With around a month left before the end of FY26, I think now could be a good time to put fresh money to work in ASX shares.

I would not rush just because the financial year is ending. The market will still be there in July. But if I had $20,000 ready to invest, I would use this period to add quality, global exposure, and long-term growth to my portfolio.

Here is how I would think about it.

I’d start with a global core

The first place I would look is an exchange-traded fund (ETF) with broad international exposure.

For me, the iShares S&P 500 AUD ETF (ASX: IVV) would be a strong candidate.

The IVV ETF gives investors exposure to America’s largest listed companies. I like that because the US market has a depth of world-class businesses that is difficult to replicate on the ASX alone.

This is not just about owning the biggest technology names. The S&P 500 includes companies across healthcare, financial services, consumer brands, industrials, digital platforms, payments, software, and communication services.

I’d consider a quality ASX blue chip

I would also look for direct exposure to a high-quality Australian business.

One ASX share I would consider is Macquarie Group Ltd (ASX: MQG).

Macquarie is not just a bank. It is a global financial group with exposure to asset management, infrastructure, commodities, markets, private capital, and the energy transition.

That makes earnings less predictable than a traditional domestic bank, but I think it also gives Macquarie more ways to grow over time.

I like businesses that can adapt as markets change. Macquarie has shown over many years that it can move capital and expertise into areas where it sees opportunity. That flexibility is valuable.

I’d keep room for an ASX tech stock

Finally, I would consider using part of the $20,000 to buy Xero Ltd (ASX: XRO) shares.

Xero has built a strong position in small business accounting software, but I think the bigger opportunity is broader than that.

It can help businesses with invoicing, payroll, tax, payments, cash flow, reporting, and more automated financial tasks over time.

The share price can be volatile, and investors still need to watch valuation and execution. But I think Xero has the sort of global software opportunity that can reward patience.

Foolish takeaway

If I were investing $20,000 before the end of FY26, I would focus on quality and long-term growth rather than trying to predict what the market will do over the next month.

A mix of global exposure, high-quality Australian businesses, and a world-class ASX tech stock would be my preference. That gives the portfolio several ways to grow without making the whole plan depend on one stock or one theme.

The end of the financial year can be a useful prompt to review a portfolio. But the real goal is much bigger than 30 June. I would want these investments working for me for years.

The post How I’d invest $20,000 in ASX shares before the end of FY26 appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares that could build serious wealth for shareholders
• 3 popular ASX 200 shares that experts rate as strong buys
• Top brokers name 3 ASX shares to buy now
• 5 years ago, $10,000 bought 274 iShares S&P 500 ETF (IVV) units. But how many would it buy now?
• Got $50k of savings? Here’s how I’d turn that into passive income of $10k a year

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 Macquarie Group, Xero, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Macquarie Group and Xero. The Motley Fool Australia has recommended 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.

BHP Group Ltd (ASX: BHP) shares finished higher on Wednesday as investors weighed up fresh comments about China’s growing influence over iron ore pricing.

The mining giant ended the session up 1.54% to $61.28.

It has been a huge year already for shareholders. BHP shares are now up around 35% in 2026 and 59% over the past 12 months.

The stock is also trading close to the top of its 52-week range, which runs from $35.52 to $62.72.

So, what has put the ASX mining heavyweight back in focus?

China talks are getting tougher

According to The Australian, BHP’s WA iron ore boss, Tim Day, expects talks with China’s state-backed China Mineral Resources Group (CMRG) to get harder.

CMRG was created by Beijing to give Chinese steel mills more weight when negotiating iron ore deals.

That puts it in a strong position with Australian miners, given China is still the world’s biggest buyer of iron ore.

The report said Mr Day believes China now has more ability to push prices lower and secure better terms. He also said BHP had found the recent talks with CMRG difficult.

Chinese media said CMRG secured a 1.8% discount on iron ore from BHP. The same reports said the group also pushed the miner away from a previous index used to set prices.

Why buyers are still backing the rally

The tougher China backdrop hasn’t been enough to stop investors buying.

BHP’s share price reaction suggests the market is still more focused on the company’s scale, earnings power, and exposure to major commodities.

There may also be some relief that the earlier tensions have cooled between BHP and the Asian superpower.

