Category: Stock Market

Serious money continues to flow into two of the ASX’s most popular Vanguard exchange-traded funds (ETFs). Vanguard Australian Shares Index ETF (ASX: VAS) and Vanguard MSCI International Shares ETF (ASX: VGS) now collectively manage rougly $40 billion in funds under management.

These two ASX ETFs form the backbone of countless long-term portfolios, offering broad exposure to Australia, global markets and the world’s largest economy.

But after gains and shifting global conditions, investors may be asking whether they still deserve a place in a modern portfolio.

Aussie classic

The Vanguard Australian Shares Index ETF remains the core domestic building block for many investors, tracking the performance of the 300 ASX’s largest companies.

The popular Vanguard ETF has delivered around 5% in 2026 and 2% over the past 12 months, reflecting steady but modest growth compared to global markets.

Two of its largest holdings include Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP), giving investors exposure to both financials and resources.

The strength of VAS lies in its diversification across Australia’s leading companies and its consistent dividend income stream. Many Australian shares pay dividends, and the VAS ETF passes those distributions on to its investors.

However, risks remain, particularly its heavy concentration in banks and resources, which can make returns heavily dependent on domestic economic conditions and commodity cycles.

True global reach

The Vanguard MSCI International Shares ETF provides broad global diversification outside Australia and has returned around 8% over the past year.

This Vanguard ETF invests across developed markets, reducing reliance on the Australian economy and offering exposure to a wide range of industries and geographies.

Two of its largest holdings are Apple Inc (NASDAQ: AAPL) and NVIDIA Corp (NASDAQ: NVDA), giving investors exposure to both established tech leaders and the high-growth semiconductor sector.

VGS is often viewed as a long-term portfolio stabiliser due to its global reach. However, it still carries risks associated with international market cycles, geopolitical uncertainty, and currency movements, all of which can affect returns for Australian investors.

Foolish takeaway

Despite decent recent performance across the two funds, these Vanguard ETFs continue to play distinct and complementary roles in long-term portfolios. VAS offers domestic stability and dividends and VGS delivers global diversification.

For many investors, the combination remains a powerful foundation for building wealth over time. With a single purchase, an investor can gain exposure to a broad portfolio of established Australian and international businesses, then keep investing and let those companies compound over time.

But understanding each ETF’s risks and exposures is essential in deciding whether they still deserve a place in your portfolio today.

The post Are these 2 top Vanguard ETFs still worth buying today? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Rio Tinto, PLS Group, BHP shares
• Experts name 2 ASX 200 blue chip shares to buy this week
• By September 2027, BHP shares could turn $10,000 into…
• Buy, hold, sell: Commonwealth Bank, Goodman Group, CSL shares
• The 2 top yielding ASX 200 bank stocks revealed (Hint: Not CBA shares)

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

Australia’s cost-of-living debate lives almost entirely in the present tense. 

Grocery bills. Energy prices. Mortgage repayments. Rent dues.

Retirement planning often needs the opposite treatment. Targets are set using today’s prices, even though the money may not be needed for another 10, 15 or 20 years.

That is why some of the most damaging superannuation mistakes do not look dramatic. They are small assumptions that quietly compound in the wrong direction.

1. Treating a benchmark as a personal plan

The latest ASFA Retirement Standard estimates that a comfortable retirement costs around $55,923 a year for a single person and $78,566 for a couple.

These figures are useful starting points, but they are not personal forecasts.

Housing, travel, healthcare and family commitments can produce very different outcomes. ASFA’s related lump-sum estimates also assume retirees own their home, draw down their capital and receive some Age Pension support.

A benchmark can tell you what an average retirement might cost today. It cannot decide what your retirement will look like.

2. Planning entirely in today’s dollars

Suppose you want retirement income of $6,000 a month, or $72,000 a year, in today’s dollars.

If retirement is 15 years away and inflation averages 3.5% (in line with the latest figure), funding the same lifestyle would require approximately $120,625 a year. That is more than $10,000 a month.

This is a stress test rather than an inflation forecast. The Reserve Bank of Australia targets inflation of 2% to 3%.

Even at the midpoint of 2.5%, however, the equivalent income rises to approximately $104,277. That is more than $32,000 above the original nominal target.

Inflation does not merely increase the required balance. It moves the destination while you are still travelling towards it.

