The team at Bell Potter has identified one ASX 200 stock that it believes could rise very strongly from current levels.

Let’s find out which stock it is recommending to clients this week.

Which ASX 200 stock?

The stock that Bell Potter thinks is dirt cheap is Nufarm Ltd (ASX: NUF).

It is a leading supplier of off-patent agricultural chemicals, seeds, and seed treatments globally. Bell Potter notes that it has a marketing presence in over 30 countries and sales in over 100 countries.

The broker believes that recent datapoints are favourable ahead of peak sales windows. It said:

Bulk feed grade oil ex-Peru has climbed US$1,000/t in recent weeks. Pricing for Peruvian feed grade oil is now at US$4,400-4,500/t well above the US$2,600/t level from a year ago. Importantly, these moves have occurred prior to the announcement of the Peruvian anchovy catch quote of 1.91mt for the upcoming Northeast season, which is down -36% YoY and to a 3-year low (from 1.91mt to 3.0mt in 2025).

At the very least we would see the rising price indicators for omega-3 oils and weaker supply providing a supportive backdrop for NUF to sell through existing inventory (US$90m) and more likely to drive an improved operating performance.

In addition, crop monitoring reports have been positive, which bodes well for demand for Nufarm’s products. It adds:

Europe: The most recent JRC Mars crop monitoring report highlighted that winter crops are restarting vegetative growth under favourable conditions, supported by adequate soil moisture and mild late-winter temperatures in many regions. COCEREAL forecasts point to a +0.2% YoY uplift in acreage, with a rotation towards oilseeds (+3.1% YoY) from grain (-0.5% YoY).

North America: The planting intentions report highlighted a modest YoY decline in CY26 (down -0.7% YoY) with a rotation from wheat and corn to Soybean. Canadian plantings were up modestly (up +0.4% YoY), with a rotation to barley and canola.

Big potential returns

According to the note, the broker has retained its buy rating and $3.60 price target on the ASX 200 stock.

Based on its current share price of $2.23, this implies potential upside of over 60% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

We are now beginning to enter the most material selling windows for NUF and the majority of markets look supportive of reasonable demand levels of crop protection products. In addition, upward movements in active ingredients (glyphosate +14% in recent weeks) and omega-3 indicators all look to support a reasonable pricing environment.

The potential for a faster selling window and restart of omega-3 oil sales have the scope to assist the deleveraging of the NUF balance sheet which would likely be a positive share price catalyst.

The post Guess which ASX 200 stock might be dirt cheap and could rise 60%? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Top brokers name 3 ASX shares to buy next week
• Brokers name 3 ASX shares to buy right now
• A major long-term deal is lifting this ASX stock today

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.

The ASX stock Shaver Shop Group Ltd (ASX: SSG) may not seem like a leading choice for passive income, but I’m going to show why the business should be seen as an attractive dark horse for dividends.

It has a large dividend yield and a track record for increasing payouts, which is rare for an ASX retail share.

The business could provide an investor with an annual income of $1,000 or more with a large enough investment. Let’s look at the income potential of one of the leading Australian retailers of shaving products.

Great dividend potential

Pleasingly, the business has never given investors an annual dividend cut, which is a very pleasing record of consistency.

In fact, since it started paying a dividend in FY17, FY24 was the only year that it didn’t increase its payout (so far).

Its latest two declared half-year dividends came to 10.3 cents per share, which currently translates into a grossed-up dividend yield of 10.3%, including franking credits, at the time of writing.

In the FY26 half-year result, the business decided to maintain its interim dividend at 4.8 cents per share.

If the business maintained its payout in FY26 at 10.3 cents per share, it would be a great result for shareholders because that would still represent a double-digit dividend yield, including franking credits.

Making $100 per month of passive income

The business doesn’t pay a dividend every month, so we can think of the goal as an annual total and then divide that by 12.

$100 per month would translate into an annual total of $1,200.

