Artificial intelligence (AI) has been one of the most powerful investment themes of the past decade, and its influence is only accelerating.

Yet even the strongest AI-linked businesses are not immune to market pullbacks.

One ASX stock that fits this description is NextDC Ltd (ASX: NXT).

A high-quality AI enabler at a discounted price

NextDC is not a flashy software or chip company, but it plays a critical role in the AI ecosystem. The company owns and operates a growing network of premium data centres across Australia and the Asia-Pacific.

From these centres, it provides the infrastructure that powers cloud computing, artificial intelligence, and hyperscale workloads.

Every major AI trend, from large language models to enterprise automation, relies on enormous amounts of data storage, processing power, and connectivity. That demand ultimately flows through to data centre operators like NextDC, which supply the physical backbone of the digital economy.

Despite this strong long-term positioning, this artificial intelligence ASX stock is currently trading at $12.70, which is roughly 30% below its 52-week high.

This pullback appears to reflect broader concerns about AI valuations and higher interest rates, rather than any fundamental deterioration in the company’s role within the industry.

Long-term growth story

NextDC continues to invest heavily in expanding capacity to meet future demand. This includes its recent agreement with ChatGPT’s owner, OpenAI, to look at building the largest data centre in the southern hemisphere.

This leaves it well-positioned to benefit from increasing demand for capacity in data centres from hyperscale customers, global cloud providers, and enterprise clients that require secure, high-performance infrastructure.

In fact, the artificial intelligence ASX stock has released two trading updates this month which revealed that demand has been growing rapidly. Last week, it noted that its pro forma contracted utilisation increased by 96MW or 30% to 412MW since its last update on 1 December.

The good news is that this is unlikely to be where it stops. AI workloads are far more power and data-intensive than traditional computing. That structural shift supports sustained demand growth for next-generation data centres, particularly those located in strategically important markets like Australia.

Should you invest in this artificial intelligence ASX stock?

Morgans sees significant value on offer at current levels.

Earlier this month, the broker upgraded NextDC’s shares to a buy rating with a $19.00 price target. This implies potential upside of almost 50% for investors over the next 12 months. It said:

NXT has announced that following recent customer contract wins, presumably including a large single customer contract win across multiple locations, its contracted utilisation has increased by 71MW to 316MW as at 1 December 2025. Further contract wins were, and remain in, our forecasts so this mostly underpins our expectations.

However, we upgrade our capex assumptions and lift our FY27/28 EBITDA forecasts by 5%. Our target price remains $19 per share. The share price has declined ~19% in the last three months and given a ~40% differential between the current share price and our $19 target price we upgrade our recommendation to BUY from ACCUMULATE.

Overall, this could make it worth considering NextDC shares if you are looking for exposure to the AI boom.

The post 1 no-brainer artificial intelligence ASX stock down 30% to buy on the dip in 2026 appeared first on The Motley Fool Australia.

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• Why Morgans rates these popular ASX shares as buys
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Motley Fool contributor James Mickleboro has positions in Nextdc. 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.

Do you have room in your income portfolio for some new additions in 2026?

If you do, then it could be worth looking at the three ASX dividend stocks named below.

They have recently been tipped as buys and are forecast by brokers to pay attractive dividends in the near term.

Here’s what you need to know about them:

Coles Group Ltd (ASX: COL)

As one of Australia’s largest supermarket chains, Coles benefits from steady, recession-resistant demand that makes for dependable cashflow. Aussies always need the groceries and household essentials that fill their fridges and shelves.

This sort of consistent demand, together with strong pricing power, helps support the company’s dividends year after year.

Macquarie is feeling bullish about Coles’ outlook and expects fully franked dividends of 78 cents per share in FY 2026 and then 86 cents per share in FY 2027. Based on its current share price of $21.39, this would mean dividend yields of 3.6% and 4%, respectively.

The broker has an outperform rating and $26.10 price target on its shares.

IPH Ltd (ASX: IPH)

Another ASX dividend stock that has been given the thumbs up by analysts is IPH.

It is a global intellectual property services company that helps clients protect their patents, trademarks, and intellectual property across multiple jurisdictions through firms like Smart & Biggar and Spruson & Ferguson.

Its defensive revenue profile, strong cash conversion, and disciplined capital management have allowed the company to pay generous dividends over many years.

The good news is that Morgans expects this trend to continue. It is forecasting fully franked dividends of 37 cents per share in both FY 2026 and FY 2027. Based on the current IPH share price of $3.54, this implies massive 10% dividend yields.

