed.

Finally, the company is investing in a new distribution centre in New Zealand, which will help it continue growth in that market. It’s aiming for more than 100 Chemist Warehouse stores in New Zealand in the long term, where there’s currently approximately 70.

All of the above bodes well for the ASX share’s long-term future. The UK is a big market and could be a great growth driver in the years ahead.

L1 Global Long Short Fund Ltd (ASX: GLS)

I believe every Australian would benefit from having a good allocation to international shares, though the international/US share market is increasingly becoming a bet on a few large US tech names and the theme of AI in general.

There are plenty of appealing investments in the international market, which could deliver strong returns.

Instead of trying to search across the entire global share market for great ideas, I’m very willing to have high-performing fund managers provide the diversification and returns I’m after.

L1 Global Long Short Fund is a listed investment company (LIC) that utilises both long-term investing and short-selling to find opportunities. Some of the sectors it’s invested in recently includes copper, gold, construction materials, and banking.

According to the fund manager, the ASX share’s median ‘long’ position trades at around 8x FY27’s estimated earnings, with double-digit earnings growth and modest debt levels.

Past performance is not a reliable indicator of future returns, but since the strategy’s inception in January 2025, it has returned an average of 53.9% per year. I think this ASX share is one worth watching.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Flight Centre, Sigma Healthcare, Vault Minerals, and WiseTech shares are storming higher today
• Sigma shares race higher on update and Chemist Warehouse UK expansion
• Sigma Healthcare delivers double digit Chemist Warehouse sales growth in 2026
• What’s making healthcare the worst sector on the ASX 200, down 39% in a year?

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.

The JB Hi-Fi Ltd (ASX: JBH) share price is in focus today after the company reported group sales growth across key brands in the third quarter of FY26, with JB Hi-Fi Australia sales up 4.0% and NZ sales up 23.2%.

What did JB Hi-Fi report?

• JB Hi-Fi Australia total sales rose 4.0% for Q3 FY26
• JB Hi-Fi New Zealand total sales jumped 23.2% for the quarter
• The Good Guys total sales increased 2.5% for Q3
• e&s total sales slipped 1.4% in Q3
• Year-to-date, JB Hi-Fi New Zealand total store sales climbed 29.7%

What else do investors need to know?

JB Hi-Fi delivered positive sales growth in both Australian and New Zealand operations despite a challenging and uncertain retail environment. The Good Guys business also saw continued sales momentum, adding to the group’s overall performance.

Management flagged supplier component cost increases and stock availability shortages, particularly in technology categories. Heightened competition is putting further pressure on margins as the group heads into the crucial end of financial year period.

What did JB Hi-Fi management say?

CEO Nick Wells said:

We are pleased to see sales growth in JB Hi-Fi and The Good Guys in what is an increasingly uncertain retail environment. As we enter the important end of financial year trading period, in the technology categories we are seeing significant supplier component related cost increases and stock availability shortages, along with heightened competitive activity. As always, we will remain focused on what we can control and seek to maximise demand through driving great value for our customers, leveraging our strong supplier relationships, and delivering exceptional customer service.

What’s next for JB Hi-Fi?

JB Hi-Fi is focusing on controlling what it can—maximising demand, supporting supplier partnerships, and delivering value for customers. Management will be aiming to maintain momentum through the end-of-financial-year period, despite increased costs and supply challenges.

The group’s results suggest ongoing resilience in a tough retail market, but management remains alert to industry-wide pressures as it navigates these operational headwinds.

JB Hi-Fi share price snapshot

Over the past 12 months, JB Hi-Fi shares have declined 25%, trailing the S&P/ASX 200 Index (ASX: XJO) which ha risen 6% over the same period.

View Original Announcement

The post JB Hi-Fi Q3 FY26 sales update: Australia & NZ drive growth appeared first on The Motley Fool Australia.

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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 summary of the company announcement. 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.

