Category: Stock Market

Eagers Automotive Ltd (ASX: APE) shares have been on form over the past 12 months.

During this time, the ASX 200 share has risen by a sizeable 33%.

As a comparison, the S&P/ASX 200 Index (ASX: XJO) is up 3.8% over the same period.

Can the auto retailer’s shares continue to rise? Let’s see if Bell Potter rates the company as a buy, hold, or sell.

What is the broker saying?

Bell Potter notes that the company has held its annual general meeting this week and provided a trading update.

The broker was relatively pleased with what the ASX 200 share reported. It said:

Eagers held its AGM today and as usual provided a four month trading update to the end of April. The key points were: 1. Turnover is up c.5% on pcp; 2. Order intake is at record levels and orders taken in the first four months have exceeded deliveries by 29%; and 3. The independent used car businesses of easyauto123 and Carlins have had a record start to the year with PBT up 40% on pcp.

The company also provided an outlook for 1H2026 and said it expects underlying operating PBT for the core business (i.e. Australia and New Zealand) to be “in line with, or slightly ahead of” 1H2025. On top of this there will be two months contribution from CanadaOne Auto and this will result in “a record first half at a consolidated level”. Eagers then also said the outlook for 2H2026 is positive with an expected uplift in deliveries, supported by improved Toyota supply. The second half will also benefit from a full six month contribution from CanadaOne and positions the company “for a record year in 2026”.

The broker has reduced its earnings estimates slightly, due to “a 1-2% reduction in our revenue forecasts and also a modest decrease in our margin assumptions.”

Should you buy this ASX 200 share?

According to the note, the broker has responded to the update by retaining its buy rating on Eagers Automotive shares with a trimmed price target of $28.75.

Based on its current share price of $22.76, this implies potential upside of 26% for investors over the next 12 months.

In addition, a 3.5% dividend yield is expected over the period, boosting the total potential return to almost 30%.

Commenting on its recommendation, Bell Potter said:

There are no changes in the key assumptions we apply in each of the valuations used to determine our target price – 22.5x and 7.5x multiples in the PE ratio and EV/EBITDA and an 8.7% WACC in the DCF. The net result is a 2% decrease in our target price to $28.75 which has been driven by the earnings downgrades. This is still >15% premium to the share price so we maintain our BUY recommendation. Focus now perhaps shifts to vehicle deliveries in May and June – May should be out late next week – given these are two of the biggest months of the year and, as Eagers said, the company generates 20-25% of full year profit in these two months.

The post Does Bell Potter rate this ASX 200 share as a buy, hold, or sell? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why are Eagers Automotive shares tumbling on Wednesday?
• Why Eagers Automotive and Technology One shares just got a big buy call
• Buy, hold, sell: ANZ, Eagers, and Woolworths shares
• Why this consumer discretionary stock is poised for a 20% rise

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 recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX share market is a wonderful place to find investment opportunities that can provide strong levels of passive income in superannuation.

Some businesses can provide investors with a high dividend yield because they have a generous dividend payout ratio. The yield could be high because of pleasing franking credits. Or, the payout could be compelling because the business is priced cheaply.

Let’s look at two investment options that could deliver a very pleasing yield to investors with $25,000.

Rural Funds Group (ASX: RFF)

Some retirees may love the idea of investing in farmland for retirement. But, owning commercial property ourselves can come with a lot of administration and potentially costs. Why not just own a real estate investment trust (REIT) that invests in farmland for us.

It invests in areas like almonds, cattle, macadamias, vineyards and cropping, giving investors various exposure to different, attractive growth areas. Over time, Rural Funds benefits from rental indexation which is either fixed annual increases or the rises are linked to inflation, plus market reviews.

Another positive of Rural Funds is that it has defensive rental earnings, with high-quality and reliable tenants, with a weighted average lease expiry (WALE) of well over a decade.

The business pays a distribution every quarter and this means shareholders are getting regular passive income in superannuation.

I expect the business will pay an annual distribution of something like 11.73 cents (the same as FY26) in FY27. That translates into a forward distribution yield of 5.9%.  

