When you have a lump sum like $10,000 to invest, the challenge is not finding ideas. It is deciding how to spread that money across themes that can work over time.

The good news is that exchange traded funds (ETFs) make this easier by allowing investors to position for different global trends.

Right now, a combination of value, structural growth, and long-term geopolitical change could make sense for investors looking beyond the short term. And here are three ASX ETFs that offer this:

VanEck MSCI International Value ETF (ASX: VLUE)

The first ASX ETF to consider is the VanEck MSCI International Value ETF.

It offers investors exposure to global share markets with a valuation-first perspective. Rather than focusing on the fastest-growing stocks, this fund invests in developed market businesses that rank highly on traditional value metrics. This includes price to earnings, book value, and cash flow.

The portfolio includes large, established companies across sectors like technology, industrials, healthcare, and financials. This provides diversification away from growth-heavy strategies and exposure to businesses that already generate meaningful cash flow.

The VanEck MSCI International Value ETF was recently recommended by the team at VanEck.

Betashares Global Defence ETF (ASX: ARMR)

Another ASX ETF that could be worth considering is the Betashares Global Defence ETF.

This fund targets a theme that is becoming increasingly structural rather than cyclical. It invests in global stocks that are involved in defence, aerospace, and national security technologies.

Rising geopolitical tensions, changes in warfare, and increased defence spending across many countries have shifted these industries into long-term investment priorities rather than short-term budget items.

This ultimately means that the Betashares Global Defence ETF offers exposure to a sector benefiting from sustained global investment, without needing to select individual defence stocks. It was recently recommended by analysts at Betashares.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF provides investors with exposure to the technology leaders shaping Asia’s digital economy.

This ASX ETF invests in major Asian technology stocks across areas such as ecommerce, digital payments, cloud services, and online platforms. These businesses stand to benefit greatly from large populations, rising digital adoption, and expanding middle classes across the region.

This means that for long-term investors, it provides access to growth drivers that differ from those in the United States and Europe, and can add a growth-oriented edge to a portfolio that is otherwise focused on developed markets.

It was also recently recommended by analysts at Betashares.

The post Where to invest $10,000 in ASX ETFs right now appeared first on The Motley Fool Australia.

More reading

• The best ASX ETFs to buy for an SMSF
• Why the IVV ETF and these funds could be top buys in 2026
• Where I would invest $5,000 in ASX ETFs in January
• Which ASX defence ETF performed best in 2025?
• 3 fantastic ASX ETFs for growth investors to buy before it’s too late

Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf. 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.

The Australian share market has delivered a mixed bag over the past 12 months. While some sectors surged on strong tailwinds, others were hit hard by weaker earnings, changing interest rate expectations, and global uncertainty.

Looking at the ASX sector data, the gap between the best and worst performers has been wide.

The best performer: Materials

The S&P/ASX 200 Materials Index (ASX: XMJ) was the clear standout over the past year, rising about 36%.

The sector includes miners and commodity producers, and it benefited from strong gains in gold, silver, copper, and iron ore prices. Gold prices surged as investors looked for safer places to park money amid geopolitical tensions and economic uncertainty. That flowed directly into higher share prices for gold miners and diversified resource companies.

China’s stabilising demand and limited new supply also helped support prices for key industrial metals. As a result, materials stocks became one of the most reliable places for investors seeking growth as the broader market moved sideways.

Solid performers: Industrials and Financials

The S&P/ASX 200 Industrials Index (ASX: XNJ) also delivered a strong result, climbing around 11.6% over the past year. Defence stocks, transport businesses, and infrastructure-related companies benefited from increased government spending and long-term contracts.

The S&P/ASX 200 Financials Index (ASX: XFJ), led by the major banks, rose about 5.3%. While gains were not spectacular, banks delivered steady earnings and attractive dividends. Falling inflation expectations and the possibility of rate cuts later in the year helped support sentiment across the sector.

Flat to modest returns: Staples, Property and Utilities

Several sectors produced only modest gains. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) rose roughly 1.6%, as supermarket and food stocks were steady, but returns were small.

