Category: Stock Market

The ASX has moved higher over the past year, but not every share has joined the rally.

Some quality shares have been sold down heavily, leaving them trading on P/E ratios that look far more interesting than they did in the past.

Three ASX shares I think value investors could consider buying today are named below.

Cochlear Ltd (ASX: COH)

Cochlear has had a tough period, and I do not think investors should pretend otherwise.

The hearing implant leader recently downgraded guidance after softer-than-expected trading conditions in developed markets. That has shaken confidence and pushed the share price down sharply.

I think Cochlear now looks more interesting for value investors.

According to CommSec, the shares trade on around 18.5 times consensus FY27 earnings. For a company with Cochlear’s market position, brand strength, and long-term healthcare opportunity, I think that is a much more attractive valuation than investors have usually been offered.

The near-term recovery may take time. Hospital capacity issues, weaker referral activity, and softer demand in parts of the adult and seniors market are all weighing on the business. But the long-term need for hearing solutions has not gone away.

In fact, Cochlear continues to see adults and seniors as its largest long-term growth opportunity, and it remains confident in its innovation pipeline, including next-generation implants and a totally implantable cochlear implant.

For me, this looks like a high-quality ASX share going through a difficult patch, rather than a permanently impaired business.

James Hardie Industries plc (ASX: JHX)

James Hardie is another ASX share that looks more attractive after its reset.

The building products company has been dealing with a softer housing and renovation backdrop, particularly in North America. That is never easy for a business tied to construction activity.

But at around 16 times FY27 estimated earnings, I think the market may now be offering an attractive entry point for investors willing to look through the cycle.

James Hardie remains a leading player in exterior home and outdoor living solutions. Its fibre cement products have strong positions in key markets, and the AZEK acquisition gives it broader exposure to decking, railing, and outdoor living.

The company has also been focused on cost savings, manufacturing efficiency, and integration benefits. Management has highlighted progress on cost synergies and a longer-term commercial synergy opportunity from the AZEK deal.

If US housing conditions improve and the AZEK integration delivers, James Hardie shares could re-rate meaningfully over the medium term.

Endeavour Group Ltd (ASX: EDV)

Endeavour is the most defensive-looking option of the three in my view.

The owner of Dan Murphy’s, BWS, and a large hotels business has been out of favour, but it still owns a collection of well-known brands and assets with everyday relevance.

According to CommSec, Endeavour trades on under 13 times FY27 estimated earnings. That looks inexpensive to me for a business with its scale, customer base, and potential for improvement.

There are issues to work through. The liquor retail market has been competitive, and Endeavour has been investing in lower prices to rebuild momentum. But I think that strategy could support customer loyalty and market share over time.

Its hotels business also gives the company a different earnings stream, and recent updates suggest that part of the group has been performing well. Endeavour has also been working through a strategic refresh, with a focus on price leadership, hotel renewals, cost simplification, and better use of its asset base.

For value investors, I think the lower valuation and recovery potential make Endeavour shares look appealing.

Foolish Takeaway

Value investing usually requires some patience and a willingness to buy when sentiment is weak.

That is what I see with these three ASX shares.

Cochlear, James Hardie, and Endeavour all have issues to work through, but I do not think their long-term prospects have disappeared.

At today’s lower valuations, I think they could offer attractive recovery potential for investors who are prepared to wait.

The post 3 cheap ASX shares for value investors to buy today appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• The Aussie dollar just hit a 4-year high. Which ASX shares will benefit?
• CSL, Wesfarmers, Endeavour shares crash to multi-year lows: Buy, hold, or sell?
• Forget gold! Start hunting fallen ASX 200 shares to buy for an earlier retirement
• CSL and Wesfarmers among scores of ASX shares hitting fresh 52-week lows

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

May could be a good time to think about where long-term portfolio growth might come from.

For me, that does not always mean trying to pick the next winning share. Sometimes, the simpler move is to buy an exchange-traded fund (ETF) that gives exposure to a broad investment theme and then leave it alone for years.

