Tag: Stock pick

This month, a number of Australia’s most popular shares have released updates.

Brokers have had time to review these updates and give their verdict. So, have they named them as buys, holds, or sells? Let’s find out:

Commonwealth Bank of Australia (ASX: CBA)

Morgans notes that Australia’s largest bank underperformed expectations in the third quarter.

Combined with a challenging outlook and the tightening of its balance sheet, the broker has reaffirmed its sell rating with a trimmed price target of $119.40. It said:

3Q26 earnings were below 1H26 growth expectations, both before and after the impact of topping up loan loss provisions. The balance sheet as per the CET1 capital ratio also looks a little tighter than we had previously budgeted. FY26-28 EPS forecasts downgraded c.3-5%. Target price reduced 4% to $119.40. SELL retained, with potential total return of c.-19% at current prices (including c.3.3% dividend yield). Even after today’s c.10% sell-off, CBA’s valuation metrics remain extended and don’t provide a sufficient margin of safety.

CSL Ltd (ASX: CSL)

Morgans was disappointed with CSL’s guidance downgrade last week.

However, it remains upbeat and believes the issues the company is facing are temporary and not structural.

As a result, with CSL shares down heavily, Morgans has named them as a buy with a $147.59 price target. Commenting on the biotech giant, the broker said:

FY26 guidance was downgraded on China Albumin price pressure, US Ig channel inventory normalisation and other impacts (paused Iran sales, lower Hemgenix and and Iron sales), combined with a further cUS$5bn in flagged impairments. Importantly, issues are framed as primarily executional rather than structural, with infrastructure overbuild, organisational complexity, and weak commercial execution cited, while underlying demand and industry structure remain healthy.

Encouragingly, Seqirus is performing better than expected, Ig demand remains mid-to-high single digit, and there are early signs of plasma share stabilisation. While forward earnings visibility remains limited, we believe the current valuation increasingly discounts a structurally impaired plasma franchise, which we do not believe the current industry dynamics support. We reduce FY26-28 forecasts and lower our blended DCF, PE and EV/EBITDA-based target price to A$147.59. Given CSL’s global leadership positions, structurally growing end markets and operational initiatives, we retain a BUY rating.

Life360 Inc. (ASX: 360)

Bell Potter was pleased with this family safety and location technology company’s first-quarter update.

It notes that Life360 outperformed expectations on everything but monthly active users (MAU), which missed due to a technical issue.

In response, the broker has put a buy rating and $32.50 price target on Life360’s shares. It said:

1Q2026 revenue and adjusted EBITDA of US$143.1m and US$17.1m were 4% and 18% ahead of our forecasts and 4% and 14% ahead of VA consensus. The key positive of the result was the strong paying circle growth of 201k q-o-q which was more than double our forecast of 99k and well ahead of VA consensus of 109k.

The post Buy, hold, sell: CBA, CSL, and Life360 shares appeared first on The Motley Fool Australia.

More reading

• How much $500 a month could become with ASX shares
• CGT tax changes may encourage investors into ASX dividend shares: Expert
• 5 excellent ASX dividend shares to buy with $50,000
• What are the pros and cons of buying CBA shares in May?
• 4 ASX 200 shares tipped to climb 75% to 126% higher

Motley Fool contributor James Mickleboro has positions in CSL and Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I’m always on the lookout for great ASX share investments that could deliver strong long-term returns and outperform the S&P/ASX 200 Index (ASX: XJO).

I like to look at businesses that can grow earnings significantly over the next five to ten years because I think that’s where the market may be undervaluing the business.

Below are two of the ASX shares that I’m very excited about.

Tuas Ltd (ASX: TUA)

Tuas is a fast-growing, Singapore-based telecommunications business. It has offered customers great value with a mobile offering and this has resonated.

The company has reported significant growth year after year. In the FY26 half-year result, it grew its mobile subscriber base by 21.7% year over year to 1.41 million. This helped drive revenue higher by 26% and underlying operating profit (EBITDA) grew 27% to $42.1 million.

I think any business that’s growing revenue and EBITDA organically by more than 20% per year is worth looking at. If the underlying EBITDA margin is rising then it’s even more appealing.

The ASX share is steadily growing its market share and this is helping its operating leverage strength.

