The All Ordinaries Index (ASX: XAO) has returned 6.9% over the past 12 months, with ASX All Ords gold stock Strickland Metals Ltd (ASX: STK) leaving those gains in the dust.

Strickland Metals shares closed on Wednesday trading for 20.5 cents apiece. That sees the share price up a sizzling 169.7% since 28 January 2025, when you could have snapped up shares for just 7.6 cents each.

As you can likely guess, the record smashing gold price counts among the tailwinds that have been sending the ASX All Ords gold stock surging. On Wednesday, gold was trading for US$5,180 per ounce, putting the yellow metal up 89% in 12 months.

Investor interest has also been roused by a series of exploratory drilling successes at the company’s 100%-owned 8.6-million-ounce gold equivalent Rogozna Project, located in Serbia.

And with further drilling results pending and potentially driving a resource upgrade, the analysts at Canaccord Genuity believe the next 12 months could be even more profitable for shareholders.

Here’s why.

ASX All Ords gold stock hits rich new intercepts

Last week, on 20 January, Strickland Metals reported on the latest assay results from its 5.3-million-ounce gold equivalent Shanac Deposit. Shanac sits within the broader Rogozna Project.

Top results reported by the ASX All Ords gold stock included 37.2 metres at 1.1 grams of gold equivalent per tonne from 284.4 metres, and 113.4 metres at 1.7grams of gold equivalent per tonne from 451.0 metres.

Strickland managing director Paul L’Herpiniere was clearly pleased with the assays. He said:

The three diamond holes reported in this announcement all returned outstanding zones of strong copper-gold mineralisation, reinforcing the scale, quality and potential of our cornerstone ~5.3Moz AuEq Shanac Deposit.

L’Herpiniere noted that the latest results will contribute towards an updated Mineral Resource Estimate for Shanac, which the company said remains on track to be reported later this quarter.

Encouragingly, Strickland remains well-funded for its 2026 exploration program. The miner reported holding cash and liquid investments of $38.2 million at the end of the December quarter.

What is Canaccord saying?

In a new report following on the ASX All Ords gold stock’s latest drilling results, Canaccord said:

Recent assay results from three diamond drill holes continue to demonstrate the presence of both bulk-tonnage mineralisation and discrete higher-grade zones within the central and southern domains of the deposit.

As for what could help boost Strickland Metals shares in the months ahead, the broker added:

Drilling at Shanac concluded in late December 2025, with multiple assays still pending across the broader Rogozna Project. These results, together with recent drilling, are expected to underpin a material update to the Shanac resource according to STK.

Connecting the dots, Canaccord has a speculative buy rating on the ASX All Ords gold stock with a 65-cent price target.

That represents a potential upside of 217% from Wednesday’s closing price.

The post Why this rocketing ASX All Ords gold stock is forecast to leap another 217% appeared first on The Motley Fool Australia.

More reading

• Up 169% in a year, why is this ASX All Ords gold stock jumping again today?

Motley Fool contributor Bernd Struben 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.

Many investors who scour the ASX for the best sources of dividend income will opt to add Westpac Banking Corp (ASX: WBC) shares to their portfolios. As an ASX bank stock, and one of the big four no less, Westpac has a strong and deserved reputation as one of the ASX’s most reliable providers of fat, fully franked dividends.

It has also built a reputation as a strong ASX performer in recent years. As recently as late 2023, Westpac shares were going for just over $20 each. Today, those same shares will set an investor back $38.87 (as of yesterday’s close). The bank has traded as high as $41 late last year. That means Westpac shares have almost doubled between late 2023 and late 2025.

While this rise has been wonderful for existing investors, it has also had the less-than-desirable effect of reducing the bank’s dividend yield. Remember, a stock’s dividend yield is a function of two underlying metrics. The first is the raw dividends per share that the stock pays each year. The second is the share price. So even though Westpac raised its raw dividends over 2025, the dividend yield on its shares dropped dramatically thanks to its enthusiastic share price performance.

But let’s talk about those raw dividends. Last year, Westpac forked out two dividend payments, as is its habit. The first was the June interim dividend worth 76 cents per share. The second, the December final dividend which came in at 77 cents per share. Both payments came fully franked, and both represented increases of 1 cent per share over the previous year’s corresponding dividend.