Here are two Vanguard ETFs I would consider buying and holding this month.

Vanguard FTSE Asia Ex Japan Shares Index ETF (ASX: VAE)

The Vanguard FTSE Asia Ex Japan Shares Index ETF is the more adventurous of the two.

It gives investors exposure to Asian share markets outside Japan, including countries such as China, India, Taiwan, South Korea, and others.

I like this ETF because it adds something many Australian portfolios lack.

A lot of local investors already have exposure to Australian banks, miners, and perhaps US technology shares. But Asia is often underrepresented, despite being home to large populations, rising incomes, growing digital economies, and important manufacturing and technology supply chains.

That does not mean the VAE ETF will be smooth. It will not.

Asian markets can be volatile, and investors need to be comfortable with political risk, currency moves, regulation, and uneven economic cycles.

But I think that is also why it can be useful. It gives a portfolio a different source of long-term growth.

Rather than relying only on the US or Australia, the VAE ETF opens the door to businesses exposed to consumption growth, financial development, semiconductors, electric vehicles, online platforms, and regional trade.

For investors with a long time horizon, I think that mix is appealing.

Vanguard S&P 500 US Shares Index ETF (ASX: V500)

The Vanguard S&P 500 US Shares Index ETF is the cleaner and more familiar option.

It gives investors exposure to 500 of the largest listed companies in the United States.

That includes many of the world’s most dominant businesses across technology, healthcare, financials, consumer goods, industrials, and communication services.

What I like about the V500 ETF is that it is a simple way to own a slice of corporate America.

The US market has a strong history of innovation, deep capital markets, and globally competitive companies. That does not guarantee future returns, but I think it gives investors a strong foundation.

It also helps reduce the concentration risk that comes with owning only Australian shares.

The ASX is heavily weighted toward banks and resources. The S&P 500 gives much broader exposure to industries that are not as well represented locally, particularly large global technology and healthcare companies.

Another reason I like the Vanguard S&P 500 US Shares Index ETF is that it can work as a long-term core holding.

Investors do not need to follow every company in the index. The ETF does the job of spreading money across a large group of businesses, while the index naturally adjusts over time as companies rise and fall in importance. That simplicity is valuable.

Foolish takeaway

If I were buying Vanguard ETFs in May, I would consider using the V500 ETF as the core and the VAE ETF as the growth tilt.

One gives exposure to the scale, innovation, and depth of the US market. The other adds access to Asia’s long-term growth story, which I think remains underrepresented in many Australian portfolios.

Both will have weak periods, but for investors willing to buy, hold, and keep adding over time, I think they could bring useful diversification and long-term growth potential to an ASX portfolio.

The post 2 top Vanguard ETFs I’d buy and hold in May appeared first on The Motley Fool Australia.

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• Vanguard ETF dividends to be paid today

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 ASX share investors, the recent swings in the S&P/ASX 200 Index (ASX: XJO) could be opening up one of the more interesting buying windows of 2026.

The index has pulled back close to 5% from its early March highs and is down roughly 2% over the past six months at the time of writing. It’s not exactly an inspiring chart.

But that’s the twist. These kinds of pullbacks, while uncomfortable, have historically been where long-term opportunities start to appear.

When markets feel calm and optimistic, prices tend to reflect that confidence. When sentiment turns shaky, valuations often come back to earth. Sometimes without much changing underneath the surface.

So, what’s actually driving the current volatility?

Why is the market on edge?

A mix of factors. Rising oil prices, ongoing tensions in the Middle East, persistent inflation concerns, and fresh debate about whether the artificial intelligence (AI) boom has run a little too hot have all unsettled investors.

It’s a noticeable shift in tone from earlier this year.

Over the past five years, ASX shares have enjoyed a strong run, supported by banks, miners, and tech companies riding the AI wave. Confidence was high, earnings held up, and market dips were often brushed off quickly.

