Category: Stock Market

The Growthpoint Properties Australia Ltd (ASX: GOZ) share price is in focus after the company announced office portfolio occupancy climbed to 96%, with funds from operations (FFO) guidance reaffirmed for FY26 at 23.0–23.6 cents per security.

What did Growthpoint Properties Australia report?

• Directly held portfolio occupancy increased to 96% as at 31 May 2026
• Weighted average lease expiry (WALE) is 5.7 years
• FY26 FFO guidance reaffirmed at 23.0–23.6 cents per security
• FY26 distribution guidance maintained at 18.4 cents per security
• Refinanced $495 million of debt and completed $16.7 million asset divestment
• 54,721 sqm of office leasing executed in FY26 to date, with terms agreed on an additional 27,602 sqm

What else do investors need to know?

Growthpoint has delivered strong leasing momentum, including major new long-term leases to Myer Group in Melbourne and John Holland Group in Brisbane. The company has also continued its active approach to capital management, refinancing $495 million of debt and extending maturities, which has helped strengthen its balance sheet.

There’s been a change in leadership, with Nathan Thomas brought in as Chief Investment Officer, joining a refreshed executive team. A recent asset sale at Brisbane Airport for $16.7 million underlines the ongoing portfolio optimisation.

What did Growthpoint Properties Australia management say?

CEO and Managing Director Ross Lees said:

Our focus on delivering for tenants has sustained leasing momentum from the first half. We have executed 54,721 sqm of directly held office leasing in FY26 to date and remain on track for a record year, with terms agreed on a further 27,602 sqm.

What’s next for Growthpoint Properties Australia?

Growthpoint remains confident in achieving its full-year guidance, backed by ongoing leasing wins and a resilient tenant base. The company will continue to focus on strategic leasing, disciplined capital management, and maintaining high office and industrial occupancy.

Despite some cautious signals in tenant decision-making and pressures from inflation and funding costs, Growthpoint is prioritising long-term stability and growth by investing in its people and properties.

Growthpoint Properties Australia share price snapshot

Over the past 12 months, Growthpoint shares have declined 8%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Growthpoint Properties Australia delivers leasing momentum, maintains FY26 guidance appeared first on The Motley Fool Australia.

More reading

• Sims lifts outlook as North American metals drive gains
• Flight Centre updates profit guidance; unveils $200m buy-back
• Meet the $1 ASX stock that’s obliterated Nvidia in the last 12 months
• Fletcher Building tips stable FY26 as divestments strengthen balance sheet
• 5 things to watch on the ASX 200 on Wednesday

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 recommended Myer. 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.

The Sims Ltd (ASX: SGM) share price is in focus today after the company upgraded its FY26 underlying EBIT forecast to $420–435 million, up from a previous range of $350–400 million.

What did Sims report?

• FY26 underlying Group EBIT expected between $420 million and $435 million (previously $350–400 million)
• Strong second-half earnings growth in North American Metals (NAM) and SA Recycling (SAR) divisions
• Sims Lifecycle Services (SLS) underlying EBIT forecast at $170–175 million for FY26
• Improved trading conditions for ferrous and non-ferrous metals globally
• Asian ferrous prices lifting, but ANZ ferrous environment remains subdued

What else do investors need to know?

The improved outlook is largely thanks to ongoing strength in non-ferrous markets and a rebound in ferrous trading conditions. Sims’ North American businesses, in particular, are on track to deliver significant earnings growth in the second half of FY26, thanks to solid operational results.

Sims Lifecycle Services continues to benefit from global demand for data centre recycling and decommissioning, although earnings distribution may vary depending on clients’ project timing. The company reminded shareholders that these estimates are unaudited, based on specific market assumptions, and more details will be revealed at the full-year results.

What’s next for Sims?

Looking ahead, Sims is well positioned to benefit from strong long-term industry trends, like the rise of data centres and the broader push towards decarbonisation and circular solutions. Management highlighted the potential for further growth, especially if current favourable conditions in non-ferrous and North American ferrous markets persist.

Investors should keep an eye on sector dynamics—particularly ANZ ferrous conditions and global steel trade flows—as these will influence Sims’ near-term performance.

Sims share price snapshot

Over the past 12 months, Sims shares have risen 89%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Sims lifts outlook as North American metals drive gains appeared first on The Motley Fool Australia.

