The silver price has exploded higher over the past 12 months, more than doubling in value during the period.

This means that miners with exposure to silver are printing money every time they pull an ounce of the precious metal out of the ground.

But how can investors position their portfolio to benefit from this? Let’s find out what Morgans is saying about one ASX silver stock.

Broker tips ASX silver stock as a buy

Morgans has been running the rule over BMC Minerals Ltd (ASX: BMC) shares following its IPO last month.

BMC is the 100% owner of the Kudz Ze Kayah (KZK) Project. It is an advanced polymetallic development project located in Canada’s Yukon territory. It comprises 372km2 of under-explored, resource rich tenure and is host to two deposits. It will produce three concentrates: silver/gold, copper, and zinc.

Morgans, which helped with the ASX silver stock’s IPO, believes its shares are still significantly undervalued despite rising over 40% since listing.

According to a note, the broker has initiated coverage on BMC Minerals’ shares with a speculative buy rating and $4.90 price target.

Based on its current share price of $2.82, this implies potential upside of 74% for investors over the next 12 months.

Morgans believes the company is positioned to generate significant EBITDA from its KZK project once it reaches steady state production. It commented:

We initiate coverage of BMC Minerals with a SPECULATIVE BUY rating and a target price of A$4.90ps. The Kudz Ze Kayah (KZK) project is a high grade undeveloped polymetallic deposit, with high silver equivalent reserve grades of 597g/t AgEq and an indicative ~32Moz Ag per annum production profile. Indicative economics of KZK are solid.

We model steady state average annual financials of US$780m revenue, US$435m EBITDA at a 52% EBITDA margin, US$287m FCF and FCF yields of 29% based on precious and base metals price assumptions well below current spot prices. With BMC, we see parallels to past prolific polymetallic/base metals assets which generated strong returns for shareholders: Vares for Adriatic, Nova-Bollinger for Sirius and De Grussa for Sandfire.

How else can you gain exposure to the booming silver price?

There are other ways for investors to get access to the silver boom.

One way is through the Global X Physical Silver Structured (ASX: ETPMAG).

Global X notes that this fund offers a low-cost and secure way to access physical silver via the stock exchange. This means investors can avoid the need to personally store their own bullion.

The post Want silver exposure? Morgans says this ASX silver stock is a buy appeared first on The Motley Fool Australia.

More reading

• The best performing Global X ASX ETFs this year
• Forget gold! Meet the 2 metals up by +150% in 2025 and the ASX ETFs riding the wave

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.

Building passive income is often made to sound far more complicated than it needs to be.

Many Australians assume it requires years of saving, deep knowledge of stock selection, or the ability to predict interest rates and economic cycles. That belief alone stops plenty of people from starting.

In reality, building a passive income portfolio can be remarkably simple. 

With a small starting balance, a handful of diversified ETFs, and a commitment to consistency, investors can begin today — even with as little as $500.

Keep it simple

One of the biggest advantages of exchange-traded funds (ETFs) is diversification. Rather than relying on the fortunes of a few individual companies, an ETF provides exposure to dozens or even hundreds of businesses in a single investment.

That diversification helps smooth returns and typically reduces volatility compared to holding a concentrated portfolio of individual shares. It also removes the pressure to “get it right” by picking winners.

For passive income investors, this means fewer decisions, less stress, and a smoother ride over time.

Low cost, easy to buy, easy to stick with

ETFs are also designed for simplicity.

They tend to have low management fees, keeping more of your money invested and compounding. Buying an ETF is no more difficult than purchasing a single share, and most brokers allow investors to start with relatively small amounts.

Crucially, ETFs encourage good behaviour. By spreading risk and reducing complexity, they make it easier to stay invested and avoid reacting emotionally to short-term market movements.

That discipline often matters far more than clever strategy.

Two ETFs that show how passive income investing works

To see how this approach can look in practice, it helps to consider a couple of well-known income-focused ETFs.

The Vanguard Australian Shares High Yield ETF (ASX: VHY) takes a straightforward approach to passive income. It invests in Australian companies with higher-than-average forecast dividend yields, resulting in a portfolio dominated by established blue-chip businesses such as banks, miners, and large industrial companies. Income is generated through dividends, often with the added benefit of franking credits. For many investors, this makes VHY a simple way to access reliable income from familiar Australian companies.

