Picking the right ASX shares is starting to look a little trickier.

New analysis from Global X ETFs found that almost half of the top 300 ASX companies underperformed the broader market during August’s reporting season.

That might sound surprising, especially with the S&P/ASX 200 Index (ASX: XJO) spending much of 2026 moving higher.

The benchmark index is currently up more than 2% year to date.

But dig a little deeper and there has been a huge difference between the stocks getting rewarded and those being left behind.

So, why has stock picking become so tough?

No room for misses

August showed just how quickly investors were willing to punish companies that fell short.

Global X senior investment strategist Marc Jocum summed it up pretty well.

“This reporting season was unforgiving,” he said.

And the share price moves back that up.

Around half of ASX 200 companies recorded a daily move of at least 5% during August, making it one of the more volatile reporting periods in recent memory.

It also meant a decent result wasn’t always enough.

If guidance disappointed or the market had been expecting more, investors were quick to sell.

There was also a big gap in where the earnings growth came from.

Although headline earnings growth was the strongest in 4 years, much of that was driven by resources. But if you take mining stocks out of the equation, earnings growth fell back to single digits.

Winners and losers

There was also a pretty big divide between sectors.

Materials shares rose around 12% during August, while healthcare jumped almost 19%, its best month in more than 25 years.

Consumer discretionary, property and the big banks went the other way, with all 3 areas struggling.

There was some caution about what comes next, with forward earnings estimates being cut across parts of the market.

AI keeps coming up

Another thing that kept popping up during reporting season was artificial intelligence (AI).

Global X found around 60% of companies mentioned AI on earnings calls, with most talking about how it could improve productivity.

That’s a pretty big number and shows AI is no longer just a topic for tech companies.

But Jocum’s broader takeaway was probably the more important one for investors.

He said “the market is no longer a rising tide lifting all boats”.

That feels pretty accurate after August.

There are still plenty of opportunities on the ASX, but investors may need to be a lot more selective about which stocks they back.

The post Aussie stocks are getting harder to pick. Here’s why 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 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.

Reaching $1 million in superannuation would be a major milestone.

Once retirement arrives, though, the size of the balance is only part of the picture. The next question becomes what sort of lifestyle that money could support and how long it might need to last.

For someone hoping to draw $50,000 a year, there are a few things I would think about before assuming the numbers will work.

Start with the withdrawal rate

Taking $50,000 from a $1 million super balance represents a 5% annual withdrawal.

On the surface, that does not look unreasonable. If the portfolio earned an average return of 5% after fees, a $50,000 withdrawal would roughly match those returns in the first year. Stronger investment returns could allow the balance to grow, while weaker years could see it fall.

Of course, markets do not deliver the same return every year.

A portfolio might rise strongly one year and fall the next. That means the sustainability of a $50,000 annual income would depend on what the investments earn over many years, rather than whether they happen to generate 5% in any individual year.

Which ASX shares would I buy?

One way to generate $50,000 of income a year would be to build a portfolio averaging a dividend yield of 5%.

There are certainly ASX shares capable of contributing meaningful dividend income, but I would not force the entire portfolio into high-yield investments just to hit that figure.

I would rather own a mixture of income and growth investments.

APA Group (ASX: APA), for example, could provide exposure to infrastructure and regular dividends. Macquarie Group Ltd (ASX: MQG) offers another source of income while retaining opportunities to grow across its global businesses.

I would also want investments with stronger capital growth potential, potentially including international shares through an exchange-traded fund (ETF) such as the Vanguard MSCI Index International Shares ETF (ASX: VGS).

Some years, dividends might cover much of the $50,000. In others, I would be comfortable selling a small portion of the portfolio to cover the balance.

Retirement income does not have to come entirely from dividends.

Inflation changes the calculation

Inflation is another challenge if retirement lasts 20 or 30 years.

A $50,000 annual income today will not buy the same amount decades from now.

If living costs rise by 2.5% each year, for example, an investor would eventually need considerably more than $50,000 just to maintain the same spending power.

That is one reason I would keep a meaningful allocation to growth assets after retiring.

If the portfolio can continue increasing in value over time, withdrawals may also be able to rise without putting as much pressure on the remaining balance.

Foolish takeaway

So, could $1 million in superannuation provide $50,000 a year in retirement?

I think it could.

A 5% starting withdrawal is not an extreme figure, but I would want the portfolio to keep working well beyond the first few years of retirement.

For me, the stronger approach would combine income, long-term growth, diversification, and some flexibility around withdrawals. That gives the $1 million balance a good chance of supporting a comfortable income while still having plenty left to fund the years ahead.

The post Could a $1 million superannuation balance provide $50,000 a year in retirement? appeared first on The Motley Fool Australia.

More reading

• How much passive income can I earn off a $550,000 superannuation balance?
• Top 3 ASX dividend shares to buy if interest rates go up
• Top 3 ASX shares to buy with $3,000 in September
• How much is needed in superannuation for $3,000 in weekly passive income?
• Are these top Vanguard ETFs still a buy in September?

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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool Australia has recommended Macquarie Group 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 Austal Ltd (ASX: ASB) share price is in focus today after announcing it has received a non-binding offer from a Wildcat Resources Ltd (ASX: WC8) led syndicate to buy Austal USA for between US$1.25 and US$1.35 billion. The deal would see Austal’s US operations continue independently under the Austal brand.

What did Austal report?

• Received US$1.25–1.35 billion non-binding offer for Austal USA from Wildcat syndicate
• Offer is subject to four weeks of due diligence
• Proposed transaction on a cash free, debt free basis
• Wildcat intends to retain the Austal brand and US operations as a standalone platform

What else do investors need to know?

Austal’s board and advisers are now considering the proposed transaction. There is no guarantee the deal will proceed to a binding agreement, as it’s subject to further due diligence and other standard conditions.

Austal remains Australia’s largest defence exporter and a key partner to the US and Australian governments. In late 2024, it was named Strategic Shipbuilder by the Commonwealth for major Defence projects in Western Australia. The company’s global reach includes shipyards in Australia, the USA, the Philippines, and Vietnam.

What’s next for Austal?

Investors will be watching for updates after Wildcat’s due diligence period. If the deal progresses, Austal could free up significant capital to reinvest in its defence shipbuilding business or return to shareholders, but there’s no certainty yet.

Austal’s core focus remains defence and commercial shipbuilding. The company’s commitment to local and international defence contracts, including strategic work for both the US and Australia, underpins its outlook regardless of the sale outcome.

Austal share price snapshot

Over the past 12 months, Austal shares have declined 47%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 1% over the same period.

View Original Announcement

The post Austal receives US$1.35bn offer for Austal USA 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.