There are two things that could help it significantly in the coming years. Firstly, it’s acquiring a Singapore competitor called M1, which will help diversify Tuas’ earnings base and significantly increase its bottom line.

I’m particularly hopeful the ASX share could generate strong returns if it can meaningfully expand into other Asian countries because of how that would considerably increase its addressable market. Countries like Indonesia and Malaysia have much larger populations than Singapore.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

I like investing in exchange-traded funds (ETFs) that give me exposure to growing businesses that I can’t buy directly on the ASX.

Over the longer-term, I think it’s the businesses with strong economic moats – meaning competitive advantages – that can deliver above-average returns.

The MOAT ETF is looking for businesses with particularly attractive economic moats – ones where analysts believe certain businesses’ competitive advantages will likely last for 20 years or more.

Having advantages like that will hopefully translate into pleasing long-term profit growth and capital growth. It has certainly worked for the MOAT ETF because the fund has returned an average of 13.9% per year over the past decade to 30 April 2026.

Another element to the investment strategy is the fact that the MOAT ETF only invests when these great businesses are trading at a compelling price to what Morningstar analysts think the business is actually worth.

I like how this fund is able to provide investors with a diversified portfolio and good returns, while not heavily focusing on tech shares. Other industries are also capable of being great businesses. I think this ASX ETF would work very well with a portfolio of compelling ASX shares.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 5 of the best ASX ETFs to buy and hold in 2026
• 3 ASX shares to buy for magnificent long-term growth
• Here’s why I’d buy this Buffett-inspired ASX ETF today
• How to become a millionaire on a $60,000 salary

Motley Fool contributor Tristan Harrison has positions in Tuas and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX dividend stock space has a lot of pleasing options to consider for passive income. I believe one of the best ideas to consider is WCM Quality Global Growth Fund (ASX: WCMQ).

That may not be one of the most familiar exchange-traded fund (ETF) options to many investors, but I think it could actually be one of the most effective ideas for passive income to consider.

It’s important to remember that a good dividend investment can provide investors with a pleasing mixture of passive income and capital growth because a rising portfolio value has its advantages, even if just to offset the impacts of inflation.

Let me run through the three major positives that I see with this ASX dividend stock and why it’s a great buy at any time.

Healthy distribution yield

The ASX ETF aims to pay a distribution yield of at least 5% per year. That’s not small, but not huge either – I think it’s the right balance between rewarding investors and holding onto most of its capital to invest on investors’ behalf.

Importantly, that 5% dividend yield (of the net asset value (NAV)) can be paid whether the market is significantly up or down.

We can’t know how strongly the share market is going to perform in the coming years, but I think a 5% dividend yield is low enough that the ASX ETF will still be able to deliver capital growth.

Considering good term deposit interest rates now start with a ‘5.%’, I think the ASX dividend stock offers a very competitive return.

High-quality shares

The investment strategy of this fund is to invest in a portfolio between 20 to 40 stocks with access to quality global companies, with a goal of outperforming the global share market over rolling three-year time periods and hopefully experience lower volatility than the benchmark.

WCM, the fund manager of the fund, looks at businesses with improving economic moats (competitive advantages). The investment team also believe that corporate culture is the biggest influence on a company’s ability to grow its competitive advantages (economic moat).

When a company is increasing the advantage it has over competitors, that can lead to stronger profit margins and rising earnings, which is the key driver of share price gains.

Long-term performance

The WCMQ ETF portfolio’s great long-term returns have not been driven by just a strong single year, it has regularly performed well, allowing the fund to achieve significant returns.

Since the fund’s inception in August 2018 to March 2026, it delivered an average net return per year of 14%, outperforming the global share market by an average of 2.4% per year.

If the ASX dividend stock is able to deliver a good double-digit return over the long-term, that would provide a pleasing mix of a good distribution yield and capital growth.

It’s not the only ASX dividend I’d be happy to invest in, though.

The post I’d buy this ASX dividend stock in any market appeared first on The Motley Fool Australia.

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• I’d buy this high-yield ASX ETF over the Vanguard Australian Shares Index ETF (VAS)
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Motley Fool contributor Tristan Harrison has positions in Wcm Quality Global Growth Fund. 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.

Investing in ASX shares does not always start with a large lump sum.

