CSL Ltd (ASX: CSL) shares closed 1.02% higher on Wednesday afternoon, at $170.00 a piece. For 2026 so far, the shares have fallen 2.09% and it is trading a whopping 40.5% lower than this time last year.

For context, the S&P/ASX 200 Index (ASX: XJO) closed 0.15% higher on Wednesday, is down 0.06% for 2026 so far, and 4.95% higher than this time last year.

What happened to CSL shares in 2025?

It’s no secret that CSL shares have been through the ringer this year. The Australian biotech company’s shares suffered a brutal sell-off in mid-August after its FY25 result and surprise restructure announcement.

Two and a half months later, the company’s share price dropped another 19.2% to a seven-year low of $170.77 in late-October when it downgraded its FY26 revenue and profit growth guidance. 

CSL management originally forecast revenue growth of 4-5% and net profit after tax before amortisation (NPATA) growth of 7-10% for FY26. But in October revenue guidance was downgraded to 2-3% and NPATA growth guidance to 4-7%. 

By the end of 2025 it had plummeted nearly 100% from its mid-August peak.

What’s ahead for CSL in 2026?

As an Australian-based global biotechnology company focused on developing and delivering biotherapies and vaccines to protect public health, CSL has great growth potential.

CSL’s core business is strong and demand for its products has continued to grow globally. 

The company is also entering a key investment phase which could help boost its financials and I’d expect investor confidence to follow suit.

Analysts think CSL shares could soar past $270

According to TradingView data, 13 out of 18 analysts have a buy or strong buy rating on CSL shares. The average target price is $232.03, which implies a potential 36.49% upside at the time of writing.

But some analysts think the shares could soar to $271.37 in 2026, which suggests a potential 59.63% upside from the share price at the close of the ASX on Wednesday afternoon.

Morgan Stanley recently confirmed its overweight rating and $256.00 price target on this biotechnology company’s shares. Despite all the doom and gloom around CSL at present, Morgan Stanley is very positive on its outlook and expects a recovery this year.

The team at UBS think that CSL shares are materially undervalued at current levels. The broker recently put a buy rating and a $275.00 price target on them. 

The post Prediction: CSL shares could soar past $270 in 2026 appeared first on The Motley Fool Australia.

More reading

• The simple buy and hold investing lesson that still works with ASX shares today
• Could these ASX 200 losers be among the best shares to buy in 2026?
• Could CSL shares outperform the ASX 200 in 2026?
• Why did CSL shares crash 39% in 2025?
• My best ASX 200 shares to buy in January

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 positions in and has recommended CSL. 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.

As 2026 gets underway, I’m looking for ASX stocks that I believe can continue to grow, adapt, and compound value over time.

With that in mind, these are five stocks I’m particularly eager to buy for my portfolio in 2026.

DroneShield Ltd (ASX: DRO)

DroneShield operates in a niche that is becoming increasingly important. Counter-drone technology is now a critical requirement for defence, government, and the protection of key infrastructure.

While the company’s revenue can be lumpy due to contract timing, the underlying demand drivers are structural rather than cyclical. As drone technology becomes more accessible and sophisticated, the need for effective countermeasures will only intensify.

DroneShield is not a low-risk investment, but for investors willing to tolerate volatility, I think it offers exposure to a long-term defence technology theme that is still in its early stages.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa has built one of the most scalable retail models on the ASX.

Rather than relying on heavy discounting or aggressive marketing, the company focuses on rapid product turnover and disciplined store expansion. That approach has allowed Lovisa to grow its footprint across dozens of international markets while maintaining strong returns on capital.

What appeals to me is that growth is still being driven primarily by new store openings, not by stretching assumptions around consumer spending. If execution remains consistent, there is plenty of scope for Lovisa to continue expanding in 2026 and beyond.

Wesfarmers (ASX: WES)

Wesfarmers earns its place on this list through consistency rather than speed.

The group owns a collection of well-established businesses, but its real strength lies in how it allocates capital across them. Over time, management has demonstrated a willingness to invest, divest, and reshape the portfolio as needed, rather than standing still.

Strong cash generation gives Wesfarmers flexibility. It enables the company to continue investing under various conditions while maintaining its balance sheet strength. In 2026, I see Wesfarmers as a strong holding that reduces overall portfolio risk without sacrificing long-term returns.

