When I think about building wealth over the long term, I think the simple way to do it is to own great businesses for a very long time. Not trying to predict which market or sector will outperform next year, but making sure my portfolio is exposed to the parts of the global economy where most of the growth actually happens.

That’s why I think Vanguard MSCI Index International Shares ETF (ASX: VGS) has the potential to be a genuine wealth-generator for patient investors.

It solves Australia’s biggest investing problem

Australia is a fantastic place to live, but our share market is narrow. Financials and resources dominate, while sectors like global technology, healthcare, and advanced industrials are underrepresented.

The VGS ETF fixes that problem in one hit.

It provides exposure to approximately 1,300 stocks across 23 developed markets, including the US, Japan, the UK, Canada, France, and Switzerland. That means you’re not relying on a handful of Australian banks or miners to build wealth. You’re participating in the growth of the world’s biggest and most innovative economies.

For me, that global reach is not nice to have. It’s essential.

You’re buying the engines of global growth

One of the reasons this Vanguard ETF stands out is the quality of the businesses it owns.

Its largest holdings include tech companies like Nvidia, Apple, Microsoft, Amazon, and Alphabet, as well as big names such as LVMH Moet Hennessy Louis Vuitton, ASML, and HSBC. These are not speculative names. They are global leaders with enormous scale, deep competitive advantages, and balance sheets most companies can only dream of.

Importantly, some of these businesses sit at the heart of long-term structural trends like cloud computing, artificial intelligence, digital advertising, and global e-commerce. Owning them through the VGS ETF means you don’t have to guess which individual company will win next. You simply own a broad slice of the winners.

That’s a powerful position to be in over decades.

The track record backs it up

Long-term performance is never guaranteed, but the Vanguard MSCI Index International Shares ETF has demonstrated why global diversification matters.

Over the past 10 years, the ETF has delivered annual returns of just over 13%. Over five years, returns have been even stronger. Those numbers reflect not clever trading or market timing, but steady participation in global economic growth.

Why I think this Vanguard ETF can generate real wealth

Wealth generation rarely comes from doing complicated things. It usually comes from doing simple things consistently.

The VGS ETF offers low-cost access to global growth, exposure to world-class stocks, and diversification across markets that Australia simply doesn’t offer. Add regular contributions and time, and the compounding can become meaningful.

I don’t see this as a short-term trade. I see it as the kind of ETF you buy, keep adding to, and let quietly do the heavy lifting in the background.

Foolish Takeaway

I think Vanguard MSCI Index International Shares ETF has all the ingredients of a long-term wealth generator. Global diversification, exposure to the world’s best businesses, low costs, and a strong long-term track record.

It’s not exciting in the day-to-day sense. But for investors who care more about where their portfolio could be in 10, 20, or 30 years, that’s exactly the point.

The post Why this Vanguard ETF could be a wealth-generator appeared first on The Motley Fool Australia.

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• 10 most popular ASX ETFs on the market today
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• 3 Vanguard ETFs for smart investors to buy in February
• Why ASX ETFs are a good place to start for beginner investors

HSBC Holdings is an advertising partner of Motley Fool Money. 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 ASML, Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended HSBC Holdings. The Motley Fool Australia has recommended ASML, Alphabet, Amazon, Apple, Microsoft, Nvidia, 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.

The Beach Energy Ltd (ASX: BPT) share price is in focus today after the oil and gas producer reported a 32% drop in statutory net profit after tax to $150.2 million for the six months to 31 December 2025. Revenue slipped 1% to $981.7 million, as lower oil and liquids prices and volumes weighed on results, partially offset by stronger prices for produced gas and higher LNG cargo sales.

What did Beach Energy report?

• Sales revenue down 1% to $981.7 million
• Net profit after tax (NPAT) decreased 32% to $150.2 million
• Underlying NPAT dropped 8% to $219.0 million
• Gross profit fell 19% to $294.3 million
• Fully franked interim dividend declared at 1.0 cent per share (down from 3.0 cps)
• Production fell 7% to 9.5 million barrels of oil equivalent (MMboe)

What else do investors need to know?

