If I were forced to buy one ASX stock and then ignore the share price for the next decade, I would be looking for dominance, pricing power, and a business model that quietly compounds regardless of the economic backdrop.

For me, that stock is REA Group Ltd (ASX: REA).

Market dominance that competitors simply can’t match

REA’s strength starts with its overwhelming position in Australian property listings, and the gap to competitors is not narrowing.

In the first quarter of FY26, realestate.com.au averaged 12.6 million monthly users, with 6.7 million of them using the platform exclusively. Average monthly visits reached 147.9 million, which is more than 111 million visits per month ahead of its nearest competitor. Buyer enquiries grew 19% year-on-year, while seller leads jumped 35%.

Those numbers matter because they reinforce the flywheel that keeps agents, developers, and advertisers locked into the platform. More buyers attract more sellers. More sellers attract more agents. And that scale makes it very difficult for rivals to compete on value, even if they discount heavily.

Pricing power

One of the most impressive aspects of this ASX stock’s performance in FY26 is that it continued to grow revenue and earnings despite lower listing volumes.

Group revenue rose 4% year-on-year to $429 million, while EBITDA increased 5% to $254 million. Free cash flow jumped 16% to $86 million.

In Australia, residential Buy revenue growth was driven by a 13% increase in yield, even though national listings were down 8%. That yield growth came from higher pricing on premium products, increased take-up of add-on features, and deeper penetration across listings.

This is exactly what you want to see from a dominant marketplace. When volumes fluctuate, pricing and product depth do the heavy lifting.

A business that keeps widening its moat

REA is not standing still. During the quarter, it completed the acquisition of iGUIDE, an AI-enabled property imaging and floor plan platform, which strengthens its offering to agents and vendors. It continues to invest heavily in data, audience tools, and premium advertising products that lift returns for customers and reinforce its value proposition.

Importantly, REA still only has around 10% penetration of its broader addressable market in areas like financial services, data, and adjacent property services. That gives the ASX stock multiple long-term growth levers beyond simple listing volumes.

Why this is a true buy and forget ASX stock

REA is not cheap in a traditional sense, and it probably never will be. But that’s because it combines rare attributes: structural dominance, strong cash generation, and the ability to grow earnings without relying on constant market expansion.

Over a 10-year horizon, I care far more about whether a company can maintain relevance, pricing power, and customer dependence than whether it looks optically cheap today.

On those measures, REA stands out. It’s the kind of business I’d be comfortable owning through housing cycles, interest rate changes, and market volatility, without feeling the need to check the share price every week.

If the goal is long-term compounding rather than short-term trading, this is about as close as the ASX gets to a set-and-forget stock. And with its share price down 32% from its high, there might have never been a better time to invest.

The post The incredible ASX stock I’d hold for 10 years without watching the share price appeared first on The Motley Fool Australia.

More reading

• Is AI a real threat to CAR Group and REA Group shares?
• Where I would invest $50,000 in ASX 200 shares in February
• How a beginner investor could build a $250,000 ASX share portfolio
• Here are the top 10 ASX 200 shares today
• The ASX blue chip shares I’d happily build a portfolio around

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.

Woolworths Group Ltd (ASX: WOW) shares have had their fair share of ups and downs over the past couple of years. Far more than most ASX 200 blue chip stocks, as it happens.

After riding out the ‘Masters’ hardware store debacle in 2015, Woolworths shares managed to re-establish a reputation for defensive earnings and stable dividends in subsequent years. The period between mid-2016 and mid-2021 was one of the best in the company’s long history. It saw Woolworths’ shares rise from about $17 each to the (still-reigning) record high of $42.47 that we saw in August of 2021.

But sadly, it was not to last. Since those 2021 peaks, it’s been mostly a one-way street for Woolworths, and that way was not up-and-to-the-right.

A series of unfortunate events began unfolding for the company. Its Big W and New Zealand divisions continued to weigh on the company’s financials, which were not assisted by a slow erosion of its market share at the benefit of arch-rival Coles Group Ltd (ASX: COL). Former CEO Bradford Banducci’s exit in 2024 was also not received well by the markets. Nor were the company’s two earnings reports, for that matter.

