Tag: Stock pick

CSL Ltd (ASX: CSL) shares have had a year to forget.

Shares in the S&P/ASX 200 Index (ASX: XJO) biotech giant closed down 1.0% on Friday, trading for $120.84 apiece.

That sees the stock down a painful 49.6% over the past 12 months, relative to the 6.4% gains posted by the benchmark index over this same time.

Now CSL does pay dividends twice yearly. But the $4.26 a share in unfranked dividends the biotech company paid out over the last year fall far short of making up for the steep capital losses.

At Friday’s close, CSL shares trade on a 3.5% unfranked trailing dividend yield.

Looking ahead, however, Mans Carlsson, a co-portfolio manager at Ausbil Investment Management, believes the ASX healthcare stock is well-placed for material recovery (courtesy of The Australian Financial Review).

Should you buy CSL shares today?

Noting that his fund is overweight CSL shares, Carlsson said:

CSL is a quality business and while the company has had its issues recently, the business ultimately benefits from strong underlying demand and has a leading position in its core plasma business.

The second reason Carlsson is bullish on the biotech stock is the recent leadership shakeup.

Carlsson noted:

The new chief executive, Gordon Naylor, has come in after a period of challenging performance. He is a veteran, with over 30 years of experience in the company, having previously served as chief financial officer, and with a mandate to accelerate CSL’s strategic transformation.

CSL announced the leadership change on 10 February. The handover from outgoing CEO Paul McKenzie, who served in the top role for three years, was effective immediately.

Commenting on his appointment on the day, Naylor said:

I have had a long association with CSL. It is a great company with innovative platforms, world-class people, as well as differentiated medicines and vaccines essential for patients and communities globally.

My immediate priority will be to work closely with the board and leadership team on executing our strategic transformation and delivering for our patients, public health and shareholders.

Which brings us to the third reason you might want to buy CSL shares today.

According to Ausbil’s Carlsson:

We believe the current valuation to be more moderate relative to its own history and some market cap peers. In our view, it will not take too much of a positive surprise in the future for the stock to re-rate back to a higher multiple again.

The post 3 compelling reasons to buy CSL shares today appeared first on The Motley Fool Australia.

More reading

• Money to invest? I’d follow Warren Buffett to get rich
• ASX share volatility is rising, are you making this mistake?
• 8 ASX 200 shares with renewed buy ratings this week
• CSL shares hit a 9-year low, time to buy or stay away?
• The Aussie dollar just hit a 4-year high. Which ASX shares will benefit?

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 CSL. 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.

A $1,000 investment is more than enough to get started with ASX exchange traded funds (ETFs).

The appeal is simple. Instead of trying to build a basket of individual ASX shares with the money, investors can gain exposure to dozens or even hundreds of shares through a single trade.

But which ETFs could be worth looking at right now? Here are three ASX ETFs that stand out for different reasons.

iShares S&P 500 ETF (ASX: IVV)

The first ASX ETF to look at is the iShares S&P 500 ETF.

This fund gives investors access to the S&P 500, which is home to many of the largest listed companies in the United States.

That means a $1,000 investment in the iShares S&P 500 ETF can provide exposure to businesses across technology, healthcare, financials, industrials, and consumer sectors.

Its holdings include Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and JPMorgan Chase (NYSE: JPM).

The advantage here is diversification. This fund is not a narrow bet on one industry or theme. It offers exposure to a large part of the US share market, which has historically been a major driver of global equity returns.

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

Another ASX ETF that could be worth considering is the Betashares Global Robotics and Artificial Intelligence ETF.

This fund targets companies involved in robotics, automation, and artificial intelligence. These areas are becoming more important as businesses look for ways to improve productivity and reduce costs.

It owns companies across several markets and industries, which gives investors exposure to more than just one part of the AI story. This includes Intuitive Surgical (NASDAQ: ISRG), NVIDIA (NASDAQ: NVDA), and ABB (SWX: ABBN).

This mix gives the fund exposure to factory automation, chips, medical robotics, and industrial technology. These are areas where adoption can continue to grow over many years.

