Category: Stock Market

The James Hardie Industries Plc (ASX: JHX) share price is in focus today after the building products group posted full-year net sales of US$4.84 billion, up 25%, while net profit fell sharply year-on-year.

What did James Hardie report?

• Full-year net sales: US$4.84 billion, up 25% (Q4: US$1.40 billion, up 45%)
• Net profit after tax: US$104.0 million, down 75%
• Adjusted EBITDA: US$1.27 billion, up 17% year on year
• Adjusted EBITDA margin: 26.2% (down from 27.8%)
• Organic net sales: down 2% in FY26 (excluding AZEK acquisition)
• No dividend declared or paid for the year

What else do investors need to know?

James Hardie completed its largest-ever acquisition with the purchase of AZEK on 1 July 2025. The company reported that integration is progressing well, delivering both cost and commercial synergies ahead of schedule. Cost savings from facility closures and operational initiatives were highlighted, with $25 million in annualised savings expected to begin from FY27.

Australian and New Zealand operations delivered steady results, with local currency sales holding firm and EBITDA margins remaining in the mid-30% range. European sales also grew despite challenging economic conditions, buoyed by fibre gypsum products and resilience in key markets.

Across the group, market softness—particularly in North America—affected organic growth, especially in the core Siding & Trim division, but the contribution from AZEK and disciplined cost management supported improved profitability.

What’s next for James Hardie?

For FY27, James Hardie expects pro forma Adjusted EBITDA growth of 4% to 8%, with positive organic sales growth anticipated in the Siding & Trim division. The company is targeting free cash flow of at least US$500 million, an increase of over US$200 million year on year.

Management says synergy realisation and operational discipline remain key, while no material recovery in end markets is assumed in company guidance. With channel inventories now normalised, James Hardie expects to benefit from improved pricing, product mix, and cost leverage.

James Hardie share price snapshot

Over the past year, James Hardie shares have declined 30%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post James Hardie earnings: FY26 profit drops as sales lift 25% 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 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 summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Small-cap investing is rarely smooth.

One month, the market is excited about scale, growth, and opportunity. The next, investors are worrying about dilution, capital raises, and whether management is moving too quickly.

That seems to be the current debate around Stealth Group Holdings Ltd (ASX: SGI).

The ASX small cap has had a wild few months. After reaching all-time highs in January 2026, Stealth shares are now down around 30% from that peak. Yet the share price has also rebounded more than 40% in May alone.

That kind of volatility can be uncomfortable. But it is also fairly stereotypical of smaller-listed companies, particularly those trying to grow quickly through acquisitions and operating leverage.

So, after the pullback and rebound, is Stealth still one of the more interesting ASX small caps to watch?

What does Stealth Group do?

Stealth is a diversified distribution company that supplies products and solutions to businesses, trade customers, and retail consumers across Australia.

It operates across two main divisions: hardware and industrial distribution, and consumer products.

That means the business sits in several practical end markets at once. It supplies hardware, safety, industrial, maintenance, repair, and operations products, while also distributing consumer products and technology accessories through retail channels.

Following its acquisition of Hardware and Building Traders (HBT), Stealth has become a much larger business. HBT added around 1,165 independent stores, approximately $700 million in annual member purchases, and roughly 490 supplier relationships.

The deal also helped position Stealth as a major independent alternative in the hardware and industrial supply market.

That is the strategic attraction here.

Stealth is not trying to reinvent the wheel. It is trying to build scale in fragmented markets, use that scale to improve procurement power, expand exclusive and private-label brands, and drive better margins across a larger platform.

The latest result showed real progress

Stealth’s half-year result was strong on the surface.

For the first half of FY26, the company reported gross sales of $82.2 million, up 11.8%. Revenue came in at $72 million, while operating earnings (EBITDA) rose 18.8% to $5.3 million.

Net profit after tax (NPAT) increased 51.4% to $1.6 million.

That is the kind of operating leverage investors like to see. A modest increase in revenue produced a much stronger jump in profit, suggesting the business is beginning to scale.

However, the per-share result tells a more complicated story.

