Category: Stock Market

The next meeting of the US Federal Reserve is on the cards this week, and all eyes are on whether rates will be cut to spur on the US economy.

The research team at Wilsons Advisory say the market is pricing in an 89% chance that US rates will go lower, which has implications for the share markets in the US and in Australia.

As they said in a note to clients this week:

While there are no absolute certainties in central bank crystal ball gazing, it would appear a cut from the Fed is highly likely. Incremental evidence of ongoing labour market softness, a relatively modest inflation uplift from tariffs, alongside some relatively dovish comments from key Fed board members are adding to market confidence that the Fed is set to cut.

Implications for the stock market

So what does this mean for stocks here and in the US?

The Wilsons research team says a further rate cut should be supportive for stock prices both in the US and in Australia.

Looking at the empirical relationship between Fed easing cycles and equity market performance shows the US equity market has had a strong tendency to rise when backed by the supportive combination of Fed easing and an economic soft landing. Indeed, we find no instances (since 1980) of poor US market performance when the Fed is in easing mode, and the US economy achieves a ‘soft landing’. This keeps us constructive on US equities despite full valuations and lingering concerns around the AI capex boom.

And there is also a correlation between Australian equities rising when the Fed is easing and the US economy continuing to grow, Wilsons says.

This appears to hold regardless of whether the RBA is easing in sync with the Fed or not. This is comforting in the face of rising uncertainty as to whether the RBA’s next move in domestic rates in 2026 is actually up rather than down.

Australian sentiment changing

As far as the next moves from the Reserve Bank of Australia on rates, Wilsons says the market is now pricing in a move higher “in the back end of 2026”.

This is in contrast to the market pricing for two cuts in 2026 a little over six weeks ago.

Wilsons said Australia inflation has been a “big surprise” in recent months.

This has caused expectations for the cash rate to move from two cuts in 2026 to the market now pricing for a likely hike. This swing in rate expectations played a part in the recent 7% correction in the Australian equity market however renewed expectations for lower US interest rates have helped the local market edge up from its recent lows.

The post What will a likely US rate cut mean for Australian shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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 National Storage REIT (ASX: NSR) share price is in focus after the company announced it has entered into a binding Scheme Implementation Deed with a consortium led by Brookfield and GIC. Under the proposed deal, NSR securityholders will receive a total value of $2.86 cash per security, representing a 26.5% premium to the last undisturbed price. The scheme values NSR’s equity at $4.0 billion and an enterprise value of $6.7 billion.

What did National Storage REIT report?

• Entered a binding scheme with Brookfield and GIC consortium for a total cash consideration of $2.86 per security
• Scheme values equity at approximately $4.0 billion and enterprise value at $6.7 billion
• Total consideration represents 26.5% premium to last undisturbed price as of 25 November 2025
• Scheme consideration is a 10.9% premium to NSR’s net tangible asset (NTA) value of $2.58 per security
• Board unanimously recommends voting in favour, subject to no superior proposal and independent expert support
• Potential permitted distribution of up to 6 cents per security, deducted from the cash offer if paid

What else do investors need to know?

The proposed transaction follows a period of negotiation and confirms earlier speculation that NSR was in acquisition talks. If the permitted distribution is paid for the half-year ending 31 December, the cash component of the scheme price is reduced by 6 cents. The board has also suspended the Dividend Reinvestment Plan (DRP) effective immediately in light of the scheme.

The board’s unanimous recommendation comes with support from an independent expert and is subject to a shareholder vote, court approvals and a range of regulatory clearances including from the Foreign Investment Review Board and New Zealand’s Overseas Investment Office. Subject to conditions, implementation could occur in the second quarter of 2026.

What did National Storage REIT management say?

NSR Managing Director Andrew Catsoulis said:

This proposal is an endorsement of the strong fundamentals and long-term growth strategy of NSR, which has evolved from a single storage centre originally developed at Oxley Queensland in 1995 to Australia and New Zealand’s leading owner and operator of self-storage centres with over 290 centres today providing over 1.6 million square metres of state of the art storage space for its customers. We are confident this position will be further strengthened with the Consortium’s support.

What’s next for National Storage REIT?