This fund was recently recommended by analysts at Betashares.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

A third ASX ETF worth considering is the Betashares Global Cash Flow Kings ETF.

This fund focuses on global companies that generate strong free cash flow.

That can be an attractive trait because free cash flow gives businesses options. They can reinvest in growth, pay dividends, buy back shares, reduce debt, or make acquisitions.

This fund is therefore less about chasing a single hot theme and more about backing companies with financial strength.

Its holdings include Alphabet (NASDAQ: GOOG), Mastercard (NYSE: MA), and Palantir (NASDAQ: PLTR).

For those wanting quality global exposure with a cash flow focus, the Betashares Global Cash Flow Kings ETF could be a smart ETF to buy with $1,000. It was also recently recommended by analysts at Betashares.

The post Are these the best ASX ETFs to buy with $1,000 now? appeared first on The Motley Fool Australia.

More reading

• The best way to invest in AI on the ASX
• 3 strong ASX ETFs to buy and hold for a decade or more
• How to become a millionaire with ASX shares starting with $0
• Here’s why I think ASX growth investors should embrace index investing in 2026
• Why these ASX ETFs could be top picks in May

JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Abb, Alphabet, Amazon, Intuitive Surgical, JPMorgan Chase, Mastercard, Microsoft, Nvidia, Palantir Technologies, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Microsoft, Nvidia, 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.

Qantas Airways Ltd (ASX: QAN) shares have had a rough run since the end of February.

On Friday, shares in the S&P/ASX 200 Index (ASX: XJO) airline stock closed the day at $8.90 each.

That sees the Qantas share price down 16.43% since the 25 February close of $10.65 a share.

For some context, the ASX 200 is down 4.21% over this same period.

Now, I should mention that Qantas traded ex-dividend on 10 March. Eligible stockholders will have received that fully-franked 19.8 cents a share dividend on 15 April. Which puts the accumulated value of the stock down a lesser 14.57% since February.

We’ll look at why a leading fund manager believes Qantas stock could come flying back in a tick.

But first…

What’s been pressuring the ASX 200 airline stock?

Qantas shares closed down 9.2% on 26 February, despite reporting some strong half-year results on the day.

Highlights for the six months included a 6% year-on-year increase in revenue to $12.9 billion. And on the bottom line, Qantas reported underlying profit before tax of $1.46 billion, up $71 million.

It’s unclear if the selling was spurred by investor concerns over reduced travel demand amid rising inflation and interest rates, or whether some investors may have seen the writing on the wall in terms of the US and Israeli strikes on Iran over the following weekend.

But the onset of the Iran war on 28 February has certainly thrown up headwinds for Qantas and other global airlines.

Atop from potentially decreasing international travel demand, the Middle East conflict has sent oil prices soaring.

On 27 February, Brent crude oil was trading for US$72 per barrel. The oil price then went on to top US$118 per barrel on 29 April. On Friday, Brent crude oil was fetching US$102 per barrel, up almost 30% since the start of the war.

Now, that’s a big deal for Qantas shares.

Why?

Well, on 26 February, Qantas forecast that its second half-year (H2 FY 2026) jet fuel costs would come in at around $2.5 billion.

But in a market update on 14 April, Qantas revealed that it now expects second half-year jet fuel costs to be in the range of $3.1 billion to $3.3 billion.

Which certainly puts my own fuel bills into perspective!

Why Qantas shares could be poised for take off

Asked which stock his fund holds that’s most undervalued by the market, Mans Carlsson, co-portfolio manager at Ausbil, recommended that investors consider Qantas (courtesy of The Australian Financial Review).

And much of his bullishness stems from the impact of the recent oil price spike.

“The market has priced an assumption that oil prices remain elevated, and we believe that investors need to look through the current geopolitical crisis,” Carlsson said.

“At present, Qantas is trading at an FY28 price-earnings ratio of approximately seven times, which is extremely low versus the market average,” he added.

Summarising his bullish view on Qantas shares, Carlsson concluded, “We think that as we move beyond the oil supply shock, Qantas could be set for a significant re-rate on improving operating conditions.”

