Category: Stock Market

Temple & Webster vs Harvey Norman shares

If you’re on the hunt for a value play in the battered Australian retail sector, Temple & Webster Group Ltd (ASX: TPW) and Harvey Norman Holdings Ltd (ASX: HVN) have both taken a hammering lately. But these are very different retailers. Should you bet on the nimble pure-play online player or the diversified retail giant with an eye-catching dividend yield? Here’s how I stack up Temple & Webster vs Harvey Norman shares for value investors, based on the latest available figures.

The case for Temple & Webster

Temple & Webster is Australia’s leading online-only furniture and homewares retailer. Since launching in 2011, its growth story has revolved around shaking up traditional home buying. According to its most recent company profile, the platform stocks over 200,000 products and counts more than 1 million subscribers. While numbers like these signal scale and reach, I’d note they come from profile info, not up-to-the-minute financials.

A few fundamentals catch my eye:

• Price-to-earnings (P/E) ratio is a hefty 123.05.
• No dividend paid – all earnings are being retained for growth or shoring up the business.
• Its year-to-date (YTD) share price return is a bruising -68.8%, showing how hard sentiment has turned against tech and online retail models recently.

This pure digital play grew quickly when lockdowns favoured online shopping, but with normality returning, the harsh downturn in its share price is a reminder that markets can turn fast for disruptors.

The case for Harvey Norman

Harvey Norman is an established household name and one of Australia’s largest retail conglomerates, spanning furniture, electronics, computers, and entertainment goods. Beyond its core stores, it also owns the Domayne and Joyce Mayne brands in Australia. According to its latest public profile, it operates more than 270 outlets across eight countries, plus a significant property portfolio, especially in Australia and New Zealand.

Key fundamentals I notice:

• Much more modest P/E ratio at 9.56.
• Temptingly high ~6.8% dividend yield, fully franked at 100%.
• YTD share price return of -37.7% shows Harvey Norman shares have still been hit hard, but not to the same extent as Temple & Webster.

Harvey Norman also has plenty of runs on the board when it comes to paying dependable, franked dividends. In tough markets, that’s a comfort for value investors.

Valuation comparison

There’s a dramatic contrast between these two on current valuation metrics. Here’s how they stack up side-by-side:

Metric	Temple & Webster	Harvey Norman
Market Cap	$504.7 million	$5.08 billion
P/E Ratio	123.05	9.56
Dividend Yield	0.00%	6.79% (100% franked)
Earnings Per Share (EPS)	$0.035	$0.424
YTD Return	-68.8%	-37.7%

Note: Temple & Webster’s high P/E ratio relative to its modest EPS reveals it’s priced for big expected growth, while Harvey Norman’s low P/E (for its sector) looks more classic value. Both have negative returns this year, but Temple & Webster’s losses have been far steeper. For income seekers, only Harvey Norman is paying a dividend—and a sizeable, franked one.

Recent share price momentum

Comparing recent share price performance up to 7 October:

• Temple & Webster closed at $4.33 on 7 October 2026, up 1.4% for the day but still deeply in the red year-to-date (-68.8%).
• Harvey Norman closed at $4.08 on 7 October 2026, gaining 0.7% for the session and sporting a year-to-date decline of -37.7%.
• Both companies have seen some choppy trading in the last fortnight, but the magnitude of Temple & Webster’s drawdown highlights the sharper fall from grace.

Which is the better buy?

Both of these retailers are bruised, but in my eyes, Harvey Norman stands out as the better bet for value investors right now. The reasons? Its underlying valuation looks far more attractive, with a P/E of 9.56 compared to Temple & Webster’s lofty 123—and it’s paying a substantial fully franked dividend. If I’m looking for value, I want some measure of income and downside protection.

Temple & Webster’s growth story is tantalising, but its sky-high valuation and the absence of a dividend make it more suited to growth investors willing to stomach big swings and back a post-punishment rebound. The negatives? That massive YTD fall signals sentiment could take a while to repair.

For my money, Harvey Norman’s long record of payouts, more defensive business model, and low P/E make it my pick of these two beaten-down retailers for a value-focused investor. If you’re hunting for bargains in a challenged sector, I’d lean toward Harvey Norman for its combination of income, value, and resilience.

