Tag: Stock pick

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a disappointing session and dropped deep into the red. The benchmark index fell 1% to 8,920.8 points.

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

ASX 200 to rise

The Australian share market looks set for a better session on Wednesday despite a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.2% higher. In the United States, the Dow Jones fell 1.2%, the S&P 500 dropped 0.6%, and the Nasdaq was 0.3% lower.

Oil prices jump

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Wednesday after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 3% to US$94.25 a barrel and the Brent crude oil price is up 2.4% to US$99.36 a barrel. This follows reports of an Iranian attack on US Navy ships.

Accumulate Paladin Energy shares

Morgans has been looking at Paladin Energy Ltd (ASX: PDN) and particularly the Patterson Lake South resource. In response, it has maintained its accumulate rating with a trimmed price target of $13.30. It said: “We expect the resource and mine life to increase materially in time. Simply simple – PLS is one of the highest-grade undeveloped uranium projects globally, but its development plan is surprisingly conventional, with a TBM decline, proven mining methods, a standard Athabasca processing flowsheet and uncomplicated tailings storage reducing technical risk. We maintain an ACCUMULATE rating with a reduced price target A$13.30ps (previously A$14.10ps) with the removal of our 10% price premium.”

Gold price falls

ASX 200 gold shares including Westgold Resources Ltd (ASX: WGX) and Northern Star Resources Ltd (ASX: NST) could have a poor session on Wednesday after the gold price pulled back meaningfully. According to CNBC, the gold futures price is down 1.7% to US$4,400 an ounce. Traders were selling gold ahead of the release of US inflation data.

ASX 200 shares going ex-dividend

A number of ASX 200 shares are going ex-dividend today and could trade lower. This includes Brambles Ltd (ASX: BXB), CSL Ltd (ASX: CSL), Evolution Mining Ltd (ASX: EVN), IGO Ltd (ASX: IGO), and Northern Star. CSL will be paying shareholders 227.7 cents per share early next month on 2 October.

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

More reading

• Buy, hold, sell: BHP, CSL, CBA shares
• Could this exciting growth stock be set to triple? Morgans thinks it can
• $10,000 invested in CSL shares in June is now worth…
• Forget CSL shares. 3 ASX healthcare stocks with bigger upside
• Here are the top 10 ASX 200 shares today

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

Zip shares have halved over the past year, but the analyst community has not budged an inch.

Every broker covering the company still rates it a buy.

What’s more, the average price target implies the shares roughly doubling from here.

Why brokers are so bullish on Zip shares

Zip Co Ltd (ASX: ZIP) closed Tuesday at $2.31, down 2.94% on the day.

Shares have fallen 49.12% over twelve months and 25.84% year to date. The 52-week range runs from $1.37 to $4.93.

All twelve analysts covering the company hold a buy or strong buy rating.

The average target of $4.56 implies around 95% upside, and the most bullish sits at $6.03.

UBS has reiterated a buy rating with a $4.70 target, pointing to the defensive qualities of the buy now, pay later model in weaker economic conditions.

The FY26 result behind the call

The numbers are part of the reason the brokers have not capitulated.

Zip delivered record cash EBTDA of $268.9 million in FY26, up 57.9%.

Total revenue rose 24.7% to $1,336.1 million and total transaction value climbed 27.2% to $16.7 billion.

Net profit after tax increased 45.7% to $116.4 million.

The margin story is arguably more important than the growth.

Operating margin expanded from 15.8% to 20.0% in a single year.

The company also completed $150 million of buybacks and announced a further $50 million for FY27, with available cash and liquidity of $246.5 million.

Group chief executive Cynthia Scott put the result in context:

Consistent execution has built the platform to deliver our next phase of growth and innovation. In FY26, we exceeded our targets with record cash earnings of $268.9m, up 57.9%, underpinned by material cash earnings growth in both markets. We maintained strong unit economics, expanded operating leverage and reinforced the value of our differentiated business model.