The post Down 17% since February, why Qantas shares are looking like a bargain buy appeared first on The Motley Fool Australia.

More reading

• How much passive income could I make with $10,000 in Qantas shares?
• Why DigiCo, HMC Capital, Infratil, and Qantas shares are taking off today
• Should I buy CBA and Qantas shares this month?
• I’d buy BHP and these ASX 200 shares with $5,000 in May
• Top 10 ASX shares bought and sold in April

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.

Light & Wonder Inc (ASX: LNW) released its quarterly results to the market over the past week, and the brokers like what they see.

Both of the analyst teams at UBS and Macquarie have very bullish share price targets on Light & Wonder shares, which we’ll get to shortly.

Solid, yet unexceptional, first quarter

Firstly, let’s look at what the company announced.

Light & Wonder said in its statement to the ASX that revenue grew 2% during the first quarter to US$790 million, “against a strong prior year period”.

The company said:

Light & Wonder delivered a solid start to 2026 underpinned by its highly diversified business model, continued disciplined execution across all three businesses and strong cash flow generation, while demonstrating resilience against a backdrop of macroeconomic and geopolitical uncertainty, including tariff-related pressures. We continue to execute against our commitment to deliver enhanced quality of earnings through recurring revenue(4), with Gaming operations and iGaming as the primary growth drivers during the quarter, each delivering double-digit year-over-year revenue increases. This was further underpinned by continued operational momentum and content strength.

The company’s net income came in at US$52 million, down 37% on the first quarter the previous year, “reflecting approximately US$50 million in legal reserve contingencies associated with certain legacy legal matters, which impacted year-over-year net income and net income per share growth by approximately 61% and 67%, respectively”.

The company said its installed base in the North American market grew for the 23^rd consecutive quarter.

Light & Wonder Chief Executive Officer Matt Wilson said:

The first quarter of 2026 marks the beginning of the next phase of the Company’s growth trajectory: one defined by our content-centric operating model, deepening customer relationships, disciplined execution, expanding margins and enhanced capital structure. We are seeing the benefits of our continued investment in studios and content, as our franchises drive strong game performance across the portfolio. Looking ahead, we remain focused on investing in product innovation and talent to further strengthen our recurring revenue model and enhance our global competitive position as we progress toward our 2028 financial targets.

Shares looking cheap

Macquarie said in a note to clients following the release of the quarterly results that it was positive that Light & Wonder had flagged an acceleration of its buyback in the second quarter.

They said they were confident the company could deliver 5% to 9% EBITDA growth this year.

Macquarie’s price target on the stock is $200, compared with $111.02 at the time of writing.

UBS said the first quarter results disappointed against their expectations, “but we have hardly changed our full year estimates or valuation and remain positive on LNW with significant valuation upside”

UBS has a price target of $210 on Light & Wonder shares.

Light & Wonder is valued at $9.09 billion.

The post How high do UBS and Macquarie think this ASX gaming stock will go? appeared first on The Motley Fool Australia.

More reading

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• Down 35%: Is this ASX 200 share a strong buy now?

Motley Fool contributor Cameron England 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 Light & Wonder Inc and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Light & Wonder Inc. 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 may be one of the most popular dividend options because of the company’s perceived stability and dividend yield.

The ASX bank share usually has a higher dividend yield than competitors like Commonwealth Bank of Australia (ASX: CBA) and Macquarie Group Ltd (ASX: MQG), and a similar yield to names like National Australia Bank Ltd (ASX: NAB) and ANZ Group Holdings Ltd (ASX: ANZ).

Westpac has significantly increased its payout since the COVID-19 pandemic headwinds in 2020.

The recent FY26 half-year result was another example of the ASX bank’s share stability for shareholders and its ability to regularly increase its dividends.

In the HY26 result, Westpac hiked its interim dividend per share by 1.3% to 77 cents after a 1% year-over-year rise of the underlying net profit after tax (NPAT) to $3.5 billion.

In this article, we’re going to look at the annual FY27 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 $1.625 in the 2027 financial year.

