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

Artificial intelligence (AI) continues to be the biggest driving theme in the market today, and there is little reason to think that this won’t continue. Demand for both AI infrastructure and services appears insatiable, and it still looks as if we’re still in the very early innings of this trend.

Against this backdrop, let’s look at the top two AI stocks to buy right now. 

1. Nvidia

Nvidia (NASDAQ: NVDA) is the king of AI infrastructure, and the company’s recent acquisitions have made it even stronger. It’s best known for its graphics processing units (GPUs), which provide the processing power for the majority of AI workloads. GPUs are particularly dominant in large language model (LLM) training, where the company’s CUDA software platform adds to its wide moat. Nearly all foundational AI code was written on CUDA, and that code only works natively with Nvidia’s chips.

With its recent acquisition of SchedMD, Nvidia has only expanded its software moat. SchedMD is the developer of Slurm, an open-source software platform that helps manage GPUs by determining which tasks they perform and when. With this acquisition, Nvidia now controls the primary orchestration platform for AI chips. While it says it will keep Slurm open-source, its control over the platform will allow it to more tightly integrate it with CUDA to offer an even more seamless experience.

Then, on Christmas Eve, the company acquired top talent from Groq and signed a licensing agreement with the company for its technology. The deal essentially gives Nvidia access to Groq’s language processing units (LPUs), which are specialized chips designed specifically for AI inference. Demand for AI inference processing is eventually expected to become larger than demand for training, so this deal can be viewed as Nvidia playing both offense and defense to get ahead of that shift.

Overall, Nvidia remains the company best positioned to profit from the continued AI buildout, and its recent acquisitions only strengthen its position. The stock is also reasonably valued, trading at a forward price-to-earnings (P/E) ratio of about 25, based on analysts’ estimates for its fiscal 2027, which will begin in late January 2026.

2. Alphabet

Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is arguably the best positioned AI company because it is the only one not reliant on Nvidia.

While other companies are working on designing their own custom AI accelerator chips, Alphabet’s Tensor Processing Units (TPUs) are now in their seventh generation and have been battle-tested by running Google’s workloads for more than a decade. Those years of experience aren’t something that its competitors can easily emulate.

As such, the company enjoys a big structural cost advantage in both AI training (having trained its world-class AI model Gemini) and inference relative to companies that rely largely on Nvidia for chips. Its TPUs have proven so good that Anthropic signed a large deal with Alphabet to deploy TPUs to power its AI workloads. Morgan Stanley estimates that for every 500,000 TPUs that Alphabet rents out, it generates around $13 billion in revenue.

Alphabet’s other advantage over its cloud computing competitors is that it owns a world-class LLM that rivals OpenAI’s ChatGPT. First, this lets it capture more cloud computing revenue by offering its own model. Second, it can monetize its AI model more readily by integrating it into its products, including Google Search, its Android operating systems, YouTube, Google Maps, Gmail, and its workplace productivity tools. With lower costs for training and inference, as well as more platforms upon which it can deploy and monetize its models, Alphabet holds significant advantages over OpenAI and other LLM developers.

As the most vertically integrated AI company, Alphabet is in a strong position, and its advantages should only widen in the coming years. Meanwhile, the stock is attractively valued, trading at a forward P/E of 28. 

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

The post What are the 2 top artificial intelligence (AI) stocks to buy right now? 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.

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• If you’d invested $1,000 in Nvidia 10 years ago, here’s how much you’d have today

Geoffrey Seiler has positions in Alphabet. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet and Nvidia. The Motley Fool Australia has recommended Alphabet and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The continuing outperformance of US stocks vs. ASX shares reminds us of the value of considering overseas shares for our portfolios.

As the results below show, geographical diversification can pay off handsomely.

ASX exchange-traded funds (ETFs) have made it easier for Aussie investors to put money into overseas stocks via our local exchange.

If you’re considering investing outside the ASX, start your research here.

Top global broker UBS has revealed its 2026 forecast for three key markets outside the ASX: US, China, and Europe.

Here’s what UBS had to say, plus some examples of ASX ETFs that track these markets and how they performed in 2025.

US stocks

The S&P 500 Index (SP: .INX) rose by 16.39% in 2025 and has risen 82.25% over the past five years.