The United States is the whole story

Importantly for Zip, the American business now generates roughly two-thirds of group revenue.

Transaction volume and revenue both grew more than 42% there in local currency terms.

Active United States customers rose 9.3% to 4.65 million.

The Australian and New Zealand business is going the other way, with customer numbers down 8% to 1.88 million.

Management is winding down the New Zealand operation entirely to concentrate on Australia.

Guidance for FY27 calls for group cash EBTDA of $340 million, up around 26%.

The operating margin target is 20% to 22% and United States transaction volume is expected to grow more than 30%.

Zip is also weighing a share consolidation and a possible dual listing on the Nasdaq.

What has gone wrong for Zip shares

The share price fall has very little to do with the accounts.

Three things have worked against it at once.

The first is a broad sell-off in technology and high-multiple names.

The second is competition, with the buy now, pay later market crowded and margins under permanent scrutiny.

The third, and perhaps most important, is interest rates.

Zip lends money to consumers, which makes it geared to household health in both directions.

Consumer sentiment fell 5.2% in September to 84.4, with nearly two-thirds of consumers expecting mortgage rates to rise within a year.

All four major banks now forecast another rate rise before the end of 2026.

Foolish takeaway

The bull case for Zip shares is not overly complicated.

Earnings are growing fast, margins are expanding and the United States business is scaling.

The bear case is that none of that has been tested through a true consumer downturn. Only time will tell for Zip shares.

The post Can Zip shares recover? Here’s what the experts have to say appeared first on The Motley Fool Australia.

More reading

• Experts tip battered Zip shares to deliver over 90% returns
• These are the 10 most shorted ASX shares
• ASX 200 bank shares led a financial sector rebound last week
• ASX shares investors are getting younger and trading more often: CBA report
• Why Zip shares took investors on a wild ride in August

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 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.

Exchange-traded funds (ETFs) are one of my favourite ways to add exposure to areas of the market that can be difficult to capture with individual ASX shares.

If I were putting fresh money to work this September, these three Betashares ETFs would be high on my list.

Betashares S&P 500 Equal Weight ETF (ASX: QUS)

The QUS ETF gives investors exposure to 500 leading US companies with an important difference from a traditional S&P 500 fund.

Each company receives an equal weighting when the index is rebalanced quarterly. That means the portfolio is less dependent on a small group of enormous technology companies driving returns.

I like that approach at the moment. The US share market offers exposure to an enormous range of world-class businesses across healthcare, industrials, financial services, consumer goods, technology, and plenty of other industries.

Giving those companies a more equal influence means investors can participate if US market growth becomes more evenly spread.

It also gives me a different way to invest in the United States without once again making the largest technology names the centre of the portfolio.

Betashares India Quality ETF (ASX: IIND)

India is another market I would be interested in owning for the long term.

The Betashares India Quality ETF provides easy exposure to 30 Indian stocks selected using measures including profitability, leverage, and earnings stability.

I like the quality screen here. India offers a substantial long-term growth opportunity, but investing in an emerging market can bring additional risks. Focusing on financially stronger businesses gives me a more selective way to participate.

The country’s large population and developing economy create opportunities across areas such as banking, consumer spending, technology, manufacturing, and infrastructure.

I would expect plenty of volatility along the way, but I think India could become an increasingly important part of global share markets over the coming decades.

Betashares Australian Quality ETF (ASX: AQLT)

Closer to home, the AQLT ETF provides another way to approach Australian shares.

The fund targets high-quality ASX companies using return on equity, leverage, and earnings stability. Its index is designed to hold around 40 businesses rather than simply allocating the most money to the largest companies on the market.

I like that because the Australian share market can become heavily influenced by its biggest companies and sectors.

A quality-focused strategy can lead to a different portfolio, with Betashares noting that the fund has historically had greater exposure to areas such as consumer discretionary and less exposure to materials than the broader Australian market.

