The start of a new year is often a natural time for investors to reset, reassess, and look ahead to where the next opportunities might emerge.

While nobody can predict short-term market movements, a mix of stabilising economic conditions, easing inflation pressures, and accelerating digital transformation could create fertile ground for select ASX stocks.

With that in mind, here are two Australian shares that look particularly interesting to watch as the new year gets underway.

Light & Wonder Inc (ASX: LNW)

Light & Wonder enters 2026 as a very different company to the one investors knew just a few years ago.

Following its strategic transformation away from traditional lotteries, the business is now a focused global gaming and digital entertainment group. It operates across land-based gaming machines, online real money gaming, and social casino platforms, giving it exposure to multiple growth avenues within the global gaming industry.

A key attraction is the company’s increasing emphasis on recurring and digital revenues. Its content portfolio continues to perform strongly across casinos worldwide, while its digital division benefits from the structural shift toward online gaming and mobile-first entertainment.

If management continues to execute well and digital earnings expand as expected, Light & Wonder could be well positioned for further growth as 2026 unfolds.

UBS is bullish on the company. It recently put a buy rating and $206.00 price target on Light & Wonder’s shares. This implies potential upside of approximately 30% for investors in 2026.

Megaport Ltd (ASX: MP1)

Megaport is another ASX stock worth keeping a close eye on in the year ahead.

The company operates a global software-defined networking platform that allows businesses to instantly connect their infrastructure to leading cloud providers such as Amazon Web Services, Microsoft Azure, and Google Cloud. As enterprises increasingly adopt multi-cloud and hybrid IT strategies, demand for fast, flexible, and secure connectivity continues to grow.

While Megaport has faced share price volatility in recent years, its underlying business metrics have improved markedly. The company has been focused on driving operating leverage, improving margins, and moving toward sustained profitability.

If cloud adoption trends continue and Megaport delivers on its execution goals, 2026 could mark an important turning point for the business. Especially given its recent acquisition of Latitude.sh, which is a global, automated infrastructure platform delivering compute-as-a-service. This has expanded its total addressable market materially.

Macquarie Group Ltd (ASX: MQG) thinks that Megaport is an ASX stock to buy now. It has an outperform rating and $21.70 price target on its shares. This suggests that upside of approximately 80% is possible from current levels.

The post Happy New Year: Here are two ASX stocks to watch going into 2026 appeared first on The Motley Fool Australia.

More reading

• 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
• Buying ASX shares? Why, and how, you should prepare for higher interest rates in 2026
• My top 10 ASX stocks to buy for 2026

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

The ASX mining share BHP Group Ltd (ASX: BHP) has had a strong 12 months. Now investors need to look towards next year to decide if it’s a buy today or not.

There are a lot of moving parts to BHP because of how many commodities the business is exposed to, including iron ore, copper, coal and potash.

Investors can’t control what happens with resource prices, but we can control when to buy (and sell). It’s important to remember that commodity prices can be volatile and cyclical, which can be both an opportunity and a risk.

Let’s take a look at some of the positives and negatives of buying in 2026.

Positives about BHP shares

It’s not surprising to me that the BHP share price has risen well over 20% in the past six months (at the time of writing), given the surprising strength of some commodities.

The iron ore price is currently at around US$107 per tonne, according to Trading Economics. A few months ago, I thought it would be priced under US$100 per tonne by now.

A higher resource price is fantastic for a commodity business because it’s receiving more revenue for the same production, which largely drops onto the net profit line as well.

Copper is a great commodity for the long-term and short-term. Copper has long-term demand tailwinds for its role in electrification and decarbonisation. In a recent note, analysts from broker UBS wrote about copper:

The medium-term outlook has been bullish for years… will 2026 be the year the market finally experiences real tightness? We are cognisant that the copper rally in 2H25 has been driven more by speculative positioning on supply disruptions/ downgrades than physical tightness and we do not forecast an acceleration in global demand in 2026.

But we have visibility/conviction on limited growth in global mine output for the 2nd consecutive year and believe acute tightness in the concentrate market & tightening scrap will result in a sharp slowdown in refined output that will push the market into deficit in 2026, resulting in inventory drawdowns and further sustainable price upside.

That seems like a very positive outlook for copper’s impact on BHP shares.

Negatives

The strong rally of the BHP share price may mean it doesn’t have that much more room for gains in 2026.

