Category: Stock Market

  • If I wanted to outperform the ASX 200 over the next 10 years, I’d focus here

    Two smiling work colleagues discuss an investment at their office.

    If my goal was simply to match the S&P/ASX 200 Index (ASX: XJO), I could just buy an index exchange-traded fund (ETF) and call it a day.

    But if I genuinely want to outperform over the next decade, I think I need exposure to businesses with structural tailwinds, pricing power, and the ability to reinvest capital at high returns.

    For me, that means leaning into quality, not speculation.

    Here’s where I’d focus.

    Structural growth in wealth management

    One of the clearest long-term trends in Australia is the shift toward professional financial advice and platform-based wealth management.

    That’s why I’d want exposure to Hub24 Ltd (ASX: HUB).

    Funds under administration continue to grow as advisers migrate to more modern, feature-rich platforms. What excites me is the operating leverage. As scale builds, margins expand. Incremental flows are highly profitable.

    If the company keeps executing, I believe earnings growth could exceed the broader market for years.

    Global healthcare compounding

    Healthcare is another area where I think long-term outperformance is possible.

    ResMed Inc. (ASX: RMD) gives exposure to global demand for sleep and respiratory care. Ageing populations and increasing diagnosis rates create a long runway.

    What I like most is the mix of hardware and high-margin software. Its cloud-connected ecosystem adds recurring revenue and stickiness.

    If earnings keep compounding at attractive rates, I think the market will eventually reward that consistency.

    High-margin niche technology

    I also like niche technology leaders with strong competitive moats.

    Pro Medicus Ltd (ASX: PME) is a good example. Its imaging software platform is used by leading hospitals globally, and switching costs are significant.

    Concerns about artificial intelligence (AI) disruption have weighed on sentiment. But I think leading providers are more likely to integrate AI into their platforms than be displaced by it.

    With long-term contracts, global expansion, and premium margins, this is the type of company I’d back to grow faster than the market over a decade.

    Selective exposure to cyclicals with leverage

    Outperformance of the ASX 200 index can also come from well-positioned cyclicals.

    Qantas Airways Ltd (ASX: QAN) is one I’d consider for this bucket. Capacity discipline, a newer fleet, and strong loyalty economics have reshaped the business.

    If management continues to execute well, earnings could remain strong even if conditions normalise.

    The mindset that matters

    For me, outperforming the ASX 200 is about owning businesses with durable advantages, letting them compound, adding capital during volatility rather than panicking.

    There will be drawdowns. Some years will disappoint. But over 10 years, I think quality growth tends to win.

    Foolish takeaway

    If I genuinely want to beat the ASX 200 over the next decade, I’d focus on structural growth, global reach, and strong competitive positions.

    Hub24, ResMed, Pro Medicus, and even selective cyclicals like Qantas represent the kind of mix I believe can outperform. Not every year, but over time.

    The post If I wanted to outperform the ASX 200 over the next 10 years, I’d focus here appeared first on The Motley Fool Australia.

    Should you invest $1,000 in HUB24 Limited right now?

    Before you buy HUB24 Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and HUB24 Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 20 Feb 2026

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    Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Hub24 and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Why I’d invest $5,000 in these ASX dividend shares

    Beautiful young woman drinking fresh orange juice in kitchen.

    ASX dividend shares can play an important role in many portfolios. Beyond the potential for capital growth, they offer investors the chance to generate a steady stream of income along the way.

    Australia’s share market has a strong dividend culture, with many companies returning a large portion of their profits to shareholders each year. For investors focused on income, that creates plenty of opportunities across different sectors.

    If I were looking to put $5,000 into dividend shares today, here are a few ASX shares I think are worth considering.

    Telstra Group Ltd (ASX: TLS)

    Telstra has become one of the more dependable dividend payers on the ASX in recent years.

    The telecommunications giant benefits from the essential nature of its services. Mobile connectivity and internet access have become necessities for both households and businesses, which helps support steady demand for Telstra’s network.

    The company has also been strengthening its competitive position through continued investment in its mobile network and digital infrastructure.

    With strong cash flow and a clear focus on shareholder returns, Telstra’s dividend continues to be an appealing feature for income investors.