Stealth issued a significant number of shares to help fund the HBT acquisition. That increased the share count materially, meaning existing shareholders absorbed dilution immediately, while the full earnings benefit of HBT will take longer to appear.

This is one of the central tensions in the investment case.

On the one hand, acquisitions can accelerate growth. On the other hand, they can dilute existing shareholders if the new earnings do not arrive quickly enough.

The balance of risk and reward

There are a few clear risks to watch.

The first is dilution. The recent notice of an extraordinary general meeting may have unsettled some investors, particularly the resolution seeking to refresh the company’s 15% placement capacity. That does not guarantee another capital raise, but it does remind shareholders that acquisitions and growth funding can come at a cost.

The second risk is execution. Integrating HBT, capturing synergies, expanding private-label brands, and improving margins all sound attractive. But each requires disciplined management.

The third is valuation. Even after falling from its highs, Stealth is no longer an overlooked microcap trading on sleepy expectations. Investors now expect growth.

Foolish Takeaway

Stealth is not a simple story anymore.

It has gone from a small distributor to a much more ambitious national platform with scale, procurement leverage, and a clear FY28 target.

The opportunity is obvious: If management delivers, Stealth could become a far larger and more profitable business.

The risk is equally clear: shareholders need the earnings growth to justify the dilution, the acquisitions, and the volatility.

That makes Stealth one to watch closely rather than blindly chase. For investors who can tolerate small-cap swings, this may be a company worth keeping on the radar as the HBT contribution becomes clearer over the next few reporting periods.

The post Could this rebounding ASX small cap still have a long growth runway? appeared first on The Motley Fool Australia.

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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.

If you are looking for ASX shares to buy and hold for the long term then it could be worth considering the two in this article.

Not only do they have strong long-term growth outlooks, but they were recently recommended as buys by analysts with major upside potential.

Here are the two ASX shares that they are recommending to clients:

Light & Wonder Inc (ASX: LNW)

Light & Wonder is an ASX share with momentum building beneath the surface.

The company operates across gaming content, gaming machines, systems, and digital gaming. Its strength lies in creating content that can be used across multiple channels and markets.

This matters because gaming technology is increasingly about content depth and distribution. A successful game can generate value across land-based casinos, online platforms, and social gaming channels.

Light & Wonder has been reshaping its business in recent years, with a stronger focus on recurring revenue and higher-quality earnings.

The company also has scale in a global industry where content, relationships, and regulatory approvals matter.

If Light & Wonder keeps improving its execution and expanding digital revenue, it could continue to build value over the long term.

Earlier this month, Macquarie put an outperform rating and $200.00 price target on the company’s shares. Based on its current share price, this implies potential upside of approximately 75%.

Netwealth Group Ltd (ASX: NWL)

Netwealth Group is benefiting from a major shift in Australia’s wealth management industry.

The company operates a platform used by financial advisers to manage client portfolios, reporting, administration, and investment access.

Its growth is being supported by advisers moving away from older legacy platforms toward more modern technology. This migration has been playing out for years, and Netwealth has been one of the winners.

A key part of the appeal is operating leverage. As more funds move onto the platform, revenue can grow faster than costs if the business continues to scale efficiently.

Australia’s superannuation and investment markets remain large, and advisers still need better tools to manage increasingly complex client needs.

With funds under administration continuing to shift toward independent platforms, Netwealth remains well placed to benefit from this structural change.

This month, Morgan Stanley put an overweight rating and $33.00 price target on Netwealth’s shares. Based on its current share price, this suggests that upside of approximately 50% over the next 12 months.

The post Analysts say these ASX shares could rise 50% to 75% 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 positions in and has recommended Light & Wonder Inc, Macquarie Group, and Netwealth Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Netwealth Group. 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.

I think Centuria Industrial REIT (ASX: CIP) is one of the most underrated ASX passive income stocks available to Australians.

The business owns a portfolio of high-quality industrial assets that are located in key metropolitan locations throughout Australia, and is underpinned by a strong and diverse mix of tenants.

