Owners of Wesfarmers Ltd (ASX: WES) shares can be excited about the company’s latest plan to expand its business and unlock further earnings growth through residential apartments.

Wesfarmers is initially investing $100 million of equity into a joint venture to help deliver apartments that are cheaper and faster than traditional construction.

The Australian business already has a significant presence in the construction industry through its Bunnings, Tool Kit Depot and Beaumont Tiles. This “initial” move could become a larger initiative, according to Wesfarmers.

Wesfarmers invests in affordable apartment construction

The Western Australian business announced it has entered into a 50:50 joint venture with Built Group to establish Built Living, which wants to deliver “residential apartments at scale through advanced manufacturing”.

This will reportedly be Australia’s first advanced manufacturing facility dedicated to medium and high-rise residential precast concrete construction and development.

Wesfarmers said Built Living will use ‘design for manufacture and assembly’ methods that are used in international markets. Its goal is to deliver apartments at approximately 20% lower costs and 50% faster than traditional construction.

Once the facility is complete in Western Australia, it expects to support delivery of more than 2,000 apartments annually once completed. Construction is expected to start in the second half of 2026.

Wesfarmers said its commitment will be staged, with additional facilities in other states to be considered.

It was also announced that the Western Australian Government is supporting this through a long-term lease of land in the Neerabup Automation and Robotics Precinct in Western Australia, together with “direct support” for the development of the facility.

A portion of the facility’s annual capacity will be reserved for government-backed housing projects and the state’s social infrastructure pipeline.

Wesfarmers also believes this will create growth opportunities for its existing businesses, including through supply arrangements with Bunnings’ trade business on arm’s length, commercially competitive terms.

Management commentary

The Wesfarmers managing director Rob Scott said:

Australia urgently needs more housing, and the Built Living joint venture is well positioned to address that need using internationally-proven construction models, to deliver high quality properties.

Built brings world-class construction experience, sophisticated digital processes and a strong track record of quality developments, while Wesfarmers contributes investment capacity and demonstrated capabilities in advanced manufacturing and supply chain management.

We look forward to working closely with Built and the Western Australian Government on what is a shared challenge. Addressing Australia’s housing shortage will take real collaboration across industry and government, and we are pleased to be in a partnership that can help make a meaningful difference.

Wesfarmers share price snapshot

The Wesfarmers share price fell approximately 0.6% yesterday after this news was announced, though this decline also came amid an RBA rate hike concerning developments in the Middle East regarding a possible resumption of hostilities between the US and Iran.

The post Own Wesfarmers shares? It’s expanding into modular apartment construction appeared first on The Motley Fool Australia.

More reading

• I’m worried about the ASX 200 falling further. Here’s why
• CSL, Wesfarmers, Endeavour shares crash to multi-year lows: Buy, hold, or sell?
• CSL and Wesfarmers among scores of ASX shares hitting fresh 52-week lows
• 3 top ASX shares to build a simple, balanced portfolio in 2026
• How much could the Wesfarmers share price rise in the next year?

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

It’s been a fairly miserable time for the S&P/ASX 200 Index (ASX: XJO) over the past few months. The ASX 200 started 2026 off on a strong note, rising by a healthy 5.4% between early January and early March. But the Iran war put a stop to that, with the index now down about 6% since 2 March.

Things haven’t been looking up more recently either. Since the middle of April, the ASX 200 has retreated by around 3%.

Over the past six months, the Australian share market has also lost about 2% of its value. This is the period I’d like to focus on.

Back in early November, the ASX was still basking in the afterglow of the August interest rate cut that the Reserve Bank of Australia (RBA) delivered. That was the third RBA rate cut of 2025, bringing the cash rate down to 3.6%.

Since then, the RBA has dramatically reversed course. Take the interest rate hike that was announced just today. If we combine it with February and March’s hikes, all three of 2025’s rate cuts have been nullified. Today, the cash rate is back to 4.35%, exactly where it was at the start of 2025.

Do higher interest rates mean lower ASX 200 shares?

Under typical financial logic, rate hikes are bad news for the share market. This is due to two factors. The first is that a higher cash rate tends to change the way investors value ASX shares by boosting the risk-free return available from government bonds. A higher risk-free rate means that shares need to deliver higher profits to justify the same valuation.