More reading

• Growthpoint Properties Australia delivers leasing momentum, maintains FY26 guidance
• Flight Centre updates profit guidance; unveils $200m buy-back
• Meet the $1 ASX stock that’s obliterated Nvidia in the last 12 months
• Fletcher Building tips stable FY26 as divestments strengthen balance sheet
• 5 things to watch on the ASX 200 on Wednesday

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.

While most investors focus on the S&P/ASX 200 Index (ASX: XJO), there are also high-potential shares sitting outside the benchmark index and within the lesser followed ASX 300 Index.

To narrow things down, let’s look at three ASX 300 shares that analysts think could be buys now.

Catapult Sports Ltd (ASX: CAT)

The first ASX 300 share that is being tipped as a buy is Catapult.

It is a sports technology company that helps professional teams measure performance, workload, movement, and tactical data.

Its products are used by sporting teams that want better insight into how athletes train, recover, and perform. This is becoming increasingly important as elite sport becomes more data driven.

The interesting part of Catapult’s story is that it is not just selling hardware. The company is building a platform that can become more valuable as teams rely on its data and software across multiple parts of their operations.

That gives it a global growth opportunity in a specialist market where customers can be sticky if the product becomes part of their daily workflow.

Bell Potter is positive on the company and has a buy rating and $4.65 price target on its shares. This implies potential upside of approximately 52%.

Collins Foods Ltd (ASX: CKF)

Another ASX 300 share that brokers are bullish on is Collins Foods.

It is best known as a major KFC operator. It owns and operates restaurants across Australia and parts of Europe, giving it exposure to one of the world’s most recognisable quick-service restaurant brands.

The business has faced pressure from higher costs, softer consumer conditions, and margin challenges in recent times. But this is also a company with a proven operating model and exposure to a category that can remain resilient when consumers trade down from more expensive dining options.

Morgans sees a lot value at current levels and has a buy rating and $12.50 price target on its shares. This suggests potential upside of approximately 47%.

DigiCo Infrastructure REIT (ASX: DGT)

A third buy-rated ASX 300 share to consider is DigiCo Infrastructure REIT.

It gives investors exposure to data centre infrastructure. This is an area that has become increasingly important as artificial intelligence, cloud computing, and digital services require more computing capacity.

It is of course not risk-free. Data centres require significant capital, and property trusts can be sensitive to debt costs, interest rates, and investor sentiment.

But for investors wanting exposure to digital infrastructure outside the usual large-cap names, DigiCo is an option.

Bell Potter has a buy rating and $3.40 price target on its shares. This implies potential upside of approximately 33%.

The post 3 top ASX 300 shares tipped to jump 30% to 50% appeared first on The Motley Fool Australia.

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

I’d call the ASX share Propel Funeral Partners Ltd (ASX: PFP) one of Australia’s top shares. Fortunately for investors, it’s currently trading at a great price given its long-term outlook.

As the name suggests, it’s a funeral operator – the second biggest in Australia and New Zealand. It also operates cremation facilities.

While it’s a morbid idea, it does provide an important service for the Australian community.

As the chart below shows, the Propel share price is down 33% since the start of the year. I think this is a great time to consider the business.

Let’s take a look at what makes it such an appealing option right now.

Long-term tailwinds

One of the main reasons why I think it’s one of Australia’s top shares is that the business has some of the clearest, long-term tailwinds on the ASX.

Sadly, the business is required to perform a certain number of funerals each year, giving the business very defensive earnings. As the saying goes, it’s one of the certain things in life.

The number of funerals is predicted to grow in the coming years because of Australia’s ageing and growing population.

Propel says that Australian death volumes are expected to increase by 2.9% per year from 2026 to 2035 and 2.4% per year from 2036 to 2045. In other words, there’s at least 20 years of an expanding addressable market for the funeral sector.

That may not sound like a strong growth rate by itself, but we should remember that the revenue growth from higher volumes can be combined with a rising funeral price over the long-term.

Between FY15 and the first half of FY26, its average revenue per funeral grew at a compound annual growth rate (CAGR) of 2.8%. When you combine mid-single-digit revenue growth, with the potential for rising profit margins from increased scale and solid dividend payments, I think that can translate into a pleasing average total shareholder return (TSR) annually over the long-term.

Valuation

Using the forecast on CMC Invest, the business is trading at 21x FY27’s estimated earnings with a possible grossed-up dividend yield of 5.7%, including franking credits.