The post Temple & Webster vs Harvey Norman: Which beaten-down ASX retailer offers better value? appeared first on The Motley Fool Australia.

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• Temple & Webster vs Nick Scali: Which furniture share is better?

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 Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Temple & Webster Group. 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 draft. 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.

On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week in a positive fashion. The benchmark index rose 0.65% to 8,716.6 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set for a good start to the week following a strong session on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 37 points or 0.4% higher. In the United States, the Dow Jones was up 0.85%, the S&P 500 rose 0.6%, and the Nasdaq pushed 0.65% higher.

Oil prices rise

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a decent start to the week after oil prices rose on Friday night. According to Bloomberg, the WTI crude oil price was up 0.4% to US$91.85 a barrel and the Brent crude oil price was up 0.4% to US$104.72 a barrel. Rising tensions in the Middle East may be behind this rise.

Buy Life360 shares 

Life360 Inc. (ASX: 360) shares could be undervalued according to Bell Potter. This morning, the broker has retained its buy rating on the location technology company’s shares with a trimmed price target of $32.00. It said: “We have reduced the multiple we apply in our EV/EBITDA valuation from 25x to 22.5x due to the continued weakness in software and app stocks both domestically and offshore. […] The upcoming quarterly result next month may well prove to be some sort of catalyst, more so because expectations are already low rather than anticipating any sort of material beat or upgrade to guidance.’

Gold price storms higher

It could be a strong start to the week for ASX 200 gold shares such as Capricorn Metals Ltd (ASX: CMM) and Northern Star Resources Ltd (ASX: NST) after the gold price stormed higher on Friday night. According to CNBC, the gold futures price was up 1.4% to US$4,216.3 an ounce. This may have been driven by bargain buying after the precious metal touched a two-month low earlier in the week.

Buy EOS shares

It could be a good time to buy Electro Optic Systems Holdings Ltd (ASX: EOS) shares. This morning, Bell Potter has retained its buy rating on the defence and space stock with an improved price target of $13.80. It said: “EOS has entered into an agreement with the government of a Middle Eastern Gulf state (GCC member) for a nation-wide counterdrone (C-UAS) defence system valued at £370m (~$700m). This represents the largest contract ever secured by EOS.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

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

The ASX dividend stock HomeCo Daily Needs REIT (ASX: HDN) has fallen 35% (at the time of writing) from its peak around five years ago, and it’s down 15% from August, as the chart below shows.

It’s an Australian real estate investment trust (REIT) that invests in convenience-based assets across the sub-sectors of neighbourhood retail, large format retail, and health and services. It aims to give investors consistent and growing distributions.

Its property portfolio is worth more than $5 billion of assets across 2.3 million square metres of land across Sydney, Melbourne, Brisbane, Perth, and Adelaide. It’s also a strategic investor in unlisted funds.

Potential passive income

Following a large decline of the share price, the yield on offer is boosted. For example, when a business with a 6% distribution yield falls 10%, the yield becomes 6.6%.

We’re talking about a larger decline with the HomeCo Daily Needs REIT unit price, and hence, the distribution yield is noticeably larger.

The business expects its net rental profit, or funds from operations (FFO), for the 2027 financial year to be 8.8 cents per security. The distribution per unit is forecast to be 8.6 cents per security, so the business expects to retain a little bit of its rental profit with a distribution payout ratio of 97.7%.

If those projections become reality, the FFO per unit will drop 2.2%, and the distribution will be maintained.

Excitingly, the forecast payout for FY27 will be a distribution yield of 8%. That’s significantly better than what term deposits offer.

While rising interest rates are a headwind for the business, stopping growth in FY27, the last few years did see slight distribution growth, showing it can deliver growth under normal economic conditions.

Large asset discount with the ASX dividend stock

One of the easiest ways to value the ASX dividend stock, or most REITs, is by looking at the net tangible assets (NTA) or net asset value (NAV). That figure includes the net figure with the value of the properties, loans, cash, and other assets and liabilities. It’s meant to reflect the true underlying value of the business at the time.

It reported NTA of $1.56 at 30 June 2026, so it’s trading at a 30% discount to this figure.