For a long-term holding, I think prioritising strong profitability, manageable debt, and steadier earnings is a sensible approach.

Foolish takeaway

I would happily consider all three ETFs this September.

What I like most is that they give me ways to invest beyond the most obvious market exposures. I can broaden my US holdings, participate in India’s long-term development, and take a more selective approach to Australian shares.

For investors prepared to hold through the inevitable ups and downs, I think each could have a place in a long-term portfolio.

The post Why I’d buy these Betashares ETFs in September appeared first on The Motley Fool Australia.

More reading

• 3 strong ASX ETFs I’d buy to try and beat the market
• 3 super ASX ETFs for beginner investors
• 3 Betashares ETFs I’d buy and hold for 10 years

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 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.

As investors look to gain portfolio exposure to the AI buildout, there are several ASX ETFs on the market to consider. 

While past performance doesn’t guarantee future gains, it can be helpful to look at projections when comparing options. 

Three of the most notable AI ASX ETFs include: 

• Global X Semiconductor ETF (ASX: SEMI)
• Global X Ai Infrastructure ETF (ASX: AINF)
• Global X Artificial Intelligence ETF (ASX: GXAI). 

How are these funds different?

While all of these funds offer AI exposure, they are built in different ways. 

Firstly, Global X Semiconductor fund focuses on the semiconductor industry.

These are the chips and hardware that power AI systems, including companies involved in chip design, manufacturing and equipment. 

Secondly, the Global X AI Infrastructure ETF takes a broader “picks-and-shovels” approach to AI, investing in companies that provide the infrastructure needed to develop and run AI. This includes data centres, networking, power and semiconductors. 

Finally, the Global X Artificial Intelligence ETF is the most directly focused on AI applications and technology, investing in companies developing or benefiting from AI software, automation, machine learning and related technologies. 

In simple terms, SEMI is primarily about the chips, AINF is about the infrastructure that enables AI, and GXAI is about the broader AI ecosystem and its applications.

Which fund has performed the best?

The SEMI fund was first listed back in 2021, with GXAI listing in 2024 and AINF most recently in April 2025. 

Since April 2025 when all funds were available: 

• AINF is up 67%
• GXAI is up 43%
• SEMI is up 140%. 

Looking at the last 12 months: 

• SEMI is up 98%
• AINF is up 34%
• GXAI is up 22%

How much could $10,000 be worth in 12 months’ time?

Taking these results over the last year and projecting the same returns for the next 12 months, a $10,000 investment could be extremely profitable. 

Using the 12-month returns you provided and assuming, purely as a mathematical projection, that each fund repeats the same return over the next year:

• SEMI: A 98% return would turn $10,000 into $19,800 – a $9,800 gain.
• AINF: A 34% return would turn $10,000 into $13,400 – $3,400 gain.
• GXAI: A 22% return would turn $10,000 into $12,200 – a $2,200 gain.

So, if those past 12-month returns were repeated exactly, SEMI would produce the largest projected result at $19,800, followed by AINF at $13,400 and GXAI at $12,200. 

However, these are hypothetical projections rather than forecasts, and past performance does not reliably indicate future returns. 

The post How much could $10,000 invested in these AI focussed ETFs be worth in a year? appeared first on The Motley Fool Australia.

More reading

• 3 fantastic ASX ETFs for Aussie investors in September
• Want to invest in AI shares? Here’s how to do it on the ASX
• Why these ASX ETFs are on my watchlist
• 3 super ASX ETFs for beginner investors
• Down 21% in six weeks, what’s happened to SEMI ETF?

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.

ASX blue-chip shares can be some of the most appealing options for dividends because of the stability and sizeable dividend yield they can provide.

But there are more blue-chips available to Australians than just the biggest names, such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and CSL Ltd (ASX: CSL).

I think there are a few names out there that can provide a more appealing combination of dividend yield and growth than the most popular stocks like CBA and BHP, like the two below.