Buying felt easy. Now, not so much. And that’s where many investors make a costly mistake.

Watch from the sidelines?

The instinct during volatile periods is often to wait. Sit in cash. Watch from the sidelines until things “settle down.”

The problem is that markets rarely send a clear signal when it’s safe to jump back in. In fact, the best opportunities often appear when uncertainty is highest. When headlines are negative and confidence is low, quality companies can start trading at more attractive prices.

Take giant ASX shares Westpac Banking Corporation (ASX: WBC) and National Australia Bank Ltd (ASX: NAB) as an example. The bank shares have lost 5% and 7% respectively over the past month.

Shares in healthcare giant CSL Ltd (ASX: CSL) have pulled back even more from previous highs, despite its core business and long-term growth drivers remaining largely intact. That’s not unusual. It’s how markets work.

Markets have weathered this before

It’s also worth remembering that much of what’s driving current volatility is short term in nature. Geopolitical tensions flare up and fade. Oil prices spike and then stabilise. Inflation data surprises in both directions.

Markets have seen it all before and over time, they have tended to move higher.

The same principle applies to AI. While there are valid questions about near-term spending levels, the long-term demand for data, automation, and digital infrastructure remains strong.

Foolish Takeaway

For long-term investors in ASX shares, this is where perspective matters. When share prices fall but business fundamentals remain intact, the equation quietly improves. Lower prices can mean better value, higher potential returns, and in some cases stronger dividend yields.

Volatility may feel uncomfortable, but it often creates opportunity.

Sitting on the sidelines can feel like the safe option. But in investing, playing it too safe can come at a cost. And this may be one of those moments where waiting for certainty means missing the opportunity.

The post ASX share volatility is rising, are you making this mistake? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 8 ASX 200 shares with renewed buy ratings this week
• Why is this ASX financial stock dropping despite solid results?
• Why Macquarie, QBE, Tabcorp, and Westpac shares are dropping today
• 7 ASX 200 shares just upgraded this week

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 CSL. 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.

If you are searching for big returns, then the ASX 200 shares in this article could be worth a look.

That’s because analysts are tipping these shares to rise at least 20% over the next 12 months.

Here’s what they are recommending this month:

Imdex Ltd (ASX: IMD)

The team at Morgans is bullish on this mining technology company and has named it as an ASX 200 share to buy.

It was impressed with its strong quarterly update and believes that there’s potential for the company to outperform for the full year. It said:

The 3Q update was strong with constant FX organic revenue growth of +26% YoY. While we pare back our FY26 revenue forecast slightly on FX, we make negligible changes to our EBITDA forecast ($164m +3% vs VA consensus $160m) as mix benefits offset the lower revenue. For FY27-28, we increase our earnings forecasts on confirmation of strong volume growth and recent capital markets activity. While we see capacity for a slight beat in August, in our view, outer year upgrades will be the key driver of the share price from here.

FY27 VA consensus revenue is muddled due to recent break-even acquisitions, however, FY27 EBITDA of $187m implies less than +10% organic revenue growth in the base business vs FY26 consensus EBITDA of $160m (assuming incremental margins of +40-50% and an incremental +$7m EBITDA YoY contribution from ALT/MSI). We forecast FY27 EBITDA of $200m (+7% vs $160m consensus).

Morgans has put a buy rating and $5.00 price target on its shares. Based on its current share price of $4.04, this implies potential upside of over 20% for investors over the next year.

Light & Wonder Inc (ASX: LNW)

Bell Potter thinks this gaming technology company could be an ASX 200 share to buy.

Although its first-quarter update was softer than expected, it believes this was due to one-offs. It said:

1Q26 represents a poor start to the year, however, we note that International shipments, the primary driver for the miss, is typically lumpy QoQ. We believe the decline in GO base install reflects a one-off occurrence that should benefit future quarters. Notwithstanding the continued disappointment in SciPlay revenue growth, which we now forecast flat YoY for FY26, we continue to believe improving game performance will support BPe and consensus forecasts across CY26-28e.