The ASX dividend stock reported 4% comparable property net operating income growth in FY26, along with 5.9% leasing spreads (5.9% rental growth for newly signed leases compared to the old rental rate). That shows that it’s producing solid underlying performance.

This period of higher interest rates is tough, but I think it has opened up a compelling buying opportunity.

The post 1 ASX dividend stock down 35% I’d buy right now appeared first on The Motley Fool Australia.

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• How much passive income can I make from a $100,000 ASX share portfolio?
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• 2 ASX real estate funds that could return 23% to 35%

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

If someone had $10,000 to invest in ASX dividend shares, then they’re in luck. It’s a great time to buy with the dividend yields on offer in the stock market right now.

I’m going to outline three stocks that offer good yields and have a track record of underlying growth.

One business is a real estate investment trust (REIT), one is a leading supermarket business, and one is a quality exchange-traded fund (ETF) that provides a solid distribution yield.

I’d happily split $10,000 among the ASX dividend shares below.

Centuria Industrial REIT (ASX: CIP)

This business describes itself as Australia’s largest ASX-listed domestic pure-play industrial REIT. It has 83 assets worth around $4 billion across metropolitan locations nationwide.

Industrial properties have several demand drivers, including e-commerce adoption, data centres, the onshoring of supply chains, and refrigerated space requirements (for food and medicine). This is helping increase the value of industrial land.

In FY26, it grew net operating income (NOI) by 5.2%, and it expects to grow its funds from operations (FFO) by up to 5.5% in FY27.

The ASX dividend share grew its annual distribution per unit by 3% in FY26 and expects to increase it by another 3% to 17.3 cents per unit, yielding 6.2%.

Coles Group Ltd (ASX: COL)

Coles is one of the leading supermarket businesses in Australia, with hundreds of supermarkets around the country. It also has Coles Liquor and Liquorland stores within its liquor division.

The business has succeeded at providing customers with what they want over the last several years through the products it sells, the convenience of its store network, an improving online shopping offering, and other factors.

Coles has benefited from Australia’s growing population, and it has also invested significantly in huge distribution centres and customer fulfilment centres (CFCs). This has helped efficiencies, stock flow, and more.

The ASX dividend share has grown its payout every year for the last several years, and I expect that can continue as its store network expands and e-commerce sales grow.

Its FY26 payout translates into a grossed-up dividend yield of 4.75%, including franking credits.  

WCM Quality Global Growth Fund (ASX: WCMQ)

The final investment I want to highlight is this ETF.

WCM is a fund manager based in California, so it operates in quite a different environment to the analysts in Wall Street (New York).

The fund manager wants to invest in businesses with an expanding economic moat, measured with a rising return on invested capital (ROIC). WCM also wants to find businesses with a corporate culture that supports an expansion of the economic moat.

WCM believes that corporate culture is the biggest influence on a company’s ability to grow its economic moat, so it has analysts specifically focused on corporate culture.

The investment strategy seems to be working. Over the past three years, the ASX dividend share’s portfolio has delivered a net return of 22% and 14.9% per year since inception (in August 2018). It has outperformed the global share market over the past three years and since inception.

In terms of passive income, the ASX dividend stock aims to pay a minimum annualised cash distribution yield of 5%.

The post Where to invest $10,000 in ASX dividend shares today appeared first on The Motley Fool Australia.

More reading

• CBA vs Coles shares: Which is the better buy at age 50?
• How much is needed in superannuation to target a $100,000 annual passive income?
• Wesfarmers vs Coles: Which dividend share is better for retirees?
• My favourite ASX passive income shares for retirees
• How much do I need to retire on $85,000 a year at 50?

Motley Fool contributor Tristan Harrison has positions in Wcm Quality Global Growth Fund. 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.

Woolworths vs JB Hi-Fi : Which should you pick in today’s economic environment?

With plenty of uncertainty in Australia’s economic outlook, many investors are weighing up defensive consumer staples like Woolworths Group Ltd (ASX: WOW) against more cyclical consumer discretionary options like JB Hi-Fi Ltd (ASX: JBH). If you’re wondering where your next investment dollar is better placed—staples or discretionary—let’s dive into the numbers, business strengths, and recent performance data to help you decide between Woolworths shares and JB Hi-Fi shares.

