Category: Stock Market

Markets have swung sharply over the last two days as military conflict involving the United States, Israel and Iran has intensified. 

The S&P/ASX 200 Index (ASX: XJO) has fallen 3.2% so far this week while the S&P 500 Index (SP: .INX) has fallen 1%. 

Yesterday was somewhat of a bloodbath for the ASX 200 which dropped 1.94%, marking for one of the worst single day drops in months. 

A new report from Global X has shed light on the sectors and subsequent ASX ETFs that investors have been flocking to amidst this heavy volatility.

Investors push further into safe-haven assets 

Gold shares have continued to be a top pick for investors, following on from last year’s momentum.

Gold climbed 2% higher on Wednesday and now sits almost 78% higher than 12 months ago. 

Safe-haven assets typically maintain value even during economic uncertainty, so investors often flock to them when financial markets become volatile.

According to Global X, despite a two year rally for gold, the pace is not unprecedented. 

In 2024-26, we have observed a very constructive environment for gold, with significant geopolitical volatility, falling interest rates, a poorer economic outlook and an increasing narrative around de-dollarisation. 

The recent market volatility triggered by AI disruption in software, combined with the fresh risk of an energy shock and inflationary pressures stemming from US and Israel’s attack on Iran, have added on top of that bullish environment new developments which look strikingly similar to the late 70s rally and may be the final tipping point that potentially triggers a gold supercycle in which there is sustained, strong outperformance.

Global X said in the short term, it believes markets are underpricing the risk of a dragged-out, sustained conflict in Iran, which could translate to persistently high energy prices that lead to stickier and hotter inflation and, in turn, complicate the rate path for the Federal Reserve and risk an economic downturn.

Defence and Energy also worth monitoring

Global X also reinforced that the world is increasingly operating in a Cold War framework, with sustained military modernisation across the US, Europe and parts of Asia. 

Spending is also shifting toward defence technology, including missile systems, drones, cyber and AI-enabled capability. That creates a multi-year tailwind that is less cyclical and more policy-driven than traditional industrial demand.

Additionally, energy sits at the centre of this escalation because the Middle East remains critical to global supply and Asia remains structurally dependent on Gulf flows.

It said structurally this reinforces the case for energy security, LNG infrastructure and diversified supply.

How do investors access these themes?

For investors looking for exposure to gold, some ASX ETFs to consider include: 

• Global X Physical Gold Structured (ASX:GOLD) – Mirrors the growth in the Australian dollar gold price. 
• BetaShares Global Gold Miners ETF – Currency Hedged (ASX: MNRS) – Targets largest global gold mining companies (ex-Australia).

Energy focussed ASX ETFs to consider include: 

• The Global X Bloomberg Commodity Complex ETF (ASX: BCOM)
• BetaShares Global Energy Companies ETF – Currency Hedged (ASX: FUEL)

For defence focussed ASX ETFs: 

• The Global X Defence Tech ETF (ASX: DTEC)
• Betashares Global Defence ETF – Beta Global Defence ETF (ASX: ARMR)
• Vaneck Global Defence Etf (ASX: DFND). 

Foolish takeaway 

It’s important to point out that despite investors pushing into these themes, there is no guarantee these sectors will rise as a direct result of current conflicts. 

Predicting how markets respond to global conflict is inherently uncertain, and short-term sector moves are often driven by sentiment as much as fundamentals. 

While capital may rotate into perceived “beneficiaries,” there is no guarantee those trends will persist once conditions stabilise or new information emerges.

The post Which ASX ETFs are investors flocking to amidst volatility? appeared first on The Motley Fool Australia.

More reading

• 3 of the best ASX ETFs to buy in March
• What is the best global defence ASX ETF?
• 5 fantastic ASX ETFs to buy and hold for 10 years
• 3 top ASX ETFs that avoid the tech wreck
• I think these 2 exotic ASX ETFs are a buy in 2026

Motley Fool contributor Aaron Bell 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.

Commodity markets can turn quickly.

Twelve months ago, lithium was firmly out of favour. Prices had been falling, sentiment toward lithium miners was weak, and many analysts were warning that supply could outpace demand in the medium term.