This all came out in October last year, when Woolworths shares hit a six-year low of $25.51.

But we are not here to talk about Woolworths’ 2020s rough patch. So let’s get to the dividends.

What kind of dividend income are Woolworths shares paying out?

Like the company’s share price itself, the dividends from Woolworths have been through some swings and roundabouts of their own in recent years. Unlike Coles, which has made a point of delivering slow and steady annual increases, Woolworths’ payouts went from an annual total of $1.08 per share in 2021 to 92 cents in 2022. Then back to $1.04 in 2023 and again in 2024.

2025 saw this absence of a trend continue. The company funded an April interim dividend worth 39 cents per share, followed by September’s final dividend worth 45 cents per share. That annual total of 84 cents per share was the lowest paycheque investors have banked since 2017.

At yesterday’s closing share price of $30.59, that 84 cents gives Woolworths shares a trailing dividend yield of 2.75%.

In some potentially good news for investors, though, this dividend dip might be short-lived. Last week, my Fool colleague Grace looked at analyst predictions that Woolworths could spend the next few years hiking its dividends, with a potential payout of $1.35 per share by FY2028 pencilled in.

If accurate, that would give Woolworths shares a forward FY2028 yield of well over 4% today…But we’ll have to wait and see what the company’s next set of earnings brings to its dividend investors.

The post Buying Woolworths shares? Here’s the dividend yield you’ll get appeared first on The Motley Fool Australia.

More reading

• Which ASX retail stocks look like good buying ahead of the looming reporting season?
• 3 top ASX dividend share buys for passive income in February
• Got $5,000? 5 ASX income shares to buy and hold forever
• BHP and 4 strong ASX dividend shares for Aussie income investors to buy
• 3 of the best ASX retirement shares to buy

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Woolworths 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 holding an investment for 10 years or longer, I’m not trying to predict next quarter’s returns. I’m looking for exposure to lasting competitive advantages, structural growth trends, and portfolios that can adapt as the world changes.

That’s why, if I were building a long-term exchange-traded fund (ETF) allocation today, these three VanEck funds would be near the top of my list.

VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)

When I think about holding an ETF for a decade or more, I keep coming back to the concept of a moat. It’s an idea most closely associated with Warren Buffett, who has long argued that the best investments are businesses with durable competitive advantages, bought at sensible prices.

That’s essentially what the VanEck Morningstar Wide Moat AUD ETF aims to do.

The ETF invests in US companies that are judged to possess sustainable economic moats, such as strong brands, high switching costs, or network effects. Crucially, it also incorporates a valuation discipline, tilting the portfolio toward fair valued stocks.

For a long-term investor, that combination of quality and price discipline is powerful. It’s not about chasing whatever is popular at the time. It’s about owning businesses that are built to last and giving them time to compound.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

The VanEck Video Gaming and Esports ETF is the long-term growth play in this group, and I think the numbers back that up.

According to Statista, global gaming revenue is projected to reach US$564 billion in 2026 and grow at a compound annual rate of 6.8% through to 2030, taking the market to more than US$730 billion. The number of gamers worldwide is expected to climb to just over 3 billion users by the end of the decade, which tells me this is not a saturated market, even at its current scale.

What I like about the ESPO ETF is that it gives exposure to the companies building the infrastructure, platforms, and content that sit at the centre of this growth.

This VanEck ETF won’t move in a straight line, and I wouldn’t expect it to. But over a 10-year horizon, the combination of a growing user base, rising engagement, and expanding monetisation makes interactive entertainment a theme I’m comfortable backing for the long run.

VanEck Global Clean Energy ETF (ASX: CLNE)

Clean energy is a theme that has already had moments of hype, disappointment, and volatility. That’s exactly why I think it makes sense to view it through a long-term lens.

Regardless of short-term policy shifts or commodity cycles, the direction of travel is clear. Energy systems are gradually transitioning toward cleaner, more sustainable sources. That transition will require enormous investment across generation, storage, grid infrastructure, and supporting technologies.

The VanEck Global Clean Energy ETF provides diversified exposure to stocks involved across the global clean energy value chain. Some will succeed more than others, but owning the theme through an ETF reduces single-company risk and allows time for the winners to emerge.