    Transurban Group (ASX: TCL)

    Transurban offers exposure to a very different type of income stream.

    The company owns and operates major toll roads across Australia and North America. These infrastructure assets generate revenue as motorists travel on key transport routes.

    One of the attractive aspects of Transurban’s business model is the long-term nature of its concession agreements. Many of its toll roads operate under contracts that last decades, which provides strong visibility over future cash flow.

    In many cases, toll prices also increase each year in line with inflation or predetermined escalation formulas. That can help support gradually rising revenue and distributions over time.

    For investors looking for relatively stable income backed by infrastructure assets, Transurban remains an appealing option.

    Macquarie Group Ltd (ASX: MQG)

    Macquarie brings a different dimension to an income-focused portfolio.

    It has built a global financial services and asset management business that spans infrastructure, renewable energy, commodities, and investment banking.

    While Macquarie’s earnings can move around more than some traditional dividend stocks, the company has a long track record of generating strong profits across market cycles.

    That has allowed it to return meaningful dividends to shareholders over time while still reinvesting in new growth opportunities.

    Investors seeking a combination of income and exposure to a world-class financial services business may find Macquarie an interesting option.

    Woolworths Group Ltd (ASX: WOW)

    Woolworths is another ASX dividend share that many income investors gravitate toward.

    As Australia’s largest supermarket operator, it sells essential goods that households continue to buy regardless of economic conditions. That makes its earnings more defensive compared with many other sectors.

    The company’s nationwide store network and supply chain scale give it a strong competitive position in the grocery market.

    While the dividend yield may not always be the highest on the ASX, Woolworths has a long history of paying reliable dividends backed by consistent earnings.

    Foolish takeaway

    Dividend investing doesn’t need to be complicated. Some of the most effective income portfolios are built around companies with strong cash flow, durable business models, and a history of returning capital to shareholders.

    Telstra, Transurban, Macquarie, and Woolworths all operate in very different industries, but each offers characteristics that many dividend investors value.

    The post Why I’d invest $5,000 in these ASX dividend shares appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Macquarie Group Limited right now?

    Before you buy Macquarie Group Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Macquarie Group Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 20 Feb 2026

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    Motley Fool contributor Grace Alvino has positions in Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Transurban Group. The Motley Fool Australia has positions in and has recommended Macquarie Group, Telstra Group, Transurban 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.

  • 2 ASX dividend stocks to buy and hold for 10 years

    Couple furniture shopping.

    These 2 ASX dividend stocks may appeal to long-term income investors.

    Harvey Norman Holdings Ltd (ASX: HVN) and Super Retail Group Ltd (ASX: SUL) operate well-known retail brands across Australia and overseas. Both ASX dividend stocks have also built reputations for returning consistent cash to shareholders.

    Harvey Norman: retail and freehold property

    Harvey Norman is one of Australia’s most recognisable retail businesses. It sells electronics, furniture, bedding and appliances through a network of franchised stores.

    But this ASX dividend stock is not just a retailer. A key strength of the business is its significant property portfolio. Many of its stores are located on freehold land owned by the group.

    This real estate portfolio has become an important source of value and income for the company. In recent years it has also helped underpin profitability, alongside the core retail operations. In first half year results 2026, Harvey Norman reported a 15% increase in net profit after tax to about $322 million as sales rose 7% to $5.16 billion.

    Another attraction for income investors is the dividend track record 0f the ASX dividend stock. The payout ratio is around 58%, suggesting the dividend is reasonably supported by earnings.

    Macquarie remains positive on the retailer. It believes the company is positioned to pay fully franked dividends per share of 27.8 cents in FY 2026 and 31.2 cents in FY 2027. Based on its current share price of $5.46, this represents dividend yields of 5.1% and 5.7%, respectively.

    The broker has a buy rating and $6.60 price target on the ASX dividend stock. This points to a 21% upside at current price levels.

    Super Retail Group: diverse retail brands

    Super Retail Group is another well-known Australian retailer, operating brands such as Supercheap Auto, Rebel, BCF and Macpac. These brands focus on automotive, sports and outdoor recreation products, giving the company exposure to several popular consumer categories.