Morgans also sees plenty of upside for investors. It has a buy rating and $6.05 price target on its shares.

Jumbo Interactive Ltd (ASX: JIN)

A final ASX dividend stock that income investors might want to look at is Jumbo Interactive.

It is an online lottery ticket seller and lottery platform provider behind the Oz Lotteries app and Powered by Jumbo platform.

Macquarie is feeling bullish on the company. It believes it is positioned to pay fully franked dividends of 33 cents per share in FY 2026 and then 44.5 cents per share in FY 2027. Based on its current share price of $11.30, this would mean dividend yields of 2.9% and 3.9%, respectively.

Macquarie has an outperform rating and $15.00 price target on its shares.

The post Brokers name 3 ASX dividend stocks to buy in 2026 appeared first on The Motley Fool Australia.

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• Why Jumbo shares could be one to watch today

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

Many investors will be taking the time this holiday season to evaluate their portfolio and its performance in 2025. 

With only a day left of trading this year, the S&P/ASX 200 Index (ASX: XJO) has risen roughly 6.4% this year. 

History tells us that’s slightly below average. 

So if your portfolio rose more than that this year, well done! 

What you might not realise is that Australia’s benchmark index has been outpaced over the last couple of years by Emerging Markets and Developing Economies (EMDE).

What are developing economies?

The World Economic Outlook divides the world into two major groups: advanced economies and emerging and developing economies.

Emerging Market and Developing Economies (EMDEs) are countries that are in the process of economic development and have lower income levels and less mature financial and institutional systems compared to advanced economies.

There are more than 150 countries that are classified in this group. 

It’s important to note this classification is not based on strict criteria, economic or otherwise. 

However in general terms, these are economies that:

• Have lower per-capita income than advanced economies
• Are undergoing structural transformation (e.g., industrialisation, urbanisation)
• Have developing financial markets and institutions
• Often experience faster economic growth but higher volatility

How have they performed?

These markets are growing both economically, and in terms of global presence. 

In fact, data shows emerging markets and developing economies (EMDEs) now account for 45% of global GDP.

This is up from 25% in 2000 according to the World Bank Group. 

There are two ASX ETFs that have performed well over the past two years on the back of this growth. 

Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE)

This ASX ETF offers exposure to companies listed on emerging markets, allowing investors to participate in the long-term growth potential typical of these economies.

At the time of writing, it is made up of more than 6,000 holdings, with its largest geographical exposure being towards: 

• China (32.6%)
• Taiwan (22.0%)
• India (19.8%)

Importantly, it has performed well over the last 3 years. 

In 2025, the fund rose 14.54%, far outpacing the ASX 200. 

Over the last 3 years, it has provided returns of approximately 13.5% per annum. 

iShares International Equity ETFs – iShares MSCI Emerging Markets ETF (ASX: IEM)

This ASX ETF offers another option to gain exposure to emerging markets. It focuses on 800 large and mid-sized companies. 

It has a similar geographic profile, with large exposure to: 

• China (27.91%)
• Taiwan (20.26%)
• India (15.33%)
• Korea, South (13.01%)

In 2025, this ASX ETF has risen more than 22%. 

Over the last three years it has provided per annum returns of 14.23%. 

Foolish takeaway 

There is absolutely ample opportunity in ASX stocks. However diversifying into international markets can also be a worthwhile strategy for investors. 

It is important to note that emerging markets can also face significant volatility due to factors like political instability, currency fluctuations, weaker regulation, and lower liquidity compared with developed markets.

The post Did these two ASX ETFs targeting developing economies beat your portfolio in 2025? appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX dividend stocks to buy in 2026
• 3 exciting ASX ETFs to buy with $3,000 in 2026
• 3 Betashares ASX ETFs that smashed the ASX 200 this year
• The next stock-split stock that could make you rich
• Did Fortescue, Rio Tinto or BHP shares perform better this year?

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.

If you have $3,000 to invest and want exposure to some of the most powerful growth themes, exchange-traded funds (ETFs) can be a smart place to start.

They allow you to back long-term trends without having to guess which individual company will win.

With that in mind, here are three ASX ETFs that offer very different, but equally exciting, growth angles.

BetaShares Crypto Innovators ETF (ASX: CRYP)

The BetaShares Crypto Innovators ETF is not about speculating on individual cryptocurrencies. Instead, it provides exposure to the companies that are building the infrastructure and services around the crypto ecosystem.

