Category: Stock Market

Nine Entertainment Co Holdings Ltd (ASX: NEC) has this week finalised the $805 million acquisition of QMS Media, a major outdoor advertising company, which it bought from Quadrant Private Equity.

The analyst team at Macquarie took the opportunity to run the ruler over the company following the deal being bedded down, and has a bullish stock price on Nine Entertainment shares, which we’ll get to later. Firstly, what did Nine buy?

Major new business division

Nine said, on announcing the deal in January, that:

QMS is a leading digital outdoor media platform with operations in Australia and New Zealand. With a footprint concentrated in metro areas, QMS adds a digitally focused and growing media platform that complements Nine’s existing media assets, whilst also benefiting from being part of the broader Nine Group.

They also noted that the outdoor advertising category had been a “standout performer” in the Australian advertising market, growing by about 9% annually from 2014 through to 2025, and expanding its share of the market from 10% to 18% over that period.

QMS itself was also estimated to have grown its share of the market from about 10% in 2019 to about 15% in 2025, Nine said, “through a combination of high-profile tender wins, new site builds and digitisation of billboards”.

Nine said this week that it expects the acquisition of QMS to hit the bottom line immediately.

The company said:

Nine continues to expect QMS to contribute $92m of EBITDA in FY26 on a pro forma … basis (inclusive of outdoor lease expenses). Inclusive of full run-rate cost synergies of $20m, and adjusted for current interest rates, this equates to mid single digit earnings per share accretion. Following completion, Nine’s digital growth assets (Stan, 9Now, digital mastheads and Outdoor) are estimated to contribute more than 60% of Group revenue in FY27, up from approximately 45% in FY25.

Nine Chief Executive Officer Matt Stanton said it was a “defining moment” for Nine.

QMS is a high-growth, digitally-led business that complements our existing premium content and data capabilities. With the addition of QMS, we can offer advertisers an unparalleled cross-platform reach, while diversifying our revenue streams towards structural growth areas. Now the acquisition is complete, we are finalising the alignment of the Nine and QMS go to market sales strategies which will allow clients to capitalise on this powerful combination.

Nine Entertainment shares looking cheap

The Macquarie team said following the QMS acquisition, that Nine “should be better placed to deliver more consistent growth, although broadcast challenges need to be tamed with cost-out”.

Macquarie has a price target of  $1.15 per share on Nine shares, compared with 97 cents currently.

Nine is also expected to pay a dividend yield of 6.3% this year. The company is valued at $1.51 billion.

The post After a big acquisition what are Nine Entertainment shares worth? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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 Nine Entertainment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

4DMedical Ltd (ASX: 4DX) shares have jumped another 8% in Wednesday afternoon trade. At the time of writing, the shares are changing hands at $6 a piece.

Today’s uplift means the shares are now 32% higher for the year-to-date and up an enormous 2,208% over the past 12 months.

The healthcare technology company’s shares have enjoyed an incredible run, but now I’m concerned that investors who are chasing the shares higher and higher could be taking a big gamble.

Why do 4DX shares keep soaring?

4DX is an ASX healthcare technology company that develops imaging software for healthcare providers to analyse airflow through the lungs. It helps identify and treat lung and respiratory diseases ranging from asthma to lung cancer.

The company saw its share price explode in 2025 after its flagship product, CT:VQ, received regulatory approvals. It was quickly implemented and adopted through partnerships and commercial contracts with healthcare organisations.

The company has already signed contracts with hospitals and medical providers across the US. These include Stanford University, the University of Miami, Cleveland Clinic and UC San Diego Health.

It’s this business shift from a research and development business to a globally commercial business which has attracted interest from investors.

There is no price-sensitive news out of the company to explain the share price hike today. 

But it looks like investor interest has continued to keep climbing. 

Here’s why it feels like a gamble

I’m concerned that after such a strong price rally over the past 12 months, the 4DX share price could begin to run away.

While a lot of the price increase is driven by company development and contract wins, it is also being driven by investor expectations and sentiment.

It’s worth remembering that 4DX is still in a loss‑making, growth and commercialisation phase, which means the company is not yet a profitable business.