At the time of writing, this forecast translates into a dividend yield of 4.2% excluding franking credits and a grossed-up dividend yield of 6% including franking credits.

If someone were to invest $8,000 in Westpac, they would be able to buy 205 Westpac shares (with a little bit of money left over).

With those 205 Westpac shares, investors could receive $333.13 of cash and $475.89 overall, including the franking credits.

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

According to CMC Invest, there have been nine analyst ratings calls on the business in the last three months.

Of those nine, six of them were a sell and three of them were a hold. So, the investment professionals are largely negative on the appeal of the company’s valuation right now.

The average price target of those nine ratings is $35.14. That means, collectively, those analysts are predicting the Westpac share price could fall by around 10% within the next year.

Earlier in May, the Westpac share price had fallen to below $38, but it has since jumped higher after the FY26 half-year result and a higher prospect of interest rate rises amid stronger inflation.

For now, there seem to be more compelling ASX shares out there to buy.

The post If I invest $8,000 in Westpac shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

More reading

• Here’s what Westpac says the RBA will do with interest rates next
• ASX share volatility is rising, are you making this mistake?
• Why Macquarie, QBE, Tabcorp, and Westpac shares are dropping today
• 7 ASX 200 shares just upgraded this week
• The ASX 200 just suffered its biggest fall in 7 weeks. Here’s what’s going on

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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and 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.

ASX exchange-traded funds (ETFs) have surged in popularity among Australian investors for good reason. They offer low-cost diversification, simplicity, and easy access to a wide range of markets.

But while ETFs are beginner-friendly, that doesn’t automatically mean they’re easy to use well.

If you’re just getting started, avoiding a few common mistakes can make a meaningful difference to your long-term results.

Overcomplicating your portfolio

One of the most common errors is overcomplicating a portfolio. New investors often assume that owning more ASX ETFs automatically means better diversification. In practice, holding multiple funds that track similar global markets can create unnecessary overlap without adding real benefit.

A simpler approach often works better. A single broad-market ETF can already provide exposure to hundreds or even thousands of companies in one trade, delivering instant diversification without the clutter.

Chasing trends instead of strategy

Another trap is chasing what’s popular rather than sticking to a strategy. It’s easy to get drawn into trending themes like technology, artificial intelligence, or niche thematic ASX ETFs. While these can be exciting, they often come with higher volatility and higher fees.

A more disciplined approach is to focus on broad, low-cost index funds that track established markets. Over time, consistency tends to matter more than trying to pick the next hot theme.

Ignoring fees adds up

Fees are another factor many beginners underestimate. Even small differences in management costs can compound significantly over the long term. A fund charging 0.7% annually versus 0.2% might not look like much in isolation, but over decades it can materially reduce returns.

That’s why low-cost ASX ETFs are often the starting point for many investors. Keeping costs down is one of the few controllable factors in investing, and it directly impacts outcomes.

A simple ETF strategy to get started

For those looking for a simple starting framework, a basic ETF strategy can go a long way. Begin with one or two broad-market ASX ETFs, invest consistently through regular contributions, reinvest dividends where possible, and stay invested over the long term. This approach removes much of the emotional decision-making around timing the market.

In terms of building a core portfolio, many investors start with exposure to both domestic and international markets. For Australian shares, an ETF tracking the S&P/ASX 200 Index (ASX: XJO) like BetaShares Australia 200 ETF (ASX: A200) provides access to the country’s largest companies, including major banks, miners, and healthcare stocks.

To diversify globally, the Vanguard MSCI Index International Shares ETF (ASX: VGS) is a popular option, offering exposure to thousands of companies across developed markets. This helps reduce reliance on the Australian economy and adds exposure to global sectors like technology and consumer brands that are underrepresented locally.

For investors focused on income, dividend-oriented ASX ETFs, such as the Vanguard Australian Shares High Yield ETF (ASX: VHY), can provide regular cash distributions, though they often lean more heavily toward sectors such as financials and resources.

Foolish Takeaway

Ultimately, ASX ETF investing doesn’t need to be complex to be effective. In fact, simplicity is often the edge. By avoiding common beginner mistakes like over-diversifying, chasing trends, and ignoring fees, investors can build strong long-term portfolios with minimal effort.

