Category: Stock Market

The ASX stock market can be a gateway to unlock a significant monthly passive income for investors.

Many investments available on the ASX (and internationally) pay dividends, as they share profits with shareholders each year. With shares, you don’t need to deal with tenants, leasing agents or repairs.

It’s easy to take a back seat with shares; that’s why I think it’s the best form of passive income.

Businesses aren’t like term deposits – they can grow earnings, increase dividends, and increase share prices. Some businesses on the stock market can provide a better yield than savings accounts straight away.

The power of a dividend yield

If we put $1,000 into a bank account earning 4% interest, we’d expect to earn $40 in annual income.

Investing in stocks comes with different dividend yields. The higher the dividend yield, the more money investors will get. The highest yields (of 10% or more) aren’t necessarily safer, though.

Telstra Group Ltd (ASX: TLS) is an example of a good ASX dividend share. Telstra’s annual payout last year was 19 cents per share, which translates into a 4% cash dividend yield. Franking credits boost the after-tax effect of receiving the dividend (often leading to tax refunds). Including franking credits, Telstra’s FY25 payout equated to a grossed-up dividend yield of 5.75%.

At the current Telstra share price, a $1,000 investment would yield $57.50 in passive income in FY25.

I think there’s a good chance Telstra will increase its payout to 20 cents per share in FY26, which would yield just over $60 of grossed-up passive income (including franking credits). That’s an increase of around 5%.

Savings in the bank account don’t grow like that. You can leave the cash in there (and not utilise the interest), but investors can also reinvest their dividends to accelerate wealth-building.

It also shows how making a $1,000 investment can snowball into more passive income for investors.

There’s more to the stock market than just Telstra shares, of course.

The stock market is a money-making machine for passive income

Some ASX-listed businesses have a record of growing their dividends every year for 20 years in a row, like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and APA Group (ASX: APA).

There are some investments with very high dividend yields (over 9%) that haven’t given any payout reductions (though payout growth is slow), such as Shaver Shop Group Ltd (ASX: SSG) and WAM Microcap Ltd (ASX: WMI).

There are a number of other ASX dividend shares that are appealing as passive income options like MFF Capital Investments Ltd (ASX: MFF), L1 Long Short Fund Ltd (ASX: LSF), Pinnacle Investment Management Group Ltd (ASX: PNI), Universal Store Holdings Ltd (ASX: UNI), Charter Hall Long WALE REIT (ASX: CLW), Centuria Industrial REIT (ASX: CIP), Rural Funds Group (ASX: RFF) and WCM Quality Global Growth Fund (ASX: WCMQ).

Many of the above investments offer a dividend yield of 5% or more, which is appealing in my book.

Receiving $12,000 annually (or $1,000 per month) at a dividend yield of 5% would require a $240,000 portfolio.

That portfolio goal may sound like a lot, but if an investor invested $1,500 per month and their portfolio returned an average of 10% per year (the long-term average of the share market), it would only take around nine years to reach $240,000. It just takes investing in the right stocks.

The post Here’s how you could turn the stock market into a $1,000 monthly passive income machine appeared first on The Motley Fool Australia.

More reading

• 3 of the best ASX retirement shares to buy
• Forget BHP shares! Buy these ASX dividend shares instead for passive income
• ASX 200 utilities shares led the market last week
• This 9% yield is one I’m comfortable holding for the long term
• How to make $24,000 in passive income a year

Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund, Mff Capital Investments, Pinnacle Investment Management Group, Rural Funds Group, Wam Microcap, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Apa Group, Pinnacle Investment Management Group, Rural Funds Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Mff Capital Investments, Shaver Shop Group, and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I were sitting on $3,000 and wanted to put it to work sensibly, I wouldn’t overthink it. 

I’d be looking for broad diversification, low fees, and exposures that I could happily hold through market ups and downs without constantly second-guessing myself.

That is where Vanguard exchange-traded funds (ETFs) really shine. They let you build a serious long-term portfolio without needing a huge starting balance or perfect timing.

These are three Vanguard ETFs I would personally buy with $3,000 today, and why.