For the half-year ended 31st December, 4DMedical reported a revenue of $2.9 million, but an adjusted net loss of $16.2 billion, meaning it is far from making money.

This means it also doesn’t pay any dividends to its shareholders.

These types of companies often attract momentum and speculative trading and price increases feed more price increase. Essentially, investor optimism can drive gains.

The problem is that if developments or results don’t live up to expectations, the share price can tumble just as quickly. 

This isn’t to say that could happen. But to assume that it won’t, or that it’ll continue at the same rate, is a gamble I won’t be taking.

The post Are investors taking a big gamble chasing 4DX shares higher and higher? appeared first on The Motley Fool Australia.

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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 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.

Wesfarmers Ltd (ASX: WES) shares closed 0.7% higher on Wednesday afternoon, at $73.43 a piece.

Global volatility and concern about inflation rates and the rising cost of living has smashed the retail giant’s shares recently. After initially climbing 9% through the first few weeks of the year, Wesfarmers shares have crashed nearly 18% since mid-February.

Now, Wesfarmers shares are down 10% for the year-to-date and 0.3% lower than 12 months ago.

For context, the S&P/ASX 200 Index (ASX: XJO) is 0.6% lower year to date and 9.3% higher over the year.

It’s clear Wesfarmers shares have come off the boil recently as Australians tighten their purse strings and prepare for ongoing instability.

But I still think there are compelling reasons why investors should buy into the stock. Here are three of them.

1. Wesfarmers is a high-quality blue chip stock

Wesfarmers is a leading Australian blue-chip company. The business is the 6th largest company listed on the ASX with a market cap of around $823 billion. It is well-established, and financially sound with a history of reliable growth and stability.

The diversified company has broad retail operations in home improvement and outdoor living, apparel, general merchandise, office supplies, health and wellbeing. It also has a health division, and an industrials division with businesses in chemicals, energy and fertilisers, and industrial and safety products.

Wesfarmers subsidiaries include household names such as Bunnings Warehouse, Kmart Australia, Officeworks, Priceline, and more.

2. The business has had consistent earnings growth

Wesfarmers has demonstrated consistent, long-term net profit growth and a track record of delivering solid earnings despite challenging economic conditions.

For the first half of FY26, the conglomerate posted a 9.3% increase in NPAT, to $1.6 billion.

And while the company acknowledges that inflation and higher operating expenses could remain as headwinds going forward, it is confident that earnings growth will continue.

Analysts at UBS think that Wesfarmers could achieve $2.86 billion in net profit in FY26. The broker forecasts earnings to keep climbing in FY27 and beyond. It expects $3.07 billion in net profit in FY27, $3.1 billion in FY28 and a hike to $4 billion by FY30. That implies Wesfarmers earnings could jump 40% between FY26 to FY30. 

3. Wesfarmers shares offer a reliable passive income

The retail conglomerate is well-known for its reliable and consistent passive income payment. In February, the Kmart and Bunnings owner declared a fully franked interim dividend of $1.02 per share, up 7.4%.

And as the company’s earnings climb, its payout is expected to rise too.

UBS predicts that the business could deliver an annual dividend per share for FY26 of $2.13. 

The broker expects Wesfarmers to pay an annual dividend per share of $2.31 in FY27 and $2.56 in FY28. By FY30, the broker expects the dividend to hike to $3 per share. That would be a 41% increase from FY26. 

The post 3 reasons to buy Wesfarmers shares today appeared first on The Motley Fool Australia.

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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.

The Northern Star Resources Ltd (ASX: NST) share price is in focus after the company reported preliminary gold sales of 381,000 ounces for the March quarter, keeping it on track to meet its revised full-year guidance.

What did Northern Star Resources report?

• Gold sold (March quarter): 381,000 ounces (koz)
• Total gold sold in FY26 to date (nine months): 1,110,000 ounces (koz)
• FY26 production guidance: Forecast above 1.5 million ounces (Moz)
• New KCGM mill commissioning: Early FY27

What else do investors need to know?

