Tag: Stock pick

Superannuation is a very effective tool for investors to generate returns with a lower tax rate. It could be a very useful way to invest for Aussies wanting passive income.

The main reason it’s so appealing is that superannuation has a lower tax rate compared to many individuals, trusts and companies. I believe the nature of the superannuation structure, and how Aussies access that money in retirement, enable investors to invest for the long-term.

Receiving passive income is one of the rewarding elements of owning ASX shares with how little effort we need to put in for the ongoing dividend payments.

In my opinion, the passive income we receive after tax is a more important figure than the before-tax figure, because that’s what investors get to keep.

Superannuation can have a tax rate as low as 0% in retirement. That’s great. In the accumulation phase, the superannuation 15% tax rate on income is lower than what many individuals or companies may experience.

Every household may have a different tax situation, so I’ll just focus on a specific dividend income target and won’t refer to tax rates from now on.

How much is needed in superannuation for $100,000 of annual passive income?

Receiving $100,000 in dividends each year would be wonderful, in my opinion. I’d love to receive that much, though I’ve got a long way to go to get there.

There are a variety of asset classes that investors can consider for income such as term deposits, bonds, property and shares.

I think that ASX shares are the best choice for passive income, partially thanks to the excellent bonus of franking credits.

The portfolio size required to earn $100,000 depends on the size of the dividend yield.

As an example, a portfolio with a 5% dividend yield would require a $2 million portfolio. If a portfolio had a dividend yield of 6%, it would need a $1.67 million portfolio.

Different dividend yields require different-sized portfolios to reach that $100,000 of passive income from superannuation.

The sorts of ASX dividend shares I’d buy

Within the ASX share space, there are a few different types of dividend options that offer good dividend yields, such as real estate investment trusts (REITs), S&P/ASX 300 Index (ASX: XKO) shares and compelling listed investment companies (LICs).

Some of the businesses I’d consider with a lower-to-medium dividend yield include Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES), Australian Foundation Investment Co Ltd (ASX: AFI) and Telstra Group Ltd (ASX: TLS).

Some of the higher-yielding names I’d consider include WCM Global Growth Ltd (ASX: WQG), Future Generation Global Ltd (ASX: FGG), Future Generation Australia Ltd (ASX: FGX), Centuria Industrial REIT (ASX: CIP) and Dexus Industria REIT (ASX: DXI).

There are even more ASX dividend shares that superannuation investors could consider for passive income, but I think the above names are a useful starting list.

The post How much superannuation is needed to target a $100,000 annual passive income? appeared first on The Motley Fool Australia.

More reading

• How much passive income can I earn off a $50,000 portfolio?
• How much do I need in superannuation to receive $6000 per month in passive income?
• How to build a successful ASX dividend portfolio
• How I’d invest $10,000 in ASX shares for the next decade
• 3 of the best ASX dividend stocks to supplement your superannuation

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, Future Generation Global, Washington H. Soul Pattinson and Company Limited, and Wcm Global Growth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group and Washington H. Soul Pattinson and Company Limited. 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.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) recovered from a poor start to end the day flat at 8,808.5 points.

Will the market be able to push on from this on Wednesday? Here are five things to watch:

ASX 200 to rise

The Australian share market looks set for a good session on Wednesday following a solid night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 45 points higher. In the United States, the Dow Jones rose slightly, the S&P 500 climbed 0.4%, and the Nasdaq stormed 0.9% higher.

Oil prices climb again

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have another good day of trade on Wednesday after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 2.4% to US$80.02 a barrel and the Brent crude oil price is up 2.8% to US$85.62 a barrel. This was driven by news that the US has launched new strikes on Iran.

Buy Nick Scali shares 

Bell Potter continues to rate Nick Scali Limited (ASX: NCK) shares as a buy. However, the broker has trimmed its price target from $25.00 to $22.00. This still implies potential upside of 40% and a dividend yield of 4%. It said: “With a cautiously optimistic view on the broader Consumer Discretionary sector and looking through to mid-term opportunities, we continue to favour category outperformers such as NCK and see lower risk on margins in manoeuvring revenue growth vs other retailers in our coverage. This sees us sitting ahead of median Consensus in FY27/28e (below in FY26e). We view NCK among the highest quality retailers in our coverage, with a stable market share in ANZ and UK offering sufficient growth levers.”