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

Asia is one of the most important growth engines in the global economy, yet it is often underrepresented in Australian portfolios. If I only owned Australian and US shares, this would be one of the first gaps I would want to address.

The Vanguard FTSE Asia Ex-Japan Shares Index ETF provides exposure to major Asian economies, including China, India, Taiwan, and South Korea. These are markets tied to long-term trends like rising incomes, technology adoption, and global manufacturing.

It is unlikely to be the smoothest ride, and I fully expect periods of volatility. But if I am investing with a long-term mindset, I am comfortable with that trade-off. For me, the VAE ETF is about positioning for where global growth is likely to come from over the next decade, not the next quarter.

Vanguard Australian Shares Index ETF (ASX: VAS)

If I could own only one ETF on the ASX, the Vanguard Australian Shares Index ETF would be near the top of my list.

It gives instant exposure to the Australian share market, spreads risk across hundreds of stocks, and delivers a reliable stream of income thanks to Australia’s dividend culture. I like that it includes the banks, healthcare leaders, and resource companies that dominate our market, without having to pick winners within each sector.

For a smaller portfolio, I see the VAS ETF as a strong holding. It is not exciting, but it does not need to be. Its job is to provide steady exposure to the local market and let compounding work its magic over time.

Vanguard Global Value Equity Active ETF (ASX: VVLU)

The Vanguard Global Value Equity Active ETF is the ETF I would use to bring some balance to the portfolio.

A lot of global indices are heavily skewed towards expensive growth stocks. The VVLU ETF takes a different approach by actively tilting towards companies that look cheap relative to their fundamentals, using Vanguard’s quantitative model.

What I like about this ETF is that it still offers broad global diversification, but with a clear value bias. It includes companies across a wide range of sectors and markets, which helps smooth out some of the concentration risk seen in traditional global ETFs.

I see the Vanguard Global Value Equity Active ETF as a patient investor’s ETF. It may not always lead the market in the short term, but over a full cycle, I think it can play an important role in a diversified portfolio.

Why I like this mix

If I put these three ETFs together, I get exposure to Australia, Asia, and developed global markets, with a blend of growth and value styles. That is a level of diversification I would feel comfortable holding through both good markets and bad ones.

With $3,000, the goal is not to be clever. It is to start building habits, stay invested, and give your money the best chance to grow over time. For me, these Vanguard ETFs tick all of those boxes.

The post 3 excellent Vanguard ETFs I would buy with $3,000 appeared first on The Motley Fool Australia.

More reading

• 5 ASX ETFs for genuine global exposure
• IVV, VGS, VAS: Which ASX ETF produced the better returns in 2025?
• How I would invest $3,000 in ASX shares if I were starting today
• Should I buy ANZ, VAS, and Zip shares this week?
• 3 global ETFs I’d hold for the next decade

Motley Fool contributor Grace Alvino has positions in Vanguard Australian Shares Index ETF. 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 are rarely cheap in an absolute sense. It is one of the highest-quality conglomerates on the ASX, with exposure to defensive retail, improving discretionary earnings, and long-term growth options through its newer businesses.

That said, if I were looking to add a high-quality core holding today, these are the key reasons Wesfarmers would be on my radar.

Recent weakness makes an attractive entry point for Wesfarmers shares

Wesfarmers shares are trading at around $82.98 at the time of writing, which is roughly 13% below their recent high. For a business that has historically traded at a premium due to its quality and reliability, that pullback matters.

The decline has not been driven by any structural deterioration in the business. Instead, it reflects broader market volatility, some caution around consumer spending, and profit-taking after a strong run. For long-term investors, this kind of weakness has often proved to be an opportunity rather than a warning sign.

While this still doesn’t suddenly make Wesfarmers shares cheap, I think the recent pullback improves the risk-reward balance compared to buying near peak optimism.

Earnings growth remains solid and diversified

Wesfarmers’ strength lies in the diversity and resilience of its earnings base. Bunnings continues to be a standout asset with strong market positioning and long-term growth potential. Kmart has proven its ability to gain share even in tougher consumer environments, while Target’s restructuring has reduced drag on group earnings.

Beyond retail, the company’s exposure to chemicals, fertilisers, and industrial safety adds further balance. Over time, its lithium investment also provides optionality that the market may increasingly value as production ramps up.