One of the reasons I’m cautious about the mining giant is that there is a huge new iron ore project in Africa called Simandou (partly owned by Rio Tinto Ltd (ASX: RIO) ), which could have a negative impact on the elevated iron ore price considering due to the impact this could have on the global supply and demand situation.

UBS wrote about the iron ore price:

We expect prices to remain ~$100/t over the next 6mths with demand stable & incremental supply growth modest (Simandou 10-20mt 2H weighted); medium-term we expect additional supply from Simandou/the majors to be part offset by India/ depletion of marginal producers; however, we find it difficult to see the bull case for iron ore and we forecast prices falling back to ~$90/t in 2027 (90th percentile of cost curve) as higher cost tonnes make way for Simandou.

In other words, its iron ore earnings may fall in the next year or two.

According to CMC Markets, there are currently 15 recent analyst ratings on the business, with three buy ratings, 11 hold ratings and one sell rating. However, the average price target on BHP shares is $43.56, implying a slight fall over the next year from where it is at the time of writing.

In my view, it looks like there are other ASX shares that could be better buys.

The post The pros and cons of buying BHP shares in 2026 appeared first on The Motley Fool Australia.

More reading

• A dividend giant I’d buy over BHP shares right now!
• 6 most traded ASX shares of 2025
• 5 things to watch on the ASX 200 on Wednesday
• 4 ASX mining shares with buy ratings for 2026
• Why I’m bullish on the BHP share price as copper prices surge

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

Owning BHP Group Ltd (ASX: BHP) shares has regularly meant receiving sizeable passive income. But, there are other ASX dividend giants that appeal to me more for payouts.

BHP and Commonwealth Bank of Australia (ASX: CBA) are the two largest businesses on the ASX, but there are quite a few names that have bigger attraction.

The name I want to highlight today is Future Generation Australia Ltd (ASX: FGX), one of the most appealing listed investment companies (LICs) Aussies can buy for income.

Why the ASX dividend giant’s setup is so appealing

A LIC has a company structure, just like any other company. But, instead of selling products or services, the LIC is trying to generate profit for shareholders by generating investment returns with a portfolio.

The LIC structure allows the board of directors to declare the size of dividends they want to, assuming the business has an accounting profit reserve that’s large enough for the desired payout. LICs can provide shareholders with steadily rising dividends thanks to this dynamic.

Future Generation Australia is no ordinary LIC, though. Usually, the portfolio of a LIC is managed by a fund manager that charges management fees.

The ASX dividend giant I’m highlighting today doesn’t charge any management fees. Instead, it donates 1% of the value of its net assets each year to charities focused on helping youths and the fund managers work for free to enable this initiative. It’s a fantastic LIC, in my view.

Diversification

Investors usually like to see that their wealth is diversified – it’s good not to have all one’s eggs in one basket.

Future Generation Australia’s portfolio has significant diversification. It’s not managed by one fund management outfit. The LIC is invested across the funds of a number of fund managers, who all work for free.

It’s invested in 16 funds, that each have their own portfolio, giving shareholders significant diversification. Some of the fund managers include Paradice, Bennelong, L1 Group Ltd (ASX: L1G), Cooper Investors, QVG, Vinva, Eley Griffiths and Lanyon.

According to the ASX dividend giant, there are more than 400 underlying shares across different sectors. Pleasingly, it has a much smaller weighting to ASX financial shares, giving investors varied exposure to the ASX share market than the S&P/ASX 300 Index (ASX: XKO).

Dividend potential

On the passive income side of things, I think Future Generation Australia is a very appealing investment.

It has increased its payout every year between 2015 to 2025 – a decade of dividend increases is the type of reliability I’d want to see.

The LIC’s FY25 annual payout has been guided to be 7.2 cents per share. That translates into a grossed-up dividend yield of 7.9%, including franking credits, at the time of writing. Broker UBS estimates that BHP, on the other hand, could pay a grossed-up dividend yield of 5.3% in FY26 to owners of BHP shares.

Future Generation looks to me like the clear winner for passive income.

The post A dividend giant I’d buy over BHP shares right now! appeared first on The Motley Fool Australia.

More reading

• The pros and cons of buying BHP shares in 2026
• 6 most traded ASX shares of 2025
• 5 things to watch on the ASX 200 on Wednesday
• 4 ASX mining shares with buy ratings for 2026
• Why I’m bullish on the BHP share price as copper prices surge

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

With 2026 now here, many investors are likely to be looking for simple, low-maintenance ways to build long-term wealth without constantly reacting to market headlines.