It aims to generate income and deliver long-term capital growth for investors. Let’s take a look at how rewarding the passive income could be and why it’s an undervalued buy.

Rewarding passive income

Typically, commercial property can provide a much stronger income yield than residential property.

Each year, the ASX stock gives distribution guidance for the financial year ahead thanks to the predictable income and expenses.

For FY26, the business is planning to pay an annual distribution per unit of 16.8 cents. That translates into a forward distribution yield of 5.6%, at the time of writing. Pleasingly, that expected FY26 distribution would represent year-over-year growth of 3%. Any growth from a real estate investment trust (REIT) is pleasing to me during this period of higher interest rates.

Its distribution payout ratio is also at a sustainable level where it’s retaining some of its rental profit which can be used to improve the balance sheet in some way. If it achieves the bottom of its rental earnings (funds from operations (FFO)) guidance of 18.2 cents per unit, then the payout ratio would be 92% – noticeably less than 100%.

In the long-term, I expect the ASX stock’s distribution to increase thanks to good demand for industrial property (such as e-commerce growth), rising rental income with new leases from its portfolio and potentially improvements in its gearing levels.

$250 per month of passive income

The payment frequency from this ASX stock is pleasing, with a distribution every three months. That’s not monthly income, of course.

So, we need to think of the goal as an annual target and then divide it by 12.

To receive $250 per month, we’re talking about $3,000 annually.

Using the passive income projection of 16.8 cents per unit, we’d need 17,858 Centuria Industrial REIT units for the income goal.

Very undervalued business

The Centuria Industrial REIT unit price looks significantly undervalued to me.

The ASX stock’s net tangible assets (NTA) was $3.95 at 31 December 2025, a current valuation discount of around 25%.

During the three months to 31 March 2026, the business divested $188 million of properties at a premium to the balance sheet value of 17%, reducing gearing by approximately 3%.

Since FY23, the business has sold around $460 million of assets at an average premium to book value of 12%. So, the NTA could actually be less than its true underlying value.

Considering the sizeable passive distribution income yield, I think the discount is real and this could be a great time to invest for the long-term.

The post I’d buy 17,858 shares of this ASX stock to aim for $250 a month of passive income appeared first on The Motley Fool Australia.

More reading

• How to invest $15,000 for passive income in superannuation?
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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.

The Betashares Nasdaq 100 ETF (ASX: NDQ) has been one of the most popular growth-focused exchange-traded funds (ETFs) on the ASX.

I can understand why, and if I had $10,000 to invest today, I think the NDQ ETF would be high on my list. Here are five reasons why.

1. It gives exposure to world-class companies

The Nasdaq 100 is home to many of the companies shaping the modern economy.

That includes businesses involved in artificial intelligence (AI), cloud computing, digital advertising, software, semiconductors, ecommerce, cybersecurity, and consumer technology.

For an Australian investor, that is useful.

The ASX has plenty of banks, miners, retailers, and healthcare shares. But it does not have many companies with the global scale of the leading US technology giants.

The NDQ ETF helps fill that gap.

Rather than trying to pick one winner, investors can own a basket of companies that have already built dominant positions in large global markets.

2. The AI opportunity is still early

Artificial intelligence has already created huge excitement in markets.

But I do not think the opportunity is finished.

AI is still being built into software, search, advertising, devices, cloud platforms, chips, data centres, and business workflows. That could support earnings growth for many Nasdaq 100 companies over the next decade.

There will almost certainly be periods when AI enthusiasm runs too hot. Some expectations may prove unrealistic.

But I think the bigger trend is real. This ETF gives investors a simple way to gain exposure to that trend without needing to decide which individual AI stock will win.

3. The NDQ ETF can diversify an ASX-heavy portfolio

Many Australian investors already have a lot of exposure to the local market.

That can mean heavy weightings to the big banks, BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and other resources or income-focused shares.

There is nothing wrong with that, but it can leave a portfolio very tied to Australia’s economy, commodity prices, and local interest rates.

The NDQ ETF can add something different.

It provides exposure to global businesses earning money across many countries and industries. That can make a portfolio feel less dependent on the ASX doing all the work.