This compares to a 6.8% lift for the S&P/ASX 200 Index (ASX: XJO) last year and a 32.3% increase over five years.

In a recent article, UBS said:

US equities have room to rally further. We expect the S&P 500 to reach 7,300 by June next year and 7,700 by the end of 2026, driven by strong estimated earnings growth of 10% and looser Fed policy.

In addition to the transformative force of AI, we believe the structural trends of electrification and longevity will also drive equity performance for the long term.

Tactically, we believe AI beneficiaries are broadening out both within and beyond tech, and we see opportunities in companies facilitating grid modernization and supply critical raw materials.

In the longevity field, we expect strong growth in the obesity, oncology, and medical device markets.

Example ASX ETF tracking the US stock market: iShares S&P 500 AUD ETF (ASX: IVV)

The IVV ASX seeks to mirror the performance of the S&P 500 after fees, and rose 8.24% in 2025.

China stocks

The SSE Composite Index increased by 18.41% in 2025 and is currently 14.27% higher than where it was five years ago.

SSE stands for Shanghai Stock Exchange. This index is considered the benchmark for mainland China shares.

UBS comments:

China remains Attractive, and we view the correction in tech as an opportunity to add exposure. China’s tech shares have fallen sharply over the past two and a half months, with the Hang Seng TECH index down over 19% since its early October high.

But we expect the sector to recover over time, maintaining our preference on the broader Chinese market as well as its tech sector. In fact, we see reasons to buy the dip in Chinese tech stocks, which remain our highest conviction stock idea across global markets.

With Beijing doubling down on self-sufficiency, ramping up chip manufacturing capabilities, and subsidizing data centers, we expect capex from major tech companies to grow 26% in 2026.

In addition, Chinese internet giants have demonstrated their ability to integrate AI into profitable business models, while domestic liquidity remains a key pillar of support for China’s equity market.

Chinese tech stock valuations are also attractive, and we expect the sector to deliver earnings growth of over 25% per annum over the next two years.

Example ASX ETF tracking the China stock market: VanEck FTSE China A50 ETF (ASX: CETF).

Rising 10.4% in 2025, CETF tracks the FTSE China A50 Index, representing the 50 largest China equities.

There is no ASX ETF tracking the SSE Composite.

European stocks

The MSCI Europe Index lifted 31.95% in 2025 and has gained 43.61% over the past five years.

MSCI Europe covers approximately 85% of stocks listed across Europe’s developed markets.

UBS says:

European equities should benefit from a recovery in growth. Eurozone industrial production in October rose at the fastest pace in five months, and the December flash PMI rounded off the region’s best quarterly performance in two and a half years.

We anticipate that positive macroeconomic momentum in the Eurozone will persist, and we expect corporate profit growth to pick up to 7% in 2026 and 18% in 2027.

Germany’s increased defense and infrastructure spending should boost investment, while improved banking sector health would support business lending.

Europe is also home to some firms that are driving structural trends … Within the region, we particularly like banks, utilities, industrials, technology, and Germany.

Example ASX ETF tracking the European stock market: Vanguard FTSE Europe Shares ETF (ASX: VEQ).

Up 22.4% in 2025, VEQ ETF tracks the FTSE Developed Europe All Cap Index (net dividends reinvested) in Australian dollars, before fees.

There is no ASX ETF tracking the MSCI Europe Index.

The post Keen to invest outside the ASX? UBS reveals 2026 forecast for US, China, and Euro stocks appeared first on The Motley Fool Australia.

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• How to invest like Warren Buffett without picking ASX stocks

Motley Fool contributor Bronwyn Allen has positions in iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended iShares S&P 500 ETF. The Motley Fool Australia has recommended iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Retiring with a $1 million share portfolio might sound ambitious, but from the perspective of a 40-year-old, it is far more achievable than many people realise.

The key ingredients are time, consistency, and a willingness to let compounding work its magic.

Let’s assume you are 40 today, have $10,000 ready to invest, and are prepared to think long term.

Starting with $10,000 at age 40

At 40, your biggest advantage is time. With 25 to 30 years until a typical retirement age, even modest, disciplined investing can snowball into something substantial.