The case for Woolworths Group

Woolworths is one of Australia’s retail heavyweights, mainly known for its vast network of supermarkets across Australia and New Zealand. It also owns Big W, giving it a strong presence in both everyday groceries and discount department stores. While Woolworths previously had significant interests in liquor and hospitality, it split these off in 2021 to form Endeavour Group.

Woolworths’ main drawcard is its defensive profile. No matter how the economy is tracking, people still need to buy food and essentials, making Woolworths a classic ‘consumer staples’ play. Its massive market capitalisation of $46.69 billion reflects the size and reach of the group. With a current P/E ratio of 41.21, it’s trading at a premium—likely a nod to its stability in uncertain times. The stock offers a fully franked dividend yield of 2.54%, and dividends have been consistent over the years, as shown by its steady payout history. Woolworths’ shares have returned an impressive 33.1% so far this year.

The case for JB Hi-Fi

JB Hi-Fi sits firmly in the consumer discretionary camp, focusing on electronics, appliances, and home entertainment through its JB Hi-Fi, The Good Guys, and e&s stores. While the business has shown the ability to ride waves of demand for gadgets and household gear, its sales are more sensitive to consumer confidence and economic cycles compared to the staples sector.

JB Hi-Fi has a market capitalisation of $7.69 billion—much smaller than Woolworths, but still a major player on the ASX. Its most striking feature is value: a P/E ratio of just 15.74, noticeably lower than Woolworths’, and a hefty 4.79% fully franked dividend yield. Its earnings per share stands at 4.467—substantially above Woolworths’ 0.925 EPS figure. JB Hi-Fi’s dividend payments have also grown over recent years, reflecting its cash-generative business. However, the share price has fallen 23.5% year to date, a reminder of the higher risk and volatility faced by discretionary retailers when economic conditions sour.

Valuation comparison

Here’s how the core valuation numbers stack up for both companies:

Metric	Woolworths Group	JB Hi-Fi
Market Cap	$46.69 billion	$7.69 billion
P/E Ratio	41.21	15.74
Dividend Yield	2.54% (fully franked)	4.79% (fully franked)
Earnings per Share (EPS)	0.925	4.467
Dividend per Share	0.97	3.37
Year to Date Return	33.05%	-23.45%
Franking	100%	100%

Note: Woolworths Group Ltd’s reported P/E and EPS figures may be based on different earnings measures, which can cause apparent mismatches between the calculated and reported ratios.

Woolworths’ much higher P/E ratio indicates investors are paying up for perceived safety and stability, while JB Hi-Fi trades on a lower earnings multiple but offers a higher dividend yield and much stronger earnings per share.

Recent share price momentum

Comparing recent share price performance up to 7 October 2026:

• Woolworths Group closed at $38.22, with a modest 0.26% gain on the day. Its shares have shown positive momentum year to date, up 33.1%.
• JB Hi-Fi closed at $70.36, rising just 0.10% for the day, but with a sharp -23.5% return year to date—reflecting tough consumer conditions.

Which is the better buy?

If I had to pick between Woolworths and JB Hi-Fi in today’s economic climate, my choice would be Woolworths. Here’s why: defensive consumer staples like groceries and everyday essentials tend to hold up better when interest rates are high and households tighten the purse strings. Woolworths’ high P/E ratio clearly shows investors are paying a premium for perceived safety, but the company’s consistent, fully franked dividends and solid price performance this year back up that defensive reputation.

On the other hand, while JB Hi-Fi offers much stronger earnings per share and a very appealing dividend yield, its hefty share price drop year to date points to real challenges in the discretionary retail space. That doesn’t mean JB Hi-Fi isn’t a good business—far from it—but in a choppy economy, I think defensive shares like Woolworths look more attractive, even at a higher valuation.

For those who crave stability and steady income, I’d lean toward Woolworths shares right now. But if the economic outlook brightens and consumer spending bounces back, JB Hi-Fi might look much more appealing given its valuation and yield.

The post Woolworths vs JB Hi-Fi: Which ASX shares to buy now? appeared first on The Motley Fool Australia.

More reading

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• Woolworths Group vs Telstra Group: Which ASX blue chip pays better passive income?
• Here’s the dividend forecast out to 2029 for Woolworths shares
• 2 ASX blue-chip shares offering big dividend yields
• 3 defensive ASX shares I’d buy in a market sell-off

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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. 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.

