The S&P/ASX 200 Index (ASX: XJO) started the day in the green before running into headwinds at 11:30am AEDT.

That’s when the Australian Bureau of Statistics (ABS) released the latest inflation data covering the full 2025 calendar year.

In the minute following that release, the ASX 200 sank 0.2% as investors reassessed the odds of a potential interest rate hike from the Reserve Bank of Australia (RBA), with the odds of a rate cut all but evaporating.

The RBA meets again next week and makes its first interest rate announcement for 2026 on Tuesday, 3 February. The official cash rate currently stands at 3.60%.

Here’s what’s got investors feeling jittery today.

ASX 200 dips on rising inflation

The ABS reported that the Consumer Price Index (CPI) increased by 3.8% in the 12 months to December.

“The 3.8% annual CPI inflation to December was up from 3.4% to November,” ABS head of prices statistics Michelle Marquardt said.

Spurring the price rises pressuring the ASX 200 today, housing increased by 5.5%, while food and non-alcoholic beverages prices increased by 3.4% in 2025. Recreation and culture rose by 4.4%.

Unfortunately, trimmed mean inflation, the RBA’s preferred gauge, which takes out certain volatile items, also ticked higher.

“Trimmed mean inflation was 3.3% in the 12 months to December 2025, up from 3.2% in the 12 months to November 2025,” Marquardt said.

What are the experts saying on RBA interest rates?

Commenting on the outlook for interest rates amid the resurgent inflation figures, Russell Chesler, VanEck head of investments and capital markets, said (quoted by The Australian Financial Review):

The market has been predicting two rate hikes this year, with the first in May, but at this level of inflation, the first rate hike could be sooner – possibly even at next week’s RBA meeting.

Global X senior investment strategist Marc Jocum also expects ASX 200 investors will see interest rate hikes in 2026.

According to Jocum:

This December print matters because the RBA focuses most heavily on the quarterly trimmed mean as its preferred gauge of underlying inflation, rather than reacting to short-term volatility in the monthly headline numbers. Unfortunately, this quarterly number came hotter than expected at 3.4% year on year compared to 3.3% expected and 3.0% in Q3 2025.

Noting that inflation remains above the RBA’s 2% to 3% target range, and has been rising, Jocum said, “A hawkish hold still seems to be the central scenario for February’s meeting, but the risks around that call are clearly skewed and mounting toward a rate hike.”

The ASX 200 remains up 6.3% over 12 months.

The post ASX 200 sinks as inflation spike dashes hopes for RBA interest rate relief appeared first on The Motley Fool Australia.

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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.

BHP Group Ltd (ASX: BHP) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed yesterday trading for $49.75. As we head into the Wednesday lunch hour, shares are changing hands for $50.61 each, up 1.7%. 

After a strong nine-month run, this sees BHP now commanding a market cap of $257.5 billion. That’s helping to cement its recently reclaimed title as the biggest stock on the ASX, surpassing the $252.1 billion market cap of Commonwealth Bank of Australia (ASX: CBA). 

Amid a resurgent iron ore price and surging copper prices (BHP’s number one and number two revenue earners), BHP shares have rocketed 48.5% from their 9 April one-year lows.

Atop those capital gains, the ASX 200 mining stock also trades on a fully-franked trailing dividend yield of 3.4%.

And according to Sanlam Private Wealth’s Remo Greco, the stock’s strong run could have a lengthy way to go yet (courtesy of The Bull). 

Should you buy BHP shares today?

The first reason Greco is bullish on the ASX 200 miner is the outlook for ongoing global growth and the resources demand that growth entails.

According to Greco:

The resources upgrade cycle continues to unfold as global growth conditions strengthen into 2026. Expected US interest rate cuts should stimulate global growth and put downward pressure on the US dollar.

The second reason BHP shares could continue to outperform in 2026 is the relatively tight supply side of the global resource story.

Greco noted:

Commodity markets are already tight in terms of adequate supply, and this is already pushing mining stocks higher. This is a global theme. BHP fits the bill as global investors are drawn to earnings upgrades driving share price gains.

And the third reason you might want to buy shares in the biggest ASX stock is the potential for further strengthening of the Aussie dollar.