3. Becoming defensive too early

Reaching retirement does not mean an investment horizon suddenly falls to zero. A portfolio may still need to fund 20 or 30 years of spending.

Growth assets carry real volatility. The S&P/ASX 200 Index (ASX: XJO) has endured plenty of difficult years, and another downturn will eventually arrive.

However, removing too much growth exposure too early can create a different risk: a portfolio that struggles to keep pace with inflation.

The appropriate balance will differ for every investor. The important point is that market volatility and lost purchasing power are both risks.

4. Ignoring a small fee difference

Superannuation fees rarely feel urgent because they are deducted gradually. Compounding makes them expensive.

Consider a $400,000 balance invested for 15 years with no additional contributions. At a net annual return of 6.5%, it would grow to approximately $1.03 million.

Reduce that net return to 6%, with everything else unchanged, and the ending balance falls to roughly $958,600.

That half-percentage-point difference costs approximately $70,000 before allowing for tax, insurance premiums or changing market returns.

Put more bluntly: small recurring costs deserve investors’ attention because the compounding effect can be destructive to your capital.

5. Assuming every contribution has arrived

The final mistake is the least glamorous. Many employees rarely check whether their superannuation has actually been paid.

The ATO’s estimate puts the net super guarantee gap at approximately $6.25 billion for 2022–23, equal to 6% of the super employers were expected to pay.

Payday super, which began on 1 July 2026, should make missing contributions easier to identify. Employer contributions must generally reach an employee’s super fund within seven business days of payday rather than being paid quarterly.

That improves visibility, but it does not remove the need to check. Comparing payslips with a super account can reveal missing or incorrect payments before years of potential returns are lost.

Foolish takeaway

None of these mistakes announces itself with a market crash or frightening headline.

Instead, there is a benchmark treated as a plan, an inflation assumption that proves too optimistic, a portfolio that becomes cautious too soon, fees that look harmless and contributions that nobody checks.

Each gap can appear small in isolation. Over 15 years, the arithmetic becomes much less forgiving.

Markets will always remain uncertain. However, assumptions, fees, asset allocation and whether contributions arrive are variables investors can still monitor.

That may be considerably more valuable than chasing a perfect retirement number.

The post 5 superannuation mistakes that could shrink your nest egg appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Are ASX bank shares a buy in September?
• ASX 200 mining shares outperform in final week of earnings season
• Could ASX shares crash? 5 questions every investor should ask now
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Leigh Gant 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.

S&P/ASX 200 Index (ASX: XJO) shares rose 0.37% last week and are up 4.2% in the calendar year to date (YTD).

Today is the final day of earnings season.

We will hear from Michael Hill International Ltd (ASX: MHJ) and Monash IVF Group Ltd (ASX: MVF) today.

Meanwhile, if you’re keeping an eye on dividend opportunities, there are 37 ASX shares going ex-dividend this week.

Let’s start the day with some new ratings from the experts (courtesy The Bull). 

CSL Ltd (ASX: CSL)

CSL shares rose 2.39% to $172.32 apiece last week, and are up 0.2% in the YTD.

Damien Nguyen from Morgans has a buy rating on this ASX 200 healthcare share. 

Nguyen said: 

CSL is a global healthcare leader with strong competitive advantages across plasma therapies, vaccines and specialty medicines.

Demand for its products remain largely independent of economic conditions.

In our view, the latest full year result in 2026 is generating confidence that repeated earnings downgrades are behind CSL.

With defensive earnings, global market leadership and attractive long term growth prospects, we view CSL as an appealing investment opportunity.

Goodman Group (ASX: GMG)

The Goodman Group share price rose 2.38% to $27.92 last week, and is down 9% for the YTD.

Jonathan Tacadena from MPC Markets has a hold rating on this ASX 200 property share. 

Tacadena said: 

Goodman Group is a global industrial property and data centre developer. It delivered an operating profit of $2.675 billion in full year 2026, up 15.7 per cent on the prior corresponding period.

Data centres drove work in progress to $19.7 billion across 50 projects in 12 countries.

Property investment income of $722.1 million was up 7 per cent. Occupancy remained high at 95.6 per cent.

The company is targeting earnings per share growth of 9 per cent in full year 2027.

Earnings momentum and management quality justify holding the position.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price fell 0.47% to $157.25 last week, and is down 2% for the YTD.

