Following all the drama of the last few weeks, a number of ASX shares are now trading at surprisingly low prices.

We can’t say what will happen in the next few weeks. But, I think the experience after 2020 and 2022 shows that the market is probably looking for good news to recover.

With US President Trump indicating he’s keen to make a deal with Iran, this could be a great time to invest in the following businesses.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is invested in a portfolio of funds management businesses that generally have a long track record of delivering stronger returns than their benchmarks.

It’s understandable that a fall in share markets has led to a 14% drop in the Pinnacle share price over the past month, given the likely painful impact on funds under management (FUM).

But, due to the cyclical nature of the share market volatility, I believe there will be a recovery down the line.

Plus, Pinnacle’s affiliates have collectively experienced billions of dollars in net inflows each financial year, which is a strong tailwind for longer-term FUM growth, even if FY26 earnings are impacted. I’m hopeful the company will add to its affiliate portfolio over the coming years.

I think this sell-off is an opportune time to invest in this ASX share, given market confidence is low.

Using the forecast on Commsec, the Pinnacle share price is valued at 20x FY26’s estimated earnings.

Sigma Healthcare Ltd (ASX: SIG)

Australia’s growing and ageing population is a strong tailwind for businesses involved in the healthcare industry.

Sigma is the owner of Chemist Warehouse, Australia’s leading chemist business, along with other companies in the chemist industry.

Impressively, Chemist Warehouse is seeing network sales growth in the mid-teens, while its international sales are growing even faster.

The business is generating strong same-store sales growth, while also expanding its store network in Australia, New Zealand and Ireland.

Growing scale can help improve the company’s profit margins, as we’re seeing in its financials. In HY26, it reported revenue growth of 14.9%, normalised operating profit (EBIT) growth of 18.7% to $582.9 million, and normalised net profit growth of 19.2% to $392 million.

It’s a great sign when each profit line is rising faster than the one before it. Investors usually value a business based on its net profit, so Sigma is demonstrating pleasing characteristics.  

I think the business is capable of adding dozens of new Chemist Warehouses to its global network in the coming years, which should be a strong tailwind for shareholder returns.

According to Commsec, the Sigma Healthcare share price is valued at 42x FY26’s estimated earnings.

L1 Group Ltd (ASX: L1G)

This is a fund manager that offers a range of investment strategies that have performed strongly for investors across ASX shares, international shares, gold, and more.

After taking over Platinum, the business has hit the ground running on the ASX. It’s planning to list a gold-listed investment company (LIC) soon, and its other LICs’ performances have been excellent in recent times (though past performance is not a guarantee of future performance).

In the FY26 half-year result, the company reported underlying revenue growth of 23% to $145.1 million, underlying operating profit (EBITDA) growth of 61% to $94.9 million and underlying net profit after tax (NPAT) growth of 63% to $66.3 million.

I’m a fan of how L1 invests in its funds with a contrarian mindset and a focus on businesses with lower price-to-earnings (P/E) ratios.

I expect the business will launch additional funds over time, while organic investment performance can help FUM grow naturally as well.

I think this investment outfit is one of the most impressive in Australia and is worth owning for the long term.

The post 3 ASX shares to buy for magnificent long-term growth! appeared first on The Motley Fool Australia.

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

One of the hardest-hit S&P/ASX 300 Index (ASX: XKO) shares over the last several months has been Temple & Webster Group Ltd (ASX: TPW). It really strikes me as an oversold ASX stock after falling more than 50% this year.

It’s understandable why there has been some volatility. AI worries and the Middle East conflict have impacted a wide range of ASX growth shares, including Temple & Webster.

The business sells hundreds of thousands of products across homewares, furniture and home improvement. It has already built an impressive market share across Australia.

Strong revenue growth rate

One of the key appealing aspects of the oversold ASX stock is how quickly revenue is growing. The speed of a company’s growth is a key aspect that drives the underlying value because of how that flows to profit growth and scale benefits.

The FY26 half-year result included very impressive revenue growth numbers. In the first six months of the 2026 financial year, revenue increased by 20% to $376 million. On top of that, in the first several weeks of the second half of FY26, revenue grew by another 20%.

Part of the reason why the company is delivering impressive growth is the ongoing adoption of online shopping. E-commerce now makes up around 20% of the homewares and furniture sector in Australia, but the trends are positive for further growth based on other similar countries – online penetration has reached around 30% in the UK and even more in the US.

There are currently two other areas of the business I’m bullish about. Firstly, it recently started shipping items to New Zealand, which opens up a sizeable additional market to sell to.