The BetaShares S&P 500 Yield Maximiser Fund (ASX: UMAX) uses a different strategy. It provides exposure to the 500 largest US companies while employing a covered-call strategy to generate additional income. This approach aims to deliver higher regular distributions and reduce portfolio volatility. The trade-off is that returns may be capped during strong market rallies, making UMAX more suitable for investors focused on income rather than maximum growth.

Together, these ETFs highlight how different income strategies can be packaged into simple, easy-to-buy investments without requiring investors to manage the complexity themselves.

Time and discipline do the heavy lifting

The real driver of passive income success is not trying to outsmart the market. It is time.

By investing regularly through dollar-cost averaging, investors spread their purchases across different market conditions. Reinvesting dividends compounds the effect by steadily increasing the number of units owned, which in turn generates more income over time.

At first, progress can feel slow. Over the years, however, compounding begins to accelerate, and the portfolio increasingly does the work on your behalf.

Foolish Takeaway

Building passive income does not require perfect timing, deep expertise, or large sums of money.

By automating regular investments into diversified ETFs, reinvesting income, and staying disciplined, investors can turn time into their most powerful ally. Starting small is not a disadvantage — it is simply the first step.

The post Want passive income? This simple ETF strategy makes it easier than most people think appeared first on The Motley Fool Australia.

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• 3 strong ASX ETFs to buy for passive income
• Vanguard reveals next lot of dividends for VAS and other ASX ETFs
• The ASX dividend portfolio I’d build for financial independence
• The three ETFs I’d buy to set up a starter portfolio
• Is the Vanguard Australian Shares Index ETF (VAS) the best way to invest in ASX shares?

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 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.

The Deep Yellow Ltd (ASX: DYL) share price is in focus today after the company announced the confirmed start date for its new Managing Director and CEO, Greg Field. The board highlighted ongoing progress on Deep Yellow’s strategy to become a leading global uranium producer and gave thanks to outgoing Acting CEO Craig Barnes.

What did Deep Yellow report?

• Confirmation of Greg Field’s commencement as Managing Director and CEO on 2 February 2026
• Craig Barnes to return to his role as Chief Financial Officer after serving as Acting CEO
• Continued dual-pillar growth strategy focused on uranium production and development
• Portfolio includes advanced projects: Tumas (Namibia) and Mulga Rock (Western Australia)

What else do investors need to know?

The Deep Yellow board expressed confidence in Greg Field’s experience, noting his leadership comes as the company nears key decisions for its flagship Tumas Project and wider asset portfolio. Executive Chair Chris Salisbury highlighted a smooth leadership transition, thanking Craig Barnes for his work as Acting CEO.

Deep Yellow continues to pursue growth with exploration at Alligator River and Omahola, alongside merger and acquisition opportunities that align with its strategy. The company remains focused on positioning itself as a reliable, long-term producer in a sector responding to growing demand for clean, baseload power.

What did Deep Yellow management say?

The Board’s Executive Chair Chris Salisbury said:

The Board is pleased to have Greg start earlier in the role. We are looking forward to Greg’s considerable experience and his leadership as we move towards critical decisions for our Tumas Project and other developments in our portfolio.

What’s next for Deep Yellow?

Looking ahead, Deep Yellow will finalise its executive leadership transition and continue progressing development decisions for its advanced uranium projects. The company’s dual-pillar growth plan remains unchanged, with attention on project approvals, expansion opportunities, and sector developments in uranium supply and demand.

Deep Yellow’s trajectory is anchored by both project advancement and ongoing exploration activity. Management also signals interest in further M&A should opportunities align with the company’s long-term vision.

Deep Yellow share price snapshot

Over the past 12 months, Deep Yellow shares have surged 58%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Deep Yellow welcomes new CEO as part of ongoing uranium growth strategy appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

There are a lot of ASX growth shares out there for investors to choose from.

To narrow things down, let’s take a look at five that brokers rate as buys. Here’s what you need to know about them:

Aristocrat Leisure Ltd (ASX: ALL)

Aristocrat Leisure is a global leader in gaming content and technology. While it is best known for land-based gaming machines, the company has built a much broader business spanning social casino games and online gaming. This diversification gives Aristocrat multiple growth pathways and reduces reliance on any single market.

Bell Potter believes it is well-placed for long term growth. It has a buy rating and $80.00 price target on its shares.

Breville Group Ltd (ASX: BRG)

Another ASX growth share that has been named as a buy is Breville Group. It has carved out a premium position in the global small appliances market. Rather than competing on price, Breville focuses on design-led products and innovation, particularly in coffee machines. This strategy has allowed it to build strong brand loyalty and maintain attractive margins. As consumers continue to premiumise everyday products, Breville has room to keep scaling internationally.