The S&P/ASX 200 Real Estate Index (ASX: XRE) gained less than 1%, held back by higher interest rates and cautious property markets. The S&P/ASX 200 Utilities Index (ASX: XUJ) also delivered a small gain of under 1%, reflecting their defensive nature during uncertain times.

The worst performers: Healthcare and Tech

At the bottom of the leaderboard sits the S&P/ASX 200 Healthcare Index (ASX: XHJ), down a sharp 23.5% over the past year. Higher costs, earnings disappointments, and weaker global sentiment toward large healthcare names weighed heavily on the sector.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) was not far behind, falling about 21.3%. Unlike US tech giants, many ASX tech companies struggled with slowing growth, tighter funding conditions, and valuation pressure.

Foolish takeaway

The past year shows how quickly market leadership can change. Hard assets and cash-generating businesses have outperformed high-growth stories, while sectors once seen as defensive have stumbled.

As markets move into 2026, investors will be watching whether materials can keep running, or if beaten-down sectors like healthcare and tech are finally due for a rebound.

The post The best and worst ASX sectors of the past 12 months appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• ASX 200 materials sector outperforms as mining shares continue their ascent
• 5 things to watch on the ASX 200 on Friday
• 3 ASX 200 shares that doubled in value in 2025
• Here are the top 10 ASX 200 shares today

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

BlackRock will pay final distributions (or dividends) for 2025 on many of its ASX exchange-traded funds (ETFs) on Monday.

Those ETFs include iShares Core S&P/ASX 200 ETF (ASX: IOZ) and iShares S&P/ASX Small Ordinaries ETF (ASX: ISO).

IOZ ETF delivered a solid 10.36% return for 2025 in line with the strength of the benchmark S&P/ASX 200 Index (ASX: XJO) last year.

The ISO ETF outperformed, producing a 24.54% total return as ASX small-cap shares benefitted from three interest rate cuts.

Small-caps have market valuations of between a few hundred million dollars and $2 billion, and carry more debt to fund their growth.

Perpetual portfolio manager Alex Patten said 2025 represented the first time that small-caps had outperformed “in a number of years”.

Patten said:

… now that rates are starting to come down, we’re seeing more interest in small and micro caps and bit more liquidity in the market.

How much will ASX ETF investors receive today?

We have summarised the dividend amounts that investors will receive today, rounded to two decimal places.

ASX ETF	Distribution
iShares 15+ Year Australian Government Bond ETF (ASX: ALTB)	64.48 cents per unit
iShares Core Cash ETF (ASX: BILL)	34.26 cents per unit
iShares Core FTSE Global Infrastructure (AUD Hedged) ETF (ASX: GLIN)	16.7 cents per unit
iShares Core FTSE Global Property Ex Australia (AUD Hedged) ETF (ASX: GLPR)	19.5 cents per unit
iShares Core Composite Bond ETF (ASX: IAF)	76.91 cents per unit
iShares Core Corporate Bond ETF (ASX: ICOR)	103.31 cents per unit
iShares Core MSCI Australia ESG ETF (ASX: IESG)	10.31 cents per unit
iShares Treasury ETF (ASX: IGB)	64.36 cents per unit
iShares S&P/ASX Dividend Opportunities ESG Screened ETF (ASX: IHD)	14.52 cents per unit
iShares Core MSCI World ex Australia ESG (AUD Hedged) (ASX: IHWL)	26.69 cents per unit
iShares Government Inflation ETF (ASX: ILB)	42.58 cents per unit
iShares S&P/ASX 20 ETF (ASX: ILC)	19.91 cents per unit
iShares Core S&P/ASX 200 ETF (ASX: IOZ)	18.37 cents per unit
iShares Edge MSCI Australia Minimum Volatility ETF (ASX: MVOL)	63.61 cents per unit
iShares World Equity Factor ETF (ASX: WDMF)	25.08 cents per unit
iShares Enhanced Cash ETF (ASX: ISEC)	36.29 cents per unit
iShares S&P/ASX Small Ordinaries ETF (ASX: ISO)	4.78 cents per unit
iShares Yield Plus ETF (ASX: IYLD)	38.02 cents per unit
iShares Core MSCI World ex Australia ESG ETF (ASX: IWLD)	30.38 cents per unit

The post Own IOZ or ISO ETFs? It’s dividend payday for you! appeared first on The Motley Fool Australia.

