Tag: Stock pick

It was a busy week for Australia’s top brokers. This has led to a number of broker notes being released. 

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Corporate Travel Management Ltd (ASX: CTD)

According to a note out of Morgans, its analysts have resumed coverage on this corporate travel specialist’s shares with a buy rating and $3.06 price target. Morgans notes that after a long suspension, Corporate Travel Management has returned to trade after lodging its FY 2025 and FY 2026 audited accounts. This has seen material earnings restatements in response to years of overcharging clients and will result in refunds of $246m by September 2027. While this is clearly disappointing, Morgans remains positive. It believes earnings growth should resume from FY 2028 given new management’s strategy. This view is supported by the acceleration of new client wins in the first two months of FY 2027, which the broker sees as encouraging. Overall, the broker believes it is a turnaround story under new leadership with material upside potential if it executes. The Corporate Travel Management share price ended the week at $2.46.

Life360 Inc. (ASX: 360)

A note out of Citi reveals that its analysts have retained their buy rating and $28.80 price target on this location technology company’s shares. Citi was pleased to see Life360’s app downloads accelerate to 8% growth year-on-year in August from flat growth in July. This was driven largely by its US business, which delivered a record month. Looking ahead, the broker believes Life360 is well-placed to deliver a marked improvement in its EBITDA margin in the fourth quarter. This is expected to be supported by seasonal advertising and hardware revenue. The Life360 share price was fetching $19.73 at Friday’s close.

Metcash Ltd (ASX: MTS)

Analysts at Macquarie have upgraded this wholesale distributor’s shares to an outperform rating with a $3.20 price target. According to the note, the broker was pleased with Metcash’s trading update, highlighting that food sales were better than expected. And while its growth in the liquor segment was softer, it believes that the company is winning market share. Cost pressures are weighing on margins, but overall, Macquarie remains positive on the investment opportunity here and is recommending it to clients. The Metcash share price ended the week at $2.83.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Corporate Travel Management recently resumed trading – Here’s why it could be a buy
• 9 ASX 200 shares earning strengthened buy ratings this week
• Top 3 ASX shares I’d buy after the most recent sell-off
• Life360 shares are 60% below broker targets. Here’s why
• Brokers rate these 5 ASX shares as a strong buy, and tip upsides of 28% to 62%

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Corporate Travel Management, Life360, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Corporate Travel Management and Life360. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There is something appealing about investments you do not have to keep second-guessing.

Buy them, add to them over time, and let the underlying companies do the work.

Of course, no investment should literally be ignored forever. But for investors with a very long time horizon, these five ASX exchange traded funds (ETFs) could be strong candidates to hold for decades.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF could be an obvious place to start.

It gives investors exposure to 500 of America’s largest listed companies.

The attraction here is not simply that the United States has performed well historically.

It is that the S&P 500 continually evolves. Successful companies grow into larger positions, new leaders enter the index, and businesses that decline in importance can eventually drop out.

That makes the iShares S&P 500 ETF a simple way to back the long-term strength of corporate America without trying to predict today’s winners decades into the future.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF takes a more selective approach.

It invests in US companies that Morningstar believes possess sustainable competitive advantages and are trading at attractive valuations.

Those advantages could come from brands, intellectual property, cost advantages, network effects, or customers that are difficult to lose.

I think this philosophy makes plenty of sense for a long holding period.

A business that can defend its profits from competitors has a better chance of compounding earnings for many years.

Vanguard FTSE All-World ex-US Shares Index ETF (ASX: VEU)

The Vanguard FTSE All-World ex-US Shares Index ETF could be a good option for investors wanting to look beyond America.

It invests across developed and emerging markets outside the United States.

This provides exposure to companies in Europe, Japan, Asia, Canada, and other markets around the world.

Nobody knows which country will produce the strongest returns over the next 20 years.

VEU allows investors to participate in growth across a huge part of the global economy without needing to make that call.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF is a more targeted long-term idea.

It invests in major Asian technology companies across semiconductors, ecommerce, gaming, digital platforms, and other areas.