According to CommSec, consensus estimates point to earnings per share of $2.52 in FY26 and $2.75 in FY27. This continued steady growth is a key part of the Wesfarmers appeal, in my opinion.

A premium valuation that is justified by quality

At the time of writing, Wesfarmers is trading on a forward price-to-earnings (P/E) ratio of around 33 times FY26’s earnings and 30 times FY27’s earnings. That is clearly above the market average.

However, Wesfarmers has rarely traded at market multiples. Its defensive characteristics, strong balance sheet, disciplined capital allocation, and ability to compound earnings through cycles have historically justified a premium valuation.

For investors seeking a reliable long-term compounder rather than a short-term bargain, paying a higher multiple for a business of this quality can still make sense, particularly after a period of share price weakness.

Foolish Takeaway

Wesfarmers is not a deep value play, and it never really has been. But after a meaningful pullback, its shares offer exposure to a high-quality, diversified business with solid earnings growth and a strong long-term track record at a more attractive price.

If I were building or adding to a long-term portfolio today, Wesfarmers is one of the ASX blue chips I would be very comfortable buying at current levels.

The post 3 reason I would buy Wesfarmers shares today appeared first on The Motley Fool Australia.

More reading

• Forget BHP shares! Buy these ASX dividend shares instead for passive income
• 5 fantastic ASX shares to buy for an SMSF
• 1 ASX dividend share set to excel long term, even while down 13%
• 5 ASX stocks to hold for the next decade
• Why is everyone talking about the Wesfarmers share price this week?

Motley Fool contributor Grace Alvino has positions in Wesfarmers. 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.

Building a retirement portfolio is less about chasing the next big winner and more about reducing the chances of unpleasant surprises.

For many investors, that means prioritising companies with dependable cash flows, clear demand for their services, and business models that can keep functioning even when economic conditions are less friendly.

Income matters, but so does durability. A good retirement share is one you feel comfortable holding through market cycles without needing to constantly reassess the story.

With that in mind, here are three ASX shares that stand out as sensible options for a long-term retirement-focused portfolio.

APA Group (ASX: APA)

APA Group is the type of business that will never grab headlines. It owns and operates critical energy infrastructure across Australia, including gas pipelines, storage facilities, and electricity assets. These are long-life assets that are essential to keeping the economy running, regardless of short-term economic conditions.

What makes APA particularly suitable for a retirement portfolio is the visibility of its cash flows. Much of its revenue is underpinned by long-term contracts, which helps smooth earnings and support regular distributions. At the same time, APA continues to invest in energy transition opportunities, ensuring its asset base remains relevant as the energy mix evolves.

That combination of essential infrastructure and predictable income can be very attractive for retirees.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX retirement share to consider is the HomeCo Daily Needs REIT.

It owns large-format retail assets that are leased to tenants such as supermarkets, hardware stores, and other non-discretionary retailers. These businesses tend to remain busy even when households tighten their belts, which helps support stable rental income. Its largest tenants are Coles Group Ltd (ASX: COL), Wesfarmers Ltd (ASX: WES), and our next pick listed below.

HomeCo Daily Needs REIT’s properties are typically leased on long-term agreements, often with built-in rent increases. That provides a level of income predictability that many retirement investors value, while also offering some protection against rising costs over time.

Rather than relying on discretionary spending, it is tied to everyday activity, which arguably makes it a natural fit for an income-focused portfolio.

Woolworths Group Ltd (ASX: WOW)

As one of Australia’s dominant supermarket operators, the company sits at the centre of household spending. People continue to buy groceries in good times and bad, which supports steady revenue and cash generation.

What is sometimes overlooked is how Woolworths continues to refine its operations. Incremental improvements in pricing, range, and efficiency help protect margins over time, even in a competitive environment. This steady execution supports dividends that retirement investors can rely on.

Overall, this could arguably make Woolworths one of the best ASX retirement shares for Aussie investors in 2026.

The post 3 of the best ASX retirement shares to buy appeared first on The Motley Fool Australia.