Future Generation Australia Ltd (ASX: FGX)

Future Generation Australia is a listed investment company (LIC) that has a number of positives.

For starters, it donates 1% of its net assets each year to youth-focused charities. Fund managers work for free to enable the business to enable that philanthropy.

The LIC is invested in the funds of a number of different fund managers, meaning Future Generation can provide significant diversification.

Future Generation Australia is able to provide investors with growing dividends because LICs can turn investment profits into dividends.

It has increased its annual dividend per share each year for the last decade, meaning it has provided an excellent level of stability for investors. The annual payout for FY25 was 7.2 cents per share, which translates into a trailing grossed-up dividend yield of 7.7%, including franking credits, at the time of writing. That’s a great yield for superannuation investors wanting passive income, in my opinion.

I think it’s likely the business will increase its annual payout during 2026, so the yield could be even better.

The post How to invest $25,000 for passive income in superannuation? appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $3,000 monthly passive income?
• Forget term deposits! I’d buy these ASX dividend shares instead
• Buy these ASX dividend shares with 6%+ yields
• How much is needed in superannuation to target a $7,500 monthly passive income?
• How to build a $52,000 annual passive income

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia and Rural Funds Group. 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 Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Getting started in the share market can feel intimidating, but exchange traded funds (ETFs) can make the first step much easier.

They allow investors to buy a ready-made basket of shares in a single trade, which can reduce the pressure of trying to pick the perfect stock.

They can also help beginners spread their money across different markets, sectors, and investment styles from day one.

Here are three ASX ETFs that could be perfect for beginners.

Vanguard Australian Shares Index ETF (ASX: VAS)

The first ASX ETF to look at is the Vanguard Australian Shares Index ETF.

This fund is a simple way to buy a broad slice of corporate Australia. It holds many of the country’s largest listed businesses, including Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and Wesfarmers Ltd (ASX: WES).

For beginners, this can be useful because it turns the local market into a single investment. Instead of choosing between banks, miners, retailers, healthcare shares, and property trusts, this ASX ETF provides exposure to all of them.

It also keeps investors connected to familiar companies that shape the Australian economy. That can make it easier to understand what is inside the fund and why it moves.

Vanguard US Total Market Shares Index ETF (ASX: VTS)

Another ASX ETF that could be ideal for beginners is the Vanguard US Total Market Shares Index ETF.

This fund opens the door to the full depth of the US share market. It does not just focus on the largest names. It reaches across large, mid, small, and micro-cap companies, giving investors exposure to thousands of businesses in one trade.

Its holdings include NVIDIA (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT). These companies sit at the centre of major global trends, but the fund also captures a much wider set of American businesses.

This breadth is important. The US has produced many of the world’s most successful companies, but future winners will not all come from the same corner of the market.

VanEck Morningstar International Wide Moat ETF (ASX: GOAT)

A third ASX ETF that could be perfect for beginners is the VanEck Morningstar International Wide Moat ETF.

This fund takes a different approach. It looks for global companies that have sustainable competitive advantages and are trading at attractive valuations.

That gives it a stock picker’s flavour inside an ETF structure. Rather than simply buying the biggest companies in the market, it searches for businesses that may be difficult for rivals to disrupt.

Current holdings include Novo Nordisk (CPH: NOVO B), Thales (FRA: CSF), and Nike (NYSE: NKE).

This can be a helpful lesson for beginners. Good investing is not just about chasing growth or buying household names. It is also about owning businesses with staying power and paying attention to price.

The post 3 amazing ASX ETFs that could be perfect for beginners appeared first on The Motley Fool Australia.

More reading

• This ASX bank ETF has a 5.2% dividend yield right now
• 3 excellent ASX ETFs that could supercharge your portfolio
• Where to invest $10,000 in ASX ETFs in June
• These are the cheapest ASX ETFs on the Australian market
• How to build a $150,000 ASX share portfolio from scratch

Motley Fool contributor James Mickleboro has positions in Nike. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, Nike, Nvidia, and Wesfarmers. The Motley Fool Australia has recommended Apple, BHP Group, Microsoft, Nike, Nvidia, VanEck Morningstar International Wide Moat ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Here is a number worth sitting with.