The second factor is the increased appeal of ‘safer’ assets thanks to the higher rates. Many investors will simply opt for a term deposit or government bond over a dividend-paying share if they can get a better interest rate on the safer investments. This latest hike could pull term deposit rates well over 5.5%. That looks pretty good against the kinds of yields that the likes of Commonwealth Bank of Australia (ASX: CBA), Telstra Group Ltd (ASX: TLS) and Wesfarmers Ltd (ASX: WES) are currently sporting.

So, by all accounts, the three interest rate increases we have seen in 2026 so far should have a fairly significant impact on the overall ASX 200 Index. Yet it is seemingly not. Despite these rate hikes and despite the clear economic damage that is being caused by the closure of the Strait of Hormuz, investors have sent the ASX 200 down 2% over the past six months.

Something doesn’t seem right to me. That’s why I think there’s a good chance the ASX 200 Index will continue to drift lower in the coming months. I could be wrong. But I also believe in reversion to the mean.

The post I’m worried about the ASX 200 falling further. Here’s why appeared first on The Motley Fool Australia.

More reading

• Own Wesfarmers shares? It’s expanding into modular apartment construction
• CSL, Wesfarmers, Endeavour shares crash to multi-year lows: Buy, hold, or sell?
• 5 things to watch on the ASX 200 on Wednesday
• Infratil shares: CDC inks Australia’s largest data centre contract
• My 3 favourite ASX 200 dividend shares for passive income

Motley Fool contributor Sebastian Bowen 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 has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A $5,000 investment can be more than enough to start building income in the share market.

But where should you start?

Here are three ASX dividend shares that could be worth buying in May.

APA Group (ASX: APA)

The first ASX dividend share that could be a buy is APA Group.

It owns and operates energy infrastructure, including gas pipelines, storage assets, and related infrastructure across Australia.

The appeal here is that its earnings are tied more closely to contracted infrastructure usage than short-term movements in commodity prices. Gas still has a role to play in energy security, industrial demand, and firming electricity supply as renewable generation increases.

That gives APA a different type of income profile from traditional energy producers. It is more about the pipes and networks that move energy around the system.

With long-life infrastructure assets and contracted cash flows, APA remains a share that income-focused investors may want to keep on the radar.

Dicker Data Ltd (ASX: DDR)

Another ASX dividend share worth looking at is Dicker Data.

It is a technology distributor that connects major global vendors with resellers across Australia and New Zealand. Its partners include companies across hardware, software, cloud, cybersecurity, and infrastructure.

This makes it a different income idea from the usual banks, telcos, and infrastructure names. Dicker Data sits in the middle of the technology supply chain, benefiting as businesses continue to spend on digital systems.

The company has historically returned a large portion of earnings to shareholders through dividends, making it one of the more generous dividend payers on the local market.

For investors comfortable with a more cyclical income stream, Dicker Data offers dividend exposure linked to technology spending rather than consumer spending.

Rural Funds Group (ASX: RFF)

A third ASX dividend share that could be a top pick for income investors is Rural Funds Group.

It owns agricultural assets, including farmland and related infrastructure, which are leased to high-quality operators across different parts of the agriculture sector.

This structure gives investors exposure to farmland income without having to operate farms directly. Rental income is the key driver, while the underlying assets remain connected to long-term demand for food and agricultural production.

Weather, interest rates, and tenant performance can all influence sentiment toward the stock. But for investors seeking income from a less conventional part of the ASX, Rural Funds offers something different.

The post Where to invest $5,000 into ASX dividend shares in May appeared first on The Motley Fool Australia.

More reading

• 3 top ASX shares to build a simple, balanced portfolio in 2026
• 3 excellent ASX dividend shares to buy in May
• How I’d invest $2,000 in high-yield ASX 300 shares
• How to become a millionaire on a $60,000 salary
• Want passive income? These ASX dividend shares offer 5%+ yields

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 positions in and has recommended Apa Group, Dicker Data, and Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL), Wesfarmers Ltd (ASX: WES), and Endeavour Group Ltd (ASX: EDV) shares were among 72 companies that recorded fresh 52-week lows yesterday.

Among those 72 companies was a trend: the dominance of ASX healthcare shares and consumer discretionary or retail stocks.

