There are certain ASX shares that could be excellent investments for the decade ahead, so why not benefit from the power of compounding?

I think that the businesses which can grow the most over the next 10 years could be the best investments today, even if they don’t seem cheap.

I believe the following two investments could be excellent buys today.

L1 Group Ltd (ASX: L1G)

L1 Group is a fund manager that offers clients exposure to a number of pleasing investment strategies including its long short strategy, a global long short strategy, a gold strategy and a few others.

There are a few important drivers of a fund management business, including solid fund performance and long-term growth of funds under management (FUM), since that’s what generates the revenue.

In FY26, the company reported FUM growth of around 17% to $19.1 billion. Revenue rose 49% while expenses declined around 15%, leading to strong positive operating leverage. Underlying net profit grew 97% to $188.8 million.

Following its merger/takeover of Platinum, it has achieved cost synergies of $31.7 million, with the cost target increased from $35 million to $43 million.

There are a number of other growth avenues for the business, including two extension strategies, a new PXC Advisors joint venture, offshore distribution build-out in North America, Europe, the Middle East and Africa. L1 has also confirmed an Australian small caps strategy.

Overall, the outlook for the ASX share seems very positive for the business in the long-term and I think the differentiated strategies with great performance is a promising future.

VanEck MSCI International Quality ETF (ASX: QUAL)

Another investment that I’m bullish about for the long-term is this exchange-traded fund (ETF) which aims to buy high-quality global shares.

There are three factors that a business must rank highly on to be potentially included in this ETF’s holdings.

First, companies must have a high return on equity (ROE). That means the business makes a lot of profit for how much shareholder money is still retained within the business. Plus, it could be a good indicator of how much profit the business could make on additional retained earnings in the future.

Second, businesses must have earnings stability. That should mean there is less chance of their earnings going down, which could suggest stronger performance during economically weak times. If earnings are regularly going up, that’s a good sign for capital growth.

Third, the QUAL ETF holdings must have low debt levels, which is a pleasing sign of the company’s balance sheet strength.

When you put those elements together, it’s not surprising that the QUAL ETF has returned an average of 15% per year over the last decade. I think it could be a very solid performer over the next decade as well.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in L1 Group and VanEck Msci International Quality 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 Kina Securities Ltd (ASX: KSL) share price made moves today after the company posted a 4% lift in net profit after tax (NPAT) for the first half of 2026, along with a 13% increase in its interim dividend in PGK terms.

What did Kina Securities report?

• Statutory NPAT rose 4% year on year to PGK59.7 million
• Revenue increased 2% to PGK254.8 million
• Net interest income grew 5% to PGK119.3 million
• Interim dividend up 13% in PGK at 14.2 toea (AUD 4.5 cents, stable year on year)
• Capital adequacy ratio strengthened to 26.0% (+870 bps), boosted by PNG’s first listed corporate bond
• Operating costs rose 7% to PGK159.6 million
• Non-interest income represented 53% of total revenue, declining slightly by 2%

What else do investors need to know?

Kina Securities made history this half by issuing PNG’s first listed corporate bond, raising PGK235 million. This has significantly fortified its capital position and supports the group’s long-term growth ambitions as outlined in its 2030 Strategy.

The group continued to invest in its digital capabilities, launching the Pei Beta digital wallet for retail customers and a new Corporate Online Banking platform for businesses. While loan book growth was deliberately slowed as part of balance sheet optimisation, management remains confident in a robust lending pipeline for the second half.

Macroeconomic headwinds such as a weaker kina and lower government yields put pressure on costs and margins. In addition, revenue in payment acquiring was temporarily affected by interoperability issues between a major PNG bank and new debit cards. Industry-wide fixes are expected to restore balance by the end of the year.

What did Kina Securities management say?

CEO Ivan Vidovich commented:

Our first half 2026 results reflect a resilient performance despite the anticipated macroeconomic headwinds. Earnings were also affected by the debit card interoperability matter involving a major PNG bank, which altered the competitive landscape in payments acquiring channels, reduced customer choice and constrained transaction-related revenue growth. The issuance of KSL’s PGK235 million Tier 2 Bond, the first listed corporate bond in PNG, materially strengthened our capital position and balance sheet capacity and represents an important early milestone in the delivery of the 2030 strategy… We entered the second half with positive momentum, and expect earnings to increase during the remainder of 2026.

What’s next for Kina Securities?

The company is focused on driving organic growth in the second half of the year, aiming to accelerate loan growth while carefully managing external challenges. Improved foreign exchange activity and a strengthened balance sheet are expected to underpin earnings for the rest of 2026.

Kina Securities also plans ongoing investment in technology and capabilities under its 2030 Strategy, maintaining a disciplined approach to risk and capital management for long-term shareholder value.

Kina Securities share price snapshot

Over the past 12 months, Kina Securities shares have declined 8%, trailing the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

View Original Announcement

The post Kina Securities lifts profit and dividend in half-year 2026 earnings appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Some of the best places to find passive income in Australia are ASX dividend shares, in my view.

What’s better than a combination of a good dividend yield and potential capital gains?

Of course, neither dividends nor capital growth is guaranteed. That’s why I prefer to look at undervalued stocks with a good outlook for payout growth in the coming years.

Let’s look at two ASX dividend shares that have a dividend yield of at least 6%.

Dexus Industria REIT (ASX: DXI)

The first business I want to highlight is the real estate investment trust (REIT) Dexus Industria REIT. It owns a portfolio of industrial properties across Australian cities, predominantly in key metropolitan locations.

Industrial properties are a compelling place to invest because the rental income is benefiting from multiple tailwinds.

For example, there is long-term growth of e-commerce usage, which requires warehouses. Data centre demand is another driver of rental value of industrial land. Demand for refrigerated space is also growing for both food and medicine. And so on.  

In FY26, the ASX dividend share reported strong like-for-like portfolio income growth of 5.3%, supported by rental escalations, strong releasing spreads (new rental contracts earning more than the old one), and high occupancy of 98.8%.

Despite high interest rates, Dexus Industria REIT expects to maintain its FY27 distribution at 16.6 cents per security. That translates into a forward distribution yield of 7%.

Universal Store Holdings Ltd (ASX: UNI)

The Universal Store company has multiple businesses under its umbrella – Universal Store, Perfect Stranger, and CTC (with the THRILLS and Worship brands). It sells youth casual fashion apparel.

Its FY26 result impressed, given the difficult operating environment, with 12.9% sales growth to $376.1 million and 16.3% underlying net profit growth to $40.5 million. This allowed the business to hike its annual dividend per share by 11.7% to 43 cents.

The ASX dividend share is delivering sales growth from both an expanding store network and impressive like-for-like (LFL) growth at its existing stores. The Universal store business generated 8.1% LFL growth, and Perfect Stranger achieved 13% LFL growth.

In the first seven weeks of FY27, the company saw direct-to-consumer sales rise by another 9.1% year over year. Management intends to open another 16 to 20 stores across the business in FY27, which can help grow its sales and margins further.

Based on the FY26 annual dividend payout of 43 cents per share, the business has a trailing grossed-up dividend yield of 7.6%, including franking credits, at the time of writing. I expect the ASX dividend share’s payout will grow again in the 2027 financial year.

The post 2 ASX dividend shares with yields above 7% appeared first on The Motley Fool Australia.

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