How much income will Westpac’s dividend provide in 2026 and beyond?

This annual total of $1.53 in dividends per share gives Westpac a trailing dividend yield of 3.94% today. That’s based on yesterday’s closing share price of $38.87.

However, trailing dividend yields reflect the past, and are not a guide to future income.

Of course, we won’t know exactly how much Westpac will dole out in dividends in 2026 until the bank reveals its two dividends later in the year.

However, we can look at what some analysts are predicting.

Earlier this week, my Fool colleague Tristan looked at what kind of dividends analysts are pencilling in from Westpac over the next few years.

In some good news for income investors, these analysts are predicting that Westpac will be able to raise its dividend to $1.575 over FY2026, rising to $1.60 per share by FY2027 and then to $1.65 by FY2028. If these numbers do turn out to be accurate, they would give Westpac shares forward dividend yields of 4.05%, 4.12% and 4.24% respectively. Let’s see what this ASX 200 banks tock reveals later this year.

The post Buying Westpac shares today? Here’s the dividend yield you’ll get appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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.

I don’t take broker recommendations at face value, but I do pay attention when expert views line up with improving fundamentals and sensible execution. In those cases, broker commentary can help validate whether momentum is real or just sentiment-driven.

These are three ASX shares where recent expert views make sense to me, and where I can see why analysts are comfortable recommending a buy.

Guzman Y Gomez Ltd (ASX: GYG)

Guzman Y Gomez is still relatively new to the ASX, but it’s already showing signs of the operational discipline I like to see in growing consumer brands.

Morgans recently reiterated its buy recommendation with a $32.30 target price, pointing to the launch of the BBQ Chicken Double Crunch as a positive development. The broker said early feedback suggests the product is “one of GYG’s more indulgent menu items” and that taste tests have been “overwhelmingly positive”.

What stands out to me is Morgans’ point that the product “leverages existing ingredients, meaning no incremental complexity or cost for stores”. That’s exactly the kind of innovation I like. Driving same-store sales without adding operational friction is a powerful lever, especially in a scaled restaurant business.

Morgans also noted that management has “repeatedly emphasised that menu innovation is a key lever for same-store sales growth”, and I agree this launch reinforces that message.

NextDC Ltd (ASX: NXT)

NextDC continues to benefit from strong demand for data centre capacity, and recent updates help explain why brokers remain constructive.

Ord Minnett has a buy recommendation and a $20.50 target price after noting that contracted utilisation has risen to 316 megawatts. That represents an increase of 71 megawatts, or 29%, since 30 June. It has since increased further as per this update.

What I find compelling is Ord Minnett’s observation that NextDC had only guided to 50 to 100 megawatts of contract wins for FY26. Against that backdrop, the latest update already looks like an early beat. The broker also highlighted “strong demand from both western and eastern hyperscalers”, which supports the broader industry tailwinds.

Ord Minnett said the announcement “bodes well for the full-year outcome” and lifted its target price to reflect this and the assumed value of an agreement with OpenAI, while sensibly leaving earnings estimates unchanged due to limited detail. That balance between optimism and caution feels reasonable to me.

Hub24 Ltd (ASX: HUB)

Hub24 is a familiar name and Bell Potter’s latest commentary reinforces why it continues to attract buy recommendations.

The broker described the second-quarter update as “solid”, noting that Hub24 delivered the highest quarterly inflow on record. Net inflows of $5.6 billion exceeded consensus expectations, supported by strong gross inflows and low outflows.

Bell Potter’s channel checks indicate Hub24 “continues to rank first for future flow intentions”, which I think is an important point. It suggests momentum is not just backward-looking, but supported by adviser demand going forward.

The broker also highlighted that flow growth excluding transitions is accelerating and that the business is tracking toward its custodial funds under administration targets. While the shares are trading on around 32 times FY27 EBITDA, Bell Potter views this as “around medium-term averages” given visibility and strategic progress and has a buy recommendation and $125.00 target price. I tend to agree with that assessment.