    One of the company’s biggest strengths is its diversified portfolio of retail brands. This helps spread risk across different consumer segments and has supported steady revenue growth.

    The ASX dividend stock posted solid revenue growth, supported by resilient demand across auto and leisure categories and continued online traction. The group generates strong operating cash flow, which reached more than $400 million in the past year.

    Super Retail Group is also known for its generous dividend policy. The company aims to pay out around 60% of underlying net profit. The retailer pays shareholders twice a year and has built a reputation for consistent, largely fully franked payouts.

    In stronger years, the ASX dividend stock has also delivered special dividends. The current yield is attractive at 4.2% compared to the market.

    Most analysts rate the ASX dividend stock a buy. They have set the average 12-month price target at $16.66, implying an 8% upside. This could bring total earnings for the year to 12%.

    The post 2 ASX dividend stocks to buy and hold for 10 years appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Harvey Norman Holdings Limited right now?

    Before you buy Harvey Norman Holdings Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Harvey Norman Holdings Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 20 Feb 2026

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

  • 4 reasons not to panic-sell ASX shares during March

    A smiling woman holds a sign saying 'Don't panic', indicating unwanted share price movement

    It’s not a good feeling to see our ASX share portfolios decline in value. Our brains are supposedly wired to feel the pain of a loss more than the joy of a gain.

    But selling in March could be a bad decision.

    I think investors should hang on for a few different reasons, even if the market declines further.

    The pessimists may be wrong

    Share prices fall during a bear market because investors expect earnings to decline. These are certainly troubling times with what’s happening in the Middle East.

    I don’t know what’s going to happen or how long it will take to play out. But, I certainly don’t think it’s going to last forever, and the oil (price) picture may not be as negative as the market is thinking (either how bad it could get or the length of the time it takes to come to a resolution).

    At some point, this should pass.

    The long-term returns include the declines

    I believe it’s very important to think with a long-term mindset, both when making an investment and during times like this.

    When we talk about how big the returns are – such as how the ASX share market has returned an average of roughly 10% per year over the past decade – that return includes periods of market decline. I’m thinking of the Vanguard Australian Shares Index ETF (ASX: VAS) when I think of the ASX share market.

    In other words, it’s normal for declines to happen occasionally, and it’s the ‘price’ of being able to invest in something that can go up in value. It can go down, too. That doesn’t mean we shouldn’t hold ASX shares – we should just accept it’s part of the journey.

    Locking in the lower price

    Share prices change all the time. Sometimes they go up, sometimes they go down. Occasionally, they fall by a lot.

    ‘On paper’ gains or losses can change. Declines can recover from widespread market selling, but only if we’re still holding that investment.

    If someone panic-sells their ASX shares, then they’ll miss out on a possible rebound. That could start happening as early as tomorrow, next week or even next month. It could take longer to recover, but I’d rather hold my ASX share investment (if I’m confident about the long term) than lock in a loss.

    It’s an opportunity to buy more ASX shares

    I don’t look at sell-offs like this as a terrible time, but as an opportunity to invest in great businesses at lower prices.

    I try to invest only in ASX shares I’d be excited to buy more of during a downturn.

    I’m excited by lower share prices because of the better valuations (and dividend yields) that come with them. Investing at a lower price can unlock bigger long-term returns and give us a stronger margin of safety.

    The post 4 reasons not to panic-sell ASX shares during March appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Vanguard Australian Shares Index ETF right now?

    Before you buy Vanguard Australian Shares Index ETF shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Vanguard Australian Shares Index ETF wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 20 Feb 2026

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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 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.

  • 3 shares dumped from the ASX 200 index (and 3 new additions)

    A financial expert or broker looks worried as he checks out a graph showing market volatility.

    Every three months, S&P Dow Jones Indices announces changes in the S&P/ASX Indices as a result of its quarterly reviews.

    As we approach the end of the first quarter, the index provider has just revealed the changes that it will be making to the ASX 200 index effective prior to the open of trading on Monday 23 March.

    This has seen three ASX 200 shares dumped from the benchmark index.

    Which ASX 200 shares are being dumped?

    According to the release, sports technology company Catapult Sports Ltd (ASX: CAT), data centre operator DigiCo Infrastructure REIT (ASX: DGT), and pharmacy wholesaler EBOS Group Ltd (ASX: EBO) are leaving the ASX 200 index later this month.

