I think the best ASX dividend shares can provide investors with a mixture of capital growth and dividends, which could suit grandparents, children and anyone in between. Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) could be the best pick of the bunch.

Past performance is not a guarantee of future performance, but over the last four years, the Soul Patts share price has risen by around 70%. That’s a pleasing level of growth, and that’s before we’ve even talked about the dividend.

Soul Patts is an investment conglomerate. Let’s get into why it’s such an appealing option for dividend income.

Diversification

As an investment house, the business has built up a diversified and impressive portfolio.

The company has a flexible mandate to invest in almost any assets in different markets.

For example, Soul Patts is currently invested in resources, energy, telecommunications, swimming schools, agriculture, water entitlements, electrification, financial services, retirement living, industrial property, building products, credit and plenty more.

This portfolio provides Soul Patts with a defensive and largely uncorrelated source of cash flow to pay dividends.

I like that the ASX dividend share regularly adds to the portfolio (and occasionally divests) to ensure the portfolio is future-focused and has a compelling future.

Longevity

To make any investment for a grandparent, I’d want to invest in something that has a long track record and is unlikely to result in a permanent capital loss.

The diversification of the ASX dividend share’s portfolio is useful, but I think its longevity is even more impressive.

It has been listed in Australia for more than 120 years, making it one of the oldest businesses on the ASX.

If there was going to be one business within the S&P/ASX 200 Index (ASX: XJO) that I’d bet would still be around in another 20 or 30 years, it’d be Soul Patts because of the ASX dividend share’s ability to change its portfolio.

Reliable ASX dividend share

I think its reliable dividend is the top reason to like Soul Patts as an ASX dividend share.

The business has increased its annual ordinary dividend every year since 1998. No other ASX share has a record like that.

Perhaps just as impressively, Soul Patts has paid a dividend every year for more than 120 years, including through wars, pandemics, economic crashes, and so on.

I have a high level of optimism that the company can continue its dividend growth record for grandparents and every other aged investor wanting an ASX dividend share.

The post The 1 ASX dividend share I’d buy for my grandparents appeared first on The Motley Fool Australia.

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

When it comes to ASX ETFs, investors are spoiled for choice. 

The record net flows of investor allocation to the sector have pushed providers to list more and more funds. 

Today there are hundreds of exchange-traded funds. These cover everything from Australian shares and global equities to artificial intelligence, cybersecurity, uranium and gold. 

For experienced investors, that variety provides more ways than ever to build a portfolio tailored to their goals.  

But for many, all those choices can also lead to paralysis by analysis. 

It can be difficult to decide where to start and how to diversify your portfolio. 

According to Vanguard, a growing number of investors are turning to diversified ETFs, also known as ready-made, multi-asset or asset allocation ETFs to solve this problem. 

What is a diversified ETF?

Unlike traditional ETFs, which typically track a single market or sector, ready-made ETFs invest across multiple asset classes within a single fund. 

They offer the advantage of providing diversification in one trade, instead of buying separate ETFs for Australian shares, international shares, emerging markets and fixed income.

Investors can generally choose between conservative, balanced or growth-oriented portfolios depending on their investment objectives, risk appetite and time horizon. 

In simple terms, it also allows investors to not actively manage their portfolios. These kinds of ASX ETFs can be set-and-forget equities. 

Why are investors choosing diversified funds?

According to a report from Vanguard, diversified ETFs are gaining traction. 

At the end of June, Australia’s diversified ETF category managed more than $9 billion across a range of funds. That’s up from $6.3 billion a year earlier – an increase of around 44% – with the category now accounting for approximately 2.5% of total ASX-listed ETF assets.

The strong growth suggests more Australian investors are embracing ready-made portfolios as a simple way to build a diversified investment strategy without having to construct and maintain one themselves. 

Australian investors also have billions of dollars invested in unlisted diversified funds, highlighting the longstanding appeal of professionally diversified portfolios. 

For investors seeking a diversified portfolio in a single investment, diversified ETFs can provide exposure to a range of asset classes.

Vanguard’s investing philosophy emphasises diversification, regular investing and staying the course through market ups and downs, while periodically reviewing investments to ensure they remain aligned with long-term goals and circumstances.