Beach saw a significant increase in costs, with cost of sales up 10% to $745.7 million, mainly due to product inventory movements and higher third-party purchases and tolls linked to additional LNG cargoes. Other expenses also jumped, largely attributed to a $61.2 million exploration expense for the unsuccessful Hercules 1 well.

Strong realised gas prices provided some support, with the average realised gas price up 13% to $11.82 per gigajoule. The balance sheet remained steady, with net assets at $3.17 billion and cash rising to $235 million. The company paid a 6.0 cent final dividend and will pay a 1.0 cent interim dividend in March 2026.

What did Beach Energy management say?

Managing Director and CEO Brett Woods said:

Our steady financial footing and safe operational performance through a challenging half positions Beach for an active second half, particularly as Waitsia ramps up and offshore campaigns progress.

What’s next for Beach Energy?

Looking ahead, Beach Energy plans to ramp up gas production from the Waitsia plant and begin the second phase of the Equinox drilling program in the Otway and Bass Basins. The Western Flank’s 12-well oil campaign and a fresh 10-well exploration program are also set to continue through FY26.

The company reaffirmed FY26 full year guidance, targeting group production between 19.7 and 22.0 MMboe and capital expenditure of $675–775 million. Management also flagged further cost discipline and progress on regional project milestones.

Beach Energy share price snapshot

Over the past 12 months, Beach Energy shares have declined 17%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Beach Energy H1 FY26 earnings: Profit drops as costs rise and volumes slip appeared first on The Motley Fool Australia.

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The ASX tech share sector just had one of the worst days this decade. But, it doesn’t all need to be doom and gloom. I think it’s actually a great buying opportunity.

It’s true there has been a lot of pain.

The Xero Ltd (ASX: XRO) share price has dropped 25% in a month and more than 50% in six months.

The TechnologyOne Ltd (ASX: TNE) share price is down by 17% in the past month and 44% in the last six months.

The WiseTech Global Ltd (ASX: WTC) share price has fallen 22% in the last month and 55% in the past six months.

Other technology investments have also dropped in recent times, such as Global X Fang+ ETF (ASX: FANG) and Betashares Nasdaq 100 ETF (ASX: NDQ).

These businesses are the same companies they were a few months ago, yet the market is now valuing them at a much lower price.

Time to be greedy with ASX tech shares

One of the world’s greatest investors, Warren Buffett, has a number of very useful quotes to help think about times like this.

He said that we should be fearful when others are greedy and greedy when others are fearful. The market is certainly fearful about (ASX) tech shares at the moment.

I like his thoughts even more about comparing the share market to hamburgers when they’re on sale. Warren Buffett said:

To refer to a personal taste of mine, I’m going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the ‘Hallelujah Chorus’ in the Buffett household. When hamburgers go up in price, we weep. For most people, it’s the same with everything in life they will be buying — except stocks. When stocks go down and you can get more for your money, people don’t like them anymore.

These ASX tech shares, which investors have lauded as some of the best businesses on the ASX for years, are trading at share prices we’ve not seen for quite a while. This looks like a smart time to invest.

Yes, there are AI risks, but I’d say the lower valuations already take that into account. Plus, I don’t believe the lower share prices account for the fact that the businesses could work with AI and implement it in their business as a positive, rather than it being a direct challenge to them.

The leading ASX tech shares have built up an economic moat, trust with their clients and strong offerings. I don’t think those are going away any time soon.

When I’m next able to invest, I’m planning to put some money into some of these names I’ve mentioned, particularly TechnologyOne. I’ve been hoping for valuations like this to invest – but the declines don’t happen for no reason. We have to invest bravely.

The post Why I think this ASX tech share sell-off is a great time to invest appeared first on The Motley Fool Australia.

More reading

• 3 Aussie stocks to buy and hold forever
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• 3 Australian stocks that are my best buy and holds for 2026
• Xero crashes 14% to a multi-year low. What on earth is going on?

Motley Fool contributor Tristan Harrison has positions in Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF, Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF, WiseTech Global, and Xero. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are looking for some ASX dividend shares for your income portfolio, then it could be worth considering the four named below.

Here’s why they could be top options for income investors in February:

Harvey Norman Holdings Ltd (ASX: HVN)

The first ASX dividend share worth considering is retail giant Harvey Norman.