Secondly, its home improvement segment is growing even faster than the main business. It’s a significant growth avenue if it continues to execute well. HY26 home improvement revenue soared 47% to $30 million. If that growth trend continues, it will become an important contributor.  

Capital-light model

One of the best parts of the Temple & Webster business model is that a significant majority of products sold through its website/portal are shipped directly by suppliers to customers.

This makes Temple & Webster capital-light because it doesn’t need its own warehouses (and everything else) for those sales.

Under this set up, the company can produce a lot of cash flow and build a large cash balance.

In the FY26 half-year result, the business reported cash flow of $31.3 million and ended HY26 with a cash balance of $160.6 million. The large cash balance can help fund the ongoing share buyback (which boosts the value of each remaining Temple & Webster share)

Big growth goals for the ASX oversold stock

One of the final reasons why I think this business is an oversold ASX stock is because of the level of growth it’s targeting.

In the next few years, the business is aiming to reach $1 billion of annual sales. It may not get there quite as fast as it was hoping, but it’s still rapidly growing towards that target at a double-digit pace.

Additionally, the company is expecting to become much more profitable in the long-term.

In FY25, the business achieved an operating profit (EBITDA) margin of 3.1%. It’s expecting an EBITDA margin of between 3% to 5% in FY26 and then to reach at least 15% in the long-term.

That suggests a significantly higher profit margin and it could be generating a lot more revenue by the time it reaches that revenue target.

According to the forecast on CMC Invest, the Temple & Webster share price is now valued at just 28x FY28’s estimated earnings.

The post This oversold ASX stock is so cheap it’s crazy appeared first on The Motley Fool Australia.

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• 2 top ASX shares I’d buy right now in this March madness

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

There are plenty of global exchange-traded funds (ETFs) on the ASX, but not many come from Macquarie Group Ltd (ASX: MQG).

The Macquarie Core Global Equity Active ETF (ASX: MQEG) has been around for almost a couple of years, but is still likely to be unfamiliar to a lot of investors.

That’s why I think it is worth a closer look today, especially for investors wanting global exposure with the potential for index-beating returns.

A different way to invest globally

Most global ETFs are passive. They track an index and aim to match its performance. 

The MQEG ETF takes a different approach. It is actively managed, using a systematic and data-driven process to select between 200 and 500 global shares.

The idea is to identify companies with desirable characteristics while reducing emotional bias, and to aim for consistent returns above the benchmark over time.

That’s an interesting proposition.

It blends the diversification of an ETF with the potential upside of active management.

Built on a long track record

This isn’t a brand-new idea for Macquarie Group Ltd (ASX: MQG).

The strategy behind the MQEG ETF has been developed over decades, with Macquarie Systematic Investments using data, signals, and risk controls to build portfolios designed to deliver index-plus returns.

According to the fund, the process analyses millions of data points and combines factors like valuation, sentiment, and quality to construct a diversified portfolio.

That kind of disciplined approach is designed to remove emotion and keep decisions consistent.

Early performance looks encouraging

While it’s still relatively early days, the initial results are worth noting.

The ETF aims to outperform the MSCI World ex-Australia ex-Tobacco Index over the medium to long term.

Since inception, it has delivered returns ahead of its benchmark on a net basis, suggesting that the strategy has been working so far.

Of course, past performance isn’t a guarantee of future results. But it does provide some early validation.

Cost and structure

One of the more appealing aspects of this Macquarie ETF is its cost structure.

It has a relatively low management fee (0.08%) for an active ETF, combined with a performance fee that only applies if it beats the index.

That alignment is important.

It means investors are paying more only if the fund is delivering additional value.

What you’re actually getting

Under the hood, the MQEG ETF is a globally diversified portfolio.

It has significant exposure to the United States, alongside allocations to Japan, Europe, and other developed markets.

Its holdings are constantly evolving based on the model, but examples of positions include companies like Lam Research Corp (NASDAQ: LRCX), Comcast Corp (NASDAQ: CMCSA), and Eiffage SA (FRA: EF3).

This isn’t a static portfolio. It’s designed to adapt as market conditions change.

Why I think it could be a strong buy

What stands out to me is the combination of features.

You’re getting global diversification, a disciplined, data-driven investment process, the potential for outperformance, and a relatively low-cost structure for active management

That’s not something you see every day in a single ETF.

It won’t suit everyone. Some investors will still prefer simple index tracking.