Exchange-traded funds (ETFs) remain one of the most effective tools for doing exactly that, offering instant diversification and exposure to powerful global themes.

Here are ten ASX ETFs that could form the backbone of a well-balanced portfolio in 2026 and beyond.

Vanguard Australian Shares ETF (ASX: VAS)

The popular Vanguard Australian Shares ETF provides broad exposure to the Australian share market, including banks, miners, and consumer staples. It is often used as a core holding for investors wanting reliable dividends and domestic exposure.

iShares S&P 500 ETF (ASX: IVV)

Another popular ASX ETF to consider buying is the iShares S&P 500 ETF. It gives investors access to the 500 largest stocks in the United States. It is a simple way to benefit from the long-term growth of the world’s most dominant economy.

Betashares Nasdaq 100 ETF (ASX: NDQ)

If you want to invest in the best, then it is hard to ignore the Betashares Nasdaq 100 ETF. This ASX ETF focuses on leading global innovators, particularly in technology. It offers exposure to the companies driving artificial intelligence, cloud computing, and digital transformation. This includes Nvidia (NASDAQ: NVDA), Tesla (NASDAQ: TSLA), and Microsoft (NASDAQ: MSFT).

Betashares Global Quality Leaders ETF (ASX: QLTY)

The Betashares Global Quality Leaders ETF is another ASX ETF to look at. It targets high-quality global businesses with strong balance sheets, consistent earnings, and durable competitive advantages. It suits investors who prefer quality over speculation. It was recently recommended by analysts at Betashares.

Betashares Australian Quality ETF (ASX: AQLT)

The Betashares Australian Quality ETF applies the same quality lens to Australian shares, focusing on profitable companies with sustainable returns. It could complement broader market exposure while potentially reducing volatility. It was also recently recommended by Betashares.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

Another ASX ETF to look at is the VanEck Morningstar Wide Moat ETF. It invests in US companies with durable competitive advantages or economic moats. The strategy is inspired by long-term value investing principles and aims to outperform over full market cycles.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF could be a top pick. It provides access to major technology companies across Asia, including leaders in semiconductors, e-commerce, and digital services. It adds geographic diversification and higher growth potential. This is another fund that Betashares recently recommended.

Betashares Global Cybersecurity ETF (ASX: HACK)

Cybersecurity is becoming increasingly critical as economies digitise. The Betashares Global Cybersecurity ETF offers exposure to global companies helping protect data, networks, and infrastructure. This is an industry with decades of growth ahead of it.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

An ASX ETF that could be suitable for growth investors is the Betashares Global Robotics and Artificial Intelligence ETF. It focuses on shares developing robotics and AI technologies that could reshape manufacturing, healthcare, and logistics over the next decade. Betashares recently recommended this fund.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Finally, the Vanguard MSCI Index International Shares ETF could be worth considering. It provides broad exposure to developed markets outside Australia. It is often used as a core global allocation alongside Australian shares.

The post 10 excellent ASX ETFs to buy in 2026 appeared first on The Motley Fool Australia.

More reading

• The ASX ETF portfolio I’d build if I wanted to sleep well at night
• Why this could be the easiest way to become a millionaire with shares on the ASX
• This ASX ETF has returned 12.5% annually since inception
• Own IVV or IOO ETFs? Here’s your next dividend
• The three ETFs I’d buy to set up a starter portfolio

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Betashares Capital – Asia Technology Tigers Etf, and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, Tesla, and iShares S&P 500 ETF. 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 positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Microsoft, Nvidia, VanEck Morningstar Wide Moat ETF, Vanguard Msci Index International Shares ETF, and 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.

When I think about which ASX stock could deliver the biggest sustainable dividend over the next 12 months, I’m drawn to the idea of GQG Partners Inc (ASX: GQG) shares.

Fund managers usually trade on a lower price/earnings (P/E) ratio than some other sectors, enabling them to have a relatively high dividend yield.

In addition that, fund managers don’t require much more money to grow – it doesn’t require a new distribution centre, 10% more staff or more locations to manage 10% more funds under management (FUM). They are very scalable, allowing them to provide a high dividend payout ratio.

Let’s look at how the business could provide investors with a hefty level of dividends each month.