Unlike many discretionary retailers, Harvey Norman has entered FY 2026 with solid momentum. In its most recent trading update, the company reported continued strong aggregated sales growth of 9.1% across its global store network.

This strength reflects Harvey Norman’s diversified footprint across Australia and international markets, as well as its exposure to categories such as furniture, bedding, and technology that can benefit from housing activity and replacement cycles. This bodes well for dividends in FY 2026.

Rural Funds Group (ASX: RFF)

Rural Funds Group offers a different source of income.

This ASX dividend share owns agricultural assets such as farms and vineyards that are leased to operators under long-term agreements. This creates relatively predictable rental income, often with built-in escalation clauses.

For income investors, Rural Funds provides exposure to real assets that are less tied to day-to-day consumer sentiment. While agriculture has its own risks, long lease terms help support steady distributions over time.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share that could be a buy for income investors is Super Retail.

The owner of brands such as Supercheap Auto and Rebel has seen earnings pressure as consumer spending has softened. However, these brands remain well established, and parts of the business benefit from non-discretionary demand, particularly in automotive.

If trading conditions normalise, Super Retail Group has the operating leverage to lift profits and dividends from current levels. This could make it a good option for patient income investors.

Universal Store Holdings Ltd (ASX: UNI)

A final ASX dividend share to consider buying this month is Universal Store.

It is the youth fashion retailer behind the Universal Store, Perfect Stranger, and Thrills brands.

Despite operating in a challenging retail environment, Universal Store has continued to generate strong sales, profits, and cash flows. Its multi-brand strategy, growing private-label offering, and store network expansion give it significant growth potential over the next decade.

Its dividends may not grow smoothly every year, but the company has shown a willingness to return capital to shareholders when conditions allow. For investors comfortable with retail exposure, Universal Store offers a combination of income and growth potential.

The post Why these ASX dividend shares could be top picks for income investors in February appeared first on The Motley Fool Australia.

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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 positions in and has recommended Super Retail Group. The Motley Fool Australia has positions in and has recommended Harvey Norman, Rural Funds Group, and Super Retail Group. 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.

When markets are choppy, ASX dividend shares can still offer investors a steady stream of income.

Instead of relying only on share price gains, dividend stocks pay cash into your account simply for holding them. That can make a real difference over time, especially when dividends are reliable and well supported.

Here are 3 ASX dividend stars that currently offer attractive income for investors looking beyond the usual ‘big four’ bank shares.

Woodside Energy Group Ltd (ASX: WDS)

Woodside is one of Australia’s largest oil and gas producers and a heavyweight in the ASX energy sector.

The company generates strong cash flow from its LNG and energy operations, allowing it to pay generous dividends to shareholders.

At current prices, Woodside is offering a dividend yield of roughly 6.5%, depending on market movements. Most recent dividends have been fully franked, which adds extra value for Australian investors at tax time.

Woodside’s dividend policy aims to return a large portion of profits to shareholders. While energy prices can fluctuate, Woodside’s scale and diversified asset base help smooth earnings across the cycle.

As a result, Woodside remains one of the strongest high-yield options on the ASX outside the banking sector.

Dicker Data Ltd (ASX: DDR)

Dicker Data operates in a very different space, supplying IT hardware, software and cloud solutions to businesses across Australia and New Zealand.

What makes Dicker Data stand out is its long track record of paying dividends. Since listing, the company has consistently returned profits to shareholders and built a reputation for reliability.

At present, Dicker Data offers a dividend yield of around 5.5%, supported by quarterly fully franked dividend payments throughout the year.

Unlike many technology companies, Dicker Data is profitable, cash-generative and conservative with debt, helping support dividends even when technology spending slows.

This positions Dicker Data as a strong income option outside the mining and energy sectors.

BlueScope Steel Ltd (ASX: BSL)

BlueScope Steel is one of Australia’s largest steel producers, supplying construction and infrastructure markets both locally and offshore.

Its regular dividend yield is lower than the other two stocks on this list. However, BlueScope has recently declared a large special dividend, which has lifted shareholder returns.

When special dividends are included, BlueScope’s effective yield for the year moves above 5%, making it attractive for income investors who are comfortable with some cyclicality.