4. It suits long-term investors

The Betashares Nasdaq 100 ETF is not the ETF I would buy for a smooth ride.

Technology and growth shares can be volatile, especially when interest rates rise or valuations come under pressure.

But I think volatility is easier to handle when the time horizon is long.

If I were investing $10,000 into the NDQ ETF, I would be thinking in terms of five, 10, or even 20 years. Over that period, I think innovation, earnings growth, and global digital adoption could continue doing a lot of heavy lifting.

Short-term pullbacks would not surprise me. I would treat them as part of owning a growth-focused ETF.

5. It keeps things simple

One of the biggest advantages of ETFs is simplicity.

With one investment, this ETF gives investors exposure to a diversified group of major global companies.

That means there is no need to constantly decide whether to buy Microsoft, NVIDIA, Apple, Amazon.com, or another individual stock.

For many investors, that simplicity is valuable. It reduces the pressure to pick the perfect stock and allows the portfolio to benefit from a broader innovation theme.

Foolish takeaway

Overall, I would buy the NDQ ETF because it gives me exposure to some of the strongest companies in the world, many of which are tied to powerful long-term trends.

There will be setbacks. Growth shares can fall hard when sentiment changes.

But if I had $10,000 to invest for the long term, I think the Betashares Nasdaq 100 ETF would be a very strong candidate.

The post 5 reasons I’d buy the NDQ ETF with $10,000 appeared first on The Motley Fool Australia.

More reading

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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 positions in and has recommended Amazon, Apple, BetaShares Nasdaq 100 ETF, Microsoft, and Nvidia. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon, Apple, BHP Group, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX tech stock TechnologyOne Ltd (ASX:TNE) slipped 3% on Tuesday afternoon to $27.80.

That extends the ASX tech stock’s losses to roughly 17% over the past 12 months.

The pullback comes despite another solid result from the enterprise software provider. TechnologyOne delivered its 17th consecutive record first-half profit on Tuesday.

So why are investors selling? Here are three reasons the market may be losing enthusiasm for the ASX software giant.

Extremely demanding valuation

The first issue is valuation of the ASX tech stock.

Even after the recent sell-off, TechnologyOne shares have still been trading on a price-to-earnings ratio above 65 times earnings. That is an extremely demanding valuation.

At those levels, investors are effectively pricing in years of strong growth and near-perfect execution. The problem is that when expectations become too high, even solid results may not be enough.

That appears to have happened with the latest half-year update. The ASX tech stock delivered a 9% increase in profit before tax to $89.1 million. Annual recurring revenue (ARR) also jumped 17% to $598 million.

While the numbers were strong and broadly matched consensus estimates, some investors were clearly hoping for an even bigger upside surprise. When a stock trades on lofty multiples, “good” can quickly become disappointing.

Higher rates hit valuations

The second concern for the ASX tech stock is interest rates. TechnologyOne operates in the technology sector, where valuations are often highly sensitive to changes in bond yields and interest rate expectations.

Higher interest rates generally reduce the present value of future earnings. That can place pressure on growth stock valuations, particularly companies trading on premium multiples.

And while inflation has eased from peak levels, uncertainty around global interest rates remains. If rates stay elevated for longer than expected, expensive technology stocks could continue facing valuation pressure.

AI disruption concerns

The third risk hanging over the ASX tech stock is artificial intelligence. AI is reshaping the broader software industry at a rapid pace.

To be clear, TechnologyOne is not suddenly becoming irrelevant. The company still has a strong customer base, sticky software products, and recurring revenue streams.

But investors are increasingly questioning how AI could alter competitive dynamics over the long term. New technologies can lower barriers to entry, change customer expectations, and disrupt traditional software development models.

Right now, nobody fully knows which software businesses will benefit most from AI and which could struggle to adapt. That uncertainty alone may be enough to keep some investors cautious.

What do the experts think?

Broker Morgans appears concerned about valuation risk. This week, the broker maintained a sell rating on TechnologyOne shares, arguing the stock still looks expensive at current levels.