Its holdings include businesses such as Coinbase Global (NASDAQ: COIN), Marathon Digital Holdings (NASDAQ: MARA), and Paypal (NASDAQ: PYPL). These companies benefit from increased adoption of digital assets, blockchain-based payments, and decentralised finance, regardless of which specific token ends up dominating.

What makes the BetaShares Crypto Innovators ETF interesting is that it captures the commercialisation of crypto, rather than pure price movements. As regulation matures and institutional participation grows, the businesses enabling crypto trading, custody, and infrastructure could become far more mainstream over time.

BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

The BetaShares Global Robotics and Artificial Intelligence ETF targets two of the most transformative forces of the next few decades: automation and AI.

The fund holds a global mix of companies involved in robotics, machine learning, and industrial automation. This includes Nvidia (NASDAQ: NVDA), Intuitive Surgical (NASDAQ: ISRG), and ABB Ltd (SWX: ABBN). They are at the forefront of applying AI to healthcare, manufacturing, and logistics.

Rather than focusing on consumer-facing AI hype, this ASX ETF leans into the practical deployment of intelligent systems in the real economy. As labour shortages persist and productivity becomes more valuable, demand for automation and robotics is likely to keep rising steadily. This fund was recently recommended by analysts at Betashares.

BetaShares Cloud Computing ETF (ASX: CLDD)

Finally, the BetaShares Cloud Computing ETF could be worth considering for the $3,000 investment. It offers exposure to the digital backbone of modern business. Cloud platforms underpin everything from remote work and e-commerce to artificial intelligence and data analytics.

Its portfolio includes companies such as ServiceNow (NYSE: NOW), Shopify (NASDAQ: SHOP), and Snowflake (NYSE: SNOW), all of which enable businesses to operate, scale, and innovate online.

As organisations continue migrating systems away from on-premise servers, cloud adoption remains a multi-year trend rather than a short-term cycle. It was also recently recommended by Betashares.

The post 3 exciting ASX ETFs to buy with $3,000 in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Abb, Intuitive Surgical, Nvidia, PayPal, ServiceNow, Shopify, and Snowflake. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Coinbase Global and has recommended the following options: long January 2027 $42.50 calls on PayPal and short December 2025 $75 calls on PayPal. The Motley Fool Australia has recommended Nvidia, PayPal, ServiceNow, and Shopify. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

As the year comes to a close, I am covering the performance of many ASX ETFs in 2025. 

Last week I compared how Australia’s benchmark index has performed against the most influential US indexes. 

For a quick recap, the S&P/ASX 200 Index (ASX: XJO) rose roughly 6.4% in 2025. 

Meanwhile, the S&P 500 Index (SP: .INX) rose roughly 18%, and the NASDAQ-100 Index (NASDAQ: NDX) rose 22.2%. 

History tells us this was a slightly below average year for the ASX 200, which historically has brought returns of 9-10% per annum. 

There are a few ASX ETFs that track this index, so investors can gain exposure to this benchmark. 

However, there are plenty of ASX ETFs that outperformed the ASX 200 significantly this year. 

Let’s look at three of the best performing funds from ASX ETF provider Betashares. 

Betashares Energy Transition Metals Etf (ASX: XMET)

This ASX ETF was an absolute winner in 2025. 

It started the year trading at roughly $7.40 each, and has more than doubled to now trade at approximately $15.00. 

That’s good for a rise of 102%. 

This fund rode the tailwinds of booming commodity prices this year. 

This ASX ETF provides exposure to a portfolio of global companies in the Energy Transition Metals (‘ETMs’) industry. ETMs are raw materials that are essential to the transition to a less carbon-intensive economy.

It has holdings in global producers of copper, lithium, nickel, cobalt, graphite, manganese, silver and rare earth elements.

BetaShares Global Banks ETF – Currency Hedged (ASX: BNKS)

As the name suggests, this ASX ETF offers exposure to the largest global banks, excluding Australia. 

This includes banks such as JP Morgan Chase, Bank of America and Wells Fargo. 

At the time of writing, it is made up of 60 holdings, with its largest geographical weighting towards: 

• United States (27.7%)
• Canada (14.9%)
• Britain (10.0%)
• Japan (9.2%)

It proved a worthwhile investment this year, with the fund rising by approximately 46% in 2025.

What’s perhaps even more impressive is it boasts a track record of 19.51% returns per annum over the last 5 years. 

BetaShares Australian Small Companies Select Fund (ASX: SMLL)

Another emerging theme in 2025 has been the performance of small-cap shares.

