Category: Stock Market

The ASX has spent most of 2025 swinging between optimism and anxiety, with inflation scares, rate hike speculation, and an AI-driven tech wobble keeping investors on edge.

But beneath is a rare opportunity to buy several high-quality ASX 200 blue chip shares at meaningful discounts.

Here are three bargains I’d be buying today.

CSL Ltd (ASX: CSL)

CSL is rarely cheap. For most of the last decade, the biotech giant traded at a premium thanks to its global leadership in plasma therapies, vaccines, and emerging specialty medicines. But 2025 has been an unusually bumpy year. Slower margin recovery at CSL Behring, uncertainty around the Seqirus spin-off, falling influenza vaccine rates, and concerns about potential US tariff impacts have pushed its share price down by over a third.

What hasn’t changed is the company’s long-term earnings power. Plasma collection volumes are rising, CSL’s R&D engine remains strong, and its therapy pipeline is expanding.

Trading on a valuation rarely seen for CSL, for long-term investors this could be a buying opportunity that doesn’t come around very often.

Macquarie Group Ltd (ASX: MQG)

Macquarie’s reputation as Australia’s financial powerhouse wasn’t built on smooth economic cycles. It was built through the company’s ability to generate growing profits whatever the market throws at it.

That’s why the current weakness in its share price, is looking like an opportunity. Macquarie has four engines: asset management, banking, commodities, and investment banking. When one slows, another usually accelerates. The company has also positioned itself for the next decade through investments in renewables, digital infrastructure, and global energy transition assets.

For investors with patience, buying Macquarie during periods of temporary earnings softness has historically paid off handsomely. I believe the same could happen for investors buying at today’s levels.

Woolworths Group Ltd (ASX: WOW)

Finally, I think Woolworths has quietly become one of the more attractive large-cap opportunities on the ASX after a challenging 12 months. The retailer has been under pressure due to consumers trading down, competition from Coles Group Ltd (ASX: COL), and higher operating costs. But these headwinds are cyclical, not structural.

Woolworths still owns one of the most defensible business models in the country. Food and essentials spending remain remarkably resilient, and it continues to grow its digital footprint, loyalty program, and supply-chain efficiencies.

So, with the share price sitting well below its 52-week high and margins set to recover as cost pressures ease, Woolworths could be a top blue chip pick in the current market.

The post CSL and more blue-chip ASX 200 bargains I’d buy before 2026 appeared first on The Motley Fool Australia.

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• Macquarie names its top 4 ASX REITs to buy today
• Forget CSL shares, I’d buy this booming biotech stock instead
• With rising costs, are Woolworths shares still a good buy today?
• Seek shares tipped to storm 45% higher next year: Here’s why
• The ASX dividend stocks I’d trust to pay me through retirement

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

The Vanguard MSCI Index International Shares ETF (ASX: VGS) can be one of the most effective exchange-traded funds (ETFs) for building wealth, in my view.

There is a wide array of ETFs that can be used to build wealth, but there are only a few that tick as many boxes as this one does.

The goal of the ETF is to provide exposure to many of the world’s largest companies listed in major developed countries. Vanguard created this fund to offer low-cost access to a broadly diversified range of shares that allow investors to participate in the long-term growth potential of international economies outside of Australia.

The VGS ETF has strong diversification

I believe it’s important for Aussies to remember that the ASX only accounts for 2% of the global stock market. There are lots of other businesses that are appealing to own. Plus, the global share market is not dominated by slow-growing bank stocks and mining stocks.

The VGS ETF had 1,284 holdings at the end of November 2025, which I think is an enormous amount of diversification. Even 100 holdings would be adequate diversification, in my opinion.

But the fund is diversified not just by the number of holdings, but also by the sector allocation.

At the end of November, these are the exposures:

• Information technology (27.7%)
• Financials (16.1%)
• Industrials (11%)
• Consumer discretionary (10.1%)
• Healthcare (9.9%)
• Communication services (9.1%)
• Consumer staples (5.6%)
• Energy (3.4%)
• Materials (2.9%)
• Utilities (2.7%)
• Real estate (1.8%)

I think it’s useful that the Vanguard MSCI Index International Shares ETF is invested across an array of sectors.

The fund is also invested in a variety of markets.

