Category: Stock Market

When you are investing through a self-managed super fund (SMSF), the focus tends to be different.

The emphasis is usually on owning high-quality businesses that can stand the test of time, generate dependable cash flows, and grow steadily without relying on favourable market conditions.

With that in mind, here are five ASX shares that could make strong additions to an SMSF portfolio, each offering a different source of long-term value.

Breville Group Ltd (ASX: BRG)

The first ASX share to consider buying is leading appliance manufacturer Breville Group.

It has been growing at a solid rate consistently for well over a decade. This has been driven by its focus on premium kitchen appliances, innovation, and brand strength, which has allowed it to expand successfully into international markets while maintaining healthy margins.

Its ability to self-fund expansion and generate consistent cash flow makes it a sensible long-term holding rather than a speculative consumer play.

Cochlear Ltd (ASX: COH)

Another ASX share to look at is hearing solutions company Cochlear. It is a textbook example of a high-quality healthcare business suited to long-term ownership.

The company operates in a specialised medical niche, supported by ageing populations and increasing awareness of hearing loss. Once patients adopt Cochlear’s technology, switching is rare, creating long-lasting relationships and recurring revenue from upgrades and services.

Overall, Cochlear offers exposure to global healthcare growth with strong intellectual property and a long track record of reinvesting in research and development. It is the kind of company that could compound quietly over decades.

Goodman Group (ASX: GMG)

A third ASX share to consider is industrial property giant Goodman Group. Its focus on industrial, logistics, and data centre assets places it behind long-term trends such as e-commerce, supply chain optimisation, and digital infrastructure.

Unlike traditional property models, Goodman’s development and funds management capabilities allow it to recycle capital and grow earnings over time. For SMSF investors, Goodman offers a blend of property stability and growth potential, backed by long-term tenant demand and global diversification.

Macquarie Group Ltd (ASX: MQG)

Macquarie is an ASX share that could add diversification and adaptability to an SMSF. It operates across asset management, infrastructure, banking, and commodities, which allows it to perform across different market environments.

This flexibility has been a key reason Macquarie has remained relevant and profitable through multiple economic cycles.

Wesfarmers Ltd (ASX: WES)

Finally, Wesfarmers could be a great ASX share to buy for an SMSF. This conglomerate owns a portfolio of well-known businesses across retail, industrials, chemicals, and resources. This includes Bunnings, Kmart, and Officeworks. This structure allows Wesfarmers to redeploy capital between divisions and invest where returns are most attractive over time.

It may not deliver rapid growth, but its disciplined approach to acquisitions and reinvestment has historically supported long-term shareholder value. It is quite likely that this will remain the case in the future.

The post 5 fantastic ASX shares to buy for an SMSF appeared first on The Motley Fool Australia.

More reading

• How to build a $50,000 portfolio with ASX 200 shares
• How much could I make investing $500 a month in ASX shares?
• 3 outstanding ASX shares the market seems to be ignoring
• 1 ASX dividend share set to excel long term, even while down 13%
• 5 ASX stocks to hold for the next decade

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

It’s not often that one of Australia’s top shares goes on sale, yet that’s what has happened with the TechnologyOne Ltd (ASX: TNE) share price.

As the chart below shows, the ASX tech share has dropped 34% in the last six months. That’s despite the enterprise resource planning (ERP) software business continuing to deliver strong growth.

Great revenue momentum

The business has been growing for many years, and its outlook for expansion continues to be promising.

TechnologyOne achieved its $500 million annual recurring revenue (ARR) goal 18 months early, and it has set a goal of reaching at least $1 billion of ARR by FY30.

It has a high customer retention rate, and its existing customer base is seeing strong revenue growth. A reason why I think it’s one of Australia’s top shares is its net revenue retention (NRR) goal of 115%, meaning its existing customer base delivers 15% higher revenue than last year.

Growing at 15% per year means doubling in five years.

Its customers continue to adopt products and modules faster, with average customer ARR going from $100,000 in FY12 to more than $442,500 in FY25.

