Category: Stock Market

A $2,000 monthly passive income stream would be useful for many investors.

It could help cover groceries, utilities, insurance, travel, or part of a mortgage. It could also make retirement feel a lot more comfortable.

But how could an investor realistically build it? Let’s dig deeper into things.

Build the passive income machine

Aiming for $2,000 a month means aiming for $24,000 a year in passive income.

If an investor can build a portfolio with an average dividend yield of 5%, they would need approximately $480,000 invested to generate that level of income.

However, it is worth noting that ASX dividends do not usually arrive neatly every month. Many companies pay dividends twice a year, while some trusts and ETFs pay quarterly or monthly distributions. So this is best viewed as an average monthly income target, not a monthly payment schedule.

There are a number of ASX income options that could help investors achieve a dividend yield around this level.

This includes HomeCo Daily Needs REIT (ASX: HDN), which offers exposure to everyday-needs property assets and Universal Store Holdings Ltd (ASX: UNI), which offers a higher-yielding retail option.

In addition, APA Group (ASX: APA) is a high-yield option that provides exposure to energy infrastructure, and Harvey Norman Holdings Ltd (ASX: HVN) can offer attractive fully franked dividends when conditions support them.

Investors could also look at an income-focused ETF such as the Vanguard Australian Shares High Yield ETF (ASX: VHY), which provides exposure to a basket of higher-yielding ASX shares.

But it is important to note that a dividend yield should never be the only consideration. A 5% target is useful, but the income still needs to be sustainable. Dividends can be cut, distributions can change, and share prices can fall.

That is why a passive income portfolio should be built around quality, diversification, and financial strength, not just the highest yield on the screen.

What if you are starting from zero?

Of course, many investors will not have $480,000 ready to invest.

That changes the game. The first goal is not to generate the income immediately, it will be to build the capital base that can later produce the income.

This is where regular investing can do the heavy lifting.

If an investor starts from zero, invests $1,000 a month, and achieves an average annual return of 10%, they could build a portfolio worth approximately $480,000 in just over 16 years.

That return is not guaranteed, but it is in line with historical returns.

Which shares should you buy at this stage?

Dividend shares may not be the best way to deliver on our target return. High-yield shares can be useful once the income portfolio is built, but they may not deliver the strongest total returns during the accumulation phase.

Instead, investors may want to focus on quality ASX shares that can compound over time.

That could include Goodman Group (ASX: GMG), which has exposure to logistics, industrial property, and data centres, and Wesfarmers Ltd (ASX: WES), which has a strong portfolio of retail and industrial businesses.

In addition, tech stocks WiseTech Global Ltd (ASX: WTC) and Xero Ltd (ASX: XRO) could be great long-term options for Aussie investors.

The idea is to build the engine first. Once the portfolio reaches the required size, investors can gradually shift more attention toward income, dividends, and cash flow.

That may not happen overnight. But with patience, regular investing, and a focus on quality, a $2,000 monthly passive income stream from ASX shares can become a realistic long-term goal.

The post How to make $2,000 of monthly passive income from ASX shares appeared first on The Motley Fool Australia.

More reading

• Forget CBA and buy these ASX dividend shares
• 2 ASX shares with dividend yields above 8%
• Want to retire earlier? This mix of ASX shares and ETFs could help
• Which is better: A 4% dividend yield or a 5% term deposit?
• Down 46%: What should I do with my WiseTech shares now?

Motley Fool contributor James Mickleboro has positions in Goodman Group, Universal Store, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Wesfarmers, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Apa Group, Harvey Norman, WiseTech Global, and Xero. The Motley Fool Australia has recommended Goodman Group, HomeCo Daily Needs REIT, Universal Store, Vanguard Australian Shares High Yield ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I’ve been investing in ASX shares for years now, longer than I care to admit to be frank. It has been one of the most rewarding experiences of my life, not just financially, but intellectually too.

Investing in shares can never truly be mastered. Even Warren Buffett freely admitted to making mistakes late in his career at Berkshire Hathaway. The constant journey of learning keeps one on their toes, and, although mistakes can have a real financial impact, they are part of that ultimately rewarding learning curve too.