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session on Wednesday after the gold price rebounded overnight. According to CNBC, the gold futures price is up 1.3% to US$4,058.1 an ounce. Traders were bidding gold higher after US inflation came in softer than expected.

Evolution Mining update

Evolution Mining Ltd (ASX: EVN) shares will be on watch on Wednesday when the gold miner releases its fourth-quarter update. When Evolution Mining released its last quarterly update, it revealed that it was on track for a strong result. It said: “On track to deliver FY26 gold production at lower than original cost guidance with March quarter production of 170koz gold and 11kt copper at an All-in Sustaining Cost (AISC) of $2,220/oz.”

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

More reading

• Why Nick Scali shares are set for a 36% rebound: Expert
• Here are the top 10 ASX 200 shares today
• Steadfast Group takeover bid update: KKR joins consortium
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today

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

Nick Scali Ltd (ASX: NCK) operates as one of the most recognisable companies in the consumer discretionary sector. 

It is one of Australia’s largest furniture retailers competing within the middle to upper end of the Australian furniture market. It also has a growing global presence via its UK entry.

In general, it has been a tough year for consumer discretionary shares. Inflation and high interest rates have impacted consumer spending. 

This has been reflected in the performance of Nick Scali shares, which are down over 30% in 2026. 

However, a new report from Bell Potter has suggested Nick Scali shares may have been oversold, creating a buy-low opportunity. 

Strength into close of FY26 – cautious on FY27

In yesterday’s report, Bell Potter said it expects Nick Scali to finish FY26 strongly.

Recent sales indicators have been positive, giving the broker confidence that the company’s seasonally strong fourth quarter met expectations.

However, Bell Potter is more cautious about FY27 because consumer confidence is weak in both Australia and the UK, especially for big-ticket household purchases like furniture.

The broker expects challenging trading conditions over the next nine months and believes FY27 will be the low point in the retail cycle.

Even so, Bell Potter expects Nick Scali to perform better than the average retailer during this difficult period.

There are also some early signs that improving housing activity in Australia and better industry trends in the UK could support a gradual recovery.

Bell Potter has reduced its FY27 and FY28 earnings forecasts, mainly because it now expects slower sales growth in the UK than previously forecast.

While our FY26e estimates remain unchanged, we apply some conservatism to our forward estimates within our revenue assumptions for NCK’s mid-market brand Plush in Australia and in the UK. Majority of our earnings changes are driven by revenue assumptions in the UK vs our previous assumptions for a sizable ramp-up in average store revenues.

Price target reduced but upside remains 

Based on this guidance, Bell Potter has reduced its price target on Nick Scali shares to $22.00 (previously $25.00). 

It has retained its buy recommendation. 

Despite lowering its target, the broker still forecasts over 36% upside from current levels. 

With a cautiously optimistic view on the broader Consumer Discretionary sector and looking through to mid-term opportunities, we continue to favour category outperformers such as NCK and see lower risk on margins in manoeuvring revenue growth vs other retailers in our coverage. 

This sees us sitting ahead of median Consensus in FY27/28e (below in FY26e). We view NCK among the highest quality retailers in our coverage, with a stable market share in ANZ and UK offering sufficient growth levers.

The post Why Nick Scali shares are set for a 36% rebound: Expert appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Top broker tips 47% upside for this ASX financials stock 
• 2 ASX small-caps with 40% upside
• 1 ASX dividend stock down 37% I’d buy right now
• Is this ASX consumer discretionary stock a buy after jumping 10% yesterday?

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

ASX blue-chip shares can be a great source of passive income, if we choose the right ones. For me, it’s about more than just what the dividend yield is.

I want to consider businesses that I am confident can deliver resilient payouts. Plus, I prefer ASX blue-chip shares with tailwinds that can enable them to increase their payouts over time.

The below two businesses offer pleasing diversification, a high level of passive income and potential growth. Let’s dive in.

Charter Hall Long WALE REIT (ASX: CLW)

This business is a real estate investment trust (REIT) that owns a diversified portfolio of commercial properties across Australia.