In a year when the ASX 200 rose 7%, Wesfarmers Ltd (ASX: WES) shares fell 9%.

That gap has a lot to do with the stock’s valuation coming back to earth after the it traded at 37 times forward earnings in mid-2025.

Today it trades at around 28.5 times earnings, and Morgans just upgraded it to accumulate.

Here’s why investors should take a closer look at Wesfarmers shares.

The half-year result was strong

Wesfarmers posted NPAT of $1,603 million for the half year ended December 2025, up 9.3% on the prior year.

Free cash flows surged 35.6% to $2,745 million. Bunnings revenue rose 4% to $10.7 billion.

Kmart Group delivered 3.2% growth to $6.4 billion. The interim dividend lifted 7.4% to $1.02 per share, fully franked.

Managing director Rob Scott said:

Wesfarmers’ increase in profit was supported by strong earnings contributions from our largest divisions – Bunnings, Kmart Group and WesCEF.

Sales momentum has continued into the second half, with Bunnings, Officeworks, and Kmart all delivering further growth.

Lithium is turning from a cost to a contributor

Most investors know Wesfarmers for Bunnings and Kmart, yet few know it is also one of Australia’s most significant lithium producers.

In 2019, Wesfarmers paid $776 million to acquire a 50% stake in the Mt Holland lithium project in Western Australia, forming the Covalent Lithium joint venture with Chilean mining giant SQM.

The project includes one of the largest known lithium deposits in the world and a downstream refinery in Kwinana designed to produce battery-grade lithium hydroxide for electric vehicle manufacturers.

For two years, the joint venture drained cash as construction costs mounted.

Now, with lithium prices up approximately 60% year to date in 2026, lithium could substantially contribute to Wesfarmers’ bottom line.  

This asset adds great earnings optionality to a business that already generates enormous cash from its retail divisions.

It is a free call option that few investors are pricing in right now.

What Morgans said

Brokers seem to be equally bullish.

Morgans upgraded Wesfarmers shares to accumulate this week with an $81.10 price target.

The broker said:

WES’s share price has fallen 9% over the past 12 months and 7% over the past 6 months. The stock is now trading on a more reasonable 26.5x FY27F PE compared to a peak one-year forward multiple of ~37x in August 2025. Our target price increases slightly to $81.10 and with a forecast 12-month TSR of 12%, we upgrade our rating to ACCUMULATE. In our view, WES remains a high-quality business with a healthy balance sheet and a proven management team.

The risks

However, Wesfarmers is not immune to a consumer slowdown.

Kmart and Bunnings both rely on Australians spending money at home.

If the RBA’s rate hiking cycle weighs on household budgets more than expected, volumes could soften.

The stock is also not cheap in absolute terms at around 28.5 times earnings.

Foolish takeaway

Wesfarmers shares have rarely been available at a more reasonable price relative to the quality of the business.

Bunnings and Kmart keep growing.

Lithium is starting to contribute, and the stock’s dividend keeps rising.

For long-term investors, the pullback in Wesfarmers shares may look more like an entry point than a warning sign.

The post Why Wesfarmers shares remain the gold standard of ASX retail investing appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $3,000 monthly passive income?
• Why Wesfarmers shares are a retiree’s dream for FY27
• Got $50k of savings? Here’s how I’d turn that into passive income of $10k a year
• How do ASX dividend shares compare to savings deposit rates today?
• Buy, hold, sell: Catapult Sports, Guzman Y Gomez, and Wesfarmers shares

Motley Fool contributor Mark Verhoeven 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.

Dividend investing is not just about finding the highest yield.

A large dividend yield can look attractive on paper, but it is not much use if the payout is under pressure or the business is too cyclical for comfort.

I prefer ASX dividend shares with strong market positions, repeat demand, and the ability to keep generating cash through different economic conditions.

Two shares I think fit that description are named in this article.

Telstra Group Ltd (ASX: TLS)

Telstra is not the fastest-growing business on the ASX, but I think it can be a very useful income share.

The company provides mobile, internet, and connectivity services to households, businesses, and governments across Australia. These services have become essential for daily life.