Sigma Healthcare Ltd (ASX: SIG)

Sigma Healthcare looks very different today than it did a year ago.

Following its merger with Chemist Warehouse, the business now operates at a much larger scale across wholesale distribution, franchising, and retail pharmacy. That places Sigma at the centre of Australia’s community pharmacy ecosystem.

Demand for medicines and pharmacy services is not discretionary, which gives the business a defensive foundation. As integration progresses and efficiencies are realised, Sigma has the potential to deliver steady earnings growth over time.

Temple & Webster Group Ltd (ASX: TPW)

Temple and Webster rounds out the list.

The ASX stock has established a strong position in online furniture retail, supported by a broad product range and a data-driven approach to merchandising. While housing activity and consumer confidence can move in cycles, Temple and Webster has shown it can adjust its cost base and inventory as conditions change.

I also like the company due to its relatively small market share and potential to increase it significantly as more spending shifts online.

Foolish Takeaway

Overall, I believe these ASX stocks offer long-term relevance, a clear strategic direction, and the ability to continue executing effectively under various conditions. For me, those qualities matter.

That is why DroneShield, Lovisa, Wesfarmers, Sigma, and Temple and Webster are five stocks I’m eager to buy in 2026.

The post 5 unbeatable ASX stocks I’m eager to buy in 2026 appeared first on The Motley Fool Australia.

More reading

• 3 of the fastest-growing stocks on the planet in 2025
• 5 best ASX 200 industrial shares of 2025
• These 2 ASX growth shares are ideal for Australians!
• Here are the top 10 ASX 200 shares today
• 2 super ASX growth stocks to buy in bunches in 2026

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

Thankfully for income investors, there are plenty of ASX dividend shares to choose from on the local share market.

But which ones could be top buys right now? Let’s take a look at three that analysts are recommending to clients right now. They are as follows:

Coles Group Ltd (ASX: COL)

The first ASX dividend share that analysts are tipping as a buy is Coles Group.

It is of course one of Australia’s largest supermarket chains, benefitting from the kind of steady, recession-resistant demand that makes for dependable cashflow.

The team at Morgan Stanley is very positive on the company’s outlook and believes it is well-placed to continue growing its dividend. The broker is forecasting fully franked dividends of 83 cents per share in FY 2026 and then 90 cents per share in FY 2027. Based on its current share price of $20.77, this would mean dividend yields of 4% and 4.3%, respectively.

Morgan Stanley currently has an overweight rating and $26.50 price target on its shares.

GQG Partners Inc. (ASX: GQG)

Another ASX dividend share that has been given the thumbs up by analysts is GQG Partners. It is a US-based fund manager with approximately US$166 billion under management.

The team at Macquarie remains positive on the company despite the poor performance of its funds. It thinks investors should be buying the dip in its share price, especially given the big dividend yields on offer with its shares.

Speaking of which, the broker is forecasting the equivalent of dividends per share of 22.6 cents per share in FY 2025 and then 22.9 cents per share in FY 2026. Based on its current share price of $1.80, this represents dividend yields greater than 12% for both years.

Macquarie currently has an outperform rating and $2.50 price target on its shares.

HomeCo Daily Needs REIT (ASX: HDN)

A third ASX dividend share that could be a buy for income investors is the HomeCo Daily Needs REIT.

It is a real estate investment trust (REIT) that focuses on convenience-based retail centres. This includes supermarkets, pharmacies, medical clinics, and pet stores. Essentially, its focus is on assets that deal with daily needs and have stable tenants and long leases.

UBS is positive on this one. It expects the company to pay dividends of 8.6 cents per share in FY 2026 and then 8.7 cents per share FY 2027. Based on its current share price of $1.37, this would mean dividend yields of 6.3% and 6.4%, respectively.

The broker currently has a buy rating and $1.53 price target on its shares.

The post Analysts are urging investors to buy these ASX dividend shares appeared first on The Motley Fool Australia.

More reading

• Top retirement shares for Australian investors to buy now
• An ASX dividend stalwart every Australian should consider buying
• My 10 top stocks to buy to start the New Year off right
• How I’d build a growing passive income stream from ASX shares over 15 years
• The best ASX dividend shares to buy in January

Motley Fool contributor James Mickleboro has positions in Gqg Partners. 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 Gqg Partners and 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.