Northern Star’s progress towards its full-year target hinges on maintaining strong mill throughput at KCGM. While the company isn’t currently facing diesel supply issues, management flagged it as a key ongoing risk for the mining sector.

The release notes that Northern Star will provide a more detailed quarterly update on 22 April 2026, along with a public results call for investors and analysts.

What’s next for Northern Star Resources?

Investors should watch for the official March quarterly results later this month, which will offer further detail on costs and production across sites. Looking ahead, upgrades to the KCGM mill remain a strategic priority, with commissioning expected in early FY27. Management continues to actively monitor fuel supply risks.

Northern Star Resources share price snapshot

Over the past 12 months, Northern Star Resources shares have risen 22%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

View Original Announcement

The post Northern Star Resources posts Q3 gold sales, on track for FY26 appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Looking at the WAM Capital Ltd (ASX: WAM) share price today, it’s likely that one particular metric might jump out at you. That would be this listed investment company (LIC)‘s dividend yield. At the time of writing, WAM Capital shares are going for $1.69 each. At this pricing, WAM Capital is trading with a trailing dividend yield of 9.17%.

Let that sink in for a moment. We have a stock that is ostensibly offering to return $9 a year in cash flow for every $100 invested. That’s almost twice what you could expect from a savings account or term deposit right now. And more than twice what other popular dividend stocks, ranging from Coles Group Ltd (ASX: COL) to Commonwealth Bank of Australia (ASX: CBA) and Telstra Group Ltd (ASX: TLS), currently have on the table.

So, does that 9% yield make WAM Capital shares a screaming buy for income-hungry investors, or investors more generally?

Well, as you might suspect, the answer is definitely not an unambiguous ‘yes’. Whenever the market is offering a stock with a 9% yield, one should always exercise a high degree of caution. After all, if that kind of yield was a sure thing, investors would flock to its shares, pushing up the price and lowering the running yield.

That is clearly not happening with WAM Capital, so we must ask ourselves why.

Does a 9% yield make WAM Capital shares a screaming buy?

Well, our first red flag is the WAM Capital share price itself. This is not what one might call a high flyer. At the current share price, this LIC has lost more than 24% of its value over the past five years. In fact, investors who bought WAM Capital shares ten years ago would also be down by about 25% from their initial investment.

This indicates to us that WAM Capital pays out all of its profits, and then some, as dividends.

WAM Capital’s dividends also look to be on shaky ground. Over 2025, this company paid an annual dividend of 15.5 cents per share. As of the company’s most recent update, it appears that WAM Capital has only 21.1 cents per share in its ‘profit reserve’, which it uses to fund its dividends. That means WAM Capital can only afford another 12-18 months of payouts if this reserve isn’t topped up.

So, it seems the market has weighed up all this and decided there is a high risk of lower dividends from WAM Capital going forward. This company could well be a reliable source of dividend income for investors who buy today. But given the company’s poor share price performance over many years and its near-empty profit reserves, investors should at least consider the not-insignificant risks of this stock.

The post Thinking of buying WAM Capital shares for the 9% dividend yield? Read this first appeared first on The Motley Fool Australia.

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

It’s shaping up to be an interesting month for ASX share market investors.

If you’re hunting for reliable income or high-growth potential, these two ASX shares stand out: Washington H. Soul Pattinson and Company Ltd (ASX: SOL) for dependable dividends and Xero Ltd (ASX: XRO) for long-term capital growth.

Let’s take a closer look.

Soul Pattinson: Over 120 years of payouts

This ASX Share isn’t your average dividend play. Washington H. Soul Pattinson has been around for over 120 years and has paid a dividend every single year, through wars, pandemics, and recessions. Its track record of 28 consecutive years of dividend growth is unmatched on the ASX.

Originally a pharmacy business — hence the “Chemist” name — Soul Patts has since divested that arm and transformed into a diversified investment company. Its portfolio of investments generates strong, recurring cash flow, supporting both its regular payouts and long-term capital growth.

The company recently increased its HY26 interim dividend by 9.1% to 48 cents per share, giving it a grossed-up yield of 3.8% including franking credits.