More reading

• ASX 200 utilities shares led the market last week
• How to build a $50,000 portfolio with ASX 200 shares
• Top 3 ASX 200 blue-chip shares to invest in right now
• An ASX dividend stalwart every Australian should consider buying
• 5 ASX dividend shares to buy for an income boost

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

It was another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

BHP Group Ltd (ASX: BHP)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $56.50 price target on this mining giant’s shares. Morgan Stanley notes that the Big Australian performed positively during the second quarter. This was especially the case with its iron ore operations, which outperformed expectations. Another positive was BHP’s copper operations delivering production ahead of forecasts. This was largely thanks to the key Escondida mine in Chile. In light of this update, the team at Morgan Stanley has seen nothing to change its positive view on the stock. The BHP share price ended the week trading at $48.43.

National Australia Bank Ltd (ASX: NAB)

A note out of UBS reveals that its analysts have upgraded this banking giant’s shares to a buy rating with an increased price target of $47.00. The broker highlights that NAB has been successful in defending its leadership position in business banking. As a result of this, UBS believes the bank is well-positioned to benefit from structural business lending growth. In addition, it notes that with NAB shares underperforming the rest of the big four in 2025, it sees more opportunity for a re-rating this year than it does for the other banks. The NAB share price was fetching $42.35 at the closing bell on Friday.

Zip Co Ltd (ASX: ZIP)

Another note out of UBS reveals that its analysts have retained their buy rating on this buy now pay later provider’s shares with a trimmed price target of $5.20. According to the note, UBS believes that significant share price weakness has created a buying opportunity for investors. It thinks this has been driven partly by an inquiry into the industry in the United States. However, there has been some good news with President Trump calling for 10% caps on credit card interest rates. It feels that this could mean tighter conditions for credit card lending, which could push consumers to buy now pay later services. Though, there is still uncertainty with respect to how Zip’s fees will interpreted by law makers. The Zip share price ended the week at $3.04.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Forget BHP shares! Buy these ASX dividend shares instead for passive income
• Brokers name 3 ASX shares to buy today
• Why this ASX iron ore stock could outperform BHP and Fortescue shares
• NAB share price climbed another 3% on Thursday. What’s next for the banking giant in 2026?
• 5 ASX dividend shares to buy for an income boost

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

If you are looking for a source of passive income from the share market, then read on!

That’s because I’m going to look at several buy-rated ASX dividend shares and see what an investment of $10,000 could generate in the next two years. Here’s what to expect from them:

Amcor (ASX: AMC)

The team at Morgans thinks that Amcor could be an ASX dividend share to buy now for passive income.

The broker currently has a buy rating and $76.00 price target on its shares. Based on its current share price of $62.74, this implies potential upside of 21% for investors over the next 12 months.

As for income, Morgans is forecasting dividends per share of $4.01 in FY 2026 and then $4.09 in FY 2027. This represents dividend yields of 6.4% and 6.5%, respectively.

This means that a $10,000 investment would generate passive income of approximately $640 in 2026 and then $650 in 2027.

Harvey Norman Holdings Ltd (ASX: HVN)

Bell Potter thinks that retail giant Harvey Norman could be an ASX dividend share to buy.

It currently has a buy rating and $8.30 price target on its shares. Based on its current share price of $6.62, this implies potential upside of 25% for investors.

The broker is expecting Harvey Norman to pay fully franked dividends of 30.9 cents per share in FY 2026 and then 35.3 cents per share in FY 2027. This represents dividend yields of 4.65% and 5.3%, respectively.

If this proves accurate, then a $10,000 investment would yield passive income of approximately $465 and $530 over the next two years.

IPH Ltd (ASX: IPH)

A third ASX dividend share that analysts think would be a good option for income investors is IPH.

It is a global intellectual property services group that helps clients across the world protect their patents, trademarks, and intellectual property across multiple jurisdictions.

Morgans is positive on the company and has a buy rating and $6.05 price target on its shares. Based on its current share price of $3.75, this suggests that upside of 61% is possible between now and this time next year.

The broker is also expecting some big dividend yields. It is forecasting fully franked dividends of 37 cents per share in both FY 2026 and FY 2027. This would mean dividend yields of 9.9% for both years.