    They are being kicked out after their share prices dropped to a level that took them below the threshold required to remain in the index.

    Catapult shares are down almost 40% over the past six months, giving the company a market capitalisation of $1.23 billion.

    DigiCo Infrastructure REIT shares are down 50% since this time last year, dragging its market capitalisation to $1.12 billion.

    Finally, New Zealand-based EBOS’ shares are down almost 44% over the past 12 months. However, its exit could be more due to relative liquidity (tradability), rather than market capitalisation.

    Which shares are joining the index?

    S&P Dow Jones Indices has named gold miner Predictive Discovery Ltd (ASX: PDI), engineering and construction services provider SRG Global Ltd (ASX: SRG), and lithium developer Vulcan Energy Resources Ltd (ASX: VUL) as their replacements.

    Predictive Discovery shares are up 185% over the past 12 months, lifting its market capitalisation to $2.41 billion.

    SRG Global’s shares have risen by 120%, giving it a market capitalisation of $1.7 billion.

    Finally, Vulcan Energy Resources shares are only up 11% since this time last year but have a market capitalisation of $1.73 billion and a much stronger balance sheet than a year ago.

    What other changes are being made?

    Northern Star Resources Ltd (ASX: NST) shares are joining the exclusive ASX 20 index in place of Santos Ltd (ASX: STO).

    Light & Wonder Inc (ASX: LNW) and PLS Group Ltd (ASX: PLS) are joining the ASX 50 index, with TechnologyOne Ltd (ASX: TNE) and Seek Ltd (ASX: SEK) heading out.

    Lastly, gold miners Greatland Resources Ltd (ASX: GGP), Regis Resources Ltd (ASX: RRL), and Westgold Resources Ltd (ASX: WGX) are being added to the ASX 100 index. They are replacing Lendlease Group (ASX: LLC), Netwealth Group Ltd (ASX: NWL), and Pinnacle Investment Management Group Ltd (ASX: PNI).

    The post 3 shares dumped from the ASX 200 index (and 3 new additions) appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Catapult Group International right now?

    Before you buy Catapult Group International shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Catapult Group International wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 20 Feb 2026

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    Motley Fool contributor James Mickleboro has positions in Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Sports, Light & Wonder Inc, Netwealth Group, Pinnacle Investment Management Group, and Technology One. The Motley Fool Australia has positions in and has recommended Catapult Sports, Netwealth Group, and Pinnacle Investment Management Group. The Motley Fool Australia has recommended Light & Wonder Inc, Srg Global, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • 1 ASX dividend stock down 41% I’d buy right now

    Woman holding $50 notes and smiling.

    The ASX dividend stock Australian Ethical Investment Ltd (ASX: AEF) has fallen heavily, it’s actually down 41% from August 2025. It’s down even more from its peak in 2021, though I’m not going to focus on that previous share price as its price/earnings (P/E) ratio may have been too stretched then.

    Australian Ethical provides investors with investment management products that “align with their values and provide long-term, risk-adjusted returns. It offers both managed funds and superannuation. I’m excited by the superannuation division because of the steady inflows that provides.

    The business recently announced its FY26 half-year result, which included several strong numbers, giving me confidence that the business could be a strong long-term investment.

    Great result

    The report was for the six months to 31 December 2025.

    The ASX dividend stock revealed that underlying revenue increased 13% to $65.8 million and operating expenses increased by 9% to $45.1 million.

    The strength of its operating leverage meant that its profit grew at a faster pace. Underlying profit after tax climbed 25% to $14.4 million and statutory net soared 42% to $13.3 million.

    Underlying earnings per share (EPS) grew by 24% to 12.54 cents per share, allowing the interim dividend to be hiked by 60% to 8 cents per share. That means the business is holding onto a significant amount of its generated profit to reinvest for future opportunities.

    The business reported that its funds under management (FUM) reached $14.08 billion and it saw continued positive organic net flows of $0.26 billion, with superannuation net flows increasing 19% year-on-year. It also noted its funds delivered a positive investment performance of $0.16 billion.