Excitingly, the business has its sights set on significant expansion in the UK, with local government, businesses, and education offering a large addressable market. In FY25, it won the Islington London Borough Council and the Council of the Royal Borough of Greenwich as new subscribers.

Good profit prospects

The company’s profit looks like it’s on a good track if earnings just grow at the same pace as the revenue.

However, the business is expecting its profit margin to rise in the coming years, thanks to the economic benefits of software and growth.

In FY25, the business reported its profit before tax margin was 29.75%. It’s expecting that margin to improve to at least 35% in the coming years, driven by the “significant economies of scale” from its “single-instance, multi-tenanted global SaaS ERP solution and the customer response.”

If it can deliver higher margins, I think the business will become increasingly attractive to investors, and the TechnologyOne share price could climb over the long term.

Much better valuation

When one of Australia’s top shares noticeably falls, I think the prospects for good returns are increased.

Following the drop of more than 30% in the past six months, it’s now valued at 38x FY28’s estimated earnings, according to the projection on Commsec.

I think the business is significantly undervalued at 38x FY28’s estimated earnings.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

More reading

• If a 25-year-old invests $1,250 a month in ASX stocks, here’s what they could have by retirement
• 5 of the best ASX growth shares to buy and hold
• 2 ASX 200 shares that could be top buys for growth
• How to build your first ASX share portfolio step by step
• Why a smaller dividend yield can lead to more passive income

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

PLS Group Ltd (ASX: PLS) shares have been very strong performers over the past 12 months.

During this time, the lithium miner formerly known as Pilbara Minerals, has seen its shares rise approximately 120%.

This has been driven by a rebound in lithium prices, which has given the whole industry a major lift.

But with many analysts saying that its shares are around fair value now, investors may get better returns by looking at a different ASX growth stock.

Which ASX growth stock?

The stock that is being tipped to rise very strongly from current levels is WiseTech Global Ltd (ASX: WTC).

This logistics solutions technology company’s shares were sold off in 2025 and could be destined to follow in the footsteps of PLS shares by rebounding strongly between now and 2027.

Bell Potter is one of a number of brokers that believes this could be the case. It has put a buy rating and $100.00 price target on its shares.

Based on its current share price of $61.89, this implies potential upside of over 60% for investors over the next 12 months.

Why is it bullish?

Bell Potter believes that the share price pullback has been an overreaction. Especially given how issues weighing on the ASX growth stock are now easing.

And while there are still risks to consider, the broker feels that the risk-reward is very favourable for investors now.

Commenting on the beaten down ASX stock, Bell Potter said:

WiseTech has also had a large pullback in its share price but this has been more driven by company specific issues like slowing growth in the core business, management and board upheaval and insider trading allegations against CEO and founder Richard White. These issues, however, are starting to subside and focus is returning to the outlook for the core business which is improving with the launch of new products, a new commercial model and the integration of a large acquisition (e2open).

These initiatives are all expected to help drive a much stronger 2HFY26 result relative to 1HFY26 and then the first full year of benefits will be evident in FY27. All of these changes/initiatives are not without risk and there is still some risk of a soft downgrade to revenue guidance in FY26 at the half year result but the 12-month outlook is positive in our view.

The post Forget PLS shares! This ASX growth stock is tipped to rise 60% by 2027 appeared first on The Motley Fool Australia.

More reading

• Why Wisetech could be worth watching after a rough year
•  Why are WiseTech shares still falling?
• 2 beaten-down ASX blue-chip tech shares I’d buy today
• So the PLS share price made it past $5. Big deal. What’s next?
• 2 ASX growth stocks set to skyrocket in the next 12 months

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

ASX 200 mining shares have gone gangbusters amid several key commodities soaring over the past year.

Yesterday, the gold price leapt to a new record above US$4,960 per ounce, and the silver price reached a record US$99.10 per ounce.

Platinum also touched a new record at US$2,661 per ounce.

Meantime, lithium prices continue to streak higher.

The lithium carbonate price has rocketed 72% in just one month to trade at a 26-month high of US$24,521 per tonne.

This has led many brokers to update their ratings and 12-month share price targets for ASX 200 mining shares.