More reading

• 5 ETFs for an effective global portfolio
• This is how I would build a sound ETF portfolio from scratch
• Own IVV or IOO ETFs? It’s dividend payday for you!
• What is the Russell 2000 Index and why has it been booming over the past 6 months?
• Own ASX IOZ or other iShares ETFs? Dividends just announced!

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week in a positive fashion. The benchmark index rose 0.5% to 8,903.9 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to edge lower

The Australian share market looks set for a subdued start to the week following a poor finish to the last one on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 1 point lower. In the United States, the Dow Jones was down 0.15%, the S&P 500 fell 0.05%, and the Nasdaq edged 0.05% lower.

Oil prices rise

It could be a decent start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices pushed higher on Friday night. According to Bloomberg, the WTI crude oil price was up 0.4% to US$59.44 a barrel and the Brent crude oil price was up 0.6% to US$64.13 a barrel. Traders were buying oil in response to multiple supply risks.

Buy Mader shares

Analysts at Bell Potter think investors should be buying Mader Group Ltd (ASX: MAD) shares. This morning, the broker has upgraded the specialised contract labour provider’s shares to a buy rating with a price target of $9.00. It made the move on valuation grounds following a pullback. Bell Potter said: “We upgrade our Recommendation to Buy. The recent retracement in MAD’s share price offers investors a more attractive risk-reward proposition, with 17.2% TSR implied by our $9.00/sh Target Price. We maintain the view that consensus expectations are conservative (FY26e NPAT of $67.6m; BPe $69.6m; NPAT guidance >$65.0m). Disclosure of MAD’s next 5-year strategy represents a near-term catalyst.”

Gold price drops

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a soft start to the week after the gold price dropped on Friday night. According to CNBC, the gold futures price was down 0.5% to US$4,601.1 an ounce. This was driven by a combination of profit-taking from traders and easing geopolitical risks.

Yancoal update

The Yancoal Australia Ltd (ASX: YAL) share price will be one to watch on Monday. That’s because the coal miner is scheduled to release its fourth quarter update today. Management is guiding to 2025 saleable production of 35-39Mt with $89-$97 per tonne cash operating costs. During the third quarter, it was tracking towards the mid-point of both ranges.

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

More reading

• ASX 200 materials sector outperforms as mining shares continue their ascent
• Why Australian Ethical, Northern Minerals, PLS, and Woodside shares are falling today
• Brokers issue new price targets on soaring ASX 200 mining shares
• 5 things to watch on the ASX 200 on Friday
• Why I think ASX 200 gold shares like Newmont and Northern Star will keep surging higher in 2026

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

Vanguard will pay the final distributions (dividends) for 2025 to investors in its ASX exchange-traded funds (ETFs) today.

This includes the market’s largest ETF, the Vanguard Australian Shares Index ETF (ASX: VAS).

Aussie investors have $22.58 billion invested in ASX VAS, which seeks to track the performance of the S&P/ASX 300 Index (ASX: XKO).

VAS ETF delivered a total gross return of 10.07% last year, made up of 7.05% in capital growth and a dividend yield of 3.02%.

The ETF closed out the year at $108.90 per unit on 31 December after retracing a little from its 52-week high of $113.18 on 16 October.

On Friday, VAS closed the week at $110.50 per unit, up 0.53%.

Let’s recap the dividends to be paid out today for investors in VAS and other Vanguard ETFs.

How much will Vanguard ETF investors receive?

Here is a summary of the dividends that Vanguard will pay to investors today.

The Vanguard Australian Shares Index ETF (ASX: VAS) will pay a dividend of 82.08 cents per unit.

Vanguard Australian Shares High Yield ETF (ASX: VHY), which tracks the FTSE Australia High Dividend Yield Index, will pay 65.83 cents per unit.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) will pay a dividend of 47.36 cents per unit.

The Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO) will pay 129.60 cents per unit. The VSO tracks the MSCI Australian Shares Small Cap Index.

Vanguard FTSE Europe Shares ETF (ASX: VEQ), which tracks the FTSE Developed Europe All Cap Index (with net dividends reinvested) in Australian dollars before fees, will pay 61.60 cents per unit.

The Vanguard Australian Fixed Interest Index ETF (ASX: VAF) will pay a dividend of 42.44 cents per unit.

Vanguard Australian Property Securities Index ETF (ASX: VAP), which tracks the performance of the S&P/ASX 300 A-REIT Index before fees, will pay 45.61 cents per unit.

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE), which tracks the FTSE Emerging Markets All Cap China A Inclusion Index (with net dividends reinvested) in Australian dollars before fees, will pay 132.88 cents per unit.

Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH), which tracks the FTSE Australia 300 Choice Index before fees, will pay 55.39 cents per unit.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM) will pay 85.44 cents per unit.

Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC) will pay a dividend of 63.34 cents per unit.

The post Vanguard will pay ASX ETF dividends today appeared first on The Motley Fool Australia.

More reading

• How much passive income could I make from ASX shares with $10,000?
• 5 ETFs for an effective global portfolio
• Morgan Stanley tips 12% upside for US stocks in 2026. Here are 3 ASX ETFs offering exposure
• My simple 5-share ASX retirement portfolio
• I would put $10,000 of my savings into these ETFs

Motley Fool contributor Bronwyn Allen has positions in Vanguard Msci Index International Shares ETF. 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 Vanguard Australian Shares High Yield ETF and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Catalyst Metals Ltd (ASX: CYL)

According to a note out of Bell Potter, its analysts upgraded this gold miner’s shares to a buy rating with an increased price target of $13.50. This followed the release of a strong quarterly update from Catalyst Metals which came in ahead of the broker’s expectations. Looking ahead, Bell Potter thinks that the company’s Plutonic operation will become a long-term production hub that underpins a significant increase in output in the coming years. In fact, it is expecting Catalyst Metals to increase its production to 200,000 ounces a year by FY 2029. This compares favourably to its current guidance for FY 2026 of 100,000 ounces to 110,000 ounces of gold. Combined with its upgraded gold price forecast, this has seen th broker boost its valuation of this gold miner’s shares materially. The Catalyst Metals share price ended the week at $9.00.

Mineral Resources Ltd (ASX: MIN)

Another note out of Bell Potter reveals that its analysts retained their buy rating on this mining and mining services company’s shares with an increased price target of $68.00. According to the note, the broker has been looking at the company’s upcoming quarterly update. While it is expecting a small decline in iron ore production, slightly higher costs, and steady lithium production, it thinks investors should overlook this due to significantly better than expected commodity prices. In fact, higher prices mean the broker has upgraded its earnings estimates and valuation materially. Looking even further ahead, Bell Potter believes that Mineral Resources is positioned to benefit from a recovery in lithium markets given that it has around 338ktpa of offline spodumene production capacity. The Mineral Resources share price was fetching $59.78 at Friday’s close.

WiseTech Global Ltd (ASX: WTC)

Analysts at Citi have retained their buy rating and $109.15 price target on this logistics solutions technology company’s shares. According to the note, its analysts believes the company can achieve the midpoint of its annual revenue guidance in FY 2026 despite giving some customers a short-term exemption from its new pricing model. Although Citi concedes that second half revenue from Cargowise value packs could be smaller than previously expected, it sees scope for this to be offset by stronger than expected industry freight volumes. Citi also sees potential earnings outperformance from lower than forecast operating expenses. The WiseTech Global share price ended the week at $67.02.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• No savings at 50? Here’s how I’d use Warren Buffett’s playbook to build wealth and retire comfortably
• ASX 200 materials sector outperforms as mining shares continue their ascent
• Brokers name 3 ASX shares to buy today
• Why Australian Ethical, Northern Minerals, PLS, and Woodside shares are falling today
• Brokers issue new price targets on soaring ASX 200 mining shares

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Periods like this don’t come around very often.