    Why I think this is a good time to invest in the ASX dividend stock

    Australian Ethical noted that it has transitioned to a single administration platform, laying the groundwork for enhanced member services and ongoing cost savings.

    The company’s underlying cost-to-income (CTI) ratio improved from 71.4% in FY25 to 68.8% in the first half of FY26, showing that its margins are capable of increasing and could bode well for ongoing operating leverage as the years go by.

    Australian Ethical is expecting to grow profit, with positive net flows expected to continue in the second half of FY26.

    With the Australian Ethical share price down significantly in recent times, this looks like a compelling time to invest because the grossed-up dividend yield has been boosted to around 5%, including franking credits, at the time of writing.

    Further dividend growth looks possible, meaning the business can provide even more passive income to investors.

    The post 1 ASX dividend stock down 41% I’d buy right now appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Australian Ethical Investment right now?

    Before you buy Australian Ethical Investment shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Australian Ethical Investment wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 20 Feb 2026

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

  • 2 ASX shares highly recommended to buy: Experts

    Buy and sell written on a white cube.

    When one expert rates a ASX share as a buy, that is something to take note of. When there are numerous analysts who rate a company as a buy, that could suggest that there’s a clear opportunity being presented by the market.

    I’m going to look at two ASX shares which some of the highest number of analyst buy ratings on the ASX.

    We’re not just talking about one or two positive ratings, but several, with most/all of the ratings being a buy.

    Let’s get into those exciting ASX shares.

    Coles Group Ltd (ASX: COL)

    According to the Commsec collation of analyst ratings on the business, there are currently 15 buys.

    The business recently reported its FY26 half-year result, which was pleasing to the broker UBS. The broker said that the HY26 operating profit (EBIT) and net profit (NPAT) were both in line with market expectations.

    However, the trading of the first seven weeks of the second half of FY26 of growth of 3.7% was below UBS’ expectations of 4.4% growth.

    UBS believes that execution and price trust favour Coles over its main competitor because of “promotional effectiveness (fewer, better), while recently delivered investments (e.g. Witron ADC (availability), Ocado CFCs (online)) provide cost leadership and confidence about CY26E sales growth.”

    The broker also prefers Coles over Woolworths Group Ltd (ASX: WOW) because there is a wider-than-average price/earnings (P/E) ratio gap based on the one-year forward earnings.

    UBS predicts Coles could generate a net profit of $1.25 billion in FY26, translating into a forward P/E ratio of under 23, at the time of writing.  

    Universal Store Holdings Ltd (ASX: UNI)

    According to the Commsec collation of analyst ratings on the business, there are currently 11 buys.

    UBS describes Universal Store as a specialty youth casual fashion retailer, operating under the Universal Store, Perfect Stranger and Thrills store banners.

    The broker noted that Universal Store’s operating profit (EBIT) and net profit beat analyst expectations with stronger sales and a higher gross profit margin.

    UBS explained why it’s optimistic about the ASX share:

    Retain buy rating given confidence in the revenue & gross margin outlook, driven by market share gains from strong execution, and leveraging the generally more resilient youth consumer.  

    We remain confident in the UNI revenue outlook due to merchants that judiciously adapt product ranges & persistently strong in-store execution, which drives customer conversion & basket size expansion. These drivers support sustained market share gains in the fragmented youth apparel market.

    A secondary tailwind is the youth consumer where, based on UBS Research, spending intentions are stronger than the all-age consumer and apparel & footwear categories are of greater importance (remain strong & above the all-age consumer).

    Broker UBS estimates that Universal Store could generate a net profit of $43 million in FY26. That means, at the time of writing, the Universal Store share price is valued at 15x FY26’s estimated earnings.

    The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Coles Group Limited right now?

    Before you buy Coles Group Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Coles Group Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 20 Feb 2026

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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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Woolworths Group. 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.

  • Buy these top ASX ETFs for passive income

    A couple lying down and laughing, symbolising passive income.

    For investors looking to generate regular income from the share market, exchange traded funds (ETFs) can be a simple and effective option.

    Rather than relying on a single dividend-paying share, ETFs provide exposure to a basket of income-generating businesses in one investment. This diversification can make income streams more stable and easier to manage over time.