Nguyen has a sell rating on this ASX 200 bank share, and said:

The CBA continues to deliver resilient earnings, strong capital levels and industry leading returns, reinforcing its position as Australia’s premier banking franchise.

However, the earnings growth outlook remains relatively modest as intense competition and margin pressure possibly weigh on profitability.

Despite these headwinds, the stock trades at a significant premium to its peers and historical valuations.

With limited scope for earnings upgrades, we believe the share price leaves little room for disappointment.

The post Buy, hold, sell: Commonwealth Bank, Goodman Group, CSL shares appeared first on The Motley Fool Australia.

More reading

• Experts name 2 ASX 200 blue chip shares to buy this week
• Are these 2 top Vanguard ETFs still worth buying today?
• The 2 top yielding ASX 200 bank stocks revealed (Hint: Not CBA shares)
• Are ASX bank shares a buy in September?
• How to build an ASX portfolio you do not need to check every day

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

If it’s market beating passive income you’re after, then you may be wondering which of the dividend paying S&P/ASX 200 Index (ASX: XJO) bank stocks offer the highest dividend yields.

We’ll answer that question below, as well as looking at how their share prices have performed over the past year.

When you’re on the hunt for higher yielding ASX dividend shares, it’s important to have a look at those share price trends as well.

With that said…

Tapping the Aussie banks for passive income

Over the last 12 months, Commonwealth Bank of Australia (ASX: CBA) has declared a total of $5.05 a share in fully franked dividends.

At the recent CBA share price of $156.30, that sees CommBank shares trading on a fully franked dividend yield of 3.2%. The CBA share price is down around 10% since this time last year.

Over the last 12 months, National Australia Bank Ltd (ASX: NAB) has paid out two fully franked dividends totalling $1.70 a share.

At the recent NAB share price of $38.41, the ASX 200 bank stock trades on a fully franked dividend yield of 4.4%. The NAB share price is down around 11% in a year.

Over the last 12 months, ANZ Group Holdings Ltd (ASX: ANZ) has paid out $1.66 a share in partly franked dividends.

At the recent share price of $36.65 ANZ shares trade on a partly franked dividend yield of 4.5%. Bucking the trend, ANZ shares are up 8.8% in a year.

Over the last 12 months, Westpac Banking Corp (ASX: WBC) has paid out $1.54 a share in fully franked dividends.

At the recent Westpac share price of $33.91, Westpac trades on a fully franked 4.5% dividend yield. Westpac shares are down 12.9% in 12 months.

These are the top two yielding ASX 200 bank stocks

Over the past 12 months, Bendigo and Adelaide Bank Ltd (ASX: BEN) has declared 63 cents a share in fully franked dividends. At the recent Bendigo Bank share price of $10.61, this ASX 200 bank stock trades on a fully franked dividend yield of 5.9%.

Bendigo Bank shares are down around 21% in a year.

Over the past 12 months, Bank of Queensland Ltd (ASX: BOQ) paid out a total of 55 cents a share in fully franked dividends. That includes the special capital return dividend the bank paid out on 24 August.

At the recent share price of $6.42, this sees Bank of Queensland shares trading on a fully franked dividend yield of 8.6%. Even excluding the special dividend, the stock still trades on a fully franked 6.2% yield, making this the highest yielding ASX 200 bank stock.

Bank of Queensland shares are down around 11% in 12 months.

The post The 2 top yielding ASX 200 bank stocks revealed (Hint: Not CBA shares) appeared first on The Motley Fool Australia.

More reading

• Are ASX bank shares a buy in September?
• Sell alert! Why this expert is calling time on Westpac and CBA shares
• Could ASX shares crash? 5 questions every investor should ask now
• How much passive income can I earn from $500,000 in superannuation?
• How much passive income can I earn off a $1 million superannuation balance?

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

It’s been a rough month for S&P/ASX 200 Index (ASX: XJO) bank shares, with declines across the board reversing many gains made earlier this year.

It looks like investor sentiment has turned negative amid concerns about falling mortgage demand, a weakening housing market, and tight competition squeezing margins.

It didn’t help that inflation data came in higher than expected in August, sending major banks into a tailspin. Recent July inflation data showed underlying inflation remained at 3.6%, above the Reserve Bank’s 2% to 3% target. The update has prompted several major banks to forecast another hike as early as September.

What happened to the ASX 200 big four major banks in August?