To receive $1,200 (excluding franking credits) with an annual dividend per share of 10.3 cents, an investor would need 11,651 shares of the ASX stock.

Why it could be a good ASX stock investment for the long-term

The business has built up an impressive position and continues to grow.

Despite the challenging trading conditions, in the first six months of FY26, total sales grew 2.2% to $128.6 million, operating profit (EBIT) increased 2.5% to $18.1 million and net profit grew 1.5% to $12.2 million.

Total sales growth started strongly in the second half of FY26 to 22 February 2026, with overall growth of 3.8% and online sales growth of 12.7%.

I’m expecting the ASX stock to grow its bottom line and profit margins thanks to a slowly growing store count, more online sales, exclusive products with certain brands and growing its own Transform-U brand.

According to the projection on CMC Invest, the Shaver Shop share price is valued at just 12x FY26’s estimated earnings.

The post I’d buy 11,651 shares of this ASX stock to aim for $100 a month of passive income appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares with yields above 7%
• These ASX dividend shares pay 7% and could jump 25%
• 2 ASX shares with dividend yields above 8%

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 Shaver Shop Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form and raced higher following the Easter break. The benchmark index rose 1.75% to 8,728.8 points.

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

ASX 200 to rise

The Australian share market looks set to rise again on Wednesday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.2% higher. In the United States, the Dow Jones dropped 0.2%, but the S&P 500 rose 0.1% and the Nasdaq climbed 0.1%.

Buy Telix shares

The team at Bell Potter thinks investors should be buying Telix Pharmaceuticals Ltd (ASX: TLX) shares following its first-quarter sales update. In response to the update, the broker has retained its buy rating and $19.00 price target on Telix’s shares. It said: “The company continues to make good progress on multiple pipeline products. Short term news flow includes acceptance by the FDA of the resubmitted NDA for Pixclara and the amendment to the IND for TLX591 (prostate cancer Tx). We maintain our Buy rating. FY26 EBITDA is increased by ~US$21m to US$55.3m.”

Oil prices fall

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a subdued session after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 1.7% to US$110.41 a barrel and the Brent crude oil price is down 3.8% to US$105.27 a barrel. This was driven by optimism that a US-Iran peace deal could be on the way.

Gold price rises

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session on Wednesday after the gold price pushed higher overnight. According to CNBC, the gold futures price is up 1.1% to US$4,734.4 an ounce. Traders have been buying gold in response to Donald Trump’s comments on Iran.

Dividend payday

A number of ASX 200 shares will be rewarding their shareholders with their latest dividends on Wednesday. This includes financial technology company Iress Ltd (ASX: IRE), gold miners Regis Resources Ltd (ASX: RRL) and Vault Minerals Ltd (ASX: VAU), media giant News Corporation (ASX: NWS), and private health insurer NIB Holdings Limited (ASX: NHF). The latter is paying a fully franked 13 cents per share interim dividend today.

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

More reading

• Why rebounding Telix shares could still rise 40%
• Why Bank of Queensland, Guzman Y Gomez, NextDC, and Telix shares are racing higher today
• Are Telix shares a buy after flying 40% higher in March?
• ASX 200 surging as investors look beyond Iran war
• Why is everyone talking about Telix, Bank of Queensland and NextDC shares today?

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

ASX healthcare stocks have taken a hit lately, but that could be setting up opportunity.

Two of the ASX’s biggest names in the sector are under pressure, with CSL Ltd (ASX: CSL) down 33% over the past six months and ResMed Inc (ASX: RMD) sliding 20% over the same period at the time of writing.

So, are these high-quality names primed for a comeback?

CSL: Global leader in plasma therapies

CSL has fallen out of favour, but the underlying business still looks incredibly strong.

This is a global leader in plasma therapies and vaccines, supplying critical treatments for chronic and rare diseases. Demand for its products is highly resilient — patients need them regardless of economic conditions.