Across the ASX, a group of well-known income stocks are trading well below their highs, not because their business models are broken, but because short-term conditions have turned against them. 

In many cases, their dividends are under pressure today. But that is exactly why I think the long-term opportunity looks so compelling.

When income stocks fall out of favour, investors often focus on what dividends look like right now. I prefer to think about what they could look like two or three years from now if conditions normalise.

Here are several ASX income stocks where I think patience could be rewarded with both dividend growth and capital upside.

Accent Group Ltd (ASX: AX1) and Super Retail Group Ltd (ASX: SUL)

Accent Group and Super Retail Group have both been hit hard by the same forces.

Soft consumer spending and aggressive discounting have weighed on earnings and margins. Unsurprisingly, that has flowed through to share prices and dividend expectations. Both stocks are trading well below their prior highs.

In my view, these pressures look cyclical rather than structural. Neither business has lost relevance. They have strong brand portfolios, national store networks, and proven operating models.

If consumer conditions improve over the next couple of years, I think there is scope for a meaningful recovery in profitability. That would likely support higher dividends in FY27 and FY28, alongside a rebound in share prices. Buying during periods of pessimism has historically been how the best income returns are generated.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Domino’s Pizza Enterprises is a different case, but the setup feels similar.

This ASX income stock has struggled with execution across several international markets, and that has weighed heavily on investor confidence. Store closures, cost pressures, and weaker sales growth have all played a role in pushing the share price lower.

Management believes its turnaround plan will reset the business. This includes cutting costs, simplifying operations, and exiting underperforming locations.

I don’t think a recovery is guaranteed. But if the plan works even moderately well, Domino’s could emerge leaner, more focused, and more profitable. From an income perspective, that creates optionality. Dividends today are not the attraction. The attraction is what they could look like if their earnings recover.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine Estates has been weighed down by soft demand for premium wine, particularly as cost-of-living pressures have altered consumer behaviour.

I think this is another example of a high-quality business caught in an unfavourable cycle. Demand for premium wine has not disappeared, but consumers have become more cautious with their spending.

If spending patterns normalise, this ASX income stock could see improving volumes and margins. That would support both earnings recovery and improved dividend capacity over time. Buying when sentiment is weak is uncomfortable, but it is often when long-term value is created.

Macquarie Group Ltd (ASX: MQG) and NIB Holdings Limited (ASX: NHF)

Not all income opportunities require a full turnaround.

Macquarie Group is down around 15% from its 52-week high. NIB Holdings is down roughly 19%. In both cases, these are established businesses with long operating histories and proven earnings power.

While near-term growth may be more muted, I think both companies remain capable of delivering attractive income and capital returns over a full cycle.

Why this could be a rare opportunity

Income investing works best when you buy before dividends recover, not after.

Just look at Qantas Airways Ltd (ASX: QAN). You could have bought its shares for $4.77 in October 2023. According to CommSec, the airline is forecast to pay a dividend of 42.9 cents per share in FY26. This means that investors who bought shares two and a bit years ago could receive a yield on cost of 9% in 2026.

Today’s environment has created a gap between what dividends look like now and what they could look like if conditions improve. For patient investors willing to look beyond the next twelve months, that gap could represent a rare opportunity.

It won’t work for every stock. Some turnarounds fail. But when income stocks recover, they often reward investors twice. Once through higher dividends, and again through rising share prices. That combination is how long-term wealth is built.

The post ASX income stocks: A once-in-a-decade chance to get rich appeared first on The Motley Fool Australia.

More reading

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• Can this ASX 200 stock recover after losing 51%?
• How I’d go about finding undervalued ASX shares to buy and hold forever in 2026
• NIB share price up 22% in 12 months, but could face short-term weakness. Here’s what investors should know

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 Domino’s Pizza Enterprises, Macquarie Group, Super Retail Group, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Macquarie Group, NIB Holdings, Super Retail Group, and Treasury Wine Estates. The Motley Fool Australia has recommended Accent Group and Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s a great joy to own ASX dividend shares that deliver passive income for our bank accounts. I think it’s even more appealing to own businesses that have a habit of growing the payout each year.