I have made more than a few mistakes when it comes to ASX share investing over the years. Some of the most egregious include buying Slater & Gordon shares only to see the company go bankrupt, and participating in the Raiz Invest Ltd (ASX: RZI) IPO and getting wiped out.

But today, I’d rather discuss one of the challenges of investing that I have had to overcome. This challenge will confront everyone who buys ASX shares, and can either make or break your portfolio and your long-term returns.

This challenge is not learning how to decipher a balance sheet, or knowing which sticks will shoot the moon. It is far more simple than that. It is the simple act of doing nothing.

One of the most under-appreciated aspects of investing is that the act of buying an owning shares seems to elicit a need to attend to them. To buy more or sell down, to move our money around and ‘react’ with agility to whatever is happening in the world.

When Donald Trump announced a tentative peace deal, all we hear is that investors are buying shares like crazy. Conversely, we investors are the first to hear about “$50 billion wiped off the share market as US-Iran war escalates”.

The hardest part of investing in ASX shares

This implies that we, as investors, should be doing something similar. Surely one isn’t a real investor if one isn’t constantly dipping in and out of shares. Or selling high, buying low, pruning their portfolios, or even jumping into the latest IPO.

If your job is trading stocks or assets, then this might be acceptable. But for the average investor who just wishes to slowly-but-surely build wealth by investing in Australian businesses over long periods of time, I am of the firm belief that less is more. Quality businesses adapt to their circumstances. They tend to survive when times are tough, and thrive when the proverbial sun is shining.

To be a successful investor means trusting the companies themselves to deliver, not that the market will always give you the stock price you might want to see. As Warren Buffett once said:

If you have to closely follow a company, you shouldn’t own it… If you buy a farm, do you go and look every couple of weeks to see how far the corn is up, or whether people say this might be a year of low prices? No, you buy a farm and hold it. I bought a farm in the ’80s and I’ve been there once. It doesn’t grow faster if I go there and stare at it or cheer for it.

I think most ASX share investors, and especially those who just invest in index funds, should adopt this attitude. Trading based on what is happening around the world will almost certainly whittle down your capital and returns.

Sure, if a company is fundamentally disrupted or makes a calamitous management error, you may want to think about selling its shares. Just as Buffett would for his farm if it was discovered that corn was somehow carcinogenic.

However, most of the time, doing nothing is probably the right course of action. Even if it can be the hardest course to take.

The post The hardest part of ASX share investing (that no-one talks about) appeared first on The Motley Fool Australia.

More reading

• Flight Centre updates profit guidance; unveils $200m buy-back
• Why I’d put $2,500 into these top Vanguard ETFs
• Meet the $1 ASX stock that’s obliterated Nvidia in the last 12 months
• How to make $2,000 of monthly passive income from ASX shares
• Fletcher Building tips stable FY26 as divestments strengthen balance sheet

Motley Fool contributor Sebastian Bowen has positions in Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Fletcher Building Ltd (ASX: FBU) share price is in focus as the company expects FY26 EBIT of $375–$380 million, helped by $40 million in property deal profits.

What did Fletcher Building report?

• FY26 forecast EBIT: $375 million to $380 million, excluding discontinued operations
• Includes about $40 million of earnings from property sales
• Six recent divestments and property sales to deliver around $450 million in cash
• Net debt forecast to sit marginally above the mid-point of the $400–$900 million target range at 30 June 2026
• Moody’s credit rating to be withdrawn following balance sheet improvements

What else do investors need to know?

Fletcher Building has completed or agreed to six asset sales since the start of 2026, including divestments of its New Zealand construction business and several properties in Australia. The transactions, expected to yield about $450 million in net cash, will help pay down debt and simplify operations.

Management spotlighted steady demand in ongoing construction projects, but rising fuel and input costs are causing delays and some cancellations—especially in commercial projects. Fletcher Building cautions these pressures may affect performance in the first half of FY27.

What’s next for Fletcher Building?