The business is expected to grow earnings by another 7% in FY28 and pay a grossed-up dividend yield of 6.1%, including franking credits, at the time of writing. Those are pleasing statistics, in my view, for one of Australia’s top shares.

For a business that could continue to grow over time, I think the current valuation for such a defensive business is fair. Plus, whilst we own it over the long term, it can pay a pleasing level of passive income during the period and deliver ‘real returns’.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Propel Funeral Partners. 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.

National Australia Bank Ltd (ASX: NAB) shares have pulled back meaningfully from their highs.

The bank’s shares are trading around $37.15 at the time of writing, well short of their 52-week high of $49.45.

That recent weakness is not hard to understand. The economic outlook is uncertain following several interest rate hikes and the property market is cooling in response to the Federal Budget.

But at today’s price, I think NAB shares are starting to look attractive for investors considering putting $5,000 to work.

The valuation looks reasonable

The first thing that stands out is the valuation. According to CommSec, NAB is expected to generate earnings per share of $2.43 in FY26 and $2.62 in FY27.

Based on the current share price, that puts the bank on roughly 15 times FY26 earnings and about 14 times FY27 earnings.

That does not look stretched to me for one of Australia’s largest banks.

The dividend outlook also looks appealing. CommSec has NAB paying dividends per share of $1.72 in FY26 and $1.78 in FY27. At the current share price, that implies dividend yields of about 4.6% and 4.8%, respectively.

Those dividends are expected to be fully franked, which could make the income even more attractive for some Australian investors.

Of course, yield alone is not enough. A bank still needs sound credit quality, disciplined lending, strong deposits, and enough capital to support the payout. But I think NAB delivers on all these.

A business bank, not just a mortgage stock

The housing market is clearly important for the major banks. If buyer demand weakens, transaction volumes slow, and mortgage growth becomes harder to find, that can weigh on sentiment toward the sector.

But NAB has an important point of difference: business banking. In its recent half-year update, Business and Private Banking generated $1.85 billion of cash earnings excluding large notable items. That was around half of the group’s cash earnings on the same basis.

That is a meaningful contribution. It means NAB is not simply dependent on the household mortgage cycle. The bank has large exposure to businesses that need loans, deposits, transaction banking, working capital, merchant services, and advice through changing conditions.

That does not remove risk. If the economy weakens, business customers can also come under pressure. But I think NAB’s business banking strength gives it a broader earnings base than investors may appreciate when the market is focused mainly on housing.

Foolish Takeaway

I think NAB shares are worth considering at current levels.

The housing market backdrop is not perfect, and investors should expect some uncertainty to continue. But the share price has already fallen a long way from its 52-week high, and the valuation now looks much more reasonable.

What makes NAB particularly interesting to me is the business banking exposure. If mortgage lending becomes more difficult, that part of the group could help support earnings and give the bank more than one path to growth.

So, would I invest $5,000 into NAB shares? At today’s price, I would be comfortable doing so as part of a diversified ASX share strategy.

The post Should I invest $5,000 into NAB shares? appeared first on The Motley Fool Australia.

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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 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 Flight Centre Travel Group Ltd (ASX: FLT) share price is in focus today after the company updated its FY26 profit guidance and announced a new $200 million on-market share buy-back. FLT now expects underlying profit before tax (UPBT) of $275 million to $295 million—roughly in line with last year’s $286 million result.

What did Flight Centre Travel Group report?

• FY26 UPBT guidance revised to $275m–$295m (FY25: $286m), down from the previous $310m–$345m target
• Conflict in the Middle East is expected to reduce Q4 leisure earnings by around $50m
• Corporate business remains strong, set for year-on-year profit growth
• Adverse FX impacts of $5m–$10m expected due to a stronger Australian dollar
• Up to $200 million on-market share buy-back to commence

What else do investors need to know?

Flight Centre says the downward revision is due to temporary, conflict-driven disruption—mainly hitting international leisure travel in the fourth quarter. The recently agreed Middle East peace deal should help conditions recover going into FY27, but it won’t have much impact on the current year given the timing.

The company’s global corporate division is less affected and continues to deliver strong profit growth. Cost-saving initiatives are underway, including discretionary spending cuts and a pause on non-essential hiring, balanced with ongoing investment in growth sectors like luxury, cruises, and tours.

What did Flight Centre Travel Group management say?

Managing director Graham Turner said:

The change in our short-term expectations reflects a temporary, conflict-driven headwind layered over what was shaping as a very solid year.