I’ve got a long way to go before becoming a millionaire, but there’s an ASX-listed exchange-traded fund (ETF) I think that can help get me there faster.

I believe the best investments are ones that can deliver fairly consistent returns over time, which enable us to own them for the long-term.

There are a number of great businesses on the ASX, but there are even stronger businesses overseas with stronger competitive advantages than their peers, more impressive balance sheets and highly attractive returns on equity (ROE).

I’m not trying to invest in all of those businesses individually myself. Instead, I’m using the VanEck MSCI International Quality ETF (ASX: QUAL) as my way to access incredible companies. I’ll run through what makes it so appealing.

High-quality businesses

The QUAL ETF is not just invested in a random group of international businesses. It is a curated portfolio of companies that have been selected for their quality credentials.

What makes ‘quality’ can be measured in many different ways.

The QUAL ETF strategy has decided on three aspects that decide on whether global stocks are worthy of being a holding.

The business must have a high return on equity. That means they make a lot of profit compared to how much shareholder money is retained within the business.

Second, the business must have earnings stability. If profits aren’t going backwards, that suggests they’re regularly increasing, which is very supportive for a rising share price over time.

Third, the business should have low financial leverage. That means their financials are in a healthy state and the high ROE has not been artificially boosted by the company using debt rather than shareholder money to fund the operations.

By putting those three elements together, investors are left with an ASX ETF portfolio of very high-quality names with growing earnings. It’s these attributes that could help deliver strong returns to help me become a millionaire sooner.

Strong diversification

The QUAL ETF portfolio is not just a few large US tech names – it’s invested in around 300 companies from a range of countries and sectors.

For example, at least 1% of the portfolio is invested in companies from Switzerland, the UK, Japan, the Netherlands, Germany and Denmark.

Software is 29% of the portfolio, it’s a great sector to be invested in, but diversification is achieved with more than 9% of the portfolio is invested in the following sectors: healthcare, industrials, communication services, financials and consumer staples.

I like that I’m not heavily betting on one sector for success with this fund.

How the ASX ETF can help me become a millionaire faster

Past performance is certainly not a guarantee of future performance, but the QUAL ETF has returned an average of 14.7% per year over the last decade, outperforming the global share market by an average of more than 1.5% per year.

If I invested $1,000 per month and it returned 14.7% per year, that would grow into $1 million in roughly 19 years. That sounds good to me! I plan to utilise the QUAL ETF alongside a portfolio of quality ASX shares to help me achieve my goal.

The post Why I’m betting on this ASX ETF to help me become a millionaire appeared first on The Motley Fool Australia.

More reading

• 3 steps to replace your wage with dividends from ASX shares
• I plan to invest $1,000s into these 2 ASX ETFs in 2026
• 2 ASX shares to buy and hold for the next decade
• If a 30-year-old invests $1,500 a month in ASX stocks, here’s what they could have by retirement

Motley Fool contributor Tristan Harrison has positions in VanEck Msci International Quality ETF. 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.

From real estate to medical and even tech, if I had a spare $30,000, these are the ASX shares I’d add to my portfolio this week.

REA Group Ltd (ASX: REA)

REA shares closed 0.17% lower on Wednesday afternoon, at $180.04 a piece. The shares have dropped 2.75% so far in 2026 and are currently 25.94% below where they were this time last year.

The real estate advertising company’s share price suffered a gradual but consistent decline after it appointed a new CEO in late-August. At the time, some brokers also said they think the stock was overpriced. In late August, Toby Grimm from Baker Young said he sees challenges ahead for REA and suggested selling while the stock trades above his valuation.

By the end of the year, REA shares had lost over 30% of their value.

But analysts are still pretty bullish on the shares. And I agree that there could be a decent upside ahead for REA in 2026. 

REA’s latest results show the business continues to grow with first quarter FY26 revenue up 4% and profit up 5%. 

Most analysts have a buy or strong buy rating on the ASX 200 stock, with a maximum 12-month target price of $290. That implies a massive 61.08% upside for investors in 2026, at the time of writing. 

Pro Medicus Ltd (ASX: PME)

Pro Medicus shares rose 0.58% at the close of the ASX on Wednesday, at $215 each. The shares are 2.58% lower for 2026 so far and 17.15% below where they were this time last year.