This means a $10,000 investment could generate a sizeable $990 of passive income in 2026 and 2027.

The post $10,000 in these ASX dividend shares pays how much passive income? appeared first on The Motley Fool Australia.

More reading

• How to make $24,000 in passive income a year
• These two packaging majors are tipped to return better than 25%
• Morgans says these ASX 200 shares can rise 20%+
• 5 excellent ASX dividend stocks I would buy in 2026
• Forget CBA and buy these ASX dividend shares

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

ASX copper stocks are back in the spotlight. Electrification, renewable energy expansion, and electric vehicles continue to push demand higher.

Analysts are warning of structural shortages later this decade. As a result, copper producers with scale and growth options are attracting renewed investor interest.

Two ASX copper stocks that stand out are Capstone Copper Corp (ASX: CSC) and Sandfire Resources Ltd (ASX: SFR). They are both leveraged to the copper price, but with very different profiles.

Capstone Copper

Capstone Copper is the larger of the two and is built for growth. The ASX copper share operates large, long-life copper mines across the Americas, with key assets in Chile, the US, and Mexico.

Its recent performance reflects that scale. Over the past year, Capstone has delivered a strong production update. It was driven by the expansion of its Mantoverde development in Chile and steady output from its existing operations.

That momentum has translated into a strong share price run, with the $12 billion ASX 200 copper stock ramping up by 54% in the past 12 months.

What sets Capstone apart is optionality. Beyond current production, the company holds major expansion and development pathways, including further optimisation at Mantoverde and longer-term growth projects in Chile. That gives Capstone significant upside in a bullish copper market.

The trade-off is risk. Large assets come with exposure to labour negotiations, cost inflation, and execution challenges. The ASX copper stock is more sensitive to both copper prices and operational headlines, but with meaningful upside if conditions stay favourable.

Most analysts see the stock as a strong buy. Macquarie maintains a buy rating on Capstone Copper shares with a 12-month price target of $17. This points to a potential 12% gain over 12 months.

Sandfire Resources

Sandfire Resources offers a more balanced copper story. Once best known for its DeGrussa mine in Western Australia, the $9 billion ASX stock has successfully transitioned into a global producer.

Today, its earnings are anchored by the MATSA operations in Spain and the growing Motheo project in Botswana. This diversified footprint has helped Sandfire generate solid cash flow and earnings, even through periods of commodity volatility.

On Thursday, the company reported group sales revenue of $344 million and an underlying operations EBITDA of $187 million for the December 2025 quarter.

The ASX stock continues to invest in exploration and development to extend mine life and lift production over time. However, its strategy leans more toward steady expansion than aggressive growth. Unlike pure growth plays, Sandfire also benefits from valuable by-products such as zinc, silver, and gold, which can soften the impact of copper price swings.

Over the past year, Sandfire’s shares have performed strongly, gaining 87% in value to $19 at the time of writing. Analyst consensus is neutral with the average 12-month price target at $18.07, 6% below the current share price.

This week, Goldman Sachs reiterated its hold rating but lifted its target price from $12.30 to $16.20.

Canaccord Genuity kept its hold rating, too, but lifted its target from $15 to $19.25.

Morgan Stanley reiterated its sell rating with an $11.45 target.

The post Which one of these popular ASX copper stocks is the smarter buy? appeared first on The Motley Fool Australia.

More reading

• Why Capstone Copper, Dateline, DroneShield, and Lindian shares are falling today
• Strike action sends major copper producer’s shares lower
• Sandfire Resources shares: December 2025 quarter results
• ASX 200 materials was the best sector of 2025 but it’s time to sell these 3 shares: broker
• ASX 200 materials sector outperforms as mining shares continue their ascent

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 Goldman Sachs Group and 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.

BHP Group Ltd (ASX: BHP) shares have been an impressive passive income pick over the last century, but I wouldn’t call them a wonderful buy today as an ASX dividend share.

The ASX mining share has gone on an impressive run in the last few months, as the chart below shows. It’s up around 20% since the November 2025 low.

The higher a share price goes, the lower it pushes the dividend yield. I also think it’s wise to be wary of buying a commodity business when the resource price has gone on a strong run.