That backdrop weighed heavily on shares of PLS Group Ltd (ASX: PLS). Around this time last year, investors could buy the lithium miner’s shares for about $1.89 each.

But the story didn’t end there.

Lithium sentiment turned around

Over the past year, lithium prices have rebounded strongly as expectations around electric vehicle demand, battery storage, and energy transition projects improved.

That shift in commodity prices has had a major impact on lithium producers.

Higher realised lithium prices flow directly into revenue and margins for producers such as PLS. In its latest results, the company reported an average realised price of US$965 per tonne, which was 40% higher than the prior corresponding period.

The improvement in pricing, combined with solid production and operational discipline, helped drive a sharp turnaround in earnings.

Revenue for the half rose 47% to $624 million, while underlying EBITDA jumped 241% to $253 million, with margins expanding significantly.

Those kinds of improvements tend to get the market’s attention.

Scale and low costs matter

Other reasons the market has warmed to PLS shares again are its scale, asset quality, and low costs.

The company owns the Pilgangoora operation in Western Australia, which is the world’s largest independent hard-rock lithium project. Large, low-cost assets like this can remain profitable even during weaker commodity cycles.

Operationally, PLS also lifted production during the period. The company produced 432.8 thousand tonnes of spodumene concentrate in the first half, up about 6% on the prior period.

At the same time, unit operating costs declined thanks to improved efficiencies and higher sales volumes.

In other words, the business was performing better just as lithium prices were recovering. That combination helped drive renewed confidence among investors.

So, would 1,000 PLS shares have made money?

Now for the answer.

If I had bought 1,000 PLS shares at $1.89 a year ago, the initial investment would have been $1,890.

Today, with PLS shares trading at $4.74, those same 1,000 shares would be worth $4,740.

That’s a gain of $2,850, or roughly 151% over the past year.

Foolish takeaway

Lithium shares can be incredibly volatile. When sentiment turns negative, prices can fall sharply. But the reverse is also true.

Over the past year, improving lithium prices, strong operational execution, and renewed optimism around battery demand have helped PLS shares rebound strongly.

For investors who bought when lithium was deeply out of favour, the rewards have been significant.

The post If I’d bought 1,000 PLS shares a year ago, would I have made money? appeared first on The Motley Fool Australia.

More reading

• $5,000 to invest? Here’s how I’d split it across the ASX
• 5 of the best ASX 200 stocks to buy and hold in February revealed
• The PLS Group share price has soared 150% in a year. Is it still a buy in March?
• ASX 200 materials sector leads as earnings season ends with a record high
• These ASX 200 shares jumped 15% or more in February

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

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a day to forget and sank deep into the red. The benchmark index fell 1.95% to 8,901.2 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 set to rebound

The Australian share market looks set for a much better session on Thursday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 88 points or 1% higher this morning. In late trade in the United States, the Dow Jones is up 0.65%, the S&P 500 is up 1% and the Nasdaq is up 1.55%.

BHP shares go ex-dividend

BHP Group Ltd (ASX: BHP) shares are going ex-dividend on Thursday and are likely to trade lower. Last month, the mining giant released its half-year results and revealed an interim dividend of US$3.7 billion or 73 US cents per share. Eligible shareholders can now look forward to pay day later this month on 26 March. Also going ex-dividend are Rio Tinto Ltd (ASX: RIO) and Woodside Energy Group Ltd (ASX: WDS) shares for their latest payouts.

Oil prices mixed

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch on Thursday after oil prices traded mixed overnight. According to Bloomberg, the WTI crude oil price is up slightly to US$74.56 a barrel and the Brent crude oil price is down 0.1% to US$81.30 a barrel. Traders may have been taking profit after some strong gains this month.

Buy Endeavour shares

Endeavour Group Ltd (ASX: EDV) shares are a buy according to analysts at Bell Potter. This morning, the broker has retained its buy rating on the drinks giant’s shares with an improved price target of $4.15. It commented: “Although the outlook for consumer spending has weakened, we believe market expectations are low for the company’s strategic refresh, leaving greater room for upside potential.”

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session on Thursday after the gold price pushed higher overnight. According to CNBC, the gold futures price is up 0.4% to US$5,145.3 an ounce. This was driven by the war in the Middle East and increased demand for safe haven assets.