    With that in mind, here are three ASX ETFs that could be worth considering for passive income.

    Vanguard Australian Shares High Yield ETF (ASX: VHY)

    The first ASX ETF that income investors may want to look at is the Vanguard Australian Shares High Yield ETF.

    This fund focuses on Australian shares that are expected to pay above-average dividend yields. It holds a diversified portfolio of large and mid-sized ASX shares that have strong income profiles.

    Its holdings include well-known dividend payers such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and Telstra Group Ltd (ASX: TLS).

    Because many Australian shares pay fully franked dividends, investors can also benefit from franking credits, which can enhance the effective income received.

    For investors seeking exposure to a broad collection of local dividend stocks in one trade, the Vanguard Australian Shares High Yield ETF offers a straightforward solution. It currently provides a 4% dividend yield.

    Betashares S&P 500 Yield Maximiser ETF (ASX: UMAX)

    Another ASX ETF that could appeal to income investors is the Betashares S&P 500 Yield Maximiser ETF.

    This fund takes a different approach to generating income. Instead of relying solely on dividends from its holdings, it uses a covered call strategy to boost the income paid to investors.

    It holds companies from Wall Street’s S&P 500 index, which means investors gain exposure to global giants such as Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), and Amazon (NASDAQ: AMZN).

    However, by writing call options over these holdings, the ETF collects option premiums that can then be distributed as income. This strategy can lead to higher yields than traditional equity ETFs, though it may limit some upside during strong market rallies.

    Another positive is that Betashares changed the payouts from quarterly to monthly this year, meaning more frequent income for investors.

    At present, it trades with a dividend yield of 5.7%.

    Betashares Global Royalties ETF (ASX: ROYL)

    A final ASX ETF that could be worth considering for passive income is the Betashares Global Royalties ETF.

    This fund invests in companies that earn revenue from royalties rather than traditional product sales. These businesses often receive payments from intellectual property, natural resources, or infrastructure rights.

    The portfolio includes companies such as Franco-Nevada (NYSE: FNV), which collects royalties from gold mining operations, and InterDigital (NASDAQ: IDCC), which earns licensing income from wireless technology patents.

    Royalty-based businesses can be appealing because they often have lower operating costs and scalable revenue models. As the underlying industries grow, royalty payments can increase without requiring large capital investments.

    This structure can support attractive income streams for investors. For example, it currently offers a 5.6% dividend yield.

    The Betashares Global Royalties ETF was recently recommended by analysts at Betashares.

    The post Buy these top ASX ETFs for passive income appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Betashares Global Royalties ETF right now?

    Before you buy Betashares Global Royalties ETF shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Betashares Global Royalties ETF wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 20 Feb 2026

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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 Amazon, Apple, and Microsoft and is short shares of Apple and BetaShares S&P 500 Yield Maximiser Fund. The Motley Fool Australia has positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund and Telstra Group. The Motley Fool Australia has recommended Amazon, Apple, BHP Group, Microsoft, and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • 3 ASX 200 shares trading well below brokers’ targets

    Smiling couple looking at a phone at a bargain opportunity.

    After last week’s turbulence, investors may be sifting through news to find the current value. 

    These S&P/ASX 200 Index (ASX: XJO) shares are currently trading at a discount compared to price targets from brokers. 

    Lendlease Group (ASX: LLC)

    Lendlease is an international property development and construction business operating across Australia, the Americas, the UK, Europe, and Asia.

    Its share price has consistently declined over the last 12 months. 

    This included a significant fall on the back of February’s half-year results.

    At the time of writing, the ASX 200 company is down 25.78% year to date and 35.6% over the last year. 

    However, based on analysts outlook, it may be a buy low opportunity after the rough start to 2026. 

    6 analyst forecasts via TradingView have an average 12 month price target of $5.33 on this ASX 200 stock. 

    From last week’s closing price of $3.83, this indicates a potential upside of just over 39%. 

    Seek Ltd (ASX: SEK)

    Seek is a global online employment marketplace, serving Australia, Asia, Latin America, and beyond.

    Its share price has recently hit 5-year lows, but has slowly started to turn the corner. 

    At the time of writing it is down 27% since the start of the calendar year. 