Australia’s banking sector is dominated by the big four banks: Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), and ANZ Group Holdings Ltd (ASX: ANZ).  

Together, they make up around a quarter of the ASX 200 Index by market capitalisation. 

There was a flurry of results announcements from the ASX major banks this month, which didn’t exactly instil confidence.

CBA reported a record cash profit, while NAB, Westpac and ANZ also delivered resilient quarterly earnings. However, all four majors showed signs of weaker mortgage demand.

At the time of writing, with only a couple more trading days left of the month, CBA shares are changing hands at $155.68 a piece. The ASX 200 major bank’s shares have fallen around 12% in August. 

NAB shares are trending lower at the time of writing, down around 8% over the month to $38.06 per share.

ANZ shares are down around 2% for the month of August and are changing hands at $36.54 per share at the time of writing.

Meanwhile, Westpac shares are trading for $33.83 each, having fallen around 11% throughout the month.

What about the mid-tier banks?

It’s more of the same for ASX 200 mid-tier banks too.

Bendigo and Adelaide Bank Ltd (ASX: BEN) fell around 8% to $10.50, at the time of writing.

Bank of Queensland Ltd (ASX: BOQ) shares have fallen a slightly lesser 4% to a current trading price of $6.38 each. 

While Macquarie Group Ltd (ASX: MQG) shares suffered the least, they are still in the red for the month, at the time of writing. The ASX bank shares are down around 1% for the month and trade at $251.59 per share.

Which ASX bank shares are a buy for September?

Macquarie shares were the least affected by the ASX bank stock sell-off in August, and brokers are bullish on the prospect of a near-term rebound. TradingView data shows that the majority (nine out of 12) have a buy/strong buy rating on Macquarie shares. The average $268.69 target price now implies a potential upside of around 7% at the time of writing.

Which ASX bank shares to brokers rate as a hold?

TradingView data shows the majority of brokers have a hold rating on ANZ shares. But the $35.92 average target price implies a potential 2% downside at the time of writing.

The data also shows the majority of brokers rate NAB shares as a hold. The $38.07 average target price is largely flat relative to the trading price at the time of writing, with a small potential 0.2% upside ahead.

Brokers are also neutral on Bendigo Bank shares. TradingView data shows that the majority have a hold rating, but again, the $10.33 average target price implies a potential 2% downside at the time of writing.

And which ones have a sell recommendation?

Then there are the ASX bank shares that brokers are most bearish on.

CBA shares still the least favoured ASX bank stock. TradingView data shows the majority have a strong sell rating on the banking giant’s shares. The latest $127.86 target price implies a potential 18% downside ahead for investors, at the time of writing. 

The majority also have a sell rating on Westpac shares. The latest $33.38 average target price now implies a potential 1% downside, according to TradingView data.

BOQ shares are also expected to keep falling. Most brokers rate the ASX bank as a sell, and the $6.09 average target price on TradingView now implies around a 5% downside ahead.

The post Are ASX bank shares a buy in September? appeared first on The Motley Fool Australia.

More reading

• ASX 200 mining shares outperform in final week of earnings season
• Sell alert! Why this expert is calling time on Westpac and CBA shares
• Could ASX shares crash? 5 questions every investor should ask now
• Here are the top 10 ASX 200 shares today
• Why the ASX 200 is pushing higher as rate hike fears grow

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

If I had a spare $5,000 to invest in ASX shares in September, these would be four of my top picks.

Life360 Inc (ASX: 360)

Life360 posted its second-quarter FY26 update in mid-August, including a 38% increase in revenue, to US$159 million, and a 53% increase in adjusted EBITDA, to US$31.1 million. Looking ahead, Life360 still expects FY26 revenue growth to accelerate between 33% to 40% year-on-year to between US$650 million and US$685 million. But investors weren’t impressed, likely because they were expecting another upward revision to FY26 revenue guidance. But I think the ASX shares have been oversold and that there is still great growth potential ahead. Brokers seem to agree. Market Index shows they all have a strong buy consensus and the $31.72 target price implies a potential 57% upside, at the time of writing.