Asia is home to some of the world’s most important technology businesses and enormous consumer markets.

I think that combination could provide plenty of growth over the decades ahead as more spending, services, and economic activity move online.

Global X FANG+ ETF (ASX: FANG)

Finally, the Global X FANG+ ETF could suit investors who want concentrated exposure to some of the world’s dominant growth companies.

The fund invests in a small collection of major technology and consumer businesses involved in areas such as artificial intelligence, cloud computing, digital advertising, ecommerce, electric vehicles, and online entertainment.

It will inevitably have periods of significant volatility.

But over a very long period, I think owning companies that are helping shape how people work, communicate, shop, and use technology could prove rewarding.

The post 5 ASX ETFs to buy and hold forever appeared first on The Motley Fool Australia.

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• Which ASX ETFs could be top picks for beginner investors?
• How much passive income can I earn off a $550,000 superannuation balance?
• 3 very exciting ASX ETFs for investors to watch
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Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF and 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.

In an era of uncertainty, I think it could be a smart idea to own some of the most reliable ASX dividend stocks if we’re relying on the dividend payments. I’d name Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) as the top option.

Soul Patts, as it’s commonly known, is an investment house that has been operating for more than 120 years. Not many ASX shares can say they’ve been listed for more than a century.

But, I’m not just going to say it’s a great business to own because it’s old, though longevity is a useful attribute.

One of the more impressive elements of Soul Patts is that it has paid a dividend in every single year of its listed life, including through the world wars, the global pandemics, the economic recessions and so on. That alone is a very impressive history of reliability.

There’s a lot more to like about the business as a reliable ASX dividend stock.

Excellent dividend record

There are very few ASX shares that have grown their annual dividend every year going back to the GFC approximately 20 years ago.

But, only one ASX share has increased its annual payout every year this century. Soul Patts has the best record.

The ASX dividend stock has increased its annual ordinary dividend every year since 1998. If that doesn’t make it Australia’s most reliable business for dividends, I don’t know what would.

In the latest result, being the FY26 half-year result, Soul Patts decided to hike its interim dividend per share by 9.1% to 48 cents. That shows the business isn’t just growing its payout by 1% per year, it’s delivering sizeable increases.  

It currently has a grossed-up dividend yield of 3.5%, including franking credits, at the time of writing.

Rising cash flow

The business pays for its dividends from the cash flow that’s generated by its portfolio.

Its investment portfolio is spread across a number of industries including resources, energy, swimming schools, agriculture, property, credit, retirement living, water entitlements, financial services and plenty more.

By having a diversified portfolio that generate defensive cash flow, the business is able to continue providing reliable dividends.

But, the company doesn’t pay out all of its cash flow each year. The retained earnings can be used to invest in more opportunities.

In the FY26 first-half result, the company reported that its net cash flow from investments grew by 15.4% to $334 million. Its interim dividend only represented 54% of net cash flow from investments.

I expect the ASX dividend stock’s cash flow can continue to grow in the coming years.

Growing net asset value

Not only is the company growing its dividends and cash flow for shareholders, but the underlying value of the Soul Patts portfolio is increasing over time, which is a tailwind for the Soul Patts share price.

The business is investing in new assets, and its existing investments are growing.

In the first half of FY26, its net asset value (NAV) grew by 14.6% to $13.8 billion. I’m not expecting every result to show year-over-year growth of around 15%, but I think it’s likely to continue compounding at a pleasing pace.

With $2,000, an investor could buy 45 Soul Patts shares, which I think would be a great long-term buy.

The post $2,000 buys 45 shares in an impressively reliable ASX dividend stock appeared first on The Motley Fool Australia.

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• ASX 200 bank shares led a financial sector rebound last week
• How much is needed in superannuation to target a $60,000 annual passive income?
• 3 ASX dividend shares raising dividends like clockwork

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

DroneShield Ltd (ASX: DRO) and Core Lithium Ltd (ASX: CXO) shares have both captured plenty of investor interest over the past three years.

And both stocks are well-known for making some big daily moves. Sometimes higher. Sometimes lower.