That said, not everyone is bearish. Analysts at Bell Potter have retained their buy rating on this ASX tech stock with an improved price target of $32.25. This points to a potential 16% upside.

But with valuation concerns, interest rate risks, and AI uncertainty all weighing on sentiment, investors may be questioning whether the premium price tag is still justified.

The post 3 reasons to sell this ASX tech stock appeared first on The Motley Fool Australia.

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

Australia’s energy system is in the middle of a once-in-a-generation transformation.

Coal-fired power stations are closing, renewable capacity is expanding rapidly, and the federal government has committed to net zero emissions by 2050 with an interim target of a 43% reduction by 2030.

For investors, the question is which companies can capture the most value from this transition.

Three ASX-listed names stand out.

AGL Energy Ltd (ASX: AGL)

AGL Energy is Australia’s largest electricity generator and one of the most active investors in the energy transition, despite its roots in coal-fired power.

The company is deploying $2 billion in growth projects, including the commissioning of the first 250-megawatt tranche of the Liddell Battery in New South Wales.

The full 500-megawatt system expected to reach completion by June 2026.

In addition, AGL reinvested approximately $750 million in proceeds from the sale of its Tilt Renewables stake directly into batteries and flexible generation assets.

At the Macquarie Conference, management narrowed its FY2026 underlying EBITDA guidance to $2.06 billion to $2.18 billion, reflecting strong operational performance and improved plant availability.

Ord Minnett carries a buy rating on AGL with a price target of $13.

The broker believes the market continues to underappreciate the pace and scale of AGL’s transition strategy.

Origin Energy Ltd (ASX: ORG)

Origin Energy approaches the net zero transition from a different angle, combining a large electricity retail franchise with one of Australia’s most ambitious battery storage programs.

The company delivered Eraring Battery Stage 1 on time and within budget, and its full 700 megawatt, 3,160 megawatt-hour Eraring Battery is targeted for completion by early 2027.

This will rank among the largest battery storage assets in the country.

Meanwhile, Origin is expanding its renewables contracting business and progressing its Supernode and Mortlake battery projects.

The company has also upgraded its Energy Markets underlying EBITDA guidance to $1,550 million to $1,750 million for FY2026, reflecting stronger than expected performance in electricity margins.

Furthermore, Origin’s partnership with Octopus Energy and its Kraken technology platform positions the business as a technology-enabled energy retailer, a potential source of future competitive advantage.

Mercury NZ Ltd (ASX: MCY)

Mercury NZ offers Australian investors a distinctive and pure-play exposure to the net zero theme through its 100% renewable electricity generation portfolio in New Zealand.

This portfolio spans hydro, geothermal, and wind assets.

The company posted a 28% lift in EBITDAF to NZ$537 million for the first half of FY2026, alongside a 130% jump in net profit after tax, as improved hydro inflows and disciplined cost management drove a strong result.

Mercury is actively reinvesting in new generation capacity, with its NZ$220 million Ngā Tamariki Geothermal Station expansion unit now operational, and both its Kaiwera Downs Stage 2 and Kaiwaikawe wind farms on track to begin generating during 2026 and 2027.

Management targets NZ$1 billion in EBITDA for FY2026 and has guided a 4% increase in the full-year dividend to 25 cents per share, extending what is now a 17-year consecutive run of dividend growth.

At a time when investors increasingly seek businesses that align with long-term tailwinds, Mercury’s 100% renewable generation model is a strong differentiator.

Foolish takeaway

Australia’s net zero transition will reshape the energy sector for decades.

AGL brings scale.

Origin combines a large customer base with a growing battery portfolio and technology portfolio.

And Mercury offers pure-play renewable exposure with a 17-year dividend growth track record.

Together they represent three very different but equally compelling ways to participate in one of the most important themes of the next decade.

The post 3 ASX shares that could win big from Australia’s push to net zero appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven 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.

The ASX dividend share L1 Long Short Fund Ltd (ASX: LSF) may be one of the leading picks for retiree passive income on the ASX.

Retirees may be searching for investments that can offer multiple positives such as a good dividend yield, dividend growth, capital growth and even diversification.