Receiving $200 of passive dividend income each month

Not many ASX shares pay a dividend every month – GQG is not one of them either. But, GQG does pay a dividend every quarter.

I think it may be better to think of the $200 per month goal as an annual target of $2,400 and then divide that by 12.

Let’s take a look at what analysts are expecting the dividend to be from the business in the 2026 financial year. In recent times it has paid out 90% of its distributable earnings, so I wouldn’t be surprised to see another large annual dividend next year.

According to the forecast from the broker UBS, the ASX stock could pay an annual dividend per share of US 13 cents in the 2026 financial year, translating into a forward dividend yield of 11%.

So, to receive $2,400 of annual dividend income, we’re talking about needing 21,819 GQG shares at the time of writing.

Pleasingly, UBS is forecasting that the business could increase its annual dividend per share in the subsequent years. The broker suggests the business could pay an annual dividend per share of 14 cents in FY27, 15 cents per share in FY28 and 16 cents per share in FY29.

Is this a good time to invest in the ASX stock?

While it has risen more than 20% since the low in November, it’s still down more than 20% in the past six months as it saw FUM outflows following weak fund performance as it positioned itself defensively against too much market excitement about AI. This led to underperformance this year, but the recent share price pain for AI stocks has helped GQG.

UBS said that GQG’s investment performance “improved during Nov-25 with +360bps of alpha validating GQG’s defensive posture amid increasing scepticism around the AI buildout.” In other words, GQG outperformed the market quite substantially.

The broker believes GQG is good value with a P/E ratio of under 8 and early indications for December 2025 flows show “some improvement” with “trackable flows in positive territory”.

While there could be plenty more volatility in the months and years ahead, this could be an appealing time to consider investing in the business.

The post I’d buy 21,819 shares of this ASX stock to aim for $200 a month of passive income appeared first on The Motley Fool Australia.

More reading

• 1 ASX dividend stock down 30% I’d buy right now
• At 13.4%, this ASX 200 dividend stock has the largest yield on the index
• Why Cogstate, European Lithium, GQG Partners, and Lindian Resources shares are falling today
• GQG Partners share price in focus after November FUM update
• $20,000 in savings? Here’s how you can use that to target an $8,000 yearly second income

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

As far as ‘super-safe’ goes, the share market is not as protected as cash in the bank. But, there is one high-yield ASX dividend champion that I think really ticks the box.

When it comes to safe dividend-paying businesses, I’d normally name Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). However, I don’t think its yield is high enough to be counted as a high-yield option.

The business I want to highlight is APA Group (ASX: APA), a long-time favourite of mine for passive income.

We can’t control what happens with the share price, but the prospect for good earnings growth looks positive and I’m even more confident about long-term payout growth.

Is it super-safe?

As I’ve mentioned, no share price is impervious to share price declines. But, businesses with resilient earnings may fall less than others during bear markets. I think APA is one of those reliable businesses.

It owns a portfolio of important energy assets Australia, including gas pipelines, energy generation (gas, solar and wind), gas processing facilities, gas storage and electricity transmission.

Impressively, the business transports half of the country’s gas usage. I think it’s likely the country will continue using gas for decades for come, giving the business pleasing defensive earnings.

Additionally, APA’s revenue is largely linked to inflation. That provides the business with a solid organic tailwind for cash flow growth in the coming years.

High yield

It has satisfactorily ticked the ‘super-safe’ requirement as much as it can. But what about having a high dividend yield?

If I’m buying a business for passive income, I’d want to see that it offers a much better cash payment than the Reserve Bank of Australia (RBA) official cash rate. The RBA cash rate is currently 3.6%.

The ASX dividend champion APA is expecting to deliver a distribution per security of 58 cents in FY26. That translates into a distribution yield of 6.25%, at the time of writing. That’s much more appealing than the RBA cash rate.

ASX dividend champion

Distribution growth is not guaranteed, but the business has a pleasing record of delivering putout growth that I expect it will want to continue.

It actually has the second-longest distribution growth streak on the ASX – APA has hiked its payout every year for the last 20 years!

I think it’s likely that APA will want to continue growing its annual payout by at least 1 cent per security for the foreseeable future.

Energy is very likely to be in demand over the long-term, which is why I think it could be a solid buy even if there’s a stock market sell-off in 2026 or in any given year.

The post 1 super-safe high-yield ASX dividend champion stock to buy even if there’s a stock market sell-off in 2025 appeared first on The Motley Fool Australia.