That gives the $67 billion ASX healthcare stock a defensive edge, backed by recurring revenue and strong global demand.

Recent results have been softer, with margin pressure, restructuring costs, and policy changes weighing on performance. That’s played a big role in the share price decline.

But there are signs of recovery. Plasma collections are improving, margins are stabilising, and its vaccine business, Seqirus, continues to diversify earnings. This looks more like a reset than a structural decline.

The main risks? Ongoing margin pressure, currency headwinds, and any delays in earnings recovery.

Still, analysts remain firmly in the corner of the ASX healthcare stock.

Broker sentiment is broadly positive, with most maintaining buy or outperform ratings. The average 12-month price target sits around $214.00 — implying 54% upside.

ResMed: Market leader in sleep apnea

ResMed has also been caught in the recent healthcare and tech sell-off, but its long-term story remains compelling.

This ASX healthcare stock is a global leader in sleep apnea devices and digital health solutions. Its products improve patient outcomes and are increasingly integrated with cloud-based platforms — creating a sticky, recurring revenue model.

A major growth driver is rising awareness and diagnosis of sleep disorders, alongside expansion in digital health and remote monitoring.

So why the sell-off? Concerns around competition, particularly from weight-loss drugs potentially reducing sleep apnea cases, have weighed on sentiment. Like CSL, it has also been hit by broader market rotation away from growth stocks.

That said, the business continues to deliver solid performance and innovation.

The risks include competitive pressures, regulatory changes, and any slowdown in patient growth.

But analysts remain largely upbeat on the ASX healthcare stock.

The average price target sits at $307.95, suggesting upside of around 37%. The most bullish forecasts go even further, tipping the stock could reach $371.80, implying gains of up to 66%.

Foolish Takeaway

CSL and ResMed have both been sold off, but their core businesses remain strong.

If sentiment shifts and earnings momentum improves, these ASX healthcare stocks could be well positioned to lead the next market surge.

The post 2 classy ASX healthcare stocks to buy before the next market surge appeared first on The Motley Fool Australia.

More reading

• New to investing? 3 ASX ETFs to set and forget for 10 years
• ASX 200 sector leaders to buy amid today’s market rally
• What’s the impact of US tariffs on Aussie drugmakers CSL and Mayne Pharma?
• Buy, hold, sell: CSL, QBE, and Pro Medicus shares
• 3 high-quality ASX shares I’d buy and hold for the long term

Motley Fool contributor Marc Van Dinther 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 CSL and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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.

Telix Pharmaceuticals Ltd (ASX: TLX) shares have been strong performers over the past month.

Since this time in March, the radiopharmaceuticals company’s shares are up over 30%.

As a comparison, the ASX 200 index is up 1.5% over the same period.

The good news is that the rebound in the Telix share price may not be over according to analysts at Bell Potter.

Let’s see what they are saying about the company behind Illuccix and Gozellix products.

What is the broker saying?

Bell Potter highlights that Telix has released a first-quarter sales update which revealed that Illuccix continues to win market share. It said:

TLX reported a pleasing jump in 1Q26 revenues to $US230m driven by a 16% sequential quarter increase in PSMA imaging revenues to US$186m. This was the result the company had been seeking in 4Q25 following the refresh on pass through pricing (for Gozellix) that had come into effect from 1 October.

For the March quarter, US dose volume increased 5%, implying that TLX successfully converted more of its hospital customer base to the higher reimbursed Gozellix product which services the Medicare fee for service market in the US, while Illuccix continues to be ordered by other clients where the higher reimbursement is not relevant due to the clientele mix.

The broker was also pleased to see Telix reaffirm its guidance for FY 2026. It believes this guidance is achievable based on its positive start to the year, with PSMA revenues comfortably ahead of consensus expectations. It adds:

1Q26 PSMA revenues were ~7% ahead of consensus. FY26 revenue guidance for US$950m – US$970m is re-affirmed. The bottom end of the guidance requires TLX to achieve avg qtly revenues of US$240m – not unreasonable given the short term competitive outlook and strong 1Q26 top line result.