It was a day to forget for Gentrack Group Ltd (ASX: GTK) shares on Tuesday.

The ASX tech stock finished the day 38% lower at $2.99 following the release of a trading update.

This means that the utilities software provider’s shares are now down 75% from their high.

Has this created a buying opportunity or should you avoid this one? Let’s see what Bell Potter is saying.

What is the broker saying about this ASX tech stock?

Bell Potter notes that Gentrack has “materially” downgraded its earnings guidance for FY 2026. It is now expected to be significantly lower than Bell Potter and consensus estimates.

Bell Potter suspects that the cause of the ASX tech stock’s revenue decline has been a failure to execute on its near-term pipeline. It explains:

NRR (project) revenues were guided to decline YoY, which suggests GTK has been unable to execute on its near-term pipeline outlined at its Strategic Day in Nov ’25 comprising of 3 tenders as preferred, 3 short-listed, and well-placed at 4 others for CY26 counterparty decisions, noting some of these would have been pushed into FY27/CY27 regardless. Project revenues are an ‘at-risk’ bucket, requiring an on-going pipeline to replace rolled-off projects to prevent segment revenue going backwards and dragging at Group level against ARR [annual recurring revenue], which will naturally occur as the business matures.

The broker also highlights that converting its non-recurring project revenues into ARR is now a concern and could make medium-term targets harder to achieve. It adds:

Expected recurring revenue growth of 10% for FY26 is at least positive, however conversion of NRR into growth in future periods for provisioning of billing/CRM stack is now a concern despite management commentary. Maintaining medium-term growth targets on lower bases implies lowered expectations in future periods in our view and potentially indicates lost tenders in the pipeline, rather than pushed into future periods.

Should you invest?

Despite the many negatives, Bell Potter remains positive on this ASX tech share.

In response to its update, the broker has retained its buy rating with a heavily reduced price target of $5.60 (from $8.80).

Based on its current share price of $2.99, this implies potential upside of 87% for investors over the next 12 months.

Commenting on its recommendation, Bell Potter said:

Our Target Price is reduced to A$5.60sh and we maintain a Buy rec on the broader macro trends supporting utility billing stack/digital transformations. However, the current difficulty in converting pipeline into projects negatively impacts GTK’s ability to convert into ARR in future periods which would imply an ex-growth multiple.

The post Down 75%: Is this ASX tech stock a bargain buy? appeared first on The Motley Fool Australia.

More reading

• Guess which ASX tech share is crashing 35% today
• Why Appen, Gentrack, Magellan, and Regis Resources shares are falling today
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• Why this ASX tech stock could rocket 80% according to a top broker
• Why Capstone Copper, Gentrack, Mineral Resources, and WiseTech shares are racing higher today

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 Gentrack Group. The Motley Fool Australia has positions in and has recommended Gentrack Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX healthcare share ResMed Inc (ASX: RMD) edged 2% higher on Tuesday to $29.57, offering a modest lift after recent weakness. The stock remains down around 10% over the past month and about 18% year to date.

Some investors might question whether the pullback is an opportunity in disguise. Here are three more reasons why this high-quality ASX healthcare share might be worth a closer look.

Powerful, long-term growth

ResMed develops devices and software to treat sleep apnoea and other breathing disorders, including masks, CPAP machines, and digital health platforms used in both clinical and home settings. This positions the ASX healthcare share within several powerful long-term trends, including ageing populations, growing awareness of sleep health, and the shift toward home-based care rather than hospital treatment.

Importantly, ResMed is not dependent on a single product line. It operates across devices, consumables, software, and data platforms, creating a broader ecosystem that connects patients, clinicians, and healthcare providers. This integrated model helps improve customer retention and supports recurring revenue streams over time.

Growth momentum, improving earnings

Recent results suggest the business continues to deliver solid momentum. Revenue rose 11% to US$1.4 billion in the latest quarter, while earnings per share increased 21% to US$2.86. That combination of growth and expanding profitability highlights the strength of its operating model even in a more uncertain macro environment.