Why this could be the top option

For investors looking to target a diversified ASX ETF, one stellar option is the Vanguard Diversified High Growth Index ETF (ASX: VDHG). 

Rather than investing directly in individual companies, VDHG invests in a range of underlying index funds and ETFs. Each provides exposure to a highly diversified mix of equities and bonds from around the globe.

At the time of writing, its exposure is: 

• Australian Shares (36%)
• International Shares (26.5%)
• International Shares Hedged (16%)
• International Fixed Interest Hedged (7%)
• International Small Companies (6.5%)
• Emerging Market Shares (5%)
• Australian Fixed Interest (3%)

Overall, 90% of the portfolio is allocated to growth assets, while 10% is invested in defensive assets. 

Rather than investors determining how much to allocate to each of these building blocks and when to rebalance them, the portfolio manager monitors and rebalances the portfolio to maintain its target asset allocation over time.

The post Is this the best diversified ASX ETF on the market right now? 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.

It’s been a tough year for most ASX tech shares.

Not to mention their stockholders.

Indeed, while the All Ordinaries Index (ASX: XAO) was recently up a bit more than 1% in 12 months, the S&P/ASX All Technology Index (ASX: XTX) has fallen almost 27% over this same period.

ASX tech shares have faced headwinds on several fronts.

First, the last year has seen central banks the world over pivot from lowering interest rates to hiking them, or at the very least staying put. And growth shares like tech companies, which are often priced with higher future earnings in mind, tend to be sensitive to any moves in borrowing costs.

The tech sector has also taken a hit from a development of its own devising. Namely AI.

In what you may have heard called the ‘SaaSpocalypse’, a lot of Aussie and global technology stocks came under pressure amid investor concerns that AI could potentially replace the services these companies currently provide.

Now, that’s the year just past.

Looking ahead, Red Leaf Securities’ John Athanasiou has drilled into two ASX tech shares he believes are well-placed to outperform (courtesy of The Bull).

ASX tech share primed for a rebound

First up we have Atturra (ASX: ATA), whose shares were recently down around 52% over 12 months, trading for 39 cents apiece.

Which could make now an opportune time to buy.

“Atturra is an AI-driven technology integrator,” Athanasiou said. “It’s focusing on organic growth after integrating a number of acquisitions.”

Turning to some key financial metrics, he noted:

Underlying EBITDA [earnings before interest, taxes, depreciation and amortisation] in full year 2026 is expected to range between $30 million and $30.5 million, which is in line with guidance, while second half operating cash flow is expected to reach between $22 million and $23 million.

Summarising his buy recommendation on the ASX tech shares, Athanasiou concluded:

Atturra plans to invest an additional $3 million in AI, while its SAP business is forecast to grow by more than 50% between fiscal years 2026 and 2027.

If management successfully executes its fiscal year 2027 strategy, Atturra’s earnings profile should materially strengthen.

Which brings us to…

Tech company on the growth path

Athanasiou also issued a buy recommendation on DUG Technology Ltd (ASX: DUG).

Shaking off the broader malaise dragging on the tech sector, DUG shares were recently up around 26% over 12 months, trading for $2.00 apiece.

“This software solutions company is building strong momentum in response to improving revenue, margins and cash flow,” Athanasiou said.

Explaining his buy recommendation on this ASX tech share, he said:

Revenue of US$62.7 million rose 39% in the first nine months of fiscal year 2026. Normalised EBITDA almost doubled to US$20.9 million. Operating cash flow reached US$23.7 million and DUG moved from net debt a year earlier to $US11.4 million in net cash. The earnings mix is also improving.

Demand for DUG’s proprietary MP-FWI imaging technology remains strong, while recurring 4D projects add further revenue visibility. Given accelerating growth, improving cash generation and a stronger balance sheet, DUG remains an attractive technology exposure.

The post Expert names 2 ASX tech shares to buy today appeared first on The Motley Fool Australia.

More reading

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• DUG Technology scores US$9.3m software and HPC contract

Motley Fool contributor Bernd Struben 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 Atturra and Dug Technology. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.