Foolish takeaway

In all three cases, the expert optimism feels grounded rather than speculative. Whether it’s margin-friendly menu innovation at Guzman Y Gomez, accelerating contract wins at NextDC, or sustained platform momentum at Hub24, the common thread is execution.

I don’t think expert views should ever replace independent thinking. But when they align with improving data points and a clear strategy, I think they’re well worth listening to.

The post Why I think these buy-rated ASX shares could be top picks appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Guzman Y Gomez and Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Cettire Limited (ASX: CTT) made a splash when it listed on the ASX in 2020, hailed as a local e-commerce success story. But in ensuing years, the company has experienced inconsistent profitability and significant market headwinds.

So, after recent share price falls, is Cettire worth a look?

The Melbourne-based online retailer offers consumers access to over 2,500 luxury brands, such as Versace, Gucci and Dolce & Gabbana, by sourcing supply through a grey-market approach. This drop-shipping model means it holds no inventory, enabling it to manage costs and scale rapidly.

In 2020, this cost-effective model and strong tailwinds in the online retail sector generated significant market buzz. However, this hasn’t translated to the profit results investors were hoping for.

For some investors, a history of strong revenue growth, a solid repeat customer base, and consistent momentum in the online retail sector all leave potential for a turnaround.  For others, the headwind of US tariffs, inconsistent profitability and demand volatility in the luxury goods market put it out of contention.

FY25 saw Cettire swing to a loss  

In FY25, Cettire posted gross revenue of $975.3 million, stable against $978.3 million in FY24. Profitability, however, declined sharply, from $10.5 million in net profit after tax in FY24 to a net loss after tax of $2.6 million. And while it continued to hold no financial debt, Cettire’s cash position dropped from $79 million in FY24 to $37.1 million.

In the FY25 Annual Report, Cettire Founder & CEO, Dean Mintz, pointed to several headwinds contributing to the results, including persistent inflation, trade and geopolitical tensions, consumer price fatigue, and general financial market volatility.  

He went on to highlight that the greatest opportunities moving forward lie in increased penetration and a localisation strategy:

Right now, the greatest growth opportunity for Cettire continues to be driving increased penetration within our existing category and geographic footprint, further strengthening our overall scale as well as diversification. Cettire’s localisation strategy is a critical enabler of this opportunity. recent developments in US trade policy have re‑affirmed our conviction in the localisation strategy, which provides the platform to drive revenues beyond the U.S. market.

And this makes sense. Emerging markets accounted for 37% of Cettire’s gross revenues in FY25, and Asian and Middle Eastern regions were reported to have delivered ‘outsized growth’, with successful launches in Kuwait and Bahrain, two markets that remain strong consumers of luxury goods despite overall sector decline.

It’s worth noting that upon the release of this report, Mintz and CFO Tim Hume both received salary increases. Cettire’s Change to Executive Remuneration Terms, released on 29 August 2025, cited the company’s significant growth in scale and complexity and no ‘material amendments’ to remuneration in the five years prior.

So what’s happened since?

In Q1 FY26, Cettire reported gross revenue of $196.7 million, a 1% decrease on the prior corresponding period (PCP). In addition, its active customer base fell 8% against the PCP. That said, repeat consumers accounted for 68% of gross revenue, indicating an engaged customer base. 

It will be interesting to see if indicators are more promising in its next update, expected by mid to late February 2026.

Is Cettire a buy right now?

For me, it’s not a buy as it stands. It has some potential for a turnaround if its localisation strategy is well-executed. However, Cettire’s FY25 results, a challenging market and the decision to increase executive salaries in this climate leave me wary.

Of course, it’s possible that Cettire outperforms from here. But in my view, it’s a play best only considered by investors with a deep understanding of the luxury goods market who can see a clear pathway to profitability.

The post Dressed for success or fashion fail: Is Cettire a buy right now? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why this rocketing ASX All Ords gold stock is forecast to leap another 217%
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• Why I think these buy-rated ASX shares could be top picks
• After rising 22% this month, it could be time to sell this booming ASX materials stock

Motley Fool contributor Melissa Maddison 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.

Stanmore Resources Ltd (ASX: SMR) has been one of the best ASX materials stocks to own in 2026. 

Since the start of the year it has risen an impressive 22.08%. 

