If there’s one investing principle Warren Buffett has repeated more than any other, it is to buy wonderful companies at fair or undervalued prices.

Not speculative names. Not the hottest trend. Just proven businesses that are temporarily trading below what they are truly worth.

It is a simple philosophy, but it is also one of the main reasons the Oracle of Omaha has outperformed the broader market for more than half a century, and it remains just as relevant today.

Even after the recent rebound in global markets, pockets of undervaluation still exist. And for long-term investors, these opportunities may be far more attractive than trying to chase whatever is surging right now.

Warren Buffett doesn’t hunt for cheap shares

Buffett has always made it clear that undervalued shares aren’t the same as good value shares. A stock can look cheap on paper but still be a bad investment if the underlying business is deteriorating.

What Buffett actually looks for is value relative to quality, strong competitive advantages, durable earnings, talent management, and long-term tailwinds.

If a company ticks those boxes and the market is mispricing it due to short-term pessimism, that is when Buffett becomes interested.

This mindset has delivered decade after decade of outperformance, not through luck, but because buying undervalued high-quality businesses creates a natural margin of safety and amplifies long-term returns.

Powerful in uncertain markets

A common mistake that investors make is waiting for the perfect moment to buy ASX shares. Buffett doesn’t try to predict market tops or bottoms; he simply focuses on value.

And when markets wobble, sentiment weakens, or headlines turn negative, that’s when mispricings often occur.

Today’s environment is a perfect example. There are plenty of high-quality ASX shares that trade well below their long-term averages. Think of companies such as CSL Ltd (ASX: CSL), which remains deeply discounted despite strong fundamentals, or Xero Ltd (ASX: XRO), which has been sold off far more than its long-term growth outlook deserves.

These situations don’t guarantee gains. No investment does. But what they offer is a level of valuation support that speculative, overhyped sectors simply cannot match.

Buffett’s point is simple: if you buy a high-quality business at a sensible price, you are already ahead, no matter what the market does next.

Foolish takeaway

Warren Buffett’s advice hasn’t changed in 60 years because it keeps working. Buy great businesses when they are good value, hold them for as long as you can, and let compounding do the rest.

Even with markets rebounding recently, there are plenty of high-quality ASX shares that still trade below what they’re worth. For long-term investors, this may be the ideal moment to follow Buffett’s lead.

The post I’d listen to Warren Buffett’s advice to buy undervalued ASX shares today appeared first on The Motley Fool Australia.

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• The Warren Buffett golden rule that investors can’t ignore
• 2 ASX stocks to help turn $100,000 into $1 million
• These top ASX 200 stocks could rise 25% to 60%
• Macquarie reveals ASX 200 share tips in each market sector for 2026

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

ASX blue-chip shares are typically some of Australia’s biggest companies. Some of them do not have a lot of growth potential because they’re mature businesses with few avenues to accelerate earnings noticeably.

I think one of the main appeals of good blue chips is that they’re large and can deliver earnings growth.

The three businesses I want to tell you about are three of the strongest Australian companies that can grow at a pleasing pace.

Telstra Group Ltd (ASX: TLS)

Telstra is Australia’s leading telecommunications business, with the most subscribers and the widest network coverage.

Australia is becoming an increasingly digital country, and this is helping grow the importance of a 5G mobile connection. Telstra’s total subscriber numbers continue rising, and the average revenue per user (ARPU) is growing thanks to price increases.

I expect the company’s mobile revenue and operating profit (EBITDA) to increase in the coming years, which is the key division.

A bonus earnings boost could be the adoption of wireless broadband by households and small businesses – that’s where a broadband connection is powered by 5G rather than the NBN cables. These connections could be significantly more profitable for Telstra than a connection through the NBN.

Pleasingly, the ASX blue-chip share has grown its annual payout in recent years and currently has a grossed-up dividend yield of 5.5%, including franking credits.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of Australia’s largest retailers with a number of businesses, including Bunnings, Kmart, Officeworks, Target, and Priceline. WesCEF (chemicals, energy and fertilisers), healthcare businesses, and an industrial and safety division make up most of the rest of the business.