Morgans Financial was encouraged by the update, noting continued double-digit growth and margin expansion. The broker has retained its buy rating on the ASX healthcare share, although it trimmed its price target slightly to $41.72. This points to a 41% upside from current price levels.

Massive global opportunity

Another key attraction is the size of the opportunity ahead. Sleep apnoea remains significantly underdiagnosed and undertreated globally. ResMed estimates there are more than 1 billion people with the condition. Yet fewer than 20% of patients in the US are diagnosed or treated, and fewer than 10% in the rest of the world.

That level of underpenetration creates a long runway for growth without the need for new markets or disruptive product shifts. Instead, ResMed can continue expanding diagnosis rates, increasing awareness, and helping more patients access treatment.

The ASX healthcare share is also building a strong digital advantage. Its ecosystem now includes more than 36 million patients on its AirView platform, and more than 34 million cloud-connectable devices globally. This data network strengthens its ability to improve clinical outcomes and enhance product development over time.

On the innovation front, ResMed continues to invest in new products and adjacent opportunities. Recent initiatives include the rollout of AirSense 11 into additional markets, new mask designs such as AirTouch N30i and F30i, and expansion into related sleep health areas.

Foolish Takeaway

Overall, ResMed remains a high-quality healthcare business with durable growth drivers, a large underpenetrated market, and a strengthening digital ecosystem.

While the price of the ASX healthcare share has softened recently, the long-term investment case remains firmly intact for patient investors.

The post 3 reasons to buy this $42 billion ASX healthcare share appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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 ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are looking for new investment ideas this month, then it could pay to listen to what Bell Potter is saying.

That’s because the broker has just released its latest top Australian picks from the small-cap side of the market. These are its panel of favoured ASX shares that it believes offer attractive returns over the long term.

Two that make the list in May are named below. Here’s why it is bullish on them:

Aeris Resources Ltd (ASX: AIS)

Bell Potter has added this copper miner to its list this month. The broker highlights its substantial cash balance and strong production growth outlook as reasons to buy.

Commenting on the new addition, it said:

We add Aeris Resources (AIS) to the Small Cap Panel as a high-conviction copper-led growth and re-rating story. AIS is a copper-dominant producer whose near-term outlook is highly leveraged to copper prices and increasing production at its 100%-owned Tritton operation in central west NSW.

The market capitalisation is ~30% backed by net cash ($149.8m at the end of the March quarter, no drawn bank debt), with the last gold hedges to roll off this quarter, leaving the company completely unhedged from start of FY27. AIS’ March quarter delivered a $43m lift in cash with operating cash flow of $76m, and management is guiding to the low end of FY26 production guidance, implying a material step-up in copper output through the June quarter as production ramps.

Bell Potter also highlights that Aeris is now in a catalyst-rich window for this ASX share. It adds:

The setup into CY26 is the cleanest catalyst-rich window this stock has had. The first full quarter of open-pit production at Tritton should drive a step-change in operating cash flow, while early works at the higher-grade Constellation open-pit are set to commence this quarter, with first ore by end of CY26 a major positive catalyst for the copper production growth profile.

Praemium Ltd (ASX: PPS)

Another ASX share that is on the list in May is investment platform provider Praemium.

The broker is a big fan of the company and believes it is being significantly undervalued by the market compared to its larger rivals. Another positive is that Bell Potter estimates that its shares offer a 4.5% dividend yield at current levels.

As a result, the broker believes this has created a buying opportunity for investors. It said:

While Praemium has demonstrated commercial momentum, strong growth capacity, and a leading technology offering, its valuation continues to lag key peers. This stock looks very attractive at a 12MF PE of ~14x, and we expect the market to catch on as the company executes on further market share gains and FUA growth.