Steel prices and demand can fluctuate, so BlueScope’s dividends are not as predictable from year to year. That said, the company’s strong balance sheet gives it flexibility to return excess cash when conditions allow.

Foolish takeaway

These 3 stocks show there is still solid income available on the ASX.

Woodside offers attractive income backed by energy cash flows. Dicker Data provides consistency and reliability. BlueScope adds the potential for boosted returns through special dividends.

High yields can be appealing, but the best income comes from businesses that can keep paying through good times and bad.

The post Here’s 3 ASX dividend stars yielding over 5% 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Generating passive income does not have to mean managing a long list of individual shares.

For many investors, exchange traded funds (ETFs) can provide a simpler way to access diversified income streams, with regular distributions and less reliance on the fortunes of any single company.

As we head through 2026, there are several ASX ETFs that stand out for income-focused investors. Here are three that could be worth considering for passive income this year.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first ASX ETF to consider for passive income is the Vanguard Australian Shares High Yield ETF.

This ETF focuses on Australian shares with above-average dividend yields. Its portfolio is tilted toward banks, miners, and other mature businesses that generate strong cash flows and regularly return capital to shareholders.

Holdings include companies such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and Telstra Group Ltd (ASX: TLS). These businesses are not immune to cycles, but they have long histories of paying dividends.

This ultimately means that the Vanguard Australian Shares High Yield ETF offers a straightforward way to access the Australian market’s dividend culture, with the added benefit of franking credits boosting after-tax returns for many investors.

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

Another ASX ETF that could suit passive income investors is the Betashares S&P Australian Shares High Yield ETF.

This fund also targets high-yield Australian shares, but it takes a slightly different approach. It seeks to improve on traditional high-dividend strategies by aiming to screen out potential dividend traps.

This includes excluding shares that are projected to pay unsustainably high dividend yields, as well as companies that exhibit high levels of volatility relative to their forecast dividend payout.

The ASX ETF includes holdings such as Woodside Energy Group Ltd (ASX: WDS), Fortescue Ltd (ASX: FMG), and Suncorp Group Ltd (ASX: SUN).

It currently trades with an annualised dividend yield of 4.4% and was recently recommended by analysts at Betashares.

Betashares Global Royalties ETF (ASX: ROYL)

A final ASX ETF to consider for passive income in 2026 is the Betashares Global Royalties ETF.

This fund provides exposure to global shares that earn royalties from intellectual property, natural resources, and infrastructure-like assets. This includes businesses involved in music royalties, energy royalties, and specialised licensing arrangements.

Holdings include companies such as Franco-Nevada (NYSE: FNV) and Universal Music Group. These businesses often generate relatively stable cash flows because royalties are earned regardless of who operates the underlying asset.

At present, it trades with a 5.6% trailing dividend yield. It was also recently recommended to income investors by Betashares.

The post 3 ASX ETFs for passive income in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woodside Energy 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 positions in and has recommended Telstra Group. 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.

I’m always banging the drum that ASX ETF investing doesn’t have to come with minimal upside. 

With the rise of thematic funds, investors can now easily target sectors and niche areas of the market. 

While investors need to be conscious of overexposure, capturing tailwinds in these sectors can lead to big gains. 

Already in 2026 there have been funds that have shot ahead of benchmark indexes. 

For context, the S&P/ASX 200 Index (ASX: XJO) is up 2.29% year to date. 

That’s nothing to sneeze at. 

However these three thematic ASX ETFs have flown significantly higher so far this year. 

iShares Msci South Korea ETF (ASX: IKO)

As the name suggests, this ASX ETF provides exposure to large and mid-sized companies in South Korea. 

According to iShares, The fund aims to provide investors with the performance of the MSCI Korea 25/50 Index, before fees and expenses. 

The index is designed to measure the performance of Korean large and mid-capitalisation companies. 

In 2026, this ASX ETF is already up an impressive 21%. 

The South Korean equity market is a major Asian economy with companies across technology, manufacturing, consumer and financial sectors.

Technology and manufacturing in particular are underrepresented here in Australia. 

Furthermore, South Korea plays an important role in global production of semiconductors, electronics and tech – sectors often tied to innovation and long‑term growth.

