ASX dividend shares could be a smart choice in this era of higher inflation. If costs are rising, I’d want to see my dividend income rising to help offset (or even outgrow) the pain.

There are not many businesses that I’m confidently expecting to deliver rising dividends in the coming results. A weaker economic environment could lead to some businesses deciding to maintain (or even cut) their payouts.

However, the below three names are ones I’m feeling confident about for dividend growth in the foreseeable future.

Telstra Group Ltd (ASX: TLS)

Telstra is one the ASX blue-chip shares I’m most optimistic will deliver dividend growth because of the nature of the service of what it provides. Many households, businesses and organisations seem to put an important value on having a mobile connection. I think that means the business has defensive earnings.

Telecommunications is important for numerous reasons these days such as work, education, entertainment, communication, shopping and so on.

Telstra has been steadily increasing its dividend payout in the last few years, including the FY26 half-year result. That report saw earnings per share (EPS) rise by 11.2% and the dividend per share was hiked by 10.5% to 10.5 cents.

I think it’s very likely that the business will want to pay another 10.5 cents per share with its FY26 annual report.

With Australia’s growing population and the prevalence of digitalisation, I think Telstra’s mobile subscriber base and average revenue per user (ARPU) are set to continue rising in the coming years, which will be a useful tailwind for earnings and the dividend.

PM Capital Global Opportunities Fund Ltd (ASX: PGF)

This is a listed investment company (LIC), which means it invests in shares to try to make returns for shareholders. The board of directors have the flexibility to declare the size of dividend they want to, assuming they have the profit reserve to do so.

The LIC looks at a global portfolio of shares to find the right undervalued opportunities that could deliver market-beating returns.

At 31 December 2025, the business reported it had retained earnings and profit reserves of $584 million, which is enough to maintain the minimum intended dividend rate for nine years.

Management have provided guidance that the business intends to deliver a minimum dividend per share of 13.5 cents in FY26. That’d be a year-over-year increase of 17%.

Of the last decade, FY23 is the only year that it hasn’t increased its payout. That’s thanks to an average portfolio return of 16.8% per year since inception in December 2013. That’s an excellent track record, I’d say, though it’s not guaranteed to continue at that level.

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

I view Soul Patts as the best option of all on the ASX for consistent growth.

It already holds the record for regular dividend growth – it has increased its payout each year since 1998 and it’s set up to continue that impressive dividend growth, in my view.

The businesses operates as an investment house, which means it has the flexibility to make investment buys (and sell investments) to adjust its portfolio to own assets that it thinks will provide good returns for investors.

Soul Patts is invested in a number of different areas such as resources, telecommunications, industrial property, building products, swimming schools, agriculture, credit and plenty more. I expect the portfolio to change in the coming years.

By retaining some of its investment cash flow each year, the company is able to steadily invest in expanding in its portfolio and unlock the next generation of growing assets which could fund larger dividends.

I like how the ASX dividend share has made growing its dividend one of the main objectives and I think management have done it very well so far. As a bonus, a growing portfolio also helps increase the underlying value of Soul Patts shares to help drive the share price higher over time.

The post 3 ASX dividend shares raising dividends like clockwork appeared first on The Motley Fool Australia.

More reading

• 5 excellent ASX shares to buy for a retirement portfolio
• 3 ASX dividend shares with yields over 3% today
• Where to invest $2,000 in ASX dividend shares this week
• 3 blue-chip ASX shares to boost your retirement income
• You can aim to beat the Age Pension for the price of a daily coffee!

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 Telstra 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.

One of the first questions I think many income investors ask about exchange-traded funds (ETFs) is simple.

How much passive income can they actually produce?

The answer depends on the type of ETF you choose. Some focus purely on yield, while others aim to balance income with diversification and stability.

To give you a clearer idea, let’s look at three popular income-focused ETFs and what a $100,000 investment in each could generate.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The Vanguard Australian Shares High Yield ETF is one of the most well-known income ETFs on the ASX.

It focuses on high-dividend-paying Australian shares, which means it has significant exposure to banks and resource stocks.

Its top holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and ANZ Group Holdings Ltd (ASX: ANZ).