Wesfarmers Ltd (ASX: WES) shares are an excellent option for Australians seeking passive income. It’s such a solid business that I’d rather invest in it than receive the Age Pension.

Wesfarmers is the company that owns various businesses such as Bunnings, Kmart, Officeworks, Priceline, Target, a chemicals, energy and fertiliser business called WesCEF and other healthcare businesses (such as InstantScripts).

Australia’s Age Pension is one of the most generous in the world. The maximum per fortnight that a single person can receive was recently hiked to $1,237.70 per person.

For me, there are two key reasons why I’d prefer Wesfarmers shares to the Age Pension.

The payout is growing faster than inflation

The Age Pension is regularly growing over time, with inflation playing a key role in how fast it increases.

However, the Wesfarmers dividend is growing faster. Therefore, my cash flow could steadily improve beyond the Age Pension if I started with the same income.

In FY26 – the financial year that finished in June 2026 – Wesfarmers’ board decided to hike its annual dividend per share by 7.8% to $2.22. That payout growth rate was significantly more than the inflation rate.

Its dividend is projected to increase again in FY27. According to Commsec’s forecast, the business is expected to grow its payout by 5.5% in FY27, 6.5% in FY28, and 8.8% in FY29.

Of course, projections are not guaranteed future payments.

Potential for a rising Wesfarmers share price

Another reason I prefer this ASX dividend share is its potential for capital growth. I think it’s a good thing to have a strong asset base.

In the past four years, it has risen by 70%, at the time of writing. Past performance is not a guarantee of future returns.

The business has proven that its main businesses are excellent at growing their earnings. In FY26 alone, Bunnings Group (which includes Beaumont Tiles) grew earnings by 5.1%, and Kmart Group grew earnings by 6%. WesCEF grew earnings by 18.5%, but it’s significantly smaller than Bunnings and Kmart.

In my view, for two retailers to deliver solid growth in a difficult retail environment is really impressive.

Both Bunnings and Kmart achieve returns on equity (ROC) of close to 70%, while Wesfarmers’ overall return on equity (ROE) was 35.5%. The company achieves enormous returns on money invested in certain areas of the business, which, to me, is a stronger indicator that future internal investments can help profit grow.

Over the long-term, profit growth is the best driver for the Wesfarmers share price, so I’d say this business is a solid ‘compounder‘ option.

How many shares it’d take to match the Age Pension

I’m going to focus on the FY27 payout, given that investors have already received the FY26 dividend.

The business is projected to pay an annual dividend per share of $2.34 in FY27. The maximum Age Pension currently annualises to an approximate total of $32,180.

If we exclude franking credits from the income goal, it’d take 13,753 Wesfarmers shares. Including franking credits, it would take 9,627 Wesfarmers shares to match the Age Pension.

But, I wouldn’t suggest putting someone’s entire investment portfolio into one business. I’d include other quality ASX shares as well.

The post 9,627 shares of Wesfarmers pay an income equal to the Age Pension appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.

Commonwealth Bank of Australia vs Coles Group shares

Thinking about putting a decent sum of money to work at age 50? You might be weighing up blue-chip mainstays like Commonwealth Bank of Australia (ASX: CBA) and Coles Group Ltd (ASX: COL). Both are household names, offer steady dividends, and can anchor a portfolio for long-term wealth – but which really stacks up as the better buy now?

The case for Commonwealth Bank of Australia

Commonwealth Bank of Australia is the country’s largest bank by market value, with a history dating back over a century. It’s truly a financial powerhouse, serving millions of Aussies and Kiwi customers across banking, funds management, insurance, and broking. CBA’s brand is instantly recognisable and its digital banking platform is widely regarded as an industry leader.

Looking at the fundamentals:

• P/E Ratio: 23.38 – a not-uncommon range for the big banks in recent years.
• Dividend yield: 3.31%, fully franked, with a long record of consistent, rising payouts (recent years showing annual increases).
• Market Cap: $251.64 billion – it absolutely dominates the ASX banking sector by size.
• CBA’s earnings per share is 6.517, supporting its substantial dividends.
• Importantly for many retirees or near-retirees, it franks all its dividends at 100%.