The company is advancing its strategy to reduce debt and focus on core businesses after recent divestments. With a more stable and simplified capital structure, Fletcher Building aims to maintain investment-grade credit metrics, even after withdrawing its Moody’s credit rating.

Looking ahead, the company will keep a close eye on volatile trading conditions and cost pressures, especially in the commercial construction sector. Fletcher Building expects subdued new project activity could affect performance into FY27 if current trends persist.

Fletcher Building share price snapshot

Over the past 12 months, Fletcher Building shares have declined 11%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Fletcher Building tips stable FY26 as divestments strengthen balance sheet appeared first on The Motley Fool Australia.

More reading

• Flight Centre updates profit guidance; unveils $200m buy-back
• Meet the $1 ASX stock that’s obliterated Nvidia in the last 12 months
• 5 things to watch on the ASX 200 on Wednesday
• 6 ASX 200 shares with fresh buy ratings this week
• Here are the top 10 ASX 200 shares today

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.

The Australian Age Pension is one of the most generous in the world, but I’d rather rely on quality, high-yield ASX dividend stocks.

I appreciate owning businesses that are able to offer a good level of passive income and payout growth over time.

Future Generation Australia Ltd (ASX: FGX) is one of the ASX dividend stocks I’d be comfortable relying on, though not the only one. I believe it’s essential to have a diversified portfolio when it comes to dividends.

There are a few aspects that make Future Generation Australia an appealing option.

Diversification

If I were to rely on an ASX dividend stock to continue paying passive income across all economic conditions, I’d pick an investment with the ability to pay resilient passive income.

Older Australians relying on dividend income from the major ASX bank shares and ASX mining shares have already seen their payouts reduced this decade. COVID-19 hurt bank payouts, while lower iron ore prices led to dividend cuts for the miners.

Future Generation Australia’s business model is about having a diversified portfolio of funds from more than a dozen different fund managers. All of those fund managers work for free so that Future Generation Australia can donate 1% of its net assets each year to youth charities.

This investment setup means the fund can offer investors significant diversification – there are more than 450 underlying shares in the portfolio, across different sectors.

High-yield ASX dividend stock

One of the most appealing aspects of Future Generation Australia is the pleasing level of passive income it can provide to our bank accounts.

It grew its annual dividend per share by 0.2 cents in 2025 and I expect it will increase its payout by that amount again in FY26. This would take the annual payout to 7.4 cents per share.

At the time of writing, that possible payout translates into a forward grossed-up dividend yield of 7.9%, including franking credits. In my view, that’s superior to the best savings accounts out there, with payout growth potential.  

Rising payout

Future Generation Australia has a great record of dividend growth. For me, this is one of the main reasons why I prefer the ASX dividend stock compared to the age pension.

The business has increased its annual payout every year since 2015 – more than a decade of continuous passive income growth. The 2025 payout was hiked by close to 3%.

I’m not predicting rapid payout growth in the short term, but Future Generation Australia’s steady payout progress is a real positive for income-focused investors, considering it already has a very high dividend yield.

How many Future Generation Australia shares would it take to match the Age Pension?

Right now, the maximum Age Pension for a single person is approximately $31,200 annually.

To receive $31,200 annually from Future Generation Australia, an investor would need 295,148 shares based on the potential FY26 payout including the franking credits, or 421,622 shares excluding the franking credits.

I’d suggest Australians should have more than just one high-yield ASX dividend stock in a portfolio, though Future Generation Australia would certainly be an effective inclusion, in my opinion.

The post 295,148 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $9,000 monthly passive income?
• 3 ASX dividend shares raising dividends like clockwork
• How to invest $25,000 for passive income in superannuation?
• How much is needed in superannuation to target a $7,500 monthly passive income?
• Get paid huge amounts of cash to own these ASX dividend shares

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia. 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.

S&P/ASX 200 Index (ASX: XJO) shares recovered early losses to close just inside the green after interest rates were kept on hold yesterday.

ASX 200 shares had been sharply lower in early trading but moved up immediately after the rates announcement at 2.30pm.

The ASX 200 closed 0.042% higher at 8,917.7 points.