Last year, there were concerns about China’s approach to BHP cargoes and how far the standoff could go. The latest comments suggest the talks are still difficult, but they are moving through the usual commercial channels.

The cost pressure isn’t going away

Mr Day said BHP is focused on what it can control, including keeping production costs down and improving productivity at its Western Australian operations.

The Pilbara remains one of the world’s most important iron ore regions, but it isn’t getting cheaper to operate there.

Miners are dealing with higher costs, union pressure, and ongoing demands to invest in lower-emissions equipment.

The Australian also reported that BlackRock portfolio manager Olivia Markham said Australia had lost some focus on productivity and that other places around the world were cheaper to operate.

That is the balance investors are now weighing.

BHP shares have had a massive run, and the market is still backing the stock. But the company is also facing tougher customers, a higher-cost operating base, and pressure to keep its Pilbara assets competitive.

The post BHP shares near 52-week high, but China just made things more complicated appeared first on The Motley Fool Australia.

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• How do ASX dividend shares compare to savings deposit rates today?
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• Invested $10,000 in Rio Tinto, Fortescue or BHP shares 5 years ago? Guess which one has gained the most

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

Block Inc. (ASX: XYZ) has slipped off the radar for many ASX investors.

That is not too surprising. The ASX 200 share is down almost 25% from its high, and the market has become much more selective with growth stocks.

But I think Block could be a comeback candidate worth watching.

This is still a business with major positions across payments, small business tools, consumer finance, buy now pay later, and digital banking. I do not think the long-term opportunity has disappeared.

Two ecosystems with a lot of reach

The reason I like Block is that it touches both sides of commerce.

Square helps sellers accept payments, manage point-of-sale systems, access software, and run more parts of their businesses.

Cash App serves consumers, with payments, banking-style services, peer-to-peer transfers, and other financial tools.

That gives Block a large opportunity if it can keep connecting those ecosystems over time.

I like this because small businesses and consumers both want simpler financial tools. Sellers want to save time, reduce admin, and get paid. Consumers want fast, useful, easy-to-use money products.

Block is trying to sit in the middle of that activity.

AI could make the products more useful

The part of Block’s latest update that stood out to me was its focus on practical artificial intelligence (AI).

Moneybot is now live across Cash App, while Managerbot is being scaled across Square sellers. These tools are designed to help customers and sellers take action, not just receive information.

That is the kind of AI use case I find interesting.

If AI can help a seller spot a problem, improve a workflow, understand patterns, or act before an issue grows, it could make Square more valuable.

If Cash App can use AI to help customers make better financial decisions, that could deepen engagement.

This is still early. Investors should not assume every AI product will become a major profit driver. But Block has a large customer base, and even modest improvements in engagement or efficiency could add up.

A stronger business than the market may remember

I also think Block is a more focused business than it used to be.

The company has been working to improve profitability while still growing. Its latest quarterly update pointed to strong gross profit growth, improving operating income, and rising engagement across key areas of Cash App and Square.

The main point is that Block is not just relying on hype. It is trying to grow while becoming more disciplined.

That combination can be powerful if management keeps executing successfully.

Foolish takeaway

Payments and fintech are competitive, consumer behaviour can shift, and investor sentiment towards growth stocks can change quickly.

But I think the market may be underappreciating the size of the opportunity. Block has two large ecosystems, a clearer focus on profitability, and emerging AI tools that could make its products more useful.

After a share price fall of almost 25% from its high, I think this forgotten ASX 200 share could be worth another look.

The post Down 25%: Could this forgotten ASX 200 share make a comeback? appeared first on The Motley Fool Australia.

More reading

• Why Afterpay owner Block shares are looking undervalued
• Why these ASX tech stocks could be no-brainer buys
• Here are the top 10 ASX 200 shares today
• Why Block, News Corp, REA Group, and TechnologyOne shares are storming higher today
• Why QBE, Block and Macquarie shares are grabbing headlines on Friday

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 Block. 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.

Harvey Norman Holdings Ltd (ASX: HVN) has not been the market’s favourite ASX 200 dividend share in 2026.

Its shares are down 35% since the start of the year.

That is understandable. Big-ticket retail has been under pressure, consumers have been cautious, and investors have had plenty of other dividend shares to choose from.

But I think Harvey Norman could be a better buy than it looks at first glance.