If that initial $10,000 is invested into a diversified ASX share portfolio and earns a long-term average return of 10% per annum, it would grow to around $110,000 after 25 years, even if you never added another dollar. That alone won’t get you to $1 million, but it shows how powerful time can be.

The real magic happens when you combine that growth with regular contributions.

Consistent investing

To turn a $10,000 starting balance into a $1 million ASX share portfolio, ongoing investing in ASX shares is essential. This doesn’t require huge sacrifices, just consistency.

For example, starting with $10,000 and then investing $750 per month would grow into approximately $1 million over 25 years with a 10% average total annual return.

I believe this demonstrates that time in the market is more important than by trying to pick the perfect stock.

But which ASX shares should you buy? Let’s dig deeper into that.

What to invest in

From a 40-year-old’s perspective, the focus should be on growth rather than income. Dividends are a bonus, but the priority is owning high-quality ASX shares and/or exchange traded funds (ETFs) that can compound earnings for decades.

A sensible approach is to build a diversified portfolio that includes leading Australian shares, broad-market ETFs, and some global exposure. This reduces reliance on any single business or sector and helps smooth returns over time.

This might mean quality ASX shares like Macquarie Group Ltd (ASX: MQG) or ResMed Inc. (ASX: RMD), or ETFs such as the Betashares Nasdaq 100 ETF (ASX: NDQ) and the Vanguard Msci Index International Shares ETF (ASX: VGS).

Reinvesting dividends rather than spending them is also crucial in the accumulation phase. It may feel boring, but it significantly accelerates compounding.

Staying the course

One of the biggest risks to not reaching a $1 million portfolio is not market crashes, but investor behaviour. Over a 20 to 25-year period, there will be recessions, bear markets, and periods where investing feels uncomfortable.

From the perspective of a long-term investor, these moments are not threats but opportunities. Continuing to invest during downturns often leads to better outcomes, as new money is deployed when valuations are lower.

Overall, patience and discipline matter far more than timing the market perfectly.

Foolish takeaway

From age 40, retiring with a $1 million ASX share portfolio is not about luck. It is about starting early enough, investing consistently, and giving compounding the time it needs to work.

The post How to retire with a $1 million ASX share portfolio appeared first on The Motley Fool Australia.

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• These were the best-performing ASX 200 shares in December
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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF, Macquarie Group, and ResMed. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF, Macquarie Group, and ResMed. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Judo Capital Holdings Ltd (ASX: JDO) share price is in focus today after the bank reported its gross loans and advances hit approximately $13.4 billion as of 31 December 2025, showing continued growth during the first half of FY26.

What did Judo Capital report?

• Gross loans and advances (GLAs) reached ~$13.4 billion as at 31 December 2025
• Growth consistent with management’s expectations and guidance
• On track for FY26 GLA guidance of $14.2–$14.7 billion
• Profit before tax guidance for FY26 maintained at $180–$190 million (FY25: $125.6 million)
• Full half-year results (1H26) due 17 February 2026

What else do investors need to know?

Judo continues to focus its growth on relationship-based lending to small and medium-sized enterprises (SMEs), which has helped the bank maintain good business momentum and customer engagement. Management noted that monthly loan growth can vary, but the overall pace remains disciplined as Judo targets sustainable economic outcomes.

The update highlights Judo’s confidence in delivering significant operating leverage over the coming year. With the 1H26 results announcement set for mid-February, investors will be keen to see how growth and profitability targets are progressing, especially considering uncertain economic conditions.

What did Judo Capital Holdings management say?

Judo Capital CEO Chris Bayliss said:

We are pleased to have delivered strong loan growth in the first half of FY26, in line with our expectations. Our relationship-led value proposition continues to resonate with SME customers, and we are seeing good momentum across our business.

While our monthly growth can vary, we continue to manage our overall pace of lending growth while also achieving sustainable economics. We remain on track to achieve our existing FY26 GLA guidance of $14.2b to $14.7b.

Judo will demonstrate significant operating leverage in FY26, and we remain on track to achieve our existing guidance for Profit Before Tax of between $180m to $190m, up from $125.6m in FY25.

What’s next for Judo Capital?

Judo is aiming to achieve total loans and advances of $14.2–$14.7 billion in FY26 while also boosting profit before tax to up to $190 million. The bank says it is demonstrating operating leverage, suggesting improved efficiency as the business grows in size.