For many people, it begins with a regular amount that can be put aside each month. And while $500 may not sound like enough to build serious wealth, time can do a lot of heavy lifting.

Let’s see just how much wealth could be built with $500 a month and ASX shares.

The numbers

If an investor put $500 a month into ASX shares and earned an average return of 10% per annum, the results could become very meaningful over time.

After 10 years, those monthly investments could grow to approximately $100,000.

After 20 years, the balance could reach around $360,000.

Finally, after 30 years, it could grow to approximately $1 million.

That is the power of compounding. The longer the money stays invested, the more returns begin to build on previous returns.

Of course, a 10% annual return is not guaranteed. It is broadly in line with long-term historical share market returns, but actual returns will vary from year to year. Some years will be strong, others will be weak, and some could even be painful.

Discipline is the hard part

The maths is simple. The behaviour is harder.

Investing $500 a month requires consistency. It means continuing through market falls, bad headlines, interest rate moves, recessions, and company downgrades.

Regular investing removes some of that pressure. It does not require picking the perfect day to buy. It simply keeps the plan moving.

Diversification matters

While long-term investing can be powerful, it is still important to spread risk.

Even high-quality companies can go through difficult periods. CSL Ltd (ASX: CSL) is a recent reminder of that. It was once viewed as one of the ASX’s most dependable long-term growth shares, yet its shares have fallen heavily after a series of disappointing updates.

That does not mean quality investing has failed. It means no single company should carry too much of the load.

A diversified portfolio across different sectors, business models, and geographies can help reduce the damage when one holding struggles. This could be achieved initially with an exchange traded fund (ETF) like the Vanguard MSCI Index International Shares ETF (ASX: VGS), which gives investors easy access to over 1,000 global shares.

Foolish takeaway

Turning $500 a month into a large portfolio is about time, patience, and discipline.

Invest regularly, stay diversified, and give compounding enough years to do its work. That combination can turn a monthly habit into significant long-term wealth.

The post How much $500 a month could become with ASX shares appeared first on The Motley Fool Australia.

More reading

• 5 excellent ASX dividend shares to buy with $50,000
• Where to from here for CSL shares according to Macquarie
• 5 ASX shares downgraded by brokers this week
• Why CBA, Paladin Energy and CSL shares crashed  9% to 17% this week
• CSL shares vs CBA shares: Which is the better buy?

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building strong retirement income often starts with owning high-quality ASX dividend shares capable of delivering reliable passive income through different market cycles.

For long-term investors, a mix of infrastructure and resource exposure can help balance stability, growth and yield. These three ASX dividend shares each offer a different pathway to building retirement income.

APA Group (ASX: APA)

APA Group can play an important role in a retirement portfolio thanks to its stable infrastructure earnings and highly reliable income generation.

The company owns critical gas pipelines and energy infrastructure assets across Australia, helping generate predictable cash flow that supports consistent distributions to investors.

Importantly, APA has increased its dividend every year for the past 20 years, a rare achievement on the ASX.

For retirement-focused investors seeking passive income, APA’s defensive business model may also help reduce portfolio volatility during weaker market periods.

The forward distribution yield currently sits around 5.5%, and franking credits can push the grossed-up yield considerably higher for Australian investors.

Of course, risks remain. Higher interest rates can pressure infrastructure valuations, while energy regulation and the long-term transition away from fossil fuels remain important considerations.

Still, demand for essential infrastructure is expected to remain strong for decades.

Fortescue Ltd (ASX: FMG)

Fortescue is well known among income investors for paying large dividends during periods of strong iron ore prices.

The mining giant benefits from low-cost iron ore operations and substantial export demand from Asia, helping support large cash flows during commodity upcycles.

For retirement investors comfortable with some market volatility, Fortescue could offer an attractive source of dividend income.

According to CommSec projections, the company could pay an annual dividend of 80 cents per share in FY27.

At current prices, that translates into a grossed-up dividend yield of around 5.4%, including franking credits. The projected FY26 grossed-up yield is even higher at 6.6%.

However, investors should understand the risks tied to commodity cycles. Fortescue’s earnings and dividends remain heavily exposed to fluctuations in iron ore prices and Chinese steel demand. If commodity prices weaken sharply, dividend payments could fall as well.