The post Bell Potter names the best ASX shares to buy in May 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 Praemium. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX dividend share Sonic Healthcare Ltd (ASX: SHL) could be a dream holding for retirees due to its defensive earnings and impressive dividend profile.

Sonic Healthcare is a large global pathology business with operations across Germany, Australia, the USA, Switzerland, the UK, Belgium, Poland and New Zealand.

There are not many ASX shares that are as globally successful as Sonic Healthcare, and there’s a lot to like about the business.

Excellent dividend credentials

The Sonic Healthcare board of directors has a progressive dividend policy, and the payout has increased every year since 2013. Indeed, the annual dividend has increased almost every year since the mid-1990s.

Very few businesses on the ASX have a long-term dividend record like that. Only Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and APA Group (ASX: APA) have a similar sort of payout record.

In the FY26 half-year result, the ASX dividend share decided to increase its interim dividend by 2.3% to 45 cents per share.

The last two dividends declared came to $1.08 per share. Excluding franking credits, that equals a dividend yield of 5.4%. If it repeats that level of dividend over the next 12 months, it’d be a grossed-up dividend yield of 7%. I think any retiree would be happy with that level of passive income.

Earnings growth

Sonic Healthcare is not a business that’s stuck with no growth – it’s actively grown through both organic growth and acquisitions. The growing and ageing populations of its core markets give the business a promising tailwind of demand.

In the FY26 half-year result, the company reported revenue grew by 17% to $5.45 billion, with organic growth of 5%.

For me, earnings growth is the most important thing to drive the share price (and dividend) higher.

The ASX dividend share’s HY26 operating profit (EBITDA) rose 10% to $907 million. Meanwhile, net profit increased 11% to $262 million and operating cash flow grew 10% to $682 million.

Given the company’s focus on improving its operating leverage, acquisition synergy realisation, and ongoing cost control across the business, I think its earnings outlook is very positive.

According to the projection on Commsec, the business is forecast to generate earnings per share (EPS) of $1.18 in FY26. That means it’s valued at 17x FY26’s estimated earnings.

The company’s EPS is expected to increase to $1.36 in FY27 and then $1.57 in FY28, suggesting there’s a good chance of capital growth and dividend growth in the years ahead.

The post Why this ASX dividend share is a retiree’s dream appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Apa Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are looking for the winning combination of major upside potential and an above-average dividend yield, then read on.

That’s because Bell Potter thinks the ASX dividend share in this article offers both.

Which ASX dividend share?

The share in question is Universal Store Holdings Ltd (ASX: UNI).

It is the youth fashion retailer behind the Universal Store, Perfect Stranger, and Thrills brands.

Bell Potter highlights that Universal Store has released a solid trading update for the first 43 weeks of the financial year. It said:

Universal Store Holdings (UNI) provided a trading update for the first 43 weeks of FY26: group retail sales of +14% on pcp broadly in line with BPe, like-for-like (LFL) sales on pcp of +8.5% and +12.9% for key banners, Universal Store (US) and Perfect Stranger (PS) respectively. The improved growth rate from the last update at UNI’s key banner, US (+8.1% at end of Apr vs +7.1% at mid-Feb) was supported by some benefit in comps in the pcp through Apr.

However, the wholesale business saw a pronounced decline YTD to book in another impairment charge (last in 1H25) given structural challenges with a longer dated recovery flagged. FY26 guidance of revenue at $368-375m (+11.5% at mid-point) and EBITA of $61.5-64.5m was provided, in line with Consensus implying gross margins remaining in line. FY26 new store openings were also tracking to the previous guidance of 11-17 across the three banners.

Big potential returns

According to the note, the broker has retained its buy rating on the ASX dividend share with a trimmed price target of $9.30 (from $10.50).

Based on its current share price of $7.11, this implies potential upside of 30% for investors over the next 12 months.

In addition, the broker is forecasting fully franked dividend yields of 5.2% in FY 2026, 5.5% in FY 2027, and then 6.3% in FY 2028.