Telix shares tipped to rise

According to the note, the broker has retained its buy rating and $19.00 price target on Telix shares.

Based on its current share price of $13.58, this implies potential upside of 40% for investors between now and this time next year.

Commenting on its buy recommendation, Bell Potter said:

The company continues to make good progress on multiple pipeline products. Short term news flow includes acceptance by the FDA of the resubmitted NDA for Pixclara and the amendment to the IND for TLX591 (prostate cancer Tx). We maintain our Buy rating. FY26 EBITDA is increased by ~US$21m to US$55.3m.

The post Why rebounding Telix shares could still rise 40% appeared first on The Motley Fool Australia.

More reading

• Why Bank of Queensland, Guzman Y Gomez, NextDC, and Telix shares are racing higher today
• Are Telix shares a buy after flying 40% higher in March?
• Why is everyone talking about Telix, Bank of Queensland and NextDC shares today?
• Why are Telix shares jumping 8% today?
• Telix Pharmaceuticals Q1 2026: Revenue growth, guidance reaffirmed

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

Telstra Group Ltd (ASX: TLS) shares have been on a tear.

Around the start of the Iran conflict, the telco quietly hit a new 52-week high, levels not seen since early 2017. Then it pushed even higher, reaching $5.44.

It has since cooled slightly to around $5.38 at the time of writing, but the gains are still impressive. Telstra shares are up more than 10% in 2026 and nearly 30% over the past 12 months.

That raises the obvious question: is there more upside ahead?

Price hikes as key driver

Let’s first have a look at the strengths. Telstra is Australia’s dominant telecommunications provider, with unmatched scale in mobile and infrastructure. Its network leadership gives it pricing power, something it’s actively using.

Telstra is a classic defensive play. Connectivity is now essential, so demand stays strong regardless of inflation or cost-of-living pressures.

Recent price hikes on mobile plans are a key catalyst.

Higher prices, combined with relatively sticky customers, should translate into stronger revenue and margins. In a world of rising costs, that’s a powerful advantage.

Popular dividend share

There’s also the income appeal. Telstra shares remain a favourite for dividend investors, supported by steady cash flow and a mature, defensive business model. In fact, its dividend payout ratio is close to 100% of its earnings. 

Telstra pays investors two dividends per year. Last month, investors were paid an interim dividend of 10.5 cents, 90.48% franked. Telstra has forecast to pay a 20-cent dividend for FY26.

That combination of income and stability is attracting investors in volatile markets.

Incremental growth, fierce competition

But there are risks. Growth is still modest.

Telstra isn’t a high-growth tech company, it’s a mature business. That means upside for Telstra shares is often incremental rather than explosive.

Competition is another factor.

Rivals continue to challenge pricing and market share, particularly in mobile and broadband. Any misstep could quickly erode Telstra’s edge.

And while price increases are positive for margins, there’s always a limit. Push too far, and customers may start looking elsewhere.

So what do analysts think?

Analysts at Macquarie Group Ltd (ASX: MQG) are bullish. The broker has an outperform rating on Telstra shares and believes the recent price increases will support both earnings and dividends.

It has set a 12-month price target of $5.64, which points to a modest 5% upside at current price levels.

Foolish Takeaway

Telstra shares have already delivered strong gains, but the story isn’t over.

With pricing power, reliable income, and defensive appeal, the telco still has room to climb. Just don’t expect fireworks — this is a steady grinder, not a rocket.

The post How high can Telstra shares really climb from here? appeared first on The Motley Fool Australia.