At the current share price of $4.54, the stock offers a combination of income, value, and recovery potential that could appeal to patient investors.

A large fully franked yield

The first attraction is the dividend. According to CommSec, the consensus estimate is for Harvey Norman to pay dividends per share of 31 cents in FY26 and 31 cents again in FY27.

Based on the current share price, that represents a forward dividend yield of approximately 6.8%.

That is a large yield, and it is expected to be fully franked.

For Australian income investors, franking credits can make a meaningful difference to the after-tax return, depending on personal circumstances.

Of course, dividends are not guaranteed. Harvey Norman is exposed to the consumer cycle, and earnings can move around when shoppers pull back on furniture, appliances, electronics, and homewares.

But the forecast income is a clear reason I think the stock deserves attention.

The valuation looks reasonable

The second attraction is valuation. CommSec’s consensus estimates are for earnings per share of 38.5 cents in FY26 and 39 cents in FY27.

At $4.54, that puts Harvey Norman on a forward price-to-earnings ratio of around 12 times.

That does not scream deep bargain on its own, but I think it looks reasonable for a business with a well-known brand, global operations, and a large property portfolio.

The property side of Harvey Norman is important. This is not just a retailer renting every store and hoping for strong sales. The company has meaningful property backing, which gives the investment case another layer.

A consumer recovery could help

The third reason I think Harvey Norman is interesting is the potential for better conditions ahead.

When households feel stretched, big-ticket purchases are easy to delay. A new lounge, fridge, computer, or bedroom suite can wait.

But delayed demand does not disappear forever. If interest rates ease, housing turnover improves, or consumer confidence lifts, Harvey Norman could benefit from a better retail backdrop.

The company does not need the economy to boom for sentiment to improve. Even a shift from very cautious to slightly more confident could help.

Foolish takeaway

Harvey Norman is not a fashionable ASX 200 dividend share right now, and that may be part of the opportunity.

The yield is attractive, the valuation looks undemanding, and the business has more going for it than the current share price may suggest.

This is still a cyclical retailer, so patience is required. But for investors looking for fully franked income with recovery potential, I think Harvey Norman is worth a closer look.

The post Could this unloved ASX 200 dividend share be a better buy than it looks? appeared first on The Motley Fool Australia.

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• 5 ASX retail shares whose 12-month price targets just got slashed
• How much do I need to invest in ASX shares for $500 a month of passive income?

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

As investors prepare to flip their calendars to a fresh month, there’s a growing case for targeting ASX 200 value shares. 

At its core, value investing involves identifying companies whose shares are trading below what they are actually worth. 

This is based on their underlying financial performance, assets, and long-term earning potential.

Value investing usually targets mature, blue-chip stocks rather than small-caps. 

With that in mind, here are three ASX 200 stocks that could fall into this category. 

PEXA Group Ltd (ASX: PXA)

PEXA provides a digital conveyancing platform for real estate settlements in Australia. The company touts itself as offering world-first technology that facilitates near real-time tracking of settlements and faster clearance of funds.

This ASX 200 stock has struggled in 2026, falling 20% in that span. 

However analysis from brokers and experts indicates this quality company has likely been oversold. 

Despite falling significantly, its fundamentals still look strong. 

In its most recent 3Q26 results, the company posted steady growth in transaction volume and national market penetration. 

Looking ahead, it also reaffirmed NPAT guidance for FY26 at the top end of the $15m–$25m range.

Following these results, the team at Ord Minnett placed a buy rating and $20.00 price target on this ASX 200 stock. 

Ord Minnett was pleased with the ongoing momentum in Australian property transaction volumes. 

At the time of writing, PEXA shares are trading for around $10.70, indicating a potential 87% upside. 

Guzman Y Gomez Ltd (ASX: GYG)

It has been a volatile year for Guzman Y Gomez shares. 

The fast-casual Mexican food chain saw its share price fall 25% to start the year, before soaring last week on the back of news it had withdrawn from the US market. 

Investors apparently saw this move as a disciplined one from management, as the company refocussed its efforts to domestic growth. 

At the time of writing, GYG shares remain down 37% over the last year, and still firmly sit in undervalued territory according to experts. 

Morgans has put a buy rating and $29.40 price target on this ASX 200 stock, indicating an upside potential of 52% from current levels. 