There are some investments that can provide instant diversification such as exchange-traded funds (ETFs). I reckon listed investment companies (LICs), with investment picks chosen by fund managers, are a very underrated option and I believe L1 Long Short Fund can tick all of those boxes.

Diversification

L1 Long Short Fund invests in a mixture of Australian shares and international shares, through a mixture of both long-term investing and short-selling. Short investing is when an investor thinks a share price is going to go down.

Therefore, the LIC is able to make returns whether the market is going up or down. It certainly doesn’t follow an index like the S&P/ASX 200 Index (ASX: XJO), that’s for sure, though it does aim to outperform the ASX 200.

Its typical investment strategy is to aim for businesses with low price/earnings (P/E) ratios, but are expected to deliver solid earnings per share (EPS) growth (with modest debt levels).

Since the start of its long-short strategy, the three sectors that have contributed the most to returns have been ASX mining shares, industrials and communication shares. It has not relied on tech for returns at all.

Dividend yield

With the investment returns generated by the LIC, it can provide a pleasing dividend yield for retirees (and shareholders of other ages).

I expect the next four quarterly dividends will come to 15.4 cents, which translates into a potential grossed-up dividend yield of 5%, including franking credits, at the time of writing.

I believe investors can look forward to the dividend yield growing further (if the L1 Long Short Fund share price weren’t to change).

Dividend growth

The leadership of the ASX dividend share has stated that it intends to continue increasing the dividend for shareholders, and the payout has increased each financial year since 2021, when it first started paying a dividend.

At a time when inflation is elevated, I think it’s a good idea to look for investments that are increasing their passive income payments.

The two FY26 first half’s quarterly dividends were 13.6% higher than the FY25 first-half interim dividend, which is a solid growth rate.

I think the business can continue to hike its quarterly dividend at a year-over-year growth rate of more than 10% in 2026.

Capital growth

Over the last five years, the ASX dividend share’s portfolio has delivered a net return of 16.3% per year, close to doubling its benchmark. Past performance is not a guarantee of future returns, of course.

But, with a return of that size, L1 Long Short Fund has been able to deliver a sizeable dividend and dividend growth, with capital growth from the retained investment profits.

For retirees, I think the LIC is a very attractive.

The post Why this ASX dividend share is a retiree’s dream appeared first on The Motley Fool Australia.

More reading

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• How much is needed in superannuation to target a $2,500 monthly passive income?

Motley Fool contributor Tristan Harrison has positions in L1 Long Short 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.

Blue-chip shares can be a good place to look when building long-term wealth.

The best of them are not just large companies. They have strong market positions, proven management teams, and the ability to keep reinvesting for growth through different market conditions.

With that in mind, here are three ASX 200 blue-chip shares that could be worth buying now.

Goodman Group (ASX: GMG)

Goodman Group has become one of the most important infrastructure businesses on the ASX.

Its warehouses and logistics properties help companies move goods through increasingly complex supply chains. But the company’s opportunity has widened in recent years as digital infrastructure becomes a larger part of its growth story.

Large-scale data centres need land, power access, planning expertise, and customers with deep balance sheets. Goodman has many of the ingredients required to serve that demand.

This gives the company a rare combination. Its core logistics business is still supported by ecommerce and supply chain investment, while its data centre pipeline gives it exposure to cloud computing and artificial intelligence.

ResMed Inc (ASX: RMD)

ResMed is another ASX 200 blue-chip share with a strong long-term case.

The company sits in a part of healthcare where demand is still building. Sleep apnoea remains underdiagnosed globally, and better awareness of sleep health continues to bring more patients into treatment.

ResMed’s strength is that it is not just selling devices. Its masks, machines, software, and connected-care tools create a broader ecosystem that supports patients, clinicians, and healthcare providers.

That is important because healthcare systems are increasingly trying to deliver more care outside hospitals. ResMed’s products fit neatly into that shift, helping people manage chronic conditions at home.

Its latest results also showed the business remains in good shape, with revenue growth, margin expansion, and strong cash generation. That gives investors more confidence that the company can keep investing while still delivering earnings growth.