More reading

• New to investing? 3 ASX ETFs to set and forget for 10 years
• How much would I need to invest in ASX shares to earn $1,000 in passive income every month?
• $8,000 invested in Telstra shares 1 month ago is now worth…
• The reliable ASX dividend shares I’d buy with $10,000
• How to build a million-dollar ASX share portfolio from zero

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

For investors chasing retirement income, the sweet spot is finding ASX dividend shares that combine reliable payouts with sensible valuations.

A sky-high yield alone can be a trap. The better strategy is to focus on companies with defensive cash flows, strong market positions, and dividend yields above 5%.

Right now, three ASX dividend shares stand out.

APA Group Ltd (ASX: APA)

The first is APA Group, which managed to climb to a new multi-year high on Tuesday.

In afternoon trade, the APA share price was up 1.3% to $9.99, after touching $10.00 in morning trade, its highest level since July 2023.That puts the ASX dividend share up about 30% over 12 months, easily beating the S&P/ASX 200 Index (ASX: XJO).

The energy infrastructure giant currently offers a dividend yield of roughly 6.1%, with annual distributions of 57 cents per share. 

APA owns critical gas pipelines, electricity transmission assets, and renewable infrastructure across Australia. These assets are difficult to replicate, highly regulated, and supported by long-term contracts. That helps make cash flows more predictable than most industrial businesses.

That reliability is exactly what income-focused investors want in retirement.

ANZ Group Holdings Ltd (ASX: ANZ)

The second ASX dividend share is ANZ Group, which is trading at $37.24 at the time of writing.

Australia’s major banks remain among the best dividend machines on the ASX, and ANZ continues to screen well for yield and valuation. While it may not offer the explosive upside of growth shares, it combines a solid dividend stream with a business model built around recurring lending income.

According to CommSec, the bank is expected to pay partially franked dividends of $1.68 per share in FY26 and $1.72 per share in FY27. That puts its forward dividend yield at roughly 4.5% for FY26 and 4.6% for FY27.

With interest rates likely to stay higher than the ultra-low levels of the past decade, bank margins should remain supportive of earnings, helping ANZ continue to reward shareholders.

Spark New Zealand Ltd (ASX: SPK)

The third and perhaps more contrarian option is Spark New Zealand. Its dividend yield is currently sitting near a huge 11.3% on ASX pricing. 

That sort of yield naturally comes with more risk, but Spark’s defensive telco operations and recurring subscription revenue make this ASX dividend share worth a closer look for investors comfortable with some uncertainty.

The market is clearly pricing in concerns around dividend sustainability, which is why I would rank it behind APA and ANZ for conservative retirement portfolios.

Still, if management stabilises earnings, today’s valuation could look very attractive in hindsight.

Foolish Takeaway

If I had to choose just one best blend of value and income, APA Group would be my top ASX 200 retirement pick today.

Its combination of infrastructure-style earnings, a 6%-plus yield, and essential energy assets gives it the kind of resilience that can help retirees sleep well at night, while still collecting a meaningful passive income stream.

The post 3 top ASX dividend shares for retirement income in 2026 appeared first on The Motley Fool Australia.

More reading

• How much would I need to invest in ASX shares to earn $1,000 in passive income every month?
• Why this reliable ASX dividend stock just climbed to a fresh multi-year high
• The reliable ASX dividend shares I’d buy with $10,000
• Buy, hold, sell: ANZ, Breville, and Macquarie shares
• 3 ASX defensive shares to buy in uncertain markets

Motley Fool contributor Marc Van Dinther 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 Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building a retirement portfolio is really about shifting priorities.

Income becomes more important, volatility matters more, and the focus tends to move toward businesses that can deliver steady returns rather than rapid growth.

In that context, I would be looking for companies with reliable cash flow, essential services, and a clear ability to keep paying dividends over time.

With that in mind, these are three ASX dividend stocks I would consider for a retirement-focused portfolio.

Woolworths Group Ltd (ASX: WOW)

Woolworths is one of the most straightforward defensive businesses on the ASX.