Life360 Inc (ASX: 360)

Life360 is a United States-based software development company. The company’s core product is a private family and friends social networking app that allows users to communicate and share their locations.

It was a stock market darling in 2025, but has since tumbled 42% year to date. 

Despite this fall, Bell Potter believes the ASX 200 company has a healthy base of paid subscribers, and is strategically implementing AI into its model. 

The broker has a recent price target of $33 on this ASX 200 stock, indicating an upside potential of 74%. 

The post 3 highly undervalued ASX 200 stocks to target in June with up to 87% upside 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 positions in and has recommended Life360 and PEXA Group. The Motley Fool Australia has positions in and has recommended Life360 and PEXA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

PLS Group Ltd (ASX: PLS) shares closed in the red on Wednesday afternoon. At the close of the ASX, the ASX mining stock was down around 2% to $6.28 a piece.

But the decline barely dented PLS Group’s gains this year.

The Australian lithium miner’s shares have had a fantastic run over the past year. The shares are still up around 46% for the year-to-date and its annual increase is enormous.

So, if I’d invested $5,000 in PLS Group shares 12 months ago, what would it be worth today?

At the time of writing, the share price is a huge 369% higher than just 12 months ago.

That means that $5,000 invested in the ASX mining stock in late-May last year would be worth around $23,450.

That’s an impressive increase.

Even if you invested the same amount when the ASX first opened in January this year, your $5,000 investment would already be worth around $7,300.

Why has the share price climbed so high, and so quickly?

A lot of the share price increase over the past 12 months is due to a rally in lithium prices and improved sentiment. This was primarily driven by a surge in interest in electric vehicles (EVs) and battery energy storage. 

Global EV sales have been rising faster than carmakers can keep up, and demand for grid-scale energy storage amid a shift towards renewable energy is also soaring.

Ongoing tension in the Middle East, and consequential oil supply restraints, has also prompted a significant shift towards EVs as an alternative to petrol-fueled vehicles.

And as owner and operator of one of the world’s largest independent hard rock lithium mines, Pilgangoora in Western Australia, PLS has naturally scooped up a lot of the demand.

But it’s not just market fundamentals that have pushed the company’s share price higher over the past year. The business is also booming.

The ASX mining stock posted its third quarter update in late-April. It revealed a huge 52% quarter-on-quarter revenue increase for the March quarter. This was fuelled by a 61% increase in the average realised spodumene price PLS Group received over the three months, which rose to US$1,867 per tonne (SC5.2 equivalent).

The miner also reported a 12% increase in production to 232,400 tonnes. It also said it sold 195,700 tonnes of spodumene over the same period.

What’s next for the ASX mining shares? Can they keep climbing?

It looks like analyst sentiment on the ASX mining stock has started shifting, with many anticipating that the stock is reaching (or has now passed) fair value after the latest price rises.

TradingView data shows that eight out of 16 analysts have a buy or strong buy rating on the stock. Five analysts have a hold rating, and another five rate the shares as a sell or strong sell.

The average target price of $5.66 now implies a potential 10% downside at the time of writing.

Forecasts are quite split, however. Some think the shares have the potential to increase another 15% to $7.20 while others tip the shares to decline up to 59% to $2.60.

The post If I’d invested $5,000 in this ASX mining stock 12 months ago I’d have over $23k today! appeared first on The Motley Fool Australia.

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• Why Alkane Resources, Bapcor, PLS, and Resolute Mining shares are sinking today
• ASX lithium stocks surge more than 300%: is there more to come?

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

Some ASX shares are built for short bursts of excitement. Others can compound value over many years by reinvesting at attractive rates, expanding into larger markets, and strengthening their competitive positions.

That second group can be powerful for patient investors, as high-quality businesses with long runways can create serious wealth over time.

Here are three that could do this over the next decade:

Hub24 Ltd (ASX: HUB)

The first ASX share to look at is Hub24.

It operates an investment platform used by financial advisers and their clients. These platforms help manage portfolios, reporting, administration, and access to investment products in one place.

Hub24 has benefited from a major shift in Australia’s wealth management industry. Advisers have been moving away from older platforms and toward technology-led providers that offer better functionality, flexibility, and service.

This has helped the company win market share and attract growing funds under administration. And as more money flows onto its platform, Hub24 benefits from scale, recurring revenue, and deeper relationships with advisers.