The company’s focus on providing customers with great value has led to Kmart and Bunnings achieving a strong market position in their respective retail sectors. Their scale means they’re able to achieve strong profit margins.

I like the efforts of the company to diversify its earnings, such as creating a healthcare division which now includes Priceline, Clear Skincare, SILK Group (laser clinics), Soul Pattinson Chemist, InstantScripts, and SiSU Health. The company is also working on a lithium mining project.

With ongoing business diversification and Kmart looking to sell more Anko products to international markets (such as North America and the Philippines), I think there is still a lot more growth ahead for this ASX blue-chip share.

Macquarie Group Ltd (ASX: MQG)

Macquarie is one of the largest ASX financial shares, and I think it has the ability to significantly scale in the coming years. It has more earnings diversification than the big four banks, with multiple divisions (beyond just banking) that generate a majority of Macquarie’s income internationally.

It has an asset management division, a local banking segment, investment banking, and a commodities and global markets (CGM) division. It has multiple areas that it can allocate money to generate growth.

Macquarie is rapidly growing its market share in Australia’s banking industry. In the FY26 first-half result, its home loan portfolio reached $160.3 billion, up 13% compared to 31 March 2025. That’s an incredible rise in six months – it has now reached a market share of 6.5%. Banking deposits rose by 12% to $192.5 billion.

Its banking strategies are clearly working because it has a net promoter score (NPS) – customer satisfaction – that’s “significantly above major bank peers”.

I think the ASX blue-chip share has a promising future.

The post These are the top ASX blue-chip shares I’d buy today appeared first on The Motley Fool Australia.

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• 3 reasons Telstra shares are a screaming buy right now!
• It’s time to buy: 1 Australian stock that hasn’t been this cheap in years

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. 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.

Last week certainly was a big one for interest rates in Australia.

The release of inflation data from the Australian Bureau of Statistics rocked the market and appeared to bring the curtain down on the Reserve Bank of Australia’s (RBA) rate cut cycle.

But is that actually the case? Let’s see what the economics team at Westpac Banking Corp (ASX: WBC) is saying about the outlook for interest rates.

Where are interest rates going?

The good news for borrowers is that Westpac doesn’t believe that interest rate cuts are over.

Its economists Illiana Jain and Ryan Wells highlight that electricity prices were to blame for the spike and don’t expect this pace of inflation to be sustained in 2026.

As a result, they have retained their view on the outlook for inflation and interest rates in Australia. They said:

It was a historic week in Australia, marked by the ABS publishing the October CPI – the first complete set of monthly inflation data. In the event, it surprised markets materially to the upside on both a headline (3.8%yr) and trimmed mean (3.3%yr) basis, although headline came in marginally lower than our forecast of 3.9%. Base effects around electricity prices, due to government subsidies, was the chief culprit behind the lift in headline inflation.

On the firmer trimmed mean result: around a third of the basket is running above 5%yr, but most of these components are administered prices, known supply shocks or volatile items, downplaying the impact of demand-side strength. Given this, we do not suspect such a pace of inflation to be sustained in 2026, so we retain our view on the outlook for inflation and interest rates.

Westpac’s forecasts

Westpac isn’t expecting the RBA to cut rates at next month’s monetary policy meeting, but it doesn’t think homeowners will have to wait too long for further relief.

According to its weekly economic note, Australia’s oldest bank continues to forecast the cash rate to be taken down from 3.6% to 3.35% by June of next year. After which, it expects a further cut to 3.1% by September 2026.

The even better news for borrowers is that Westpac doesn’t see potential for an interest rate hike any time soon. In fact, the bank’s economics team believes that the cash rate will then remain at 3.1% until at least December 2027.

The post Here’s what Westpac says the RBA will do with interest rates in December appeared first on The Motley Fool Australia.