Some experts perceive a little irrational exuberance in the market today.

Here are two ASX 200 mining shares that some experts say have overshot their fundamental worth.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is up about 160% over 12 months.

This ASX 200 large-cap gold share reached a record $15.29 per share on Friday.

The Evolution share price closed the week at $14.86.

Evolution operates a portfolio of gold mines across Australia, including major sites in NSW, Queensland, and Western Australia.

Morgans put a trim rating on Evolution shares last week after the company reported its latest quarterly earnings.

The broker said Evolution beat market expectations for production and costs. The miner also generated record cash flow again.

But Morgans is concerned about valuation. It suggests that investors trim their holdings.

The broker commented:

We maintain our TRIM rating as we view the stock as fully valued.

However, we see merit in retaining some exposure given EVN’s significant leverage to gold and copper prices, which are currently at record levels.

The broker raised its 12-month share price target from $11.10 to $13.20, which implies a potential downside of 11%.

RBC Capital is far more pessimistic and expects a significant fall in the Evolution share price.

The broker reiterated its sell rating after the miner’s earnings release.

RBC raised its share price target slightly from $10 to $10.10.

This implies a potential downside of 32% over the next year for this ASX 200 gold mining share.

Macquarie is similarly negative in its outlook.

It also reiterated a sell rating and a $10.20 price target last week.

Liontown Ltd (ASX: LTR)

Liontown shares are up about 230% over 12 months.

The ASX lithium share set a new 52-week high of $2.26 earlier this month.

The Liontown share price finished the week at $2.19.

Liontown operates the Kathleen Valley hard-rock lithium project in Western Australia.

Last week, Citi reiterated its sell rating on Liontown shares.

The broker lifted its 12-month price target from 50 cents to $1.70, but this still implies a potential 22% fall ahead.

Macquarie is even more pessimistic.

The broker reiterated its sell rating on Liontown with the expectation that it will plummet to $1 per share by the end of the year.

That suggests the ASX lithium mining share will lose more than half its value.

The worst prediction is from Jarden, which expects Liontown shares to nosedive to 58 cents by the end of 2026.

The post Experts call time on these rip-snorting ASX 200 mining shares appeared first on The Motley Fool Australia.

More reading

• 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
• Bell Potter says this ASX 200 gold share is a buy with 18% upside
• Buy, hold, sell: Evolution Mining, Hub24, and Rio Tinto shares

Citigroup is an advertising partner of Motley Fool Money. 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 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.

Yesterday afternoon, DroneShield Ltd (ASX: DRO) announced the vesting of 9.2 million Performance Options, reflecting a milestone of $200 million in cash receipts within a rolling 12-month period. The company’s continued rapid sales growth has also resulted in a $23.5 million share option non-cash expense for 2025.

What did DroneShield report?

• 9,224,361 Performance Options vested after reaching $200 million in cash receipts over 12 months
• Share option non-cash expense for 2025 totals $23.5 million
• Fully diluted shares on issue will be 930,409,195 if all new options are exercised
• 995,000 Performance Options remain unvested, tied to higher future milestones
• All Performance Options were verified and approved by independent auditor

What else do investors need to know?

DroneShield’s option milestone was independently verified by auditor HLB Mann Judd, covering cash receipts from 2 April 2025 to 13 January 2026. The newly vested options were initially granted when DroneShield’s sales and share price were much lower, designed to reward employees for driving transformational growth.

A revised incentive plan now aligns longer-term performance with shareholder interests. New Performance Options will vest in stages only if the company achieves ambitious annual cash receipt or revenue targets of $300 million, $400 million, and $500 million. These changes apply to eligible employees, with any future grants to the CEO subject to shareholder approval.

What’s next for DroneShield?

Looking ahead, DroneShield’s enhanced incentive plans are designed to motivate its team to reach even higher milestones, with structured vesting aligned to future business expansion. Investors can expect upcoming audited full-year financial results in February 2026, which will formally confirm the company’s performance and option expense.

The company remains focused on scaling its global operations and building on its momentum in the defence technology sector, partnering with governments and enterprise customers to protect critical infrastructure.

