The McMillan Shakespeare Ltd (ASX: MMS) share price is in focus today after the company delivered a record net profit after tax of $106.7 million for FY26, up 11.4%. Group revenue also climbed 6.8% to $602.1 million.

What did McMillan Shakespeare report?

• Revenue up 6.8% to $602.1 million
• Statutory net profit after tax (NPAT) from continuing operations up 11.4% to $106.7 million
• Underlying net profit after tax and amortisation (UNPATA) up 13.8% to $107.9 million
• Underlying EBITDA grew 14.1% to $180.7 million
• Fully franked final dividend of 70 cents per share, total FY26 dividend 132 cents per share
• Return on capital employed (ROCE) rose to 62.1%

What else do investors need to know?

McMillan Shakespeare saw healthy growth across all segments in FY26, with novated leases under management surging 13.5% to 90,000 and salary packaging customers up 7.1% to 402,000. The plan and support services business also expanded its customer base, and productivity gains were delivered through ongoing investments in technology, automation, and artificial intelligence.

The company reported a strong balance sheet, with net assets of $126.4 million and a low debt-to-EBITDA ratio of 0.4x. MMS also announced an on-market share buyback of up to $10 million to be executed over 12 months.

What’s next for McMillan Shakespeare?

The company enters FY27 from a position of strength, expecting the supportive environment for novated leasing to continue, helped by ongoing electric vehicle incentives and cost-of-living pressures. Demand is anticipated to remain steady across salary packaging and fleet management, while the plan and support services segment is well placed for regulatory changes in the NDIS.

MMS plans to deliver productivity gains, broaden sales capability, and invest selectively in customer propositions as it continues to focus on growth, digital innovation, and enhancing customer experience.

McMillan Shakespeare share price snapshot

The McMillan Shakespeare share price has outperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a gain of almost 8%.

View Original Announcement

The post McMillan Shakespeare shares on watch on strong FY26 profit and 70c dividend appeared first on The Motley Fool Australia.

More reading

• Virgin Australia posts robust FY26 results and first dividend since re-listing
• Channel Infrastructure secures $130m bp storage contract in Marsden Point growth plan
• Why I think this is a top ASX tech share to buy today
• 3 high-yield ASX dividend shares to buy with $10,000
• Sky New Zealand FY26 earnings: Profit up 190%, dividend jumps 45%

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 McMillan Shakespeare. 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.

Building a $1 million share portfolio can sound like a goal reserved for people starting with a lot of money.

But time and consistency can change the picture considerably.

If I were aiming for that target over the next 20 years, this is how I would approach it.

Start with $20,000 and keep adding

Let’s assume I begin with a $20,000 ASX share portfolio and invest another $1,500 each month.

That works out to $18,000 of new money every year.

If the portfolio produces an average return of around 9% per annum, those contributions could grow to approximately $1 million over 20 years.

I should point out that there are no guarantees the market will deliver 9% annually. Returns will vary considerably from year to year, but 9% is roughly in line with the historical average annual return.

I think this example shows why I would focus less on finding one spectacular investment and more on keeping money invested for a long time.

I would also reinvest dividends where appropriate and give successful investments time to grow rather than constantly trading in and out of the market. This will allow compounding to do its work.

Focus on quality businesses

If I were choosing individual ASX shares, I would want companies capable of becoming more valuable over many years.

That means looking for strong competitive positions, healthy balance sheets, capable management, and genuine opportunities to keep growing.

This could mean ASX shares like Goodman Group (ASX: GMG), Cochlear Ltd (ASX: COH), TechnologyOne Ltd (ASX: TNE), and Macquarie Group Ltd (ASX: MQG).

The goal would not be to predict which share performs best next month. I would be trying to assemble a collection of businesses capable of compounding earnings and value throughout much of the 20-year period.

Diversification would also be important. It is worth remembering that even businesses that look excellent today can disappoint. So, having a portfolio with sufficient diversification could offer some downside protection.

Consistency could be the biggest advantage

I think the $1,500 monthly contribution into ASX shares is just as important as the return assumption.

There will inevitably be periods when markets fall sharply and investing feels uncomfortable.

Those could actually be some of the most valuable months to keep contributing, because the same $1,500 buys more shares at lower prices.

Foolish takeaway

I would not expect the journey to $1 million to be smooth.

But starting with $20,000, investing $1,500 each month, and targeting a long-term return of around 9% gives the goal a realistic foundation.

For me, the strategy comes down to three things: quality investments, consistent contributions, and enough patience to let compounding do its work.

The post How I’d aim to build a $1 million ASX share portfolio in 20 years appeared first on The Motley Fool Australia.

More reading

• Where I’d invest $10,000 in ASX shares in September
• How I’d use ASX shares to build a second source of wealth
• Two ASX data centre stocks rated a buy
• 3 ASX shares I’d buy if I were a beginner today
• 2 ASX shares highly recommended to buy: Experts

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

Investing can become complicated very quickly.

There are individual shares to research, results to follow, broker notes to read, and market swings to understand.

But not every investor wants to build a portfolio company by company.

For those who want a simpler way to invest, ASX exchange traded funds (ETFs) can do a lot of the heavy lifting.

Here are three ASX ETFs to consider buying if you want to keep things simple.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The Vanguard MSCI Index International Shares ETF could be a good starting point.

This fund gives investors exposure to a large collection of companies listed across developed markets.

I think this is valuable for Australian investors because the local share market is quite concentrated. Banks, miners, supermarkets, and a handful of healthcare and industrial names do a lot of the work.

The Vanguard MSCI Index International Shares ETF changes that in one trade. It gives investors access to global companies involved in technology, healthcare, financial services, consumer products, industrials, and communications.

That makes it a simple way to move beyond Australia without having to choose which overseas shares to buy.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF is another ASX ETF that can keep investing simple.

This fund tracks the S&P 500 Index, which is where you’ll find 500 of the largest listed companies in the United States.

That includes many of the businesses already shaping the global economy through cloud computing, artificial intelligence, software, payments, healthcare, consumer brands, industrial products, and digital advertising.

There is some overlap with the Vanguard MSCI Index International Shares ETF because the United States is such a large part of global share markets.

But the iShares S&P 500 ETF gives investors a more direct exposure to corporate America and the S&P 500, which has been one of the world’s most important long-term wealth-building markets.

For investors who want a simple, low-fuss way to own leading US companies, this ETF could be worth considering.

Betashares Global Cybersecurity ETF (ASX: HACK)

A third ASX ETF to look at is the Betashares Global Cybersecurity ETF.

It gives investors access to companies helping protect networks, cloud systems, devices, data, payments, and digital identities.

This could be a good place to be. As more of the economy moves online, more money needs to be spent keeping it safe.

Businesses now rely on cloud software, remote access, online payments, artificial intelligence tools, and connected systems. None of that works properly if security fails.

The Betashares Global Cybersecurity ETF will not be as diversified as a broad global ETF, so investors should expect more ups and downs. But as a long-term theme, cybersecurity looks like a problem that companies cannot afford to ignore.

The post 3 ASX ETFs to buy for simple investing appeared first on The Motley Fool Australia.

More reading

• Is the Vanguard US Total Market ETF (VTS) the best buy for investing in America?
• Why I think the IVV ETF is a strong buy for ASX investors
• 3 amazing ASX ETFs for Aussie investors in September
• VGS vs VHY: Which Vanguard ETF comes out on top?
• Why every Aussie investor should own one of these ASX ETFs

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 BetaShares Global Cybersecurity ETF and iShares S&P 500 ETF. The Motley Fool Australia has recommended Vanguard Msci Index International Shares 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.