That concentration can lead to solid income, but it also means returns are influenced by how those sectors perform.

With a trailing dividend yield of around 3.9%, a $100,000 investment would generate approximately $3,900 per year in passive income.

Betashares S&P Australian Shares High Yield ETF (ASX: HYLD)

The Betashares S&P Australian Shares High Yield ETF takes a slightly different approach.

It also focuses on high-yielding Australian shares, but places a strong emphasis on consistent income and monthly distributions, which can be appealing for investors seeking regular cash flow.

Its largest holdings currently include NAB, Westpac, ANZ Bank, BHP Group, and Woodside Energy Group Ltd (ASX: WDS).

The HYLD ETF has been paying around 11.9 cents per share each month since inception last year, which annualises to approximately $1.42 per share and equates to a yield of about 4.4% at current prices.

At that level, a $100,000 investment would generate roughly $4,400 per year, or about $366 per month in passive income.

Vanguard Diversified Income ETF (ASX: VDIF)

The Vanguard Diversified Income ETF offers a more balanced approach.

Instead of focusing only on high-yield shares, it blends Australian equities, global shares, and fixed income investments.

Its largest exposures include the Vanguard Australian Shares High Yield ETF, Vanguard FTSE All-World High Dividend Yield ETF (LSE: VHYL), and a range of international and fixed interest funds.

This diversification can help smooth income and reduce reliance on any single sector or market.

With a dividend yield of around 3.7%, a $100,000 investment would generate approximately $3,700 per year in passive income.

Foolish takeaway

A $100,000 investment in income-focused ETFs could generate roughly $3,700 to $4,400 per year, depending on the strategy you choose.

For me, the more important question isn’t just how much income you can generate today, but how sustainable that income is over time.

That’s where diversification, quality, and long-term thinking start to matter just as much as the yield itself.

The post How much passive income could $100,000 in ETFs generate? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was largely a down day for ASX financials stocks and the broader ASX 200 on Monday. 

The S&P/ASX 200 Index (ASX: XJO) fell 0.74% yesterday, while the S&P/ASX 200 Financials Index (ASX: XFJ) fell just over 0.5%. 

However two struggling ASX financials stocks that bucked this trend were Zip Co Ltd (ASX: ZIP) and Premier Investments Ltd (ASX: PMV). 

This has come after significant falls over the last 12 months. 

Let’s find out what happened. 

Zip Co Ltd (ASX: ZIP)

The ASX fintech company has endured a tough past year, particularly following the release of its half-year results last month which sent its share price down 34%.

It appeared that investors were concerned with modest profit projections. 

Its share price remains down more than 54% year to date. 

Yesterday however, the ASX financials stock enjoyed a nice rebound, rising 4.5%. 

While no price sensitive news was released, the company did release an announcement that Superannuation provider Australian Retirement Trust had become a substantial holder, buying 63,834,078 fully paid ordinary shares. 

Premier Investments Ltd (ASX: PMV)

It has also been a rough year for Premier Investments. 

The company owns the Just Group which oversees retail fashion brands Just Jeans, Jacqui E, Peter Alexander, Jay Jays, Portmans, and Dotti. Just Group also owns the specialty children’s stationery brand Smiggle.

Its share price is down more than 40% in the last 12 months. 

However, yesterday it enjoyed a rebound of 5.68%. 

A contributing factor to this rise could be its 1H26 result, which was released last Friday. 

The company announced a fully franked interim dividend after skipping one last year. 

The updated dividend is 45 cents per share, which represents a yield over 3%. 

Premier Investments shares jumped 8% last Friday on the results, with investors continuing to buy the ASX financials stock on Monday. 

Is there upside for these ASX financials stocks?

It would appear that Monday’s big jump could be a sign of more to come for these companies. 

After falling considerably over the last year, brokers now see these ASX financials stocks as attractive opportunities. 

UBS currently has a positive view on Premier Investments shares, with the broker because of its strong core ANZ Peter Alexander business and it’s 25% stake in Breville Group Ltd (ASX: BRG). 

Meanwhile, Zip shares have also received positive outlooks from brokers on valuation grounds. 

Macquarie recently retained its buy rating and $3.35 price target on Zip shares. 