    The ASX 200 company has been one of the many tech shares impacted by rising AI disruption fears. 

    Despite this, it posted healthy earnings in February which included revenue growth and a record dividend.

    I think the ASX 200 shares might have hit rock bottom, and could be on the way back up. 

    It seems brokers agree. 

    Following earnings results, Morgans kept its 12-month share price target at $27.50 and upgraded Seek shares to a buy rating. 

    From last week’s closing price of $16.93, that indicates an upside of 62.4%. 

    Computershare Ltd (ASX: CPU)

    Another ASX 200 stock trading below fair value is Computershare. 

    It is an Australian financial administration company offering global services in corporate trusts, stock transfers, and employee share plans.

    It was also hit hard during earnings season, but may now be trading at an enticing entry point. 

    This ASX 200 stock is down 23% over the last year. 

    It closed trading last week at $30.61. 

    However, 6 analysts offering one year price targets (via TradingView) have an average target of $36.18. 

    That indicates an upside of just over 18%. 

    Earlier this year, analysts at Citi placed a one year price target of $39.60. 

    If this ASX 200 stock reached this target, it would be a rise of close to 30%. 

    The post 3 ASX 200 shares trading well below brokers’ targets appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Lendlease Group right now?

    Before you buy Lendlease Group shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Lendlease Group wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 20 Feb 2026

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    Motley Fool contributor Aaron Bell 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.

  • Forget term deposits and buy these ASX dividend stocks

    Man holding Australian dollar notes, symbolising dividends.

    While interest rates on term deposits have been improving, they still pale in comparison to what is on offer in the share market.

    For example, here are three ASX dividend shares that are rated as buys and tipped to offer dividend yields of 4.6% or more.

    Here’s what they are recommending:

    Cedar Woods Properties Limited (ASX: CWP)

    The first ASX dividend share that could be a buy according to analysts is Cedar Woods.

    It is one of Australia’s leading property developers with a portfolio that is diversified by geography, price point, and product type.

    Bell Potter remains bullish on the company due to its exposure to Australia’s chronic housing shortage.

    It is expecting this to underpin dividends per share of 39 cents in FY 2026 and then 41 cents in FY 2027. Based on its current share price of $8.55, this equates to 4.6% and 4.8% dividend yields, respectively.

    Bell Potter has a buy rating and $10.20 price target on its shares.

    HomeCo Daily Needs REIT (ASX: HDN)

    Another ASX dividend share that is rated as a buy is the HomeCo Daily Needs REIT.

    It is Australia’s leading daily needs real estate investment trust (REIT) with total assets of approximately $5.1 billion spanning approximately 2.3 million square metres of land in Australia’s leading metropolitan growth corridors of Sydney, Melbourne, Brisbane, Perth and Adelaide.

    Last month it reported its half-year results and revealed occupancy and cash collections above 99%, consistently positive leasing spreads, and comparable NOI growth of 4%.

    UBS is positive on the company. It believes it will pay shareholders dividends of 9 cents per share in both FY 2026 and FY 2027. Based on its current share price of $1.24, this would mean dividend yields of 7.25%.

    The broker currently has a buy rating and $1.55 price target on its shares.

    Regal Partners Ltd (ASX: RPL)

    Another ASX dividend share that analysts are tipping as a buy is Regal Partners.

    It is a specialist alternative investment manager with funds under management of $20.9 billion across its eight brands. These are Regal Funds Management, PM Capital, Merricks Capital, Taurus Funds Management, Attunga Capital, Kilter Rural, Argyle Group, and Ark Capital Partners.

    Morgans is a big fan of the company and believes its strong form has positioned it to reward shareholders with fully franked dividends of 20 cents in FY 2025 and then 21 cents per share in FY 2026.

    Based on its current share price of $3.02, this equates to dividend yields of 6.6% and 7%, respectively.

    Morgans also sees plenty of upside for its shares over the next 12 months. It has a buy rating and $5.00 price target on them.

    The post Forget term deposits and buy these ASX dividend stocks appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Cedar Woods Properties Limited right now?

    Before you buy Cedar Woods Properties Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Cedar Woods Properties Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 20 Feb 2026

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