In fact, as at December 17, small-cap shares had outperformed their large-cap counterparts by 14%. This marks the best relative outperformance in nearly 16 years.

This ASX ETF offers exposure to ASX-listed companies that are generally within the 91-350 largest by free float market capitalisation. 

In 2025, this fund has risen by more than 30%. 

The post 3 Betashares ASX ETFs that smashed the ASX 200 this year 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Shares of Meta Platforms (NASDAQ: META) have soared 443% over the past three years, closing at $661.50 on Dec. 22. At this share price, Meta now trades in the same range where companies such as Apple, Nvidia, and Tesla previously announced forward stock splits.

While Meta has never executed a forward stock split since going public, the company’s rising share price and growing earnings power have meaningfully increased the probability of a split in 2026.

Stock splits don’t change the value of any investor’s holdings, but here’s why a Meta stock split could prove beneficial for investors, if it were to enact one.

Upside drivers

Although stock splits do not change a company’s fundamentals, they tend to improve liquidity and broaden the investor base as they lower the per-share price (while increasing the number of shares), which can support higher trading activity and market valuation over time. While the availability of fractional shares has reduced some barriers to entry in stocks with high nominal share prices, research suggests that many retail investors still prefer owning full shares.

According to data from Bank of America‘s Research Investment Committee, companies that split their stock reported an average total return of 25.4% in the 12 months following the split announcement, more than double the 11.9% average return of the benchmark S&P 500 index in the same time frame. Hence, Meta’s stock could see an incremental upside from improved liquidity and broader participation following a stock split.

Meta reaches almost 3.5 billion people daily across its family of apps, giving it unmatched global scale and pricing power in digital advertising. Management has also guided for fiscal 2025 capital expenditures to be in the range of $66 billion to $72 billion, mainly for expanding its artificial intelligence (AI) infrastructure.

These investments are already showing results. Meta’s AI-driven ad tools are improving ad targeting efficiency and advertiser returns on ad spend. The company is also expanding its addressable market with newer ad surfaces, including on WhatsApp, Reels, and Threads.

Hence, for long-term investors, a potential stock split could serve as an accelerator on top of the company’s robust fundamentals, which can drive up its share prices in the coming months. I think Meta could be a stock-split stock that could make investors rich.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post The next stock-split stock that could make you rich appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Bank of America is an advertising partner of Motley Fool Money. Manali Pradhan, CFA 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 Apple, Meta Platforms, Nvidia, and Tesla. The Motley Fool Australia has recommended Apple, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Three of the largest ASX materials shares by market cap are Fortescue Metals Group (ASX: FMG), Rio Tinto Ltd (ASX: RIO) and BHP Group (ASX: BHP). 

In fact, BHP is the second largest company on the ASX. 

Because large materials stocks often make up a significant share of major indices, strong or weak performance in these companies can materially influence overall portfolio returns, particularly for investors with broad market or index-based exposure.

Fortunately for holders of materials stocks in 2025, it’s been a positive year.

How have materials shares performed in 2025?

The S&P/ASX 200 Materials (ASX:XMJ) index has significantly outperformed the ASX 200 this year. 

It has risen almost 31% since the start of the year. 

This has been influenced by rocketing gold and silver prices. Many mining stocks have also been, benefiting from soaring copper prices and a resilient iron ore price.

For context, the S&P/ASX 200 Index (ASX: XJO) is up a modest 6.4%. 

This was influenced by positive gains from Rio Tinto, Fortescue Metals and BHP shares. 

The best performing amongst the three has been Rio Tinto shares. 

The metals and mining company started the year trading at approximately $118 per share. 

Yesterday, Rio Tinto shares closed at more than $146 each. 

This is good for a gain of more than 24% in 2025. 

While not as profitable, it’s also been a strong year for Fortescue Metals shares which are up approximately 16% this year. 

Finally, BHP shares have also performed well, rising approximately 13.75% year to date.

Is there any more upside?

After a strong year, is it worth considering buying shares in these mining giants?

It appears fresh headwinds may be coming in the new year. 

Westpac has warned that a significant projected rise in global iron ore supply in 2026, alongside substantial cuts to Chinese steel output, could lead to a 20% drop in iron ore prices, according to The AFR.

At the time of writing, broker Bell Potter has a sell recommendation on Fortescue Metals shares. 

This is along with a price target of $19.30, which indicates a downside of more than 12% from yesterday’s closing price of $22. 

Elsewhere, analyst ratings via TradingView indicate that Rio Tinto and BHP shares are trading close to fair value. 