I don’t think it’s the best time to buy BHP shares; I’d rather buy the ones below.

Wesfarmers Ltd (ASX: WES)

If I were to pick one of the biggest ASX companies for dividends, I’d choose Wesfarmers over BHP. Neither of them is cheap, but I think Wesfarmers has a much higher likelihood of growing earnings sustainably after FY26.

Wesfarmers is the owner of a number of Australia’s leading retail businesses, like Bunnings, Kmart, Officeworks, and Priceline. It’s not the most defensive business on the ASX, but Wesfarmers is impressive with a return on equity (ROE) of more than 30%, showing it’s very profitable for the level of shareholder money that it keeps and hasn’t paid out as a dividend.

Kmart Group and Bunnings Group are the two key leaders of generating profit for the business, which is great because they both achieve returns on capital (ROC) of around 70%. There are not many businesses on the ASX that can compare to that.

Wesfarmers continues to find new places to invest for long-term earnings growth, making it a very compelling business. Initiatives include healthcare expansion, selling Anko products internationally, product expansion in Bunnings, and lithium mining.

As a bonus, the business has a goal of growing its dividend over time in line with earnings growth. The forecast on CommSec suggests a grossed-up dividend yield of 3.7%, including franking credits.

L1 Long Short Fund Ltd (ASX: LSF)

A listed investment company (LIC) structure is very helpful for delivering stable and rising dividends because of how companies can declare the size of dividends (if any) they want to pay. Exchange-traded funds (ETFs) have to pass through the dividends they receive (which are usually quite low).

If a LIC is good at making investment profits, it can build a profit reserve while still delivering passive income for shareholders.

One of the most effective LICs at delivering returns over the past has been the L1 Long Short Fund. Being able to make returns on some shares that go up and also make returns on some stocks going down (short selling) is a pleasing combination.

In the seven years to December 2025, the ASX dividend share’s portfolio has delivered a net return of an average of 20.7% per year over the prior seven years. Past performance is definitely not a guarantee of future returns with a return of that size.

The business has steadily grown its dividend payout each year since 2021. It recently switched to quarterly dividend payments, making it more attractive for regular cash flow.

Its current annualised payout of 14 cents per share translates into a grossed-up dividend yield of 4.7%, including franking credits. That would be a year-over-year increase of around 10% of the payout.

The post Forget BHP shares! Buy these ASX dividend shares instead for passive income appeared first on The Motley Fool Australia.

More reading

• 5 fantastic ASX shares to buy for an SMSF
• If a 25-year-old invests $1,250 a month in ASX stocks, here’s what they could have by retirement
• 1 ASX dividend share set to excel long term, even while down 13%
• Why this ASX iron ore stock could outperform BHP and Fortescue shares
• 5 ASX stocks to hold for the next decade

Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended BHP Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One of the hottest trends on the ASX at the moment is mining companies. Thanks to rocketing commodity prices, ranging from copper and gold to nickel and silver, ASX mining shares are enjoying a notable resurgence in early 2026.

Commodity prices are notoriously fickle, making it hard to predict what the shares of companies that extract and process them will do next. But if commodity markets keep up their recent momentum, here are two ASX shares that I think could keep riding the boom.

2 ASX mining shares that could keep riding the commodities boom

South32 Ltd (ASX: S32)

South32 is one of the largest and most diversified miners on the ASX. This company was created out of a BHP Group Ltd (ASX: BHP) spin-off over a decade ago. Today, it has extensive global operations spanning aluminium, copper, lead, silver, zinc, and manganese.

Many of these metals have been soaring in value in recent months. That’s probably why the South32 share price has exploded from $2.50 a share in September to $4.38 today (at the time of writing). Yep, this ASX share is up more than 70% in just four months.

Given this company’s diversified nature and exposure to future-facing metals like copper and silver, I think it is poised to continue to benefit from any further gains in global commodity prices.

Newmont Corporation (ASX: NEM)

Newmont is the ASX’s largest gold miner. It is a US-based company, with its shares being present on the ASX thanks to its acquisition of the old Newcrest Mining a few years ago. Today, Newmont is one of the largest gold miners in the world. It has benefited spectacularly from the new record highs that gold has been minting in recent months.