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

More reading

• Superloop surges past 250,000 Origin connections, triggers next milestone
• 5 Australian stocks to buy and hold for the next 5 years
• Are Endeavour Group shares a buy after its earnings results crash?
• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy today

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

ASX industrials stock GenusPlus Group Ltd (ASX: GNP) has been among the best shares to own over the past year.

The company is a service provider to mining, utilities and other private customers who have needs across electrical plant and equipment, power, and telecommunications infrastructure.

Its share price has almost risen 200% in the last year. 

This includes a 32.26% increase for the year to date. 

Key acquisition 

This ASX industrials stock was making headlines yesterday after it announced it had entered into an agreement to acquire 100% of Railtrain Holdings Pty Ltd (Railtrain).

The deal is for a total consideration of up to $55.0m. 

According to the release from GenusPlus Group, it was a highly logical acquisition that bolsters Genus’ existing MGC rail business. It will add critical scale, diversification and national presence, as well as expanding service capabilities in the rail sector. 

Speaking on the acquisition, Genus Managing Director, David Riches, said: 

I am pleased to announce the signing of binding documentation for our acquisition of Railtrain which is another step forward in our strategy to expand into the rail infrastructure sector. Railtrain is a highly logical acquisition which will add critical scale, and expands the geographical and service capability of our existing MGC rail business.

The transaction is expected to be completed by the end of March 2026.

Bell Potter weighs in

Following the announcement, Bell Potter released a new report with updated guidance on the ASX industrials stock. 

It said Railtrain is a diversified rail service provider, with capabilities including overhead wiring solutions, rail maintenance and construction, track protection services, rail signalling and electrical and rail surveying. 

Railtrain has a national footprint with approximately 300 staff across offices and depots in three states.

EPS changes reflect Railtrain acquisition accretion over FY26-28: +1%/+7%/+6%.

The broker said it is particularly pleased to see an attractive acquisition multiple of 2.75x EBITDA (assuming all earn-out hurdles are satisfied), which implyies significant valuation arbitrage against the company’s pre-acquisition FY26 multiple of 14.3x). Bell Potter also drew attention to an enhanced EBITDA margin outlook as well as immediate earnings accretion.

Price target upgrade

In yesterday’s report, Bell Potter retained its buy recommendation on this ASX industrials stock. 

The broker also increased its price target to $9.50 (previously $9.00). 

From yesterday’s closing price of $8.20, this indicates an upside of almost 16%. 

GNP is making another great acquisition, solidifying its track record for delivering a highly accretive M&A strategy, and complementing its strong organic growth.

The post Bell Potter lists this ASX industrials stock as a buy after key acquisition appeared first on The Motley Fool Australia.

More reading

• Why EOS, GenusPlus, Life360, and WIA Gold shares are rising today
• Experts rate this ASX share as a buy!

Motley Fool contributor Aaron Bell 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 GenusPlus Group. The Motley Fool Australia has recommended GenusPlus Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Life360 Inc (ASX: 360) shares crashed 18% on Tuesday and remained relatively flat, rising just 0.1% over the course of the day on Wednesday. 

On Wednesday, the stock closed at $20.38 a piece. This means Life360 shares are now down 24.35% over the past month, have dived 37.22% for the year-to-date, and have shed 63.24% since soaring to an all-time high of $55.87 in October last year.

Life360 shares are currently sitting 9.1% below where they were last year.

The latest price crash is significant and some investors are shaken.

The question is, is there more to come? Or has this week’s nosedive created a once-in-a-lifetime buying opportunity to get the stock at an incredibly cheap price.

What happened to Life360 shares?

The US-based software development company posted its FY25 financial results on Tuesday morning, ahead of the market open. Life360 delivered record growth in both its subscription and international segments, by 33% and 26% year-on-year respectively. 

Operating expenses increased by 26%, but fell as a percentage of revenue, highlighting management’s focus on efficiency as the business grows. 

Life360 also said that it expects strong growth to continue in FY26, guiding for global MAU growth of 20%, revenue between US$640 million and US$680 million (up 31–39%) and a 25% increase in subscription revenue.

Management also flagged that earnings will be weighted more heavily to the second half of the year due to investment and seasonality. 