WiseTech Global Ltd (ASX: WTC) 

WiseTech shares faced yet more headwinds in August after the company reported a 46% increase in EBITDA to US$558.4 million for the 12 months through to the 30th of June. The result was in line with the company’s $550 million to $585 million guidance range but short of market forecasts of $569.5 million. It didn’t blow investors away, but the company still maintains a strong competitive advantage in the global logistics industry, and I think the shares are trading well below fair value. Market Index shows that the majority of brokers are very bullish on the ASX tech shares and hold a strong buy rating. The average $57.66 target price implies a potential 45% upside over the next 12 months, at the time of writing.

Electro Optic Systems Holdings Ltd (ASX: EOS)

EOS posted a huge 283% hike in its half-year revenue last week, and a reduced net loss of $32.9 million. Underlying EBITDA swung into profit, and its net assets grew to $391.6 million. Going forward, EOS expects continued strong demand, driven by defence spending and escalating global interest in counter-drone technologies. Management is forecasting a record FY26 revenue ahead. Brokers are also incredibly bullish about the outlook for EOS shares. Market Index data shows that all analysts rate the ASX shares a strong buy. The average $13.10 target price implies a potential 15% upside at the time of writing.

Light & Wonder Inc (ASX: LNW)

Light & Wonder has been reshaping its business in recent years, focusing on recurring revenue and higher-quality earnings. And it looks like all that hard work is finally coming to fruition. The company posted a strong second-quarter earnings update in early August, including a 2% increase in revenue and a 26% increase in net income year-on-year. The company also achieved a 16% increase in adjusted net profit after tax and amortisation (NPATA). Brokers are bullish on ASX gaming shares and expect them to keep climbing. At the time of writing, Market Index data shows all brokers have a strong buy rating, and the $187.50 target price implies an upside of around 45%.

The post 4 ASX shares I’d buy with $5,000 in September appeared first on The Motley Fool Australia.

More reading

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• 3 ASX 200 shares to buy post-results: broker

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems, Life360, Light & Wonder Inc, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Life360 and WiseTech Global. 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.

September is almost here, which makes now a good time to look for ASX growth shares with room to run.

One approach is to look for companies with products that can sell globally, markets that can expand, and business models that could be much larger in the years ahead.

With that in mind, here are three ASX growth shares that could be worth considering in September.

Breville Group Ltd (ASX: BRG)

Breville could be an ASX growth share to buy in September. It sells premium kitchen appliances across categories such as coffee machines, ovens, food preparation, cooking, and other products for the home.

Its biggest opportunity remains coffee.

Home coffee has become a serious category around the world, with consumers increasingly willing to pay for machines that can deliver a better result than basic appliances.

This plays directly into Breville’s strengths. The company sits at the premium end of the market, has a strong design reputation, and has built a brand that can compete internationally.

That is important because Breville is not limited to Australia. It has the potential to keep expanding in large overseas markets where its brand awareness is still developing.

If it can keep launching better products, growing distribution, and taking share in the premium home coffee market, its earnings could be materially larger over time.

Consumer spending can be up and down, but Breville’s global growth runway remains attractive.

Life360 Inc (ASX: 360)

Life360 is another ASX growth share that could be worth a closer look.

The technology company operates a family safety app that helps users stay connected through location sharing, driving reports, crash detection, emergency alerts, and other protection features.

This is not just another app fighting for attention. Life360 can become part of how families organise daily life. Parents may use it to check teenagers are safe, families may use it when travelling, and households may rely on it for peace of mind.

That creates a valuable habit. The company also has a large base of free users, which gives it an opportunity to convert more people onto paid subscriptions over time and grow its advertising business.

If Life360 can keep adding useful features and deepening the role it plays inside family life, revenue and earnings could be much larger by the end of the decade.

WiseTech Global Ltd (ASX: WTC)

A final ASX growth share to consider is WiseTech Global.

The logistics software company is best known for CargoWise, which is a platform used by freight forwarders and logistics providers around the world.

Global trade is complicated. Goods need to move across countries, ports, warehouses, customs systems, carriers, and regulators.

WiseTech helps logistics companies manage that complexity.

That may not sound as exciting as artificial intelligence or consumer technology, but it is a very strong niche. Once software like CargoWise is embedded in a logistics business, it can become difficult to replace.

WiseTech has had a difficult period and investor confidence has been tested.

But the underlying opportunity remains attractive. If the company can rebuild trust and keep expanding its platform across global logistics, it could still be a much larger business in the years ahead.

The post 3 ASX growth shares to buy in September appeared first on The Motley Fool Australia.