Bell Potter has retained its buy rating with a $190.00 price target. Based on its current share price of $114.64, this implies potential upside of 65% for investors over the next 12 months.

The post These ASX 200 shares could jump 20% to 65% appeared first on The Motley Fool Australia.

More reading

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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 Light & Wonder Inc. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Generating a $5,000 a month retirement income from ASX dividend shares is a big target, so I think the best way to approach it is to break the numbers down step by step.

That starts with a simple question: How much income is needed each year, and what dividend yield could realistically deliver it?

Start with the annual income target

The first step is turning the monthly target into an annual number.

A retirement income of $5,000 per month means $60,000 per year.

From there, the amount needed depends on the dividend yield I can achieve.

A portfolio yielding 4% would require more capital, but it may also allow investors to focus on higher-quality ASX dividend shares with more room for growth.

A portfolio yielding 6% would require less capital, but I would be careful. A higher yield can be attractive, but it can also signal that the market is worried about the sustainability of the dividend.

That is why I think the right answer sits somewhere in the middle.

What the numbers look like

At a 4% dividend yield, an investor would need a portfolio of $1.5 million to generate $60,000 per year.

With an average 5% dividend yield, the required portfolio falls to $1.2 million.

And at a 6% dividend yield, it falls again to $1 million.

On paper, the 6% option looks tempting. But I would not want to build an entire retirement plan around chasing the highest yields available.

The danger is that a portfolio becomes too concentrated in riskier income shares. If one or two dividends are cut, the whole income plan can be thrown off.

Why I would target 5%

For me, a 5% yield feels like a more balanced target.

It is high enough to generate a meaningful income stream, but not so high that investors need to rely only on the most stretched dividend yields in the market.

A portfolio targeting 5% could include a mix of higher-yielding shares, more defensive income names, and dividend-focused ETFs.

For example, HomeCo Daily Needs REIT (ASX: HDN) could provide exposure to daily-needs property income, and Harvey Norman Holdings Ltd (ASX: HVN) could add a higher-yielding retail and property-backed income angle. 

The Vanguard Australian Shares High Yield ETF (ASX: VHY) could also help by spreading the exposure across a basket of dividend-paying ASX shares.

I would not rely on only those holdings. A retirement portfolio should be broader than that. But I think names like these show how a 5% yield target could be realistic with careful selection.

Do not forget dividend growth

Today’s income is only part of the story.

In retirement, I would want some dividend growth as well. Inflation can slowly reduce the purchasing power of $5,000 per month, so a portfolio that can lift its income over time is valuable.

That is where a mix matters.

Some ASX dividend shares may provide a higher yield now. Others may offer a lower starting yield but better long-term dividend growth. Combining both could make the income stream more resilient.

Foolish Takeaway

Based on a 5% dividend yield, an investor would need around $1.2 million in ASX dividend shares to target $5,000 per month in retirement income.

That is a large number, but I think it is best viewed as a long-term destination rather than a starting point.

By investing consistently, reinvesting dividends before retirement, and building a diversified portfolio, investors can gradually move closer to that goal.

The post How much do I need to invest in ASX dividend shares for a retirement income of $5,000 per month? appeared first on The Motley Fool Australia.

More reading

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• Why I’d still buy these ASX dividend stocks as interest rates rise
• CSL and Wesfarmers among scores of ASX shares hitting fresh 52-week lows
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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended HomeCo Daily Needs REIT 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.

Artificial intelligence, or AI, has been the talk of the investing town, not just in Australia, but the world over. The incredible rise of this technology, whose applications are only just becoming evident, has taken the globe by storm. The largest companies on the planet are pouring unprecedented amounts of cash into building out their AI capabilities, and investors are taking notice. But what is the best way to invest in AI on the ASX? That’s what we’ll be discussing today.