The medical imaging technology provider’s shares peaked at around $330 per share in mid-July. They then tumbled over 33% by the close of 2025. 

But the company’s visage imaging platform appears to be becoming the system of choice for large hospital networks in the US. This is thanks to its speed, scalability, and cloud-based architecture. The company is gaining traction with long-term contracts, it has a strong earnings visibility, a growing pipeline of major contract wins, all against a backdrop of radiologist shortages. The stock is very much on my radar this week.

Analysts seem to be divided about the potential outlook for the stock. Data shows that 4 out of 7 analysts have a buy or strong buy rating on the ASX shares. The maximum 12-month target price is $350 per share, which implies a 62.79% upside ahead for investors in 2026, at the time of writing.

Xero Ltd (ASX: XRO)

Xero shares closed 1.36% higher on Wednesday afternoon, at $108.60 a piece. The ASX 200 stock is 2.36% lower for the year so far and 37.58% below where it was last year.

From US-acquisition news to lower-than-expected results, the company has faced a couple of headwinds this year. But I think the reaction was way overdone and the level of sell-off unfounded.

I actually think Xero shares could double this year.

According to TradingView data, most analysts (11 out of 14) are bullish on Xero shares for 2026. 

The maximum 12-month target price is $228.85 a piece, which implies a huge 110.83% upside for investors at the time of writing.

UBS says that it is positive on the medium term growth outlook for Xero and believes the current share price is an “attractive buying opportunity”. The broker has a $194 price target on the shares.

Meanwhile, Macquarie is more bullish on the stock. The broker has an outperform rating and $228.90 price target on the shares, saying the company is well-positioned for growth in the US.

The post 3 ASX shares I’d buy with $30,000 this week appeared first on The Motley Fool Australia.

More reading

• The simple buy and hold investing lesson that still works with ASX shares today
• 3 phenomenal ASX stocks that could double in 2026
• 5 incredible ASX growth stocks to buy for 2026
• My 10 top stocks to buy to start the New Year off right
• Down 36% in a year, is it time to consider buying shares in this dominant ASX tech company?

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 positions in and has recommended 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 Xero. 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 Wednesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and ended the day higher. The benchmark index rose 0.15% to 8,695.6 points.

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

ASX 200 expected to edge lower

The Australian share market looks set to edge lower on Thursday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points lower this morning. In late trade in the United States, the Dow Jones is down 0.6%, the S&P 500 is flat, and the Nasdaq is 0.5% higher.

Oil prices fall

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor session on Thursday after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.6% to US$56.20 a barrel and the Brent crude oil price is down 0.95% to US$60.13 a barrel. This follows news that Donald Trump has reached a deal to import up to US$2 billion worth of Venezuelan crude.

Buy Premier Investments shares

Premier Investments Ltd (ASX: PMV) shares could be dirt cheap according to Bell Potter. Despite a disappointing recent update from the Peter Alexander and Smiggle owner, the broker has retained its buy rating with a trimmed price target of $20.00 (from $26.50). It said: “We see limited catalysts for Smiggle, apart from the interim management change and lower our assumptions. However, our views remain unchanged that the current share price implies minimum levels of earnings assumed in the Smiggle brand and any improvements from a lower base case should see some risk-reward for current conditions.”

Gold price eases

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Thursday after the gold price eased overnight. According to CNBC, the gold futures price is down 0.75% to US$4,462 an ounce. This appears to have been driven by profit taking from traders.

Hold SGH shares

Bell Potter thinks that SGH Ltd (ASX: SGH) shares are fully valued. In response to its takeover offer for BlueScope Steel Ltd (ASX: BSL), the broker has retained its hold rating and $52.00 price target. It said: “We believe SGH is securing a good deal for shareholders, acquiring the Australia and RoW businesses at cycle-lows. These assets will benefit from SGH’s capital-backing and high-performance operating model which has proven successful with the Boral turnaround. At an offer price of A$30.00/sh, we estimate SGH is paying A$6.00- 9.00/sh for the non-NA assets or 8.4-12.6x EV / FY25a EBIT (SGH: 15.2x pre-deal). We make no material changes to our EPS forecasts and valuation in this report.”