DroneShield share price snapshot

Over the past 12 months, Droneshield shares have risen 577%, significantly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post DroneShield hits $200m milestone as 9.2m options vest and 2025 expense revealed appeared first on The Motley Fool Australia.

More reading

• Shares vs. property: Which delivered the best capital growth in 2025?
• Here are the top 10 ASX 200 shares today
• My 3 higher-risk, high-reward ASX stock recommendations for February 2026
• Insignia Financial responds to ASX on disclosure and governance
• Why Capstone Copper, Dateline, DroneShield, and Lindian shares are falling today

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

There are not many ASX dividend shares I’d be happy to own which have a dividend yield of more than 9%. The listed investment company (LIC) WAM Microcap Ltd (ASX: WMI) is one that I own and it comes with several positives.

The dividend yield is an appealing factor of the business, but there’s more to it than just huge payouts.

WAM Microcap is run by the fund manager Wilson Asset Management. It is already been around for nine years, and I’m expecting it to in my portfolio for many years to come for a few reasons.

Big dividend yield

Let’s start by acknowledging how big the dividend yield is.

Pleasingly, the business grew its regular annual dividend per share each year between FY18 and FY23. It maintained the payout in FY24 and then increased dividend per share to 10.6 cents in FY25.

In other words, it has delivered a reliable level of dividends over the last several years, as well as a few special dividends.

At the time of writing, the FY25 payout translates into a dividend yield of 9.1%, including franking credits.

It ticks the yield and reliability boxes, but there are two other elements that are attractive.

Small ASX shares can make big returns

A LIC’s job is to make investment returns for shareholders. Those returns can be generated in a variety of different ways, from various sized businesses.

The WAM Microcap investment team look for opportunities at the small end of the ASX share market, which comes with two key advantages.

Firstly, those stocks are much earlier on in their growth journey compared to the well-known ASX shares. They may have a much better earnings growth rate than their larger counterparts. Rising earnings is a key driver of higher share prices.

Second, small businesses are not as widely researched by investors as larger businesses. It’s more likely that a small business will be overlooked and undervalued.

I think it’s the above factors that have helped the WAM Microcap deliver an average return per year of 16.7% since inception in June 2017 (before fees, expenses and taxes). This level of return helps fund the large yield.

Diversification

WAM Microcap is not a highly concentrated portfolio of just a few names. It’s invested in a variety of sectors, with dozens of stocks spread across areas like industrials, consumer discretionary, financials and IT. That gives it good diversification.

Some of its biggest holdings at the end of December 2025 were Autosports Group Ltd (ASX: ASG), Baby Bunting Group Ltd (ASX: BBN), FINEOS Corporation Holdings PLC (ASX: FCL), Generation Development Group Ltd (ASX: GDG), Kelsian Group Ltd (ASX: KLS) and Tuas Ltd (ASX: TUA).

While small caps can be volatile, it’s not exposed too much to one business or one sector. It’s a compelling investment for yield investors, in my opinion.

The post This 9% yield is one I’m comfortable holding for the long term appeared first on The Motley Fool Australia.

More reading

• If a 25-year-old invests $1,250 a month in ASX stocks, here’s what they could have by retirement
• 1 ASX blue-chip share and one small-cap share to buy in 2026: experts

Motley Fool contributor Tristan Harrison has positions in Tuas and Wam Microcap. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended FINEOS Corporation. The Motley Fool Australia has positions in and has recommended FINEOS Corporation. The Motley Fool Australia has recommended Generation Development Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Looking a decade ahead changes the way you think about investing.

Short-term market noise fades into the background and what really matters is whether the businesses you own can keep growing, adapting, and generating cash over long periods.

That is where exchange traded funds (ETFs) can be especially useful. They allow investors to back enduring themes and high-quality stocks without needing to constantly reshuffle a portfolio.

With a 10-year-plus horizon in mind, here are three ASX ETFs that could be worth buying and holding until 2036.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

The Betashares Global Cash Flow Kings ETF could be an ASX ETF to buy and hold.