For me, the CLNE ETF is a way to participate in a multi-decade transformation without needing to perfectly time the cycle.

Foolish takeaway

Holding an ETF for a decade or more requires confidence in the underlying idea, not just recent performance.

The MOAT ETF gives me durable competitive advantages and valuation discipline. The ESPO ETF gives me exposure to long-term digital entertainment growth. The CLNE ETF gives me a stake in the global energy transition.

Together, they reflect how I like to invest for the long run: a mix of quality, growth, and structural change, with enough diversification to stay invested through whatever the market throws up along the way.

The post Why I would buy and hold these VanEck ETFs for a decade or more appeared first on The Motley Fool Australia.

More reading

• 3 ASX growth shares to buy now while they’re on sale
• 3 VanEck ETFs on the ASX I rate as buys
• Where to invest $10,000 in ASX ETFs
• 3 ETFs I think could outperform NAB shares in 2026
• The best ASX ETFs for long-term investors

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 recommended VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Fortunately for income investors, the Australian share market is filled to the brim with dividend shares.

But which ones could be buys today?

Let’s take a look at three that analysts at Bell Potter are currently recommending as buys to their clients. They are as follows:

Centuria Industrial REIT (ASX: CIP)

The team at Bell Potter thinks that Centuria Industrial REIT could be a top ASX dividend share to buy right now.

It is an industrial property company that owns a portfolio of high-quality industrial assets that is situated in urban infill locations throughout Australia and is underpinned by a quality and diverse tenant base.

Bell Potter believes the company is positioned to pay dividends per share of 16.8 cents in FY 2026 and then 17.3 cents in FY 2027. Based on its current share price of $3.24, this would mean dividend yields of 5.2% and 5.3%, respectively.

The broker has a buy rating and $3.75 price target on its shares.

Sonic Healthcare Ltd (ASX: SHL)

Another ASX dividend share that Bell Potter is tipping as a buy is Sonic Healthcare.

It is a leading pathology and diagnostic imaging provider with operations across Australia, Europe, and the United States.

Bell Potter thinks it could be a great option given its belief that the company’s performance is about to improve meaningfully. It highlights that this is expected to be “driven by right sizing the business, the impact of acquisitions in FY24 and normalising organic operations post COVID.”

As for income, Bell Potter is forecasting Sonic Healthcare to pay dividends per share of $1.09 in FY 2026 and then $1.11 in FY 2027. Based on its current share price of $22.73, this represents dividend yields of 4.8% and 4.9%, respectively.

Bell Potter currently has a buy rating and $33.30 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

A third ASX dividend share that could be a top option for income investors is Universal Store.

It is the youth fashion retailer behind the eponymous Universal Store brand, as well as Thrills and Perfect Stranger.

Bell Potter has been pleased with the company’s performance in a tough consumer environment and believes the positive form can continue.

It expects this to underpin fully franked dividends of 37.3 cents per share in FY 2026 and 41.4 cents per share in FY 2027. Based on its current share price of $8.17, this equates to dividend yields of 4.55% and 5.1%, respectively.

Bell Potter has a buy rating and $10.50 price target on its shares.

The post 3 high-yield ASX dividend shares that smash term deposits appeared first on The Motley Fool Australia.

More reading

• Why analysts are recommending these ASX dividend stocks to their clients
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Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Sonic Healthcare and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Catapult Group International Ltd (ASX: CAT), Audinate Group Ltd (ASX: AD8), and Electro Optics Systems Holdings Ltd (ASX: EOS) all operate in different industries. But they share some very investible traits. They all service global markets in growing sectors, play in technically complex spaces with high barriers to entry, and stand to benefit from long-term trends. Here’s why they should be on your radar.

Why add Catapult to your watchlist?

• Leader in a high-growth industry
• Strong results year on year
• Profitability on the horizon

Since listing on the ASX in 2014, Catapult has steadily grown to become a global leader in elite sports performance and analytics. Across the world, sports are dominated by data, from coaching tactics and player health decisions to fan engagement. And Catapult’s wearable devices and analytics platform are at the heart of the trend, used by more than 3,200 professional teams globally.