The news saw investors flock to the stock, with the share price spiking 15% in early morning trade. But then the share price took a significant u-turn. 

The S&P/ASX All Technology Index (ASX: XTX) has also been in a sea of red this week after conflict in the Middle East smashed Australian shares across multiple sectors. 

Is this a once-in-a-lifetime buying opportunity for investors?

Analysts seem to think so.

TradingView data shows that most analysts are incredibly bullish on the outlook for Life360 shares over the next 12 months. 

Out of 15 analysts, 12 have a buy or strong buy rating and two have a hold rating on the stock. But they are unanimous in that all of them expect attractive upside ahead.

The average target price for Life360 shares is $39.79, which implies a huge potential 95.24% upside at the time of writing.

But some are even more bullish, expecting the stock to rocket nearly 150% to $50.73 apiece over the next 12 months.

The team at Bell Potter recently confirmed its buy rating on Life360’s shares with a slightly trimmed price target of $40.00 (from $41.50). The broker said it couldn’t explain this week’s share price weakness but added that it appears to be an opportunity for investors to load up on the company’s shares.

If these potential upsides are anything to go by, at their current share price, Life360 shares are a one-of-a-kind opportunity for investors who want to strap into the growth stock for cheap, ahead of the next rocket launch. 

The post Life360 shares crashed 18% this week: Is this a once-in-a-lifetime buying opportunity? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• Why EOS, GenusPlus, Life360, and WIA Gold shares are rising today
• 3 ASX growth shares you’ll wish you’d bought at these cheap prices
• Why Life360 shares could rise 100%
• 5 things to watch on the ASX 200 on Wednesday

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 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.

Now could be an opportune time to buy the ASX dividend stocks in this article.

That’s because according to analysts at Morgans, these stocks could be destined to rise strongly from current levels.

And before they do, it is urging income investors to lock in their forecast dividend yields now. It said:

Accent Group Ltd (ASX: AX1)

This footwear-focused retailer is going through a tough period, but Morgans thinks it is worth sticking with it. This is especially the case given its cheap valuation and positive medium term outlook. It said:

AX1 reported 1H26 EBIT which was down 30% yoy to $56.5m, in line with the revised guidance range provided in November ($55-60m). The decline was driven by soft comp sales and significant operating de-leverage from lower gross margins. AX1 has made the unsurprising decision to cease operations of loss-making Glue store, which contributed $8.4m EBIT loss in 1H26. On an underlying basis, EBIT fell 10%. We see this providing incremental benefit on group earnings in FY27. We have increased our EBIT by 1.5% in FY26 and by 11% in FY27.

Our blended valuation lifts to $1.30 (from $1.10). We have upgraded to a BUY (from HOLD). We see significant earnings growth in FY27, driven by underlying FY26 run-rate (ex-Glue), this makes the stock look inexpensive at ~10x FY27 P/E and ~5.6% yield.

Morgans is forecasting fully franked dividends of 4.3 cents per share in FY 2026 and then 6.3 cents per share in FY 2027. Based on its current share price of $1.00, this would mean dividend yields of 4.3% and 6.3%, respectively.

As mentioned above, it has a buy rating and $1.30 price target on the ASX dividend stock. This implies potential upside of 30% over the next 12 months.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend stock that Morgans is tipping as a buy is youth fashion retailer Universal Store.

It was impressed with its performance in the first half and positive start to the second half. It said:

UNI reported a strong 1H26 result which was ahead of expectations. Sales were up 14.2% to $209.6m and EBIT grew by 23.2% to $43.6m, EBIT margin up 150bps. The strong sales momentum has continued into the first 7 weeks of the 2H, despite the challenging comps (+20%). UNI has consistently delivered through a challenging retail environment, +7.9% LFL sales CAGR over the last 6 years.

With respect to income, the broker has pencilled in fully franked dividends of 41 cents per share in FY 2026 and then 46 cents per share in FY 2027. Based on its current share price of $8.05, this would mean dividend yields of 5.1% and 5.7%, respectively.

Morgans has a buy rating and $10.60 price target on its shares. This suggests that upside of 32% is possible from current levels.