Its portfolio spans government-related buildings (such as Geosciences Australia in Canberra), pubs and hotels, grocery and distribution, telecommunication exchanges, service stations, food manufacturing, waste and recycling, Bunnings properties and plenty more.

I think this ASX blue-chip share’s $6 billion portfolio is very attractive and offers more diversification than any other ASX-listed property investment.

But it’s not just diversification that makes this a good investment – the business also has built-in rental indexation with its tenants. The rent is either growing in line with inflation or at a fixed annual rate.

In the first half of FY26, the business saw 3% growth of like-for-like property income. This allows the business to hike its FY26 annual distribution by 2% to 25.5 cents per unit. That translates into a dividend yield of 7%. That’s a great yield in my book.

It looks great value to me considering it’s trading at a 22% discount to the net tangible assets (NTA) of $4.68 at 31 December 2026.

WAM Leaders Ltd (ASX: WLE)

The other idea I want to tell you about is this listed investment company (LIC) which largely focuses on ASX blue-chip shares with an active management strategy.

That strategy of buying when prices are lower and selling when prices are higher has helped the team at WAM Leaders portfolio outperform the S&P/ASX 200 Accumulation Index (ASX: XJO) by an average of close to 3% more per year since the LIC’s inception in 2016, before fees, expenses and taxes.

By focusing on high-quality businesses, WAM Leaders can produce good returns in most economic conditions.

At the end of June 2026, some of its largest positions included Wesfarmers Ltd (ASX: WES), Woodside Energy Group Ltd (ASX: WDS), Stockland Corporation Ltd (ASX: SGP), Scentre Group (ASX: SCG), Nexgen Energy (Canada) CDI (ASX: NXG), Goodman Group (ASX: GMG), Charter Hall Group (ASX: CHC), Amcor CDI (ASX: AMC) and Ampol Ltd (ASX: ALD).

As you can see, it’s a portfolio full of ASX blue-chip shares.

The business has increased its annual payout each year since FY17, showing it has a great track record of providing rising dividends for investors.

It expects to pay an annual dividend per share of 9.6 cents in FY26, which translates into a forward grossed-up dividend yield of 9.8%, including franking credits, at the time of writing.

These aren’t the only ASX shares I’d buy for income, but they are among the ones I’d be very happy to buy for my portfolio.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

More reading

• How much passive income can I earn off a $50,000 portfolio?
• How to build a successful ASX dividend portfolio
• 2 leading ASX blue-chip shares experts think are buys
• How much do I need in my superannuation to get $52,000 per year in passive income?
• 5 top ASX dividend shares to buy in July

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 Goodman Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended 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.

Ballard Mining Ltd (ASX: BM1) has been delivering some encouraging exploration results recently, and the gold company’s story has piqued the interest of the analysts at Moelis Australia, who have just initiated coverage of the stock.

Moelis has a bullish share price target on the company’s shares, which we’ll get to shortly.

First, let’s look at the company’s recent announcements.

ASX gold company delivering with exploration success

Ballard in mid-June said in a statement to the ASX that it had made a new gold discovery north of its Baldock deposit.

The new Pluto discovery included intersections, including 5m at 10.2 grams per tonne of gold from 98m, and 7m at 3.7 grams per tonne from 19m.

Ballard also extended its Ayla discovery by 200m and returned more good results from its Neptune discovery.

Just a week later, the company reported more high grade results at Baldock outside of the current one million ounce resource.

Ballard Managing Director Paul Brennan said at the time:

This is a very exciting development for Ballard. These results have the potential to add a material resource uplift to the existing base load +1 Moz Baldock deposit. The Company’s CY2026 exploration program is currently optimised towards near-term development rather than fully testing the potential of the system. These results continue to reinforce our belief that Mt Ida is potentially a camp scale project that has been historically under-explored. As we work through the remainder of our planned drilling for this calendar year, our focus is on identifying the next 1 Moz at Mt Ida.

Shares looking like good value

Moelis said in its report on Ballard that the Australian gold sector was maturing, and it was turning its focus to companies further down the development curve.