The Aussie dollar is currently fetching 70.2 US cents. That’s up 5.1% from 66.8 US cents on 1 January.

Commenting on the potential impact on the returns from BHP shares, Greco said, “Also, investors are exposed to a currency gain if the Australian dollar strengthens during 2026.” 

ASX 200 mining stock eyeing ongoing strength in iron ore price

The copper price has rocketed 43% over the past 12 months. The red metal is currently trading for US$13,007 per tonne, with many analysts forecasting more gains ahead amid strong demand for the global energy transition.

And in potentially good news for BHP shares, the iron ore price may also defy some analyst forecasts of a sharp fall to US$80 per tonne.

Iron ore dipped to US$93 per tonne in early July and is currently fetching US$104 per tonne.

And according to the latest research from Deutsche Bank, iron ore prices should average comfortably above US$100 per tonne through 2026.

Deutsche Bank noted (quoted by The Australian Financial Review):

For 2026 as a whole, we forecast a balanced market with a bias towards surplus in H2; iron ore port inventories climbed through most of 2025 and currently sit at the highest level since 2022, while Chinese domestic steel demand continues to contract due to property market weakness.

Potential steel production regulation in China remains a theme, but the same had been said a year ago yet Chinese exports reached record levels in 2025. Our central assumption is only a modest reduction in steel exports in 2026.

We forecast average prices of $US106 a tonne in Q1 and $US102/t for 2026.

The post 3 compelling reasons to buy BHP shares today appeared first on The Motley Fool Australia.

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

The gold analysts at RBC Capital Markets had a slight problem – the price of gold blew past their upside projections within weeks of the year’s start.

The team have therefore had another look at the forces driving the price of the precious metal higher, and has calculated how high gold could go if it replicated last year’s record-breaking performance.

They said around their initial forecast:

Our call has been that gold would trade mostly in the US$4500-5000/oz range this year with upside risk mostly in H2 and allowing for it to trade as high as US$5203/oz on average in Q4 in our high scenario. Reaching above US$5000/oz was possible, even likely, in our view later this year, but the pace of this rally has surpassed our expectations – arguably a familiar story given the pace of gold’s gains last year. This leaves us with several questions: Are these prices sustainable? How high could they go? What does past experience tell us?

Gold price stimulus still in place

The current drivers of the surge in the gold price, RBC said in their note to clients, were uncertainty and macroeconomic factors, especially weakness in the US dollar.

They added:

Between trade, politics, geopolitical instability, Fed independence concerns, etc., there are plenty of drivers to look at, so our top theme for 2026 is certainly alive and well. Likewise, based on all our conversations in the first few weeks of the year, we do not think investor or central bank demand will fall away, with more tonnage added … and central banks still in the buying camp in search of diversification.  

Time left to run for this rally

So how high could the price of gold go? RBC has looked at previous gold rallies going back to the 1980s and said that they tend to last 1062-1168 days.

Given the current rally was 844 days old at the time of publication of their research note, “similar major rallies of the past point to early September or mid-December (essentially the end of the year) based on duration alone”.

And in terms of the price, using 2025 as a proxy, the price could go much higher.

The RBC team said:

Already gold has set 8 new all-time highs in 2026 (well above last year’s average pace), making another 2025-style year look possible. Many of the same underpinnings are there and importantly, we still do not get a sense of exhaustion in terms of accumulation from investors or from the official sector (i.e., central banks). Using 2025’s gains as a proxy, scaling similar ground in percentage terms would put gold as high as US$7100/oz at year end.

The RBC team said that while their projections were “not exactly scientific”, they did provide some context around how long gold rallies tend to run, and how strong they can be.

The gold price was US$5186.65 per ounce on Wednesday morning.

The post How high could gold go if it replicates last year’s run? The figure will astound you 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.

If you have a spare $2,000 and are looking to invest in some high-quality Australian shares, here are five of my favourites right now.

Catapult Sports Ltd (ASX: CAT)

Catapult is a global sports data and analytics company that provides real-time data to optimise athletes’ performance. The tech company reported a 19% revenue uplift in FY25, and the business has actively expanded since through acquisitions. Catapult is quickly gaining traction, and its recurring subscriptions mean it benefits from customer retention. That translates to a higher and more stable margin. Analysts predict the shares could climb 103.86% to $7.77 this year.