CSL, Wesfarmers, Endeavour shares weaken

CSL, Wesfarmers, and Endeavour shares have fallen amid significant headwinds in both of their sectors.

In the healthcare space, companies are dealing with currency headwinds as the US dollar weakens and the AUD strengthens, the implementation of US tariffs for larger companies, and uncertainty over the impact of artificial intelligence (AI).

They also face higher labour costs, while consumers sacrifice non-urgent medical procedures due to the cost-of-living crisis.

ASX biotechs are also grappling with uncertainty with the US Food and Drug Administration (FDA) under the Trump administration.

Crumbling consumer confidence is also contributing to delayed healthcare and fewer non-urgent medical procedures.

Consumer confidence in Australia is at its lowest level in five years amid resurgent inflation and rising interest rates.

The Reserve Bank of Australia (RBA) raised the official interest rate for a third consecutive time yesterday due to rising inflation.

Inflation was already ticking upward before the war in Iran began, and higher fuel prices are now expected to exacerbate the impact.

We’ve already seen it at the petrol bowser, and economists warn it will eventually show up on our supermarket shelves, too.

The Consumer Price Index (CPI) rose from 3.7% over the 12 months to February to 4.6% in March, according to the Bureau of Statistics.

The inflation surge was mostly due to a 33% spike in automotive fuel prices in the month of March (the Iran war began on 28 February).

Discretionary spending is usually the first corner cut by consumers when they have to tighten their wallets.

This does not bode well for ASX retail shares like Wesfarmers, which owns Bunnings, Kmart, Priceline, and Officeworks, nor consumer staples retailers like Endeavour, which owns the Dan Murphy’s liquor store chain and a large network of pubs.

So, what do the experts think about these three ASX 200 shares? Let’s take a look.

Buy, hold, or sell?

CSL shares

The CSL share price hit a 9-year low of $122.48 yesterday.

The market’s largest ASX 200 healthcare share has lost half of its value over the past 12 months.

On the CommSec trading platform, CSL has a consensus moderate buy rating among 18 analysts tracking the stock.

Earlier this month, Bell Potter published a new note on CSL shares that said the company “was not out of the woods just yet”.

Bell Potter has a hold rating on CSL shares and recently reduced its 12-month target from $175 to $155.

The broker said:

The current share price reflects a materially de-rated PE multiple of ~15x our FY27 NPAT forecast, bringing CSL in line with the global biopharma peer set which also trades at an avg PE of 15x.

While CSL doesn’t face the same extent of generic/biosimilar competition as these biopharma peers, it does have a lower growth outlook of ~2.5% revenue CAGR (3yr) per our forecast compared to >4% avg for global peers.

Considering the low-growth outlook in the near-term, risk to FY26 guidance, and our below-consensus FY27 forecasts, we maintain our HOLD recommendation notwithstanding the historically low trading multiple.

Endeavour shares

The Endeavour share price fell to a record low of $3.13 on Tuesday.

The market’s third largest ASX 200 consumer staples share has fallen 22% over 12 months.

On CommSec, Endeavour shares have a consensus hold rating among 16 analysts.

Yesterday, Bell Potter reiterated its buy rating on Endeavour shares after the group’s 3Q FY26 report.

However, the broker reduced its price target from $4.15 to $3.85.

Bell Potter said:

Although the outlook for consumer spending has weakened due to the Middle East conflict and a worsening rate environment, we believe market expectations are low for the company’s strategic refresh, leaving greater room for upside potential.

We see opportunity for consensus upgrades: a strengthening of Dan Murphy’s lowest-price perception; and cost-out opportunities.

Wesfarmers shares

The Wesfarmers share price reached a 52-week low of $71.31 yesterday.

The market’s largest ASX 200 consumer discretionary share has declined 9% over 12 months.

On CommSec, Wesfarmers shares also score a hold rating from 16 analysts rating the company.

John Athanasiou from Red Leaf Securities is pessimistic on Wesfarmers shares.

He explained his sell rating on the ASX 200 retail share recently on The Bull:

Its businesses are household names, but recent trading suggests slowing consumer demand and cost pressures are weighing on sentiment.

With much of its value already priced in amid a mixed outlook on near term retail growth, Wesfarmers lacks fresh catalysts to drive meaningful upside.