For context, the S&P/ASX 200 Index (ASX: XJO) is up 2.36% in the same period. 

However, yesterday this ASX materials stock fell 2.33%. 

This was despite reporting a record December quarter coal production and strong cash generation on January 27.

Investor sell-off  

Stanmore Resources is an Australian coal producer with operations and exploration projects in the Bowen and Surat Basins in central and southern Queensland.

It is one of Australia’s largest suppliers of metallurgical coals to global markets with three major assets including the Isaac Plains complex and the Poitrel and South Walker Creek coal mines.

Stanmore also has a 50% ownership stake in the Millennium and Mavis Downs mines.

Its most recent quarterly report included: 

• Record quarterly run-of-mine (ROM) coal production of 6.0 million tonnes (Mt), saleable production of 3.9Mt, and sales of 4.0Mt
• Full-year saleable coal production of 14.0Mt.
• Net debt reduced by US$57 million in Q4
• Total liquidity climbed to US$482 million at 31 December 2025
• Serious Accident Frequency Rate for the year was 0.33, significantly below industry benchmarks
• Average sales price achieved was US$133 per tonne, with a late-quarter rally in coal markets

Despite these results, investors have been trimming their positions in this ASX materials stock over the last couple of days. 

The stock price has dropped almost 4% since Tuesday’s open. 

What’s Morgans’ view?

The team at Morgans have provided fresh guidance for this ASX materials stock following its quarterly results. 

The broker highlighted that Stanmore Resources delivered record quarterly results in 4Q25 across run-of-mine (6.0Mt), saleable product (3.9Mt) and product sales (4.0Mt) whilst dealing with unseasonably high rainfall.

Increased sales helped operational cash flow that saw total cash increase to US$212m and net debt reduced by US$57m to US$33m. 

Morgans said the Isaac Downs site is expected to deliver materially lower output in 2026 as mining progresses deeper into the pit and approaches less economic zones. 

Poitrel’s production is also forecast to ease after a standout 2025 performance. 

Based on this guidance, Morgans has downgraded its recommendation to TRIM. 

It also has a revised target price of $2.95ps. 

It would appear based on this target that this ASX materials stock is fully valued, after closing yesterday at $2.93 per share. 

Our target for SMR is set at a discount to NPV to reflect opacity in the short-term coal price outlook.

The post After rising 22% this month, it could be time to sell this booming ASX materials stock appeared first on The Motley Fool Australia.

More reading

• Stanmore Resources delivers record December quarter coal production and strong cash generation

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

Income investing should make life simpler, not more stressful. The goal is not to chase the highest dividend yield on offer, but to build a portfolio that can keep paying through different market conditions without requiring constant attention.

For me, building income without losing sleep comes down to focusing on predictability, resilience, and restraint. Here is how I think about it.

Start with businesses that provide essential services

The first step is to focus on ASX shares that sell or provide services that people rely on, regardless of economic conditions. These are businesses tied to everyday needs rather than discretionary spending.

Infrastructure, communications, and utilities tend to fit this profile. Demand may fluctuate at the margins, but the underlying services remain necessary. That provides a strong foundation for ongoing cash flow generation, which is what ultimately supports dividends.

This is why companies like APA Group (ASX: APA) often appeal to income-focused investors. Its assets underpin energy delivery rather than competing for consumer attention. That distinction matters when markets become unsettled.

Look beyond the headline yield

A high dividend yield can be tempting, but it is rarely the full story. In some cases, a generous yield reflects genuine cash generation. In others, it reflects a falling share price or unsustainable payout ratio.

I prefer to look at how dividends are funded. Stable cash flows, long-lived assets, and sensible payout ratios tend to support more reliable income over time. Modest but repeatable dividends are often easier to live with than high yields that come with uncertainty.

That mindset shifts the focus from short-term income maximisation to long-term consistency.

Prioritise balance sheet strength

Debt is not automatically a problem, particularly for capital-intensive businesses. But it does increase risk if conditions deteriorate.

When assessing income stocks, I pay attention to whether a company has room to absorb higher costs, lower volumes, or unexpected disruptions. Strong balance sheets and manageable debt profiles reduce the risk of dividend cuts during tougher periods.