Transurban Group (ASX: TCL)

Transurban is another infrastructure heavyweight that may suit retirement investors seeking stable long-term returns.

The company operates major toll roads across Australia and North America, generating recurring revenue linked to population growth, urban expansion and rising traffic volumes.

Infrastructure assets such as toll roads often produce inflation-linked earnings, which can become increasingly valuable during retirement when preserving purchasing power matters.

For FY26, Transurban has guided to a distribution of 69 cents per security, implying a forward yield of around 5.0%. The company recently paid an interim distribution of 34 cents per security, reinforcing its steady payout profile.

Like APA, higher interest rates can pressure infrastructure valuations and borrowing costs. But Transurban’s long-term growth outlook remains supported by growing transport demand and large-scale infrastructure ownership.

The post These ASX dividend shares could power your retirement income appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares I’d buy and hold through any market cycle
• CGT tax changes may encourage investors into ASX dividend shares: Expert
• How to build passive income with ASX shares in 3 easy steps
• Hunting passive income? Here are three ASX dividend shares to buy
• 3 ASX mining stocks positioned to benefit from the green transition

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

Starting at 50 with no savings can feel daunting. There is less time than someone in their 20s or 30s, which means the margin for error is smaller.

But it does not mean building wealth is impossible.

The key is to avoid panic, keep the process simple, and follow principles that have worked over long periods.

That is where Warren Buffett’s approach can be useful with ASX shares.

Start with what can be controlled

The first step is not finding the perfect ASX share.

It is getting the habit right. At 50, regular contributions matter because there is still time for compounding to work, but not enough time to rely on it alone.

That means cutting unnecessary expenses, directing surplus income into investments, and doing it consistently.

Buffett has often stressed the importance of patience and discipline. For someone starting later, those qualities become even more important.

Buy quality, not hype

Buffett’s investing style at Berkshire Hathaway (NYSE: BRK.B) was built around owning high-quality businesses.

That means companies with strong competitive positions, dependable earnings, good management, and the ability to keep generating cash over time.

On the ASX, this could mean looking at established businesses with durable advantages rather than chasing speculative stocks. Examples could be Goodman Group (ASX: GMG), REA Group Ltd (ASX: REA), and Telstra Group Ltd (ASX: TLS).

The temptation when starting late can be to take bigger risks in an attempt to catch up. That can be dangerous. A large loss at 50 can be much harder to recover from than a loss earlier in life.

A better approach is to build around businesses that can compound steadily.

Think in decades

Warren Buffett is famous for taking a long-term view.

That mindset is especially valuable for someone starting with no savings at 50. The goal is not to double money quickly. It is to build a portfolio that can grow through consistent investing and sensible decision-making.

A 15-year or 20-year investing period can still make a big difference.

Investing regularly into quality shares or low-cost funds, reinvesting dividends, and staying invested through market volatility can create meaningful wealth over time.

Keep it simple

Buffett has often praised simple investing.

For many people, that means using broad, low-cost index funds rather than trying to pick every winner. This can provide exposure to many companies at once and reduce the risk of relying too heavily on one stock.

That matters because even high-quality companies can have difficult periods. Diversification helps smooth the journey and keeps the plan from depending on one decision.

Simplicity can also make it easier to stay the course.

Foolish takeaway

Starting with no savings at 50 is not ideal, but it is not hopeless.

By saving aggressively, buying quality investments, staying diversified, and thinking long term, it is still possible to build meaningful wealth.

Buffett’s approach is not about getting rich overnight. It is about patience, discipline, and letting good investments compound. At 50, that is exactly the mindset I would want.

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

• CGT tax changes may encourage investors into ASX dividend shares: Expert
• 5 excellent ASX dividend shares to buy with $50,000
• How to build passive income with ASX shares in 3 easy steps
• Are Telstra shares a top buy for passive income?
• I’d buy these blue-chip ASX shares with $2,000 in a heartbeat

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

Markets never move in a straight line.

Some years are driven by optimism, falling interest rates, and strong earnings growth. Other years are shaped by inflation, geopolitical shocks, weaker consumer spending, and nervous investors.

That is why I think it helps to own ASX 200 shares that can handle different conditions.