Trimming positions into strength may be prudent for investors seeking a better risk-reward proposition.

The post CSL, Wesfarmers, Endeavour shares crash to multi-year lows: Buy, hold, or sell? appeared first on The Motley Fool Australia.

More reading

• Own Wesfarmers shares? It’s expanding into modular apartment construction
• I’m worried about the ASX 200 falling further. Here’s why
• Forget gold! Start hunting fallen ASX 200 shares to buy for an earlier retirement
• CSL and Wesfarmers among scores of ASX shares hitting fresh 52-week lows
• Down over 50%: Are CSL and Cochlear strong buys in May?

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

I think it’s a great idea to look at compelling ASX growth shares after their share price has heavily declined because the future price/earnings (P/E) ratio is typically much lower.

I’m not sure about you, but I’d much rather buy an ASX share when it’s trading at 40x FY27’s estimated earnings than 50x FY27’s estimated earnings. That’s a big difference!

Let’s look at two of the most appealing businesses on the ASX.

Siteminder Ltd (ASX: SDR)

This company is behind Siteminder software, a leading hotel distribution and revenue platform, as well as Little Hotelier, which is an all-in-one hotel management software that “makes the lives of small accommodation providers easier”.

Siteminder is a truly global business, with offices in Sydney, Bangkok, Barcelona, Berlin, Dallas, Galway, London, Manila, Mexico City and Pune.

Despite the ASX growth share’s impressive market position and its excellent growth rate, the market has sent the Siteminder share price down by 57% in the past six months.

The FY26 half-year result saw annualised recurring revenue (ARR) growth of 29.7% to $280.3 million.

Net property additions were 2,900 during the FY26 half-year result, taking the total properties to 53,000. It’s continuing its strategy of pursuing its larger hotel properties.

It said that average revenue per user (ARPU) increased by 11.3% to $435, with the growth driven by its smart platform initiative and rising product adoption.

The business is helping hotels generate the strongest levels of revenue from their available rooms throughout the year, including an offering that enables Siteminder to manage the room pricing for the subscriber.

It’s also generating rising profit margins as its revenue increases. For example in HY26, operating profit (adjusted EBITDA) more than doubled to $12.3 million.

The ASX growth share is priced at just 17x FY27’s estimated earnings.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is the other ASX growth share I’ll highlight because of the much cheaper valuation and earnings growth rate it’s been achieving.

It describes itself as a leading healthcare informatics company with leading-edge medical imaging solutions. The ASX growth share offers a suite of radiology information systems (RIS), picture, archiving and communication systems (PACS), AI and e-health solutions.

The healthcare industry in North America and Europe is becoming increasingly digital and online, so Pro Medicus is well-placed to service this large and growing demand.

It has announced numerous contract wins over the last few years, including the recent five-year A$23 million contract with the University of Maryland Medical System and five-year A$37 million contract renewal with Northwestern Medicine.  

Pro Medicus’ numerous contract wins helped the business make $124.8 million of revenue, up 28.4% year-over-year.

It has an incredibly high operating profit (EBIT) margin and it continues rising – in HY26, the underlying EBIT margin improved to 73%, up from 72%. This helped it grow underlying profit before tax by 29.7% to $90.7 million.

The Pro Medicus share price is down 57% since July 2025, as the chart below shows.

According to the forecast on Commsec, the Pro Medicus share price is valued at 76x FY27’s estimated earnings.

The post 2 ASX growth shares to buy now while they’re on sale appeared first on The Motley Fool Australia.

More reading

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• 4 ASX healthcare shares to buy as sector struggles: experts
• How I would invest $10,000 across ASX growth shares in May
• 10 excellent ASX shares to buy in May
• Why these ASX shares jumped 15%+ in April

Motley Fool contributor Tristan Harrison has positions in Pro Medicus and SiteMinder. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended SiteMinder. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Pro Medicus. 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) had a subdued session and recorded a small decline. The benchmark index fell 0.2% to 8,680.5 points.

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

ASX 200 to rise

The Australian share market looks set to rise on Wednesday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 38 points or 0.45% higher. In the United States, the Dow Jones rose 0.75%, the S&P 500 climbed 0.8%, and the Nasdaq jumped 1%. This took the S&P 500 index to a record high close.