While it is not yet posting a net profit after tax, all signs are pointing in the right direction. Its H1 FY26 update reported an Annualised Contract Value of $175 million (up 19% year on year) and an increased Contribution Margin, now sitting at 51.4%. This, combined with the expectations of continued growth in free cash flow, speak to a disciplined and scalable approach.

For me, Catapult has huge potential. And with recent share price falls, potentially driven by weak sentiment in the broader tech sector and investor impatience, it’s one to consider.  

Why add Audinate to your watchlist?

• Network effect advantage
• Long-term runway for growth
• Transition phase may create opportunity

Audinate is a breakout player in audiovisual networking, with its flagship Dante platform setting new industry benchmarks in audio and video distribution. The digitised platform replaces traditional analogue cabling with fast digital delivery. And it’s embedded in devices from over 700 manufacturers globally, giving Audinate a distinct network effect advantage.

2025 was a transitional year for Audinate, leading to an increase in costs and a revenue decline, with the company reporting a 32.2% revenue decrease year on year in FY25.

But for me, there may still be a significantly longer-term opportunity here, particularly at current prices. Given its deep sector penetration, it is well placed to build recurring, high-margin software revenue streams across its existing device ecosystem.

For me, it’s one to keep a close eye on.

Why add Electro Optics Systems to your watchlist?

• Defence spending tailwinds
• Strong contract momentum
• Explosive recent growth

EOS is an Australian leader in the design and manufacture of advanced defence and space technology systems.

The company reported losses in FY 2024. However, it has a strong balance sheet, reporting cash holdings of $106.9 million and no borrowings in its Q4 2025 activity report. In addition, it reported strong order book activity, with a deal pipeline of $459 million, representing a 238% increase since 31 December 2024.

In addition, it recently entered into an agreement to acquire European-based defence and technology company MARSS. Once approved, the acquisition will add further weight to its remote weapon systems, with advanced command and control capability.

As global tensions rise and governments look to modernise defence capabilities, EOS is well-positioned to continue its strong growth trajectory. So it’s no surprise that the share price is up over 700% in the last 12 months. Whether value remains for investors is yet to be seen. But with Bell Potter upgrading EPS last week, it’s definitely one to watch.

The post Buy local: 3 Australian innovations to add to your watch list appeared first on The Motley Fool Australia.

More reading

• 3 ASX stocks every Aussie investor should consider in 2026
• 3 ASX tech shares I would buy with $5,000
• Broker says these ASX defence stocks are investment weapons
• This ASX defence stock is down 10% in a week. Is the next leg higher already lining up?
• Top Australian shares to buy right now with $2,000

Motley Fool contributor Melissa Maddison 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 Audinate Group, Catapult Sports, and Electro Optic Systems. The Motley Fool Australia has positions in and has recommended Audinate Group and Catapult Sports. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When ASX growth shares fall 40% to 50% from their highs, it’s natural to assume something has gone wrong. Sometimes that’s justified. But in other cases, the sell-off reflects changing market sentiment rather than a deterioration in the business itself.

Right now, I think the market has thrown the baby out with the bathwater on a few high-quality ASX growth names. 

These are not early-stage stories with unproven models. They are established businesses that are now trading at levels that look far more reasonable than they did at their peaks.

These are three sold-off ASX growth shares I think are worth a serious look.

Zip Co Ltd (ASX: ZIP)

What’s happened to Zip’s share price has far more to do with the market than the business.

Zip hasn’t stumbled operationally. It continues to grow, expand merchant relationships, and increase customer engagement. The problem is that investor appetite for fintech and payments stocks has cooled dramatically, regardless of execution. Valuations have compressed across the sector, and Zip has been caught up in that broader reset.

What I find appealing now is that Zip is still growing, but it’s doing so with a much clearer focus on sustainable economics. Losses have ended, costs are under control, and the business no longer needs constant external funding to survive. In other words, Zip looks healthier today than it did when its share price was far higher.

To me, that disconnect between operational progress and share price performance is exactly what creates opportunity. If sentiment toward tech and fintech stabilises, Zip doesn’t need to do anything heroic to justify a higher valuation. It just needs to keep doing what it’s already doing.

Xero Ltd (ASX: XRO)

Xero’s sell-off has been more about uncertainty than underperformance.