Infrastructure operators such as Transurban Group (ASX: TCL) often illustrate this balance. Their assets are expensive to build and difficult to replace, but long concession periods and predictable usage patterns help support financing over time.

Accept that boring can be a feature

Some of the most dependable ASX income stocks are also the least exciting. They operate in mature industries and grow slowly. Think Telstra Group Ltd (ASX: TLS) or Commonwealth Bank of Australia (ASX: CBA).

I think that is often a positive for income investors. Stable demand and incremental improvement can be more valuable than rapid expansion when the priority is regular cash returns.

Telecommunications is a good example. Companies like Telstra serve a broad customer base with services that have become part of daily life. While growth may be limited, the consistency of demand can support ongoing distributions.

Diversify ASX income sources

Relying on a single company or sector for income can increase stress, in my opinion. Regulatory changes, operational issues, or industry shifts can affect even the most reliable businesses.

Spreading income across different sectors helps reduce reliance on any one outcome. Infrastructure, financials, consumer staples, and communications often respond differently to economic changes, which can smooth income over time.

Diversification does not eliminate risk, but I think it can make income streams more resilient.

Foolish Takeaway

Building income without losing sleep is less about chasing opportunity and more about avoiding unnecessary risk. By focusing on essential services, sustainable cash flows, sensible balance sheets, and diversification, investors can build income portfolios that feel manageable even when markets are volatile.

The post How to build income on the ASX without losing sleep at night appeared first on The Motley Fool Australia.

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

The market may be nearing its record high, but that doesn’t mean there aren’t cheap ASX shares out there for investors to buy.

For example, the team at Bell Potter recently identified two ASX 200 shares that it thinks are being undervalued by the market at present.

Let’s see what it is saying about these shares:

CAR Group Ltd (ASX: CAR)

CAR Group is an ASX 200 share that is highly rated by Bell Potter. It operates leading online automotive classifieds platforms across Australia and offshore markets. These platforms benefit from strong network effects, where buyers attract sellers and vice versa, reinforcing market leadership over time.

Bell Potter believes CAR Group can continue growing earnings through pricing power, product enhancements, and international expansion. Even when vehicle sales volumes fluctuate, the company’s dominant platforms and recurring revenue streams help support long-term value creation.

Commenting on the company, the broker said:

CAR is trading around two-year lows at a P/E of ~28x, despite a defined product rollout map to drive value from its market-leading networks in its large, addressable markets, which includes C2C payments, pay-per-lead model, regional expansion and scope to develop market-based legacy advertising practices, underpinning a steady growth profile in our forecast EPS through FY26e-FY28e.

Bell Potter has a buy rating and $42.20 price target on its shares.

Elders Ltd (ASX: ELD)

Elders provides a very different type of exposure, one tied to Australia’s agricultural sector.

This ASX 200 share offers a range of services to farmers, including agency, livestock, wool, real estate, and financial products. This diversified model allows Elders to benefit from activity across multiple parts of the rural economy rather than relying on a single commodity or season.

Bell Potter’s positive view reflects Elders’ scale, national footprint, and strong position in agribusiness services. As conditions normalise across parts of the agricultural cycle, the broker believes Elders is well placed to deliver earnings resilience and attractive returns over time. It said:

We see encouraging signs for FY26e, with livestock turnoff values up ~35% YOY through 1Q26TD, stable to rising crop protection active ingredient values and modestly higher fertiliser price indicators. A more normal selling pattern in FY26e, delivery on SYSMOD and backward integration initiatives, sector activity tailwinds and consolidation of Delta are expected to drive high double-digit EPS growth in FY26-27e. This view does not look reflected in the current share price, with ELD trading at ~11x FY26e EPS.

Bell Potter has a buy rating and $9.45 price target on its shares.

The post Why these ASX 200 shares could be dirt cheap appeared first on The Motley Fool Australia.

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

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 exposure to the booming defence sector for your portfolio, then the ASX stocks in this article could be worth considering.

That’s because analysts at Bell Potter think they are investment weapons with very bright futures. Here’s what the broker is recommending:

Electro Optic Systems Holdings Ltd (ASX: EOS)

The first ASX defence stock that Bell Potter is bullish on is defence and space company EOS.