More reading

• Safe Australian shares to buy now and hold through market volatility
• The ASX dividend portfolio I’d build for financial independence
• 5 things to watch on the ASX 200 on Tuesday
• 5 top ASX dividend shares to buy now
• How to make $50,000 of passive income in 2026

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Apa Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) had a relatively positive 12 months in 2025. During the year, the benchmark index rose 6.8% to finish at 8,714.3 points.

And if you throw in dividends, the total return stretches to over 10%.

While this is good, it pales in comparison to the returns that some ASX 200 shares recorded for the year.

Here are the best-performers during the 12 months:

DroneShield Ltd (ASX: DRO)

The DroneShield share price was the best performer on the ASX 200 index by some distance with a gain of 300%.

Investors were fighting to get hold of the counter drone technology company’s shares after it reported explosive sales growth. This was underpinned by increasing demand for its technology in response to modern warfare trends.

Incredibly, DroneShield’s shares were up over 750% year to date at one stage before pulling back.

The good news is that demand remains strong, which bodes well for 2026. In December, DroneShield announced an $8.2 million contract from an in-country reseller for delivery to a western military end-customer and a $49.6 million contract with an in-region European reseller that is contractually required to distribute the products to a European military end-customer.

Liontown Resources Ltd (ASX: LTR)

The Liontown Resources share price was the next best performer with a gain of 198%.

This was driven by improving sentiment in the lithium industry and the release of a solid quarterly update from the miner.

In addition, investors appear optimistic about the company’s outlook now that it has transitioned to 100% underground mining at the Kathleen Valley Lithium Project.

Regis Resources Ltd (ASX: RRL)

The Regis Resources share price wasn’t far behind with a 196% gain in 2025.

Investors were buying this gold miner’s shares following a sharp rise in the gold price over the 12 months.

This supported record EBITDA of $780 million in FY 2025, which was more than double the $297 million it posted in FY 2024.

And with the gold price continuing to rise since then and production potentially increasing in FY 2026, the next 12 months could be very positive for Regis Resources.

Genesis Minerals Ltd (ASX: GMD)

The Genesis Minerals share price was an impressive performer with a gain of 192% for the 12 months.

This gold miner also benefitted greatly from the booming gold price. So much so, in FY 2025 it recorded a 127% increase in net profit after tax to $221.2 million.

Looking ahead, management is guiding to strong production growth in FY 2026.

The post These were the best performing ASX 200 shares in 2025 appeared first on The Motley Fool Australia.

More reading

• These were the best-performing ASX 200 shares in December
• 10 ASX shares I would buy in 2026
• 6 most traded ASX shares of 2025
• Down over 50%, is this the ASX 200’s greatest recovery share for 2026?
• 5 things to watch on the ASX 200 on Wednesday

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 DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Happy New Year! With the turning of the calendar, what better time to look ahead and discuss the ASX shares one would most like to buy, or buy more of, in 2026?

So today, let’s get into five ASX shares I would love to pick up this year. Some I don’t yet own, and some I already own but would love to buy more.

5 ASX shares I want to buy in 2026

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

This first pick will come as no surprise to some readers. I’ve long written about my love of this company, and 2026 is a year that I’m hoping to add even more shares of Soul Patts to my portfolio.

This investing house has a long track record of delivering market-beating returns. As of 23 September, shareholders have enjoyed a total return of 13.7% per annum over the previous 25 years. Soul Patts also has the ASX’s best dividend growth streak, having raised its annual payouts every year since 1998. What more could one ask for from an ASX share?

REA Group Ltd (ASX: REA)

I’ve long wanted to own REA Group shares, but the timing, and pricing, has never quite lined up for me. REA is the most dominant player in Australia’s property advertising market.

Although REA’s flagship realestate.com.au platform is facing some reinvigorated competition from the Co-Star-owned Domain, I think its supremacy is safe. As such, I would love to add this cash-generating machine to my portfolio this year. Australia’s love affair with property looks likely to continue well into the future, and this is the perfect ASX share to play that trend.

MFF Capital Investments Ltd (ASX: MFF)

Listed investment company (LIC) MFF Capital is next. MFF has been a portfolio staple of mine for years now. I love the management’s focus on buying high-quality US stocks and letting them compound in its portfolio. Those US stocks include the likes of Amazon, American Express, Mastercard, Alphabet and Visa.