The three ASX 200 shares in this article are not guaranteed to outperform every year. But I think they have the kind of quality, resilience, and long-term relevance that makes them worth buying and holding through the cycle.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of the first ASX 200 shares I would consider for an all-weather portfolio.

The company owns a collection of businesses that touch everyday life, including Bunnings, Kmart, Officeworks, Priceline, and industrial operations.

What I like about Wesfarmers is that it gives investors a rare mix of defensive earnings and long-term growth options.

Bunnings is the standout. It has a powerful position in home improvement, strong brand trust, and a store network that would be very hard to replicate. Even when the economy slows, Australians still need to repair, maintain, and improve their homes.

Kmart is another important part of the story. Its value-focused model can actually become more relevant when households are under pressure. That gives Wesfarmers a useful offset in tougher consumer environments.

I also like the group’s capital allocation record. Wesfarmers has shown over many years that it is willing to invest where it sees opportunity and exit areas that do not meet its standards.

That discipline is a big reason I would be happy to hold the stock through different market cycles.

ResMed Inc. (ASX: RMD)

ResMed is another ASX 200 share I think investors can buy with a long-term mindset.

The company is a global leader in sleep apnoea treatment and respiratory care. That gives it exposure to a large healthcare market with strong structural demand.

For me, the appeal is simple. Sleep apnoea remains underdiagnosed, but awareness continues to grow. As more people are tested and treated, ResMed has a chance to sell more devices, masks, software, and connected care solutions.

I also like the fact that healthcare demand is not purely tied to the economic cycle. People do not stop needing treatment because markets are weak or consumer confidence is low.

Of course, ResMed still has risks. Competition, pricing pressure, currency movements, and changing technology can all affect performance. The GLP-1 weight loss drug debate has also created periods of uncertainty for the share price.

But I think the long-term case remains attractive. In fact, if better awareness of obesity and sleep-related health issues leads to more diagnosis, ResMed could still benefit over time.

That makes it the kind of global healthcare business I would be willing to hold through volatility.

Transurban Group (ASX: TCL)

Transurban is a very different type of ASX 200 share, but that is why I like it in this mix.

The company owns and operates toll roads across Australia and North America. These are infrastructure assets that can produce relatively defensive cash flows over long periods.

Road traffic can move around with economic conditions, but major urban toll roads tend to remain important parts of daily life. People still need to commute, move goods, visit family, and travel around large cities.

I also like the inflation-linked nature of many toll road arrangements. In an environment where costs and prices are rising, that can help support revenue growth.

Transurban is not a risk-free income stock. Debt levels, interest rates, regulation, traffic volumes, and project costs all need watching. But I think its assets are high quality and difficult to replace.

For investors wanting a steadier holding alongside growth names, I think Transurban can play an important role.

Foolish takeaway

I do not think an all-weather portfolio needs to be boring.

Wesfarmers gives exposure to high-quality retail and disciplined capital allocation. ResMed adds global healthcare growth. Transurban brings infrastructure income and defensive characteristics.

Each business faces risks, and none will rise every year. But I think all three have qualities that can remain valuable across different market environments.

For investors looking beyond the next market wobble, these are three ASX 200 shares I would be happy to buy and hold for years.

The post 3 ASX 200 shares I’d buy and hold through any market cycle appeared first on The Motley Fool Australia.

More reading

• These ASX dividend shares could power your retirement income
• How to build passive income with ASX shares in 3 easy steps
• I’d buy these blue-chip ASX shares with $2,000 in a heartbeat
• Hunting passive income? Here are three ASX dividend shares to buy
• 3 superannuation decisions you’ll regret in retirement

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

Private wealth and investment advisory firm, Medallion Financial Group says changes to capital gains tax (CGT) will likely encourage investors to focus on income-generating assets like ASX dividend shares over growth investments.

Under the changes announced in the Federal Budget on Tuesday, the 50% CGT discount for assets held longer than 12 months will be replaced by a cost base indexation method from 1 July next year.

This method adjusts the cost base of an asset for inflation.

Existing investments will be grandfathered, so the 50% CGT discount will continue to apply to gains before 1 July 2027.

Capital gains on existing investments on or after 1 July 2027 will be subject to cost base indexation.

A minimum 30% tax on net capital gains will apply under the cost base indexation method.

There is one exception.