With a combination of consistent income and an expanding investment portfolio, shareholders can reasonably expect both reliable dividends and gradual capital appreciation. The price of the ASX share has gained 9% in 2026 and 17% over 12 months.

Xero: Deep sell-off sparks opportunity

If income isn’t your priority, this ASX share offers growth. This cloud-based accounting platform powers small and medium-sized businesses, handling invoicing, payroll, and financial reporting all in one place.

Xero’s global footprint – Australia, New Zealand, the UK, and beyond – is a major strength, an its subscription model provides recurring revenue that grows as its customer base expands.

Xero hasn’t been smooth sailing. The recent tech sell-off hit the ASX share hard, amplified by fears Artificial Intelligence could disrupt traditional software and higher interest rates pressuring valuations. But that’s creating opportunity.

After months of heavy selling, the ASX share is trading at a significant discount to prior highs, attracting bargain hunters looking for high-quality growth at lower entry points.

Analyst sentiment is overwhelmingly positive. According to TradingView, 13 out of 14 analysts rate Xero as a buy or strong buy. Price targets suggest upside of up to 210%, with Citi’s $144.80 target implying a 92% potential gain from current levels.

Its sticky ecosystem, scalable business model, and ongoing global expansion make the $12 billion ASX share a compelling long-term growth story.

Foolish Takeaway

Together, these ASX shares represent two sides of a balanced portfolio: income today and growth tomorrow. Soul Patts offers stability and dependable dividends backed by a century-long track record, while Xero offers high-growth potential for investors willing to ride the ups and downs of tech.

These ASX stocks show that whether you’re chasing reliable payouts or explosive upside, there are opportunities waiting for investors willing to buy quality at the right time.

The post 1 ASX dividend share and 1 ASX growth stock to buy in April appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX dividend shares with a large dividend yield could be a great buy because of the strong cash flow they can give for our bank accounts.

With inflation and interest rates seemingly on the rise, I think investors may be looking for names that can beat what interest rates bank savings accounts are likely to provide.

I want to highlight two ASX dividend shares that have never given their shareholders a dividend reduction, have a good track record of dividend increases, and have an incredible dividend yield.

WCM Global Growth Ltd (ASX: WQG)

WCM Global Growth is a listed investment company (LIC) that’s managed by WCM, which is based in Laguna Beach, California. It’s deliberately based a long way away from Wall Street (in New York).

This LIC targets a global portfolio of shares, which I think is a good strategy because there are thousands of opportunities to choose from.

WCM has whittled down its portfolio to just 20 to 40 stocks from that global hunting ground.

There are two factors that WCM wants to see particularly – improving economic moats and a corporate culture that supports the strengthening of those competitive advantages.

This strategy has allowed the ASX dividend share’s portfolio to deliver a net return that’s stronger than the global share market over the past year, three years and since the LIC’s inception in June 2017.

WCM Global growth’s net portfolio return has been an average of 15.8% per year since inception, allowing it to pay a growing dividend each year since it started paying one in 2019. Of course, past investment returns are not a guarantee of future returns.

The business has provided guidance that its quarterly dividend will continue growing every quarter until March 2027.

At the time of writing and according to guidance, the next four quarterly dividends to be declared will come to a grossed-up dividend yield of just over 8%, including franking credits. 

WAM Microcap Ltd (ASX: WMI)

It’s my view that ASX small-cap shares are some of the most exciting investments to own because of their large growth potential and how early on in their growth journey we can invest in them.

For example, imagine there’s a business that now makes $100 million in revenue. Wouldn’t it have been great to have bought it when it was making just $10 million in revenue? We could look forward to owning it as it multiplied its sales by ten times.

Not every business is destined to grow 10x from its current scale, which is why I think it could be smart to leave the investing to a seasoned team of small-cap fund managers working full-time that have performed very well over the long-term.

Between inception in June 2017 to February 2026, the WAM Microcap portfolio has returned an average of 15.4% per year (before fees, expenses and taxes), outperforming the small-cap benchmark by 7% per year in that time.

That strength has allowed the ASX dividend share to increase its annual payout every year except FY24, going back to FY18 when it started paying a dividend.