From yesterday’s closing price of $1.51, that indicates a potential upside of roughly 120%. 

The post Are these battered ASX financials stocks finally bouncing back? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s been a wild month for BHP Group Ltd (ASX: BHP) shares. A surge to record highs. Then a sharp pullback.

So, what just happened to BHP shares— and where to from here?

Let’s break it down.

A flying start… then a fast fall

BHP shares kicked off March in style. On 2 March, the mining heavyweight hit an all-time high of $59.25 after delivering a blockbuster half-year result.

The numbers impressed. Underlying NPAT jumped 22%. Even better for income investors, the company lifted its fully franked interim dividend to about $1.03 per share. That’s a 30% increase.

Investors loved it. The share price surged nearly 18% in short order.

But the momentum didn’t last.

Headwinds hit hard

Almost as quickly as it rose, BHP’s share price reversed course. Several factors piled on the pressure.

First, global uncertainty ramped up. Escalating tensions involving the US, Israel, and Iran have rattled markets. That matters for BHP. Commodity demand is closely tied to global stability and growth expectations.

Then came concerns closer to home. Reports suggested BHP’s Queensland coal operations are struggling to compete for fresh investment and may not be generating adequate returns. That’s not the kind of headline investors in BHP shares want to see.

And then there was leadership change. Mid-month, BHP announced CEO Mike Henry will step down and Brandon Craig is set to take over from 1 July. Leadership transitions often create uncertainty, and the market reacted accordingly.

Having said that, Morgan Stanley (NYSE: MS) believes Craig’s appointment signals strategic continuity. The broker said in a recent note that Craig has significant experience with BHP and has held various leadership roles across the group. The broker sees the change of leadership as low risk.

Should investors be worried?

The sharp pullback  – 20.7% from recent highs at the time of writing – might look alarming. But it doesn’t automatically signal it’s time to sell your BHP shares.

Analyst sentiment remains relatively balanced. According to TradingView data, most brokers are sitting on the fence. Out of 20 analysts, 11 rate BHP as a hold. Seven lean bullish with buy or strong buy ratings. Just two are bearish.

That tells a story: uncertainty, yes — but not widespread pessimism.

What about upside?

Here’s where it gets interesting.

The average price target for BHP shares is $52.94. After the recent dip, that suggests about 14% upside from current levels. According to Morgan Stanley, its analysts have maintained an overweight rating on BHP Group shares, alongside a $56.00 price target.

Some analysts are even more optimistic. The most bullish forecasts see BHP climbing as high as $68.22 — a potential 45% gain at current levels.

Of course, not everyone agrees. The most bearish target points to a possible fall to $34.11, implying a steep downside if conditions deteriorate.

Foolish takeaway

BHP shares have taken investors on a rollercoaster ride this month. Strong earnings and dividends pushed the stock higher. But macro fears, operational concerns, and leadership changes pulled it back down.

For now, the market seems undecided.

If you believe in long-term demand for commodities, BHP remains a $240 billion heavyweight worth watching. But expect volatility. This is a stock that moves with the global cycle — and right now, that cycle is anything but calm.

The post Where to from here for BHP shares after crashing over 20%? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. 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.

When I think about retirement investing, I believe it should be less about chasing returns and more about owning businesses that can keep showing up. 

The kind that generate steady cash flow, adapt over time, and continue rewarding shareholders through different market conditions for decade.

With that mindset, here are five ASX shares I think could complement a retirement portfolio.

Woolworths Group Ltd (ASX: WOW)

Woolworths is the kind of business that tends to quietly do its job.

It sits at the centre of everyday spending, with a scale and supply chain that few competitors can match. That position gives it a level of consistency that can be valuable when markets are unsettled.

What I find interesting is how it continues to evolve. Whether it’s refining its product mix, investing in automation, or improving efficiency, Woolworths isn’t standing still.

That combination of stability and ongoing improvement is what keeps it relevant in a long-term income portfolio.

Telstra Group Ltd (ASX: TLS)

Telstra plays a different role. It owns critical infrastructure that underpins how Australians connect, work, and consume data. That creates a steady stream of revenue that is less sensitive to economic cycles than many other sectors.