AI’s potential uses are almost infinite. No one doubts that this technology will redefine business, the economy, and everyday life over the coming years.

But whilst this limitless horizon abounds with potential, the frontier that we find ourselves in also poses risks to investors.

Artificial intelligence: The internet of the 2020s?

After all, the early days of the internet also elicited huge investor interest. However, it was exceedingly difficult to pick the eventual winners of the internet before they became apparent. For every Alphabet and Amazon, there was a Yahoo or a pets.com.

Many investors who got on the internet train early ended up being wiped out by the dot-com bust of the early 2000s. Given that AI is in a similar stage of infancy in 2026, I see similar risks for ASX investors looking to ride on the back of the AI train.

The companies that appear to be at the forefront of the AI vanguard today may not retain their place in the years ahead. That makes this game a dangerous one to play for ASX investors, in my view. So what’s the solution? Well, I think a good approach to this conundrum is to employ the use of ASX exchange-traded funds (ETFs).

ETFs have the advantage of being able to passively pick winners. Most ETFs invest in an index that is weighted to market capitalisation (a company’s size). If a company does well over time, its weighting in an index will increase. As such, any ETF or index fund that uses said index will be forced to buy more of that company’s shares. Of course, the opposite is also true, and any company that stutters will be removed.

Sure, this approach will not give investors the equivalent thrill and returns of buying, say, Alphabet, at the dawn of the internet. But, given the lottery-like chances of picking the biggest AI winner of 2036 in 2026, I think it is a more prudent choice.

Using ASX ETFs to invest in AI

But which ASX ETFs should investors buy if they wish to reap some of the potential returns of AI? Well, I think US-market funds are a good place to start. The US is unquestionably at the forefront of AI. Even a market-wide index fund like the iShares S&P 500 ETF (ASX: IVV) is, even now, dominated by AI-centric stocks like Alphabet, Microsoft, Nvidia, and Tesla.

If you wanted to go even harder on the US, the BetaShares Nasdaq 100 ETF (ASX: NDQ) is also an obvious choice.

But if an investor wants to exclude the other stocks that populate the US markets, but are not necessarily vying for a spot at the front of the AI pack (perhaps Coca-Cola or Colgate-Palmolive), then an ETF like the Global X Artificial Intelligence ETF (ASX: GXAI) is also worth a look. Yes, this ETF is more expensive than an index fund like IVV or NDQ. But it will give you a purer AI investment in exchange. Some of this fund’s top current holdings include Samsung, Intel, Broadcom, and Taiwan Semiconductor Manufacturing Co.

If an ASX investor really wants to buy into the potential future of AI, I think these ASX ETFs are the most sensible way to do so.

The post The best way to invest in AI on the ASX appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, Coca-Cola, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, BetaShares Nasdaq 100 ETF, Broadcom, Colgate-Palmolive, Intel, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, Tesla, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was a rough end to the trading week for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Friday. In a particularly disappointing end to the week, following the spirited recovery of the past few days, the ASX 200 spent the entire session in the red and closed 1.51% lower. That leaves the index at 8,744.4 points as we head into the weekend.

This tough bookend to the week’s trading for ASX investors follows a sobering session on the American markets overnight.

The Dow Jones Industrial Average Index (DJX: .DJI) couldn’t keep its early rise and closed down 0.63%.

Things were a little tamer on the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC), though, which fell 0.13%.

But let’s get back to the local markets now to take a look at what was happening amongst the various ASX sectors this Friday.

Winners and losers

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 Block, Cochlear, Life360, Light & Wonder Inc, Super Retail Group, and Technology One. The Motley Fool Australia has positions in and has recommended Life360 and Super Retail Group. The Motley Fool Australia has recommended CAR Group Ltd, Cochlear, Light & Wonder Inc, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a lot of ASX shares out there to choose from.

To narrow things down, let’s see what analysts at Ord Minnett are saying about the three popular options named below.