Morgans has a buy rating and $36.05 price target on its shares.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX growth share that could be a buy in January is Lovisa. It is a fashion jewellery retailer that is currently undertaking a major global expansion. At the last count, it was operating 1,075 stores across more than 50 markets.

Morgans has named it as one of its top picks in the retail sector. The broker has a buy rating and $40.00 price target on its shares.

Neuren Pharmaceuticals Ltd (ASX: NEU)

A fourth share to look at is Neuren Pharmaceuticals. It is focused on treatments for rare neurological disorders, which is an area of high unmet medical need. Success in this space can lead to significant earnings growth due to limited competition and strong pricing power. For growth investors comfortable with volatility, this growth share could be worth considering.

Bell Potter is a big fan and has a buy rating and $25.00 price target on its shares.

Web Travel Group Ltd (ASX: WEB)

Finally, Web Travel Group could be an ASX growth share to buy. Following the spin-off of its consumer-facing Webjet operations in 2024, the company is now focused on its WebBeds platform, which connects hotels with travel agents and tour operators worldwide. As travel demand continues to normalise and grow, Web Travel Group’s asset-light platform positions it to deliver strong earnings growth.

Macquarie has an outperform rating and $6.85 price target on its shares.

The post 5 top ASX growth shares to buy now with $5,000 appeared first on The Motley Fool Australia.

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• Why I look at past performance of ASX shares to help think about the future performance outlook
• The best ASX stocks to buy in January 2026 if you want both income and growth
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• Why Develop Global, Imricor Medical, Light & Wonder, and PWR shares are storming higher today

Motley Fool contributor James Mickleboro has positions in Lovisa and Web Travel Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

After years of operational disruption, balance sheet repair, and reputational rebuilding, Qantas Airways Ltd (ASX: QAN) is starting to look like a very different business again.

Qantas is no longer the distressed turnaround story it once was. But I still think the market may be underestimating how much earnings power this airline now has, and how durable those earnings could be through 2026 and beyond.

Here’s why I’m bullish on Qantas shares from here.

Earnings power is back, and looks more sustainable

One of the biggest changes at Qantas over the past few years has been the reset of its cost base and network discipline.

Capacity is being deployed more rationally, fleet decisions are more measured, and management has been far more focused on returns rather than simply chasing volume. That matters in an industry where margins can disappear quickly if discipline slips.

Consensus estimates currently point to earnings per share of 117.5 cents in FY26 and 126.1 cents in FY27. Those are not peak-cycle numbers driven by one-off factors. They reflect a business that is operating more efficiently and extracting better economics from both its domestic and international networks.

Importantly, from my perspective, that suggests Qantas is no longer just benefiting from post-pandemic travel recovery, but from a structurally improved operating model.

The domestic position remains a key advantage

Qantas’ strength in the Australian domestic market continues to underpin the investment case.

It operates in a market with limited competitors, high barriers to entry, and rational pricing behaviour. That does not mean competition is absent; just ask Virgin Australia Holdings Ltd (ASX: VGN). However, it does mean that price wars are less likely to destroy industry profitability the way they have in the past.

Corporate travel is also an important piece of the puzzle. While volumes may fluctuate with economic conditions, Qantas’ position as the preferred carrier for many business travellers supports load factors, yield quality, and revenue stability.

This domestic dominance provides a solid earnings foundation that many global airlines simply do not have.

Loyalty and premium segments add resilience

Another part of Qantas that I think is often underappreciated is the contribution from its Loyalty division.

The frequent flyer program is a high-margin business with strong cash generation, and it benefits from long-term partnerships across banking, retail, and travel. It adds a layer of earnings diversification that helps smooth the inherently cyclical nature of aviation.

At the same time, Qantas’ focus on premium travel, both domestically and internationally, supports higher yields. Premium passengers are typically less price-sensitive and more loyal, which can be valuable when economic conditions are mixed.

Shareholder returns are back on the table

Income investors are also starting to look at Qantas differently again.

Dividend estimates currently stand at 46.9 cents per share for FY26 and 44.5 cents for FY27. This means that at the current Qantas share price of $10.20, the market is forecasting a dividend yield of 4.6% this year before any franking credits.

While dividends can always change, these figures reflect a business that is now generating sufficient cash flow to reward shareholders, not just repair the balance sheet.

For investors who remember when dividends were completely off the agenda, that shift is meaningful.