Meanwhile, brokers indicated continuing confidence in several ASX 200 shares by renewing their buy recommendations.

Let’s take a look.

Resmed CDI (ASX: RMD)

The Resmed share price closed 1.3% lower at $27.39 on Tuesday.

Over the past six months, this ASX 200 healthcare share has fallen 28%.

Citi renewed its buy rating on Resmed shares this week.

The broker cut its 12-month price target substantially from $48 to $38.

This still suggests a potential near-40% upside ahead.

NextDC Ltd (ASX: NXT)

The NextDC share price closed 0.4% higher at $14.87 on Tuesday.

This ASX 200 tech share has risen 21% in the calendar year to date (YTD) amid a broader sector rebound.

Citi reiterated its buy rating on NextDC shares on Monday with a price target of $19.10.

This implies potential capital gains of almost 30% ahead.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price finished at $70.79, down 0.9%, yesterday.

Over the past six months, this ASX 200 mining share has soared 40%.

Bell Potter reaffirmed its buy rating on Mineral Resources shares on Monday.

The broker lifted its 12-month target from $80.50 to $83.

This suggests a potential 17% upside ahead.

Newmont Corporation CDI (ASX: NEM)

The Newmont share price finished at $150.16 on Tuesday, up 2%.

This ASX 200 gold share has been volatile in 2026, and is down 0.6% YTD.

Macquarie renewed its buy rating on Newmont shares on Tuesday.

The broker lowered its 12-month target from $192 to $176.

This implies potential capital growth of 17% over the next year.

Qantas Airways Ltd (ASX: QAN)

The Qantas share price finished yesterday’s trading session at $9.96, up 0.2%.

The ASX 200 airline share has ripped 18% over the past month.

UBS renewed its buy rating on Qantas with a $11.15 share price target.

This suggests a potential 12% upside ahead.

Goodman Group (ASX: GMG)

The Goodman share price closed at $32.26 on Tuesday, up 0.6%.

This ASX 200 real estate share has popped 7% higher over this past month of trading.

Bell Potter reiterated its buy rating on Goodman shares on Monday with a price target of $35.50.

This implies a potential 10% upside ahead.

Goodman announced a dividend of 15 cents per share for 2H FY26 on Tuesday.

The ex-dividend date is 29 June. Investors will receive their dividend on 26 August.

The post 6 ASX 200 shares with fresh buy ratings this week appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• ASX 200 jumps back into the green as RBA keeps interest rates on hold
• Brokers rate these 6 ASX 200 shares a strong buy, and tip upsides of up to 227%
• Goodman Group announces June 2026 distribution
• Why is the ASX 200 falling despite a huge Wall Street rally?

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

Last month’s Australian federal budget changes seem to make superannuation the best financial tool for Australians to invest for passive income.

Superannuation has a lower tax rate compared to many individuals, trusts and companies. Pleasingly, it’s easy to invest for the long-term through the superannuation structure.

Receiving passive income is a very pleasing element of investing in shares. When thinking about the benefits of passive income, we need to remember that with investment income, we need to focus on the net income, meaning the after-tax figure. Full-time working Aussies that invest for passive income in their own name could lose a third of those payments to tax each year, which isn’t ideal.

So, in my view, superannuation is more appealing because of its lower tax rate in the accumulation phase compared to the typical individual’s tax rate for a full-time earner. In retirement, the tax rate could be 0%.

Of course, every household’s tax situation is different, so let’s look at the desired income level, without mentioning tax for the rest of the article.

How much is needed in superannuation for $8,000 of monthly passive income?

Receiving $8,000 in dividends each month equates to an annual goal of $96,000 per year. I’m sure lots of Australians would love to receive that amount of dividends each year without needing to do ongoing work for it.

Aussie investors need to think about what kind of investments they want to own and the yield that’s attached. I believe that ASX shares are the best choice for passive income, partly because of the likely franking credits that are attached to dividends from companies.

A portfolio with a dividend yield of 7% could be half the size of a portfolio with a dividend yield of 3.5% and generate the same level of dividend income.