That gives Telstra a defensive quality I like. People can delay buying a new sofa, an overseas holiday, or a new appliance. They are much less likely to cancel their mobile or internet connection unless they really need to. For businesses, connectivity is even more important.

Telstra’s mobile network is also a key advantage. The company has invested heavily over many years, and its network quality remains a major part of its competitive position.

There are risks. Competition can affect pricing. Regulation can affect returns. Technology keeps changing, and maintaining a leading network requires ongoing investment. But I think Telstra has a more resilient earnings base than many ASX shares.

For dividend investors, the franked income is a major attraction. The dividend yield may not always be the biggest on the ASX, but I think Telstra offers a good mix of income, defensive demand, and long-term relevance.

Woolworths Group Ltd (ASX: WOW)

Woolworths is another ASX dividend share I would be happy to buy and hold.

Supermarkets can look boring, but that can be a good thing for an income portfolio.

Food and household essentials are repeat-purchase categories. Households may trade down, buy more private label products, or search harder for specials when budgets are tight. But they still need to buy groceries.

That gives Woolworths a level of demand resilience that many businesses do not have.

I also like that the company has several ways to improve over time. Loyalty, online grocery, supply chain investment, private label, and better store productivity can all support the business.

There are risks to consider. The supermarket sector is competitive, and Woolworths must keep proving value to shoppers. Costs can rise, theft can increase, and margins are always watched closely. But Woolworths has scale, a trusted brand, and a central place in household spending.

I think that makes it a sensible defensive holding for income investors.

Foolish takeaway

Dividend shares do not need to be exciting to be useful.

In fact, I think some of the best income holdings are the ones investors can understand quickly and hold patiently.

Telstra and Woolworths both serve everyday needs and have a steadier foundation than many businesses. For investors building passive income over time, that kind of reliability is worth paying attention to.

The post 2 ASX dividend shares I’d buy for reliable passive income appeared first on The Motley Fool Australia.

More reading

• Why Telstra and these ASX dividend shares could be top buys for income
• 3 reasons to buy Woolworths shares at $34
• Telstra shares fall 6% from a multi-year high: What happened, and is it time to sell up?
• How much is needed in superannuation to target a $3,000 monthly passive income?
• Should investors still be thinking defensive in today’s market?

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

ASX dividend shares can be a great place to look for passive income.

But not all dividend shares are created equal. The best income options usually have dependable earnings, strong market positions, and the ability to keep rewarding shareholders through different market conditions.

With that in mind, here are three ASX dividend shares that are rated as buys by analysts and could be worth a closer look.

Cedar Woods Properties Ltd (ASX: CWP)

Cedar Woods Properties is an ASX dividend share that could appeal to income investors.

The property developer has a diversified portfolio of residential communities, townhouses, apartments, and commercial projects across Australia. This gives it exposure to long-term demand for housing, particularly in markets where population growth and housing shortages remain important themes.

Bell Potter is bullish and expects Cedar Woods to pay dividends of 38 cents per share in FY 2026 and 41 cents per share in FY 2027. Based on its current share price of $6.84, this represents dividend yields of 5.5% and 6%, respectively.

The broker has a buy rating and $9.65 price target on its shares.

Lottery Corporation Ltd (ASX: TLC)

Another ASX dividend share that could be a top pick is Lottery Corporation.

It operates lotteries and Keno across Australia, giving it exposure to a highly cash-generative and relatively defensive form of consumer spending. While jackpot activity can influence short-term performance, lotteries have historically shown resilience through different economic conditions.

That defensive profile can be attractive for income investors. The company benefits from well-known brands, large customer reach, and exclusive or long-dated licences in key markets. These characteristics can support strong cash generation, which is important for dividends.

The team at UBS believes this will underpin fully franked dividends of 17 cents per share in FY 2026 and then 21 cents per share in FY 2027. Based on its current share price of $5.34, this would mean dividend yields of 3.2% and 3.9%, respectively.

UBS has a buy rating and $6.35 price target on its shares.