Charter Hall Long WALE REIT (ASX: CLW)

This first ASX share is a real estate investment trust (REIT) that’s invested in an array of different types of commercial property, including government entities (such as Geoscience Australia), telecommunication exchanges, data centres, service stations, hotels/pubs and others.

No other ASX REIT can provide investors with that much diversification under a single investment.

By investing in so many areas, it can protect investors from being too invested in one particular area, while many other REITs are focused on shopping centres, office buildings, or other areas.

One of the main attractions of this ASX blue-chip share is that it has a very long weighted average lease expiry (WALE), meaning the rental income is locked in for a long time. Currently, the REIT has a WALE of around nine years, which is a long time for the sector.

Additionally, that income is regularly growing thanks to rental escalation built into the rental contracts. Some of the portfolio has fixed annual indexation, while the rest of the portfolio has inflation-linked rental increases. This helps support and grow distributions.

It plans to pay a distribution of 25.5 cents per unit in FY27, equating to a distribution yield of 7.4%. That’s a great starting yield, in my view.

Australian United Investment Company Ltd (ASX: AUI)

The other ASX blue-chip I want to highlight is this listed investment company (LIC) which was founded in 1953. So, it has already been going for more than 70 years.

It aims to provide investors with exposure to a quality portfolio of ASX shares, as well as an international investment portfolio, held mainly through international-focused funds.

The goal is to provide shareholders with a portfolio that can provide income and capital appreciation over the medium-to-long-term.

Currently, its biggest positions include CBA, BHP, Rio Tinto Ltd (ASX: RIO), Transurban Group (ASX: TCL), ANZ Group Holdings Ltd (ASX: ANZ), Wesfarmers Ltd (ASX: WES), Westpac Banking Corp (ASX: WBC), CSL Ltd (ASX: CSL) and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

It’s also invested in multiple Vanguard funds that give it exposure to the global share market, which I think is a useful factor.

With an annual management expense ratio (MER) of just 0.10%, which I’d describe as one of the cheapest ASX share investment portfolios on the ASX.

The ASX blue-chip share has steadily grown its dividend payout over the long-term and maintained the dividend when it hasn’t hiked the payout.

It has paid an annual dividend per share of 45 cents in recent financial years, which translates into a grossed-up dividend yield of 5.3%, including franking credits.

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

More reading

• How much do I need to retire on $80,000 a year at 50?
• 1 ASX dividend stock down 35% I’d buy right now
• How much is needed in superannuation to target a $60,000 annual passive income?
• 3 strong ASX dividend shares with yields up to 7.7%
• How much is needed in superannuation to target a $2,500 monthly passive income?

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

The rivalry between BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) shares has been on clear display this year.

This came as the two mega-cap stocks traded places (several times) as the biggest company on the ASX by market cap.

As 2026 progressed, BHP shares pulled ahead of CBA shares to cement that lead.

At least for now.

But if you’d invested $10,000 in both CommBank and BHP three years ago, which would have been the better investment?

(To put the below performances in some perspective, the ASX 200 has gained 25% in three years, as of intraday trade on Tuesday.)

Investing $10,000 in CBA shares

Turning back the clock to September 8 2023, you could have picked up CBA stock for $100.81 a share.

Meaning you could have bought 99 CBA shares for $10,000.

Those same shares were recently trading at $160.16 apiece, representing a 59% gain.

But we shouldn’t forget the passive income CBA has paid out over this time.

If you’d own the ASX 200 bank stock for the past three years, you would have received (or shortly will) the past six fully franked dividend payments totalling $14.55 a share.

So if we add that back into the recent share price, then the accumulated value of the CommBank shares you bought three years ago comes out to $174.71 apiece.

That’s a gain of 73%.

And it would have seen your $10,000 investment in those 99 CBA shares grow to $17,296 today.

Buying $10,000 worth of BHP shares

So, how would the same investment in BHP stack up to the returns from CBA shares?