The company is also in the middle of a longer-term shift, focusing on simplifying operations and improving returns through its Connected Future 30 strategy.

From a portfolio perspective, it adds a layer of dependability that can help balance out more cyclical holdings.

Endeavour Group Ltd (ASX: EDV)

Endeavour is in a phase where the narrative is starting to change.

After a period of mixed performance, the business is refocusing on its core strengths, particularly in retail execution and its hotel network.

What stands out to me is the asset base. It has a large footprint, well-known brands (Dan Murphy’s and BWS), and a business model that generates meaningful cash flow.

If that reset continues to gain traction, it could strengthen its position as a reliable income contributor over time.

Wesfarmers Ltd (ASX: WES)

Wesfarmers brings something a little different.

It’s not just one business, but a collection of operations across retail, industrials, and chemicals, all tied together by disciplined capital allocation.

That flexibility is what I find most appealing.

The company has a track record of shifting capital toward higher-return opportunities, while still maintaining exposure to steady performers like Bunnings.

In a retirement context, that ability to adapt can be just as valuable as the income it generates.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs adds a property angle to the mix.

Its portfolio is focused on convenience-based retail, including supermarkets, healthcare, and essential services. These are locations that people continue to visit regardless of broader economic conditions.

That tends to support stable rental income, which can flow through to distributions for investors.

It’s not the most exciting part of a portfolio, but that’s often the point. It can provide a steady income stream that complements more growth-oriented holdings.

Foolish takeaway

These aren’t the only ASX shares I’d consider for a retirement portfolio, and they probably wouldn’t make up a complete one on their own. But I think each of them brings something useful.

Woolworths offers consistency, Telstra adds infrastructure-backed income, Endeavour is a turnaround story, Wesfarmers provides flexibility, and HomeCo Daily Needs contributes steady property income.

Added thoughtfully alongside existing holdings, they’re the kind of businesses that could help strengthen a retirement portfolio over time.

The post 5 excellent ASX shares to buy for a retirement portfolio appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group and Woolworths Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) is undoubtedly one of the highest-quality banks in the world.

But even the best stocks can become too expensive to buy. And that’s what most brokers believe has happened with CBA shares.

But don’t worry, because there are other ASX financial stocks that could deliver big returns.

Which ASX financial stock?

Bell Potter thinks that COG Financial Services Ltd (ASX: COG) could be seriously undervalued at current levels.

It is a diversified conglomerate of distribution businesses providing access to credit providers for yellow commercial goods. This is delivered through a nationwide broker network.

In addition, Bell Potter highlights that the company has some balance sheet funded direct originations, with a focus on capturing some of the overflow for non-prime chattel mortgages.

Bell Potter has been looking at monthly automotive data and ahead to the Federal Budget and appears to believe there are positives for this ASX financial stock. It said:

Battery electric vehicle (BEV) deliveries have continued to firm and demonstrate growth, counter to the broader market. Feb’26 penetration reached a record 12.2% and volumes grew +92% YoY, with established brands extending their lead, while smaller players gained relevance. Growth is being driven by contributions from the Sealion 7 (medium SUV), Zeekr 7X (medium SUV), and Atto 2 (small SUV), with around one-in-two electric vehicle sales occurring via the novated leasing channel.

An inaugural report showed two thirds of suppliers outperformed their emissions targets. Commercial costs will crystallise in 2028; brands have a similar window each year to offset and manage the liability. A $61m interim liability was recorded for the 2025 performance period, which penalises high-volume players and light commercial vehicles. Passenger vehicles comprised 71% of volumes, with an average carbon emission of 114g/km. The 141g/km benchmark tightens to 117g/km this year, mounting pressure on Hyundai and Mazda, with current potential penalties of $4m and $25m. More demand stimulus from cleaner vehicles will be required to generate saleable offsets, and supply customer wants, without passing on cost.

It believes this supports its view that the company is positioned for strong earnings growth in the coming years.

Big potential returns

According to the note, Bell Potter has retained its buy rating and $2.30 price target on the ASX financial stock.

Based on its current share price of $1.35, this implies potential upside of 70% for investors over the next 12 months.