Oil prices fall

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 3.55% to US$102.63 a barrel and the Brent crude oil price is down 3.75% to US$110.14 a barrel. Traders were selling oil after the US-Iran ceasefire remained in place despite rising tensions.

Computershare shares on watch

Computershare Ltd (ASX: CPU) shares will be on watch on Wednesday after the share registry company released a second-half trading update. The company revealed that it is performing in-line with its guidance for FY 2026. As a result, it has reaffirmed its upgraded guidance for management earnings per share to be around 144 cents per share. This will be up around 6% on the prior corresponding period.

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 0.7% to US$4,566.7 an ounce. The gold price rebounded from a one-month low after oil prices pulled back.

Buy WiseTech shares

Bell Potter is tipping WiseTech Global Ltd (ASX: WTC) shares as a buy this week. According to the note, the broker has retained its buy rating and $78.75 price target on the logistics solutions technology company’s shares. It said: “We note our FY27 revenue and EBITDA forecasts of US$1,567m and US$728m imply an EBITDA margin of 46.5% which in our view could be conservative given the underlying guidance for FY26 is b/w 41-46% and the exit margin is likely to be towards the top end of this range.”

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

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Yesterday afternoon, Infratil Ltd (ASX: IFT) reported that its data centre investment CDC signed Australia’s largest-ever data centre contract, a 555MW deal with a US investment grade customer, taking total CDC contracted capacity to over 1 gigawatt.

What did Infratil report?

• CDC secures a 30-year contract for 555MW in new data centre capacity, with options to extend by 20 years
• Total CDC contracted capacity surpasses 1GW, more than doubling with this agreement
• CDC FY27 EBITDAF guidance remains at A$680m to A$720m; FY28 EBITDAF expected to exceed A$1 billion
• Annualised EBITDAF of approximately A$2 billion projected when all contracted capacity is deployed
• CDC expects FY27 capex of A$3.8bn to $4.2bn (excluding land), supporting construction of new sites

What else do investors need to know?

CDC’s contract will use capacity already under development, due to be operational across FY28 and FY29. The 555MW capacity alone represents roughly 40% of the total Australian data centre operating capacity forecast for 2025, underlining CDC’s position as the largest provider in Australasia.

CDC’s balance sheet remains strong, with A$3.9 billion in cash and undrawn facilities as at 31 March. Earlier this year, CDC shareholders, including Infratil, provided a further A$500 million in equity, but the new contract fits fully within CDC’s current growth plan and won’t require more capital from investors.

What’s next for Infratil?

CDC is aiming for its newly contracted capacity to become operational through FY28 and FY29. Longer-term, CDC continues to develop more sites, with a current pipeline of 1.6GW for future builds through to 2034, and plans for further expansion in response to strong demand.

Moody’s recently assigned CDC’s Australian business a Baa2 (Stable) credit rating, enhancing access to global debt markets to help fund its construction and growth. All up, Infratil sees CDC’s expansion as a major driver of earnings and value for its shareholders.

Infratil share price snapshot

Over the past 12 months, Infratil shares have risen 2%, underperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Infratil shares: CDC inks Australia’s largest data centre contract 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.

There are plenty of reasons why I think BHP Group Ltd (ASX: BHP) shares could be worth buying.

It is one of the largest miners in the world, it has a long history of paying dividends, and its planned expansion into potash through Jansen could add another growth pillar over time.

But if I had to pick the number one reason I would buy BHP shares today, it would be copper.

I think copper exposure is becoming the most important part of the BHP investment case.

Copper is becoming central to the story

BHP is no longer just an iron ore giant with some other assets attached.

Copper is now a much bigger part of the business. In the first half of FY26, BHP said copper made up more than half of its underlying earnings for the first time. The company is also on track to produce between 1.9 million and 2 million tonnes of copper in FY26.

That shift is important in my opinion. Iron ore can still generate enormous cash flow, and I would not want to dismiss its value. But copper gives BHP exposure to a very different long-term demand story.

Copper is used in electrification, power networks, renewable energy, electric vehicles, data centres, and digital infrastructure. As the world uses more electricity and builds more complex technology systems, I think copper demand could keep rising for decades.

BHP’s own analysis points to global copper demand growing from around 34 million tonnes a year today to more than 50 million tonnes a year by 2050. It also believes copper demand from data centres alone could grow six-fold to nearly 3 million tonnes a year by 2050.