There will always be competition in platform technology. But Hub24 has built a strong position in a large industry that still has room to modernise.

Light & Wonder Inc (ASX: LNW)

Another ASX share that could build wealth over time is Light & Wonder.

It operates in the global gaming industry, providing gaming machines, digital casino content, and social gaming products. This gives it exposure to several parts of a large entertainment market.

Light & Wonder’s strength is its content. Successful gaming products rely on engaging maths models, strong brands, player appeal, and distribution across land-based and digital channels. When a company gets that mix right, popular titles can travel across markets and formats.

The business also has a global opportunity. Casinos, digital operators, and social gaming platforms all need fresh content to keep players engaged. That creates a long runway for companies that can consistently develop and distribute successful games.

This is not a risk-free sector. Regulation, competition, and consumer trends all matter. But Light & Wonder has a platform that gives it multiple ways to grow earnings if it continues executing well.

Macquarie Group Ltd (ASX: MQG)

A third ASX share to consider is Macquarie.

The investment bank and asset manager has built one of the most impressive long-term track records on the ASX. Its operations span asset management, commodities, infrastructure, green energy, banking, and markets.

What makes Macquarie interesting is its ability to find growth opportunities across cycles. It is not reliant on one narrow earnings stream. Some divisions perform better in volatile markets, while others benefit from long-term investment themes.

Its global infrastructure and asset management capabilities are particularly important. Demand for capital to fund energy transition, data infrastructure, transport assets, and essential services could remain significant for decades.

Overall, few ASX financial shares have shown the same ability to adapt, reinvest, and grow across different environments as Macquarie.

The post 3 ASX shares that could build serious wealth for shareholders 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 Hub24, Light & Wonder Inc, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Hub24 and Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) enjoyed a positive hump day session this Wednesday, reversing some of the losses we saw yesterday with many ASX shares pushing higher.

After some morning wobbles, the ASX 200 spent most of the session in green territory, and ended up closing with a happy 0.69% rise. That leaves the index at 8,717.7 points.

This pleasant Wednesday session for Australian investors comes after a mixed return to trading for the American markets last night, following Monday’s public holiday.

The Dow Jones Industrial Average Index (DJX: .DJI) gave up some initial optimism to close down 0.23%.

However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared better, gaining a solid 1.19%.

But let’s return to the local markets now and look a little closer at what was happening with the different ASX sectors this hump day.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Megaport and SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Data#3. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

As an Australian, I love investing in Australian companies. There are many high-quality shares listed on the ASX, and many have a home in my personal investing portfolio. However, the ASX is only a small patch of the global investing garden. In fact, four of my five top stocks in the world are found beyond Australia’s shores. Today, let’s go through those five, and why I think they are the best companies money can buy.

My top five favourite stocks in the world

Coca-Cola Co (NYSE: KO)

Is there a product that is more famous and more ubiquitous in the world than Coca-Cola? I challenge you to name one. The Coca-Cola Company is the business behind the brand, controlling global ownership of this invaluable trademark. Coke has been a solid investment for decades.

No challenger can dislodge its century-old brand, nor consumers’ love for it. This makes Coca-Cola recession-proof, inflation-resistant and a formidable investment. Warren Buffett held Coca-Cola shares for decades, and that says more than anything I can.

Procter & Gamble Inc (NYSE: PG)

Procter & Gamble may not be the household name that Coca-Cola is. But I’d wager that there may be even more Procter & Gamble products than Coca-Cola ones in most Australians’ houses as I write. This consumer staples giant is the name behind beloved household brands like Gillette, Oral-B, Fairy, Head & Shoulders, Vicks, Tide, Olay, and Old Spice, amongst others.

These brands have graced households all over the world for decades. Given how ingrained into daily life they are, this makes Procter & Gamble another top stock, and a defensive, reliable investment one can hold for decades.

Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL)

Google-owner Alphabet is next up. This company’s incredibly successful Google Search product, its flagship, needs little introduction. It is nothing less than the world’s gateway to the internet, and has been for 20 years. These days, though, Alphabet has far more going for it than just Google Search. It also owns a leading AI platform in Gemini. Not to mention one of the world’s most popular entertainment platforms, YouTube. Alphabet’s other ventures include Google Cloud, and self-driving vehicle company Waymo.