More reading

• Warren Buffett’s playbook: 3 cheap ASX shares that could soar up to 60%
• Top brokers name 3 ASX shares to buy next week
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• 9 ASX 200 shares with strengthened buy ratings this week
• WiseTech shares are bouncing back. Is it time to buy?

Motley Fool contributor James Mickleboro has positions in Life360 and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and WiseTech Global. The Motley Fool Australia has positions in and has recommended Life360 and WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are some ASX dividend shares with such a large dividend yield that they could deliver market-beating returns just with the passive income.

If we say that the share market’s long-term average annual return has been roughly 9% to 10%, then a double-digit dividend yield could be very compelling.

But, I wouldn’t just invest in any business with a high dividend yield. I’d want to ensure I had a high level of confidence that the payouts would continue to flow even if there was wider economic uncertainty.

With that in mind, I think the two stocks below fit the bill.

Hearts and Minds Investments Ltd (ASX: HM1)

This business is a listed investment company (LIC) that aims to provide investment returns and also provide financial contributions equivalent to 1.5% of its net assets per year to leading Australian medical research organisations to fund the development of new medicines and treatments, driving a new generation of medical research in Australia.

The portfolio is picked by a variety of investment professionals who all work for free to make picks for the portfolio. A majority of the portfolio is chosen by a permanent group of fund managers, while a minority of the picks are chosen at an annual investment conference.

It’s a portfolio of best picks, which aim to produce good returns. Over the three years to June 2026, its portfolio produced an average return per year of 13.8%, which is a strong enough return to deliver very good returns.

The business is steadily increasing its payout by 0.5 cents every six months. That suggests the next two dividends to be paid could come to 20.5 cents for the year ahead. That would be a grossed-up dividend yield of 9.6%, including franking credits, at the time of writing.

WAM Microcap Ltd (ASX: WMI)

WAM Microcap is another LIC, it targets small-caps on the ASX. This is an effective strategy because of how small-caps may have a lot of growth ahead of them while also being undervalued for that growth.

The business owns dozens of the most attractive small ASX shares out of the hundreds it could choose from.

By generating such good returns over the long-term, the business is able to fund pleasing dividend payouts. Its portfolio has returned an average of 13.1% per year since June 2017 (excluding fees, other expenses and taxes).

Excluding special dividends, its annual payout has increased every year since it started paying dividends in 2018, aside from FY24 when it maintained the payout.

Its annual dividend per share of 10.7 cents for FY26, which translates into a grossed-up dividend yield of 10.6%, including franking credits, at the time of writing.  

The post 2 ASX shares with dividend yields above 9.5% appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Hearts And Minds Investments and Wam Microcap. 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.

Superannuation is one of the best tools investors can use to build wealth due to its lower tax rate. Australians can also use superannuation to invest in certain assets for high passive income.

We don’t necessarily need to access the passive income immediately for it to be a good investment. Australians may appreciate owning investments with stable earnings that deliver consistent payouts year to year.

Given that superannuation has a lower tax rate than individual tax rates for full-time earners, there’s less of a headwind for the after-tax passive income returns compared to investments made outside of super.

There are many different passive income investments available to people who utilise self-managed superannuation funds (SMSFs). Other super funds can allow investors to invest in assets such as S&P/ASX 300 Index (ASX: XKO) shares – many businesses in that index are appealing options for income.

How to generate $2,500 of monthly passive income from superannuation

Each household has a different financial situation. There isn’t a one-size-fits-all approach that I can outline that would say what everyone’s net income would be. With that in mind, I’ll just talk about gross income, which is before taxes and expenses.

Generating $2,500 of monthly passive income translates into $30,000 per year.

The amount you need to invest to reach that income goal depends on the dividend yield, or interest rate, of the investments.

I’ll give you an example. If someone had $1 million invested with a 3% dividend yield, it would generate $30,000 of annual income.

If the dividend yield were higher, an investor wouldn’t need as much invested in superannuation to create that same level of annual or monthly passive income.

For example, if an investor’s portfolio had a 4% dividend yield, an investor would require $750,000.

A 5% dividend yield would mean investors require a $600,000 portfolio.

If the dividend yield was 6% then the portfolio value required would only be $500,000.

Where I’d invest for a high dividend yield

If I were looking for a high level of monthly passive income, I’d focus on businesses with a good dividend yield but also have delivered reliability.