Well, on September 8 2023, BHP shares closed the day trading for $43.19. Meaning you could have picked yup 231 BHP shares for $10,000.

On Tuesday, shares in the ASX 200 mining stock were swapping hands for $62.52. That’s a gain of 45% over three years.

Of course, BHP also pays two fully franked dividends a year.

If you’d owned the stock for three years, you’d have received (or shortly will) the past six passive income payouts. Those total (a rounded) $6.35 a share.

Adding that back into the recent share price, then the accumulated value of those BHP shares you bought in September 2023 is now worth $68.87.

That’s a gain of 60%.

And those 231 BHP shares you picked up for $10,000 three years ago would be worth $15,909 today.

The winner is…

While BHP shares have strongly outperformed over the past year, CBA shares are the clear winner over the last three years, gaining 73% to BHP’s 60%, inclusive of those dividends.

The post $10,000 invested in BHP and CBA shares three years ago is now worth… appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: BHP, CSL, CBA shares
• Rates are rising again. Should you pay down your mortgage or top up your superannuation?
• All 4 big banks now expect a rate hike. What does this mean for ASX bank shares?
• Why this news from China has changed the outlook for BHP shares
• Why I’d wait to buy BHP shares in superannuation

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

If you’re ready to hang up your hat and enjoy your golden years with a $750,000 superannuation balance, how much passive income could you expect to earn each year?

The answer will, of course, depend on the yield you can earn from those super savings.

Now, in my opinion, investing in the right selection of ASX dividend shares is the best path to achieving a reliable passive income stream in retirement.

And what we’ll look at below is the annual passive income that you can earn from your superannuation without drawing down that $750,000 balance.

We’re also aiming for share price gains and higher annual dividends from those ASX shares over time to at least offset the eroding forces of inflation. This way your real passive income stream remains steady, or ideally increases, over the years as well.

A few important points

While we’ll look at three quality ASX dividend stocks that I believe are a suitable superannuation investment below, a properly diversified passive income portfolio will contain a lot more than just three. There’s no magic number. But 15 or so is a decent ballpark figure.

Ideally these companies will operate in various sectors and locations. This will reduce the risk of your retirement income taking a big hit if any single sector or company runs into headwinds.

Also remember that the yields you generally see quoted are trailing yields Future yields may be higher or lower depending on a range of company specific and macroeconomic factors. Though, as mentioned above, we’ll be aiming to invest in ASX shares that will increase their passive income payouts over the years.

With that said…

Tapping into superannuation for retirement income

Remember, the passive income you earn of your $750,000 superannuation balance will depend on the yield you’re getting.

We’ll take the average yield of the three ASX 200 dividend stocks below as our benchmark.

First up we have Bank of Queensland Ltd (ASX: BOQ).

Over the past 12 months, the ASX 200 bank stock has paid two fully franked dividends and a special dividend totalling 55 cents a share. At the recent Bank of Queensland share price of $6.63, the stock trades on a fully franked trailing yield of 8.3%.

Next, we have ASX 200 rail freight operator Aurizon Holdings Ltd (ASX: AZJ).

Over the past 12 months Aurizon has paid (or shortly will) two dividends totalling 23 cents a share, 90% franked. At the recent Aurizon share price of $3.72, the stock trades on a dividend yield of 6.2%.

And the third stock you might want to invest some of your superannuation into for passive income is Fortescue Ltd (ASX: FMG).

Over the past 12 months, the ASX 200 mining giant has paid (or shortly will) two fully franked dividends totalling $1.08 a share. At the recent Fortescue share price of $17.42, Fortescue shares trade on a fully franked trailing yield of 6.2%.

To the maths!

So, if you invest an equal amount of your superannuation into each of the above ASX 200 dividend stocks, you could expect to earn a yield 6.9%.

Meaning with a $750,000 investment, you could earn $51,750 a year in passive income without drawing down your super balance.