The case for Coles

Coles is a giant of the Australian supermarket scene, serving everyday groceries to millions of households each week. The company includes Coles Supermarkets, Coles Liquor, and significant online channels, making it a true consumer staple. Once part of the old Coles Myer empire, it found new independence after spinning off from Wesfarmers in 2018.

Some standout numbers:

• P/E Ratio: 28.18 – that’s above CBA’s, but supermarkets can warrant higher multiples due to their stable, recurring demand.
• Dividend yield: 3.41% (fully franked), a touch higher than CBA’s, and the dividend per share has shown steady growth since relisting.
• Market Cap: $30.75 billion – much smaller than CBA, but still a top-20 ASX company and a true blue-chip by any measure.
• Earnings per share: 0.812, in line with its sector and size.

Valuation comparison

Here’s how the two stack up on key metrics:

Metric	Commonwealth Bank	Coles Group
P/E Ratio	23.38	28.18
Dividend Yield	3.31% (100% franked)	3.41% (100% franked)
Market Cap	$251.64 billion	$30.75 billion
Dividend per Share	$5.05	$0.74
EPS	6.517	0.812

Both companies pay fully franked dividends, nice for after-tax income in retirement. Coles edges out CBA for current yield (3.41% vs 3.31%) but trades at a noticeably higher P/E ratio. Just note, as banking and supermarket stocks belong to very different sectors, their typical P/E ranges don’t always line up apples-for-apples – supermarkets are often seen as more consistent defensive earners.

Recent share price momentum

Comparing recent share price momentum up to 7 October 2026:

• CBA: Closed at $150.37, down 1.32% on the day. Year to date, the return sits at -2.0%, showing modest underperformance in 2026 so far.
• Coles: Closed at $22.88, flat on the day. Year to date, the return is 10.4% – Coles has delivered a solid positive run in 2026 to date.

So if you’re after recent price momentum, Coles has the edge.

Which is the better buy?

If I was making a large investment at 50 and wanted a reliable, lower-volatility cornerstone holding, I’d personally lean toward Commonwealth Bank of Australia. Its size gives it economic moat, its payout history oozes consistency (with strong franking), and its banking model has longer-term pricing power. While its dividend yield is slightly lower than Coles’, the payout per share is much higher and has grown considerably over decades.

Coles is no slouch – I really like the company for its dependable earnings, and its share price has outperformed CBA over the past year. But at a noticeably higher P/E ratio and with much slower historical dividend growth, I see CBA as a more attractive blend of yield, scale, and proven resilience, especially if income and peace of mind are top priorities in the run-up to retirement.

That said, if steady capital growth and lower bank sector exposure appeal more, Coles is by no means a bad alternative. But for a large, set-and-forget holding at age 50, my pick would be Commonwealth Bank.

The post CBA vs Coles shares: Which is the better buy at age 50? appeared first on The Motley Fool Australia.

More reading

• How many CBA shares do I need to buy for $10,000 of passive income?
• CSL vs CBA: Which ASX share is best for SMSFs?
• How much is needed in superannuation to target a $100,000 annual passive income?
• Wesfarmers vs Coles: Which dividend share is better for retirees?
• If I invest $8,000 in CBA shares, what passive income could I earn in FY27 and FY28?

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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. 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.

National Australia Bank Ltd (ASX: NAB) shares may be one of the most popular choices for passive income on the ASX.

As one of Australia’s largest banks, the business has strong economic power that many other companies don’t have. The size of the business and the strength of its balance sheet give the bank pleasing advantages.

Of course, generating strong profits means the bank can pay a good dividend to investors. But, after multiple RBA rate rises, what do experts think could happen with the NAB dividend in the year ahead?

Projection for owners of NAB shares

The bank’s 2026 financial year has just ended, with it being the financial period ending 30 September 2026. Although we haven’t seen the result yet, we can now look ahead to what may happen in the 2027 financial year.

According to the projection on CMC Invest, the ASX bank share is projected to pay an annual dividend per share of $1.70 in FY26 – that’s the year that has just gone.

But we want to look at the dividend payment that could happen for the financial year ahead.