MFF is also a formidable dividend growth stock, having raised its annual dividend from 2 cents per share in 2017 to the 17 cents per share that investors enjoyed in 2025.

Despite a blowout performance in 2025, MFF Capital shares are still trading below their intrinsic value today. As such, I am hoping to add more to my portfolio in 2026.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is another company that I already own, but would love to buy even more of. This industrial and retail conglomerate is an ASX share that always seems to trade with an expensive price tag. That’s understandable, given Wesfarmers owns some of the best businesses in the country. These include Kmart, Bunnings and OfficeWorks, as well as WesCEF and Priceline.

Wesfarmers has a long track record of delivering both capital growth and rising dividend income to its investors.

As such, I’ll be watching Wesfarmers stock like a hawk in 2026. If the company goes back under $70 a share this year, I’ll seriously be considering adding some more to my portfolio.

TechnologyOne Ltd (ASX: TNE)

Our final stock is tech darling TechnologyOne. I’ve long been impressed by this enterprise software company’s growth and dividend scaling. TechnologyOne can seemingly do no wrong, with 2025 delivering another bumper set of results for the company and its investors.

The company’s share price did have a bit of a tough year. But despite this, it is still looking pretty pricey as we start 2025, at least from my point of view. However, hope springs eternal, and I’m looking forward to seeing whether TechnologyOne gets down to a bargain price at some point this year. I’m very much hoping to have this stock happily in my portfolio by 31 December 2026.

The post 5 ASX shares I want to buy in 2026 appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 bargain buys heading into the new year
• The Australian stocks I’d trust for the next 10 years
• 10 ASX shares I would buy in 2026
• My blueprint for monthly income starting with $40,000
• The best ASX 200 stocks to own in 2026

American Express is an advertising partner of Motley Fool Money. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, American Express, Mastercard, Mff Capital Investments, Visa, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Mastercard, Technology One, Visa, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Mff Capital Investments, Technology One, Visa, and Wesfarmers. 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.

The “Magnificent Seven” grouping of stocks represents seven of the biggest and most influential companies in the world that make up roughly one-third of the market cap-weighted S&P 500. Its members have a significant impact on whether the overall stock market rises or falls in a given day, so they are closely watched by both analysts and retail investors.

In a series of articles, I’ve been looking at each of these companies to predict which is the best Magnificent Seven stock to buy for 2026. And while I’ll reveal the full rankings later in this piece, it’s time to unveil the legendary company that tops the rankings and appears to be in the best position as we head into the new year.

Let’s pull the curtain back on my No. 1 pick: Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). 

About Alphabet stock

Alphabet is probably still better known as Google, and for good reason. Google has an unshakable lead in global internet search, with 89.9% of the market share. The search engine in second place, Bing, has just 4.2%. And Alphabet’s Chrome browser is nearly as dominant with 71.2% of the market, topping second-place Safari with 14.3%.

This means that Alphabet is unquestionably the most consequential internet company in the world. And it gives it a massive advantage, both in selling advertising and pushing content to prime locations on the web.

Alphabet brought in $74.18 billion in revenue during the third quarter from advertising, which includes Google Search, its Google network, and YouTube. That’s a 12.6% increase from a year ago, made possible by Alphabet’s use of powerful AI tools. For instance, Alphabet uses AI to provide more relevant answers to search queries and also launched an AI Overviews feature that appears at the top of a search result. It also uses AI to optimize the creation and placement of advertising, and even has AI tools to help users answer their email.

In all, advertising made up 72% of Alphabet’s $102.34 billion in revenue for the third quarter, helping it achieve an incredible $73.55 billion in free cash flow over the last 12 months.

Alphabet is making huge strides in cloud computing

As dynamic as Alphabet’s advertising business is, I think the cloud computing opportunity is even greater. Google Cloud is only third by market share with 13%, trailing Amazon Web Services and Microsoft Azure, but it’s seeing substantial growth. Google Cloud generated $15.15 billion in revenue in the third quarter, up 33% from a year ago. It was also responsible for $3.59 billion in operating income, up from $1.94 billion a year ago.

Finally, Alphabet has a big opportunity with its Tensor Processing Units (TPUs), which are its in-house alternative to Nvidia‘s vaunted (and expensive) graphics processing units (GPUs). Alphabet’s TPUs aren’t as versatile as GPUs, but they are effective in training its AI models. Now Alphabet is reportedly discussing a deal that would sell billions of TPUs to Meta Platforms and it has a deal with Anthropic, which announced it will expand its use of Google Cloud to include up to 1 million TPUs.