Moelis said regarding Ballard:

The key tenements are already mine permitted, and studies are well advanced around the potential to develop a new gold mining operation capable of operating in excess of 8 years producing an initial 80koz Au annually. While very early stage, our modelling suggests total capital of approximately A$270m to establish an operation with competitive industry cash costs (aided by high grade underground ore feed).

Moelis said, on current timelines, the company could be in a position to formally commit to funding and development by the end of FY27, enabling first production at the start of FY29 via an open-pit mine, followed by an underground operation from CY30.

Moelis added:

In our view the exploration potential of the region is significant and could aid both higher production run rates or longer mine life with further discovery.

Moelis has a price target of 90 cents on Ballard Mining shares compared to 63.5 cents at the time of writing.

The post This ASX gold stock could jump more than 40%: Broker appeared first on The Motley Fool Australia.

More reading

• How to invest $20,000 in ASX ETFs in July
• How much passive income can I earn off a $50,000 portfolio?
• Up almost 50%, is it too late to buy BHP shares?
• Forget CBA shares, this ASX financials stock has strong momentum heading into FY27
• After soaring 9% yesterday, is this ASX stock a buy, hold or sell?

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 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.

A $20,000 investment can go a long way with ASX exchange-traded funds (ETFs).

I would use it to build a portfolio that is simple enough to hold, but still has enough variety to feel well balanced.

The four ETFs below would give me global reach, Australian exposure, US market strength, and a small tilt toward one long-term growth theme.

Here is how I would split the money in July.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

I would put the largest part of the $20,000 into this Vanguard ETF.

The reason is simple: it gives me exposure to a wide range of large companies across developed markets outside Australia.

That can be valuable for Australians because our local market is relatively small. Many of the world’s biggest healthcare, technology, industrial, consumer, and financial businesses are listed overseas.

This fund gives investors a way to own a slice of that global business machine without trying to pick each company individually.

I also like it as a core holding because it can quietly do its job in the background. Some years will be strong, others will be weaker, but a broad international ETF can help investors stay connected to global earnings growth over the long term.

Betashares Australian Quality ETF (ASX: AQLT)

I would still want some local exposure. But rather than simply buying the whole Australian market, I would consider this Betashares ETF because it focuses on quality companies.

The fund’s index looks for businesses with high returns on equity, lower leverage, and steadier earnings.

I like that because the Australian market can be heavily influenced by banks and resources shares. I like the idea of taking a more selective approach and focusing on companies with stronger financial characteristics.

This ETF could still fall when the ASX is weak. But over the long term, I think quality filters can help investors avoid some of the weaker parts of the market.

iShares S&P 500 ETF AUD (ASX: IVV)

This iShares ETF would give the portfolio an extra tilt toward the US share market.

While the first ETF already has some US exposure, I would still be comfortable adding this fund because Wall Street remains home to many of the world’s most dominant companies.

The S&P 500 is not just a technology story. It includes businesses across healthcare, payments, consumer products, manufacturing, financial services, software, and other areas.

What I like is the depth of the market. The US has a long record of producing companies that can scale globally, reinvest heavily, and become more valuable over time.

Betashares Global Cybersecurity ETF (ASX: HACK)

The final part of the $20,000 would go into a more focused ETF.

Cybersecurity is one of those areas that feels increasingly tied to how the modern economy works. Companies, governments, hospitals, banks, retailers, and households all rely on digital systems that need protection.

That creates demand for businesses involved in security software, threat detection, identity protection, cloud security, and related services.

This Betashares ETF is more targeted than the others, so I would keep the allocation smaller. Further, the share prices of cybersecurity companies can be volatile, especially if valuations become stretched.

Even so, I like the idea of having a small position in a theme that could remain important for many years.

Foolish takeaway

If I were investing $20,000 into ASX ETFs in July, I would focus most of the money on broad exposure and then add a couple of deliberate tilts.

The aim would be to own a portfolio that can grow with global markets, include some local quality, and capture a small slice of a powerful digital security trend.

I would not overcomplicate it.

A mix like this could give investors plenty of diversification while still making the portfolio feel purposeful. For me, that is exactly what a long-term ETF portfolio should do.

The post How to invest $20,000 in ASX ETFs in July appeared first on The Motley Fool Australia.