But for those open to a systematic active approach, I think the MQEG ETF could be a compelling option to consider.

Foolish takeaway

The Macquarie Core Global Equity Active ETF offers a different way to access global markets.

It combines broad diversification with a systematic strategy aimed at delivering consistent excess returns over time.

It’s still early in its journey, but based on what I’ve seen so far, I think it could be a strong buy for investors looking to add something a little different to their portfolio.

The post Is this outperforming ETF from Macquarie a strong buy? appeared first on The Motley Fool Australia.

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• This oversold ASX stock is so cheap it’s crazy
• Region Group extends $100m securities buy-back – earnings update
• This energy focussed ASX small-cap could surge 50% as earnings build
• ASX ETFs holding up amidst global volatility 
• Passive income investors: This ASX stock has an 8% yield and monthly payouts

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lam Research and Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Comcast. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Lam Research. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Yesterday after market, Region Group (ASX: RGN) announced an extension of its on-market securities buy-back, increasing its support for shareholders with $33.1 million of shares already purchased so far.

What did Region Group report?

• Extension of on-market buy-back for up to $100 million of RGN securities
• Buy-back period extended to 21 April 2027 (unless completed or terminated earlier)
• 14.4 million securities bought back to date at an average price of $2.298 per security
• Total value of securities bought back to date: $33.1 million
• Buy-back supports capital management and portfolio optimisation

What else do investors need to know?

The buy-back is being undertaken in line with the “10/12” rule of the Corporations Act 2001, ensuring regulatory compliance while affording flexibility. Region Group says the timing and number of shares bought back will depend on prevailing market conditions and share price.

This initiative aims to optimise the portfolio and maintain the company’s capacity to fund ongoing capital requirements and future growth opportunities. Investors can view more details in the accompanying Appendix 3C released to the ASX.

What’s next for Region Group?

Region Group remains focused on its strategy of ongoing portfolio optimisation and disciplined capital management. The continuation of the buy-back provides scope to support the share price while retaining capacity for growth initiatives.

Investors will be watching to see how Region Group balances returning funds to shareholders through buy-backs with investing in future developments and acquisitions.

Region Group share price snapshot

Over the past 12 months, Region Group shares have risen 5%, slightly trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Region Group extends $100m securities buy-back – earnings update 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 positions in and has recommended Region 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.

It hasn’t been the smoothest ride for Energy One Ltd (ASX: EOL) shareholders over the past year.

Despite operating in a sector benefiting from structural tailwinds, the ASX small-cap’s share price has fallen more than 35% from its recent peak. For many investors, that kind of decline can raise red flags.

But dig a little deeper, and the underlying business appears to be telling a very different story.

What does Energy One actually do?

Energy One is not your typical energy company.

Rather than producing or supplying power, it provides software, outsourced operations, and advisory services to wholesale energy, environmental, and carbon trading markets across Australia and Europe.

Its platform helps participants manage complex tasks like trading, market communication, and power plant operations — effectively acting as digital infrastructure for increasingly sophisticated energy markets.

As grids become more decentralised and volatile, software like this becomes more critical.

Strong results hiding behind the share price fall

While the share price has pulled back, recent financial results paint a picture of a business gaining momentum.

For the latest half, Energy One reported:

• Revenue of $34.8 million, up 21%
• Annual recurring revenue (ARR) of $64.0 million, up 20%
• Operating margins (EBITDA margin) expanding to 21%
• Underlying net profits (underlying NPAT) of $4.5 million, up 56%
• Net debt reduced to $5.8 million (down $7.2 million)

This is the kind of profile investors often look for in small-cap software businesses: recurring revenue, expanding margins, and improving balance sheet strength.

In particular, the growth in ARR suggests increasing visibility and predictability, which can be valuable in more uncertain market environments.

Why the disconnect?

So why has the share price gone backwards?

There’s no single answer, but a few themes may be at play.

First, ASX small-cap tech and software names have been under pressure more broadly as interest rates rise and expectations remain elevated. Higher discount rates can weigh on valuations, particularly for growth-oriented businesses. 

Second, Energy One operates in a niche that doesn’t always attract widespread attention. Unlike high-profile AI or consumer tech names, its role in energy market infrastructure is more behind the scenes. 

And finally, the software industry as a whole has faced valuation headwinds in the face of AI disruption. Sentiment against software as a service (SaaS) stocks turned negative in early this year, described as a “SaaSpocalypse”, driven by fears that AI tools will disrupt the traditional software business model. 

Broker sees potential upside

Interestingly, at least one broker sees the current weakness as an opportunity.