Securityholders are not required to take any action at this time. Details of the proposal, including the Scheme Booklet and independent expert’s report, will be provided ahead of a vote anticipated for April 2026. If approved and all conditions are satisfied, the implementation of the scheme is expected in the second quarter of 2026.

The board will pay close attention to regulatory clearances and any competing proposals that may arise, with a ‘superior proposal’ clause providing flexibility. If the transaction proceeds, NSR will be removed from the ASX and its shares delisted.

National Storage REIT share price snapshot

Over the past 12 months, the National Storage REIT shares have climbed 16%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post National Storage REIT agrees to $4bn Brookfield-GIC buyout: What it means for investors 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.

Santos Ltd (ASX: STO) shares have become one of the most watched names in the Australian energy sector – and not for all the right reasons.

It’s understandable that the gas producer’s stock has mostly declined this year. On Friday, Santos shares ended at $6.52, down 19% from their peak mid-August.  

Some experts suggest the ASX energy stock is now a strong option, given its improved stability. Let’s take a closer look.  

Takeover drama and heated debate

This year has seen plenty of takeover drama and heated debate about Santos’ environmental record.

The gas producer is currently at a pivotal point in its operations. Santos is generating strong cash flow and is driving future growth by expanding LNG facilities and advancing carbon-management initiatives.

Santos benefits from growing supply and solid contracts, with projects like Barossa expected to increase LNG volumes for Asian markets seeking reliable, high-calorific gas.

The $21 billion business also signed mid-term LNG supply agreements this year, highlighting firm demand for its output. Those operational gains, if sustained, should translate into stronger cash flow and greater optionality for returns to shareholders.

Projects in PNG and Alaska

Santos’ strengths include scale and a strong project pipeline. Barossa and international projects in PNG and Alaska diversify revenues and reduce dependence on single assets.

Santos has also been positioning itself on low-emission technologies which it argues will help smooth the company’s path through an energy transition.

Regulatory issues and operational hiccups

The optimistic outlook is tempered by significant risks. Santos faced a failed takeover attempt by an ADNOC-led group, revealing governance and regulatory issues that can swiftly lower its share price when deals collapse.

Operational hiccups such as outages and weather disruption at offshore assets, commodity price volatility, and persistent criticism over the effectiveness and optics of emission programs leave the company exposed to both market and reputational risk.

Outlook and what analysts say

It’s clear that Santos shares are not without risk. However, they do offer investors exposure to a major, cash-generating gas company with upcoming production growth and plans for lower-carbon operations.

Analysts remain cautiously constructive, reflecting a mix of buy and hold calls. The average 12-month analyst price target sits around $7.40, a 14% upside from the current share price.   

Looking to 2026, analysts at Macquarie expect that Santos shares will face headwinds from falling natural gas prices. Macquarie has an outperform recommendation and an $8 price target on Santos shares. That represents a potential upside of 23% from Friday’s closing price.

In a recent note, the broker highlights:

We believe an underweight position in Oil & Gas is warranted, given our still bearish oil and LNG outlooks. Within this, Santos remains our top pick, where we see value appeal on an absolute and relative basis (and clear catalysts to re-rate). We see significant value in STO following the deal break with XRG/ Carlyle and expect this to be better recognised once customer deliveries commence from Barossa gas project via Darwin LNG (within weeks) and Pikka oil in Alaska (1Q-2026).

The post Why Santos shares are a key energy stock to watch 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you’re just starting your investing journey, the share market can feel intimidating. There are endless stocks to research, endless opinions to sort through, and endless fear of getting it wrong.

That’s why, for most beginners, the smartest move isn’t trying to pick individual winners. It is building a simple, diversified ASX ETF portfolio that quietly compounds in the background, with no guesswork required.

With 2026 fast approaching, now could be a perfect time to set up a clean, low-maintenance portfolio that can grow with you for decades. And the best part? You only need a handful of high-quality ETFs to cover the world.

Here’s what could be the ultimate ASX ETF portfolio for beginners in 2026.

Vanguard Australian Shares Index ETF (ASX: VAS)

Having some local exposure is always a good idea and the Vanguard Australian Shares Index ETF is a great way to achieve this. It tracks the S&P/ASX 300 Index, meaning you instantly own a slice of the nation’s leading 300 stocks. This includes Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Wesfarmers Ltd (ASX: WES), and Woolworths Group Ltd (ASX: WOW).