Based on CMC Invest’s projection, the business is forecast to slightly increase its shareholder payout to $1.705 per share. That would represent a year-over-year increase of 0.3%, not much, but better than nothing.

At the time of writing and the current NAB share price, that works out to be a cash dividend yield of 4.4% excluding franking credits. If we include the franking credits as part of the potential passive income, then the grossed-up dividend yield becomes 6.3%.

What would a $15,000 investment in the ASX bank share do?

At the time of writing, if someone were to invest $15,000 into NAB shares, they’d be able to buy 390 shares.

With that investment in the ASX bank share, those shares could unlock $664.95 of dividend cash and $949.93 of grossed-up dividend income, including franking credits.

In my view, that’s a solid passive income payout to start with.

Is this a good time to invest in NAB shares?

Time will tell how the company performs in the 2026 financial year, but given expectations and the current economic environment, analysts are divided on the business.

According to CMC Invest, 10 analysts have rated the business in the last three months. Three of those rating calls were a buy, four were a hold, and three were a sell.

The average price target for those 10 ratings was $39.13, suggesting a slight rise over the coming year at the time of writing.

However, the most pessimistic price target is $29.08, implying (at the time of writing), a decline of 24% over the year ahead. Meanwhile, the most optimistic price target is $48.64, suggesting a possible rise of 26% over the next 12 months.

Time will tell whether analysts are right to be pessimistic or optimistic about the ASX bank share. But with NAB’s slow growth in mind, there are other ASX shares I’d concentrate on first.

The post If I invest $15,000 in NAB shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Xero vs Megaport shares: Which tech stock is right for a 20-year-old investor?

If you’re a young Aussie investor looking to pick up your next tech stock, Xero Ltd (ASX: XRO) and Megaport Ltd (ASX: MP1) are two homegrown names you might have your eye on. Both have built innovative platforms and attracted plenty of attention — but they couldn’t be more different under the hood. Here’s how their investment cases stack up.

The case for Xero

Xero is a New Zealand-based software company specialising in cloud-based accounting software for small to medium-sized businesses. Since launching in 2006, Xero has helped transform the way businesses manage their finances, jumping onto the software-as-a-service wave early and expanding its market presence globally. As of its company profile, Xero is recognised as a leader in cloud accounting, offering flexible, subscription-based plans designed for business owners.

When I look at Xero’s key numbers, a few things stand out. It sports a sizeable market cap of $9.57 billion, making it a heavyweight in the Aussie tech scene. The company’s P/E ratio sits at 49.87 — definitely on the higher end, but not unheard of for high-growth tech firms. It has reported earnings per share (EPS) of -0.158, which is in the red. Xero does not currently pay a dividend, which means all profits and cash flow are being reinvested back into the business.

Lastly, Xero’s share price has taken a solid step back this year, with a Year To Date (YTD) return of -51.1%. That’s a big fall and could make it look like a bargain to some, but it’s also a reminder that tech investing can be volatile, especially if growth expectations reset.

The case for Megaport

Megaport operates in a different corner of the tech world, focusing on network-as-a-service infrastructure. It provides a global platform that lets customers connect to more than 1,100 data centres in 31 countries, mostly to link into major cloud providers like AWS, Azure, and Google Cloud. Customers can spin up connections across continents in minutes, and Megaport has been hustling into new frontiers, such as the AI compute infrastructure space (according to its most recent public description, via its 2025 acquisition of Latitude.sh).

Fundamentally, Megaport’s market cap is $5.01 billion, so while it’s no minnow, it’s notably smaller than Xero. Its reported P/E ratio is a whopping 370.00, which would normally make my eyes water — but its EPS is also negative (-0.218), so there’s a clear disconnect here. Megaport hasn’t paid a dividend either, and for a company still likely prioritising market growth and new ventures, that’s no surprise. However, what really jumps out is its YTD return: up 78.7%. That’s the kind of meteoric rise that puts a lot of eyes (and speculation) on a stock.