The business itself continues to grow strongly. Subscriber numbers are rising, churn remains low, and Xero keeps generating solid cash flows. The concern isn’t demand for cloud accounting software. It’s whether the next phase of growth looks as clean as the last one.

Two issues have weighed on sentiment. The first is artificial intelligence (AI). Investors are still working out whether AI becomes a threat, a tool, or both for accounting platforms. Xero has been clear that it sees AI as an enabler, but until that strategy is fully visible, some doubt will linger.

The second is the $4 billion acquisition of Melio, which completed in October. It’s a bold move and one that introduces execution risk. Integrating a large US payments platform into Xero’s ecosystem won’t be trivial, and the market is understandably cautious about paying upfront for benefits that will take time to materialise.

That said, I think the sell-off assumes too much goes wrong and too little goes right. Xero doesn’t need Melio to transform the business overnight. Even modest success in cross-selling and monetisation could significantly expand Xero’s addressable market over time.

With the shares down more than 50% from their highs, I think the market is pricing in a worst-case outcome. For a business that continues to grow, generate cash, and invest for the long term, that feels overly pessimistic to me.

WiseTech Global Ltd (ASX: WTC)

WiseTech’s share price decline has been driven by a mix of company-specific issues and broader growth stock de-rating.

What’s different this time is that expectations have been thoroughly reset. Growth is no longer assumed. It needs to be delivered. That’s uncomfortable in the short term, but healthy over the long run.

WiseTech remains deeply embedded in global logistics workflows, with a platform that becomes more valuable as complexity increases. The shift toward a new commercial model and the integration of large acquisitions have introduced uncertainty, but they also create the potential for a more scalable and predictable earnings base if executed well.

At 55% below its highs, I think the market is pricing in a lot of things going wrong and very little going right. For patient investors, that imbalance is where opportunity often emerges.

Foolish takeaway

Not every sold-off ASX growth share deserves a second look. But Zip, Xero, and WiseTech are not broken businesses. They are businesses that were priced for perfection and then re-rated when reality intervened.

With expectations lower and valuations more grounded, I think these shares now offer something they didn’t at their peaks: a margin of safety.

The post Down 40% to 50%! Why I think these ASX growth shares are strong buys appeared first on The Motley Fool Australia.

More reading

• This ASX 200 tech stock just hit a 2-year low. Is it worth a closer look?
• 2 top ASX 200 blue-chip shares worth a spot in your portfolio
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• How a beginner investor could build a $250,000 ASX share portfolio
• 3 Australian stocks tipped to grow 100% (or more) in 2026

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 positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Thursday, the S&P/ASX 200 Index (ASX: XJO) fought hard but failed to get into positive territory. The benchmark index fell slightly to 8,927.5 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to rise on Friday despite a poor night in the United States. According to the latest SPI futures, the ASX 200 is expected to open 22 points or 0.25% higher this morning. In late trade on Wall Street, the Dow Jones is down 0.05%, the S&P 500 is down 0.55%, and the Nasdaq is down 1.4%. The latter was impacted by a 12% decline by Microsoft (NASDAQ: MSFT) shares.

Oil prices charge higher

It could be a good finish to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 3.3% to US$65.34 a barrel and the Brent crude oil price is up 3.25% to US$70.62 a barrel. This was driven by news that Donald Trump is considering strikes on Iran.

ResMed results

ResMed Inc. (ASX: RMD) shares will be on watch on the ASX 200 on Friday when the sleep disorder treatment company releases its second quarter update. The consensus estimate is for ResMed to report second quarter revenue growth of 9% along with a gross margin of 62.1%.

Gold price edges higher

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a relatively good finish to the week after the gold price edged higher overnight. According to CNBC, the gold futures price is up 0.1% to US$5,308.5 an ounce. Safe haven demand has been driving gold higher this week.

Buy Liontown shares

Liontown Ltd (ASX: LTR) shares could be heading higher according to Bell Potter. This morning, the broker has retained its buy rating on the lithium miner’s shares with a trimmed price target of $2.42 (from $2.48). The broker said: “With current lithium price strength, LTR can rapidly generate cash to support incremental production expansions and shareholder returns. Kathleen Valley is highly strategic in terms of scale, long project life and location in a tier-one mining jurisdiction. LTR has offtake contracts with top-tier EV and battery OEMs. The company has a strong balance sheet with long tenor debt finance.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

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• This ASX lithium stock is being sold off today. Here’s why

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

It is fair to say that Liontown Ltd (ASX: LTR) shares have been roaring over the past 12 months.