More reading

• Analysts are still bullish on SpaceX shares after Nasdaq inclusion. Here is what that means for ASX investors
• 3 ASX ETFs with strong long-term growth potential
• The best Vanguard ETFs to buy and hold
• ASX IVV and other iShares ETFs are paying dividends today!
• Where to invest $50,000 in ASX ETFs this month

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 BetaShares Global Cybersecurity ETF and iShares S&P 500 ETF. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Passive income is a great way for investors to build financial security, benefit from compounding, and create another income stream without working any extra hours.

The error that many investors make is thinking they need a million dollar investment portfolio to make it worth it.

The truth is, you don’t need to spend millions, or even hundreds of thousands. Any level of passive income can help contribute to your financial independence and also create a buffer against sharemarket volatility.

So, what could that passive income actually look like?

Let’s break it down, using a $50,000 investment portfolio as an example. 

What passive income can I earn off a $50,000 portfolio?

The easiest way to calculate your passive income is by multiplying your total portfolio value by your dividend yield.

But, the tricky part is that the answer varies widely depending on the dividend yield of your portfolio.

For example, $50,000 x 3% = $1,500 per year in dividend payments.

But if your portfolio has a dividend yield of around 6%, your passive income will be double the size. That’s because $50,000 x 6% = $3,000 per year in dividend payments. 

And so on. As your dividend yield increases, the passive income you can earn off your $50,000 portfolio also increases.  

These figures are based on cash dividends before any tax or franking credit benefits.

Of course, this type of money isn’t going to become a primary income stream, but it’ll certainly help create an extra buffer.

Which ASX shares will earn me $2,000 per year in passive income?

To earn an annual passive income of around $2,000, your portfolio will need to yield around 4%.

There is a huge range of ASX dividend shares available that pay around that level, so it’s certainly achievable.

For example, Argo Investments (ASX: ARG) pays just a little over the 4% mark at the time of writing. As does WCM Global Growth (ASX: WQG).

Major bank Westpac Banking Corp (ASX: WBC) pays a dividend yield of around 4.2% to its shareholders.

ANZ Group Holdings Ltd (ASX: ANZ) and Transurban Group Ltd (ASX: TCL) both pay a little more. Their dividend yields are around 4.6% and 4.7%, respectively.

Of course, ideally, you’d want a mixture of shares that combine to make a 4% yielding portfolio for diversification reasons, rather than a portfolio of only one stock.

What if I want to earn closer to $4,000 per year? Is that possible?

It’s also possible to earn a little more. To earn $4,000 in passive income, you’d need a portfolio that yields 8%. 

Again, there are plenty of ASX shares that yield around this level, but it’s worth noting that a higher yield generally comes with higher risk.

The Metrics Income Opportunities Trust (ASX: MOT) is a listed investment trust (LIT) which can give investors direct exposure to private credit investments. The Trust targets a cash yield of 7% per year. It has a total target return of 8% to 10% per year, net of fees and expenses. 

Charter Hall Long WALE REIT (ASX: CLW) and WAM Microcap (ASX: WMI) both yield in the low 7%.

And if you’re looking to target higher-yielding ASX shares, there are stocks like intellectual property (IP) service provider IPH Ltd (ASX: IPH), which yields around 9.6% and Centuria Office REIT (ASX: COF), which yields around 11.4%, at the time of writing.

Again, I wouldn’t suggest investing solely in high-yield shares in order to earn a higher income. But it’s possible to create a portfolio mix including high-yield ASX shares and more reliable or defensive assets to get an over 8% yielding portfolio. 

The post How much passive income can I earn off a $50,000 portfolio? appeared first on The Motley Fool Australia.

More reading

• ANZ, NAB, Westpac and CBA shares: Brokers rate 2 a sell, and 2 a hold
• Here’s the earnings forecast out to 2027 for ANZ shares
• How to build a successful ASX dividend portfolio
• 3 of the best ASX dividend stocks to supplement your superannuation
• 2 ASX shares with dividend yields above 9.5%

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

BHP Group Ltd (ASX: BHP) shares have been one of the stronger blue-chip performers over the past year.

That’s great for shareholders. But after this big move higher, is the mining giant still worth buying?