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• Here is how Morgans rates the big four ASX 200 bank shares
• 3 excellent ASX ETFs for income investors to buy in December
• Buy this ASX bank share instead of the ‘big four’: expert
• Here’s the earnings forecast out to 2030 for Westpac shares
• Commonwealth Bank’s top tier status has begun to unwind, so which bank is looking good according to Wilsons Advisory?

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.

S&P/ASX 200 Index (ASX: XJO) shares closed lower on Friday, down 0.4% to 8,614.1 points.

As November draws to a close, we look back on some of the financial reports released this month and subsequent re-ratings from Morgans.

Here, we focus on five ASX 200 large-cap shares, which are companies that have a market capitalisation above $10 billion.

Let’s take a look.

Commonwealth Bank of Australia (ASX: CBA) 

CBA is the market’s largest ASX 200 financial share with a market capitalisation of $254 billion.

The CBA share price closed at $152.51, down 1.12%, on Friday.

Morgans has a sell rating on CBA shares with a price target of $96.07 following the bank’s 1Q FY26 update.

The broker said:

While the market wasn’t expecting much earnings growth (c.2% for 1H26, and we were more bullish than consensus), growth was weaker than these expectations.

We remain SELL rated on CBA, recommending clients aggressively reduce overweight positions given the risk of poor future investment returns arising from the even-now overvalued share price and low-to-mid single digit EPS/DPS growth outlook.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is the third-largest ASX 200 healthcare share with a market capitalisation of $28 billion.

The Pro Medicus share price closed at $266.54, down 0.6% yesterday.

Morgans upgraded Pro Medicus to an accumulate rating with an unchanged share price target of $290 this month.

PME’s share price has continued to decline since our last update, despite stable fundamentals and a consistent outlook.

This decrease appears to be due to a broader market shift away from high-growth stocks, as there have been no major new contracts or company-specific changes for PME since our previous report.

Upgrade to an ACCUMULATE recommendation, with the view that current prices represent a reasonable opportunity for partial positions, noting ongoing volatility in the name could still yet present further downside.

REA Group Ltd (ASX: REA)

The property portal owner is the second-largest ASX 200 communications share with a market capitalisation of $26 billion.

The REA share price closed at $195.91, down 1.33% on Friday.

Morgans upgraded its rating on REA shares to accumulate but cut its price target from $254 to $247 per share.

After REA’s 1Q FY26 trading update, Morgans commented:

REA’s 1Q26 trading update benefited from a strong yield outcome (+13%), which helped to offset a softer new listings environment in the period (volumes down -8% vs the pcp).

Group revenue was A$429m (+4% on pcp), with EBITDA (ex assoc.) up 5% on pcp to A$254m.

Given REA is trading on ~42x FY26F PE (MorgansE), broadly in line with its 10-year historical average, and now with >10% TSR upside to our valuation we upgrade REA to ACCUMULATE.

Goodman Group (ASX: GMG)

Goodman Group is the leader within the property and real estate investment trust (REIT) sector with a market cap of $60 billion.

The Goodman Group share price closed at $29.68, down 0.17% on Friday.

Morgans is positive on the real estate investment manager with an accumulate rating and share price target of $36.30.

GMG continues to reiterate the immense data centre opportunity ahead – 5GW of potential capacity across key global gateway cities.

However, the longer time to develop these assets is seeing capital intensity increase as data centres form a larger proportion of work-in-progress (WIP).

… we attribute much of the recent share price decline to the shifting narrative around the outlook for hyperscale capex.

To this end, we see the recent share price retracement more as an opportunity retaining our ACCUMULATE rating and $36.30/sh price target.

Resmed CDI (ASX: RMD)

Resmed is another giant of the ASX 200 healthcare sector with a market capitalisation of $36 billion.

The Resmed share price closed at $39.31, up 0.36% yesterday.

Morgans has an accumulate rating and $47.04 share price target on Resmed following the medical device developer’s 1Q FY26 update.

1Q results were solid and broadly in line, with high-single digit revenue growth, ongoing margin expansion, and strong cash flow.