Some of the names I’d consider would be MFF Capital Investments Ltd (ASX: MFF), WCM Global Growth Ltd (ASX: WQG), Future Generation Global Ltd (ASX: FGG), Future Generation Australia Ltd (ASX: FGX), Centuria Industrial REIT (ASX: CIP), Charter Hall Long WALE REIT (ASX: CLW), Hearts and Minds Investments Ltd (ASX: HM1), Rural Funds Group (ASX: RFF) and PM Capital Global Opportunities Fund Ltd (ASX: PGF).

But, I also wouldn’t ignore investments with somewhat lower yields that have a track record of regular dividend growth as well as appealing capital growth.

The post How much is needed in superannuation to target a $2,500 monthly passive income? appeared first on The Motley Fool Australia.

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• Why these 3 top ASX dividend shares are my biggest holdings
• 2 ASX passive income ideas I’d use to generate $300 a month in 2027
• Forget term deposits! I’d buy these ASX dividend shares instead
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Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, Future Generation Global, Hearts And Minds Investments, Mff Capital Investments, Rural Funds Group, and Wcm Global Growth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Mff Capital Investments and Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

These three ASX shares have taken a beating over the past year, but their market leadership and long-term growth potential could make them worth a closer look.

WiseTech Global Ltd (ASX: WTC), Pro Medicus Ltd (ASX: PME) and NextDC Ltd (ASX: NXT) are down 60%, 39% and 5%, respectively, at the time of writing.

While Buffett typically favours predictable, cash-generative businesses with durable competitive advantages, these three companies offer some of those qualities, albeit with varying degrees of risk.

WiseTech Global: logistics software at a crossroads

WiseTech’s CargoWise platform powers critical operations across the global freight and logistics industry. Its deep integration into customers’ workflows creates switching costs and a network effect that can be difficult for competitors to replicate.

However, the ASX tech share has endured a messy period, with governance concerns and controversies surrounding founder leadership damaging investor confidence.

Now, WiseTech is making a dramatic transformation, including cutting roughly one-third of its workforce as it integrates AI into its core offerings. That’s a significant execution risk, but it could ultimately create a leaner and more efficient business.

TradingView data shows most analysts rate WiseTech shares a buy or strong buy, with an average price target of $60.63, implying around 33% upside.

It’s more speculative than Buffett’s typical compounders, but the company’s platform remains a potentially valuable asset.

Pro Medicus: a powerful healthcare moat

This $20 billion ASX share provides medical imaging software, with its Visage platform helping hospitals and healthcare systems view and analyse medical images.

What makes it difficult to copy is the combination of sophisticated technology, deep integration into hospital workflows and the significant switching costs involved in replacing critical clinical software.

Importantly, Pro Medicus estimates it has captured only around 11% of the US market, leaving a substantial runway for expansion.

During FY26, the company signed 10 new contracts worth at least $407 million and renewed all six existing contracts, worth $141 million over five years. Customers are also increasingly adopting its cardiology offering.

Nine of 15 TradingView analysts rate the shares a buy or strong buy. The average price target of $212.65 implies roughly 12% upside, while Bell Potter retains a buy rating and $226 target.

NextDC: betting on the AI boom

NextDC operates data centres, increasingly vital infrastructure for the digital economy. As AI, cloud computing, streaming and other data-intensive applications expand, demand for secure data centre capacity should keep rising.

This ASX share is expanding its footprint, including its first AI-ready facility in Kuala Lumpur and facilities designed specifically for AI workloads, such as its S6 Sydney data centre.

The opportunity has attracted strong broker support. Nine of 10 TradingView analysts rate NextDC shares a buy or strong buy.

The average price target is $21.60, implying around 59% upside, while UBS maintains a buy rating with a $22.55 target.

Foolish takeaway

None of these ASX shares is a pure textbook Warren Buffett investment. But all three possess qualities Buffett appreciates: market leadership, competitive advantages and potentially significant long-term cash-generation opportunities.

For investors prepared to accept the risks, these beaten-down ASX shares could offer significant upside if their growth stories remain intact.

The post Warren Buffett’s playbook: 3 cheap ASX shares that could soar up to 60% appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Would I buy NEXTDC shares after its strong FY26 results?
• 2 ASX data centre stocks rated a buy
• 3 ASX 200 shares to buy post-results: broker
• 9 ASX 200 shares with strengthened buy ratings this week

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