Telstra Group Ltd (ASX: TLS)

Telstra remains one of the most popular ASX dividend shares for income investors and it isn’t hard to see why.

The telco giant has a defensive earnings profile, supported by millions of mobile, broadband, and enterprise customers across Australia. Its services are essential for households and businesses, which gives the company a level of resilience that many other businesses do not have.

The mobile division is the key growth driver. Telstra has the largest mobile network in Australia and continues to benefit from strong demand for data, connectivity, price increases, and premium network coverage. This has been supporting steady earnings growth and cash flow generation.

Morgan Stanley expects this to lead to franked dividends of 20 cents per share in FY 2026 and then 21 cents per share in FY 2027. Based on its current share price of $5.23, this represents dividend yields of 3.8% and 4%, respectively.

The broker has an overweight rating and $5.40 price target on its shares.

The post Why Telstra and these ASX dividend shares could be top buys for income appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares I’d buy for reliable passive income
• Telstra shares fall 6% from a multi-year high: What happened, and is it time to sell up?
• How much is needed in superannuation to target a $3,000 monthly passive income?
• Why these ASX real estate stocks could be sleeping giants
• How to start investing in ASX shares in 2026

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

ASX energy share Elixir Energy Ltd (ASX: EXR) has been making its longer-term stockholders very happy of late.

How happy?

Well, a year ago, you could have picked up Elixir Energy shares at an intraday low of 2.9 cents each.

In afternoon trade on Wednesday, those same shares were changing hands for 11.5 cents apiece. That sees the ASX energy shares up a whopping 296.6% over the past 12 months.

Or enough to turn a $10,000 investment into $39,655.

To put that performance into some context, the S&P/ASX Small Ordinaries Index (ASX: XSO) is up 8.7% since this time last year.

And according to the team at Euroz Hartleys, Elixir Energy – which counts as the largest acreage holder in the Taroom Trough, located in Queensland’s Bowen Basin – is well placed to keep charging higher in the months ahead.

Here’s why.

ASX energy share tapping into Queensland’s gas riches

On 18 May, Elixir Energy released an update on the flow testing operations of its Diona-1 exploration well in the Bowen Basin.

The ASX energy shares said the tests from the well proved a recoverable gas and condensate resource, an over pressured system, and low impurity hydrocarbon composition.

Commenting on the results, Elixir Energy CEO Stuart Nicholls said:

This unoptimised vertical exploration well continues to show encouraging results and flows which may improve significantly once back pressure is reduced sufficiently from the remaining stimulation fluids.

Given the proximity to the pipeline, it is worth persisting in pursuit of this objective whilst working on the booking of a new Contingent Resource which reflects the success of the campaign to date.

Euroz Hartley said Elixir’s update was “broadly positive”.

“We view this as a constructive update for EXR, but not yet a commercial flow-rate outcome,” the broker said.

Euroz Hartley noted:

The main near-term catalyst remains EXR’s Lorelle-3H flow test, which sits in the core Taroom Trough fairway and is expected to use an optimised horizontal well and frac design, consistent with Shell’s approach next door.

As for last week’s Diona-1 well update, the broker said:

The key positive from this announcement is that Diona appears to extend the Taroom Trough play beyond where it was previously considered to sit, increasing the project’s strategic relevance and potential resource footprint.

The inclusion of the Diona sub-block increases the Taroom Trough acreage position by a further net 184km2 / 45k acres, taking the total position to 548k net acres and representing a basin-leading position within the Taroom Trough.

Connecting the dots, the broker maintained its speculative buy rating on the ASX energy share with a price target of 28 cents a share.

That represents a potential upside of more than 143% from Elixir Energy’s share price on Wednesday afternoon.

The post This ASX energy share has rocketed 297% in a year. Here’s why it’s forecast to more than double your money again appeared first on The Motley Fool Australia.

More reading

• 3 amazing ASX ETFs that could be perfect for beginners
• Why Wesfarmers shares remain the gold standard of ASX retail investing
• 2 ASX dividend shares I’d buy for reliable passive income
• Why Telstra and these ASX dividend shares could be top buys for income
• This ASX bank ETF has a 5.2% dividend yield 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 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.