But only one of them has raced ahead of the 24.5% three-year gains posted by the S&P/ASX 200 Index (ASX: XJO), as at 10 September, while the other has struggled to regain some sharp losses.

So which ASX share was the better buy?

Core Lithium shares playing catch up

Spoiler alert, it wasn’t Core Lithium shares.

Three years ago, you may have been tempted to buy shares in the ASX All Ords lithium stock after the share price had crashed 76% over the prior 12 months.

On 8 September 2023, this saw the lithium miner trading for 37 cents a share.

So, for $10,000 you could have bought 27,027 Core Lithium shares.

In Thursday afternoon trade, those same shares were swapping hands for 38 cents apiece, up 2.7% in three years.

Meaning the 27,027 shares you bought three years ago for $10,000 are now worth $10,270.

Not a loss. But far from a gangbuster result either.

Investing $10,000 in DroneShield shares

Unlike Core Lithium shares, 8 September 2023 would have been an opportune time to snap up some DroneShield shares.

Three years ago, the ASX 200 drone defence stock was trading for 29 cents a share.

So, for $10,000 you could have picked up 34,482 shares.

On Thursday, the stock was trading for $1.69 a share, up an impressive 482.8% in three years.

And the 34,482 DroneShield shares you bought three years ago for $10,000 are now worth $58,275.

What’s been happening in 2026?

While DroneShield is the clear winner over our three-year time frame, 2026 has delivered markedly different results.

Indeed, at the recent share prices, DroneShield shares have tumbled more than 49% year to date, while Core Lithium shares have surged more than 31% in 2026.

That strong performance from Core Lithium will see the stock return to the S&P/ASX 300 Index (ASX: XKO) commencing on 21 September as part of the S&P Dow Jones Indices September quarterly rebalance.

Investors have been piling back into Core Lithium shares as lithium prices recovered from their 2025 lows. That recovery has also seen the beaten down miner advance its previously mothballed Finniss Lithium Operation, located in the Northern Territory, back towards production.

Commenting on the project in July, managing director Paul Brown said:

Core is in a very strong operational and financial position, with the foundations in place to continue executing to plan and ample funding to advance Finniss to steady state production in 2028.

The post $10,000 invested in DroneShield and Core Lithium shares 3 years ago is now worth… appeared first on The Motley Fool Australia.

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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 positions in and has recommended DroneShield. 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.

Reaching 50 with little or no savings would be daunting.

But I would not see it as too late to start.

There would still be time to build meaningful wealth, particularly if I could save consistently and avoid making the process more complicated than it needs to be.

And if I were starting from scratch, I would take plenty of inspiration from Warren Buffett.

Why Warren Buffett?

Buffett, often called the Oracle of Omaha, has spent decades showing what patient, disciplined investing can achieve.

He took control of Berkshire Hathaway (NYSE: BRK.A) in the 1960s when it was still a struggling textile business.

Over time, he transformed it into one of the world’s most valuable companies.

The textile operations eventually disappeared, while Berkshire became a collection of high-quality businesses and investments spanning insurance, railroads, energy, manufacturing, consumer products, and listed shares.

A big part of Buffett’s success has come from buying good businesses, holding them for long periods, and allowing compounding to do the work.

That is the part I would copy.

I would focus on quality

Starting at 50 would make me reluctant to gamble on highly speculative shares.

I would want companies with strong balance sheets, proven business models, good competitive positions, and the ability to increase earnings over many years.

On the ASX, that could lead me toward businesses such as Wesfarmers Ltd (ASX: WES), ResMed Inc (ASX: RMD), Goodman Group (ASX: GMG), and TechnologyOne Ltd (ASX: TNE).

They are different companies, but each has qualities that could allow it to keep becoming more valuable over time.

I would not expect every investment to work perfectly.

Buffett has made plenty of mistakes himself. The important thing is making sure the winners have the potential to do far more good than the losers do damage.

I would keep adding money

With no savings at 50, investment selection would only be part of the job. I would need to build the capital base.

That means investing regularly and increasing contributions whenever possible.