It has been driven by an external shock – the Middle East conflict disrupting peak leisure travel – not by a deterioration in our underlying business. Group-wide, the company delivered almost 10% UPBT growth across the first three quarters of FY26, accelerating to ~20% growth during Q3. Even after absorbing Q4 disruption, the group still expects an underlying profit broadly in line with FY25. Looking ahead, we have strong foundations and growth prospects in both the leisure and corporate sectors. This is reflected in the Board’s decision to launch a new up-to-$200m buy-back – which clearly signals that we see our shares as undervalued at current levels.

What’s next for Flight Centre Travel Group?

Flight Centre is rolling out a number of AI-driven initiatives to boost productivity and enhance customer experience, including new corporate travel assistants and smarter leisure booking tools. The company is staying disciplined on costs while continuing to invest in high-potential areas like cruise, tours, and loyalty programs.

Looking ahead to FY27, management is optimistic, expecting a rebound as travel patterns normalise and peace returns to the Middle East. The newly announced share buy-back signals confidence in Flight Centre’s medium-term growth profile.

Flight Centre Travel Group share price snapshot

Over the past 12 months, the Flight Centre shares have declined 6%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Flight Centre updates profit guidance; unveils $200m buy-back 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 recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial 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.

If I had $2,500 to invest in Vanguard exchange-traded funds (ETFs), I would look for exposure to parts of the global market that are harder to capture through ASX shares alone.

Australia has plenty of high-quality businesses. But some of the biggest long-term opportunities are tied to regions, industries, and companies that sit well beyond the local market.

With that in mind, there are two Vanguard ETFs I would consider buying.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

The first ETF I would buy is the Vanguard FTSE Asia Ex-Japan Shares Index ETF.

I like this fund because it gives investors a different type of global exposure. Many international ETFs are heavily weighted to the United States. That is not a bad thing, given the quality of many US companies. But I think investors can benefit from having exposure to Asia as well.

This part of the world is home to large populations, rising middle-class spending, major technology platforms, financial services groups, advanced manufacturing, and important semiconductor supply chains.

The VAE ETF gives investors access to companies across markets such as China, Taiwan, India, South Korea, Hong Kong, Singapore, and other parts of the region. That mix can add something quite different to a portfolio.

It is worth remembering that Asian markets can be affected by regulation, politics, currency movements, trade tensions, and shifts in global investor appetite. This could mean that some years could be frustrating. But I think the long-term case remains attractive.

Asia is likely to remain a major driver of global economic growth. Consumers in the region are spending more, companies are becoming more sophisticated, and several markets have industries that are difficult to replicate elsewhere.

For investors with patience, I think this Vanguard ETF offers a great way to own a broad slice of that opportunity without trying to pick individual winners.

Vanguard Global Technology Index ETF (ASX: VTEK)

The second ETF I would buy is the Vanguard Global Technology Index ETF.

Technology is one of the areas where I think global exposure is particularly useful.

The ASX has some strong technology names, but the deepest pool of global technology leaders sits overseas. This Vanguard ETF gives investors access to companies involved in semiconductors, software, cloud computing, digital platforms, artificial intelligence (AI), payments, hardware, and communications technology.

What I like about this fund is that it is not just about one hot trend. Technology keeps spreading into more parts of the economy, from the software banks use to manage security and payments to the digital platforms retailers need for online sales, logistics, and customer data. Healthcare, manufacturing, and consumer services are also becoming more dependent on chips, cloud infrastructure, automation, and connected devices.

That gives the sector several paths for long-term growth.

The VTEK ETF can also help investors avoid the pressure of choosing one technology winner. That is important because the industry changes quickly. Today’s leader may not always be tomorrow’s strongest performer.

By owning a basket of global technology companies, investors can gain exposure to the broader direction of the sector rather than relying on one stock to get everything right.

Foolish takeaway

If I were putting $2,500 into Vanguard ETFs, I would want more than broad exposure for the sake of it.

I would want funds that open the door to markets and industries where long-term growth could be substantial, but where picking individual winners can be hard. Asia and global technology both fit that description for me.

Both ETFs will have weak periods. But for investors willing to look beyond the ASX and think in decades, I think they could be excellent options to buy and hold.

The post Why I’d put $2,500 into these top Vanguard ETFs appeared first on The Motley Fool Australia.

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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 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.