There are many exchange-traded funds (ETFS) listed on the ASX. These range from broad-based index funds like the iShares S&P 500 ETF (ASX: IVV) and the Vanguard Australian Shares Index ETF (ASX: VAS) to niche and thematic ETFs like the BetaShares Crude Oil Index Complex ETF (ASX: OOO) and the Global X Hydrogen ETF (ASX: HGEN).

Saying that, if you are looking for an ETF that offers up a dividend yield greater than 4% today, your choices are far more nuanced. In fact, only a handful of funds still offer yields of that size. Even the broad-based index funds, long famed for their fat dividends, aren’t in that ballpark. VAS, for example, currently trades on a trailing yield of 3.14% (as of yesterday’s closing price).

That’s why, if you’re an investor who prioritises maximising dividend cash flow above all else, you may wish to consider the VanEck Australian Banks ETF (ASX: MVB) today.

This is a very simple ASX ETF. As its name implies, MVB gives investors access to an underlying portfolio of ASX bank shares. It keeps things simple, with just seven bank stocks in its portfolio at present. As one might expect, the big four are all there, and take up a lot of room.

Which ASX bank shares are in this dividend ETF?

As it currently stands, Commonwealth Bank of Australia (ASX: CBA) shares are at the top of the pile, taking up about 20% of MVB’s portfolio. ANZ Group Holdings Ltd (ASX: ANZ) is next, contributing 19.9%, followed by Westpac Banking Corp (ASX: WBC)’s 18.9%.

National Australia Bank Ltd (ASX: NAB) accounts for a further 17%.

Then we have two of the ASX’s smaller bank shares. Bendigo and Adelaide Bank Ltd (ASX: BEN) and Bank of Queensland Ltd (ASX: BOQ) are the smallest holdings in the VanEck Australian Banks ETF.

That’s six. So what about number seven? Well, that would be the ASX’s ‘fifth bank’, the millionaire’s factory, also more formally known as Macquarie Group Ltd (ASX: MQG). Macquarie, although not a pure bank, is MVB’s largest holding, making up 21.4% of the entire portfolio.

As such, the VanEck Australian Banks ETF can be thought of as a ‘seven-for-the-price-of-one’ investment in the Australian financial sector.

But let’s talk dividends.

Over the past 12 months, investors have received four dividend distributions from MVB. These total $2.19 per unit. At the last MVB unit price of $42.52, that gives the VanEck Australian Banks ETF a trailing dividend distribution yield of 5.15%. Those came with an average franking level of 91%.

There’s no guarantee buying MVB units today will secure you that kind of yield going forward, of course. No ASX dividend share or ETF can promise that. However, given the high levels of income ASX bank shares tend to pay out, I’d be surprised if this ETF didn’t remain a reliable source of income for the foreseeable future.

The post This ASX bank ETF has a 5.2% dividend yield right now appeared first on The Motley Fool Australia.

More reading

• 3 amazing ASX ETFs that could be perfect for beginners
• How I’d invest $20,000 in ASX shares before the end of FY26
• 3 ASX shares that could build serious wealth for shareholders
• ASX 200 rises as inflation surprise leaves investors with one big question
• Top brokers name 3 ASX shares to buy now

Motley Fool contributor Sebastian Bowen has positions in Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank and Macquarie Group. The Motley Fool Australia has recommended 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.

A 10-year investment horizon changes the way investors look at ASX 200 shares.

Short-term earnings volatility, market sentiment, and valuation swings are still important. But over a decade, the bigger question is whether a business is becoming more important to its customers, expanding its market opportunity, and building a stronger competitive position.

Two ASX 200 shares that could fit that description are listed below.

Netwealth Group Ltd (ASX: NWL)

The first ASX 200 share to look at is Netwealth.

Netwealth operates an investment platform used by financial advisers, wealth managers, and their clients.

What makes Netwealth stand out is the way wealth management is becoming more digital, personalised, and data-driven. Advisers are increasingly expected to do more for clients, with better reporting, greater transparency, and more efficient portfolio administration.

That makes the platform layer very important. A good platform does not just hold investments. It can become the operating system that helps advisers manage client relationships, investment choices, reporting, tax information, and administration.