For example, if a portfolio were approximately $1.37 million in size, it would generate approximately $96,000 of annual dividends with a 7% dividend yield. If a portfolio had a 3.5% dividend yield, it would need to be close to $2.74 million in size to generate the same amount.

Of course, other dividend yields would require different-sized portfolios.

A 5% dividend yield would require a portfolio size of $1.92 million.  

The types of ASX dividend shares I’d want to buy

If an Australian superannuation investor wants to unlock mid-to-higher dividend yields, I’d consider excellent companies with franking credits, attractively priced real estate investment trusts (REITs) with resilient payouts, as well as listed investment companies (LICs) with a good history of growing dividends.

Some of the excellent lower-yielding companies I’d consider are Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES) and Lovisa Holdings Ltd (ASX: LOV). I’m expecting excellent compounding payout growth from these names.

A few of the mid-range yielding ASX dividend stocks I’d look at are WCM Quality Global Growth Fund (ASX: WCMQ), Centuria Industrial REIT (ASX: CIP), Dexus Industria REIT (ASX: DXI) and Telstra Group Ltd (ASX: TLS).

I think some of the most attractive names with a higher yield include MFF Capital Investments Ltd (ASX: MFF), WCM Global Growth Ltd (ASX: WQG), Future Generation Global Ltd (ASX: FGG) and Hearts and Minds Investments Ltd (ASX: HM1).

The post How much is needed in superannuation to target an $8,000 monthly passive income? appeared first on The Motley Fool Australia.

More reading

• Brokers rate these 4 ASX 200 shares as a sell!
• Buy, hold, sell: Coles, Telstra, Wesfarmers, and Woolworths shares
• Centuria Industrial REIT unveils data centre strategy
• Centuria Capital Group unveils AI-powered growth at Investor Day
• These ASX dividend shares keep giving investors a pay rise

Motley Fool contributor Tristan Harrison has positions in Future Generation Global, Hearts And Minds Investments, Mff Capital Investments, Washington H. Soul Pattinson and Company Limited, Wcm Global Growth, and Wcm Quality Global Growth Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Lovisa, Mff Capital Investments, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Want to invest in the future? Well, the good news is that you can on the ASX.

There are a number of exchange traded funds (ETFs) that give investors exposure to the technologies, infrastructure, and industries that could shape the next decade.

Here are three exciting ASX ETFs that could be worth a closer look.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

The first ASX ETF to look at is the Betashares Global Robotics and Artificial Intelligence ETF.

This fund gives investors exposure to companies involved in robotics, automation, artificial intelligence (AI), and advanced industrial technology. Its holdings include ABB (SWX: ABBN), Keyence Corp (FRA: KEE), and NVIDIA (NASDAQ: NVDA).

The interesting part of this fund is that it reaches beyond the obvious AI names. It gives investors exposure to the machines, sensors, software, and specialist hardware that are changing how work gets done.

Factories are becoming more automated, hospitals are using more advanced surgical systems, warehouses and logistics networks are relying more heavily on robotics, and manufacturers are investing in technology that can improve precision, speed, and productivity.

Over the long term, businesses are likely to keep looking for ways to do more with fewer resources. That could keep demand for automation technology moving higher.

Global X Artificial Intelligence Infrastructure ETF (ASX: AINF)

Another ASX ETF that offers a way to invest in the future is the Global X Artificial Intelligence Infrastructure ETF.

This fund is built around the physical and operational backbone of artificial intelligence. Its holdings include Delta Electronics (FRA: DLS), Zhongji Innolight, and GE Vernova (NYSE: GEV).

That makes it quite different from many AI-focused investments. Rather than only targeting chipmakers or software platforms, this fund looks at what AI needs underneath the surface. That can include energy systems, data centre equipment, networking components, electrical infrastructure, and materials.

This is important because AI is not just a software story. It requires enormous computing power, reliable electricity, cooling, connectivity, and supply chains capable of supporting global demand.

As AI adoption grows, the infrastructure behind it may become just as important as the models themselves. This could bode well for the fund’s holdings over the long term.