Ord Minnett has placed a buy rating on the stock with a price target of $21.58, implying potential upside of more than 50% over the next 12 months.

The broker also highlighted the company’s margin expansion and its position as a profitable, cash-generative business growing revenue at over 20% annually.

That combination — growth plus profitability — is not always easy to find in the ASX small-cap universe.

The bigger picture

Zooming out, Energy One sits at the intersection of several long-term trends.

Energy markets are becoming more complex, driven by electrification, renewables, and decentralisation. That complexity tends to increase demand for software, data, and automation.

If that theme continues to play out, companies providing the “plumbing” of these markets could quietly benefit.

Of course, small caps come with their own risks — including execution, competition, and market volatility.

But with strong recent growth, improving margins, and a share price well below its highs, this ASX small cap may be one to keep on the radar.

The post This energy focussed ASX small-cap could surge 50% as earnings build appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Energy One. 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.

With conflict in the Middle East rattling global markets, there have been pockets of resilience. 

For example, here in Australia, energy shares have provided relief for many investors. 

In the month of March, the S&P/ASX 200 Index (ASX: XJO), Australia’s benchmark index, is down roughly 9%. 

The S&P 500 Index (SP: .INX), one of the key benchmarks in the US, is down more than 4%. 

In contrast, the S&P/ASX 200 Energy (ASX: XEJ) is up 11%. 

ASX energy stocks are climbing largely due to a spike in oil and gas prices, fueled by geopolitical tensions tightening global supply.

However it isn’t only ASX energy shares offering relief for investors. 

Here are three ASX ETFs that have managed to weather the storm this month. 

Global X Bloomberg Commodity ETF (Synthetic) (ASX: BCOM)

This ASX ETF invests in a highly liquid, broad-based basket of commodities, including energy, grains, precious metals, industrial metals, softs and livestock.

I covered earlier this week why Global X believes commodities could outperform other asset classes over the next 12-24 months.

Regardless of future growth, this ASX ETF has already proven resilient in the current environment. 

It has risen almost 5% in the last month. 

The fund tracks the Bloomberg Commodity Excess Return 3 Month Forward Index.

According to Global X, the fund aims to maintain exposure to contracts which expire ~3 months in the future, helping minimise negative roll yield by investing further up the curve.

BetaShares Global Energy Companies ETF – Currency Hedged (ASX: FUEL)

Another ASX ETF that has outperformed in the last month is this fund from Betashares. 

It aims to track the performance of an index (before fees and expenses) that comprises the largest global energy companies (ex-Australia), hedged into Australian dollars.

According to Betashares, it offers exposure to approximately 32 energy companies that are larger, more geographically diversified, and more vertically integrated than Australian-listed energy companies.

The fund is up nearly 9% in the last month. 

It has provided annual returns of roughly 17% in the last 5 years. 

BetaShares Crude Oil Index ETF – Currency Hedged (Synthetic) (ASX: OOO)

This ASX ETF aims to track the performance of an index (before fees and expenses) that provides exposure to crude oil futures, hedged for currency movements in the AUD/USD exchange rate.

Unsurprisingly, it has exploded this year with conflict putting heavy pressure on global oil supply. 

In the last month, this fund has risen 41%. 

For investors considering this ASX ETF, The Motley Fool’s Sebastian Bowen covered earlier this week whether this ASX ETF or individual oil stocks could continue to rise in the near term. 

The post ASX ETFs holding up amidst global volatility  appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Monthly-paying dividend stocks are the bees knees for passive-income-hunting investors. 

I’m always on the lookout for great ASX shares that dish out a reliable and timely payment to investors, especially if they have a dividend yield as high as 8%, or even higher.

I wrote about the high-yield Metrics Income Opportunities Trust (ASX: MOT) earlier this month. It pays a 9% dividend yield from a diversified portfolio of private credit investments.

But there’s another similar stock which I think is just as good: Metrics Master Income Trust (ASX: MXT).

What does Metrics Master Income Trust do?

The Metrics Master Income Trust is a listed investment trust (LIT) which gives direct exposure to the Australian corporate loan market. This is a space currently dominated by regulated Australian banks.

Rather than owning a portfolio of ASX shares, the trust has a portfolio of corporate loans and private credit investments (an increasingly popular asset class for income-focused investors) and currently manages around $30 billion in assets.

Its goal is to provide investors a monthly cash income with reduced capital volatility. It also aims to give attractive risk-adjusted returns from a diversified portfolio and diversification into Australian corporate fixed income.