To maintain incentives for new housing supply, investors in new residential properties will be able to choose either the 50% CGT discount, or cost base indexation and the minimum 30% tax rate.

In a newsletter this week, Medallion outlined its predictions as to how the tax changes might influence investor behaviour.

The advisory firm said:

By increasing the effective tax burden on capital gains, the government has altered the relative attractiveness of growth versus income subtly, but meaningfully shifting investor behaviour.

At a high level, the changes tilt the playing field toward yield. If a larger portion of capital gains is taxed away, the after-tax return profile of growth assets; equities, start-ups, and expansionary investments becomes less compelling.

In contrast, income streams such as dividends retain their relative appeal, particularly where they are franked.

ASX dividends shares and franking

Dividends are typically funded from profits, and franking credits represent the tax a company has already paid on its profits in Australia.

People invested in ASX dividend shares receive both the raw dividend plus the level of franking relevant for each company they own.

The level of franking depends on how much corporate tax the company has paid and has available in its franking account.

At tax time, franking is credited towards an investors’ tax payable, reducing tax on their dividend income and preventing double taxation of profits.

For example, Commonwealth Bank of Australia (ASX: CBA) is among the most popular ASX dividend shares on the market.

CBA shares typically pay dividends with 100% franking.

For 1H FY26, CBA declared a dividend of $2.35 per share plus 100% franking.

Therefore, an investor who owned 100 shares in CBA would have received a $235 dividend and a $100.71 franking credit.

‘A likely rotation in capital’

Medallion says the tax changes will likely encourage a rotation in capital away from growth assets to income assets.

Investors may increasingly favour high-dividend, lower-volatility sectors over innovative, higher-risk areas of the market.

In effect, policy is nudging capital away from forward-looking, productivity-enhancing investments and toward more defensive, domestically oriented exposures.

One of the reasons ASX shares are a popular investment is because the dividend yield is much higher than international shares.

The long-term average annual yield for ASX 200 shares is 4% to 4.5%, however, this has fallen closer to 3.5% in recent years.

By comparison, the current trailing dividend yield on US shares or S&P 500 Index (SP: .INX) stocks is 1.1%.

A high dividend yield provides protection for investors when the market falls, as it has in 2026.

In the calendar year to date, the S&P/ASX 200 Index (ASX: XJO) is down 1.1%, however, investors have still received dividends.

Other popular dividend shares

ASX 200 bank and mining stocks have long been viewed as among the most generous ASX dividend shares.

For example, ANZ Group Holdings Ltd (ASX: ANZ) shares are currently trading on a trailing dividend yield 4.76%.

Westpac Banking Corp (ASX: WBC) shares are trading on a trailing yield of 4.31%.

Fortescue Ltd (ASX: FMG) shares have a trailing dividend yield of 5.3%.

Outside of the banks and miners, other strong ASX dividend shares include the energy giants, telcos, and utilities shares.

Woodside Energy Group Ltd (ASX: WDS) shares are trading on a trailing dividend yield of 5.39%.

Telstra Group Ltd (ASX: TLS) shares have a trailing yield of 3.75%.

ASX 200 utilities stock, APA Group Ltd (ASX: APA), has a trailing dividend yield of 5.39%.

The post CGT tax changes may encourage investors into ASX dividend shares: Expert appeared first on The Motley Fool Australia.

More reading

• 5 excellent ASX dividend shares to buy with $50,000
• What are the pros and cons of buying CBA shares in May?
• How to build passive income with ASX shares in 3 easy steps
• Why CBA, Paladin Energy and CSL shares crashed  9% to 17% this week
• Are Telstra shares a top buy for passive income?

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

If you are fortunate to have $50,000 to invest in the share market and want income, there are plenty of ASX dividend shares outside the usual bank-heavy conversation.

The key is finding companies that have the cash flow to support dividends over time.

With that in mind, here are five ASX dividend shares that could be worth considering.

CSL Ltd (ASX: CSL)

CSL has not been viewed as a traditional income stock for most of its history.

That has changed after a brutal 12 months for the biotech giant. Its share price weakness has caused a major earnings multiple contraction, lifting its forecast dividend yield to approximately 4% this year and next.

The company still has plenty to prove after a difficult period. But CSL remains a global healthcare leader with strong positions in plasma therapies, vaccines, and specialist medicines.