The post Grab these ASX dividend stocks now, before their prices rise and yields drop appeared first on The Motley Fool Australia.

More reading

• 3 top ASX dividend shares to buy in March
• Morgans just upgraded these ASX shares to buy ratings
• Why Accent Group, DroneShield, IDP Education, and Sigma shares are jumping today
• 3 ASX dividend shares I would buy with $3,000
• Why this ASX 300 stock is jumping 20% on Wednesday

Motley Fool contributor James Mickleboro has positions in Accent Group and Universal Store. 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 Accent Group and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Endeavour Group Ltd (ASX: EDV) shares are in focus after the stock price dipped 3.5% yesterday amidst a rough day of trading on the ASX. 

The company is an Australian hospitality and retail company, operating the nation’s largest retail drinks network through its Dan Murphy’s and BWS brands. 

This is alongside a portfolio of licensed hotels managed by its wholly owned subsidiary, ALH Hotel. 

Endeavour Group snapshot 

Before this week, Endeavour Group shares had been rising quickly to start the year. 

The share price closed last week 9% higher than the start of 2026. 

However it has now endured two rough days of trading, falling more than 5% over Tuesday and Wednesday.

This fall has come on the back of H1 FY26 results.

The company reported:

• Group sales of $6.7 billion, a 0.9% increase on the prior corresponding period
• A 6.7% decline in underlying net profit after tax to $278 million
• 17.1% decline in statutory net profit after tax to $247 million
• A fully franked interim dividend cut by 13.6% to 10.8 cents per share.

Managing Director and CEO Jayne Hrdlicka said:

In a challenging market, our increased focus on value and price leadership has been embraced by our customers and is delivering both sales growth and market share gains. Our Hotels business continues to improve its performance, supported by positive trends in food and bar transactions and growth in gaming revenue driven by targeted investment in refurbishments and new EGMs.

Bell Potter weighs in

Following the release of its results, broker Bell Potter released updated guidance on Endeavour Group shares. 

The broker retained its buy rating and raised its target price on lower net debt. 

Although the outlook for consumer spending has weakened, we believe market expectations are low for the company’s strategic refresh, leaving greater room for upside potential. We see opportunity for consensus upgrades: a reinforcement in Dan Murphy’s lowest price perception; and cost-out opportunities.

The report also included changes to EBIT by 0%, -3%, and -4% over FY26, FY27, and FY28e, respectively, reflecting tempered retail gross margins and sales, higher capex and depreciation and amortisation, and lower One Endeavour operating expenses.

Modest upside for Endeavour Group shares

This week’s share price dip has created some potential for returns. 

Endeavour Group shares closed yesterday at $3.84 after consecutive falls across Monday and Tuesday. 

Bell Potter’s upgraded price target of $4.15 (previously $4.00) indicates an upside of approximately 8%. 

The post Are Endeavour Group shares a buy after its earnings results crash? appeared first on The Motley Fool Australia.

More reading

• Why Brightstar, Endeavour, Evolution Mining, and Woolworths shares are falling today
• Dan Murphy’s owner Endeavour tumbles on results day
• Endeavour Group earnings: NPAT drops as sales rise; interim dividend declared

Motley Fool contributor Aaron Bell 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.

Real estate investment trusts (REIT) have been one sector of the market that have fallen short of expectations so far in 2026. 

In fact, the S&P/ASX 200 A-REIT (ASX: XPJ) index is down 11% year to date. 

For comparison, the S&P/ASX 200 Index (ASX: XJO) is up roughly 2% in that same period.

What’s the benefit of ASX REITs?

For those unfamiliar, ASX REITs have long been a popular investment option. 

Put simply, an REIT is a company that owns and operates property assets that typically produce income.

This can be anything from retirement homes or apartments, to office blocks or petrol stations.

Australian investors generally target ASX REITs because they have historically provided reliable, income-focused returns through mandatory high dividend distributions. 

Additionally, it offers exposure to commercial property without directly owning real estate which can lead to capital growth tied to Australia’s property market.

They also provide portfolio diversification. 

That’s because REITs are primarily influenced by factors such as interest rates, property valuations, rental income, occupancy rates, and economic conditions affecting commercial or residential real estate. 