Commenting on its buy recommendation, Bell Potter said:

At 13x FY27e P/E (BPe), we see an entry opportunity to a high-quality retailer as we remain optimistic on UNI’s performance in 4Q26 given supportive comps and look forward to FY27e in delivering continued execution driven market share expansion across retail banners. In line with selective consumption trends across the broader sector, we retain our views of the youth customer prioritising ontrend streetwear and expect UNI to benefit with their leading position. Maintain BUY.

The post Bell Potter says this ASX dividend share offers a 5% yield and 30% upside appeared first on The Motley Fool Australia.

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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.

Owners of Wesfarmers Ltd (ASX: WES) shares can be excited about the company’s latest plan to expand its business and unlock further earnings growth through residential apartments.

Wesfarmers is initially investing $100 million of equity into a joint venture to help deliver apartments that are cheaper and faster than traditional construction.

The Australian business already has a significant presence in the construction industry through its Bunnings, Tool Kit Depot and Beaumont Tiles. This “initial” move could become a larger initiative, according to Wesfarmers.

Wesfarmers invests in affordable apartment construction

The Western Australian business announced it has entered into a 50:50 joint venture with Built Group to establish Built Living, which wants to deliver “residential apartments at scale through advanced manufacturing”.

This will reportedly be Australia’s first advanced manufacturing facility dedicated to medium and high-rise residential precast concrete construction and development.

Wesfarmers said Built Living will use ‘design for manufacture and assembly’ methods that are used in international markets. Its goal is to deliver apartments at approximately 20% lower costs and 50% faster than traditional construction.

Once the facility is complete in Western Australia, it expects to support delivery of more than 2,000 apartments annually once completed. Construction is expected to start in the second half of 2026.

Wesfarmers said its commitment will be staged, with additional facilities in other states to be considered.

It was also announced that the Western Australian Government is supporting this through a long-term lease of land in the Neerabup Automation and Robotics Precinct in Western Australia, together with “direct support” for the development of the facility.

A portion of the facility’s annual capacity will be reserved for government-backed housing projects and the state’s social infrastructure pipeline.

Wesfarmers also believes this will create growth opportunities for its existing businesses, including through supply arrangements with Bunnings’ trade business on arm’s length, commercially competitive terms.

Management commentary

The Wesfarmers managing director Rob Scott said:

Australia urgently needs more housing, and the Built Living joint venture is well positioned to address that need using internationally-proven construction models, to deliver high quality properties.

Built brings world-class construction experience, sophisticated digital processes and a strong track record of quality developments, while Wesfarmers contributes investment capacity and demonstrated capabilities in advanced manufacturing and supply chain management.

We look forward to working closely with Built and the Western Australian Government on what is a shared challenge. Addressing Australia’s housing shortage will take real collaboration across industry and government, and we are pleased to be in a partnership that can help make a meaningful difference.

Wesfarmers share price snapshot

The Wesfarmers share price fell approximately 0.6% yesterday after this news was announced, though this decline also came amid an RBA rate hike concerning developments in the Middle East regarding a possible resumption of hostilities between the US and Iran.

The post Own Wesfarmers shares? It’s expanding into modular apartment construction 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 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.

It’s been a fairly miserable time for the S&P/ASX 200 Index (ASX: XJO) over the past few months. The ASX 200 started 2026 off on a strong note, rising by a healthy 5.4% between early January and early March. But the Iran war put a stop to that, with the index now down about 6% since 2 March.

Things haven’t been looking up more recently either. Since the middle of April, the ASX 200 has retreated by around 3%.

Over the past six months, the Australian share market has also lost about 2% of its value. This is the period I’d like to focus on.

Back in early November, the ASX was still basking in the afterglow of the August interest rate cut that the Reserve Bank of Australia (RBA) delivered. That was the third RBA rate cut of 2025, bringing the cash rate down to 3.6%.