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF could be another top holding for a beginner portfolio. It tracks Wall Street’s S&P 500 Index, which has historically outperformed most global markets for decades.

With this ASX ETF you instantly get exposure to US giants like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Netflix (NASDAQ: NFLX), and Nvidia (NASDAQ: NVDA). These companies are shaping the future of AI, cloud computing, entertainment, and software, which are sectors that continue to expand at a rapid pace.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Once your base is built, adding a layer of quality can significantly improve long-term returns.

The Betashares Global Quality Leaders ETF selects stocks with exceptionally strong balance sheets, consistent earnings, and durable competitive advantages. These are businesses that tend to outperform during downturns and accelerate when markets recover.

Its top holdings typically include global leaders like ASML (NASDAQ: ASML), Visa (NYSE: V), and Alphabet (NASDAQ: GOOGL). This fund was recently recommended by analysts at Betashares.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF could be a powerful option for beginners.

This ASX ETF holds the region’s most influential tech innovators, including Tencent Holdings (SEHK: 700), Baidu (NASDAQ: BIDU), PDD Holdings (NASDAQ: PDD), SK Hynix, and Taiwan Semiconductor Manufacturing Co. (NYSE: TSM). As millions more consumers across Asia move online, this sector is positioned for multi-decade expansion.

The post The ultimate ASX ETF portfolio for beginners in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ASML, Alphabet, Apple, Baidu, Microsoft, Netflix, Nvidia, Taiwan Semiconductor Manufacturing, Tencent, Visa, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool Australia has recommended ASML, Alphabet, Apple, BHP Group, Microsoft, Netflix, Nvidia, Visa, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Genuine long-term wealth rarely comes from trading in and out of whatever is popular.

Instead, it often comes from owning a handful of elite businesses, the sort that keep expanding their markets, improving their earnings power, and strengthening their competitive edge year after year.

On the ASX, several ASX growth shares fit that description, but two in particular stand out as long-term compounders with momentum firmly behind them.

Here are a couple of unstoppable ASX growth shares to buy and hold for years.

Life360 Inc (ASX: 360)

Life360 has transformed from a family-tracking app into a full-scale digital safety platform with growing subscription muscle. What makes the company so unstoppable isn’t just its massive user base, it is the rate at which that base is evolving.

Recent updates show explosive momentum. It reported accelerating subscriber growth, rising average revenue per user (ARPU), strong cash generation, and global monthly active users approaching the 100-million mark. This scale gives Life360 significant optionality.

With a platform that already lives on the smartphones of tens of millions of families, Life360 can expand into adjacent categories such as home security, insurance partnerships, vehicle telematics, and commerce integrations. Very few consumer apps enjoy this type of engagement or monetisation leverage.

And because Life360’s model is subscription-driven, revenue compounds each year even without massive user growth. Add the potential benefits of international expansion and its advertising business, and it is clear why many analysts view it as one of the ASX’s emerging global leaders.

Morgan Stanley recently put an overweight rating and $58.50 price target on its shares.

NextDC Ltd (ASX: NXT)

Another ASX growth share that could be a top buy and hold option is NextDC. It provides the physical backbone the digital economy runs on.

Demand for data centre capacity has surged with the rise of cloud computing, streaming, ecommerce, and especially artificial intelligence. Every AI model, every cloud migration, and every tech platform relies on compute and storage, which NextDC delivers through some of the most advanced, energy-efficient data centres in the region.

What makes NextDC unstoppable isn’t just industry tailwinds, it is the company’s aggressive build-out strategy. Major new facilities are coming online across key markets, and each one typically ramps up utilisation over many years, driving recurring revenue higher without proportionate increases in cost.

An example of this is the deal it has just signed with ChatGPT’s owner, OpenAI. The two parties are looking at building the largest data centre in the southern hemisphere, with OpenAI as its anchor tenant.

Combined with the rest of its development pipeline across Australia and the Asia-Pacific region, this leaves NextDC well-placed for growth over the next decade and beyond.

Morgans is bullish on the company and recently upgraded its shares to a buy rating with a $19.00 price target.

The post 2 unstoppable ASX growth shares to buy and hold appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360 and Nextdc. 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.

Many investors might choose to stay away from ASX small-cap stocks. 