Qantas shares look good value

Based on consensus forecasts, Qantas is trading on a forward P/E ratio of 9 times. That looks cheap to me, given the level of earnings being generated and the improvements in business quality.

Airlines will never be low-risk investments. Fuel prices, demand shocks, and operational issues are part of the landscape. But Qantas today looks better equipped to handle those challenges than it has been for many years.

Foolish Takeaway

I’m bullish on Qantas shares because I think the business has emerged from a difficult period leaner, more disciplined, and more focused on returns.

Investors are not buying a blue-sky growth story. They are buying an airline with restored earnings power, a strong domestic position, improving shareholder returns, and a more resilient operating model.

If management continues to deliver on its strategy and industry conditions remain broadly supportive, I believe Qantas shares could continue to reward patient investors as we move through 2026.

The post Why I would buy Qantas shares in 2026 appeared first on The Motley Fool Australia.

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

Codan Ltd (ASX: CDA) shares have been among the best performers on the ASX 200 index over the past 12 months.

During this time, the metal detector and communications products company’s shares are up almost 140%.

Is it too late to invest? Let’s see what analysts at Bell Potter are saying about this high-flying share.

What is the broker saying about this ASX 200 share?

Bell Potter highlights that Codan released a trading update which outlines its expectations for the first half of FY 2026.

Pleasingly, the ASX 200 share is expecting to report sales and profits comfortably ahead of the broker’s expectations. It said:

In 1H26e, CDA expects to report revenue of $394m, up 29% YoY (+4.8% beat on VA consensus of $376m) comprising: Metal Detection revenue of $168m up 46% YoY (+18.9% beat on VA); and Communication revenue of $222m up 19% YoY (-3.9% miss) consistent with company’s target growth range of 15-20%. CDA expects 1H26e underlying NPAT of “not less than $70m”, up >52% YoY (+13% beat on VA consensus of $62m), implying NPAT margin of 17.8% (15.1% 1H25a).

The strong revenue and NPAT print appears driven by growth in gold detector sales in the African region, and metal detector sales in other key rest of world recreational markets. Growth in Communications revenue included a full 6 months of the Kagwerks acquisition (vs. 1 month in 1H25a).

Should you buy Codan shares?

While Bell Potter has updated its earnings forecasts for the coming years and boosted its valuation, it feels that the ASX 200 share is fairly valued after its strong run.

According to the note, the broker has retained its hold rating with an improved price target of $36.70 (from $27.80). This is largely in line with its current share price of $37.00.

Commenting on its hold recommendation, the broker said:

We have increased our EV/EBIT multiple in our blended DCF / relative valuation methodology to 40.0x to reflect improving defence sector sentiment and improving Metal Detection outlook. Our updated PT is $36.70. We retain our HOLD recommendation.

We believe CDA shares trade at fair value on 33x EV / EBIT (59% above its 2-year average) amidst improving operating momentum and improving outlook in both segments. Given the seasonality evident in the Metal Detection business we see potential for a FY26e Metal Detection revenue upgrade if positive commentary is given at the 1H26e result.

The post What is Bell Potter saying about this high-flying ASX 200 share after its 140% rise? 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.

The Monadelphous Group Ltd (ASX: MND) share price is in focus today as the company announced it’s secured a new $300 million, five-year maintenance contract with Rio Tinto Ltd (ASX: RIO) for its Pilbara iron ore operations.

What did Monadelphous Group report?

• Won a major long-term maintenance contract with Rio Tinto, valued at around $300 million over five years
• The contract covers fixed plant and shutdown services for multiple iron ore sites in the Pilbara
• Monadelphous will deliver mechanical and access services for Rio Tinto’s Pilbara operations
• Strengthens Monadelphous’ position as a leading maintenance service provider to the resources sector

What else do investors need to know?

This significant contract win means Monadelphous will continue its long-standing relationship with Rio Tinto, building on over 30 years of service to its Pilbara iron ore sites. The company highlighted the safety and reliability of its workforce as key factors in securing the new work.

With this contract, Monadelphous boosts its already strong pipeline of resources sector projects. The company operates widely across Australia and the Asia-Pacific, with business spanning mining, energy, and infrastructure industries.

What’s next for Monadelphous Group?

Management expects this new contract to support stable, long-term revenues in the years ahead and deepen its partnership with Rio Tinto. The company remains focused on safe project delivery and exploring further opportunities in the resources and energy sectors.

Looking forward, Monadelphous will continue to leverage its specialist skills and reputation for reliability to seek out new work. Its ongoing investment in workforce capability is expected to underpin future growth.