Betashares Electric Vehicles and Future Mobility ETF (ASX: DRIV)

A third ASX ETF to look at is the Betashares Electric Vehicles and Future Mobility ETF.

This fund lets investors buy a slice of companies involved in electric vehicles, mobility technology, transport equipment, and related supply chains. Its holdings include Tesla (NASDAQ: TSLA), Sumitomo Electric Industries (FRA: SMO), and BYD (SEHK: 1211).

The future of transport is not only about electric cars. It also includes batteries, charging infrastructure, autonomous technology, advanced components, commercial vehicles, and smarter mobility systems.

That gives this fund a broader opportunity than simply trying to pick one winning carmaker.

The sector can be cyclical, competitive, and highly sensitive to policy settings and consumer demand. But the long-term shift toward cleaner, more connected transport still has years to run.

For investors wanting exposure to the changing way people and goods move around the world, this ASX ETF could be an exciting option.

The post Invest in the future with these exciting ASX ETFs appeared first on The Motley Fool Australia.

More reading

• 3 quality ASX ETFs to buy and hold until 2036
• 2 ASX ETFs positioned for the booming AI data centre buildout
• Want to invest in the future? These technology ETFs are killing it
• 2 ASX ETFs I’d buy for the AI decade
• 3 excellent ASX ETFs for beginners to buy now

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 Abb, GE Vernova, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended BYD Company. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• ASX 200 jumps back into the green as RBA keeps interest rates on hold
• Goodman Group announces June 2026 distribution
• Why is the ASX 200 falling despite a huge Wall Street rally?
• Which ASX gold miners has Macquarie just upgraded?
• Atlas Arteria urges shareholders to reject IFM’s $5.10 takeover bid

Motley Fool contributor Sebastian Bowen 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 Life360, Pinnacle Investment Management Group, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Life360 and Pinnacle Investment Management Group. The Motley Fool Australia has recommended Temple & Webster Group. 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 down around 0.2% at the time of writing on Tuesday afternoon as investors digest the latest interest rate hold decision by the Reserve Bank.

But when market sentiment looks rocky, it’s important to know which ASX 200 shares could drag down the index further.

Here are 4 ASX 200 shares that brokers rate as a sell, and some of them are tipped to fall up to 44% over the next 12 months.

Commonwealth Bank of Australia (ASX: CBA)

CBA shares are down around 0.5% on Tuesday afternoon, to $160.99 a piece. The ASX 200 banking giant’s shares dropped 14% in mid-May after it posted a disappointing third-quarter capital update and investor sentiment seems to have been volatile ever since. Even despite the lower-than-expected financial result, the banking giant still seems to be supported by a flight to quality. But brokers aren’t convinced. With ongoing earnings pressures and expectations that growth will be in the single digits going forward, the experts still see CBA shares as significantly overvalued at the current share price. TradingView data shows that the majority of analysts have a sell or strong sell rating (14 out of 16). They tip a potential 44% downside to a minimum target price of $90, at the time of writing. 

Westpac Banking Corp (ASX: WBC)

Westpac is another ASX 200 bank stock in the spotlight this week. Its shares are also down around 0.3% at the time of writing, to $35.22 each. Westpac posted a solid first-half result in early May, but sentiment is still low and broad bank sector weakness has still pulled the shares lower. The bank’s shares came under even more selling pressure last month after a court ruling weighed on sentiment. Brokers now consider Westpac shares as overvalued. The majority (nine out of 16) have a sell or strong sell rating on the shares. The minimum $29.41 target price implies the shares have the potential to fall another 16% over the next 12 months, at the time of writing. 

Wesfarmers Ltd (ASX: WES)

Wesfarmers shares are down around 2% at the time of writing on Tuesday, to $84.86 a piece. The dip follows a huge 21% rally over the past month. But it looks like many think the shares are now above fair price. The Bunnings and Kmart owner held a strategy day last week but there was no clear trading update. Analysts are concerned that there are no near-term catalysts which could see the stock charge higher. TradingView data shows analysts are divided about the outlook for Wesfarmers shares. The majority still have a hold rating on but several (four out of 14) now rate Wesfarmers as a strong sell. What they do agree on, however, is that there is a downside ahead. The minimum $65.10 target price implies Wesfarmers shares could fall around 23% over the next 12 months, at the time of writing.