That’s because historically, they can come with increased volatility. 

There are more than 2,000 small-cap companies on the ASX. 

Many of these are companies that are yet to turn a profit, rely on private or government funding, or have unproven leadership.

Sometimes, they have all of the above. 

But a select few of these small-cap stocks will turn into blue-chip companies. 

Let’s look at CSL (ASX: CSL) for example. 

In the early 2000’s the company had a market cap hovering around $1.5 billion and a share price just over $10. 

Fast forward to today, and the company is one of the top 10 largest companies in Australia with a share price of roughly $184, representing almost a 2000% gain since 2002. 

While this is a one-off example, it illustrates the potential long-term upside of identifying profitable small-cap stocks. 

This year, there have been two mining companies that have had share price gains of between 180-200%. 

This kind of return, regardless of risk-appetite, is worth paying attention to for investors. 

Let’s look at the two companies. 

Predictive Discovery Ltd (ASX: PDI)

The company operates gold and uranium exploration projects in West Africa. According to the company, Its strategy is to identify and develop gold deposits within the Siguiri Basin, Guinea. 

After last week’s close, its share price is now up 200% in 2025. 

Key highlights were the completion of its Definitive Feasibility Study (DFS) which, according to the company, confirms its Bankan Gold Project as a rare gold asset, with large-scale, a long-life production profile, robust margins, and the ability to generate strong returns through the cycle. 

However, as with any mine project – this depends on variables like execution, commodity prices etc. 

In October, the company announced a merger with fellow Robex Resources (ASX: RXR). 

However, Perseus Mining Ltd (ASX: PRU) has now also tabled an offer to Predictive Discovery. 

The offer was deemed as a “superior proposal” by the board. 

Robex now has five business days, until 10 December 2025, to decide whether to match or exceed that offer.

This decision will be important to watch, as two competing companies are essentially fighting for exposure to Predictive Discovery’s assets. 

Resolute Mining Ltd (ASX: RSG)

Resolute Mining is also an African-focused gold miner. It has operated for more than 30 years as an explorer, developer and operator.

The company has benefited from surging commodity prices and key increases in production. 

In October, the company was granted two new exploration permits. The company said it aims to kick off exploration across these permits in 2026. 

This contributed to boosted gold estimates 60% larger than historical estimates at the site.

Its share price has now soared 168.29% in 2025. 

The post Should we be paying more attention to these two rocketing ASX small-cap mining stocks? appeared first on The Motley Fool Australia.

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

This year has been rough on this ASX 200 mining stock. New Hope Corporation Ltd (ASX: NHC) shares are down significantly in 2025, falling 20% for the year to date.

The sliding share price is reflecting a steep decrease in global coal prices. Yet the coal mining company still delivers a relatively high dividend yield of 8.5% at current levels.

For income-focused investors, that might look tempting. But is it really time to buy this ASX 200 mining stock?

Diversifying coal-market risk

New Hope is one of Australia’s established coal miners. Its operations include major assets such as the Bengalla Mine in New South Wales and the New Acland Mine in Queensland.

In FY2025, higher output from the mines, especially New Acland, boosted saleable coal production to 10.7 Mt.

New Hope also increased its equity in Malabar Resources to about 23%, increasing its exposure to metallurgical coal and diversifying its coal-market risk. The company highlights that it maintains key strengths: low-cost operations, coal type diversification, and disciplined management despite weak prices.

Market beating dividends

Shares in the coal stock closed last week at $3.99, a gain of 2.8%. The ASX 200 mining stock is down 8% this month and 19% over a year, but still up 171% over five years.

However, New Hope has continued to reward passive income investors with some market beating dividends.

Shareholders received a fully franked 19 cent interim dividend on 9 April, and a final fully franked 15 cent dividend from New Hope on 8 October. The total annual dividend is 34 cents per share, giving New Hope stock a fully franked 8.5% trailing yield that partially offsets last year’s capital losses.

The company also introduced a Dividend Reinvestment Plan (DRP), letting eligible shareholders reinvest dividends as new shares.

Management has stated dividends will continue as the main form of shareholder return, supported by strong franking credits.

What do the experts think?

New Hope’s weak share price and high yield may appeal to income investors who accept commodity risk. Returns depend highly on unpredictable coal market conditions. If coal prices rebound, the coal miner could deliver strong investor returns.