It operates in a sector that people rely on every day. Grocery spending tends to remain relatively stable, even during economic slowdowns, which helps support consistent revenue.

What I like most is the predictability.

Woolworths generates steady earnings, which underpin its ability to pay regular, fully franked dividends. That kind of reliability is important when you are relying on income.

There is also a modest growth element.

The company continues to invest in its digital capability, which could help improve margins over time.

For a retirement portfolio, I think Woolworths offers a solid foundation.

Transurban Group (ASX: TCL)

Transurban brings infrastructure exposure into the mix.

Its toll roads are long-life assets that generate recurring revenue from everyday usage. People still commute, travel, and transport goods regardless of short-term economic conditions.

What stands out to me is the visibility of cash flows. Many of its concessions run for decades, and tolls are often linked to inflation. That provides a level of predictability that I think is valuable for income investors.

Distributions have also shown a pattern of steady growth over time.

For me, Transurban offers a combination of income today and the potential for gradual increases in that income over the years.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT adds another layer of income, but with a slightly different angle.

It focuses on large-format retail centres anchored by essential services such as supermarkets like Woolies, healthcare, and everyday goods.

That tenant mix is important.

It means the properties are supported by businesses that people continue to use regularly, which can help underpin rental income.

I also like the relatively high distribution yield that REITs like this can offer.

Of course, property trusts can be sensitive to interest rates, and that is something to keep in mind. But over time, I think assets tied to daily needs can provide stable income.

Foolish takeaway

If I were building a retirement portfolio, I would be aiming for a balance of stability, income, and modest growth.

I think Woolworths, Transurban, and HomeCo Daily Needs REIT provide this and have characteristics that can support a reliable income stream over time.

The post The ASX dividend stocks I’d buy for a retirement portfolio appeared first on The Motley Fool Australia.

More reading

• An ASX dividend stock I’d hold no matter what
• How did these ASX defensive shares hold up in March?
• Woolworths’ $37 share price is near an all-time high, so why am I going to buy some as soon as possible?
• 2 defensive ASX dividend stocks for reliable income
• Here are the top 10 ASX 200 shares today

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

ASX ETFs make it easy to start investing without picking individual stocks.

Instead of guessing which companies will win, you can build a diversified, low-maintenance portfolio in minutes. For beginners, that’s a powerful way to invest with confidence over the long term.

If you’re aiming for a balanced, defensive mix of Aussie and global exposure, these three ASX ETFs could be ideal “set and forget” options.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This ASX ETF gives you instant exposure to hundreds of large companies across developed markets like the US, Europe, and Japan. That global diversification is a huge strength, as you’re not relying solely on the Australian economy.

It also taps into powerful long-term growth trends across industries. Key holdings include NVIDIA Corp (NASDAQ: NVDA), Alphabet Inc (NASDAQ: GOOG), and Johnson & Johnson (NYSE: JNJ).

The main risk? Currency fluctuations and market volatility. But over a 10-year horizon, global diversification can be a major advantage.

BetaShares Australia 200 ETF (ASX: A200)

This ASX ETF tracks the top 200 companies on the ASX, offering broad exposure to the Australian market at a very low cost. It’s a simple way to gain access to dividends, franking credits, and the strength of local blue chips.

Its holdings span multiple sectors, including companies like Wesfarmers Ltd (ASX: WES), CSL Ltd (ASX: CSL), and Macquarie Group Ltd (ASX: MQG).

The risk here is concentration. The Australian market is heavily weighted toward financials and resources. But paired with global exposure, it works well in a balanced portfolio.

iShares Core Composite Bond ETF (ASX: IAF)

This ETF invests in a diversified basket of Australian government and high-quality corporate bonds. It won’t deliver explosive growth, but that’s not the point.

IAF helps smooth out volatility and provides more stable income, especially during market downturns.

Its holdings include Australian Government bonds and debt issued by major institutions like Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ).

The trade-off is lower returns compared to shares, and sensitivity to interest rate movements.