Here’s what you need to know:

ARB Corporation Ltd (ASX: ARB)

Ord Minnett remains positive on this 4×4 auto parts manufacturer despite weak new vehicle sales.

It has a buy rating and $31.00 price target on its shares. The broker is focusing more on the longer-term outlook, which it believes is positive. It said:

New vehicle sales have been impacted by inconsistent supply from manufacturers throughout the March quarter. Elevated fuel prices in March may adversely impact demand for ARB’s Australian aftermarket operations. Longer term, the outlook for ARB is positive, with robust demand for its products, a healthy order book, and new vehicles and products being released globally. Earnings growth should be driven by new and refurbished stores, offshore expansion, and strategic partnerships with original equipment manufacturers (OEM). We maintain a Buy rating on ARB.

Aurizon Holdings Ltd (ASX: AZJ)

The broker is less positive on this rail freight operator. It has put a hold rating and $3.50 price target on its shares.

While the broker likes the company, it feels that its shares are fully valued now. Ord Minnett said:

Post the result, we raised our EPS estimates by 2.7%, 3.5% and 0.9% for FY26, FY27 and FY28, respectively. These earnings upgrades led us to increase our target price on Aurizon to $3.50 from $3.10, although we maintained our Hold recommendation on valuation grounds.

Goodman Group (ASX: GMG)

Another ASX share that Ord Minnett has been looking at is Goodman Group.

In response to a major data centre deal with DataBank in the US, the broker retained its hold rating and $29.15 price target on Goodman’s shares. It said:

The deal is a win for Goodman, allowing to realise circa $235 million of development earnings before interest tax (EBIT) in the second half of FY26, and introduces DataBank’s valuable intellectual property into its data-centre business.

We note Goodman and DataBank are looking at developments in other capacity-constrained (typically because of power supply issues or planning restrictions) markets in the US, with the model based on combining the Australian company’s development pipeline and American group’s operational capability and customer base. Ord Minnett made no changes to its earnings estimates post the deal, but highlights that Goodman will have to make more of these type of deals to meet market expectations for FY26 earnings. We maintain our target price of $29.15 and a Hold recommendation on Goodman.

The post Buy, hold, sell: ARB, Aurizon, and Goodman shares appeared first on The Motley Fool Australia.

More reading

• Why are investors bidding this ASX 200 share higher today?
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Motley Fool contributor James Mickleboro has positions in Goodman Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ARB Corporation and Goodman Group. The Motley Fool Australia has recommended ARB Corporation and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s been an… interesting week for Super Retail Ltd (ASX: SUL) stock, to say the least.

The ASX retail stock and owner of the Super Cheap Auto, Macpac, Rebel, and BCF brands had a dramatic day indeed on Thursday. The preceding day, investors were greeted with the news that the company had released a trading update after the markets had closed.

This trading update didn’t contain a lot of positive news. It revealed that the company’s group like-for-like sales growth came in at 0.4% for the first 18 weeks of its second half of FY 2026. Total sales growth for the same period was 1.9%, and 3.3% for the first 44 weeks of FY 2026.

Super Retail also told investors that sales momentum had been severely impacted by “inflationary pressures, including higher fuel prices and rising interest rates, together with concerns around fuel availability”. The impact of this was felt particularly hard over the Easter weekend.

As a result of this update, Super Retail stock fell dramatically on Thursday morning, dipping more than 13.5% and hitting a new 52-week low of $10.08 a share at market open.

That pessimism didn’t last long though, and Super Retail ended up finishing the day down just 2.9% yesterday. Today, much is forgiven, with the company rebounding a healthy 2.3% at the time of writing to $11.58 a share.

Despite this recovery, Super Retail stock has had a rough time of it lately. The company remains down 14% or so over the past 12 months, down 26.8% in 2026 to date, and down almost 40% from the highs of September last year.

Perhaps this miserly performance has a silver lining, though. At current prices, Super Retail stock is trading on a trailing dividend yield of 5.7%.