This fund’s two largest holdings are Samsung Electronics and SK Hynix which make up approximately 44% of the fund. 

Global X Copper Miners ETF (ASX: WIRE)

This ASX ETF provides access to a global basket of copper miners which stand to benefit from being a key part of the value chain facilitating growth in major areas of innovation such as technology, infrastructure and clean energy.

More specifically, copper is essential for electric vehicles (EVs), renewable energy, and electronics. As the world shifts toward clean energy and electrification, demand for copper is expected to grow significantly.

The global copper price has been on a steady incline in the last year thanks to this demand.

This ASX ETF has certainly captured these tailwinds, rising more than 19% year to date and 110.40% over the last 12 months. 

Global X Green Metal Miners ETF (ASX: GMTL) 

Another thematic ASX ETF steaming ahead this year is the Global X Green Metals Miners fund. 

It has captured the critical minerals rally, rising more than 100% in the last 12 months and already 11.23% in 2026. 

It provides exposure to global companies which produce critical metals for clean energy infrastructure and technologies, including lithium, copper, nickel and cobalt.

The post These ASX ETFs are already up between 11% and 21% in 2026! appeared first on The Motley Fool Australia.

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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 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 National Australia Bank Ltd (ASX: NAB) share price has recently been named as the top pick among the major ASX bank shares by UBS.

UBS recently said in a note that NAB is its top pick, followed by Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ), and Commonwealth Bank of Australia (ASX: CBA).

However, despite noting that the ASX bank share sector delivered a mid-teen total shareholder return (TSR) for investors in 2025 and that it’s not expecting positive returns for the sector in 2026, UBS sees the NAB share price as a pleasing opportunity that could deliver a double-digit return.

Why is this a good time to invest?

UBS identified “select opportunities” in certain names, which include NAB. In the note, it upgraded NAB from a neutral rating to a buy.

The broker thinks there’s potential for NAB’s earnings per share (EPS) to rise with the Reserve Bank of Australia (RBA) cash interest rate forecast to increase by 50 basis points in 2026.

The RBA just hiked by 25 basis points, and UBS is suggesting there could be another one later this year.

Those rate hikes could contribute to the NAB net interest margin (NIM) and revenue performing better than expected by other analysts across the market. The NIM measures a bank’s lending profitability, including the loan rate and the cost of funding those loans (with savings accounts, term deposits, transaction accounts, and so on).

The broker also suggested that loan growth could be stronger than the market is expecting:

Core earnings may also benefit from higher-than-expected loan growth, while banks are actively managing persistent cost pressures, which are ~+6.0% on an underlying basis.

UBS also noted that it upgraded its view on the NAB share price because of structural growth in business banking. Almost half of NAB’s valuation, in the broker’s view, is tied to a “market-leading” business and private banking segment, which has defended its profitability and supports group return on tangible equity (ROTE) of around 12.5%.

Competition and cost inflation

UBS did warn that competition could be a factor during the year, while certain costs may increase during the period. It said:

We expect competition in the Aussie banking sector to grow further in 2026, particularly in managing deposits, especially if rates rise. Controlling costs… will be critical, with tech spend considered essential. At the same time, wage inflation and shifts in workforce composition are driving staff expenses higher (+5.0%).

NAB share price target

UBS currently has a price target of $47 on the ASX bank share. That implies a possible 11% rise from where it is today over the next 12 months. Plus, the dividends can also be added in to that possible return – this is up to the discretion of the board of directors.

Overall, UBS sees a positive outlook for the NAB share price.

The post The NAB share price is a buy after the RBA rate hike – UBS 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 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 ASX share market is an excellent place to find investments that can provide monthly passive income, whether that’s $50 per month, $500 per month or even more.

Australian companies are capable of providing investors with dividends (and franking credits), unlocking a pleasing level of income for those who want it.

Every business that pays a dividend has a dividend yield, so we can work out how much we’d need to invest to unlock a desired level of income, such as $500 per month or $6,000 per year.

How to generate $500 of monthly income

Receiving $6,000 of annual passive income is a worthy goal – it’s a sizeable level of cash each year.

How much money it would require essentially depends on the dividend yield of the portfolio.