Rather than focusing purely on growth or valuation, this fund targets global stocks that generate strong and sustainable free cash flow.

That cash generation gives businesses flexibility. It can be used to reinvest, reduce debt, pay dividends, or return capital to shareholders.

The portfolio includes high-quality global leaders such as ASML Holding (NASDAQ: ASML), Alphabet (NASDAQ: GOOGL), Costco Wholesale (NASDAQ: COST), NVIDIA (NASDAQ: NVDA), and Visa (NYSE: V). These are businesses that not only operate at scale but consistently turn revenue into real cash.

It was recently recommended by analysts at Betashares.

VanEck MSCI International Quality ETF (ASX: QUAL)

The VanEck MSCI International Quality ETF is another ASX ETF that could be suitable for buy and hold investors.

This ASX ETF invests in international stocks with strong balance sheets, high returns on equity, and stable earnings profiles. These characteristics tend to matter more as time horizons extend, because they reduce the risk of permanent capital loss.

Its holdings read like a list of global corporate leaders. This includes Meta Platforms (NASDAQ: META), NVIDIA, Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Eli Lilly (NYSE: LLY), Alphabet, Visa, and ASML Holding.

This fund was recently recommended to investors by analysts at VanEck.

VanEck China New Economy ETF (ASX: CNEW)

The VanEck China New Economy ETF is a third and final fund for investors to look at.

This ASX ETF targets stocks that are tied to China’s emerging sectors such as healthcare, technology, advanced manufacturing, and consumer innovation.

Holdings include businesses like Intsig Information, Giantec Semiconductor, Shennan Circuits, and several pharmaceutical and biotechnology stocks. These are areas China has been actively investing in as it looks to move up the value chain.

The VanEck China New Economy ETF is certainly not without risk, but over a 10-year horizon it offers exposure to a part of the global economy that is likely to keep evolving.

It was also recently recommended by analysts at VanEck.

The post 3 ASX ETFs to buy and hold until 2036 appeared first on The Motley Fool Australia.

More reading

• Why Aussies are pouring into ASX ETFs at a record pace
• Why this high-quality ASX ETF could be my next ASX buy
• Investing in the VanEck International Quality ETF (QUAL)? Here’s what you’re really buying
• 3 ASX ETFs that could be perfect for beginner investors in 2026
• Why the IVV ETF and these funds could be top buys in 2026

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 ASML, Alphabet, Apple, Costco Wholesale, Meta Platforms, Microsoft, Nvidia, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 ASML, Alphabet, Apple, Meta Platforms, Microsoft, Nvidia, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Turning 50 is a quiet financial milestone. For many Australians, it is the point where retirement shifts from an abstract future idea to something that feels uncomfortably real.

With around 17 years until Age Pension eligibility, superannuation suddenly carries more weight. There’s still time to make meaningful progress, but far less room for complacency.

That naturally leads to one big question: am I roughly where I should be by now for a good retirement? Let’s find out.

What does a good retirement actually cost?

Before looking at balances, it helps to understand where you are going.

According to the Association of Superannuation Funds of Australia (ASFA), retirees generally fall into one of two lifestyle categories.

A comfortable retirement allows for more than just covering the basics. It includes private health insurance, regular leisure activities, reliable transport, and the ability to enjoy travel and time with family. That might includes flights with Qantas Airways Ltd (ASX: QAN) overseas.

As of the September 2025 quarter, ASFA estimates this requires annual spending of around $54,240 for singles and $76,505 for couples. To support that lifestyle from age 67, ASFA suggests a super balance of about $595,000 for singles and $690,000 for couples.

A modest retirement, by contrast, sits slightly above the Age Pension. It covers essentials and occasional leisure, but with limited discretionary spending.

For this lifestyle, ASFA estimates a super balance of roughly $100,000 for both singles and couples.

With those benchmarks in mind, the averages at age 50 start to carry more context.

So, what is the average super balance at 50?

There isn’t a single official data point for exactly age 50, but we can make a reasonable estimate using the surrounding age brackets from ASFA data.