Investors can look forward to more detail when Judo releases its 1H26 results on 17 February 2026. The company’s progress on these milestones—and how it navigates the SME lending environment—will be key areas to watch in the coming months.

Judo Capital share price snapshot

Over the past 12 months, Judo Capital shares have declined 7%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Judo Capital’s loan book tops $13.4bn in FY26 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 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.

Real estate and property ownership is synonymous with Australian values, both investing and in life. 

However, the harsh reality is that owning real estate still comes with significant barriers for many Aussies. 

First and foremost, the traditional 20% deposit for a home in Australia means you need a seriously full savings account. 

Data shows the median house price in Australia sits at roughly $980,343, according to Cotality data.

That means to comfortably buy the average house, you need almost $200,000 in savings. 

Luckily, investing in the stock market comes with a much lower barrier to entry. 

So for Aussies looking for exposure to the real estate market without the lofty price tag, one option to consider is real estate shares. 

Rather than a physical house or apartment, you can invest in companies that typically own or manage income-producing properties such as shopping centres, offices, industrial warehouses, or residential developments. 

These are called REITs. 

How did real estate stocks perform last year?

ASX real estate stocks performed modestly in 2025. 

The S&P/ASX 200 Real Estate Index (ASX: XRE) rose about 5% last year. 

This was slightly below the ASX 200 benchmark index which rose roughly 6.3%. 

Like any sector, there were individual ASX real estate stocks that rose, while others lost significant ground. 

There are a couple that had down years that may have now fallen into the value range. 

Two in particular that could be worth monitoring in 2026 are DigiCo Infrastructure REIT (ASX: DGT) and Lendlease Group (ASX: LLC). 

Is there value for these real estate stocks?

DigiCo Infrastructure REIT (ASX: DGT) is one of the ASX real estate stocks that fell the furthest in the sector last year. 

The company is a diversified owner, operator and developer of data centres, with a global portfolio. 

Its stock price fell more than 37% last year. 

However, from December 18 it recovered almost 18% following its AGM.

I think this real estate stock could be set to benefit from future AI tailwinds. 

Artificial intelligence – especially large-scale generative models and cloud-based AI services – requires massive amounts of compute power, storage, connectivity, and cooling infrastructure to run efficiently. This infrastructure is largely housed in data centres, which is the main focus of DigiCo. 

Macquarie seems to agree there is upside, with the broker tipping more than 50% upside from last year’s closing price. 

The broker has a $4.16 a share 12-month price target. 

A second real estate stock that could be trading below fair value is Lendlease Group (ASX: LLC). 

Its share price fell more than 16% last year. 

However it ended the year with positive momentum on the back of a major contract win.

Furthermore, it seems poised for future growth with fundamentals turning a corner in FY25. 

TradingView has a 12-month price target of approximately $6.45, which is roughly 24% higher than current levels.

The post Two ASX real estate stocks to watch in 2026 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.

If starting an investing journey in 2026 was your new year’s resolution, welcome to The Motley Fool! 

Understandably, there can be plenty of information when it comes to investing in shares. 

But to simplify things, one strategy is to buy ASX ETFs. 

Why invest in an ASX ETF?

There are thousands of companies available to investors on the ASX. 

You can invest in these companies by purchasing shares. 

The goal is for the value of these shares to rise over time, as the company grows, generates more profit etc. 

However it can be difficult to decide which company to invest in.

But with an ASX ETF, you can gain exposure to a basket of shares with just one trade. 

So rather than picking and choosing individual stocks, an ASX ETF combines multiple – sometimes hundred of companies into one basket. 

So if you want to buy shares in 100 companies, you can actually do this at once, rather than 100 individual trades. 

The value of diversification

Diversifying your portfolio simply means not putting all your eggs in one basket. 

Here in Australia, the 200 largest companies are called the S&P/ASX 200 Index (ASX: XJO). 

Tracking this index gives us an idea of how the Australian stock market is performing relative to years past, and other countries. 

For example, in 2025, this index increased by 6.26%. 

So if someone had $1,000 invested in an ASX ETF that moves in line with the ASX 200, it would have risen by roughly $1,062.60. 

So approximately a $62 profit. 

Historically, this return in 2025 was slightly below the average performance of the ASX 200 which has returned roughly 9-10%. 