AGL Energy Limited (ASX: AGL)

AGL shares collapsed in 2025 after weak earnings and conservative FY26 guidance. But the Australian energy business made some significant leaps in growth at the end of the year. It announced plans to buy new gas turbines in October to raise its capacity for renewable energy, and it sold its stake in Tilt Renewables, freeing up $750 million in funds. Now, the shares are considered attractively priced. Analysts expect an upside as high as 41.51% this year to $12.75 a piece.

Weebit Nano Ltd (ASX: WBT)

In October, the next-generation computer memory technology company said it had made an “exceptionally strong” start to the financial year. It revealed record quarterly customer payments and was advancing discussions with several semiconductor fabrication companies. It also received a $4.1 million research and development tax rebate. Weebit benefits from strong demand for its product, and with very few comparable companies, it is well-positioned to dominate the memory technology space. Analysts are tipping a 37.24% upside this year to $8.07 per share.

Lendlease Group (ASX: LLC)

2025 was an uncertain year for the development and construction business, but it looks like the ASX company could turn a corner in 2026. It has a strong development pipeline, capital recycling initiatives in place, and plans for cost savings. Analysts mostly have a strong buy rating on the stock and think it could climb up to $6.70 a piece. At the time of writing, that implies a 34.81% gain in 2026.

Droneshield Ltd (ASX: DRO)

Droneshield was the best performer on the S&P/ASX 200 Index (ASX: XJO) and one of the fastest-growing stocks on the planet in 2025, despite a sharp 74% sell-off from an all-time high in early October. For the year to date, the Australian shares have already recovered 25.53% of losses. We’re still a long way from the all-time peak, but I’m confident that the company’s strong 2026 growth strategy will continue to push the drone operator’s shares higher this year. Analysts tip a 26.26% upside for the shares this year, to $5.

The post Top Australian shares to buy right now with $2,000 appeared first on The Motley Fool Australia.

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

Bank of Queensland Ltd (ASX: BOQ) shares are trading lower on Wednesday.

At the time of writing, the regional bank’s shares are down almost 1% to $6.85.

What did Bank of Queensland announce?

This morning, Bank of Queensland revealed that its CEO, Patrick Allaway, is stepping down from the role next month on 28 February.

Allaway was appointed as the bank’s non-executive director and chair in 2019, before transitioning to the CEO role in 2023. That appointment was made to address regulatory challenges and required transformation, providing leadership and stability while developing internal succession.

Commenting on his exit, Allaway said:

It has been an honour to lead BOQ as the Chair of the Board and subsequently its CEO, at the Board’s request. While returning to an executive role was not in my plans, I have worked to stabilise and strengthen BOQ by progressing work to respond to two Enforceable Undertakings and address the impact of market structural shifts.

New CEO appointed

The good news is that a replacement has already been found and is coming from within.

According to the release, experienced banking and financial services executive Rod Finch will become Bank of Queensland’s CEO and managing director from 1 March 2026.

Finch has served as the bank’s chief transformation and operations officer since 2023. He has more than 20 years’ experience in the financial services industry, with a track record of delivery across customer, product, strategy and transformation roles within Australia and the United Kingdom.

Bank of Queensland’s chair, Andrew Fraser, said:

As a key leader of BOQ, Rod’s appointment will ensure we maintain momentum in executing our strategy to become a simpler, specialist bank with improved performance for customers and shareholders. Rod’s executive leadership of BOQ’s strategy and transformation priorities provides leadership continuity at a pivotal stage for BOQ Group. During his tenure at BOQ, Rod has led the digital transformation and the program to uplift operational and risk performance.

Rod Finch appears up for the challenge of leading the bank. He commented:

I am honoured to be appointed CEO and grateful for the trust the Board has placed in me. I look forward to leading the organisation, building on the strategic transformation initiated by Patrick to improve outcomes for our customers, shareholders and the communities we serve.

Bank of Queensland shares are down 1% over the past 12 months compared to a 6.5% gain by the ASX 200 index.

The post Big news is making Bank of Queensland shares fall today appeared first on The Motley Fool Australia.