Wesfarmers Ltd (ASX: WES)

Wesfarmers has earned its blue-chip status through decades of disciplined execution.

The group owns some of Australia’s strongest retail businesses, with Bunnings at the centre. Bunnings is a retail machine with scale, customer trust, strong supplier relationships, and deep relevance to both households and trade customers.

Kmart and Officeworks add further earnings streams, while the group’s chemicals and industrial operations provide exposure outside retail.

What makes Wesfarmers attractive is its capital discipline. The company has a long history of buying, building, selling, and reinvesting with shareholders in mind.

That flexibility is valuable. Wesfarmers does not need every division to fire at the same time. It has multiple levers and a management culture focused on returns.

The post 3 of the best ASX 200 blue-chip shares to buy now appeared first on The Motley Fool Australia.

More reading

• How to build a $150,000 ASX share portfolio from scratch
• 4 ASX 200 shares tipped to jump another 50% to 60%
• Why Wesfarmers could be one of the best blue-chip shares to buy
• Why this fallen ASX 200 blue chip could be a strong buy
• 5 ASX shares that could bounce back in the second half of 2026

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

S&P/ASX 200 Index (ASX: XJO) shares closed 1.2% higher yesterday on renewed hopes of a deal between the US and Iran.

US President Donald Trump posted on Truth Social that he had called off a military strike on Iran that had been scheduled for today.

Trump said he did so after Persian Gulf leaders implored him to wait for details of a deal that they think will be acceptable to the US.

However, Trump also instructed the US military to remain prepared for “a full, large scale assault of Iran” if a deal was not reached.

Meanwhile, the critical Strait of Hormuz, through which 20% of the world’s oil and gas supply is shipped, remains effectively closed.

The war has contributed to the ASX 200 falling into the red for 2026.

ASX 200 shares are down 1.4% in the calendar year to date (YTD).

Despite this, experts say some stocks have strong potential upside ahead. Here is a selection of them.

Nick Scali Ltd (ASX: NCK)

The Nick Scali share price closed at $14.03, up 2%, yesterday.

This ASX consumer discretionary share is down 41% YTD.

Macquarie has renewed its buy rating on Nick Scali shares with a $21.60 target.

This indicates a potential 54% upside ahead.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price finished at $9.98, down 1.9%, on Tuesday.

This ASX 200 travel share is down 33% YTD.

Morgan Stanley has reaffirmed its buy rating on Flight Centre shares with a $16 target.

This suggests a potential 60% capital gain ahead. 

Global Lithium Resources Ltd (ASX: GL1)

The Global Lithium share price closed at 52 cents on Tuesday, up 7.3%.

This ASX lithium share has ripped 186% over 12 months on the back of recovering lithium prices.

As an example, the lithium carbonate price has skyrocketed 57% YTD and 195% over 12 months.

Macquarie has renewed its buy rating with a 12-month target of 80 cents.

This implies 55% capital growth ahead. 

Brambles Ltd (ASX: BXB)

The Brambles share price finished Tuesday’s session is $17.53, down 0.6%.

This ASX industrial share is down 23% YTD.

Citi renewed its buy rating on Brambles shares with a $27.55 price target on Monday.

This suggests a potential 57% upside ahead.

Alkane Resources Ltd (ASX: ALK)

The Alkane Resources share price rose 4.1% to $1.53 yesterday.

MA Financial Group has reiterated its buy call on this ASX 200 gold share.

The broker lifted its price target from $2.25 to $2.30.

This implies a potential 50% capital gain ahead. 

The post 5 ASX shares with 50% to 60% upside ahead: Experts appeared first on The Motley Fool Australia.

More reading

• After this week’s sell-down, is it time to buy Brambles shares?
• Here are the top 10 ASX 200 shares today
• Brambles shares crash 20% in worst fall in more than two decades
• Should investors buy low on these ASX shares hitting 52-week lows?
• Here’s what Flight Centre’s latest trading update tells investors about FY2026

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Flight Centre Travel Group, Ma Financial Group, and Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.