Recent dividend increases have been small, but I think any growth is very appealing given it has such a large dividend yield. At the time of writing, the FY26 grossed-up dividend yield is guided to be around 10.2%, including franking credits.

The post 2 ASX shares with dividend yields above 8% appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Wam Microcap and Wcm Global Growth. 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.

For Australian investors, the recent volatility in the S&P/ASX 200 Index (ASX: XJO) could be creating one of the best buying opportunities of 2026.

The ASX share market has pulled back from recent highs and the benchmark index is down roughly 6% over the past month at the time of writing.

At first glance, that kind of drop can feel uncomfortable. But history tells a different story. Some of the best long-term returns are made when investors buy during fear, not when markets feel safe.

Rising oil prices, war, inflation

So, what’s driving the chaos?

In recent weeks, markets have been rattled by a mix of global tensions and economic uncertainty. Rising oil prices, renewed Middle East conflict, stubborn inflation, and fresh doubts around Artificial Intelligence (AI) spending have all weighed on sentiment.

That’s a sharp shift from earlier this year.

Over the past five years, the ASX share market has delivered strong gains, powered by banks, miners, and a surging tech sector. Optimism around AI, solid commodity demand, and resilient earnings pushed the market toward record highs.

Back then, buying felt easy. Confidence was high, and every rally seemed to confirm investors were making the right call.

High quality stocks at lower prices

But here’s the twist — that’s usually not the best time to buy.

The real opportunities on the ASX share market often appear when confidence fades.

Market pullbacks allow investors to buy the same high-quality businesses at lower prices. Whether it’s blue-chip names like Commonwealth Bank of Australia (ASX: CBA), CSL Ltd (ASX: CSL), or BHP Group Ltd (ASX: BHP), a broad sell-off reduces the cost of future earnings.

Shifting sentiment

And importantly, much of today’s uncertainty may not last. Geopolitical tensions, oil price spikes, and inflation shocks tend to be temporary. Markets have weathered similar storms before and recovered.

In fact, we’ve already seen how quickly sentiment can shift. The ASX 200 recently posted one of its strongest single-day gains in a year on hopes of easing conflict and softer inflation data.

The same applies to AI concerns.

While investors are questioning whether current spending levels are sustainable, global demand for AI infrastructure, data centres, cybersecurity, and automation remains strong. These long-term trends continue to support many ASX-listed companies and the ASX share market.

Foolish Takeaway

When share prices fall but business fundamentals remain intact, the potential for future returns improves. Lower entry prices can boost dividend yields, increase upside potential, and reduce valuation risk.

In other words, buying during downturns can tilt the odds in your favour. Markets rarely give clear signals at the bottom.

But for long-term investors, today’s volatility could be the kind of opportunity that builds serious wealth over time.

Sitting on the sidelines might feel safe, but it could also be the mistake that costs you the most.

The post Why sitting out this ASX share market chaos could cost you big appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX stocks that offer investors the prospect of both growth and income are a rare breed on the ASX. I think MFF Capital Investments Ltd (ASX: MFF) is one such share though.

MFF Capital is a listed investment company (LIC) that has been on the ASX for almost two decades. Despite a lack of publicity and fanfare, it has produced some exciting returns for investors ever since its listing.

Today, its sharers are looking compelling. MFF currently sports a trailing dividend yield of 4.09% (as of yesterday’s closing price). So let’s discuss whether this ASX stock is the best growth and income play on the ASX.

Like most LICs, MFF owns and manages an underlying portfolio of investments. In this case, that underlying portfolio consists mostly of US stocks, with some other international companies thrown in. MFF has always followed a Warren Buffett-insprired approach to investing. Its holdings tend to be mature, dominant companies that display signs of possessing a moat, or intrinsic competitive advantage that helps it stay ahead of competition. These companies are purchased at compelling prices, and held indefinitely for the benefit of MFF shareholders.

Some of MFF’s largest positions have been in its portfolio for many years. They include the likes of Amazon, Mastercard, Alphabet, Visa, American Express, and Microsoft.