Netwealth has built its reputation by being nimble, adviser-focused, and technology-led. That gives it room to keep improving its offering as client expectations rise and financial advice becomes more complex.

The business will still face competition from other platforms and pressure to keep investing in technology. Market weakness can also slow funds growth. But over 10 years, a strong platform with loyal adviser relationships could become a much larger business.

Bell Potter is a fan and currently has a buy rating and $30.00 price target on Netwealth’s shares. This implies potential upside of 36% from current levels.

NextDC Ltd (ASX: NXT)

Another ASX 200 share that could be worth buying and holding is NextDC.

It develops and operates data centres, which are becoming increasingly important as businesses shift more workloads to the cloud, adopt artificial intelligence tools, and store larger amounts of data.

This is not a passing trend. Digital infrastructure is becoming essential infrastructure. Companies need secure, reliable, and scalable places to house their computing power and connect to cloud providers, networks, and technology partners.

NextDC is positioned right in the middle of that demand. Its facilities serve customers that need high-performance data centre capacity, and the company has been investing heavily to expand its footprint.

That investment can weigh on near-term earnings and cash flow, so this is not a low-risk option. Data centres are capital-intensive, and expectations are high.

Even so, the long-term demand picture remains attractive. If data usage and AI workloads continue to grow, NextDC could be one of the ASX’s clearest ways to gain exposure to the infrastructure behind the digital economy.

Ord Minnett is very positive on the company’s outlook. It currently rates NextDC shares as a buy with a $21.50 price target. This offers 40% upside based on its current share price.

The post 2 of the best ASX 200 shares to buy and hold for 10 years appeared first on The Motley Fool Australia.

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• Down 40%+! I’d buy CSL and these ASX shares while investors are still cautious
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Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was on form and charged higher. The benchmark index rose 0.7% to 8,717.7 points.

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

ASX 200 expected to fall

The Australian share market looks set for a poor session on Thursday despite a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 45 points or 0.5% lower this morning. In the United States, the Dow Jones was up 0.4%, the S&P 500 edged slightly higher, and the Nasdaq rose 0.1%.

Buy Nufarm shares

Nufarm Ltd (ASX: NUF) shares rocketed almost 14% on Wednesday following the release of the agricultural chemicals company’s results. Bell Potter believes there is more to come. This morning, the broker has retained its buy rating and $3.60 price target on Nufarm shares. It said: “Our Buy rating is unchanged. NUF is executing on its cost out initiatives ($32m of the $50m FY26e target achieved and a $50m target in FY27-28e) with a more favourable backdrop in crop protection markets and omega-3 (a doubling in fishoil pricing). Despite this NUF trades at a ~25% discount to global crop protection and seed peers.”

Oil prices sink

ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) could have a poor session on Thursday after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 4.75% to US$89.42 a barrel and the Brent crude oil price is down 4.7% to US$94.93 a barrel. Traders were selling oil after the US stated that it would give Iran peace talks “every chance to succeed.”

Buy Eagers shares

Bell Potter remains bullish on Eagers Automotive Ltd (ASX: APE) shares. In response to its annual general meeting, the broker has retained its buy rating with a trimmed price target of $28.75 (from $29.25). It said: “There are no changes in the key assumptions we apply in each of the valuations used to determine our target price – 22.5x and 7.5x multiples in the PE ratio and EV/EBITDA and an 8.7% WACC in the DCF. The net result is a 2% decrease in our target price to $28.75 which has been driven by the earnings downgrades. This is still >15% premium to the share price so we maintain our BUY recommendation. Focus now perhaps shifts to vehicle deliveries in May and June – May should be out late next week – given these are two of the biggest months of the year and, as Eagers said, the company generates 20-25% of full year profit in these two months.”

Gold price falls

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Thursday after the gold price fell overnight. According to CNBC, the gold futures price is down 1% to US$4,456.2 an ounce. Increasing interest rate hike bets sent gold down to a two-month low.

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

More reading

• Are Nufarm shares a buy, hold or sell after jumping 13% on half-year results?
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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.