Fortescue Ltd (ASX: FMG)

Fortescue shares are slightly lower on Tuesday afternoon, down around 0.1% to $20.79 each. The ASX 200 iron ore miner has had a volatile run this year. Its shares have fluctuated anywhere between $18.96 and $22.99 a piece. The issue is the company is heavily exposed to the price of iron ore, which has also swung wildly over the past 12 months. Iron ore has also faced margin pressure from tightening Chinese steel mill profitability standards. It looks like analysts are concerned that the outlook for Fortescue is just as uncertain as the past 12 months. TradingView data shows the experts are split between a hold and a sell/strong sell rating. Unsurprisingly, the target prices also vary wildly. The minimum $16.16 target price, however, implies a potential downside of up to 22%, at the time of writing.

The post Brokers rate these 4 ASX 200 shares as a sell! appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Coles, Telstra, Wesfarmers, and Woolworths shares
• Here’s the dividend forecast out to 2027 for CBA shares
• Is the Westpac share price a buy in June?
• Wesfarmers shares: Buy, hold or sell?
• How much superannuation does a 40-year-old actually need to retire comfortably?

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 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.

Dicker Data Ltd (ASX: DDR) shares have extended their recent rally on Tuesday, reaching their highest level in a year.

The Dicker Data share price climbed as high as $11.95 during mid-afternoon trade before easing slightly.

At the time of writing, the ASX tech share is up 1.97% to $11.92.

That takes its one-month gain to around 35%, while shareholders have enjoyed a rise of more than 50% over the past year.

So, what has investors buying Dicker Data shares?

Strong start to FY26

The recent rally followed a strong trading update released at Dicker Data’s annual general meeting (AGM) in late May.

For the first 4 months of FY26, unaudited gross revenue increased 13.4% to $1.27 billion.

Gross operating profit surged 19.3% to $120.9 million, while EBITDA climbed 32% to $58.2 million.

Net profit before tax delivered the biggest increase, jumping 45.5% to $47.3 million.

Management said the result was driven by stronger demand for endpoint products, software, and data centre refresh projects.

Margins also improved as the company sold through older inventory purchased at lower prices.

Tech spending is lifting demand

Dicker Data distributes hardware, software, and cloud products from major global technology vendors to more than 10,000 reseller partners across Australia and New Zealand.

This gives the company exposure to several areas of technology spending without needing to develop the products itself.

Demand is currently being supported by businesses replacing older computers, investing in data centres, and spending more on artificial intelligence (AI) infrastructure.

Software has also become a larger part of the business, with gross software sales increasing 21% during FY25 to around $1.17 billion.

Dicker Data has also added new vendors across cybersecurity, data management, and networking, expanding the range of products available to its reseller partners.

Management expects the strong end-of-financial-year trading period to support momentum through the first half. However, it warned that higher vendor prices and inventory replacement costs could weigh on demand later in the year.

Has the rally gone too far?

The strong trading update helps explain the recent rally, but a 35% rise in one month has also lifted expectations.

Dicker Data shares are now trading above several broker price targets published before the latest rally.

Morgan Stanley upgraded the stock to ‘overweight’ in late May and raised its target to $11.10.

UBS also lifted its valuation to $11.20, while Jarden has a buy rating and an $11 price target.

However, Macquarie is more cautious, with a neutral rating and a target of $10.35.

Only time will tell if Dicker Data shares have more room to run.

The post This ASX tech stock just hit a 52-week high after soaring 35% in a month appeared first on The Motley Fool Australia.

More reading

• ASX 200 tech stocks led the market with big share price gains last week
• 7 ASX shares attracting upgraded ratings this week
• 3 top ASX shares at 52-week highs I’d still buy
• 10 ASX shares given buy ratings this week
• 5 steps to bring in $1,000 per month in passive income

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