Meanwhile, sectors like mining are driven by commodity prices and global demand, and tech stocks are more influenced by innovation cycles, growth expectations, and risk sentiment.

This means the REIT market might move differently to these other sectors like mining or tech.

Morgans lists ASX REIT as a buy

Amidst poor performance from the broader sector, the team at Morgans has identified Waypoint REIT Ltd (ASX: WPR) as a potential REIT to watch. 

The company owns a $3 billion portfolio of service station properties across all Australian states and mainland territories.

The vast majority of the company’s rental income comes from the ASX-listed Viva Energy Group Ltd (ASX: VEA) which owns, operates, and supplies fuel to the Shell and Liberty service station brands in Australia.

It released FY25 results at the end of February. 

The broker said the company’s FY25 result was in line with guidance while FY26 guidance was ahead. 

Waypoint REIT (WPR) delivered a solid FY25 result with FFO of 16.64c, in-line with upgraded guidance and FY26 outlook modestly ahead of expectations. 

The portfolio continues to perform as a yield-focused vehicle, with limited near-term execution risk following the renewal of the majority of FY26 lease expiries with key tenant Viva Energy (VEA), securing ~12% rental uplift.

Upgraded outlook

Based on this guidance, Morgans upgraded the REIT to an accumulate rating (previously hold).

The broker also upgraded its price target to $2.75 (previously $2.70).

From yesterday’s closing price of $2.51, this indicates an upside of 9.56%.

WPR trades at ~13% discount to NTA ($2.90) and offers a ~7% FY26F distribution yield.

The post An exciting REIT for real estate investors to add to their watchlist appeared first on The Motley Fool Australia.

More reading

• Grab these ASX dividend stocks now, before their prices rise and yields drop
• Are Endeavour Group shares a buy after its earnings results crash?
• How much would I need to invest in ASX shares for a retirement income of $100,000 per year?
• 3 of the best ASX ETFs to buy in March
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Aaron Bell 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.

When people talk about retirement, they usually focus on the lump sum.

But I think the better question is this: How much income do you actually want each year?

Retirement income planning

According to the ASFA Retirement Standard, a comfortable retirement lifestyle for a single costs $54,840 per year, and for a couple $77,375 per year. That covers things like private health insurance, occasional dining out, domestic travel, and staying socially active.

But what if you want more than comfortable? What if you want $100,000 per year from your ASX share portfolio?

That’s a different level altogether.

The simple maths behind income investing

If you’re investing for income, the key variable is the dividend yield.

Let’s start with a relatively conservative assumption: a 4% dividend yield. That’s achievable with a balanced portfolio of quality ASX dividend shares such as banks like Commonwealth Bank of Australia (ASX: CBA), infrastructure names like Transurban Group (ASX: TCL), supermarkets like Woolworths Group Ltd (ASX: WOW), and some higher-yield exchange-traded funds (ETFs).

Here’s the simple formula:

Required capital = Desired income ÷ Dividend yield

So for $100,000 per year at a 4% yield:

$100,000 ÷ 4% = $2.5 million

That means you’d need approximately $2.5 million invested in ASX shares yielding 4% to generate $100,000 per year in dividends.

And that’s before franking credits, which could lift the effective after-tax income depending on your tax situation.

What if you aimed for a 5% yield?

Some investors may target a 5% dividend yield instead. At 5%, the capital required drops meaningfully:

$100,000 ÷ 5% = $2 million

That’s a $500,000 difference. On paper, that sounds appealing. But I think it’s important to acknowledge the trade-off.

Higher yields often come with higher risk. Sometimes that means greater share price volatility. Other times, it means exposure to cyclical sectors. And occasionally, it means stepping into potential yield traps where dividends aren’t sustainable.

A well-constructed 5% portfolio is certainly possible. But it generally requires more careful stock selection and a stronger stomach during market downturns.

The role of growth

One thing I always remind readers is that dividend income doesn’t have to be static.

If your portfolio grows over time and companies increase their dividends, the income stream can rise. A 4% yield today might not be 4% on your original capital in ten years’ time if dividends have grown steadily.

That’s why I’m less focused on squeezing out the absolute highest yield and more focused on durability.

So how much would I need?