If I could invest $1,500 a month and generate an average annual return of 10%, after 15 years the portfolio could grow to around $600,000.

At $2,000 per month, it could reach roughly $800,000.

Those returns are not guaranteed, of course, but they show why starting now is so much better than waiting another five years.

I would leave the portfolio alone

One of Buffett’s greatest advantages has been patience. He has often held successful investments for decades rather than constantly trading in and out of the market.

I would try to do the same. Once I owned quality businesses, I would give them time to grow earnings, reinvest profits, pay dividends, and compound.

I would still review the portfolio and sell if the investment case genuinely changed. But I would not let every market fall, broker downgrade, or bad week convince me to start again.

At 50, I would not have time to waste. But I would still have enough time for patience, regular investing, and compounding to make a very meaningful difference.

The post With no savings at 50, I’d follow Warren Buffett’s approach to build wealth appeared first on The Motley Fool Australia.

More reading

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• 9 ASX 200 shares earning strengthened buy ratings this week
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• Why I think these are the best ASX shares to buy and hold

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

ASX 200 energy shares rose 2.39% while the broader market tanked amid turmoil in the Middle East last week.

The S&P/ASX 200 Index (ASX: XJO) dropped 2.94% and closed at a 10-week low of 8,741.2 points.

Nine of the 11 market sectors fell into the red.

Let’s review.

Brent crude oil price jumps 12%

Brent crude, the international benchmark oil price, jumped 12% last week to above US$108 per barrel on Friday.

West Texas Intermediate crude oil also leapt 12% to above US$103 per barrel.

US heating oil rose 12% and gasoline increased 5%.

The UK gas price jumped 15%, German gas rose 14%, and European gas increased 13%.

This occurred as the Iran-backed Houthis sought to take control of Saudi Arabia’s alternative oil export route.

The Strait of Hormuz, through which about 20% of the world’s oil and gas is shipped, has been effectively shut down since March.

Saudi Arabia, the world’s largest oil exporter and a US ally, has been exporting via the Red Sea and Strait of Bab el-Mandeb instead.

The Red Sea and the strait run alongside Yemen, where the Houthis are based.

The rebels seized a Yemeni port city called Mocha, and are now advancing toward other cities closer to Bab el-Mandeb.

While all this was happening, Iran and the US continued to exchange fire with no hope of a peace deal in sight.

The US-Iran conflict has helped push up inflation in Australia, the US, and other nations.

Last week’s oil price spike raised the chances of an interest rate rise in Australia and the US this month.

Traders rate the likelihood of a rate rise in both countries in September at 70%.

The US stock market also slumped last week, and American bond yields hit multi-year highs.

Australia’s 3-year government bond yield rose above 5% on Friday, the highest level in 15 years.

These were among the factors contributing to the ASX 200’s slump last week.

Energy shares led amid broader market downturn

The Woodside Energy Group Ltd (ASX: WDS) share price gained 3.24% to close at $32.86 on Friday.

The Santos Ltd (ASX: STO) share price ascended 4.63% to $8.59.

Ampol Ltd (ASX: ALD) shares edged 1.38% higher to $41.21.

The Viva Energy Group Ltd (ASX: VEA) share price jumped 4.83% to $3.04.

Karoon Energy Ltd (ASX: KAR) shares ripped 5.17% to close the week at $1.83.

Beach Energy Ltd (ASX: BPT) shares rose 2.33% to 88 cents apiece.

The Whitehaven Coal Ltd (ASX: WHC) share price increased 2.5% to $8.60.

Whitehaven shares were one of 9 ASX stocks upgraded by experts last week.

The New Hope Corporation Ltd (ASX: NHC) share price gained 3.77% to $6.33.

Uranium miner Paladin Energy Ltd (ASX: PDN) tumbled 12.14% to $10.28 per share.