We continue to view fundamentals as sound and the company in a strong position to support future earnings growth, with the upper end of FY26 GPM guidance (61-63%) likely achievable given a strong cadence of new high-margin product releases, an expanding US supply chain, along with continued investment in AI and digital health to drive awareness and increase patient diagnosis.

The post 5 ASX 200 large-cap shares re-rated by Morgans appeared first on The Motley Fool Australia.

More reading

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• $20,000 invested in CBA shares a year ago is now worth….

Motley Fool contributor Bronwyn Allen 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 and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Goodman Group and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Turning 50 is often the moment many Australians begin thinking more seriously about retirement.

While there is still plenty of time to grow your nest egg, this is usually the stage when people start comparing their super balance to others their age and wondering whether they’re on track.

Because super isn’t something most people openly discuss, it can be difficult to know whether you are ahead, behind, or somewhere in the middle.

Thankfully, Rest Super provides data that helps us estimate what the average 50-year-old Australian has saved.

Here’s what the numbers show, and what they might mean for your retirement outlook.

What is the average superannuation balance at 50?

Rest Super publishes balances in five-year age brackets, which means we need to use the surrounding figures to estimate the average for Australians aged 50.

For women, the average balance is $136,667 at ages 45–49 and $176,824 at ages 50–54.
For men, the average is $180,958 at ages 45–49 and $237,084 at ages 50–54.

Using these figures as a guide, the estimated average super balance at age 50 is approximately:

• Women: $157,000
• Men: $209,000

Is this enough for a comfortable retirement?

The Association of Superannuation Funds of Australia (ASFA) estimates that a single retiree needs about $595,000 for a comfortable retirement, and couples need around $690,000 combined.

ASFA defines a comfortable retirement as follows:

The comfortable retirement standard allows retirees to maintain a good standard of living in their post work years. It accounts for daily essentials, such as groceries, transport and home repairs, as well as private health insurance, a range of exercise and leisure activities and the occasional restaurant meal. Importantly it enables retirees to remain connected to family and friends virtually – through technology, and in person with an annual domestic trip and an international trip once every seven years.

Based on the Rest Super calculator, a 50-year-old woman with $157,000 today and a $70,000 annual salary could retire with around $369,000. Whereas a man with $209,000 could finish with about $443,000.

Combined, that is around $812,000, meaning the average couple is on track to exceed ASFA’s comfortable benchmark. For singles, though, there is still a gap.

But singles could still enjoy a modest retirement, with ASFA estimating that both singles and couples need $100,000, assuming they own their own home. If they are renting, a single person needs $340,000 and a couple needs $385,000 for a comfortable retirement. It is defined as:

The modest retirement standard budgets for a retirement lifestyle that is slightly above the Age Pension and allows retirees to afford basic health insurance and infrequent exercise, leisure and social activities with family and friends.

What if your balance is lower than the average?

If your super balance is behind where you would like it to be at 50, all is not lost. You still have 15–17 years until retirement, which is plenty of time to make meaningful progress.

Some strategies Australians often consider include salary-sacrificing, personal concessional contributions, reviewing fund performance, and ensuring fees aren’t eroding returns. Even small improvements can compound surprisingly quickly over the next decade and a half.

Foolish takeaway

Knowing the average superannuation balance at 50 can be helpful. But your own retirement ultimately depends on your goals, lifestyle expectations and the actions you take from here.

Whether you’re ahead of the average or still building toward it, the important thing is having a clear plan, and making each remaining working year count.

The post Here’s the average Australian superannuation balance at 50 appeared first on The Motley Fool Australia.

More reading

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• ASX 200 vs US stocks: Where the next decade of big winners may come from
• Is the S&P 500 set for a crash? Here’s my plan for the US stock market

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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Warren Buffett and Michael Burry are two of the most famous investors in modern history. While both have amassed enormous wealth, they share little in common when it comes to their respective investment strategies.

This dichotomy is on full display at the moment, as recent 13F filings reveal that Burry is shorting artificial intelligence (AI) stocks Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR), while Buffett just plowed more than $4 billion into Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG).