For example, if the portfolio had a 6% dividend yield, then it would take a portfolio value of $100,000 to generate $6,000 of annual passive income.

With a portfolio dividend yield of 5%, the required portfolio value is $120,000.

A portfolio dividend yield of 4% would mean a portfolio value of $150,000 is needed.

If the portfolio dividend yield was 3%, then you’re talking about needing a portfolio value of $200,000.

Clearly, all of those figures would require quite a lot of investment cash.

It’s important to note that the higher dividend yields may not be as ‘safe’ as lower dividend yields.

Additionally, I wouldn’t expect as much growth from high-yielding shares compared to lower-yielding ones over time. This is because a high yield indicates a high dividend payout ratio, with reduced cash held by the business for growth investing. A lower price/earnings (P/E) ratio also suggests the the market isn’t assigning much value to growth opportunities.

Benefit from compounding

We don’t need to come up with all of that cash ourselves to invest for the passive income.

Aussies can regularly invest into the ASX share market and let compounding grow the portfolio balance for you. The longer you let your money grow, the less you need to invest yourself. Names like MFF Capital Investments Ltd (ASX: MFF) and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) springs to mind as ideas for this tactic.

For example, if someone were to invest $1,000 per month and it returned an average of 10% per year (the historical long-term average return of the ASX share market), it would grow into $100,000 after seven years, $150,000 after nine years and $200,000 within 11 years.

That shows that an investor starting with nothing could start generating useful passive income for their life fairly quickly. Today is a great day to get started.

The post Passive income: How much do you need to invest to make $500 per month? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments 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 Australia has recommended Mff Capital Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you told me I could only buy three ASX stocks in 2026, it would be an incredibly tough call to make.

But I think I have managed to narrow it down to the high-quality stocks in this article that I believe offer value for money and strong long-term capital growth potential. 

Pro Medicus Ltd (ASX: PME)

Pro Medicus is a textbook example of a high-quality Australian growth company that has built a global leadership position.

This ASX stock’s Visage platform sits at the premium end of medical imaging software, particularly in the US hospital market. What stands out to me is how deeply embedded the product becomes once installed. Switching costs are high, contracts are long-term, and customers tend to expand their usage over time.

The addressable market is very large relative to Pro Medicus’ current penetration, especially across different medical specialties and geographies. That gives it a long growth runway, even after years of strong execution.

It’s not a cheap stock on traditional metrics, but following a very sharp decline in recent months, I think it looks very attractive. Further, if execution continues, I think Pro Medicus can keep compounding for many years.

REA Group Ltd (ASX: REA)

REA Group is one of those ASX stocks that feels almost boring until you step back and look at how dominant it really is.

Realestate.com.au is the default destination for property search in Australia. That position gives REA enormous pricing power and a data advantage that competitors struggle to match. Agents don’t just advertise on the platform. They rely on it.

What I like most is that REA continues to innovate within that dominance. New products, better data tools, and premium listing formats allow it to grow revenue faster than transaction volumes over time.

Property cycles come and go, but REA’s platform strength means it tends to emerge stronger after each one. That durability is exactly what I want if I’m only picking a handful of stocks.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is a stock that offers consistency, capital discipline, and resilience.

The group owns a collection of high-quality businesses, including Bunnings and Kmart, that generate strong cash flows across economic cycles. That cash flow gives management flexibility. They can reinvest, return capital to shareholders, or reshape the portfolio when opportunities arise.

What gives me confidence in Wesfarmers is its long track record of rational decision-making. It doesn’t chase trends. It focuses on returns. Over time, that approach has quietly compounded shareholder value.

If markets get more volatile in 2026, this is exactly the kind of anchor I’d want in a portfolio.

Foolish takeaway

If I could only buy three stocks in 2026, I’d want a mix of world-class growth, platform dominance, and defensive strength.

Pro Medicus offers global healthcare growth. REA Group brings unmatched digital dominance in property. Wesfarmers provides stability and disciplined capital allocation.

They’re different businesses, solving different problems, but they share one important trait. They’ve already proven they can execute. And if I’m narrowing my choices, that matters more than anything else.

The post If I could only buy 3 stocks in 2026, I’d pick these 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’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.