The Boss Energy Ltd (ASX: BOE) share price fell 3% to $1.46.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Energy (ASX: XEJ)	2.39%
Utilities (ASX: XUJ)	0.51%
Industrials (ASX: XNJ)	(1.28%)
Financials (ASX: XFJ)	(2.33%)
Communication (ASX: XTJ)	(2.72%)
Consumer Staples (ASX: XSJ)	(3.48%)
A-REIT (ASX: XPJ)	(3.62%)
Healthcare (ASX: XHJ)	(3.77%)
Materials (ASX: XMJ)	(3.91%)
Consumer Discretionary (ASX: XDJ)	(4.73%)
Information Technology (ASX: XIJ)	(8.57%)

Next week 33 ASX shares are set to trade ex-dividend.

The post Energy shares rose while the ASX 200 slumped last week. Here’s why appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend gems I’d buy today for $10,000 a year in passive income
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• ASX 200 tumbles to a 2-month low and wipes out its 2026 gains. What on earth is going on?
• $10,000 invested in Santos and Woodside shares 3 years ago is now worth…

Motley Fool contributor Bronwyn Allen 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.

Superannuation is one of the rare investments designed to be held for decades. That makes Warren Buffett’s approach to investing particularly relevant for Australians building wealth for retirement.

Buffett’s success hasn’t come from constantly trading in and out of stocks. Instead, he has focused on owning high-quality businesses, paying reasonable prices and giving them plenty of time to compound.

Several of those principles can translate surprisingly well to superannuation.

Patience can be a superpower

Perhaps the biggest Buffett lesson is that investing doesn’t have to involve constant activity.

The legendary investor is famous for holding businesses for many years, sometimes decades. That patience allows companies to reinvest profits, grow earnings and compound value without investors repeatedly interrupting the process.

There’s a lesson here for superannuation investors.

Constantly changing investments can create more opportunities to make mistakes, particularly when decisions are driven by fear during market sell-offs or excitement when a stock is soaring.

If the original investment thesis remains intact, there may be little reason to sell simply because another opportunity looks more attractive.

A superannuation timeframe can stretch 20 or 30 years. That gives investors an enormous advantage: time.

Of course, patience only works when paired with sensible investments. Whether it’s carefully selected ASX shares or diversified index ETFs, having a clear strategy and sticking with it can provide a strong foundation.

Think like a business owner

Buffett doesn’t view shares as pieces of paper to trade. He sees them as ownership stakes in real businesses.

That mindset can be particularly useful for investors running a self-managed superannuation fund (SMSF).

Take CSL Ltd (ASX: CSL). Rather than simply asking whether its share price might rise next year, a superannuation investor could consider what makes the biotech company competitive, how durable those advantages are and whether the business can become more valuable over the next decade.

Share prices can fluctuate wildly along the way. But ultimately, long-term returns are driven by the performance of the underlying businesses.

That means investors should consider factors such as competitive advantages, management quality, financial strength and opportunities for future growth.

Quality matters more than simply being cheap

Buffett’s investing style has also evolved towards owning exceptional businesses rather than simply buying statistically cheap stocks.

That distinction matters for superannuation investors. A company with a strong competitive position, capable management and plenty of opportunities to reinvest capital may be able to compound its value for many years.

That doesn’t mean price is irrelevant. Buffett remains highly conscious of valuation.

But a slightly more expensive high-quality business can potentially prove a better long-term investment than a struggling company that initially looks cheap.

Keep it simple

There’s another Buffett lesson that may be even more relevant to most superannuation investors: you don’t need to pick individual winners.

Despite his extraordinary record as a stock picker, Buffett has repeatedly acknowledged the value of low-cost index investing for people who don’t have the time or expertise to analyse individual businesses.

For Australians, ETFs such as the Vanguard Australian Shares Index ETF (ASX: VAS) or iShares S&P 500 ETF (ASX: IVV) offer straightforward ways to own diversified portfolios.

For super investors, perhaps the biggest Buffett lesson is therefore simple: invest sensibly, keep costs under control, think like an owner and give compounding time to work.

The post What Warren Buffett can teach Australians about superannuation appeared first on The Motley Fool Australia.

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• CSL shares are up 90%. Brokers can’t agree what happens next
• Payday superannuation is two months old. Has it made you better off?