There is so much to like about Alphabet. It is my yp Magnificent 7 stock, and is set, at least in my view, to be a world-leading company for decades to come.

Nintendo Co Ltd (TYO: 7974)

Next up, we have another household name in Nintendo. It’s my opinion that Nintendo owns some of the most valuable intellectual property in the world. It has been a leader in gaming since the 1980s, with many of its original characters, including Donkey Kong and Mario, remaining entertainment staples today. In addition, Nintendo also part owns the most successful entertainment franchise in history: Pokémon.

This is a company that knows the value of its property and knows how to protect and leverage it. It has gone from strength to strength in recent years, and, in my view, remains a top stock and a screaming buy for long-term investors.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Our final stock is our only ASX share on this list. Washington H. Soul Pattinson and Co is an investment house. It manages a vast, underlying portfolio of investments for its shareholders. Soul Patts has been doing this for decades, and is very good at it.

Earlier this year, the company confirmed that its shareholders have enjoyed a total return (share price growth plus dividends) of 12.9% per annum over the 25 years to 31 January 2026. That’s well above what the broader market returned. This top stock also has the best dividend growth streak on the ASX, having delivered an annual dividend hike every year since 1998.

The post Screaming buys: My top 5 favourite stocks in the world appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Alphabet, Coca-Cola, Procter & Gamble, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Nintendo, and 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 Australia has recommended Alphabet. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woolworths Group Ltd (ASX: WOW) is the kind of ASX 200 share that I think deserves a spot in most portfolios.

This is a business built around everyday spending. Millions of Australians shop at Woolworths each week, and that gives the company a strong position in a category that remains essential through different economic conditions.

At a current share price of $34.40, I think Woolworths shares could be worth buying for three key reasons.

Defensive demand

The first reason I like Woolworths is its defensive nature.

Food and household essentials are not optional purchases in the same way as holidays, furniture, electronics, or luxury goods. Households may change what they buy when money is tight, but they will always need groceries.

That gives Woolworths a level of earnings resilience that many companies cannot match.

This does not mean the business is immune from pressure. Shoppers are value-conscious, competition remains strong, and supermarkets need to keep investing in prices, stores, supply chains, loyalty, and online capability.

But I think Woolworths is well placed to deal with those challenges.

A solid growth outlook

The second reason is that Woolworths is not just a defensive income share. There is still robust earnings growth expected over the medium term.

According to CommSec, the consensus estimate is for Woolworths to generate earnings per share of $1.30 in FY26, $1.48 in FY27, and $1.64 in FY28.

That implies earnings growth of close to 14% in FY27 and around 11% in FY28.

I think that is a solid outlook for a supermarket business.

Looking further down the line, the company has several ways to improve. It can keep building its online grocery business, use loyalty and data more effectively, improve store productivity, expand private label, and invest in supply chain efficiency.

None of those things will make headlines. But in a business as large as Woolworths, small improvements can still add up.

Dividends can keep rising

The third reason is income.

CommSec’s consensus estimates suggest Woolworths could pay dividends per share of 99.5 cents in FY26, $1.13 in FY27, and $1.28 in FY28.

Based on the current share price of $34.40, that would represent forward dividend yields of approximately 2.9%, 3.3%, and 3.7%, respectively.

Those are not the biggest yields on the ASX, but combined with potential capital gains, I think the overall investment outlook is compelling.

However, the valuation is worth acknowledging. Based on consensus estimates, Woolworths is trading on around 26 times FY26 earnings, 23 times FY27 earnings, and 21 times FY28 earnings.

That is not cheap. But I think Woolworths deserves to trade on a premium to many ASX shares because of its defensive qualities, market position, and expected earnings recovery.

Foolish takeaway

Woolworths shares at around $34 are not a bargain-bin opportunity.

But not every good investment starts with an obviously cheap valuation. Sometimes the appeal is owning a high-quality business with reliable demand, a strong market position, and a path to better earnings over time.

That is how I see Woolworths today. The company offers defensive exposure, forecast earnings growth, and a dividend stream that could become more attractive over the next few years. For patient investors, I think that makes the shares worth buying.

The post 3 reasons to buy Woolworths shares at $34 appeared first on The Motley Fool Australia.

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