While the US accounts for a sizeable majority of the portfolio, there are many other markets with a weighting of at least 0.4% including Japan, Canada, the UK, France, Germany, Switzerland, the Netherlands, Sweden, Spain, Italy, Hong Kong, Denmark and Singapore.  

I truly believe that Australians would benefit from gaining exposure to companies listed in different countries.

Growing weighting to a few large US stocks

While there are over a thousand holdings, there are a few names that are becoming an increasingly large part of the VGS ETF. That comes with both positives and negatives.

The largest seven positions in the fund account for more than 25% of the portfolio, which I think investors should be aware of. We’re talking about Nvidia, Microsoft, Apple, Meta Platforms, Alphabet, Amazon and Broadcom. This isn’t necessarily a bad thing, considering how strong these businesses are and how they regularly produce pleasing shareholder returns.

The S&P/ASX 200 Index (ASX: XJO) is even more heavily weighted to its largest holdings, so it’s not a unique situation. But, the fund doesn’t appear to be quite as diversified as it used to be, with a few large businesses becoming larger pieces of the pie.

Excellent financial characteristics

One of the key reasons why the fund has managed to perform so strongly – an average return of 15.7% per year over five years – is the ongoing good earnings growth of the businesses.

According to Vanguard, the fund’s portfolio of companies has seen an overall earnings growth rate of 22.1% over the previous year, which I’d say is an excellent rise considering how large the businesses already are.

Another positive is the return on equity (ROE) ratio of 19.6%, which says how much profit the businesses make on the retained shareholder money within the businesses. It’s a sign of quality but also implies what sort of return the businesses could make on future retained profits.

The ROE is why I’m expecting the VGS ETF can continue to perform adequately over the long-term, even if the valuation seems higher than normal today. Re-investing cash for a good profit boost should unlock shareholder returns over time.

The post 3 things about Vanguard MSCI Index International Shares ETF (VGS) every smart investor knows appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nvidia, which sells the market-leading graphics processing units (GPUs) that power the data centers used to train and run AI models, has been a major beneficiary of the AI boom. But this also means that the stock could suffer if demand for AI computing slows.

However, despite sentiment toward AI turning more negative recently, demand for AI chips remains extremely robust. So, is the stock’s recent sell-off a buying opportunity?

Demand is still rising

A glance at Nvidia’s fiscal third-quarter results certainly doesn’t indicate that the AI boom is cooling off.

“Blackwell sales are off the charts, and cloud GPUs are sold out,” Nvidia CEO Jensen Huang said in the company’s fiscal third-quarter earnings release.

The tech company’s fiscal third-quarter revenue rose 62% year over year to $57.0 billion. That was faster than the 56% year-over-year increase Nvidia reported in fiscal Q2. This marked a return to accelerating growth after fiscal Q2’s top-line growth rate decelerated.

The data center segment, where most AI hardware demand sits, told a similarly bullish story in fiscal Q3. The segment’s revenue grew 66% year over year in the third quarter to $51.2 billion — up from 56% growth in the prior quarter.

Further, Nvidia’s profitability continued to impress. Fiscal third-quarter operating income rose 65% year over year to $36.0 billion, and earnings per share climbed 67% to $1.30.

Looking ahead, Nvidia guided for fourth-quarter fiscal 2026 revenue of $65.0 billion, plus or minus 2%. At the midpoint, that implies about 14% sequential growth and roughly 65% year-over-year growth.

A great business, but a risky stock

For investors looking to get in on this growth story, the pullback in the stock price certainly helps. But the setback may not be significant enough to fully price in some of the stock’s biggest risks.

Shares currently trade at about 43 times earnings. A valuation multiple like this makes sense if Nvidia can sustain its rapid growth and maintain its high gross margin in the 70s. But if investors start to see signs that either of these important factors behind Nvidia’s valuation is at risk, the stock could take an even bigger hit.

The risk is not that Nvidia suddenly stumbles in execution. This is unlikely. The bigger risk is that the AI buildout takes a breather. After all, the semiconductor industry has been cyclical for years — and it’s unlikely that this will ever change.

Competition is also intensifying. Some customers, including deep-pocketed tech giants Alphabet and Amazon, are designing their own chips. If they come up with reasonable alternatives to Nvidia’s GPUs, investors could get spooked.