Start small, stay consistent, and think long term. That’s often where the real advantage lies.

The post Building wealth with ASX ETFs? Don’t make these errors appeared first on The Motley Fool Australia.

More reading

• 10 years until retirement: Is your superannuation ready?
• How to build a $1,000 a month passive income from the ASX
• How to make $12,000 of passive income from these ASX ETFs
• ASX share volatility is rising, are you making this mistake?
• How much do I need to invest in ASX dividend shares for a retirement income of $5,000 per month?

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF 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.

With inflation back on the boil and the Reserve Bank of Australia pulling the trigger on multiple interest rate hikes, should you still buy ASX shares?

I won’t leave you hanging.

While higher costs and rates will impact market dynamics, my answer remains a resounding yes.

But you may wish to target a different basket of ASX shares than you might buy in a falling rate environment.

We’ll look at a few you may want to consider adding to your portfolio below.

But first…

What on earth is happening with interest rates in Australia?

Inflation down under was already ticking higher in the latter months of 2025 and into 2026 before the onset of the Iran war at the end of February.

That resurgent inflation was partially spurred by greater capacity pressures. But with energy costs rocketing amid the Middle East conflict, cost of living pressures are likely to ramp significantly higher before we see any relief.

In an effort to get ahead of the curve, this saw the RBA boost Australia’s official interest rate by another 0.25% on Tuesday. This third consecutive hike from the central bank sees the official interest rate at 4.35%. That’s back at its 2024 peak, and it matches the highest rate levels since 2011.

While many ASX shares initially sank on the RBA’s afternoon announcement on Tuesday, the All Ordinaries Index (ASX: XAO) clawed back those losses to close the day around where it was before the rate hike news hit the wires.

Buying ASX shares in a higher interest rate environment

Commenting on the RBA’s latest interest rate increase, and how investors should respond, Josh Gilbert, lead analyst for APAC at eToro, said:

The takeaway for portfolios is that boring can be brilliant in this environment. Focus on quality balance sheets and pricing power, because companies that can pass costs through without losing volume are the ones that can hold up best with the current macro backdrop.

One ASX share that looks to fit this bill is Transurban Group (ASX: TCL).

While the toll road owner and operator won’t be immune to the impacts of higher energy prices on its traffic volumes, Transurban is able to increase prices to match inflation across many of its toll roads. Indeed, the company reported that more than 90% of its revenue is either CPI-linked or with fixed escalations.

Other ASX shares that could perform well amid rising inflation and rates are insurance stocks.

Companies like QBE Insurance Group Ltd (ASX: QBE) and Suncorp Group Ltd (ASX: SUN) generally hold a sizeable pool of cash and bonds, which should offer an income boost amid higher interest rates.

And don’t lose track of the Aussie dollar.

With Australian interest rates outpacing those in the United States, the Aussie dollar hit four-year highs this week, recently trading for 72.4 US cents. That’s up from 64.3 US cents a year ago.

This big shakeup in currency exchange rates should tend to favour importers over exporters. Imported goods will be cheaper in Aussie dollar terms while exported goods will be more expensive for buyers paying in US dollars.

The post Should you still buy ASX shares amid fast-rising inflation and interest rates? appeared first on The Motley Fool Australia.

More reading

• 2 high-quality ASX 200 shares experts rate as buys
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• How to build a $1,000 a month passive income from the ASX
• Why is this ASX financial stock dropping despite solid results?
• Why Macquarie, QBE, Tabcorp, and Westpac shares are dropping today

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

Commonwealth Bank of Australia (ASX: CBA) shares have been one of the most popular investments on the ASX for a very long time.

It’s not hard to understand why.

CBA is Australia’s largest bank, it has a powerful retail banking franchise, a strong digital offering, and a long history of rewarding shareholders with dividends. 

For many investors, it is the kind of blue-chip share that sits at the core of a portfolio rather than on the speculative edge.

But after such a strong run, it is fair to ask what a $10,000 investment in CBA shares could become over the next year.