That is the kind of structural trend I want exposure to.

Supply could be the key

The second part of the copper story is supply.

It is one thing to have rising demand. It is another thing to find enough supply to meet it.

BHP has highlighted that copper mines are getting older and grades are declining. It estimates the world will need 10 million tonnes of additional new copper supply by 2035 to balance demand.

I think this is where BHP’s position becomes especially attractive.

The company says it is the world’s largest copper producer and has a pathway to grow production into the 2030s, with copper growth options in Chile, Argentina, Australia, and the United States.

That combination of scale, existing production, and future growth options is hard to find.

If copper markets remain tight, I think BHP could be in a strong position to benefit.

A diversified business helps

Of course, I would not buy BHP only because of copper.

The broader portfolio is still important. BHP has iron ore, steelmaking coal, and soon potash. That diversification can support cash flow through the cycle and help fund growth investment.

This is not a small miner hoping to ride a theme. It is a global resources giant with financial strength, operating scale, and multiple ways to generate cash.

Foolish takeaway

If I were buying BHP shares today, copper would be the main reason.

The company still has plenty of other attractions, including dividends, iron ore cash flow, potash growth, and a diversified portfolio.

But copper is what makes the long-term story more interesting to me.

With demand potentially rising for decades and supply looking difficult to bring on quickly, I think BHP’s copper exposure could become an increasingly valuable part of the business. For patient investors, that could make the shares well worth considering.

The post The number one reason I’d buy BHP shares appeared first on The Motley Fool Australia.

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• My 3 favourite ASX 200 dividend shares for passive income
• Forget BHP shares, this ASX mining stock could rise 20%+
• Buying ASX 200 mining shares? Here’s how Rio Tinto, Fortescue and BHP stacked up in April
• I’d buy BHP and these ASX 200 shares with $5,000 in May
• Big gains for BHP shares in April, but is the best still to come?

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares are a great way for passive-income-seeking investors to earn some extra cash.

Major ASX dividend shares pay shareholders a consistent dividend, usually around twice per year, though sometimes more.

But it’s not always easy to determine which ASX dividend shares are the best to buy.

Here are three of my top picks.

Commonwealth Bank of Australia (ASX: CBA)

When it comes to ASX dividend shares, dominant players like CBA are a great option.

The banking giant is the largest ASX share by market capitalisation. It is a huge, dominant, and highly profitable ASX 200 dividend stock that is able to offer both quality and consistency.

CBA has paid dividends twice per year consistently since 2006. The bank most recently paid its shareholders a fully-franked dividend of $2.35 per share in late March. This implies a dividend yield of around 2.74% at the time of writing.

It’s not one of the highest-yielding players on the sharemarket, but it suits conservative investors who want to prioritise stability and profitability over a high yield. 

BHP Group Ltd (ASX: BHP)

The mining giant is widely considered a premier blue-chip ASX 200 stock with a huge $277 billion market capitalisation and a strong operational history. At the time of writing, BHP is second only to CBA in terms of market size.

BHP is a cyclical, rather than a defensive stock, and while cyclical stocks are closely tied to the broad economic cycle, they usually outperform during periods of economic recovery.

The low-cost miner has a long history of regular dividend payment, which dates back to around 2006. And its commodity exposure is diversified too, which means it can maintain its dividend payouts even when commodity prices fluctuate.

BHP most recently paid its shareholders an interim dividend of $1.0385 per share in March, fully franked, which translates to a dividend yield of around 3.8% at the time of writing.

Telstra Group Ltd (ASX: TLS)

Unlike CBA and BHP, Telstra is a classic defensive stock. Internet access and mobile phone connectivity are basic daily necessities these days, which means the company is likely to perform steadily regardless of the stage of the economic cycle. 

Because of its defensive nature, Telstra can usually pay its shareholders a reliable passive income at a good dividend yield.

The company historically pays its shareholders two dividends every year, in March and September. Most recently, shareholders were paid an interim dividend of 10.5 cents, 90.48% franked, in March. 

The telco is expected to pay a total dividend of 20 cents for FY26, representing a 5.25% year-on-year increase. At the time of writing, that implies a dividend yield around 3.7%.