And export rules remain another wild card. Nvidia has shown it can grow rapidly while even when China’s demand fades in importance. But because of regulatory and geopolitical concerns about sales of AI chips to China, there’s ultimately less visibility about Nvidia’s potential in the important market than there is in the U.S.

Sure, the stock’s pullback makes Nvidia shares more interesting than they were a few months ago. And it’s difficult to critique the business; not only did Nvidia’s sales accelerate in Q3, but management guided for a massive fourth quarter.

Even so, the stock’s high valuation means investors likely won’t be very forgiving if the AI boom shows signs of slowing. To be clear, there’s no clear evidence it is fizzling out yet. But since the market is forward-looking, all it will take is one or two material signs of a cooling market for AI chips to send the stock sharply lower. While there’s no guarantee this happens, it is a risk that demands a margin of safety when buying the stock — and I do not believe the stock’s margin of safety at the moment is sufficient.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Down 17% from recent highs, is Nvidia stock a buy? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

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• Better Artificial Intelligence (AI) stock for 2026: Nvidia or AMD?
• 3 stocks that in 20 years have turned $5,000 into more than $1 million
• Will Nvidia crush the market again in 2026?

Daniel Sparks and his clients have 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 Alphabet, Amazon, and Nvidia. The Motley Fool Australia has recommended Alphabet, Amazon, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Westpac Banking Corp (ASX: WBC) is a quality bank and its shares have been a great investment this year.

But given how its shares (and the rest of the big four) look expensive now, they may not be the best option for investors.

But if you aren’t sure which ASX shares to buy instead of Australia’s oldest bank, then you could turn to exchange traded funds (ETFs) instead.

But which ASX ETFs could be top buys? Here are three that could be worth considering:

iShares Global Consumer Staples ETF (ASX: IXI)

The first ASX ETF for investors to consider buying is the iShares Global Consumer Staples ETF. It provides the kind of stability that could make it a core building block of any long-term portfolio.

This fund invests in leading global stocks that produce everyday essentials. These are products people buy regardless of the economic climate. Its top holdings include Nestle (SWX: NESN), Procter & Gamble (NYSE: PG), and Coca-Cola (NYSE: KO). These businesses benefit from consistent demand, strong brand loyalty, and global reach.

It is for these reasons that consumer staples are often considered defensive stocks. They may not grow as fast as tech firms, but they compound steadily over time.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ASX ETF for investors to consider buying instead of Westpac shares is the Vanguard MSCI Index International Shares ETF.

This popular fund provides investors with diversified exposure to more than 1,200 global stocks from across the US, Europe, and Asia. It includes many household names such as Nestle, Toyota (TYO: 7203), and Walmart (NYSE: WMT), giving investors a simple and cost-effective way to own a slice of the world’s biggest businesses.

It also effortlessly allows investors to diversify their portfolio beyond the local share market and expose it to global economic growth.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Finally, if income is your goal, then the Vanguard Australian Shares High Yield ETF could be worth a closer look.

This ASX ETF tracks a basket of ASX shares that have the highest forecast dividend yields based on broker expectations.

This gives investors exposure to some of Australia’s best dividend payers, including Westpac. Its top holdings currently include BHP, Commonwealth Bank of Australia (ASX: CBA), and Telstra Group Ltd (ASX: TLS). These blue chips have long histories of delivering fully franked dividends, even during challenging market conditions.

This fund currently trades with a 4.2% dividend yield.

The post Forget Westpac shares, these ASX ETFs could be better buys appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nestlé. The Motley Fool Australia has positions in and has recommended Telstra Group and iShares International Equity ETFs – iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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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 positions in and has recommended Domino’s Pizza Enterprises and DroneShield. The Motley Fool Australia has recommended Challenger, Domino’s Pizza Enterprises, and Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you have a high tolerance for risk, then read on!

That’s because listed below are two speculative, high risk, high reward ASX shares that have been rated as buys by brokers. Here’s what they are recommending:

Intelligent Monitoring Group Ltd (ASX: IMB)

The team at Morgans thinks this security, monitoring and risk management services provider could be a top pick for investors.