More reading

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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 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.

DroneShield Ltd (ASX: DRO) shares are sinking today.

Shares in the S&P/ASX 200 Index (ASX: XJO) drone defence company closed down 6.5% yesterday trading for $4.18. In late morning trade on Wednesday, shares are swapping hands for $4.01 apiece, down 4.1%.

For some context, the ASX 200 is up 0.1% at this same time.

Taking a step back, DroneShield shares remain up a very impressive 546.8% since this time last year.

That’s enough to turn a $10,000 investment into $64,677.

But it has been anything but a smooth ride for longer-term investors.

Shares hit an all-time closing high of $6.60 on 9 October before plunging to a one-year low of $1.72 on 21 November.

So, when it comes to buying this ASX 200 stock, timing can make a big difference in your returns.

Which brings us back to our headline question.

Should you buy into the recent retrace in DroneShield shares?

With today’s intraday moves factored in, DroneShield shares are down 15.2% since last Thursday’s close, presenting a potentially profitable long-term entry point.

Shares came under pressure yesterday following the release of the company’s December quarter update (Q4 2025).

Investors clearly have high growth expectations for the defence company, with shares falling despite DroneShield reporting record quarterly revenue of $51.3 million, up 94% from Q4 2024.

And cash receipts from customers surged 142% year on year to $63.5 million.

The balance sheet also looks strong, with the company reporting a cash balance of $210.4 million as at 31 December.

Potentially spooking forward-looking, growth-hungry investors, the ASX 200 defence stock reported an 18% decline in its sales pipeline since October to US$2.09 billion.

Commenting on that decline, Bell Potter analyst Baxter Kirk said (quoted by The Australian Financial Review):

We expected an increase in the sales pipeline. The decline in pipeline is mostly due to several early stage-low probability large projects which did not materialise or were well reduced in scope.

Still, Bell Potter maintains a bullish outlook for DroneShield shares, forecasting a “wave of spending” from nations with large defence budgets seeking to secure their critical sites from drone attacks.

“We believe DRO should see material contracts flowing … over the next three to six months as defence budgets roll over to FY26,” Bell Potter noted.

The broker also said that the company’s lengthy “battlefield experience” offers it a “strengthening competitive advantage”.

Connecting the dots, Bell Potter has a $5 price target on DroneShield shares.

That represents a potential upside of almost 25% from current levels.

The post Up 576% in a year, should you buy the latest dip in DroneShield shares? appeared first on The Motley Fool Australia.

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• Why the DroneShield share price could be undervalued
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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 positions in and has recommended DroneShield. 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.

You don’t need thousands of dollars to get started on the ASX. Sometimes, owning a small slice of a high-quality business is the smartest first step.

These are three ASX shares I’d genuinely be happy to buy today, even with a modest amount of money.

Breville Group Ltd (ASX: BRG)

Breville is often talked about as a kitchen appliance company, but I think that undersells what it has become.

What stands out to me right now is how well Breville has navigated a tough consumer environment. While many discretionary retailers have struggled, Breville has continued its growth while investing in product innovation, premium branding, and global expansion, particularly in North America. That long-term mindset matters.

Another reason I like this ASX share is pricing power. Breville doesn’t compete at the cheap end of the market. Its customers are willing to pay up for quality, which gives the company more resilience if costs rise or consumer spending softens.

Wesfarmers Ltd (ASX: WES)

Wesfarmers might not sound exciting at first glance, but I think that’s exactly why it works so well as an investment.

What I like right now is the combination of stability and optionality. Bunnings continues to throw off strong cash flows, and Kmart has proven it can adapt in difficult retail conditions. This gives Wesfarmers the balance sheet strength to invest when opportunities arise.

I’m also a big fan of its capital discipline. Wesfarmers has shown it’s willing to exit businesses that don’t meet its return hurdles and redeploy capital into higher-quality opportunities. That’s not something every conglomerate does well.

If you’re starting with $100, owning an ASX share like this can help anchor a portfolio while still offering upside over time.

SiteMinder Ltd (ASX: SDR)

SiteMinder is probably the higher-risk option on this list, but it’s also the one with the most upside if things go right.