Motley Fool contributor Marc Van Dinther 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 and iShares S&P 500 ETF. The Motley Fool Australia has recommended CSL 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.

Westpac Banking Corp (ASX: WBC) shares are among the most popular ASX dividend options because of the company’s reputation as an ASX dividend share with a pleasing dividend yield.

The ASX bank share usually has a higher dividend yield than Commonwealth Bank of Australia (ASX: CBA), though the yield is typically similar to National Australia Bank Ltd (ASX: NAB) and ANZ Group Holdings Ltd (ASX: ANZ).

If an investor is searching for passive income, then investors may like the idea of Westpac shares over Commonwealth Bank.

Westpac has increased its annual payout each year since the COVID-impacted year of 2020, so it’s pleasing to see the business has delivered regular payout growth for investors.

The FY26 half-year result was a good demonstration of the company’s commitment to regularly paying a good dividend. Statutory net profit rose 3% year-over-year to $3.4 billion and underlying net profit rose 1% year-over-year to $3.5 billion. That profit generation helped Westpac hike its interim dividend by 1.3% to 77 cents per share.

However, in this article, we’re not thinking about FY26’s payments, we’re going to look at the FY27 annual dividend, which will be paid in 2027.

2027 dividend projection for owners of Westpac shares

According to the projection on CMC Invest, the ASX bank share is projected to pay an annual dividend per share of $1.585, which could equate to a possible 2.25% rise year-over-year.

At the time of writing, that forecast translates into a dividend yield of 4.6% excluding franking credits and 6.5% including franking credits.

If someone were to invest $15,000 in Westpac, they would be able to buy 433 Westpac shares (with a little bit of money left over).

With those 433 Westpac shares, investors could receive $686.30 of passive income cash and $980.44 overall, including the franking credits.

Is this a good time to invest in the ASX bank share?

According to CMC Invest, there have been eight analyst rating calls on the business within the last three months.

Of those eight ratings, five were a sell rating, two were a hold rating and one buy rating was a buy. Therefore, investment professionals are, on average, negative on the appeal of the company’s valuation right now.

The average price target of those eight ratings is $33.94. That means, collectively, those analysts are predicting the Westpac share price could fall by 2% (at the time of writing) within the next year. The Westpac share price has drifted slower since April 2026, so we’ll see what happens next.

For now, there seem to be better ASX shares out there that Australians can buy.

The post If I invest $15,000 in Westpac shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

More reading

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• How much superannuation do I need to earn $100 a day in passive income?
• $10,000 invested in Westpac and NAB shares 3 years ago is now worth…

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 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.

Looking to earn an extra $10,000 a year in passive income by buying quality S&P/ASX 200 Index (ASX: XJO) dividend shares?

We’ll look at two ASX dividend gems below that I think belong in every income investor’s portfolio.

But first, some important reminders.

Diversity and trailing yields

While we’ll look at two quality ASX 200 dividend stocks below, a properly diversified passive income portfolio will contain a lot more than just two stocks. Though there’s no correct number for everyone, around 15 or so is a decent target.

Ideally these companies will operate in various sectors and locations. This will reduce the risk of your income stream taking an outsized hit if any one company or sector runs into headwinds.

Also, bear in mind that the yields you generally see are trailing yields. Future yields may be higher or lower depending on a range of company specific and macroeconomic factors.

Which brings us to…

Two ASX dividend gems for a $10,000 annual passive income

The first ASX dividend gem you may want to buy for passive income is Woodside Energy Group Ltd (ASX: WDS).

Recently trading for $33.00 a share, the ASX 200 oil and gas stock has gained 33% over the past year.

As for that income, Woodside paid (or shortly will pay) $1.63 a share in fully franked dividends over the past year. The stock traded ex-dividend on 3 September. Eligible stockholders can expect to receive that payout on 25 September.

At the recent share price, then, Woodside shares trade on a fully franked 4.9% trailing dividend yield.

The second ASX dividend gem I believe should have a place in every passive income investor’s portfolio is Telstra Group Ltd (ASX: TLS).