It was pleased with the company’s decision to acquire two businesses from Johnson Control which are generating high levels of recurring revenue. In addition, it believes Intelligent Monitoring Group could benefit from other acquisitions in the near future as conglomerates offload non-core assets. It said:

IMB has acquired two businesses for just $40m from Johnson Control, which together produce $10m EBITDA ( 4x EBITDA ). Each business has sticky revenue (75% recurring) with what looks like a strong customer base. In our view, IMB is a beneficiary of the dynamic whereby conglomerates are selling non-core assets following a realisation that consolidation of HVAC, fire systems and electronic security systems has failed to yield expected synergies.

While the company expects the acquisition to be +25-28% EPS accretive, we had assumed no tax was being paid in both FY26 & 27 and slightly lower interest costs. We incorporate the acquisitions and include close to full tax from FY26 onwards (as well as slightly higher interest), which sees EBIT up materially but EPS down in both FY26 and FY27. Target price rises to $1.00 through our DCF and EV/EBITDA valuation methodology.

Morgans has a speculative buy rating and $1.00 price target on this ASX stock. This implies potential upside of over 60% from current levels.

LinQ Minerals Ltd (ASX: LNQ)

Another speculative ASX stock that is rated as a buy is LinQ Minerals. It is a gold explorer that owns highly prospective ground in the Lachlan Fold Belt.

This includes the 100%-owned Gilmore Gold Copper Project, which is an advanced exploration stage project covering ~597km2 over a strike length of ~40km.

Bell Potter is bullish on the company, highlighting its experienced management team and its valuable tenement package. It explains:

LNQ has an exceptionally well qualified and experienced management team and Board. In our view it signals clear capability to discover, grow, evaluate and potentially construct a substantial gold-copper project. In addition to the existing Resource base, Gilmore offers multiple opportunities for Resource growth and exploration success in a top jurisdiction with established infrastructure that would enable capital efficient project development.

In our view, the Gilmore tenement package carries considerable value in its own right, given the high level of exploration activity being undertaken by the world’s largest mining companies in a globally significant gold-copper porphyry belt.

Bell Potter has a speculative buy rating and 44 cents price target on its shares. This suggests that upside of over 100% is possible from current levels.

The post Brokers say these speculative ASX shares could rise 60% to 100% appeared first on The Motley Fool Australia.

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

Superloop Ltd (ASX: SLC) and Aussie Broadband Ltd (ASX: ABB) are two small-cap Aussie telco companies that offer broadband, mobile, and other services. Both companies have seen robust year-to-date share price growth thanks to solid financial results and climbing investor confidence. But when it comes to 2026, there is one clear winner.

Superloop shares are trading 2.37% lower in Tuesday afternoon trading, at $2.46 per share. For the year to date, the shares are 14.12% higher.

Meanwhile, Aussie Broadband shares are also trading in the red at the time of writing, down 2.3% to $4.88 each. For the year to date, the shares have rocketed 37.71% higher.

In a new note to investors this morning, analysts at Macquarie Group Ltd (ASX: MQG) have updated their outlook on the two shares. Here’s what the broker had to say.

Macquarie’s outlook on Superloop shares

In a note to investors, Macquarie analysts confirmed their outperform rating and $3.30 target price on Superloop shares.

At the time of writing, this implies a potential 34.1% upside ahead for investors over the next 12 months.

“Recent price-cuts by Telstra on NBN plans (500 mbps: $113 to $99) will dilute the growth tailwind from NBN speed changes,” Macquarie explained in its investor note.

But the broker said that it thinks Superloop’s exposure to Telstra price moves is limited and estimates that less than 10% of potential new Superloop customers will be impacted by these changes. Meanwhile, it expects Aussie Broadband’s exposure to be greater given its premium-end service offering. 

“We also think that an upcoming ACCC ruling on Symbio revenues could also have up to -8% impact on VA consensus EBITDA forecasts for FY27E,” Macquarie analysts said.

“Our pick in [the telco] space is SLC, noting that its P/E valuation has declined by -3x P/E since Aug-25 (-0.4x more than ABB), despite being under-indexed to the impact of TLS’ price change.”

Macquarie’s outlook on Aussie Broadband shares

Macquarie analysts also confirmed their neutral rating and $5.10 target price on Aussie Broadband shares. The shares were last downgraded by the broker in November.

At the time of writing, this still implies that there could be an additional 4.5% upside for investors over the next 12 months.

As mentioned above, the main reason for the less optimistic outlook on the shares is Aussie Broadband’s exposure to headwinds from recent Telstra price changes.