This strategy has paid off for MFF’s long-term investors. By my calculations, investors have enjoyed an average total return (share price growth plus dividends) of about 12.1% per annum over the past ten years, and 15.05% per annum over the past five. On the latter metric, investors have received an average share price growth rate of 11.7% per annum.

Growth and income from this top ASX stock?

So we know MFF offers plenty of growth potential. But what about income?

Well, MFF has that in spades too, and is more potent that even its starting 4%-plus yield would indicate. As I’ve discussed before, MFF is one of the ASX’s best dividend growth stocks. To prove it, let’s go back through this ASX stock’s recent dividend history. Back in 2017, MFF paid out 2 cents per share in fully-franked dividends to its shareholders. By 2021, the company was up to forking out 7.5 cents per share. Last year, it had hit 17 cents per share.

In 2026, the company has told investors to expect a total of 21 cents per share, up 23.5% from just 2025 levels if so. The trajectory of 2 cents per share to 21 cents per share in 2026 would come to an compounded annual growth rate of 26.4% per annum.

If this blistering dividend growth rate continues, it will be exceptionally lucrative for long-term investors.

All in all, I regard MFF Capital as one of the ASX’s best performers in recent years, and a stellar investment, period. I am happy to hold it in my own portfolio, and equally happy to recommend it to any investor who is searching for growth and income today.

The post This 4% ASX stock is my top pick for growth and income in 2026 appeared first on The Motley Fool Australia.

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American Express is an advertising partner of Motley Fool Money. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, American Express, Mastercard, Mff Capital Investments, Microsoft, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Mastercard, Microsoft, and Visa. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Mff Capital Investments, Microsoft, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

After ASX gold shares enjoyed a rally through 2025, many have lost momentum in 2026. 

A new report from VanEck suggests that this could be an opportunity for investors to buy the dip. 

Gold is currently trading around US$4,600 per ounce, down approximately 22% from its all-time high of US$5,595 in late January.

While the drawdown is significant, in our view it is presenting a compelling entry point for investors looking to add gold exposure.

What’s causing the dip?

VanEck CEO Jan van Eck addressed the recent pullback, highlighting that several forces have hit gold simultaneously. 

He outlined that these drivers appear cyclical and technical rather than structural. 

Firstly, gold had been trading well above its long-term averages, making a short-term correction unsurprising. 

VanEck reinforced this move below the 200-day moving average aligns with normal pullbacks often seen during longer-term bull markets, rather than indicating a lasting bearish shift.

Additionally, ongoing tensions involving the US and Iran, along with pressure on energy-related revenues, may have led some sovereign investors to sell gold holdings to raise immediate cash. 

This appears to reflect temporary funding stress rather than any fundamental decline in long-term interest in gold.

Why gold shares could be set for a rebound

Despite recent volatility, VanEck said the structural drivers of gold remain firmly in place and in some cases are strengthening.

While the immediate impact of the conflict has pressured gold, history shows that oil shock events ultimately drive higher inflation and macro uncertainty, conditions under which gold has historically performed strongly.

VanEck said during previous oil-shock conflicts, particularly the 1973 Yom Kippur War, the 1979 Iranian Revolution and the 1991 Gulf War, gold demand surged over the medium term as investors priced in higher inflation and persistent macro uncertainty.

The current conflict has disrupted roughly 20% of global seaborne oil supply, the largest such disruption in modern history.

Looking through the volatility, we think the current environment continues to support gold’s role as a strategic portfolio allocation and reinforces the case for adding exposure at current levels.

How to invest in gold shares

The ASX is home to many gold mining and production shares. 

Two of the largest ASX listed gold shares include: 

• Newmont Corporation (ASX: NEM)
• Northern Star Resources Ltd (ASX: NST)

There are also ASX ETFs that provide exposure to gold shares through a basket of miners, or tracking the spot price of gold: 

• Vaneck Gold Bullion ETF (ASX: NUGG)
• VanEck Vectors Gold Miners ETF (ASX: GDX)
• Global X Physical Gold (ASX: GOLD)

The post Should you buy the dip on gold shares? Expert appeared first on The Motley Fool Australia.

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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.