During this time, the lithium miner’s shares have risen by a massive 200%.

While this is great news for shareholders, does it mean that the rest of us have missed the boat?

Let’s see what Bell Potter is saying about the miner following its second quarter update this week.

What is the broker saying?

Bell Potter highlights that Liontown’s quarterly update was a touch on the mixed side with positives and negatives.

The negatives were that its production and revenue were softer than it expected. However, this was offset with better than expected costs and improvements with its cash flow.

Commenting on the update, the broker said:

LTR reported December 2025 quarterly spodumene concentrate production of 105kt (BP est. 109kt), sales of 112kt (BP est. 120kt) and revenues of $130m (BP est. $150m). While sales and realised prices were marginally weaker than we had expected, unit costs were also lower. LTR maintained a strong cash position of $390m (prior quarter end $420m), with operating cash flow break even and capex of $27m.

Separately, LTR announced that LG Energy Solution has elected to convert its entire US$250m convertible note holding into equity, representing approximately 239m LTR shares at a conversion price of $1.62/sh (including accrued interest). Upon completion, LGES will hold around 8% of LTR’s issued shares and debt will reduce to $315m (excluding leases, Ford Facility $300m and WA Government’s loan $15m).

Production growth opportunity

Bell Potter also notes that Liontown has spoken about looking into expanding its production capacity. However, this would ultimately depend on the strength of lithium prices. It said:

The recent strength in lithium markets has motivated the company to revisit Kathleen Valley expansion options, potentially taking mining and plant throughput to 4Mtpa (from 2.8Mtpa) through de-bottlenecking and incremental capacity additions. This study is expected to be completed in mid-2026 and FID is subject to sustained lithium market strength and Board approvals.

Should you buy Liontown shares?

Despite the mixed quarter, Bell Potter remains positive on Liontown shares.

This morning, the broker has reaffirmed its buy rating with a trimmed price target of $2.42 (from $2.48). Based on its current share price of $2.05, this implies potential upside of 18% over the next 12 months.

The broker’s buy rating is supported by current lithium strength and Liontown’s highly strategic asset. It concludes:

Following the LGES note conversion, LTR will be in a net cash position. Over FY26- 27, LTR will continue to ramp up and de-risk Kathleen Valley. With current lithium price strength, LTR can rapidly generate cash to support incremental production expansions and shareholder returns. Kathleen Valley is highly strategic in terms of scale, long project life and location in a tier-one mining jurisdiction. LTR has offtake contracts with top-tier EV and battery OEMs. The company has a strong balance sheet with long tenor debt finance.

The post Why Liontown shares could continue to roar higher appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• This ASX lithium stock is being sold off today. Here’s why
• Liontown earnings: Revenue surges and underground transition completed in Q2 FY26
• Liontown shares in focus as LG Energy Solution swaps $250m debt for equity
• 5 things to watch on the ASX 200 on Thursday

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.

Myer Holdings Ltd (ASX: MYR) shares ended Thursday well in the red.

Shares in the S&P/ASX 300 Index (ASX: XKO) department store owner closed the day down 3.3%, trading for 44.7 cents apiece.

For some context, the ASX 300 slipped 0.5% yesterday.

Taking a step back, Myer shares are down 51.1% over the past 12 months. And though the company paid an interim dividend of 0.5 cents a share on 20 March, management opted to suspend the final dividend payout amid slumping full year earnings and a 30% year on year decline in underlying net profits.

Yet, despite the share price halving in a year, Medallion Financial Group’s Stuart Bromley is still steering clear of the ASX 300 stock (courtesy of The Bull).

Time to sell Myer shares?

“The department store giant delivered disappointing results in full year 2025, in our view,” said Bromley, who has a sell recommendation on Myer shares.

According to Bromley:

Sales were weaker than expected. Earnings before interest and tax of $140.3 million, excluding significant items, were down 13.8% on the prior corresponding period. MYR didn’t declare a final dividend.