In addition, Bell Potter expects a much more generous dividend yield than what CBA shares offer. It is forecasting a 5.3% yield over the 12 months, which boosts the total potential return to 75%.

The broker concludes:

Our earnings and Buy rating is unchanged. We would like to see a strategy for the lending business articulated. Data and contract wins confirm our compound growth of +9%, with upside from acquisitions, realised cost synergies and further M&A potential.

The post Forget CBA shares, Bell Potter says this ASX financial stock could deliver a 75% return appeared first on The Motley Fool Australia.

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

Investors endured a rough start to the trading week this Monday, with the S&P/ASX 200 Index (ASX: XJO) continuing to suffer from the selling momentum that we saw at the back end of last week.

After initially plunging almost 2% this morning, the ASX 200 pared back those losses and ended up closing 0.74% lower today. That loss leaves the index at 8,365.9 points.

This coldwater start to the trading week for Australian investors comes after a tough end to the American trading week on Saturday morning (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) was hit hard, falling by a horrid 0.96%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was hit even harder, dropping 2.01%.

But let’s get back to this week and the local markets now with a look at how the various ASX sectors handled today’s trading conditions.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Life360, Lovisa, and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Aub Group, Eagers Automotive Ltd, Lovisa, Premier Investments, and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Charter Hall Retail REIT (ASX: CQR) share price is in focus today after announcing a quarterly distribution of 6.35 cents per unit, payable in late May.

What did Charter Hall Retail REIT report?

• Quarterly distribution of 6.35 cents per unit, unfranked
• Record date for entitlement: 31 March 2026
• Ex-dividend date: 30 March 2026
• Payment date: 29 May 2026
• Distribution relates to the quarter ending 31 March 2026
• Distribution will be paid in Australian dollars

What else do investors need to know?

Charter Hall Retail REIT’s latest quarterly distribution remains fully unfranked, in line with previous announcements. Securityholders on the register by 31 March 2026 will be eligible for the payment.

The REIT continues to offer a Dividend/Distribution Reinvestment Plan (DRP), allowing eligible investors to reinvest their distributions into additional units. No foreign income component is included in this distribution.

What’s next for Charter Hall Retail REIT?

Investors can expect to receive the distribution payment on 29 May 2026, with the ex-dividend date set for 30 March 2026. The management team remains focused on delivering consistent distributions and managing the retail property portfolio for stable long-term returns.

The REIT will likely provide its next financial update following the end of the financial year, and investors may wish to keep an eye on property market trends and leasing activity.

Charter Hall Retail REIT share price snapshot

Over the past 12 months, Charter Hall Retail REIT shares have risen 7%, slightly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Charter Hall Retail REIT reveals March 2026 distribution details appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Charter Hall Retail REIT. 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.

Electro Optic Systems Holdings Ltd (ASX: EOS) shares are crashing today after a sharp pullback from recent highs.

At the time of writing, the EOS share price is down 8.18% to $9.09. This leaves the stock down around 22% over the past week after hitting an all-time high of $11.80 on 13 March.

Let’s unpack what has driven this volatility, and whether EOS shares can move higher again.

Strong rally driven by defence demand

The recent surge in EOS shares has been driven by increased demand for counter-drone technology.

Ongoing conflict in the Middle East and rising global tensions have highlighted the growing use of low-cost drones in modern warfare. This has pushed governments to lift spending on systems designed to detect and neutralise these threats.

EOS develops counter-drone systems and high-energy laser technology, which are attracting more attention as defence priorities shift.

Recent contract wins, including a US$45 million order for its slinger system, highlight this demand. Management also noted that current conditions could support further opportunities.

At the same time, global defence spending is also increasing as geopolitical risks rise.

Profit-taking and insider selling weigh on sentiment

However, conditions have shifted quickly.

The recent decline follows a sharp run-up in the share price, with some investors locking in gains after the move to record highs.

In addition, a recent update confirmed that CEO Dr Andreas Schwer sold 1.5 million shares following the exercise of options.

While he still holds a sizeable position, insider selling can weigh on the stock in the short term.

Together, these factors have contributed to the pullback in EOS shares over the past week.