I think the answer is yes, but the case is very different from a year ago.

The easy bargain has passed

BHP shares are trading around $58.71, up almost 50% over the past 12 months.

That is a huge move for a company of this size. Investors who bought near the lows have already done very well.

So, I would not call BHP a bargain today in the same way it was when the market was more pessimistic. But I still think the shares offer reasonable value.

According to CommSec consensus estimates, BHP is expected to generate earnings per share of $3.56 in FY26 and $3.77 in FY27.

Based on the current share price, that puts the stock on a price-to-earnings ratio of around 16.5 times FY26 earnings and 15.6 times FY27 earnings.

That does not look demanding to me for a world-class resources business with long-life assets and exposure to commodities that could remain important for decades.

The dividend profile is also attractive. CommSec estimates dividends per share of $2.10 in FY26 and $2.06 in FY27, implying forward dividend yields of around 3.6% and 3.5%.

Why I still like BHP shares

The main reason I would still buy BHP is that the company is evolving.

Iron ore remains a major part of the business, and it will likely continue driving a large share of earnings for some time. But I think the long-term investment case is becoming broader.

Copper is the key one for me. The world is likely to need more copper for electricity networks, data centres, renewable energy, electric vehicles, industrial development, and general infrastructure. It is difficult to see how many of those trends grow without significantly more copper supply.

BHP already has strong copper exposure, and I think that part of the business could become increasingly important over the next decade.

The company is also expanding into potash through its Jansen project in Canada. That adds another long-term growth option tied to food production and agricultural productivity.

Mining projects can be expensive, slow, and difficult. Capital discipline still needs watching. But I like that BHP is positioning itself beyond just the next iron ore cycle.

Why resources exposure can help

The past year is a good reminder of why resources exposure can play a role in a diversified ASX portfolio.

Since July 2025, the S&P/ASX 200 Resources index (ASX: XJR) is up 38%, while the broader ASX 200 is up just 2.8%.

That gap is significant.

Resources shares can be volatile, and they often move for reasons outside a company’s control, including commodity prices, China demand, currency moves, and global growth expectations.

But that is also why they can add something different to a portfolio.

When resources are performing well, they can provide a source of returns that may look very different from banks, supermarkets, healthcare shares, or technology companies.

Foolish takeaway

I do not think it is too late to buy BHP shares.

The easy bargain has passed, and investors today are paying a much higher price than they were a year ago.

Even so, the valuation still looks reasonable to me, the forecast dividend yield is solid, and the company has exposure to commodities that could become more valuable over the next decade.

The post Up almost 50%, is it too late to buy BHP shares? appeared first on The Motley Fool Australia.

More reading

• What did the market look like 10 years ago? Here’s what’s changed for the ASX 200
• How much superannuation do you need to earn $5,000 a month in passive income?
• Should you buy BHP shares FY27? Here’s what experts are saying
• Do you want to earn passive income from your superannuation? Here’s a guide to get you started
• Top brokers name 3 ASX shares to buy next week

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

While many of the biggest ASX financials stocks have seen slow growth in 2026, Cuscal Ltd (ASX: CCL) has brought strong returns.

The S&P/ASX 200 Financials Index (ASX: XFJ) is up just over 2% year to date. 

Meanwhile, Cuscal shares have risen over 10% in the same span and over 52% in the last 12 months. 

What does Cuscal do?

Cuscal is a payment and regulated data services provider in Australia. 

The group offers a comprehensive suite of payment infrastructure solutions to a diversified client base. 

It enables a range of payment types, from physical cards to real-time payments, in the payment value chain and constantly evolves its offerings to meet the demands of a rapidly changing economy.

In the last 12 months, it has risen significantly on the back of a solid, growing business in a hot sector (digital payments). It has also been spurred on by strategic acquisitions and delivering the profit growth to back it up. 

Why it can continue 

A recent report from Ord Minnett has reinforced that there is still plenty of room for growth remaining. 

Ord Minnett said Cuscal’s share price has been supported by improved earnings momentum. This has been aided by the two strategically important acquisitions of Indue and Paymark. 