Brokers are divided. Only a few analysts rate the ASX 200 mining stock a buy and set a target price over $5.00. Most market watchers are more conservative with a hold recommendation and a target price for the next 12 months of $4.10, a modest upside of 2.7%.

Analysts at Macquarie Group (ASX: MQG) have become cautious, downgrading New Hope to ‘underperform’ and cutting their 12-month price target to $3.80 per share. They are citing weaker coal-price outlook and subdued production expectations as the reason for the downgrade.

The post ASX 200 mining stock down 20% with 8% yield: is it a buy? 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL) shares have had a reputation for profit growth over the years. But, the business is now facing headwinds in the US and a potentially slower growth outlook.

The ASX biotech share has carved out a good position in immunoglobulin (IG) products, blood plasma collection centres and vaccines.

Analysts are not convinced the business can continue growing profit as strongly for the foreseeable future.  

With uncertainty in the air, let’s take a look at how much profit analysts are projecting the business could produce in the coming years.

FY26

Despite all of the difficulties the business is facing, the broker UBS is projecting that the company’s net profit could rise in 2026.

UBS noted that at a recent capital markets day, CSL expects high single digits IG sales growth in FY27 and FY28, with the broker predicting 5% growth. The market is expected to see mid-single-digit to high-single-digit growth, along with market share gains of between 1% to 2%.

The broker noted that market share gains in IG are expected to come from new hospital sales force, pre-filled syringe adoption and enhanced tender capabilities.

UBS also highlighted that high single-digit sales growth is expected in hemophilia, AHC and HAE.

The broker is also expecting that the net profit margin could increase 100 basis points (1.00%) across FY27 and FY28 due to lower costs of goods sold as well as operating leverage.

In FY26, US$200 million is expected to be achieved of its cost saving target of US$550 million. Separately, CSL is targeting an 11% reduction in addressable manufacturing costs by FY28.

CSL believes it’s well-positioned to deal with US tariffs and other headwinds related to the US with “likely plasma exclusion and its growing US investment”.

UBS also said that Seqirus (the vaccine business) is outperforming in a difficult US market, with a significant drop in US vaccination rates. But, market share gains in Europe are helping offset some of the pain. UBS said there is room for a recovery because flu doses in FY26 are around 30% below pre-COVID levels, while other large markets are at pre-COVID levels.

There are a lot of moving parts with CSL, which are all under scrutiny amid all of the CSL share price pain.

Despite all of the above, the business is projected to grow its net profit to US$3.46 billion in FY26.

FY27

Profit is expected to continue to rise in the 2027 financial year for shareholders.

UBS projects that owners of CSL shares could see the company’s net profit climb to $3.79 billion in FY27.

FY28

The 2028 financial year could get even better for CSL, with UBS forecasting that the company’s net profit could increase to $4.17 billion.

FY29

The FY29 net profit could climb even further for shareholders, according to UBS, to $4.5 billion.

FY30

If UBS is correct with its projections, then CSL could achieve a net profit of $4.7 billion in FY30. This implies a possible rise of net profit by 38% between FY26 and FY30. Time will tell how close these projections are to reality, but they are promising.

The broker has a buy rating on the business, with a price target of $275. That suggests a possible rise of almost 50% in the next year.

The post Here’s the earnings forecast out to 2030 for CSL shares 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 CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With interest rates now heading lower and savings accounts offering slimmer returns, many investors are shifting their focus back to dividend-paying shares.

And with the ASX home to some of the world’s most reliable income shares, there are plenty of attractive opportunities for those looking to put $20,000 to work right now.

If you’re building or expanding an income-focused portfolio, three well-established Australian shares stand out as top choices for December.

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman has long been a favourite among dividend investors thanks to its strong cash generation, extensive store network, and conservative balance sheet. While retail conditions have been patchy in 2025 due to cost-of-living pressures, Harvey Norman continues to benefit from resilient demand in categories such as appliances, technology, and furniture.

Another positive is that management owns a significant portion of the business, aligning their interests with shareholders and supporting a disciplined approach to capital allocation. And as economic conditions stabilise in 2026, Harvey Norman’s earnings, and its dividends, are well placed to improve again.