“Whilst we still believe NBN customer churn will be a tailwind to the Challengers, we note that recent TLS price cuts in Nov-25 caused us to downgrade our view on ABB from Outperform to Neutral. Given its higher OpEx model and focus on providing premium service (Australian call-centres) product to consumers, we expect ABB’s Residential business to be over-indexed to TLS, and thus more sensitive to the impact of TLS’ recent price cuts,” the broker explained.

The post Superloop versus Aussie Broadband shares: Buy, sell or hold? 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 Aussie Broadband and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Aussie Broadband. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Xero Ltd (ASX: XRO) share price has been on a rollercoaster this year, and at around $111 today, investors are understandably scratching their heads. Only a few months ago, Xero was trading near its highs. Since then, the stock has fallen roughly 40%, raising plenty of questions about what has been driving the volatility.

So, what on earth is going on?

Why Xero has been under pressure

A big part of the recent drop comes down to softer indicators across the business. Growth in key markets has slowed, operating costs have been higher than expected, and competition in cloud accounting continues to intensify. These factors were already weighing on sentiment, but several brokers also trimmed their share price targets after the latest updates, adding even more pressure.

Investors were also unsettled by concerns that Xero’s margins might take longer to improve. The company has been investing heavily in product development and AI tools, which is beneficial for long-term innovation but may hinder short-term profitability. Combined with softer conditions for small businesses in some regions, the mood around Xero shifted quickly.

Has the market gone too far?

While the recent fall has been steep, it is worth noting that Xero’s underlying business hasn’t suddenly fallen apart. Subscriber numbers remain strong overall, revenue continues to grow, and the long-term shift toward cloud-based accounting software remains intact.

In fact, several analysts have argued that the sell-off has been overdone. Broker targets generally still sit between $145 and $170, and Macquarie recently suggested there could be nearly 90% upside from current levels if Xero executes well.

The company has also been tightening its cost base, and that is often the first step that helps margins move in the right direction. For a business with Xero’s global footprint and recurring revenue model, even small improvements can shift investor sentiment quickly.

What could turn the share price around

There are a few things I will be watching over the next 6 to 12 months:

• Steadier subscriber growth, particularly in the UK and North America
• Clearer signs of margin improvement
• Continued uptake of Xero’s AI-driven features
• Stronger conditions for small businesses, especially in Australia and NZ

If Xero starts making progress in these areas, it may not take much for confidence to return and the share price to head higher.

Foolish Takeaway

The recent fall in Xero shares has certainly raised eyebrows. But when you step back and look at the fundamentals, the long-term story remains largely unchanged. Xero is still a global leader in cloud accounting with a long growth runway ahead of it.

Whether this pullback becomes a buying opportunity depends on what management delivers next. Still, at today’s levels, the Xero share price is starting to look very attractive for long-term investors.

The post What on earth is going on with Xero shares? appeared first on The Motley Fool Australia.

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

If you stumble across an ASX dividend share trading on an 8% dividend yield, what would you do? I hope the answer is to look for a reason why.

We all love a good dividend yield. Dividends represent real returns on an investment, and a valuable source of passive income and investing cash flow. So logically, the higher the yield, the better, right? Well, usually not. The market always prices a share on a risk-reward spectrum. And when it comes to dividend shares, a good rule of thumb to use is ‘the higher the dividend yield, the higher the potential risk’.

If an 8% dividend, for example, is viewed as secure and reliable, investors will seek it out, consequently increasing the price of that company’s shares and lowering its dividend yield until the supply and demand balance out. If it is viewed as potentially unreliable, however, there will be fewer buyers, and thus, a higher yield will be on offer.

Let’s check out a popular example of this phenomenon in action.

Shares of listed investment company (LIC) WAM Research Ltd (ASX: WAX) are currently trading on a dividend yield of 8.16% at the time of writing. At first glance, that yield checks out. WAM Research has funded two dividends over 2025. The first was the interim dividend worth 5 cents per share, paid out in April. The second was the 5 cents per share final dividend that we saw hit investors’ pockets in October. Both payments came partially franked at 60%.

At today’s WAM Research share price of $1.22, that 10 cents per share in annual payouts gives this ASX dividend share a trailing yield of 8.16%.

An ASX dividend share with an 8.16% yield?

But remember, an ASX dividend share’s trailing yield reflects the past, not the future. No ASX share is guaranteed to pay the same level of dividends as it did in a previous year.