Let’s break down the underlying features of their latest moves in an attempt to assess which billionaire made the right choice, and to answer the question: Should you buy or sell AI stocks right now? 

Michael Burry’s latest big short

In simple terms, when an investor shorts a stock, they are betting that its price will decrease. One common way to construct a short trade is to buy put options on the stock you’re bearish about.

According to the most recent 13F filing from Scion Asset Management, the hedge fund Burry manages, during the third quarter, it purchased 5 million shares worth of put options for Palantir and 1 million put options for Nvidia. In total, these contracts are worth roughly $1.1 billion.

In my view, there are two primary reasons Burry went short on those stocks in particular.

With Palantir, Burry’s concern is likely its lofty valuation. As of Nov. 19, Palantir sported a price-to-sales (P/S) ratio of 107. Not only is this a hefty premium for the software sector, but it is also historically high when benchmarked against prior technology megatrends.

For instance, during the height of the dot-com bubble, the P/S ratios of internet pioneers such as Microsoft, Cisco, and Amazon peaked in the range of 30 to 50. Given how much further Palantir’s valuation has climbed beyond those excessive levels, it could be argued that the data analytics specialist is due for a pullback. Its current valuation appears unsustainable.

With Nvidia, Burry’s concerns are tied to a more subtle detail. The chipmaker is the market leader in graphics processing units (GPUs), advanced parallel processors that are widely used to develop and power generative AI applications.

Over the last few years, hyperscalers have laid out hundreds of billions of dollars to buy as many of Nvidia’s GPUs as possible. Where things become more complicated is how all this hardware is being accounted for on paper.

Let’s say a company expects the GPUs it buys to have a useful life of five years. If it spent $1 billion in a given year to procure these chips, then the business would generally depreciate this purchase ratably — in five annual installments of $200 million — over that estimated useful life. Because depreciation is treated on the books as an expense, that theoretical depreciation figure of $200 million will cut into the company’s reported earnings each year. This lowers its bottom-line figure for that year accordingly.

In reality, however, Nvidia has been releasing new chip architectures every other year since before the AI revolution kicked off, and in 2024, it accelerated its pace to an annual cadence. Against this backdrop, the true product life cycle of its GPUs might be only two or three years.

For now, though, with companies depreciating these expenses over longer horizons — five or six years, in some cases — they reduce the size of the annual expenses they have to report relative to depreciation, which makes their profits appear higher.

Burry is essentially accusing Nvidia and its customers of accounting fraud supported by artificially inflated profit margins.

The one magnificent stock Buffett just bought

During the third quarter, the only stock that Buffett and his portfolio managers added to Berkshire Hathaway‘s portfolio was Alphabet.

This was an interesting move, as Buffett had been trimming technology positions such as Apple for more than a year. Moreover, Berkshire has kept its stock purchases fairly muted recently, so its sales left it with a record cash stockpile.

In Q3, for the first time since the AI revolution began, the Oracle of Omaha finally decided to partake. Adding to the curiosity, Alphabet arguably sits at the intersection of Burry’s two concerns — valuation and accounting gimmicks.

On the valuation side, Buffett is notorious for not chasing hype or paying premium prices for investments. Given that the S&P 500‘s Shiller CAPE ratio level of 40 is dangerously close to levels last seen during the dot-com bubble, a solid argument could be made that the market isn’t just frothy — it’s overvalued. And AI stocks are the largest contributors to that condition.

S&P 500 Shiller CAPE Ratio data by YCharts.

Even so, Alphabet trades at a forward price to earnings (P/E) multiple of 28 — the second-lowest among the “Magnificent Seven.” With that in mind, shares of Alphabet could be seen as somewhat of a value play relative to the rest of its cohort.

When it comes to the accounting issues, I don’t think Buffett is too concerned. He’s a high-level thinker. What I mean by that is Buffett made his fortune investing in durable businesses that generate consistent profits and reward shareholders through dividends and stock buyback programs.