An ASX ETF that has exposure to all top 200 companies is an example of diversification because it gives exposure to more than just one company. 

If one company performs poorly, losses can be offset by others that perform well. 

This theory can be taken even further. 

For example, there are years the ASX 200 performs poorly, like in 2022, the ASX 200 lost more than 5%. 

The benefit of diversification is that while the Australian market may decline, companies elsewhere can gain value over the same period. 

Starting a portfolio with 2 ASX ETFs

So taking into consideration these fundamental principles, there is a strong portfolio new investors can access with just two trades. 

The first ASX ETF a new investor might consider is iShares Core S&P/ASX 200 ETF (ASX: IOZ). 

The fund aims to provide investors with the performance of the S&P/ASX 200. 

As discussed earlier, this index is the 200 largest companies in Australia by market capitalisation. 

A great compliment to this fund is the iShares MSCI World ex Australia Quality ETF (ASX:IQLT). 

It is made up of almost 300 companies outside of Australia. 

These are large and mid-cap developed markets companies outside Australia, chosen because of higher profitability, lower leverage, consistent earnings growth. 

It includes some of the largest companies in the world like Meta Platforms (NASDAQ: META) and Apple (NASDAQ: AAPL). 

These two funds can be a great starting point for a new investor, to gain access to historically well-performing companies both here in Australia and abroad. 

The post How to build a beginner portfolio in 2026 with just two ASX ETFs 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.

Soaring commodity prices made ASX 200 materials shares the best performers of the 11 market sectors in 2025.

Scores of ASX 200 mining shares benefited from rip-roaring metals and minerals prices, particularly gold, silver, copper, and lithium.

Strong central bank buying, falling interest rates, and less trust in the US dollar is supporting record gold and silver prices today.

Meanwhile, the green energy transition is showing up in raised demand for copper, lithium, and silver, which is used in solar panels.

Let’s take a look at the best performing metals and minerals of 2025, and some of the ASX mining shares that ripped as a result.

12 best performing commodities of 2025

Here are the 12 strongest commodities for price growth based on Trading Economics data.

ASX mining shares riding the commodities wave

ASX gold shares ripped in 2025, with Pantoro Gold Ltd (ASX: PNR) the best performer of the ASX 200, up 220%.

Resolute Mining Ltd (ASX: RSG) shares soared 206% and Regis Resources Ltd (ASX: RRL) stock leapt 196%.

Among the gold large-caps, Northern Star Resources Ltd (ASX: NST) shares rocketed 73%, Evolution Mining Ltd (ASX: EVN) jumped 164%, and Newmont Corporation CDI (ASX: NEM) increased 152%.

ASX silver shares also shot the lights out, with Andean Silver (ASX: ASL) lifting 200% and Silver Mines Ltd (ASX: SVL) leaping 182%.

The Sun Silver Ltd (ASX: SS1) share price rose 213% while Unico Silver Ltd (ASX: USL) shares jumped 346%.

ASX lithium shares soared in 2H CY25 after lithium prices began a long-awaited recovering in July after three years of weakness.

The PLS Group Ltd (ASX: PLS) share price rose 93% while lithium and nickel producer IGO Ltd (ASX: IGO) lifted 72%.

Core Lithium Ltd (ASX: CXO) shares leapt 206%.

ASX copper shares also bounced, with the market’s largest pure-play copper miner, Sandfire Resources Ltd (ASX: SFR), soaring 93%.

Capstone Copper Corp CDI (ASX: CSC) shares lifted 55%.

The iron ore price finished the year at US$107.13 per tonne, up 6.48%.

All three of the major iron ore producers rose over the year.

The BHP Group Ltd (ASX: BHP) share price increased 15% while Fortescue Ltd (ASX: FMG) shares lifted 21%.

The Rio Tinto Ltd (ASX: RIO) share price increased 25%.

The post 12 best performing commodities of 2025 appeared first on The Motley Fool Australia.

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

The Northern Star Resources Ltd (ASX: NST) share price has delivered a standout year for investors in 2025. The gold miner’s shares are up around 73% over the year, comfortably outperforming the broader S&P/ASX 200 Index (ASX: XJO).

After such a strong run, attention is now turning to what comes next for Northern Star shares in 2026.