It lists a one year price target for BHP shares at $45.02 which is roughly 1% lower than current levels. 

The one year price target for Rio Tinto shares indicates approximately 5% downside from yesterday’s closing price. 

The post Did Fortescue, Rio Tinto or BHP shares perform better this year? appeared first on The Motley Fool Australia.

More reading

• Can the sizzling rally in ASX 200 copper stocks boost BHP shares in 2026? 
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• BHP, Macquarie, and Westpac: Naughty or nice? 3 popular ASX shares examined
• Record copper price shines a light on BHP shares and these two other ASX 200 mining stocks

Motley Fool contributor Aaron Bell has positions in BHP Group. 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.

Zip Co Ltd (ASX: ZIP) shares have enjoyed a remarkable comeback since notching one-year lows on 7 April.

On Monday, shares in the S&P/ASX 200 Index (ASX: XJO) buy now, pay later (BNPL) stock closed up 2.6%, trading for $3.34 apiece.

That sees Zip shares up a whopping 180.7% since closing for $1.19 on 7 April.

Or enough to turn an $8,000 investment into $22,960.

While 2026 might not see the same share price surge, it is worth recalling that back in February 2021 Zip stock was fetching $12.35 a share. Or some 270% above Monday’s close.

Why this fundie likes Zip shares

QVG Capital’s Chris Prunty counts among the fund managers with a bullish outlook for the ASX 200 BNPL stock in 2026 (courtesy of The Australian Financial Review).

According to Prunty:

The model’s appeal for shareholders lies in very high returns on capital and lower-than-assumed risk: loans are small, short in duration, and the book turns rapidly, keeping losses contained and capital needs light.

Prunty also said that management is now walking the walk when it comes to cost management, noting that operating discipline “is finally aligned to unit economics”.

And he isn’t along in recommending Zip shares as a buy.

Consensus analyst recommendations on CommSec have the stock listed as a ‘strong buy’. Breaking that down, seven analysts recommend the BNPL company as a strong buy, one recommends it as a moderate buy, and two recommend holding. There are no sell recommendations listed.

BNPL stocks like Zip shares have proven to be highly sensitive to interest rates. And with the US Federal Reserve still expected to cut rates one or two times in this easing cycle, the company – which has a big operating footprint in the US – could well enjoy some added tailwinds in 2026.

What’s the latest from the ASX 200 BNPL stock?

Zip released its first quarter (Q1 FY 2026) results on 20 October.

Highlights from the three months included all-time high cash earnings before taxes, depreciation and amortisation (EBTDA) of $62.8 million, up 98.1% year-on-year. And Zip’s total transaction volume (TTV) of $3.9 billion was up 38.7%.

That was spurred by a 5.3% year-on-year increase in the company’s active customers, which reached 6.4 million at the end of the first quarter.

Looking ahead, Zip CEO Cynthia Scott said, “We remain focused on executing our strategic priorities of growth and engagement, product innovation and platforms for scale.”

Investors responded to the Q1 results by sending Zip shares up 4.3% on the day.

The post Up 179% since April, why it’s not too late to buy Zip shares for 2026 appeared first on The Motley Fool Australia.

More reading

• The best Australian stocks to buy in 2026
• Top brokers name 3 ASX shares to buy next week
• 2 great ASX shares to buy for 2026: experts
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Flight Centre, Suncorp, and Zip shares

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 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.

Fortunately for investors that are focused on passive income, there is no shortage of opportunities on the Australian share market.

To narrow things down, let’s take a look at three that brokers believe could be top buys right now.

Here’s what they are recommending to clients:

Cedar Woods Properties Limited (ASX: CWP)

Bell Potter thinks that Cedar Woods could be an ASX dividend share to buy now.

Cedar Woods is one of Australia’s leading property companies. It owns a high-quality portfolio that is diversified by geography, price point, and product type. This leaves it positioned to be a big winner from Australia’s chronic housing shortage.

It is because of this that Bell Potter is so positive on its outlook. The broker expects this to support dividends per share of 35 cents in FY 2026 and then 39 cents in FY 2027. Based on its current share price of $8.65, this equates to 4% and 4.5% dividend yields, respectively.

The broker has a buy rating and $10.00 price target on its shares.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that has been given the thumbs up by brokers is HomeCo Daily Needs REIT.

It is a property trust specialising in essential-service retail centres. Its portfolio comprises 47 assets with a market value of $4.9 billion. This includes supermarkets, pharmacies, healthcare clinics, and other everyday-needs retailers that typically hold long, stable leases.