Nvidia Corp (NASDAQ: NVDA) shares have delivered strong returns in the last 12 months, but there are ASX stocks that have outperformed the US giant that’s key to enabling AI. The Australian share I want to highlight is L1 Group Ltd (ASX: L1G), which has a share price of around $1.

At the time of writing, in the last 12 months, Nvidia shares have gone up by 47%, while the L1 Group share price has jumped by 108%.

Why has the ASX stock risen so much?

I believe a significant portion of the return can be put down to the acquisition of/merger with Platinum Asset Management. Investors are much more excited about the outlook of the business under L1’s management than Platinum.

L1 has an impressive track record, delivering outperformance with its ASX shares, global shares and gold shares strategies, with each of those significantly outperforming the S&P/ASX 200 Index (ASX: XJO) since the inception of those respective strategies.

Having a good investment performance as a fund manager is integral for a couple of key reasons. Firstly, it organically helps a fund manager grow their funds under management (FUM) – an essential driver of revenue and earnings.

Additionally, great fund performance can help attract new FUM inflows, further boosting the ASX stock’s FUM.

One of the latest moves by the business was to launch the listed investment company (LIC) L1 Gold Fund (ASX: LGF), which raised $950 million and started trading on the ASX in April. This helps lock in more funds within a closed structure, as opposed to exchange-traded funds (ETFs) which are open-ended where it’s easy for clients to permanently remove FUM from a fund manager. Shares of LICs are sold from one investor to another – the FUM still exists.

Out of L1 Group shares or Nvidia shares, I think I’d prefer the funds management business.

Excellent outlook

Nvidia is certainly a great business, operating at the pinnacle of one of the strongest growth areas of the global economy right now.

But, it’s worth asking how much more demand can continue increasing from where it is today and what the price/earnings (P/E) ratio is implying.

L1 Group points to a number of appealing growth areas including growth of existing funds through performance and flows, extension of strategies from the existing investment team (such as L1 Global Long Short Fund Ltd (ASX: GLS) ), joint ventures and potentially further acquisitions of existing fund managers.

Further growth of the ASX stock’s profit could be boosted following the integration of Platinum and the synergies that’s expected to deliver.

According to the forecast on Commsec, the ASX stock is valued at less than 20x FY27’s estimated earnings, with FY27 profit projected to rise by approximately 25% year-over-year compared to the forecast for FY26.

The post Meet the $1 ASX stock that’s obliterated Nvidia in the last 12 months appeared first on The Motley Fool Australia.

More reading

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• SpaceX shares are rocketing – how can Aussie investors get exposure?
• 5 things to watch on the ASX 200 on Wednesday
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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 Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A $2,000 monthly passive income stream would be useful for many investors.

It could help cover groceries, utilities, insurance, travel, or part of a mortgage. It could also make retirement feel a lot more comfortable.

But how could an investor realistically build it? Let’s dig deeper into things.

Build the passive income machine

Aiming for $2,000 a month means aiming for $24,000 a year in passive income.

If an investor can build a portfolio with an average dividend yield of 5%, they would need approximately $480,000 invested to generate that level of income.

However, it is worth noting that ASX dividends do not usually arrive neatly every month. Many companies pay dividends twice a year, while some trusts and ETFs pay quarterly or monthly distributions. So this is best viewed as an average monthly income target, not a monthly payment schedule.

There are a number of ASX income options that could help investors achieve a dividend yield around this level.

This includes HomeCo Daily Needs REIT (ASX: HDN), which offers exposure to everyday-needs property assets and Universal Store Holdings Ltd (ASX: UNI), which offers a higher-yielding retail option.

In addition, APA Group (ASX: APA) is a high-yield option that provides exposure to energy infrastructure, and Harvey Norman Holdings Ltd (ASX: HVN) can offer attractive fully franked dividends when conditions support them.

Investors could also look at an income-focused ETF such as the Vanguard Australian Shares High Yield ETF (ASX: VHY), which provides exposure to a basket of higher-yielding ASX shares.

But it is important to note that a dividend yield should never be the only consideration. A 5% target is useful, but the income still needs to be sustainable. Dividends can be cut, distributions can change, and share prices can fall.

That is why a passive income portfolio should be built around quality, diversification, and financial strength, not just the highest yield on the screen.

What if you are starting from zero?

Of course, many investors will not have $480,000 ready to invest.

That changes the game. The first goal is not to generate the income immediately, it will be to build the capital base that can later produce the income.