It’s especially pleasing to see the payment increase each year. This enables us to become wealthier, offset/exceed inflation, as well as signalling that the business isn’t hitting shareholders with a cut.

If we’re relying on dividend income to pay for our life, it could be a disaster if an ASX dividend share were to enact a cut. That’s why I’ve put a lot of my own money towards the two names below, and I still think they’re buys today.

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

The leading ASX business for dividend increases is Soul Patts, in my view.

While the investment house hasn’t delivered the biggest dividend increases over the past decade or two, it has certainly been the most consistent.

It has increased its annual dividend every year since 1998, which is a longer streak than any other ASX share.

It’s invested in a number of sectors including telecommunications, resources, agriculture, industrial properties, building products, swimming schools, credit and more.

By having a diversified portfolio, it’s able to lower the risks and find the best opportunities in a wide array of industries.

The ASX dividend share is able to regularly grow the passive dividend income because it generates investment cash flow from its portfolio, it pays for its expenses and then sends a majority of that net cash flow to shareholders. It retains some of the money to invest in more opportunities each year.

The company has a grossed-up dividend yield of 3.9%, including franking credits. But, with its record of rising payouts, I’m expecting the FY26 grossed-up dividend yield to be at least 4.1%, at the current valuation.

L1 Long Short Fund Ltd (ASX: LSF)

I like the listed investment company (LIC) structure for receiving stable and growing income because of how LICs can use investment gains in the latest and previous financial years, enabling a smooth and steadily rising payout due to the profit reserve.

The L1 Long Short Fund provides investors with access to a fund that aims to produce positive returns regardless of what share markets are doing. It achieves this by investing in businesses it thinks are undervalued, as well as shorting businesses it thinks will fall. The company’s investment objective is to deliver strong, positive, risk-adjusted returns over the long term whilst seeking to preserve shareholder capital.

The ASX dividend share has steadily increased its passive income each year since it started paying dividends in 2021. It recently announced a shift to a quarterly dividend of 3.5 cents per share. Annualised, that represents an increase of at least 9.8% year-over-year, assuming no increases to the quarterly payout.

If it does pay 14 cents per share in FY26, that’d be a grossed-up dividend yield of 4.7%, including franking credits.

The post Want to build up passive income? These 2 ASX dividend shares are a buy! appeared first on The Motley Fool Australia.

More reading

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• $20,000 in savings? Here’s how that could become $10,000 a year in passive income
• Don’t want to rely on your wage? Build a second income with these ASX shares
• 10 ASX shares I’d buy with $10,000 in 2026 to beat the market

Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund and 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 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.

Reaching 50 with little or no savings can feel overwhelming. But it certainly doesn’t mean all hope is lost.

In fact, by borrowing a few pages from Warren Buffett’s investment playbook, I believe it is still possible to build meaningful wealth over time and potentially enjoy a comfortable retirement.

Buffett didn’t get rich by chasing trends or trying to outsmart the market in the short term. Instead, he relied on patience, discipline, and a relentless focus on quality. Those principles can be just as powerful for everyday investors, even when starting later in life.

Think long term even at 50

One of the cornerstones of Buffett’s success is his long-term mindset. He buys shares with the intention of owning them for many years. This allows time and compounding to do the heavy lifting.

While a 50-year-old investor may not have decades of investing ahead of them, they still likely have 15–20 years before retirement. That’s more than enough time for compounding to work, especially if ASX share investments are made consistently.

The key is to stop thinking in terms of quick wins and instead focus on steady progress. Even modest returns, when reinvested over time, can add up to something meaningful.

Focus on quality businesses

Buffett is famous for favouring high-quality businesses with strong competitive advantages. These are companies with lasting brands, loyal customers, pricing power, and the ability to generate reliable cash flow.

Importantly, he doesn’t insist on buying them at any price.