Since then, the RBA has dramatically reversed course. Take the interest rate hike that was announced just today. If we combine it with February and March’s hikes, all three of 2025’s rate cuts have been nullified. Today, the cash rate is back to 4.35%, exactly where it was at the start of 2025.

Do higher interest rates mean lower ASX 200 shares?

Under typical financial logic, rate hikes are bad news for the share market. This is due to two factors. The first is that a higher cash rate tends to change the way investors value ASX shares by boosting the risk-free return available from government bonds. A higher risk-free rate means that shares need to deliver higher profits to justify the same valuation.

The second factor is the increased appeal of ‘safer’ assets thanks to the higher rates. Many investors will simply opt for a term deposit or government bond over a dividend-paying share if they can get a better interest rate on the safer investments. This latest hike could pull term deposit rates well over 5.5%. That looks pretty good against the kinds of yields that the likes of Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS) and Wesfarmers Ltd (ASX: WES) are currently sporting.

So, by all accounts, the three interest rate increases we have seen in 2026 so far should have a fairly significant impact on the overall ASX 200 Index. Yet it is seemingly not. Despite these rate hikes and despite the clear economic damage that is being caused by the closure of the Strait of Hormuz, investors have sent the ASX 200 down 2% over the past six months.

Something doesn’t seem right to me. That’s why I think there’s a good chance the ASX 200 Index will continue to drift lower in the coming months. I could be wrong. But I also believe in reversion to the mean.

The post I’m worried about the ASX 200 falling further. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra 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.

A $5,000 investment can be more than enough to start building income in the share market.

But where should you start?

Here are three ASX dividend shares that could be worth buying in May.

APA Group (ASX: APA)

The first ASX dividend share that could be a buy is APA Group.

It owns and operates energy infrastructure, including gas pipelines, storage assets, and related infrastructure across Australia.

The appeal here is that its earnings are tied more closely to contracted infrastructure usage than short-term movements in commodity prices. Gas still has a role to play in energy security, industrial demand, and firming electricity supply as renewable generation increases.

That gives APA a different type of income profile from traditional energy producers. It is more about the pipes and networks that move energy around the system.

With long-life infrastructure assets and contracted cash flows, APA remains a share that income-focused investors may want to keep on the radar.

Dicker Data Ltd (ASX: DDR)

Another ASX dividend share worth looking at is Dicker Data.

It is a technology distributor that connects major global vendors with resellers across Australia and New Zealand. Its partners include companies across hardware, software, cloud, cybersecurity, and infrastructure.

This makes it a different income idea from the usual banks, telcos, and infrastructure names. Dicker Data sits in the middle of the technology supply chain, benefiting as businesses continue to spend on digital systems.

The company has historically returned a large portion of earnings to shareholders through dividends, making it one of the more generous dividend payers on the local market.

For investors comfortable with a more cyclical income stream, Dicker Data offers dividend exposure linked to technology spending rather than consumer spending.

Rural Funds Group (ASX: RFF)

A third ASX dividend share that could be a top pick for income investors is Rural Funds Group.

It owns agricultural assets, including farmland and related infrastructure, which are leased to high-quality operators across different parts of the agriculture sector.

This structure gives investors exposure to farmland income without having to operate farms directly. Rental income is the key driver, while the underlying assets remain connected to long-term demand for food and agricultural production.

Weather, interest rates, and tenant performance can all influence sentiment toward the stock. But for investors seeking income from a less conventional part of the ASX, Rural Funds offers something different.

The post Where to invest $5,000 into ASX dividend shares in May appeared first on The Motley Fool Australia.

More reading

• 3 top ASX shares to build a simple, balanced portfolio in 2026
• 3 excellent ASX dividend shares to buy in May
• How I’d invest $2,000 in high-yield ASX 300 shares
• How to become a millionaire on a $60,000 salary
• Want passive income? These ASX dividend shares offer 5%+ yields

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 positions in and has recommended Apa Group, Dicker Data, and Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.