What caught my attention recently is how the hotel technology business is shifting from pure growth to operating leverage. SiteMinder continues to grow its global customer base, but it’s also becoming more efficient as scale kicks in. That’s an important transition for SaaS companies.

I also like how embedded SiteMinder has become in hotel operations. Once a hotel relies on its platform to manage bookings, pricing, and distribution, switching away is not trivial. That creates stickier revenues over time.

For a small investor, this is the kind of stock that can compound quietly if management executes, even if the share price remains volatile along the way.

Foolish Takeaway

Having just $100 isn’t a disadvantage. It’s a chance to focus on quality, think long term, and start building good habits early. These are three businesses I’d be comfortable owning today and letting time do the rest.

The post 3 no-brainer ASX shares to consider buying now with just $100 appeared first on The Motley Fool Australia.

More reading

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

Boss Energy Ltd (ASX: BOE) shares are having a strong session on Wednesday.

In early trade, the ASX 200 uranium stock was up as much as 11% to $2.01.

The uranium producer’s shares have pulled back a touch since then but remain up 7% to $1.93 at the time of writing.

Why is this ASX 200 uranium stock jumping today?

Investors have been bidding Boss Energy shares higher today after it released its quarterly update.

According to the release, the company’s Honeymoon operation performed very positively and delivered record drummed production of 456 klbs U3O8 and IX production of 406 klbs for the three months. This represents an 18% and 8% increase, respectively.

Management advised that this was driven by higher flow from new wellfields.

The good news is that this means the ASX 200 uranium stock is on track to achieve its FY 2026 production guidance of 1.6 Mlbs.

Another positive that could be giving Boss Energy shares a lift today is that it achieved this with lower costs per unit.

Honeymoon’s C1 costs were $30 per pound (US$20 per pound) which is down 12% following positive results mainly from reagent optimisation in the wellfields and plant.

In light of this, the company’s cost guidance for the Honeymoon operation has been lowered. It now expects C1 costs to be $36 to $40 per pound instead of $41 to $45 per pound.

This compares favourably to the average realised price of US$74 per pound during the second quarter.

A ‘significant’ quarter

Commenting on the quarter, the ASX 200 uranium stock’s CEO and managing director, Matthew Dusci, said:

This quarter was significant for Boss, following completion of the Honeymoon Review and initiation of the New Feasibility Study. The pathway forward through a new wide-spaced wellfield design has the potential to lower operating costs, optimise production profiles, and extend mine-life. The successful and timely delivery of this study has the potential to deliver significant value and is a strategic priority.

With regards to production, the team has delivered a record quarter of 455,791 lbs of U3O8 drummed at a C1 cash cost of $30/lb. As a result of the continued work to optimise the operation, it is pleasing to reconfirm production guidance of 1.6 Mlb for FY26 while revising down our C1 and AISC costs. We continue to balance investment in the current wellfield design with delivering the New Feasibility Study as we prioritise delivery of production whilst also minimising spend on wellfield designs that could be improved under the wide-spaced wellfield design.

The post Why is this ASX 200 uranium stock jumping 11% today? 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 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.

As a new month approaches, I think it is just as important to think about what not to buy as it is to find new opportunities. Markets don’t move in straight lines, and some exchange-traded funds (ETFs) that make sense in one environment can quietly work against you in another.

These are two ASX ETFs I would personally avoid buying in February, based on how I see 2026 shaping up.

BetaShares Australian Equities Bear Hedge Fund (ASX: BEAR)

The BetaShares Australian Equities Bear Hedge Fund is designed to move in the opposite direction to the Australian share market on a day-to-day basis. If the S&P/ASX 200 Index (ASX: XJO) falls, the BEAR ETF should rise. If the market goes up, this fund should fall.

That structure makes sense as a short-term hedge during periods of heightened volatility or when investors are genuinely worried about a sharp market drawdown. But it is exactly why I would avoid it if you have a constructive view on equities.

Personally, I think the Australian share market could deliver something close to a 10% return in 2026. If that happens, the BEAR ETF is effectively positioned to lose money over time. Even modest but consistent market gains can be painful for inverse ETFs, especially when held beyond very short windows.