Australian women aged 45 to 49 hold average balances of approximately $147,000, whereas women aged 50 to 54 hold average balances of approximately $190,000. Based on this, we can assume that the average Australian woman has a balance of approximately $169,000.

For men, the averages stand at $193,000 and $254,000 for the two age groups. This would suggest that the average 50-year-old Australian man is sitting on a superannuation balance of approximately $224,000.

Is that enough?

Based on the Rest Super calculator, a 50-year-old woman earning $70,000 a year with a balance of $169,000 could expect to retire with superannuation of $369,000.

Whereas an Australian man of the same age and earning the same amount with $224,000 in super could see their balance grow to $465,000 by retirement.

That places many Australian singles below the level required for a comfortable retirement. But pleasingly, the average Aussie couple would be easily over what is needed.

Is there time to catch up?

At 50, time is no longer abundant, but it is still powerful.

Seventeen years of compulsory employer contributions, combined with investment returns, can materially change outcomes. Many people also reach their peak earning years in their 50s, creating opportunities to boost super through salary sacrifice or concessional contributions, where appropriate.

Investment settings also matter. While everyone’s risk tolerance is different, being overly conservative too early can quietly limit growth. Even small improvements in long-term returns can have a significant impact over the final stretch to retirement.

Foolish takeaway

Being average with super at 50 doesn’t guarantee a comfortable retirement, but it doesn’t rule one out either.

What matters most from here is awareness and intent. Knowing where you stand today allows you to make informed choices about contributions, investment strategy, and expectations for retirement.

Superannuation isn’t about hitting a perfect number by a certain birthday. It is about steadily improving your position, and at 50, there is still plenty of opportunity to do that.

The post Here is the average Australian superannuation balance at 50 in 2026 appeared first on The Motley Fool Australia.

More reading

• Which airline could deliver almost 25% returns? See what the analysts say
• 5 ASX shares I’d buy with $5,000 this week
• 5 ASX 200 shares I think could beat the market in 2026
• ASX income stocks: A once-in-a-decade chance to get rich
• 2 ASX shares highly recommended to buy: Experts

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 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.

In comparing the capital growth rate of ASX 200 shares vs. property in 2025, bricks and mortar won out.

S&P/ASX 200 Index (ASX: XJO) shares rose 6.8% and gave a total return, including dividends, of 10.32%.

Meanwhile, the national median home value, which reflects all property types in a single data point, rose by 8.6%.

The total return, including rental income, was 12.4% over the 12 months, according to data from Cotality.

Drilling down into property types, the national median house price rose 9.3% to $980,343 the apartment price lifted 6% to $728,184.

Investment property market in 2025

Cotality Australia Head of Research, Eliza Owen, said the property market had an unexpectedly strong year.

Owen commented:

Markets entered 2025 under considerable pressure.

Affordability had hit a series high, serviceability was stretched and price growth had flattened out.

What followed was an unexpectedly strong rebound as interest rate cuts, easing inflation and limited supply reignited competition.

The expansion of the 5% Home Guarantee Scheme from 1 October and persistently low listing volumes also helped drive prices higher.

The expanded scheme is now accessible to an unlimited number of first home buyers, regardless of their income.

Property price caps were raised as part of the expansion.

In Sydney and the prime regional NSW hubs of The Illawarra, Newcastle, and Lake Macquarie, the price cap is $1.5 million.

Owen said there were three consecutive months of at least 1% growth in the national median value, from September to November.

The Australian property market is now worth $12 trillion compared to ASX shares at $3.6 trillion and superannuation at $4.5 trillion.

Lower value property markets saw the best growth because they were more affordable.

Let’s look at the specific growth numbers for metro and regional areas last year.

Shares vs. property in 2025: Houses

Here is the capital growth rate for houses in each market, ranked from highest to lowest.

Property market	Capital growth of houses in 2025
Darwin	19.9%
Regional Western Australia	16.5%
Perth	15.7%
Brisbane	14%
Regional Queensland	12.8%
Regional South Australia	10.9%
National	9.3%
Adelaide	8.7%
Regional NSW	7.6%
Regional Tasmania	7.1%
Sydney	6.9%
Hobart	6.8%
Canberra	6.4%
Regional Victoria	6.1%
Melbourne	5.8%
Regional Northern Territory	1.7%

Source: Cotality

Shares vs. property in 2025: Apartments

Here is the capital growth rate for apartments (and other strata properties), ranked from highest to lowest.