If I wanted $100,000 per year purely from ASX dividend shares, I would work on the assumption that I need around $2.5 million invested at a sustainable 4% yield.

If I were comfortable targeting closer to 5%, I could potentially do it with around $2 million, but I would accept the additional risk that comes with that approach.

Either way, the numbers are significant.

But they’re also clear. And once you know the target, you can reverse-engineer the plan required to get there.

Foolish Takeaway

A $100,000 annual retirement income from ASX shares is absolutely achievable. It just requires scale.

At a 4% dividend yield, you’re looking at roughly $2.5 million invested. At 5%, closer to $2 million, though with greater risk.

For me, the key isn’t chasing the highest yield. It’s building a portfolio of quality ASX shares that can pay reliable income year after year and grow that income over time.

The post How much would I need to invest in ASX shares for a retirement income of $100,000 per year? appeared first on The Motley Fool Australia.

More reading

• 3 of the best ASX ETFs to buy in March
• Here are the top 10 ASX 200 shares today
• Morgans names 3 ASX shares to buy in March
• 2 ASX 200 shares I rate as top buys for growth
• 2 ASX 200 shares that turned a $5,000 investment into $10 million

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group and Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

March could be a good time for investors to reassess their portfolios.

Recent market volatility has created opportunities in certain sectors, while long-term structural trends continue to support others. Exchange traded funds (ETFs) offer a simple way to gain exposure to these opportunities without needing to pick individual winners.

Here are three of the best ASX ETFs to consider buying this month.

Betashares Global Defence ETF (ASX: ARMR)

The first ASX ETF to consider in March is the Betashares Global Defence ETF.

This fund focuses on companies involved in global defence and security, an area experiencing powerful structural tailwinds. Governments around the world are increasing defence budgets in response to rising geopolitical tensions and long-term security challenges.

The Betashares Global Defence ETF holds major defence contractors such as Lockheed Martin (NYSE: LMT), RTX Corporation (NYSE: RTX), Palantir Technologies Inc (NASDAQ: PLTR), and Northrop Grumman (NYSE: NOC). It also includes locally listed DroneShield Ltd (ASX: DRO).

These companies benefit from multi-year government contracts and sustained investment in military technology.

Unlike many sectors that are tied closely to economic cycles, defence spending is often driven by national security priorities. That creates a long-term demand backdrop that could support earnings growth across the industry.

This fund was recently recommended by analysts at Betashares.

Betashares Nasdaq 100 ETF (ASX: NDQ)

Another ASX ETF worth considering in March is the Betashares Nasdaq 100 ETF.

This fund tracks the Nasdaq 100 index, which includes many of the world’s most influential technology and innovation-driven companies. However, the tech sector has recently experienced a selloff amid concerns about artificial intelligence (AI) disrupting parts of the software industry.

For long-term investors, that weakness may present an opportunity. The fund’s holdings include companies such as Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT), as well as globally recognised brands like Starbucks (NASDAQ: SBUX) and Costco (NASDAQ: COST).

These companies are deeply embedded in global digital infrastructure, consumer platforms, and emerging technologies. If the Nasdaq stabilises, this fund could benefit from renewed investor confidence.

VanEck China New Economy ETF (ASX: CNEW)

A final ASX ETF to consider this month is the VanEck China New Economy ETF.

This fund focuses on China’s new economy sectors rather than traditional state-owned industries.

China’s economy is undergoing a long-term transition toward technology, consumer services, and advanced manufacturing. ETFs like this provide exposure to that shift, giving investors access to businesses positioned to benefit from evolving domestic demand and technological innovation.

It was recently recommended by analysts at VanEck.

The post 3 of the best ASX ETFs to buy in March appeared first on The Motley Fool Australia.

More reading

• What is the best global defence ASX ETF?
• New to investing: 3 ASX ETFs to set and forget until 2036
• How to build a $250,000 ASX share portfolio from scratch today
• 5 fantastic ASX ETFs to buy and hold for 10 years
• New to the share market? Here are 3 ASX ETFs to buy for easy investing

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, Costco Wholesale, DroneShield, Microsoft, Nvidia, Palantir Technologies, RTX, and Starbucks and is short shares of BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lockheed Martin. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, and Starbucks. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.