In other words, Buffett does not appear to be overly analytical when it comes to the specifics of a company’s generally accepted accounting principles (GAAP) financial reporting. The team at Berkshire is likely well aware of the accounting mechanisms employed by big tech, and it’s more than able to adjust its own models to perform what it views as accurate forecasting.

The verdict: Buffett and Burry have different mindsets

At the end of the day, Buffett and Burry are taking different approaches to the AI trade.

While both are contrarian investors, Burry should be thought of as a trader — he looks to identify anomalies or momentum opportunities that he can capitalize on. By contrast, Buffett invests for longer periods in businesses that have brand recognition and diverse ecosystems.

As a long-term investor, I am more inclined to follow Buffett’s playbook. Choosing companies to buy and hold forever is a proven, time-tested approach to compounding wealth.

While Burry may mint some short-term profits by betting against the AI pure plays, I think Buffett is better positioned for long-term gains. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Warren Buffett is buying artificial intelligence (AI) stocks while Michael Burry is shorting them — Who’s right? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Nvidia: There was a red flag in its earnings report, but is the stock still a buy?
• Could the Anthropic partnership be Nvidia’s most important AI deal yet?
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• If you’d invested $100 in Nvidia 10 years ago, here’s how much you’d have today

Adam Spatacco has positions in Alphabet, Amazon, Apple, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Cisco Systems, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a number of compelling top dividend stocks that Aussies can buy for sizeable and growing passive income.

Rising dividends are one of the most important aspects I want to see because that’s the sign of a growing business; it can help offset (and outpace) inflation and deliver more cash to our bank account each year.

The top dividend stock I want to highlight today is Centuria Industrial REIT (ASX: CIP), a real estate investment trust (REIT) that owns a portfolio of industrial properties across Australia.

How to make $200 per month of passive income

Receiving regular passive income is very rewarding due to its ease. Once the shares are bought, we don’t need to do any additional work for those payments.

The Centuria Industrial REIT doesn’t pay monthly, but it does pay quarterly. I think it’s better to think of it as an annual income goal and then divide that figure by 12. To generate $200 of monthly passive income, we’re talking about $2,400 of annual income.

The business expects to pay an annual distribution per unit of 16.8 cents. That translates into a future distribution yield of close to 5% for FY26.

I think that’s a solid starting point and represents a year-over-year increase of 3% compared to the FY24 payout. That level of growth is pleasing to see.

To receive $2,400 in annual passive income, an investor would need to own 14,286 shares of Centuria Industrial REIT.

Why this is an appealing time to buy into the top dividend stock

The business continues to generate strong rental outcomes for investors. For example, it recently signed a new 10-year lease with Tesla, which provided a 133% re-leasing spread for the Derrimut, Victoria asset. In other words, the new rental income is 133% higher than the old contract, boosting future rental profits.

Centuria Industrial REIT also recently pointed out that there’s an opportunity to capture value from some underutilised space, such as the REIT’s well-connected data centre in Clayton, Victoria. This site has the potential for a second data centre next to the Telstra Group Ltd (ASX: TLS) data centre of up to 40MW.  

During the last quarter, it also exchanged sale contracts to divest a property in Bundamba, Queensland, for $11.8 million, which was a 10% premium to the value stated at June 2025.

The REIT’s fund manager, Grant Nichols, said:

CIP continues to achieve strong outcomes across its portfolio relating to leasing, capital transactions and value add initiatives.

The ability to deliver these results is credited to CIP’s portfolio being concentrated in Australia’s urban infill markets where tenant demand is strongest, vacancy is low and supply is constrained. These urban infill assets provides multiple future opportunities for alternative, higher-use developments such as data centres and residential schemes.

The top dividend stock reported net tangible assets (NTA) of $3.92 per unit at 30 June 2025, so at the time of writing, it’s trading at a discount of more than 10%, which I think is very appealing.

The post Buy 14,286 shares of this top dividend stock for $200 per month in passive income 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 positions in and has recommended Tesla. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.