Let’s take a closer look.

A strong finish to 2025

Several factors helped drive Northern Star’s share price higher over the past year.

The biggest tailwind has been the gold price rally, with gold climbing to around US$4,500 per ounce and hitting record highs during 2025. That strength flowed directly through to earnings and cash flow across the business.

Operationally, the company continued to deliver solid production across its portfolio, while keeping a close eye on costs. This helped support margins despite inflation pushing costs higher across the sector.

Importantly for income investors, Northern Star also increased its returns to shareholders. For FY25, the company declared a total dividend of 55 cents per share, made up of a 25-cent interim dividend and a 30-cent final dividend.

That marked the company’s largest dividend payout to date and highlighted the strength of its balance sheet.

What brokers are saying about Northern Star

Broker sentiment toward Northern Star remains positive heading into 2026, despite expectations cooling after the strong share price rally.

Several major brokers lifted their price targets during the second half of the year. Citi raised its target price by 17% to $28.10, while UBS cut its target by 2.1% to $27.60. Ord Minnett is slightly more conservative, with its target sitting around $27.00.

With Northern Star shares last trading at $26.73, brokers see some modest upside remaining.

Key things to watch in 2026

There are a few important themes investors should keep an eye on this year.

Gold prices

Gold remains the single biggest driver of Northern Star’s performance. If prices stay elevated, earnings and dividends should remain well supported.

Growth projects

The company continues to advance several major assets, including the Kalgoorlie Super Pit and longer-term growth options. Any positive updates on production growth or mine life extensions could support investor sentiment.

Dividend sustainability

After paying 55 cents per share in FY25, investors will watch closely whether Northern Star can maintain or grow dividends.

Foolish takeaway

Northern Star’s 2025 performance will be hard to repeat, but the company enters 2026 from a position of strength.

With solid assets, a strong balance sheet and reliable dividends, Northern Star shares remain well placed for long-term gold investors.

The post Here’s what I think investors in Northern Star shares can look forward to in 2026 appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Aaron Teboneras 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.

There are plenty of ASX dividend shares out there for passive income investors to choose from.

To narrow things down, let’s look at three excellent options that brokers rate as buys. They are as follows:

Cedar Woods Properties Limited (ASX: CWP)

Bell Potter thinks that Cedar Woods could be an ASX dividend share to buy.

It is one of Australia’s leading property developers with a portfolio that is diversified by geography, price point, and product type.

The broker is positive on Cedar Woods due to it being well-positioned to benefit from Australia’s chronic housing shortage.

It is expecting this to underpin dividends per share of 35 cents in FY 2026 and then 39 cents in FY 2027. Based on its current share price of $8.56, this equates to 4.1% and 4.6% dividend yields, respectively.

Bell Potter has a buy rating and $10.00 price target on its shares.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that gets the thumbs up from analysts is Rural Funds.

It is a property company that owns agricultural assets such as cattle properties, vineyards, and cropping land. These properties are typically leased to high-quality tenants on long agreements with built-in rental increases.

This provides Rural Funds with great visibility on its future earnings and has supported solid earnings and dividend growth over the past decade.

Bell Potter is positive on the company’s outlook. It expects Rural Funds to pay dividends of 11.7 cents per share in both FY 2026 and FY 2027. Based on its current share price of $1.97, this would mean dividend yields of 5.9% for both years.

The broker currently has a buy rating and $2.45 price target on its shares.

Telstra Group Ltd (ASX: TLS)

Telstra could be an ASX dividend share to buy according to analysts. It is of course Australia’s telecoms leader.

It could be an attractive option due to its defensive cash flows, which are generated by its mobile, broadband, and network services. These are the kinds of essential services that Australians rely on every day for connectivity.

In addition, the company recently announced its Connected Future 30 plan, which aims to deliver strong and sustainable long-term earnings.

Macquarie is positive on the company and has an outperform rating and $5.04 price target on its shares.

As for income, the broker is forecasting fully franked dividends of 20 cents per share in FY 2026 and then 21 cents per share in FY 2027. Based on its current share price of $4.87, this would mean dividend yields of 4.1% and 4.3%, respectively.

The post 3 ASX dividend shares to buy for passive income in 2026 appeared first on The Motley Fool Australia.