Property market	Capital growth of apartments in 2025
Perth	17.5%
Darwin	17%
Brisbane	16.9%
Regional South Australia	14.3%
Regional Queensland	12.1%
Regional Western Australia	9.5%
Adelaide	9.5%
Hobart	6.9%
Regional NSW	6%
National	6%
Regional Victoria	5.8%
Sydney	2.9%
Regional Tasmania	2.8%
Melbourne	2.5%
Canberra	0%
Regional Northern Territory	N/A

Source: Cotality

5 best-performing ASX 200 shares of 2025

Let’s compare shares vs. property in more detail by looking at the capital growth of the five best-performing ASX 200 shares of 2025.

ASX 200 shares	Capital growth in 2025
DroneShield Ltd (ASX: DRO)	300%
Pantoro Gold Ltd (ASX: PNR)	220%
Resolute Mining Ltd (ASX: RSG)	206%
Liontown Resources Ltd (ASX: LTR)	197%
Regis Resources Ltd (ASX: RRL)	196%

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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 positions in and has recommended DroneShield. 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.

Earning $2,000 a month in passive income sounds like a dream.

But you can make it a reality in the share market thanks to ASX shares and the power of compounding.

Here’s how you can do it:

Build your capital first

In the early days, the goal is not passive income. It is momentum.

When a portfolio is small, dividends make very little difference in dollar terms. At this stage, investors are usually better served by focusing on blue chip shares with growth potential, established growth stocks, and broad ASX and global ETFs. These assets are designed to grow earnings and capital over time.

Any income generated along the way should be reinvested instead of spent. Dividends quietly buy more shares. Growth compounds on top of earlier gains. The portfolio starts to build scale, which is essential for meaningful income later on.

Examples of good options for investors at this stage could be the Betashares Nasdaq 100 ETF (ASX: NDQ), the iShares S&P 500 AUD ETF (ASX: IVV), and ResMed Inc. (ASX: RMD)

How much do you need?

If you are wanting passive income of $2,000 a month or $24,000 a year, then you would need a portfolio worth $480,000 based on a 5% dividend yield.

That’s no small sum, but it is more achievable than you think.

Let compounding work for you

This is the part many investors underestimate.

In the early years, contributions do most of the work. Progress feels slow. But over time, returns start to matter more than new money. Compounding does the heavy lifting, provided the investor stays invested through both good and bad markets.

Reaching a portfolio size of $480,000 is usually the result of time and consistency rather than a single great decision.

For example, it would take 16.5 years of investing $1,000 a month to grow a portfolio to $480,000 if you achieved a return of 10% per annum. This sort of return is not guaranteed, but it is broadly in line with long-term market returns. So, it certainly is possible.

Transition from growth to income

Once the portfolio has sufficient size, its role changes.

Growth still matters, but reliability and cash flow become more important. This is where investors often begin shifting toward quality ASX dividend shares and income-focused ETFs. These assets are designed to convert capital into regular income rather than maximise capital growth.

At a 5% yield, a $480,000 portfolio can generate around $24,000 a year. Importantly, this income does not have to come at the expense of long-term stability. Many high-quality ASX dividend payers have durable businesses and growing cash flows. Current examples include Telstra Group Ltd (ASX: TLS) and Harvey Norman Holdings Ltd (ASX: HVN).

Foolish takeaway

Making $24,000 a year in passive income is not about finding the perfect dividend stock today.

It is about building a portfolio large enough to support that income sustainably. By starting with growth assets, allowing compounding to work, and only later transitioning to dividend shares and income ETFs, investors give themselves a realistic path to $2,000 a month in passive income.

The post How to make $24,000 in passive income a year appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF, ResMed, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF, Harvey Norman, ResMed, and Telstra Group. The Motley Fool Australia has recommended 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.