Coupled with Google’s massive advertising business, the fast-growing cloud opportunity makes Alphabet even more formidable — and attractive for investors as we head into 2026.

Why Alphabet is No. 1

Alphabet shares are up more than 60%, but the company is still reasonably priced. Its forward price-to-earnings ratio of 29.7 remains one of the lowest in the Magnificent Seven.

Revenue estimates for next year of $454.8 billion have climbed steadily over the last six months, as the market begins to realize the massive potential of Alphabet stock.

While this company may not be the flashiest in the Magnificent Seven — I would give that crown to either Nvidia or Tesla — I think it’s a no-brainer for any investor to buy right now.

The list in review

Now we finally have the full list, in order:

• No. 1 Alphabet is the dominant internet company on the planet and is starting to market its alternative to Nvidia GPUs.
• No. 2 Nvidia is the largest company in the world by market capitalization and has taken the leading role in providing high-powered GPUs to data centers, powering the AI revolution.
• No. 3 Meta Platforms shifted its attention away from the metaverse and is now focused on developing “personal superintelligence” through AI.
• No. 4 Microsoft has powerful revenue streams through its cloud computing division and its profitable suite of software, including Word, Excel, and PowerPoint.
• No. 5 Tesla aims to make breathtaking advancements in autonomous driving, which, if successful, will enable hundreds of thousands of Teslas to be used as robotaxis.
• No. 6 Amazon is the globe’s biggest provider of cloud computing, but is hampered by the comparatively low margins of its legacy e-commerce business.
• No. 7 Apple isn’t monetizing AI like its Magnificent Seven peers, but it’s developing advanced chips to run large AI models on its products.

You really can’t go wrong with any of these companies. However, I believe Alphabet is the clear winner for investors seeking to purchase a Magnificent Seven stock for 2026.

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

The post Ranking the best “Magnificent Seven” stocks to buy for 2026. Here’s my no. 1. 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

• Warren Buffett has 23% of Berkshire Hathaway’s portfolio invested in 3 artificial intelligence (AI) stocks heading into 2026
• Alphabet near $300: Your last chance to buy?
• Alphabet vs. Amazon: Which stock will outperform in 2026?
• 1 Magnificent 7 stock to buy in 2026 (and 1 to avoid)
• The best artificial intelligence (AI) stock to buy in 2026 (Hint: It’s not Nvidia)

Patrick Sanders has positions in Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. 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, Meta Platforms, Microsoft, and Nvidia. 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.

Artificial intelligence (AI) and the increased demand for GPUs has driven massive growth in Nvidia (NASDAQ: NVDA) stock. The chipmaker is currently up an astounding 23,020% over the last 10 years (as of Dec. 26).

If you’ve been thinking about starting or adding to a position in Nvidia, there’s one great reason to do so before Feb. 25, 2026. 

Nvidia’s next earnings report is coming up

Feb. 25 is when Nvidia will announce the financial results for the fourth quarter and its full 2026 fiscal year. The company’s 2026 fiscal year ends on Jan. 31.

Nvidia’s earnings reports have become more like victory laps. It has delivered 11 consecutive quarters of revenue growth, often in double- or triple-digit percentages. Most recently, its third-quarter revenue reached a record $57 billion, a 62% year-over-year increase. Fourth-quarter revenue expectations are $65 billion, which would mean sales of $213 billion on the year.

Taking a long-term per[spective, Nvidia is also set up for future earnings growth. It has a $500 billion order backlog through the end of 2026, and earlier this month, the Trump administration authorized Nvidia to begin selling its H200 chips in China.

Nvidia is on the expensive side, trading at 47 times trailing earnings and 41 times forward earnings expectations. However, its sales have consistently grown, and the company’s GPUs remain in high demand with other AI companies. Considering its next earnings report will most likely bring positive news, if you’re going to invest in Nvidia, you might not want to wait too long. 

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

The post 1 incredible reason to buy Nvidia stock before Feb. 25 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

• 5 most traded US stocks by Aussie investors this year
• If you’d invested $1,000 in Nvidia 10 years ago, here’s how much you’d have today
• The ASX ETFs that have stood the test of time
• Will Nvidia stock crash in 2026?
• Which AI chip stock is the better buy for 2026: Nvidia or Alphabet?

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