Why CBA shares remain so popular

CBA has a special place in the Australian share market.

It is widely owned by retail investors, super funds, income investors, and institutions. Part of that comes down to its size and stability. But I think the bigger reason is its track record.

Over long periods, CBA has shown an ability to generate strong profits, pay dividends, and maintain a premium position among the major banks.

It has also invested heavily in its technology and customer experience. I think that has helped it defend its market position at a time when banking has become more competitive.

The bank is still exposed to the usual risks. Mortgage competition, bad debts, funding costs, regulation, and the broader economy all matter.

But CBA has generally been viewed as the highest-quality of the major banks, and the market often prices it accordingly.

The return history

Over the last 10 years, CBA shares have delivered an average total return of 11.45% per annum.

That total return includes both share price growth and dividends, which is important. With a bank like CBA, dividends have historically been a major part of the investment case.

However, I would be careful about assuming the next year will look like the last decade.

A 10-year average can be useful, but it does not predict what happens in any single year. Share prices can move sharply in both directions over 12 months, even for high-quality blue chips.

A more realistic assumption

The broader share market has often been assumed to return around 9% per annum over the long term.

That is not guaranteed either, but I think it is a more balanced number to use when thinking about future returns.

CBA could do better than that. It could also do worse.

Its valuation, interest rates, credit conditions, dividend outlook, and investor sentiment will all influence what happens over the next year.

That is why I would treat the numbers as scenarios rather than forecasts.

What the numbers show

If CBA were to repeat its 10-year average total return of 11.45% over the next year, a $10,000 investment would grow to approximately $11,145.

That would mean a gain of around $1,145, including dividends and capital growth.

If the investment instead returned 9%, which may be a more realistic long-term market-style assumption, $10,000 would grow to approximately $10,900.

That would represent a gain of around $900.

Neither outcome is guaranteed. A weak year for bank shares could leave the investment worth less than $10,000. A strong year could push it well above these figures.

Foolish takeaway

CBA shares are not likely to turn $10,000 into a fortune in a single year.

But for me, the attraction is owning a proven ASX blue chip that has rewarded patient investors over many years through a combination of dividends and capital growth.

The next 12 months could be better or worse than the long-term average, but I think CBA remains a quality share to consider for investors who are focused on building wealth steadily rather than chasing quick gains.

The post What could $10,000 invested in CBA shares become in 1 year? appeared first on The Motley Fool Australia.

More reading

• Money to invest? I’d follow Warren Buffett to get rich
• How to build a $1,000 a month passive income from the ASX
• The ASX 200 just suffered its biggest fall in 7 weeks. Here’s what’s going on
• Warning! Experts name 3 ASX 200 shares to sell
• Why the ASX 200 is charging higher today

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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.

For ASX investors looking to build an ultimate retirement portfolio, it’s the dividends that are going to be the key factor when deciding on a potential investment.

You’ve got your classic dividend stocks that most investors will consider, such as Westpac Banking Corp (ASX: WBC), Telstra Group Ltd (ASX: TLS) and BHP Group Ltd (ASX: BHP). But I think many investors looking to build the ultimate retirement portfolio would be more partial to monthly dividend payers.

Retirees obviously need a good source of passive income, delivered regularly and reliably. That’s why I think these two monthly ASX dividend payers are well worth a look for those trying to build a solid retirement portfolio.

Ultimate retirement portfolio: 2 ASX dividend stocks that pay income monthly

First off, let’s start with an exchange-traded fund (ETF). The BetaShares S&P Australian Shares High Yield ETF (ASX: HYLD) is an ETF that is specifically designed to provide high levels of franked dividend income to ASX investors. It does this by holding an underlying portfolio filled with top ASX dividend shares. At the most recent numbers, these included Rio Tinto Ltd (ASX: RIO), ANZ Group Holdings Ltd (ASX: ANZ), Macquarie Group Ltd (ASX: MQG) and Transurban Group (ASX: TCL), amongst many others.