What passive income does the ASX stock pay?

Metrics Master Income Trust said it targets a return of the Reserve Bank cash rate plus 3.25% per annum through the economic cycle. This is net of around 7.10% per annum fees. Distributions are paid monthly and there is also a distribution reinvestment plan (DRP), which allows its investors to reinvest their monthly income distributions.

The Trust’s latest payout in February was 1.17 cents per share, unfranked. This was paid out to investors on the 9th of March. The latest dividend means that the fund has paid 12 dividends to investors over the past 12 months totalling 15.5 cents per share. At the time of writing, this gives the trust a dividend yield of 8.12%.

At the close of the ASX on Tuesday afternoon, the passive income stock’s shares are 1.6% higher for the day, at $1.91 a piece. However the shares have declined 4% over the past month, and they’re now 2.8% lower than this time last year.

Despite being in the red over the past month, the trust has still outperformed the S&P/ASX 200 Index (ASX: XJO) which is down 7% over the same period. 

However, over the longer-term, the investment trust has underperformed the index. The ASX 200 is 5.65% higher than this time last year. 

The post Passive income investors: This ASX stock has an 8% yield and monthly payouts 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 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.

Some ASX dividend stocks offer high yields. Others offer something different.

When I look at Commonwealth Bank of Australia (ASX: CBA), I’m not drawn in by the headline yield. I’m drawn to the consistency.

At a share price of $171.12, it’s not cheap. But I think it’s one of those businesses where quality has historically come at a premium.

A track record that’s hard to ignore

Commonwealth Bank has built a reputation over decades.

It has consistently delivered strong returns, maintained a leading position in Australian banking, and continued to pay fully franked dividends through a wide range of economic conditions.

Even in its latest half-year results, the bank highlighted its focus on long-term decision making, balance sheet strength, and delivering sustainable outcomes for shareholders.

That kind of consistency is what I think income investors are really paying for.

What the dividends look like

According to CommSec, consensus estimates point to Commonwealth Bank paying shareholders fully franked dividends of $5.20 per share in FY26 and $5.50 per share in FY27.

At the current share price, that puts the forward dividend yield at around 3%.

That’s not the highest on the ASX. But I don’t think that tells the full story.

For me, the more important point is that there is potential for those dividends to keep growing over time.

More than just yield

When I think about returns, I don’t just focus on income.

With a business like Commonwealth Bank, you’re also getting potential capital growth over time, fully franked dividends, which can enhance after-tax returns, and exposure to one of the strongest banking franchises in the country.

That combination has historically delivered strong outcomes for long-term investors.

In fact, over the past 15 years, CBA shares have achieved an average annual return of 10.7% per year.

It doesn’t mean it will always outperform, but clearly the track record is there.

The valuation question

There’s no getting around it. This ASX dividend stock trades at a premium.

It has done so for years, and that premium reflects its market position, profitability, and consistency.

Would I prefer to buy CBA shares cheaper? Of course.

A pullback would make it more attractive, and I think that’s when it really starts to stand out as a compelling opportunity.

But even at current levels, if I didn’t already have exposure to the banking sector, I’d still be considering it.

Foolish takeaway

Commonwealth Bank may not offer the highest dividend yield, but I think it offers something more valuable.

Consistency, resilience, and the potential for long-term dividend growth.

At current prices, it’s not a bargain. But on a pullback, I think it becomes a compelling option for investors looking for quality ASX dividend stocks to buy.

The post A top ASX dividend stock to buy on a pullback appeared first on The Motley Fool Australia.

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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.

A new report from Global X has shed light on the shifting priorities and criteria investors are seeking in equities. 

Billy Leung, Senior Investment Strategist, said for much of the past decade, equity markets rewarded companies that required relatively little physical capital. 

This included software platforms and digital businesses.

These companies demonstrated how scale could be achieved without extensive infrastructure, allowing revenue growth to accelerate faster than investment.

Asset-light models became associated with high returns on capital, rapid scalability and structural market leadership.

However, Mr Leung contends there is a different set of economic forces is now drawing attention to industries built on physical capacity. 

Rising real interest rates increase the cost of capital and change how markets value long-duration growth. At the same time, geopolitical fragmentation and supply chain restructuring are forcing governments and corporations to reconsider how critical systems are built and maintained. Energy networks must expand, industrial production is being reshored across multiple regions, and infrastructure once taken for granted is being reassessed as strategically important.

This has brought attention to the HALO investing framework. 