What could drive the next move?

Looking ahead, EOS remains tied to defence spending trends and its ability to convert its growing order book into revenue.

The company has indicated that recent contracts could support production activity over the next two years. Continued contract wins or further expansion of its pipeline may help support sentiment.

At the same time, the share price has shown it can move quickly in both directions. After a rapid rise to record levels, the recent pullback highlights how sensitive the stock can be to wild swings.

For EOS shares to break to new highs again, investors will be watching for further contract announcements and the potential US$80 million Goldrone deal.

While the stock remains well above levels seen earlier in March, recent volatility shows how quickly the share price can move.

EOS will be one stock to watch closely in the coming weeks.

The post Can EOS shares break a new all-time high again? appeared first on The Motley Fool Australia.

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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 positions in and has recommended Electro Optic Systems. 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.

It’s never comfortable buying something after it has fallen sharply.

But that’s often when I start paying the most attention.

The Betashares India Quality ETF (ASX: IIND) is down over 20% over the past 12 months, with most of that decline happening recently. That has pushed it toward 52-week lows and raised an important question.

Is this a warning sign, or an opportunity to buy quality at a better price?

What you’re actually buying

One thing I always like to do with exchange-traded funds (ETFs) is look under the hood.

IIND isn’t just broad exposure to India. It focuses on higher-quality companies, which is an important distinction.

Its top holdings include Bharti Airtel, Hindustan Unilever, Infosys Ltd (NYSE: INFY), Vedanta, and ICICI Bank Ltd (NYSE: IBN).

That’s a mix of telecommunications, consumer goods, financials, industrials, and technology.

What I like about this is that it reflects a broadening Indian economy. It’s not just one theme driving growth, but multiple sectors evolving at the same time.

The AI risk is real

That said, there is a genuine risk emerging that investors shouldn’t ignore.

According to the Financial Times, advances in artificial intelligence (AI) are starting to raise concerns about India’s outsourcing industry, particularly the repetitive, lower-end work that has historically been a major part of the sector.

The article notes that “agentic tools are coming for the repetitive work that was once their bread and butter” and highlights fears that clients may increasingly rely on AI rather than outsourcing providers.

There is also growing uncertainty about whether companies will continue to rely on Indian IT services firms or instead build their own AI capabilities internally.

That’s important, because companies like Infosys, one of the IIND ETF’s holdings, sit right in the middle of this shift.

Why I still think it makes sense

Even with those concerns, I don’t think the investment case falls apart.

India’s growth story is much bigger than outsourcing.

The economy is being driven by rising consumption, infrastructure development, financial services expansion, and a growing middle class. Many of the Betashares India Quality ETF’s holdings are tied to these domestic trends, not just global outsourcing demand.

There’s also an argument that India adapts rather than falls behind.

The same Financial Times piece points out that while lower-end jobs may be at risk, higher-skilled roles and “global capability centres” are expanding, with multinational companies continuing to invest in India’s talent base.

So the nature of growth may change, but that doesn’t necessarily mean it disappears.

The valuation is more appealing now

The recent pullback is what really gets my attention.

A 20% decline doesn’t automatically make something cheap, but it does change the starting point.

You’re no longer buying into peak optimism. Expectations have come down, and that can improve long-term return potential if the underlying growth story continues.

For me, this looks like another case where sentiment has weakened faster than the long-term fundamentals.

A long-term and balanced approach

This isn’t something I’d expect to rebound quickly.

Emerging markets can be volatile, and themes like AI disruption can take time to play out.

I’d see the Betashares India Quality ETF as a long-term position and one part of a broader portfolio, rather than a standalone bet.

Pairing it with developed market ETFs and Australian shares can help balance out that volatility.

Foolish takeaway

The Betashares India Quality ETF has fallen to 52-week lows, and there are valid concerns around how AI could reshape parts of India’s economy.

But the broader growth story remains intact in my view, and the recent pullback has made the entry point more interesting.

For patient investors, I think it makes sense to consider buying at these levels, as long as it’s done as part of a diversified, long-term portfolio.

The post Does it make sense for me to buy this ASX ETF near 52-week lows? appeared first on The Motley Fool Australia.

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