Instead, he looks to invest when the market is overly pessimistic, often during periods of economic uncertainty or when an industry falls out of favour. These temporary setbacks can push down share prices, creating opportunities for patient investors.

In 2026, there’s no shortage of ASX shares facing short-term challenges. For long-term investors, that can be a feature rather than a flaw, provided the underlying business remains strong.

Examples could be CSL Ltd (ASX: CSL), James Hardie Industries Plc (ASX: JHX), or WiseTech Global Ltd (ASX: WTC).

Consistency matters

Trying to pick the perfect moment to invest is rarely productive. Buffett himself has said that time in the market is far more important than timing the market.

For someone starting from scratch at 50, investing regularly, whether monthly or quarterly, can be a powerful habit. It removes emotion from the process and ensures that capital is being put to work regardless of market conditions.

Over time, this disciplined approach can smooth out volatility and build momentum.

For example, if you could afford to invest $1,000 into ASX shares each month, you might be surprised at how much that could grow over time.

If you were to do this and achieve an average 10% annual return (broadly in line with historical averages), your portfolio would grow to be worth over $720,000 in 20 years.

Foolish takeaway

It is never too late to start investing and by following in Warren Buffett’s footsteps, investors could build wealth and retire rich, even if starting from zero.

The post No savings at 50? Here’s how I’d use Warren Buffett’s playbook to build wealth and retire comfortably appeared first on The Motley Fool Australia.

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

The Australian share market has long been a popular destination for income investors, and for good reason.

A large number of ASX shares pay dividends, often twice a year, giving investors a steady stream of cash flow without having to sell their shares. For many, this makes them an attractive option for building passive income over time.

So, what could a $10,000 investment realistically deliver?

What $10,000 can earn in passive income right away

The simplest way to generate income is to focus on dividend-paying ASX shares or ETFs like the Vanguard Australian Shares High Yield ETF (ASX: VHY).

If an investor were able to build a portfolio with an average dividend yield of 6%, which is achievable by targeting high-quality, high yielding income shares, a $10,000 investment would generate around $600 a year in dividends.

That’s not going to replace a salary, but it’s a decent return for doing very little. And importantly, it is just the starting point.

Rather than spending that income straight away, I would be inclined to reinvest it. That’s where compounding really starts to work in your favour.

Why I’d play the long game first

Instead of prioritising income from day one, another approach is to focus on growing the portfolio first.

If a $10,000 investment were able to compound at an average rate of 10% per year, which is roughly in line with long-term share market returns, it would grow to around $42,000 after 15 years.

At that point, switching to an income-focused portfolio yielding 6% would produce roughly $2,500 a year in passive income.

Stretch the timeframe further and the numbers become even more compelling. After 25 years of compounding at 10%, the same $10,000 could grow to about $110,000, supporting annual passive income of around $6,600 at a 6% yield.

The key takeaway is that time can be just as powerful as capital.

Adding more changes everything

Where things really start to get interesting is when regular contributions are made.

Starting with $10,000 and investing an extra $500 per month into ASX shares could dramatically accelerate results.

Assuming a 10% average annual return, that strategy could produce a portfolio worth approximately $240,000 after 15 years.

At a 6% dividend yield, that would translate into about $14,500 a year in passive income.

Extend the same strategy over 25 years and the portfolio could grow to roughly $730,000, with income potential approaching $44,000 a year, all else being equal.

Foolish takeaway

Generating meaningful passive income doesn’t happen overnight. But the combination of dividends, compounding, and consistent investing can be incredibly powerful over time.

Even a relatively modest starting amount like $10,000 can grow into something substantial, especially when paired with patience and regular contributions.

The post How much passive income could I make from ASX shares with $10,000? appeared first on The Motley Fool Australia.

More reading

• My simple 5-share ASX retirement portfolio
• DIY investors: How to build a stable income portfolio starting with $50,000
• Want passive income? This simple ETF strategy makes it easier than most people think
• 3 strong ASX ETFs to buy for passive income
• Vanguard reveals next lot of dividends for VAS and other ASX ETFs

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 recommended 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.