Following the release of a stronger than expected fourth quarter update, the broker has retained its buy rating and $12.00 price target on the ASX defence stock.

As a market leader in C-UAS solutions, Bell Potter believes the company is well-placed to be a big winner from increased spending on these technologies. It explains:

We retain our Buy rating and raise our TP to $12.00. EOS is positioned as a market leader in C-UAS solutions, particularly in directed energy, and is leveraged to increasing budget allocations to C-UAS technologies. We see positive news flow over the next 6 months stemming from C-UAS and RWS contract awards. At 44x CY26e EV / EBITDA, EOS trades at a 26% discount to the Global drone peer group mean.

Elsight Ltd (ASX: ELS)

Bell Potter is also feeling very positive about Elsight, which is a supplier of communication modules to drone original equipment manufacturers (OEMs).

In response to its quarterly update, the broker has retained its buy rating on the ASX defence stock with an improved price target of $5.50.

It believes that Elsight has developed a market leading product and is well-positioned to benefit from growth in the unmanned systems industry. It said:

We retain our Buy rating. We believe ELS has developed a market leading product that is fully leveraged to the emerging use of unmanned systems in both a defence and commercial context. In CY26e, we expect ELS to be a beneficiary of downstream demand from global defence departments, supporting our 70% hardware sales revenue growth estimate.

We believe ELS shares offer relative value at 37x CY26e EV/EBITDA given its recurring revenue, capital-light business model, relative valuation vs. other drone exposed stocks (42% discount to mean of global peers) and long runway of growth. We believe ELS can close this valuation gap via a broadening in its customer base (an estimated >80% of revenue generated from one customer in CY25e). We view ELS as a prime candidate for an OEM looking to vertically integrate.

The post Broker says these ASX defence stocks are investment weapons appeared first on The Motley Fool Australia.

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• Up 50% in 2026. This ASX tech stock just delivered another record quarter
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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 Electro Optic Systems. 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.

These days, building a passive income stream does not have to mean picking individual dividend ASX shares.

ASX exchange trade funds (ETFs) make it possible to access diversified income streams in a simple, low-maintenance way. By combining different income styles, investors can spread risk while still targeting regular payouts over time.

Here are five ASX ETFs that could be worth considering for passive income investors.

Vanguard Australian Shares Index ETF (ASX: VAS)

The first ETF to consider is the Vanguard Australian Shares Index ETF. While it is not designed specifically for income, this ASX ETF provides exposure to the broad Australian share market, which has historically been one of the more generous dividend markets globally. Banks, miners, and industrials all contribute to a steady stream of distributions, often with franking credits attached.

Betashares S&P Australian Shares High Yield ETF (ASX: HYLD)

Another ASX ETF to look at is the Betashares S&P Australian Shares High Yield ETF. It focuses on higher-yielding Australian shares, using a rules-based approach to tilt the portfolio toward companies paying above-average dividends. It offers a more income-focused alternative to broad market ETFs. It was recently recommended by analysts at Betashares.

Betashares S&P 500 Yield Maximiser Complex ETF (ASX: UMAX)

A different style of passive income comes from the Betashares S&P 500 Yield Maximiser Complex ETF. Rather than relying purely on dividends, this clever fund uses an options-based strategy over the S&P 500 to generate income. This can result in higher cash distributions than you would expect, but it also means capital growth may be more limited compared to traditional equity ETFs.

Betashares Global Royalties ETF (ASX: ROYL)

The Betashares Global Royalties ETF offers an unconventional source of passive income. The ASX ETF invests in global stocks that earn royalties from assets such as music, energy infrastructure, and intellectual property. These revenue streams are often contract-based and less sensitive to economic cycles. For income investors, the Betashares Global Royalties ETF can provide diversification away from traditional dividend sectors like banks and resources. It was also recently recommended by analysts at Betashares.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

A final ASX ETF to consider is the popular Vanguard Australian Shares High Yield ETF. It concentrates on Australian shares with higher forecast dividend yields, offering an income-focused alternative to the Vanguard Australian Shares Index ETF. But it does this with diversification in mind, limiting how much is invested in individual shares and sectors.

The post 5 ASX ETFs to buy for passive income appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.