The post My 3 favourite ASX 200 dividend shares for passive income appeared first on The Motley Fool Australia.

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

Gold has been one of the standout trades of the past year, and I can understand why investors have been drawn to it.

When economic worries rise, geopolitical risks increase, and markets feel uncertain, gold often attracts attention. It can act as a store of value when confidence in other assets weakens.

But if I were investing for an earlier retirement, I would be more interested in something else right now.

I would be looking at high-quality ASX 200 shares that have fallen heavily from their highs.

Why fallen ASX 200 shares interest me more

Gold can be useful in a portfolio, but it does not produce earnings, pay dividends, or reinvest for growth.

A strong business can do all three.

That is why I think investors should be careful about getting too caught up in gold after a big run.

If higher fuel prices keep feeding inflation, interest rates could be heading higher in the United States. That could put pressure on the gold price if real yields become more attractive.

Meanwhile, a number of ASX 200 shares have already been punished heavily.

Some of these falls are understandable. Earnings expectations have been reset, sentiment has weakened, and investors are less willing to pay high multiples for growth.

But I think that is exactly where long-term opportunities can start to appear.

The ASX 200 sell-off list is getting interesting

There are now plenty of well-known ASX 200 names trading far below where they were.

In healthcare, CSL Ltd (ASX: CSL), Cochlear Ltd (ASX: COH), and Telix Pharmaceuticals Ltd (ASX: TLX) have all been hit hard. Each has its own issues, but I think the broader point is that investors are now being offered lower prices for businesses with meaningful long-term healthcare exposure.

The technology sector has also been under pressure. WiseTech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO), Pro Medicus Ltd (ASX: PME), and Life360 Inc. (ASX: 360) have all pulled back as investors reassess valuations, growth expectations, and the impact of artificial intelligence (AI). I do not think every fallen tech share is automatically a bargain, but I do think this is where patient investors should be looking closely.

Then there are turnaround-style names such as Domino’s Pizza Enterprises Ltd (ASX: DMP) and Treasury Wine Estates Ltd (ASX: TWE), where sentiment has been weak for some time. These situations can take longer to play out, but they can also become interesting when expectations are already low.

The point is not that every one of these shares is a screaming buy today. It is that the opportunity set has changed. A year ago, many quality ASX 200 shares looked expensive. Today, more of them are trading at prices that could give long-term investors a better chance of attractive returns.

Cheap does not mean risk-free

Of course, a falling share price does not automatically make a stock a bargain.

Some companies fall because the outlook has genuinely deteriorated. Others need time to rebuild confidence. And in some cases, earnings may take years to return to previous highs.

That is why I would be selective.

I would want businesses with strong market positions, long growth runways, and balance sheets that can handle tougher conditions. I would also want management teams that have a clear plan to keep the business moving forward.

For me, the opportunity is about finding good companies where the share price may have fallen further than the long-term investment case has changed.

Why this could help with retirement

The path to an earlier retirement usually comes from owning assets that compound over time.

That means buying quality businesses, reinvesting dividends where possible, and giving them years to grow.

If investors can buy those businesses when sentiment is weak, the long-term returns can be much stronger.

A recovery does not need to happen quickly. In fact, patient investors may benefit if prices stay low for a while and allow them to keep adding.

Foolish takeaway

Gold may still have a role for some investors, especially during uncertain periods.

But if I were trying to build wealth for an earlier retirement, I would be hunting for fallen ASX 200 shares instead.

With so many quality ASX 200 shares trading well below their highs, I think May could be a good time to start looking carefully.

The post Forget gold! Start hunting fallen ASX 200 shares to buy for an earlier retirement appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• CSL and Wesfarmers among scores of ASX shares hitting fresh 52-week lows
• Down over 50%: Are CSL and Cochlear strong buys in May?
• ASX 200 tech shares rebound 20% in 5 weeks: experts reveal stocks to buy
• WiseTech shares are flying 6.5% higher today. Can they keep going?

Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Cochlear, Domino’s Pizza Enterprises, Life360, Telix Pharmaceuticals, Treasury Wine Estates, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Life360, Treasury Wine Estates, WiseTech Global, and Xero. The Motley Fool Australia has recommended CSL, Cochlear, Domino’s Pizza Enterprises, Pro Medicus, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.