This is where regular investing can do the heavy lifting.

If an investor starts from zero, invests $1,000 a month, and achieves an average annual return of 10%, they could build a portfolio worth approximately $480,000 in just over 16 years.

That return is not guaranteed, but it is in line with historical returns.

Which shares should you buy at this stage?

Dividend shares may not be the best way to deliver on our target return. High-yield shares can be useful once the income portfolio is built, but they may not deliver the strongest total returns during the accumulation phase.

Instead, investors may want to focus on quality ASX shares that can compound over time.

That could include Goodman Group (ASX: GMG), which has exposure to logistics, industrial property, and data centres, and Wesfarmers Ltd (ASX: WES), which has a strong portfolio of retail and industrial businesses.

In addition, tech stocks WiseTech Global Ltd (ASX: WTC) and Xero Ltd (ASX: XRO) could be great long-term options for Aussie investors.

The idea is to build the engine first. Once the portfolio reaches the required size, investors can gradually shift more attention toward income, dividends, and cash flow.

That may not happen overnight. But with patience, regular investing, and a focus on quality, a $2,000 monthly passive income stream from ASX shares can become a realistic long-term goal.

The post How to make $2,000 of monthly passive income from ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Goodman Group, Universal Store, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Wesfarmers, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Apa Group, Harvey Norman, WiseTech Global, and Xero. The Motley Fool Australia has recommended Goodman Group, HomeCo Daily Needs REIT, Universal Store, Vanguard Australian Shares High Yield ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I’ve been investing in ASX shares for years now, longer than I care to admit to be frank. It has been one of the most rewarding experiences of my life, not just financially, but intellectually too.

Investing in shares can never truly be mastered. Even Warren Buffett freely admitted to making mistakes late in his career at Berkshire Hathaway. The constant journey of learning keeps one on their toes, and, although mistakes can have a real financial impact, they are part of that ultimately rewarding learning curve too.

I have made more than a few mistakes when it comes to ASX share investing over the years. Some of the most egregious include buying Slater & Gordon shares only to see the company go bankrupt, and participating in the Raiz Invest Ltd (ASX: RZI) IPO and getting wiped out.

But today, I’d rather discuss one of the challenges of investing that I have had to overcome. This challenge will confront everyone who buys ASX shares, and can either make or break your portfolio and your long-term returns.

This challenge is not learning how to decipher a balance sheet, or knowing which sticks will shoot the moon. It is far more simple than that. It is the simple act of doing nothing.

One of the most under-appreciated aspects of investing is that the act of buying an owning shares seems to elicit a need to attend to them. To buy more or sell down, to move our money around and ‘react’ with agility to whatever is happening in the world.

When Donald Trump announced a tentative peace deal, all we hear is that investors are buying shares like crazy. Conversely, we investors are the first to hear about “$50 billion wiped off the share market as US-Iran war escalates”.

The hardest part of investing in ASX shares

This implies that we, as investors, should be doing something similar. Surely one isn’t a real investor if one isn’t constantly dipping in and out of shares. Or selling high, buying low, pruning their portfolios, or even jumping into the latest IPO.

If your job is trading stocks or assets, then this might be acceptable. But for the average investor who just wishes to slowly-but-surely build wealth by investing in Australian businesses over long periods of time, I am of the firm belief that less is more. Quality businesses adapt to their circumstances. They tend to survive when times are tough, and thrive when the proverbial sun is shining.

To be a successful investor means trusting the companies themselves to deliver, not that the market will always give you the stock price you might want to see. As Warren Buffett once said:

If you have to closely follow a company, you shouldn’t own it… If you buy a farm, do you go and look every couple of weeks to see how far the corn is up, or whether people say this might be a year of low prices? No, you buy a farm and hold it. I bought a farm in the ’80s and I’ve been there once. It doesn’t grow faster if I go there and stare at it or cheer for it.

I think most ASX share investors, and especially those who just invest in index funds, should adopt this attitude. Trading based on what is happening around the world will almost certainly whittle down your capital and returns.

Sure, if a company is fundamentally disrupted or makes a calamitous management error, you may want to think about selling its shares. Just as Buffett would for his farm if it was discovered that corn was somehow carcinogenic.

However, most of the time, doing nothing is probably the right course of action. Even if it can be the hardest course to take.

The post The hardest part of ASX share investing (that no-one talks about) appeared first on The Motley Fool Australia.

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