Valuation comparison

There are a handful of metrics we can line up directly:

Metric	Xero	Megaport
Market Cap	$9.57 billion	$5.01 billion
P/E Ratio	49.87	370.00
Dividend Yield	0.00%	0.00%
EPS	-0.158	-0.218
YTD Return	-51.1%	78.7%

Both companies are unprofitable on a trailing basis (negative EPS), yet Xero’s P/E is at least tied to rapid revenue growth expectations, while Megaport’s eye-watering P/E suggests enthusiasm around its growth story — or perhaps a stretch in valuation. Note: Megaport’s reported P/E ratio may be based on a different earnings measure (e.g. underlying or forward earnings) than the EPS figure shown, which is why they may appear inconsistent.

No dividends are currently offered by either stock, so this is firmly a growth play either way.

Recent share price momentum

Comparing recent share price performance up to 7 October:

• Xero closed at $56.10 on 7 Oct 2026, posting a small gain of 0.7% for the day, but its YTD return sits at -51.1% — a big comedown.
• Megaport finished at $21.07 on the same date, up 0.29% for the session, and boasts a 78.7% YTD gain — a rocket year-to-date.

Which is the better buy?

If I were 20 and weighing up where to invest next, my pick would be Megaport. Here’s why: the company is delivering massive price momentum, has tapped into surging demand for cloud connectivity, and its recent move into AI infrastructure is the sort of “future-facing” pivot that could pay off over time. Yes, the P/E ratio appears sky high and the company still runs at a loss (as does Xero), but the market clearly has faith in Megaport’s growth runway right now.

Xero is a quality business with a strong competitive position and larger scale, but its negative YTD return and lack of short-term momentum make it less exciting for a young investor looking for the next wave. Both stocks carry the risks typical for high-growth, unprofitable tech names, and neither pays a dividend — but for me, Megaport’s innovation and year-to-date surge give it the edge for those keen on growth and disruption. Just don’t bet more than you’re prepared to see fluctuate — the excitement factor cuts both ways.

The post Xero vs Megaport: Which ASX tech stock suits young investors better? appeared first on The Motley Fool Australia.

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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 Megaport and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. 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.

Commonwealth Bank of Australia (ASX: CBA) has long been one of the most popular dividend shares on the ASX.

And with its enormous customer base, strong profitability, and history of returning billions of dollars to shareholders, it isn’t hard to see why.

But how much would you need invested in Australia’s largest bank to generate $10,000 in annual passive income? Let’s take a look.

Why CBA remains popular

When Australians think about dividend shares, CBA is usually one of the first names that comes to mind.

And for good reason. The banking giant has a long history of paying shareholders twice a year, with fully franked dividends that can provide a valuable source of passive income.

But a good dividend history is only part of the story.

What investors like about CBA is its ability to generate billions of dollars in annual profits, giving management plenty of capacity to reward shareholders while retaining enough capital to support the business.

And if those profits continue growing over time, there should be opportunities for dividends to increase as well.

Of course, there are no guarantees. A weaker economy, rising bad debts, or pressure on lending margins could weigh on earnings and dividends.

Nevertheless, CBA arguably has a lot going for it as a long-term income investment, even if its dividend yield isn’t among the highest on the ASX.

So, how much passive income could its shares generate over the next 12 months?

How many CBA shares would you need?

There’s no getting away from the fact that generating $10,000 in annual passive income from CBA shares would require a sizeable investment.

After all, while CBA has a strong dividend history, its shares aren’t offering a particularly high yield at current prices.

Based on its current share price of $149.29 and the consensus FY 2027 fully franked dividend forecast of $5.15 per share, investors are looking at a forward yield of approximately 3.45%.

That means an investor would need to own around 1,942 CBA shares to generate $10,000 in annual passive income, before considering any additional benefits from franking credits.

Buying that many shares today would cost approximately $289,921.

Could the passive income grow?

Looking further ahead, consensus estimates forecast CBA’s earnings and dividends to increase in FY 2028.

The market is forecasting earnings per share of $6.86, which will be up from $6.67 in FY 2027.

This is expected to support an increase in annual dividends to $5.30 per share.

For someone holding 1,942 shares, that would lift annual passive income to approximately $10,293 in FY 2028.

These are only forecasts and actual dividends will depend on CBA’s financial performance and economic conditions. But with its strong market position and history of returning profits to shareholders, CBA arguably remains one of the first ASX shares worth looking at when building a passive income portfolio.

The post How many CBA shares do I need to buy for $10,000 of passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.