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

More reading

• What’s Bell Potter’s view on SGH shares after the BlueScope Steel acquisition proposal?
• Santos vs Woodside: Are these ASX 200 oil and gas shares a buy, hold or sell for 2026?
• Buy, hold, sell: How does Morgans rate these ASX shares?
• Why this beaten down ASX 200 stock could rise 50%
• This ASX gold giant jumped almost 5% on Wednesday. Here’s why

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

The Global X S&P World Ex Australia Garp Etf (ASX: GARP) is a great ASX ETF for investors focussed on growth. 

The GARP acronym stands for growth at a reasonable price. 

It was made famous by investor Peter Lynch.

The strategy seeks to combine the best facets of growth and value investing approaches to select individual stock investments.

In the words of Global X, the fund provides access to global companies with:

• Strong earnings growth
• Solid financial strength
• Reasonable valuations

Inside GARP’s December 2025 Rebalance

In a fresh report out of the ETF provider yesterday, it highlighted the changes made to the fund.

These changes went into effect in December.

Marc Jocum, Senior Product and Investment Strategist said the latest rebalance resulted in a measured refresh rather than a wholesale shift. 

While some individual holdings changed, the portfolio’s core identity remains intact.

It is tilted toward high-quality global companies with improving earnings momentum, resilient fundamentals, and reasonable valuations.

Periods of market noise often tempt investors to chase momentum or retreat to defensives. However, the most durable outcomes tend to come from discipline – owning companies that can consistently grow earnings, maintain balance sheet strength, and trade at a fair price.

What’s in?

According to the report, the December 2025 rebalance saw the addition of companies where earnings are improving, but valuations are yet to fully re-rate.

The first inclusion was Rolls-Royce Plc (LSE: RR.). 

Global X said this was due to expanding earnings margins, driven by higher engine flying hours, improved pricing, a greater mix of recurring services revenue, and disciplined cost control.

The company is also emerging as a beneficiary of the AI-driven power generation theme. 

Another inclusion to the fund was Walt Disney (NYSE: DIS) due to improved earnings momentum across its diversified entertainment ecosystem.

Additionally, SoftBank (OTC: SFBQ.F) – a global technology investment conglomerate was added. This was thanks to its unique leverage to the AI megatrend. 

What’s out?

The GARP ETF also saw key stock removals from the fund. 

Global X said several high-quality franchises were removed not because their businesses are broken, but because growth has slowed, balance sheet risks have risen, or valuations are no longer warranted.

• Visa (NYSE: V) was exited as earnings growth moderated, balance sheet leverage increased, all amidst regulatory and competitive pressures intensified.
• Costco Wholesale (NASDAQ: COST), despite its exceptional business model, faced slowing revenue momentum and emerging margin headwinds, challenging to reconcile with a premium valuation.
• General Motors (NYSE: GM) screened as optically cheap, but weakening margins and falling returns on equity, perhaps due to uncertainty around EV strategy, meant GM no longer fit a GARP framework.

The post Own the Global X GARP ETF? The fund just made some key changes appeared first on The Motley Fool Australia.

More reading

• Space, time and… clarity
• 2 compelling ASX shares I’d buy in a heartbeat
• My 10 top stocks to buy to start the New Year off right
• The best ASX ETFs to buy in 2026 and hold until at least 2036
• 5 fantastic ASX ETFs for beginners in 2026

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 positions in and has recommended Costco Wholesale, Visa, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended General Motors and Rolls-Royce Plc. The Motley Fool Australia has recommended Visa and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Buy and hold investing sounds almost too simple.

In a world filled with market predictions, Reddit groups, and economic headlines, the idea of buying high-quality ASX shares and holding them for years can feel outdated. Yet time and again, this approach has proven remarkably effective for patient investors.

At its core, buy and hold investing is not about ignoring reality or pretending markets never fall. It is about recognising that wealth is usually built by owning great businesses for long periods, not by trying to outsmart the market every few months.

Why buy and hold investing ASX shares works

The power of buy and hold investing comes from compounding.

When a company grows its earnings year after year, and reinvests those earnings, shareholders benefit in two ways. The value of the business increases over time, and dividends or retained profits are reinvested to fuel further growth.

Trying to trade in and out of the market often interrupts this process. It introduces timing risk, higher brokerage costs, and emotional decision-making. In contrast, buy and hold investors give compounding the time it needs to work its magic.