Ongoing cost challenges and pressures on discretionary spending have continued to weigh on investor sentiment.

Citing concerns about those ongoing potential headwinds, Bromley concluded:

The shares have fallen from 96 cents on January 23, 2025 to trade at 48 cents on January 22, 2026. We see risk/reward skewed towards further downside rather than a stabilised rebound in the current cycle.

What’s the latest from the ASX 200 retail stock?

The last price-sensitive news out from the company was released on 11 December.

Myer shares closed up 9.8% on the day, spurred by a trading update delivered during the company’s annual general meeting (AGM).

Investors responded positively after Myer reported a 3% year on year increase in sales over the first 19 weeks of FY 2026.

“We’ve had a very encouraging start to FY 2026,” Myer executive chair Olivia Wirth said on the day. “We are particularly pleased with the performance of our Myer Exclusive Brands in the Homeware and Womenswear categories, supporting the delivery of the increased sales.”

The company’s Homewares and Womenswear segments both achieved double-digit sales growth over the first 19 weeks of the new financial year.

On the cost front, Wirth also said that Myer was continuing to target its Cost of Doing Business (CODB) as a percentage of sales target of around 29%. Wirth noted that the company was on track to meet that target for the full FY 2026 year.

The post Sell alert! Why this expert is calling time on Myer shares appeared first on The Motley Fool Australia.

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

If you’ve got $1,000 to invest in ASX dividend shares, sometimes the smartest move is simply putting that money to work in businesses that generate reliable cash flow and return it to shareholders over time.

With that in mind, these are three ASX dividend shares I’d seriously consider right now if income was the priority.

Transurban Group Ltd (ASX: TCL)

If I’m buying dividends, I want predictability. That’s exactly what Transurban offers.

It owns and operates toll roads in major cities where traffic demand is driven by population growth, commuting patterns, and congestion. These aren’t discretionary assets. People use them because they have to, not because conditions are perfect.

The cash flows it generates are long-dated, inflation-linked in many cases, and supported by contractual toll escalation. This has underpinned a growing stream of distributions for well over a decade.

In FY26, Transurban has guided to a distribution of 69 cents per share, up from 65 cents previously. At current prices, that translates into a dividend yield of around 5%.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo is one of the more interesting income plays on the ASX, in my view, because of what it owns.

Its portfolio is focused on large-format retail assets anchored by tenants that provide everyday necessities. Think supermarkets, hardware, childcare, and essential services. These are not malls dependent on discretionary spending.

The REIT is guiding to distributions of 8.6 cents per share in FY26. Based on the current share price, that implies a dividend yield north of 6.5%. Importantly, those distributions are underpinned by long lease terms and a high-quality tenant mix that tends to hold up well even when consumer conditions soften. Its three largest tenants are Woolworths Group Ltd (ASX: WOW), Wesfarmers Ltd (ASX: WES), and Coles Group Ltd (ASX: COL).

For investors with $1,000, I think HomeCo offers an attractive income stream without taking on excessive risk.

Lottery Corporation Ltd (ASX: TLC)

Lottery Corporation is another smart choice, in my opinion.

This ASX dividend share operates Australia’s major lottery brands, and demand for lottery tickets has historically been remarkably resilient. Sales don’t rely on economic growth, interest rates, or consumer confidence in the same way most retail businesses do.

What I like most is the quality of the cash flow. The business is capital-light, highly profitable, and converts a large portion of earnings into free cash flow. That gives it plenty of capacity to pay and grow dividends over time.

While the yield isn’t the highest on the ASX, currently 3.4% based on CommSec forecasts, the consistency and defensiveness of the earnings make it a strong long-term income holding.

Foolish takeaway

With $1,000, you don’t need complexity. You need businesses that can reliably generate cash and share it with investors.

Transurban, HomeCo Daily Needs REIT, and Lottery Corporation each approach that goal differently, through infrastructure, property, and regulated consumer demand. Together, they offer a mix of yield, stability, and resilience that I think makes sense for income-focused investors right now.

The post The smartest ASX dividend shares to buy with $1,000 right now appeared first on The Motley Fool Australia.

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