Monadelphous Group share price snapshot

Over the past 12 months, Monadelphous Group shares have risen 97%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Monadelphous secures $300m Rio Tinto contract appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

I really like owning growing ASX shares. However, if those businesses don’t pay a dividend then our bank account doesn’t see the benefit of that growth unless we sell a portion, or all, of the holding. Wouldn’t it be great to own a growing business that also pays dividends?

Given how many ASX shares generate franking credits when they pay Australian company income tax, it does make sense for a number of businesses to unlock those credits for shareholders through dividend payments.

Therefore, if we pick the right businesses, it could provide revenue growth, earnings growth, a good dividend yield and payout growth.

Wesfarmers Ltd (ASX: WES)

This company is the parent of a number of leading businesses including Bunnings, Kmart, Officeworks, Priceline and Target. It also has a number of small healthcare businesses, the chemicals, energy and fertiliser (WesCEF) segment and industrial and safety businesses.

It’s very diversified, with exposure to a number of different sectors and I think this gives the business pleasing growth avenues.

The quality of Bunnings and Kmart has been clearly demonstrated over the last six years, with growing earnings and expansion of product ranges. Kmart’s Anko products are now being sold in significant quantities in North America and the Philippines.

FY25 was a perfect example of the company’s ability to grow earnings and the dividend, despite the difficult trading conditions. Underlying earnings per share (EPS) grew by 3.7% and the full-year dividend grew by 4% to $2.06 per share. That’s a grossed-up dividend yield of 3.6%, including franking credits, at the time of writing.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is a leading business in the funds management space.

The ASX share owns a minority stake in a number of fund managers including Hyperion, Plato, Palisade, Resolution Capital, Solaris, Antipodes, Spheria, Firetrail, Metrics, Coolabah Capital, Aikya, Five V, Life Cycle and Pacific Asset Management.

It offers those fund managers a number of services including compliance, finance, legal, fund administration, distribution and client services, technology, seed funds under management and working capital.

Pinnacle grew its FY25 EPS by 37% to 62.4 cents, the FUM rose 63% to $179.4 billion and the dividend per share was hiked by 43% to 42 cents. Excitingly, FUM grew by another 10% in the first quarter of FY26.

Ongoing FUM growth for the fund managers and new fund managers added into the portfolio could help drive earnings higher in the coming years. The FY25 payout translates into a grossed-up dividend yield of approximately 3.5%, including franking credits.

Sonic Healthcare Ltd (ASX: SHL)

Sonic is a large healthcare business, with its earnings largely coming from pathology. It has a presence in a number of countries including Australia, New Zealand, the UK, the US, Germany and Switzerland.

The company’s revenue is benefiting from multiple tailwinds including ageing populations and growing populations in its core markets.

The business is expecting to grow its operating profit (EBITDA) by up to 13% year-over-year in FY26, with both organic growth and acquisitions helping the company’s financials.

On the dividend side of things, over the last 30 years, it has grown its payout almost every year, except for a couple of years where it was maintained in the early 2010s.

Excluding franking credits, its FY25 payout translates into a dividend yield of 4.8%.

The post 3 ASX shares that I rate as buys for both growth and dividends 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 and Wesfarmers. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has recommended Sonic Healthcare and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Experts look at a wide range of S&P/ASX 200 Index (ASX: XJO) shares for opportunities. There’s one investment in particular that has attracted a lot of positive attention: Flight Centre Travel Group Ltd (ASX: FLT) shares.

The ASX travel share has consumer-focused and business-focused divisions. It’s currently rated as a buy by 13 different analysts, making it one of the most popular businesses among brokers right now.

Of course, being popular doesn’t necessarily mean it’s going to generate the biggest returns, but numerous buy ratings could be a positive sign. Let’s take a look at why Flight Centre shares look so positive.

Rising earnings expected for the ASX 200 share

One of the most important factors in sending a share price higher is rising earnings.

Flight Centre recently increased FY26’s underlying profit before tax (PBT) guidance by $10 million to a range of $315 million to $350 million, up from a range of $305 million to $340 million.

The broker UBS expects the ASX 200 share to generate $230 million of net profit in FY26. UBS expects Flight Centre to increase its net profit to $281 million in FY27, $330 million in FY28, $361 million in FY29 and $385 million in FY30.

If net profit does rise 67% between FY26 and FY30, it would be a great tailwind for shareholder returns.