This is why legendary investors like Warren Buffett have long emphasised patience over prediction.

And you only need to look at his wealth generation over the past few decades to see that it works.

What makes a good buy and hold investment?

Not every ASX share is suitable for a buy and hold strategy. The strongest long-term candidates tend to share a few key traits.

They operate in markets with long-term demand rather than short-lived trends. They have competitive advantages that make them hard to replace. And they are run by management teams that allocate capital sensibly.

Importantly, buy and hold does not mean buy anything and forget about it. It means buying businesses you would be comfortable owning through economic cycles, industry shifts, and periods of market volatility. You only sell if the investment thesis is broken.

Examples

The Australian share market offers several examples of businesses that have rewarded long-term investors over decades.

One is CSL Ltd (ASX: CSL). Through consistent investment in research, global expansion, and operational excellence, CSL has grown into a world leader in plasma therapies. Short-term setbacks have come and gone, but the long-term growth story has remained intact.

Another is REA Group Ltd (ASX: REA). Its dominant realestate.com.au platform position and pricing power have allowed it to grow earnings at a strong rate for over two decades, despite periodic property downturns.

Then there is TechnologyOne Ltd (ASX: TNE). By focusing on mission-critical software, recurring revenue, and steady product innovation, it has delivered decades of growth without needing to chase hype.

In each case, investors who held through volatility were rewarded far more than those who tried to time the perfect entry or exit.

Foolish takeaway

Buy and hold investing will never make headlines or deliver overnight riches.

But for investors willing to focus on quality, stay patient, and let time work in their favour, it remains one of the most reliable paths to long-term wealth.

The post The simple buy and hold investing lesson that still works with ASX shares today appeared first on The Motley Fool Australia.

More reading

• Prediction: CSL shares could soar past $270 in 2026
• 3 ASX shares I’d buy with $30,000 this week
• Could these ASX 200 losers be among the best shares to buy in 2026?
• 2 unstoppable ASX 200 stocks to buy in 2026 and hold forever
• 5 incredible ASX growth stocks to buy for 2026

Motley Fool contributor James Mickleboro has positions in CSL, REA Group, and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Reddit. The Motley Fool Australia has recommended CSL and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

SGH Ltd (ASX: SGH) shares are in focus after the company confirmed it has submitted a proposal to acquire BlueScope Steel Ltd (ASX:BSL). 

For a quick refresher, on Monday, it released an announcement the company has submitted a Non-Binding Indicative Offer (NBIO), together with Steel Dynamics Inc. (NASDAQ: STLD).

The offer is to acquire 100% of BlueScope Steel by way of a scheme of arrangement (the Proposal).

In the announcement, the company said if the proposal is implemented and following the transaction close, SGH would on-sell BSL’s North American operations to SDI.

This includes BSL’s North Star Flat Rolled Steel Mill and Building and Coated Products North America businesses. 

SGH would retain the remaining BSL “Australia + Rest of World” operations.

This includes Australian Steel Products, Asia Coated Products, and New Zealand and Pacific Islands businesses.

According to the announcement, the consortium has offered $30.00 cash per BlueScope share. 

What did management say?

Commenting on the proposal, Ryan Stokes, Managing Director & Chief Executive Officer of SGH said: 

We believe BlueScope’s Australian business is a strong strategic fit for SGH and we have a proven track record of driving performance improvement in domestic industrial businesses. We intend to leverage our disciplined operating model and capital allocation approach to deliver better outcomes for stakeholders.

Bell Potter weighs in

Following the announcement, Broker Bell Potter released a report with analysis on the company following the proposal. 

The broker said an all-cash consideration of A$30.00/sh was offered, representing a 27% premium to BSL’s share price at NBIO submission (12 December 2025). 

This values BSL at 18.6x EV / FY25a EBIT and 9.5x EV / FY25a EBITDA (SGH: 15.2x EV / FY25a EBIT and 11.4x EV / FY25a EBITDA). 

Bell Potter also noted that Steel Dynamics had made three prior offers through a consortium (not with SGH Ltd) and alone, targeting BlueScope Steel’s North American operations. 

However all prior proposals were rejected on the basis they undervalued BSL and presented a significant regulatory hurdle.

Ultimately the broker believes SGH is securing a strong deal. 