Recently trading for $4.76 a share, the ASX 200 telco is down 2.7% over the past 12 months.

On the income front, Telstra has paid (or shortly will pay) two dividends totalling 21 cents a share, franked at 90%. Telstra shares traded ex-dividend on 26 August. Eligible stockholders can expect to receive that payout on 24 September.

At the recent share price Telstra shares trade on a partly franked 4.4% trailing dividend yield.

How much to invest?

Assuming you invest the same amount in each ASX dividend gem, you could expect to earn a yield of 4.7%, based on those trailing yields.

To earn $10,000 a year in passive income, you’d need to invest $212,766 today.

Now, that’s a sizeable amount to invest in one go.

But that’s okay.

Investing is a long game. You can always invest a smaller amount on a regular basis, and you’ll reach your passive income goal in good time.

The post 2 ASX dividend gems I’d buy today for $10,000 a year in passive income appeared first on The Motley Fool Australia.

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• How much superannuation do I need to earn $80,000 per year in passive income?
• 9 ASX 200 shares earning strengthened buy ratings this week
• How much superannuation do I need to earn $100 a day in passive income?

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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Rio Tinto Ltd (ASX: RIO) and Fortescue Ltd (ASX: FMG) shares have delivered markedly different returns over the last three years.

One of the S&P/ASX 200 Index (ASX: XJO) mining giants has smashed the 24.5% gains posted by the benchmark over the past three years (as at 10 September). The other has delivered far less.

So, which was the better investment?

Fortescue shares flounder

Well, it wasn’t Fortescue.

Three years ago, on 8 September 2023, you could have bought Fortescue shares for $19.40 apiece.

So, for $10,000 you could have 515 shares.

On Thursday, shares were trading for $17.61 each, down 9.2% over three years.

But stockholders wouldn’t have done quite that badly.

That’s because if you held Fortescue shares for the past three years, you’d also have received the last six fully franked Fortescue dividend payments totalling $4.15 a share. (The final FY 2026 Fortescue dividend will be paid on 29 September.)

If we add that back into the recent share price, then the accumulated value of the shares you bought in September 2023 is now worth $21.76. And the 515 shares you picked up for $10,000 are worth an accumulated $11,207.

So, what about Rio Tinto?

Buying $10,000 worth of Rio Tinto shares

Unlike Fortescue shares, Rio Tinto shares have strongly outperformed over the past three years.

On 8 September 2023, Rio Tinto shares were trading for $111.17 apiece. Meaning you could have bought 89 shares with a $10,000 investment, with $105 in pocket money left over.

On Thursday, shares were changing hands for $179.33 each, up 61.3% in three years.

Investors have also banked significant passive income from the ASX 200 mining stock along the way.

If you owned Rio Tinto shares for the past three years, you would have received, or will shortly receive, the past six fully franked dividend payments. (The interim 2026 Rio Tinto dividend will be paid out on 24 September.)

All told those six Rio Tinto dividends come out to a rounded $19.18 a share.

If we add that back into the recent share price, then the accumulated value of the Rio Tinto stock you picked up in September 2023 is now worth $198.51 a share.

And the 89 shares you bought for $10,000 are worth an accumulated $17,667.

So, for this time period at least, Rio Tinto clearly takes the prize over Fortescue shares.

How about in 2026?

As of Thursday, the ASX 200 has gained 0.7% year to date.

Over this same time, Rio Tinto shares have gained 21.5% and paid two dividends.

And Fortescue shares have tumbled 20.5% and paid two dividends.

The post $10,00 invested in Rio Tinto and Fortescue shares 3 years ago is now worth… appeared first on The Motley Fool Australia.

More reading

• Down almost 10%! Why are ASX copper shares tanking?
• How much superannuation do I need to earn $80,000 per year in passive income?
• Iron ore is back below US$100. Are BHP and Rio Tinto shares still buys?
• ASX 200 dives to a 6-week low. What’s behind today’s sell-off?
• How many Fortescue shares do I need to buy to earn $1,000 per month in passive income?

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.