UBS noted after seeing the FY26 first quarter that ongoing productivity initiatives in the corporate division is “driving efficiency improvements”, with a 7% rise of total transaction value (TTV) alongside a 5% reduction of the headcount.

In the leisure segment, the business is seeing some “greenshoots” emerging in US bookings from Australia. October was the first month of growth since the quarter of the three months to March 2025.

UBS is also expecting a recovery of Asia losses, with a more stable trading climate and ongoing cost reduction and productivity benefits.

Overall, UBS is seeing signs of improvement, combined with its cruise agency acquisition.

Acquisition

The ASX 200 travel share recently announced the acquisition of Iglu, with $200 million upfront and $54 million in performance-based targets. It’s the leading cruise agency in the UK.

This has diversified the leisure segment, both from increasing the northern hemisphere exposure and a bigger shift into the cruise subsegment (which now represents around $2 billion of total transaction value (TTV)).

The acquisition could boost earnings per share (EPS) by around 5% to 6% in FY27 and FY28, assuming the cruise division grows at 7% per annum.

While the negative shift in the outlook for Australian interest rates is a negative for leisure, new business wins for the corporate segment has arguably increased, according to UBS, and ongoing productivity initiatives “should continue to drive efficiency improvements”.

The acquisition is expected to deliver synergies for Flight Centre, including supplier leverage, procurement and operational efficiencies.

Low valuation

According to UBS, the ASX 200 share could generate $1.08 of EPS in FY26 and $1.37 in FY27.

That means the business is currently trading at 14x FY26’s estimated earnings and 11x FY27’s estimated earnings.

UBS currently has a price target of $16.45 on the ASX travel share, implying a possible rise of close to 10% within the next year.

The post Is this the best ASX 200 share to buy today? appeared first on The Motley Fool Australia.

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

Owning an investment property sounds great in theory. Regular rental income. Long-term capital growth. A tangible asset you can touch.

In reality, many landlords discover that property investing comes with far more stress — and physical cost — than expected. Maintenance issues never arrive at convenient times. Tenants move out. Interest rates rise. Insurance premiums climb. And a large chunk of “rental income” quietly disappears into repairs, rates, and ongoing upkeep.

The good news is that Australian investors don’t need to own a physical property to benefit from property investing. The ASX offers simpler, more diversified ways to gain exposure to real estate — without fixing taps, chasing rent, or answering late-night calls.

How property investing works on the ASX

Investing in property through the share market allows investors to gain exposure to real estate assets without owning or managing them directly.

Two common options are property-focused exchange traded funds (ETFs) and listed real estate investment trusts (REITs).

These vehicles typically own diversified portfolios of commercial property such as shopping centres, office buildings, industrial warehouses, healthcare facilities, and logistics hubs. Income is generated through rent paid by tenants, which is then distributed to investors.

Importantly, the day-to-day management, maintenance, and capital expenditure are handled by professional managers — not individual investors.

Property ETFs: diversification made easy

Property ETFs provide broad exposure to the real estate sector in a single investment.

For example, the Vanguard Australian Property Securities ETF (ASX: VAP), tracks a basket of Australian listed property companies and REITs. This gives investors exposure to dozens of property assets across multiple sectors, rather than relying on the fortunes of one residential property.

The appeal is simplicity. Investors can buy or sell units on the ASX, reinvest income automatically, and scale their exposure over time — all without dealing with tenants or maintenance.

Listed REITs: owning slices of quality property

Investors can also choose individual listed property companies.

One example is Goodman Group (ASX: GMG), which owns and develops industrial and logistics property globally. Its assets include data centres, warehouses and distribution centres that support e-commerce and global supply chains.

Another is Charter Hall Long WALE REIT (ASX: CLW). It stands out for broad exposure across the property market rather than relying on a single sector. Its portfolio spans everything from government-leased assets and data centres to service stations, hotels and pubs, grocery distribution hubs, food manufacturing sites, waste and recycling facilities, telecommunications exchanges, and large-format retail properties such as Bunnings.

These investments generate income from long-term leases and are required to distribute a large portion of their earnings to investors, making them popular with income-focused portfolios. The added level of diversification helps REITs smooth income streams and reduces reliance on any one tenant type or property segment.

The Foolish takeaway

Property investing does not have to involve physical ownership, leverage, or hands-on management.

ASX-listed property investments allow Australians to benefit from rental income and long-term property trends, while avoiding many of the hidden costs and stresses of being a landlord. They also offer greater diversification, liquidity, and flexibility than owning a single residential property.

The post Skip landlord stress with these ASX property shares 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 Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.