More reading

• The pros and cons of buying Telstra shares in 2026
• Happy New Year: Here are two ASX stocks to watch going into 2026
• These were the best-performing ASX 200 shares in December
• The top ASX growth stocks that could rebound in 2026 after a brutal year
• Where to invest $10,000 into ASX 200 shares in January 2026

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group, Rural Funds 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.

ASX 200 financial shares performed well despite a heavy second-half fall for sector leader Commonwealth Bank of Australia (ASX: CBA).

The S&P/ASX 200 Financials Index lifted 7.97% in 2025, with total returns (including dividends) of 12.05%.

By comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) lifted 6.8% and provided total returns of 10.32%.

This made financials the third best performer among the 11 market sectors last year.

Commonwealth Bank of Australia (ASX: CBA), the largest company on the ASX, reached its peak in late June at $192 per share.

After a long run, which began in November 2023 and delivered about 85% capital growth for CBA investors, a correction was inevitable.

CBA shares fell 16% from their high point during the second half of the year to finish at $160.57 apiece on 31 December.

Overall, CBA shares managed a 12-month gain of just under 5%.

This pales in comparison to the capital gains of the financial sector’s top performers.

Let’s take a look at those stocks.

Which ASX 200 financial shares delivered the best capital growth?

1. Generation Development Group Ltd (ASX: GDG)

The Generation Development Group share price rose 66% to finish the year at $5.89 per share.

Generation Development Group is a market leader in retirement and investment solutions, including bonds.

For FY25, the company reported a 191% year-over-year lift in revenue to $141.3 million.

The underlying net profit after tax (NPAT) was $30.2 million, up 170% on FY24.

Macquarie has an outperform rating on this ASX 200 financial share for the new year.

The broker gives Generation Development shares a 12-month price target of $6.70.

2. Challenger Ltd (ASX: CGF)

The Challenger share price lifted 57% to finish the year at $9.41 per share.

Challenger’s CEO, Nick Hamilton, says the company built on its strong FY25 performance with a solid first quarter of FY26.

Hamilton said there was “continued momentum in annuity sales” and progress with several strategic initiatives to support future growth.

In 1Q FY26, total life sales totalled $2.5 billion, up 4%.

Fixed term annuity sales rose 29% to $1.1 billion, while lifetime annuity sales lifted 16% to $320 million.

Citi has a buy rating on this ASX 200 financial share with a price target of $10.25.

3. Hub24 Ltd (ASX: HUB)

The Hub24 share price rose by 38% to finish the year at $96.25 per share.

HUB24 operates an investment and superannuation platform.

After the company’s Investor Day in December, Bell Potter retained its buy rating with a slightly lowered target of $125.

The broker noted upside risk to the company’s funds under administration (FUA) guidance as it continues to expand its offering.

However, management also warned of higher expenses with cost growth guidance revised to 18% to 20%.

4. Insignia Financial Ltd (ASX: IFL) 

The Insignia share price ascended 28% to close at $4.56 per share on 31 December.

Insignia is a financial services company.

Last year, two takeover suitors pursued Insignia — Bain Capital Private Equity and CC Capital Partners.

In July, Insignia announced it had entered into a Scheme Implementation Deed with CC Capital for $4.80 per share.

The company is yet to schedule a shareholders’ vote, saying regulatory processes are still underway.

Morgan Stanley has a hold rating on this ASX 200 financial share with a price target of $5.

5. ANZ Group Holdings Ltd (ASX: ANZ)

The ANZ share price rose 27% to close at $36.34 on 31 December.

The ASX 200 bank share reached a new record of $38.93 per share in November.

Morgans has a sell rating on ANZ shares with a price target of $32.57.

The post Top 5 ASX 200 financial shares of 2025 appeared first on The Motley Fool Australia.

More reading

• 2 stocks to help turn $100,000 into $1 million
• Buying ASX shares? Why, and how, you should prepare for higher interest rates in 2026
• My top 5 ASX 200 shares I would buy with $10,000
• Leading brokers name 3 ASX shares to buy today
• Can ANZ shares go any higher after a 28% sizzle in 2025?

Citigroup is an advertising partner of Motley Fool Money. 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 Hub24 and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Challenger, Generation Development Group, and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.