At present, its shares trade with a trailing fully franked dividend yield of 3.9%.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share to consider for that $20,000 investment is Super Retail Group.

It is the owner of well-known retail brands Supercheap Auto, Macpac, BCF, and Rebel. These businesses operate in categories where customers tend to remain relatively loyal even during tougher economic periods. That resilience has helped Super Retail deliver consistently strong earnings and a steady stream of dividends.

In recent years, the company has strengthened its balance sheet, expanded its online presence, grown its loyalty program, and improved inventory efficiency, positioning it well for the future. Especially now interest rates are falling.

And with its shares trading at attractive levels compared to historical averages, dividend investors are being offered both income and potential upside as trading conditions normalise.

Super Retail’s shares currently trade with a trailing fully franked dividend yield of 4.2%.

Woolworths Group Ltd (ASX: WOW)

A final ASX dividend share to consider is Woolworths. As one of the country’s big two supermarket operators, it is a defensive option that is able to generate stable revenue regardless of economic cycles.

This consistency allows Woolworths to pay reliable dividends year after year. And despite some recent share price weakness related to increased competition and shifting consumer behaviour, Woolworths remains a dominant player with a strong brand, deep customer loyalty, and growing digital capabilities.

It is currently trading with a trailing fully franked dividend yield of 3.1%.

The post Where to invest $20,000 in ASX dividend shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Super Retail Group. The Motley Fool Australia has positions in and has recommended Harvey Norman, Super Retail 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.

Corporate Travel Management Ltd (ASX: CTD) and uranium miner Boss Energy Ltd (ASX: BOE) are among six ASX shares that will be dropped from the S&P/ASX 200 Index (ASX: XJO) in the December rebalance.

Corporate Travel Management shares have been suspended since 26 August after the company revealed accounting irregularities in its UK operations.

Auditors have since discovered incorrect revenue recognition of GBP 45.4 million and other irregularities.

S&P Dow Jones Indices announced its next quarterly rebalance, effective 22 December, after the market close on Friday.

Car parts retailer Bapcor Ltd (ASX: BAP) and poultry producer and food processor Inghams Group Ltd (ASX: ING) will also drop out.

Alternative asset and property fund manager, HMC Capital Ltd (ASX: HMC) will also go.

Intellectual property services firm, IPH Ltd (ASX: IPH), rounds out the list of ASX 200 departees.

You can find out which shares will enter the ASX 200 index on 22 December here.

What is an index rebalance?

Every three months, S&P Dow Jones Indices reviews and updates Australia’s leading market indices.

Rebalances ensure the indices accurately rank the nation’s largest listed organisations by market capitalisation.

Indices provide a consistent way to measure and monitor the market’s performance over the long term.

The ASX 200 is the benchmark index for the Australian share market.

However, other indices, like the S&P/ASX All Ordinaries Index (ASX: XAO) and S&P/ASX 300 Index (ASX: XKO), are also very important.

Why is it bad for these ASX 200 shares?

Membership in the ASX 200 indicates a company’s strong market standing.

Being dropped in a rebalance can signal potential problems, market headwinds, or a declining stock valuation.

As shown below, all six of these ASX 200 shares have fallen over the past year (except the frozen Corporate Travel Management shares).

Leaving the ASX 200 can have tangible effects on a share’s price. This is because it triggers passive investment exits.

Many exchange-traded funds (ETFs) and managed funds are designed to track the performance of the ASX 200.

This means that every quarter, fund managers must buy the shares that enter the ASX 200 and sell those that leave.

This can result in extra trading activity around the rebalance date, which may influence a share’s value.

Rebalances have greater significance than ever before due to the rising popularity of ASX ETFs.

The latest Betashares data shows Australians ploughed a record $5.99 billion into ASX ETFs in October.

A record $321.7 billion is now invested in more than 400 ETFs on the market today.

ASX ETFs are a passive, diversified investment option that many investors perceive as convenient and lower risk.

They are a basket of shares that investors can buy in one trade for one brokerage fee, with low ongoing management fees thereafter.

The post Corporate Travel Management and Boss Energy shares dumped from ASX 200 appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Corporate Travel Management and HMC Capital. The Motley Fool Australia has positions in and has recommended Corporate Travel Management. The Motley Fool Australia has recommended HMC Capital and IPH Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.