We believe SGH is securing a good deal for shareholders, acquiring the Australia and RoW businesses at cycle-lows. These assets will benefit from SGH’s capital-backing and high-performance operating model which has proven successful with the Boral turnaround.

Valuation remains the same

SGH shares have already jumped 6% higher in 2026. 

But following Monday’s announcement, Bell Potter made no material changes to EPS forecasts or valuations.

The broker has maintained its hold recommendation and $52.00 price target. 

This indicates an upside of approximately 6%. 

The post What’s Bell Potter’s view on SGH shares after the BlueScope Steel acquisition proposal? appeared first on The Motley Fool Australia.

More reading

• BlueScope Steel shares soar 23%: Buy, hold or sell for 2026?
• Here are the top 10 ASX 200 shares today
• Why BlueScope, DroneShield, Monadelphous, and SGH shares are racing higher today
• BlueScope shares jump 20% on takeover news
• SGH confirms $13.2 billion acquisition offer for BlueScope Steel

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 recommended Steel Dynamics. 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.

BHP Group Ltd (ASX: BHP) shares may have a reputation for large dividend payouts, but it’s not one of the first ASX dividend shares I’d buy today.

For starters, the ASX mining share has seen its valuation increase by more than 20% over the last six months, which is great for existing shareholders but not for potential investors seeking a large dividend yield.

When the share price of a business increases 10%, it pushes down the dividend yield by around 10%. For example, if the dividend yield was 5% and the share price rises 10%, new investors would only get a 4.5% dividend yield.

I rate the two ASX dividend share below as much more appealing ideas for passive income.

Universal Store Holdings Ltd (ASX: UNI)

Like BHP, Universal Store is exposed to a cyclical sector. Universal Store operates in the retail space, with multiple premium youth fashion brands. Its two most compelling businesses are Universal Store and Perfect Stranger. It aims to sell on-trend apparel products to 16 to 35-year-old fashion-focused customers.

Despite being in retail, the company’s dividend has not been volatile – it has steadily grown since it started paying one in 2021. Owners of BHP shares have seen multiple annual dividend cuts in that time.

In FY25, Universal Store grew its annual payout by 8% to 38.5 cents per share, which translates into a current grossed-up dividend yield of almost 7%, including franking credits.

The prospect of dividend growth in FY26 looks promising, in my view.

In the AGM update in October, overall direct-to-customer sales were up 13.7% year-over-year, with Universal Store total sales up 11.4% and Perfect Stranger sales up 30.5%.

The company said it’s on track to roll out between 11 to 17 new stores in FY26, representing a rise of approximately 10%, which is a good tailwind for further earnings growth.

I think it’s likely the ASX dividend share will pay an annual dividend of at least 40 cents per share in FY26, which could translate into a grossed-up dividend yield of 7.1%.

WCM Quality Global Growth Fund (ASX: WCMQ)

Most index-tracking exchange-traded funds (ETFs) have a relatively low dividend yield because the businesses they’re invested in have a low dividend yield.

But, some ETFs can become an attractive option for passive income if they target a specific dividend yield for investors.

WCM Quality Global Growth Fund is aiming for a minimum annualised cash yield of at least 5% each year, which I’d describe as a very good yield when combined with the overall offering.

The WCM investment team aim for a portfolio of between 20 to 40 stocks that they’d describe as quality global companies that have corporate cultures that promote a strengthening of their economic moats over time.

With that strategy, WCM has delivered an average return per year of almost 16% over the last decade. That leaves room for a good dividend yield, rising dividend and capital growth too from the ASX dividend share. Of course, past performance is not a guarantee of future returns.

Some of the positions in the current portfolio include AppLovin, Taiwan Semiconductor, Siemens Energy and Amazon.

The post Forget BHP shares! Buy these ASX dividend shares instead for passive income appeared first on The Motley Fool Australia.

More reading

• Buy 100 shares of this premier dividend share for $150 in passive income
• Broker names 2 ASX dividend shares to buy before it’s too late
• 5 things to watch on the ASX 200 on Wednesday
• Scores of ASX mining shares hit 52-week highs
• How I’d build a growing passive income stream from ASX shares over 15 years

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 Amazon and Taiwan Semiconductor Manufacturing. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Siemens Energy Ag. The Motley Fool Australia has recommended Amazon, BHP Group, and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.