Is Super Retail stock worth the 5.7% dividend yield right now?

That yield is obviously a pretty compelling proposition for income investors today. However, I don’t think it’s a screaming buy. Super Retail, as a consumer discretionary stock, is vulnerable to what’s going on in the wider economy. With petrol prices still elevated and with interest rates rising, the company is clearly under strain at the moment.

Unfortunately for Super Retail, the reality is that when times are tough, people tend to cut back on exactly the kinds of products that this company sells – camping and fishing gear, sporting apparel, and automotive products.

As such, I wouldn’t be surprised to see a dividend cut when the company reveals its final dividend for 2026 later this year.

Saying that, there is still the potential for Super Retail to be a significant source of income for dividend investors. I would still be happy to have this stock as a part of a diversified income-focused portfolio if that were my primary investing goal. Even so, I think this high dividend yield indicates risk and is not a sure thing. As such, I wouldn’t be betting the farm on it today.

The post 5.7% yield: Is Super Retail stock a buy for dividend investors? 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 Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Macquarie Group Ltd (ASX: MQG) shares are falling on Friday after the release of the investment bank’s FY26 results.

But I do not think this is a reflection on its results. The broader share market is having a poor end to the week, with the S&P/ASX 200 Index (ASX: XJO) down around 1.7% this afternoon. 

Macquarie shares also hit a 52-week high earlier this week, so some weakness after the result does not surprise me.

The bigger question is what the result says about the business. Here are my three key takeaways.

Profit growth was strong

The first takeaway is that Macquarie delivered a strong FY26 result.

The company reported net profit of $4.85 billion, up 30% on FY25. Earnings per share also rose 30% to $12.77. The second half was particularly strong, with Macquarie reporting a record half-year profit of $3.19 billion, up 93% on the first half.

That is a good reminder of why I rate Macquarie so highly.

This is not a normal bank. Its earnings can move around from year to year because it is exposed to asset management, commodities, markets, investment banking, private credit, and banking.

But over time, that diversity has helped Macquarie find growth in different environments.

Return on equity also improved to 14% in FY26, compared with 11.2% in FY25.

For me, that supports the view that Macquarie remains a high-quality financial business, even if the share price is not cheap after its recent run.

The operating businesses are performing

The second takeaway is that the growth was spread across the business.

Macquarie Asset Management delivered a net profit contribution of $2.6 billion, up 27%, with the result helped by higher performance fees. Banking and Financial Services lifted its contribution 17% to $1.61 billion, supported by growth in the loan portfolio and deposits.

Commodities and Global Markets was the standout, with net profit contribution up 49% to $4.22 billion. Macquarie Capital also performed well, with its contribution rising 43% to $1.49 billion.

That breadth is important.

If Macquarie were relying on just one engine, I would be more cautious. But this result shows multiple parts of the group contributing.

I also like the long-term themes across the business. Macquarie has exposure to infrastructure, private markets, commodities, energy transition, digital banking, private credit, and global markets.

These are not all smooth growth areas. But I think they give Macquarie plenty of ways to keep finding opportunities.

The balance sheet remains strong

The third takeaway is Macquarie’s financial position.

The company ended FY26 with a Bank Group CET1 ratio of 12.8%, a liquidity coverage ratio of 173%, and a net stable funding ratio of 116%.

It also reported that total deposits increased 25% to $221.5 billion.

Confidence, funding, and risk management are crucial in the markets where Macquarie operates.

A strong balance sheet gives the group flexibility. It can support clients, invest in growth, and take advantage of opportunities when markets are unsettled.

Are Macquarie shares a buy?

Macquarie shares are not cheap.

After reaching a 52-week high this week, the market clearly already recognises a lot of the quality in the business.

But I think this strong result demonstrates why it deserves a premium valuation. 

I would be happy to buy Macquarie shares for the long term, even if the valuation is not especially cheap today.

The post 3 key takeaways from the Macquarie results appeared first on The Motley Fool Australia.

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