In addition, the FY26 price-to-earnings (P/E) multiple that investors have been willing to apply to Cuscal’s earnings has risen 21x from 11x at the time of the IPO to 21x currently. We see a forward P/E multiple of 18–20x as appropriate,given Cuscal’s strong defensive earnings growth outlook and B2B infrastructure positioning in the payments industry.

We expect FY26 results to beat market expectations, with net operating income (NOI) boosted by ongoing solid transaction volume growth and strong client deposit balances driving net interest income. Company guidance is for “mid-teens” underlying net profit growth in FY26, with Ord Minnett estimating growth of 16.8%.

Upside remains for this ASX financials stock 

‍Looking ahead, Ord Minnett believed the FY27 result will be underwritten by the contributions from Indue & Paymark. It projects further growth into FY29–30 as Cuscal banks the cost savings and other synergies from the acquisitions, and the outlook supports expectations for sustainable underlying net profit growth of 15–20% per annum. 

Based on this guidance, Ord Minnett has retained its buy recommendation on this ASX financials stock.

It has also retained its target price of $5.45.

From yesterday’s closing price of $4.89, this indicates a healthy upside of over 11%. 

The post Forget CBA shares, this ASX financials stock has strong momentum heading into FY27 appeared first on The Motley Fool Australia.

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• After soaring 9% yesterday, is this ASX stock a buy, hold or sell?
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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Mayfield Group Holdings Ltd (ASX: MYG) shot ahead of the ASX yesterday when it rose 9% in a single session. 

This brings its 12-month growth spree to over 152%. 

Despite already rising significantly this past year, the team at Bell Potter still believes there is more room for growth. 

Why did Mayfield Group shares rise?

Mayfield Group provides communication network solutions to government agencies, military organisations, and corporate clients

It appears Mayfield Group is enjoying strong investor interest following its announcement on July 13. 

The company  has entered into a binding Asset Sale Agreement to acquire Switchboards Division of Nilsen (SA) Pty Ltd (SDN), including its N-Series product line and associated intellectual property for a $4.0m cash consideration. 

The acquisition consideration will be funded from existing cash reserves. The deal is expected to complete on 31 July 2026, with progressive transfer of employees and assets through to 31 October 2026. SDN supplies products into the Commercial, Industrial, Infrastructure, Defence, Mining, Utilities and Data Centre construction markets.

In simple terms, Mayfield is spending $4 million to buy Nilsen’s switchboard business. 

This includes its products, skilled employees, customer orders, and technology to grow its sales, strengthen its manufacturing business, and increase future earnings.

What did Bell Potter have to say?

Following the announcement, Bell Potter provided updated guidance on this ASX stock. 

The broker said the move broadens Mayfield’s switchboard offering across key growth markets in Australia. 

It also strengthens the company’s ability to grow organically through an expanded workforce, IP and new customer relationships. Additionally, it enables the company to pursue larger and more diverse switchboard opportunities nationally.

The acquisition includes the transfer of $3.9m of WIH and is expected to add $10-15m of revenue in FY27 (effective November 2026; $15-23m annualised). Importantly, improved utilisation at the Royal Park facility should enhance site profitability.

Healthy upside 

Based on this guidance, the team at Bell Potter retained its buy recommendation on this ASX stock. 

However, it slightly lowered its price target to $3.20 (previously $3.40). 

From yesterday’s closing price of $2.41, this still indicates 32% upside. 

The SDN acquisition is strategic, supporting MYG’s expansion into new markets and with new customers. The acquisition consideration is not onerous; MYG maintains financial flexibility to continue pursuing other M&A opportunities.

We believe this valuation rebasing has created a good buying opportunity of a small-cap industrial business which we expect to deliver EPS growth of 36.7% in FY27 and 27.5% in FY28, and has strong upgrade potential.

The post After soaring 9% yesterday, is this ASX stock a buy, hold or sell? appeared first on The Motley Fool Australia.

More reading

• How much passive income can I earn off a $50,000 portfolio?
• Up almost 50%, is it too late to buy BHP shares?
• Forget CBA shares, this ASX financials stock has strong momentum heading into FY27
• Top broker tips 47% upside for this ASX financials stock 
• How much do I need in superannuation to receive $6000 per month in passive income?

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