What is HALO investing?

The HALO acronym stands for Heavy Assets, Low Obsolescence. 

According to Global X, the concept focuses on companies built around substantial physical infrastructure. It also focusses on long-lived capital assets that are difficult to replicate. 

Their advantage is not based on rapid innovation cycles but on scale, engineering complexity and the time required to build the systems they operate. These assets often sit at the centre of economic activity, quietly supporting the movement of energy, goods and materials across entire economies.

However, several structural forces are now shifting the balance in favour of these equities. 

Governments across major economies are investing heavily in energy security, domestic manufacturing capacity and strategic infrastructure. 

Supply chains once prioritised efficiency. They are now being redesigned with resilience and redundancy in mind.

This is prevalent in sectors linked to energy systems, transportation networks and advanced industrial production.

What are examples of HALO industries?

For investors interested in how this looks in the real world, some examples include: 

• Energy infrastructure (power grids, pipelines, generation) – requires huge investment and becomes foundational once built
• Transportation networks (rail, ports, freight corridors) – are long-term projects enabling regional and global trade
• Industrial manufacturing – depends on complex facilities and machinery that take years to develop and are hard to replicate.

According to Global X, viewing markets through the HALO framework highlights a different source of competitive advantage.

Instead of focusing exclusively on companies capable of scaling rapidly with minimal capital investment, the approach emphasises industries where value is embedded in infrastructure and physical capacity.

Assets such as power grids, pipelines, rail corridors and industrial facilities cannot be recreated quickly. Their value reflects decades of investment, regulatory frameworks and specialised engineering capabilities. These systems underpin the movement of energy, materials and goods that support broader economic activity.

How can investors gain exposure?

For investors looking for exposure to HALO investment opportunities, some ASX ETFs to consider include: 

• Global X Ai Infrastructure ETF (ASX: AINF) – Exposure to companies involved in the physical infrastructure supporting modern computing, including data centres, power systems and network capacity.
• Global X Uranium ETF (ASX: ATOM) – Provides exposure to companies across the uranium and nuclear fuel ecosystem supporting nuclear power generation.
• Global X Green Metal Miners ETF (ASX: GMTL) – Tracks producers of metals such as copper, nickel and lithium that are essential inputs for infrastructure, energy systems and industrial capacity. 

The post What is HALO investing and how do investors gain exposure to it? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

When I think about safe ASX 200 dividend stocks, I’m thinking about businesses that can keep rewarding shareholders year in and year out.

The kind with reliable cash flow, strong market positions, and services people continue to use regardless of what’s happening in the economy.

That said, here are three ASX 200 dividend stocks that I think fit that description.

Coles Group Ltd (ASX: COL)

Coles is about as close as you get to everyday reliability.

Supermarkets sit at the centre of household spending. People don’t stop buying groceries when conditions get tougher, which gives Coles a steady and defensive stream of revenue.

What I like is how that translates into cash flow and supports its ability to pay dividends year after year, even when other sectors are under pressure. This was evident during the COVID pandemic when many ASX 200 dividend stocks paused their payouts but Coles continued as normal.

It’s not a high-growth business, but that’s not really the goal here. It’s about dependability.

APA Group (ASX: APA)

APA Group offers a different type of stability. It owns and operates energy infrastructure, including gas pipelines and energy assets that are critical to Australia’s energy system.

A large portion of its revenue is contracted or regulated, which provides visibility over future cash flows.

That’s important for income investors. Because when you have predictable earnings, it becomes much easier to support consistent distributions over time.

Another positive is that its dividend yield is traditionally higher than average. This is the case right now, with the ASX 200 dividend stock guiding to a 58 cents per share distribution. At the current share price, APA offers a forward yield of 6%.

Telstra Group Ltd (ASX: TLS)

Telstra Group rounds out the list with a mix of infrastructure and recurring revenue.

Its telecommunications network underpins how Australians connect, work, and consume data. That creates a steady demand base, which in turn supports cash generation.

Telstra has also spent the past few years simplifying its business and focusing on returns, which has helped stabilise its dividend profile.

It may not offer the highest dividend yield on the market, but I think its reliability makes it a strong option for income-focused investors.

Foolish takeaway

Coles, APA Group, and Telstra share a common theme. They provide essential services and generate relatively stable cash flow.

For investors looking to build a more defensive income stream, I think these types of businesses are worth serious consideration as part of a broader portfolio.

The post 3 of the safest ASX 200 dividend stocks in Australia 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 positions in and has recommended Apa Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.