So let’s check out why the market is pricing WAM Research with such a high dividend yield.

A few days ago, this ASX LIC released its latest monthly report. This revealed that the net tangible assets (before tax) of WAM Research’s underlying investment portfolio came in at $1.04 per share as of 30 November.

That happens to be less than what the company had five years ago. Back in November 2020, WAM Research reported a pre-tax NTA of $1.13 per share. This means that this LIC’s portfolio has lost value over a period that saw the S&P/ASX 200 Index (ASX: XJO) climb almost 30%. Over those five years, WAM Research has dutifully collected its management fee of 1% per annum (plus GST, of course), though.

We can see this reflected in the WAM Research share price. As it stands today, the company is a nasty 20.45% below where it was trading at five years ago today.

So clearly, WAM Research isn’t actually growing its underlying holdings, yet paying out a large dividend every six months. The market arguably views this as unsustainable, which would explain this ASX dividend share’s outsized 8% yield right now.

In my view, this is a classic income trap and should be avoided by anyone who wishes to protect their capital.

The post Income trap? Don’t be fooled by this ASX dividend share’s 8% yield 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 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.

Not all ASX REITs are created equal.

Which is why we were quick to snap up the report on the outlook for Aussie real estate investment trusts, just out from Macquarie Group Ltd (ASX: MQG).

In analysing Australia’s listed property sector, Macquarie reviewed the fourth quarter (4Q 2025) commercial property data from JLL.

And the broker named its four key picks among the ASX REITs, all of which are tipped to outperform.

What’s happening in Australia’s commercial property markets

On the retail front, Macquarie maintained a neutral rating on ASX REITs with strong retail exposure.

The broker noted that retail rents were broadly stable, while Black Fortnight data was mixed.

“We view the retail sector as fully valued, with most groups trading close to or at a premium to NTA,” Macquarie said.

Industrial rents were on the rise, however, although the supply pipeline was said to remain elevated.

According to the broker:

Market fundamentals for industrial improved in 4Q25, with modest face rental growth combined with flat to declining incentives… The 2025 supply pipeline is elevated at c. +27% above the longrun average with 2026/27 supply expected to be higher.

On the office front, Macquarie said the data points continue to recover.

“Net absorption was positive across all major cities, accelerating at a national level and running at 1.8x the quarterly and annual average,” Macquarie said. “We advocate for a rotation into office based on an anticipated gradual recovery in income fundamentals and stocks trading at discounts to book.”

ASX REITs forecast to leap 14% to 73%

The first real estate investment trust that Macquarie expects to outperform is Mirvac Group (ASX: MGR).

The broker noted that the ASX REIT has “office exposure in our preferred precincts, where we think the fundamental outlook is more favourable. The data is supportive of this thematic with the three major cities seeing negative net absorption in secondary.”

Mirvac shares are up 8.8% in 2025, currently trading for $2.05 apiece. Mirvac also trades on a 4.4% unfranked dividend yield.

Macquarie has a 12-month price target of $2.70 for Mirvac, which represents a potential upside of almost 32% from current levels.

The second ASX REIT you may want to buy today is Goodman Group (ASX: GMG).

Goodman shares are down 18.4% in 2025, trading for $29.39 each. The ASX stock also trades on 1.0% unfranked dividend yield.

And Macquarie expects a much better year ahead, with a 12-month price target of $34.73 on Goodman shares, more than 18% above current levels.

The third Aussie real estate investment trust forecast for outsized gains is DigiCo Infrastructure REIT (ASX: DGT).

Currently trading for $2.40 each, DigiCo shares are down 45.7% year to date and trade on 7.0% unfranked dividend yield.

Macquarie forecasts a big turnaround for DigiCo with a $4.16 a share 12-month price target. That’s more than 73% above current levels. And it doesn’t include that juicy dividend yield.

Which brings us to the fourth ASX REIT Macquarie tips to outperform, GPT Group (ASX: GPT).

GPT shares have surged 23.5% year to date and are currently trading for $5.46 each. GPT stock trades on a 4.4% unfranked dividend yield.

And Macquarie expects shares to gain another 14% in 2026, with a 12-month price target of $6.23 a share.

The post Macquarie names its top 4 ASX REITs to buy today appeared first on The Motley Fool Australia.

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