Foolish Takeaway

These three ASX ETFs offer a powerful combination: global growth (VGS), Australian income and stability (A200), and defensive protection (IAF).

For new investors, that’s a simple, diversified portfolio you can build today, and potentially hold for the next decade with confidence.

All three ASX ETFs are also highly cost-effective options. The Vanguard ETF VGS charges a low management fee of around 0.18% per year, while the BetaShares Australia 200 ETF is even cheaper at approximately 0.04%. And the iShares Core Composite Bond ETF costs about 0.10% annually.

The post New to investing? 3 ASX ETFs to set and forget for 10 years appeared first on The Motley Fool Australia.

More reading

• How high can Telstra shares really climb from here?
• ASX 200 sector leaders to buy amid today’s market rally
• What’s the impact of US tariffs on Aussie drugmakers CSL and Mayne Pharma?
• 1 ASX dividend stock down 22% I’d buy right now
• Buy, hold, sell: CSL, QBE, and Pro Medicus shares

Motley Fool contributor Marc Van Dinther 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 Alphabet, CSL, Macquarie Group, Nvidia, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Alphabet, CSL, Nvidia, Vanguard Msci Index International Shares ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many investors strive for reliable passive income. Whether it’s to supplement their main income source or replace it, earning an dividend yield from ASX shares is a straightforward way to make money.

The question is, how do you work out what to invest to get the passive income you want.

It’s actually more straightforward than you’d think.

For example, let’s assume you want to earn $1,000 in passive income every month by investing in ASX shares.

That totals $12,000 per year in dividend payments.

The easy way to work out the investment you need is to divide your annual passive income by the dividend yield.

The tricky part is that the answer varies widely depending on the dividend yield of the ASX shares you’d be buying. 

How much you’d need depending on the ASX share’s dividend yield

Here’s a breakdown of how much you can expect to invest depending on the dividend yield of the shares.

The average dividend yield on the Australian share market is traditionally around 4%. These are usually blue chip companies and major heavyweights which are considered low-risk but long-growth. For example, major banks like National Australia Bank Ltd (ASX: NAB) and defensive stocks like Telstra Group Ltd (ASX: TLS).

An investor would need to invest $300,000 into shares with a 4% dividend yield in order to earn a passive income of $1,000 per month (or $12,000 per year).

If the yield is higher, at around 6%, you’re looking at a $200,000 investment. These are typically companies with a stronger cash flow, which operate in more cyclical industries, which comes with additional risk. For example, ASX infrastructure shares such as APA Group (ASX: APA) or energy companies like Origin Energy Ltd (ASX: ORG).

Then there’s high-yielding companies, which come with even greater risk, and are usually highly cyclical. ASX shares like intellectual property (IP) services company IPH Ltd (ASX: IPH) and media giant Nine Entertainment Co. Holdings Ltd (ASX: NEC) yield around 10%, or even more. You’d only need to invest $120,000 in order to earn $1,000 in passive income.

The catch…

While it can be tempting to buy the shares with the highest yield with the view of lowering the initial investment amount, it’s not usually a wise financial decision.

As I mentioned above, the higher the yield, the higher the level of risk. Rather than fast short-term growth, your focus should always be on earning a sustainable passive income over a long period of time.

The post How much would I need to invest in ASX shares to earn $1,000 in passive income every month? appeared first on The Motley Fool Australia.

More reading

• Why this reliable ASX dividend stock just climbed to a fresh multi-year high
• $8,000 invested in Telstra shares 1 month ago is now worth…
• The reliable ASX dividend shares I’d buy with $10,000
• Here’s the dividend forecast out to 2028 for NAB shares
• How to build a million-dollar ASX share portfolio from zero

Motley Fool contributor Samantha Menzies 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 Apa Group and Telstra Group. The Motley Fool Australia has recommended IPH Ltd and Nine Entertainment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.