HYLD uses this portfolio to fund monthly dividends for its investors. This does tend to fluctuate. However, as of 31 March, the provider told investors that HYLD was trading on a trailing dividend yield of about 4.2%. Like any income stock, there is no guarantee that this will continue or increase going forward, of course. But given the quality of HYLD’s underlying portfolio, I think this is a great stock to consider for the ultimate retirement portfolio.

Next up, let’s talk about Plato Income Maximiser Ltd (ASX: PL8). Plato is a listed investment company (LIC), meaning that, similar to an ETF, it holds an underlying portfolio of investments that it manages on behalf of its shareholders. Unlike an ETF, though, Plato has far more discretion over its dividend payments, which it tends to keep consistent over time.

Plato’s portfolio holds many of the companies that can be found in HYLD, including BHP, ANZ and Telstra. It also currently features Coles Group Ltd (ASX: COL), Medibank Private Ltd (ASX: MPL) and Woodside Energy Group Ltd (ASX: WDS).

Plato also pays out monthly dividends, which tend to come fully franked as a bonus. At recent pricing, this ASX dividend stock was trading on a healthy yield of about 4.85%.

The post Build the ultimate retirement portfolio with these 2 monthly ASX dividend stocks appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Plato Income Maximiser. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Transurban Group. The Motley Fool Australia has positions in and has recommended Macquarie Group, Telstra Group, and Transurban Group. 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.

Tech stocks have had a volatile start to 2026.

After a strong run in previous years, many high-quality names have pulled back amid shifting interest rate expectations and a broader rotation away from growth. 

That kind of environment can make it uncomfortable to invest, but it can also create opportunities.

Right now, these are three ASX tech stocks I think are worth considering if you have $3,000 to invest.

Megaport Ltd (ASX: MP1)

Megaport is building critical infrastructure for the cloud economy.

Its platform allows businesses to connect to cloud providers and data centres on demand, creating a flexible alternative to traditional networking. 

As more companies shift workloads to the cloud, the need for fast, scalable connectivity continues to grow.

Megaport has not always had a smooth journey, but recent progress around profitability and cost control has been encouraging. As has its acquisition of Latitude, which recently announced a big contract win.

If it can continue improving margins while growing its global footprint, there is clear upside over time.

After the recent tech sell-off, I think it looks like a more interesting entry point than it did previously.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is a very different type of tech company. It is not trying to disrupt everything overnight. 

Instead, it has built a steady, highly profitable enterprise software business serving government, education, and large organisations.

Its transition to a SaaS model has improved revenue visibility and margins, and it continues to expand internationally. While the shares have pulled back from recent highs, the underlying business keeps executing.

For me, TechnologyOne is one of the more reliable growth names on the ASX, which makes any weakness worth paying attention to.

Catapult Sports Ltd (ASX: CAT)

Catapult Sports is another ASX tech stock I would consider in May.

The company provides performance technology and analytics software for elite sports teams. Its products help clubs and organisations monitor athletes, manage workloads, analyse performance, and make better decisions.

What I like about Catapult is that it operates in a niche with global potential. Professional sport is becoming more data-driven, and teams are looking for every possible edge. That creates demand for tools that can help improve performance, reduce injury risk, and support coaching decisions.

Catapult has also been working to improve the quality of its earnings, with more focus on recurring revenue and disciplined growth.

This is still a smaller and higher-risk technology business compared with TechnologyOne, but I think the opportunity is attractive.

If it can keep expanding across elite sport and deepen its relationships with customers, Catapult could become a much larger business over time.

Foolish Takeaway

Tech sell-offs can be uncomfortable, but they can also create better entry points into businesses that still have years of growth ahead.

That is why I would not ignore this part of the market in May.

Megaport, TechnologyOne, and Catapult Sports each offer exposure to a different kind of technology demand, from cloud connectivity to enterprise software to elite sport.

For investors willing to think beyond the next few months, I think all three deserve a closer look.

The post 3 super ASX tech stocks I’d buy in May with $3,000 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 positions in and has recommended Catapult Sports, Megaport, and Technology One. The Motley Fool Australia has positions in and has recommended Catapult Sports. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.