For me, the BetaShares Australian Equities Bear Hedge Fund is a tactical tool, not a long-term investment. If you believe the market’s next meaningful move is higher, owning an ETF that is structurally betting against that outcome just does not make sense.

VanEck Australian Banks ETF (ASX: MVB)

I am generally supportive of parts of the Australian banking sector. In fact, I am a shareholder in Commonwealth Bank of Australia (ASX: CBA) and still view it as one of the highest-quality businesses on the ASX.

The issue with the VanEck Australian Banks ETF is concentration. The ETF gives you broad exposure across the major banks, and that is where I see the problem emerging.

While CBA continues to execute well, I am less convinced the same can be said for all of its peers heading into 2026. Margin pressure, slower credit growth, and higher capital requirements could weigh on earnings for some other banks, naturally restricting returns for the ETF as a whole.

Rather than owning the entire sector through the MVB ETF, I think investors may be better served by being selective or allocating capital to areas of the market with clearer growth or income tailwinds.

Foolish Takeaway

Neither of these ETFs is bad in isolation. They simply feel mismatched to the current environment and my outlook for the year ahead.

With markets showing signs of resilience and selective opportunities emerging elsewhere, I think February could be a better time to focus on funds positioned to benefit from growth, rather than betting against the market or tying returns to parts of the banking sector that may struggle to keep up.

The post 2 ASX ETFs to avoid in February appeared first on The Motley Fool Australia.

More reading

• Best ASX ETFs to target winning Aussie sectors in 2026

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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.

ASX dividend shares are my top way to create passive income because of how easy it is to invest and hold for the long-term while receiving dividends.

I love how we can build a portfolio piece by piece and create a river of dividends. The investments I’m going highlight offer investors a good dividend yield and I’m confident they can grow their payouts over time.

Let’s dive in with what I’d happily buy with $3,000.

Bailador Technology Investments Ltd (ASX: BTI)

I think the last 20 years have shown that technology is one of the best, if not the best, places to invest.

Software businesses are able to deliver great gross profit margins, strong bottom lines and they usually don’t have any physical limitations of growth compared to others needing to increase production, open a new store or new warehouse to grow further.

Bailador is a company that invests in private technology businesses whilst they’re still in a rapid growth phase. Its current portfolio includes businesses involved in digital healthcare, hotel management, financial advice and investment management, tours and activities, property investment, volunteer management, fitness and wellness, and so on.

The portfolio is growing at a rapid speed – Bailador’s portfolio company revenue growth was 47% in FY25, which bodes well for increasing the underlying value of those businesses over time.

The ASX dividend share aims to pay investors a dividend yield of 4% relative to the pre-tax net tangible assets (NTA). But, due to the fact the Bailador share price is at a 36% discount (at the time of writing) to the NTA, it has a dividend yield of 6.3%, or 9% including franking credits.

Future Generation Australia Ltd (ASX: FGX)

This business is a listed investment company (LIC) that invests a portfolio of ASX share-focused funds from various fund managers who work for free so that Future Generation Australia can donate 1% of net assets to youth charities each year.

There are no management fees or performance fees. With the investment/accounting profits the ASX dividend share makes, it’s paying a growing dividend that has grown every year for the past decade. Not many ASX businesses can claim to have done that.

This investment can provide Aussies with diversification thanks to the funds giving exposure to hundreds of underlying businesses.

Its latest announced dividends come to a grossed-up dividend yield of 7.7%.

WCM Quality Global Growth Fund (ASX: WCMQ)

This is an exchange-traded fund (ETF) targets a 5% dividend yield, balancing passive income and capital growth.

WCM is looking for global stocks it thinks have expanding competitive advantages (economic moats) and business cultures that help expand the competitive advantage.

With a portfolio of US and non-US shares, the fund is able to provide investors with pleasing exposure to a variety of opportunities around the world.

The strategy is clearly working because the fund has delivered average net returns of 15.9% per year since inception in August 2018. Past performance is not a guarantee of future returns, but I think it can continue to perform well. A rising net asset value (NAV) of the fund helps fund larger distributions.

The post 3 wonderful ASX dividend shares I’d buy with $3,000 right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Bailador Technology Investments and Future Generation Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments. The Motley Fool Australia has recommended Bailador Technology Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.