The company’s focus on essential retail makes this REIT relatively resilient to economic swings, and the cashflows have historically supported solid distributions.

Speaking of which, UBS is forecasting dividends of 9 cents per share in FY 2026 and again in FY 2027. Based on its current share price of $1.40, this would mean sizeable dividend yields of approximately 6.4% for both years.

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

Universal Store Holdings Ltd (ASX: UNI)

Finally, Universal Store could be a third ASX dividend share to buy now according to brokers.

It is a youth-focused fashion retailer behind the Universal Store, Perfect Stranger, and Thrills brands.

Bell Potter is positive on the company. It highlights that the company is executing very well on its national store rollout and private label expansion strategy.

It believes this will underpin fully franked dividends of 37.3 cents per share in FY 2026 and then 41.4 cents per share in FY 2027. Based on its current share price of $8.05, this equates to dividend yields of 4.6% and 5.15%, respectively.

Bell Potter has a buy rating and $10.50 price target on its shares.

The post Buy these amazing ASX dividend shares for passive income appeared first on The Motley Fool Australia.

More reading

• 3 strong ASX dividend shares I would buy and hold forever
• Beat low interest rates with these buy-rated ASX dividend stocks
• Top picks! Macquarie says these ASX stocks can rise 20% to 30%
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• How does Bell Potter view this real estate stock after yesterday’s 10% rise?

Motley Fool contributor James Mickleboro has positions in Universal Store. 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 HomeCo Daily Needs REIT and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When people think about Warren Buffett, they often picture someone poring over annual reports and hand-selecting individual stocks.

That approach has worked extraordinarily well for him. But what many investors don’t realise is that you can follow the style of Buffett’s strategy without ever having to choose a single ASX stock yourself.

In fact, Buffett has repeatedly said that most everyday investors are better off keeping things simple.

Investing like Warren Buffett

At the heart of Warren Buffett’s philosophy is a straightforward idea.

He likes to invest in high-quality businesses that can grow earnings over long periods of time. The Oracle of Omaha avoids speculation, short-term trading, and attempting to time the market.

Instead, he looks for durable companies with strong competitive advantages and fair valuations and then holds them patiently.

The good news is that you don’t need to identify those businesses one by one to apply this thinking. Broad, rules-based investing can achieve a similar outcome.

Use diversified ETFs as your foundation

One of Warren Buffett’s most famous pieces of advice is that most investors should simply buy a low-cost index fund and hold it for decades. That advice translates very neatly to the ASX.

A broad Australian market ETF, such as the Vanguard Australian Shares Index ETF (ASX: VAS), gives exposure to many of the country’s strongest businesses in one investment. Companies rise and fall over time, but the market as a whole has historically grown alongside the economy.

In fact, for every correction, crash, selloff, or meltdown, the Australian share market has eventually rebounded and hit new record highs.

Buying an index fund removes the risk of backing the wrong individual company while still capturing long-term growth.

You can also take this idea global. Buffett has often highlighted the strength of the US economy, and international-focused ETFs, such as the iShares S&P 500 ETF (ASX: IVV), allow Australian investors to benefit from the world’s most successful businesses without needing to analyse them individually.

Tilt towards quality

Another hallmark of Buffett’s style is his preference for businesses with economic moats. These are advantages that protect profits from competitors.

While identifying moats at a company level can be difficult, there are ETFs designed to tilt portfolios toward quality characteristics such as strong balance sheets, reliable cash flow, and pricing power. One of those is the VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT).

By owning a basket of high-quality stocks rather than trying to identify the single best one, you reduce risk while staying true to Buffett’s core principles.

Let time and compounding do the work

Perhaps the most underrated part of Warren Buffett’s success is patience. He has often said that his favourite holding period is forever.

Long holding periods allow compounding to work quietly in the background, turning steady returns into substantial wealth over time.

Investing regularly, reinvesting dividends, and resisting the urge to react to short-term market noise are all ways to mirror this mindset without active stock picking.

By following these principles, you give yourself a great chance of success over the long term.

The post How to invest like Warren Buffett without picking ASX stocks appeared first on The Motley Fool Australia.

More reading

• The forever portfolio: 3 ASX stocks to buy in 2025 and hold forever
• How to invest your first $500 in ASX shares the smart way
• 3 super strong ASX ETFs to buy with $10,000
• 3 ASX ETFs I’m buying in January 2026
• 5 amazing ASX ETFs for beginners to buy in 2026

Motley Fool contributor James Mickleboro has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended iShares S&P 500 ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.