For investors willing to accept turnaround risk, CSL now offers a much more meaningful income profile than it has in the past.

Dicker Data Ltd (ASX: DDR)

Dicker Data offers income exposure from the technology supply chain.

The company distributes hardware, software, cloud, and cybersecurity products across Australia and New Zealand. This places it between major global vendors and the resellers that serve business customers.

Dicker Data has historically paid out a large portion of earnings as dividends. That makes profit performance important, but it also means shareholders can benefit when trading conditions are supportive.

With ongoing business investment in technology, Dicker Data remains an ASX dividend share with a different driver from the usual defensive names.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT owns convenience-based retail properties.

Its portfolio is focused on assets such as supermarkets, large-format retail, health and wellness, and essential services. These are areas where customer demand tends to be more resilient than discretionary shopping.

This gives the trust a practical income profile. Rent is supported by tenants that serve everyday needs, while the property base is spread across a range of locations.

For investors seeking income from real estate without relying on office towers or large shopping centres, HomeCo Daily Needs REIT could be worth a closer look.

Telstra Group Ltd (ASX: TLS)

Telstra Group remains one of the ASX’s best-known dividend shares.

The telecommunications giant benefits from a large customer base, essential services, and recurring revenue from mobile and broadband customers.

Its mobile network remains a key competitive strength. Demand for data continues to grow, and connectivity has become a basic requirement for households and businesses.

This gives Telstra a defensive quality that supports its appeal as an income share.

Woolworths Group Ltd (ASX: WOW)

Finally, Woolworths Group offers another defensive income option.

The supermarket operator benefits from recurring demand for groceries, with millions of customers shopping across its stores and digital channels each week.

Margins can still be affected by competition, wages, and supply chain costs. But Woolworths’ scale and market position give it resilience through different economic conditions.

For income investors, this ASX dividend share offers exposure to everyday spending rather than cyclical demand.

The post 5 excellent ASX dividend shares to buy with $50,000 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has positions in and has recommended Dicker Data, Telstra Group, and Woolworths Group. The Motley Fool Australia has recommended CSL and HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The retail conglomerate behind Peter Alexander and Smiggle continues to reward income investors, even as trading conditions stay tough.

Premier Investments Ltd (ASX: PMV) may not grab headlines as often as some of its ASX peers.

But for income investors it has quietly delivered a reliable stream of fully-franked dividends for years. 

With the company’s most recent half-year result now in the books, here is exactly what shareholders are receiving in 2026.

What Premier paid in the first half

Premier Investments declared a fully-franked interim dividend of 45 cents per share alongside its half-year results in March 2026. 

Across FY 2025, the company paid a total fully-franked dividend of 90 cents per share, split between interim and final payments. 

The next ex-dividend date falls on 3 August 2026, when Premier will declare its final dividend for FY 2026.

What analysts are forecasting

Macquarie carries an outperform rating on Premier Investments and forecasts fully-franked dividends of 95.2 cents per share for FY 2026, rising to 97.4 cents per share in FY 2027. 

Based on the share price at the time of writing, those forecasts imply dividend yields of around 7.9% and 8.1%, respectively. 

Macquarie holds a price target of $16.90 on the stock, suggesting meaningful capital upside alongside the income.

A word of caution

Investors should note that Premier’s current payout ratio sits above 100% of reported earnings, meaning the company distributes more than it earns on a statutory basis. 

That warrants attention from income-focused investors. 

Macquarie’s optimism rests largely on the strength of the Peter Alexander brand, which delivered a 4.9% sales increase to $312.3 million in the first half of FY 2026. 

Smiggle remains the drag, with sales falling 10.7% to $140.5 million in the same period.

Management expects full-year FY 2026 underlying EBIT of around $183 million, down from $195.4 million in FY 2025.

Foolish Takeaway

Premier Investments offers one of the highest forecast dividend yields in the ASX retail sector right now.

Investors should keep an eye out on the payout ratio; any consistent payouts beyond 100% could lead to a dividend cut. 

But if Premier Investments can continue to grow the Peter Alexander brand, investors may benefit from consistently high dividend payouts.

The post Here is what Premier Investments shares are paying shareholders in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven 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. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.