12 months ago, Newmont was asking just $66.44 a share. Today, those same shares will set an investor back $179.05, having jumped a whopping 170% over the past year.

Conditions for gold remain favourable, given ongoing geopolitical and economic uncertainties on the world stage, as well as an insatiable appetite for the precious metal among central banks.

But Newmont isn’t just a gold stock. Gold mining often yields significant levels of byproduct, particularly silver and copper. Newmont happily sells these byproducts alongside its gold yields. Both of these metals have also shot to the moon in recent months. If these trends continue, I wouldn’t be surprised to see Newmont shares climb even higher going forward.

The post 2 ASX shares that could keep riding this commodities boom appeared first on The Motley Fool Australia.

More reading

• ASX silver shares streak higher as silver price nears US$100
• Buy, hold, sell: Netwealth, Santos, and South32 shares
• ASX gold shares go crazy as gold price rips toward US$5,000 on Friday
• Lynas, South32, Liontown: Can these surging shares go higher?
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Sebastian Bowen has positions in Newmont. 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX 200 utilities shares led the market sectors last week with a strong 5.14% gain.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) fell 0.49% to close at 8,860.1 points.

Market spirits were dampened by news of lower unemployment, which raised the prospect of an interest rate hike this year.

Seven of the 11 market sectors finished in the red.

Let’s recap.

Utilities shares led the ASX sectors last week

There are only 21 companies in the ASX 200 utilities sector.

Let’s review the performance of the seven largest players by market capitalisation last week.

Origin Energy Ltd (ASX: ORG) shares rose 7.22% to finish the week at $11.73.

The APA Group (ASX: APA) share price rose 3.21% to $8.99.

Mercury NZ Ltd (ASX: MCY) shares were steady at $5.50.

The Meridian Energy Ltd (ASX: MEZ) share price rose 2.29% to $4.91.

The AGL Energy Limited (ASX: AGL) share price lifted 1.85% to $8.82.

Contact Energy Ltd (ASX: CEN) shares fell 2.56% to $8 apiece.

Genesis Energy Ltd (ASX: GNE) shares increased 1.94% to $2.10.

Energy sector also rises strongly

The ASX 200 energy sector was the second best performer, rising 3.56%.

US natural gas futures skyrocketed last week, and WTI crude oil futures rose 1% amid a persistently softer US dollar.

On Friday, analysts at Trading Economics said US natural gas futures were on track for a weekly gain of more than 70%.

That would be the largest increase among records dating back to 1990.

The analysts said:

US natural gas futures surged past $5.53 per MMBtu, approaching levels last seen in December 2022, as extreme cold forecasts boosted demand expectations and raised supply risks.

Temperatures are projected to remain mostly below normal through February 5 …

A severe winter storm is expected to affect roughly two-thirds of the country, increasing residential and commercial consumption and raising the risk of inventory drawdowns.

At the same time, output is around a three-month low, with part of this week’s production decline linked to freeze-offs, particularly in southern regions.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Utilities (ASX: XUJ)	5.14%
Energy (ASX: XEJ)	3.56%
Materials (ASX: XMJ)	1.58%
Healthcare (ASX: XHJ)	0.42%
Information Technology (ASX: XIJ)	(0.65%)
Consumer Staples (ASX: XSJ)	(1.45%)
Industrials (ASX: XNJ)	(1.46%)
Consumer Discretionary (ASX: XDJ)	(1.53%)
Communication (ASX: XTJ)	(1.56%)
Financials (ASX: XFJ)	(1.88%)
A-REIT (ASX: XPJ)	(2.01%)

The post ASX 200 utilities shares led the market last week appeared first on The Motley Fool Australia.

More reading

• DroneShield hits $200m milestone as 9.2m options vest and 2025 expense revealed
• Shares vs. property: Which delivered the best capital growth in 2025?
• Here are the top 10 ASX 200 shares today
• Insignia Financial responds to ASX on disclosure and governance
• An ASX dividend stalwart every Australian should consider buying

Motley Fool contributor Bronwyn Allen 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 Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.