The post How much passive income can I earn off a $750,000 superannuation balance? appeared first on The Motley Fool Australia.

More reading

• How much passive income could a $500,000 superannuation balance generate?
• $10,000 a year in passive income buying just $10k worth of ASX shares? Here’s how I’d go about it
• How much do I need in my superannuation to earn $10,000 passive income every month?
• Here are the top 10 ASX 200 shares today
• These ASX shares benefit from a high Aussie dollar

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.

BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and CSL Ltd (ASX: CSL) are among the largest players on the S&P/ASX 200 Index (ASX: XJO) by market capitalisation.

The trio are major long-standing blue-chip companies and among some of the most dominant businesses on the share market.

So it’s unsurprising that they’re also among the most popular with investors.

Let’s find out the latest update from each of these ASX 200 stocks, and which one brokers prefer.

Sell CBA shares

CBA shares have fallen further this week. At the close of the ASX on Tuesday afternoon, the banking giant’s shares were down around another 2% to $158.69 per share. 

The decline means CBA shares have now dropped around 9% since it posted its FY26 results, and is down around 12% from a high in early-August. For the year-to-date the bank stock is now down roughly 1.5%.

The result was positive overall, but it raised concerns about the bank’s earnings strength and its already-high valuation against a backdrop of a weakening housing market.

Meanwhile, concerns around inflation, interest rates movements, falling mortgage demand, a weakening housing market, and tight competition have all also acted as strong headwinds for the ASX bank shares.

The continued share price decline suggests investor sentiment has finally turned south, and brokers expect more correction ahead.

Market Index data shows all brokers have a strong sell rating on CBA shares. The average $125.10 target price implies a potential downside of around 21% over the next 12 months, at the time of writing.

Hold BHP shares

BHP shares have been in the spotlight this week after news that China’s biggest steelmaker is considering buying into one of BHP’s largest iron ore mines.

China Baowu Steel Group is reportedly looking at taking a 15% to 25% stake in BHP’s Jimblebar operation in the Pilbara.

Australia’s Federal opposition has already objected. The Coalition has said that Labor must not allow foreign entities to buy one of Western Australia’s top iron ore mines.

There hasn’t been much material change in BHP’s share price since the news surfaced. At the close of the ASX on Tuesday afternoon, the ASX mining shares were down around 1% to $62.55 a piece.

BHP shares have enjoyed a strong rally this year, however. For the year-to-date the shares are up around 37%.

But going forward, the experts are reserved about the outlook for BHP shares over the next 12 months. Market Index data shows the majority of brokers have a hold rating, and the $61.78 average target price now implies a potential 1% downside ahead.

Buy CSL shares

CSL shares rebounded strongly in August, and they have continued climbing higher into early September. At the close of the ASX on Tuesday, the shares were up another 1% to $174.80. 

The rebound means the shares are now up around 2% for the year-to-date, officially recouping losses shed earlier this year.

The ASX biotech stock has faced several market and company headwinds over the past 18 months, but it looks like investor sentiment has finally turned more positive. 

ASX healthcare shares came back into favor last month after a significant sell-off. And CSL shares were boosted even higher after it posted an impressive FY26 result in mid-August.

The result came in way ahead of guidance and CSL management described FY26 as a ‘reset year’, with FY27 marking a return to growth.

Analysts also have a more positive outlook following the latest results announcement. Market Index data shows a buy rating on CSL shares. But after the latest rally, the $156.09 average target price now implies a potential 11% downside ahead, at the time of writing. 

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

More reading

• 5 things to watch on the ASX 200 on Wednesday
• $10,000 invested in BHP and CBA shares three years ago is now worth…
• Rates are rising again. Should you pay down your mortgage or top up your superannuation?
• All 4 big banks now expect a rate hike. What does this mean for ASX bank shares?
• $10,000 invested in CSL shares in June is now worth…

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

Deciding between extra mortgage repayments or extra superannuation contributions has always been a tough decision.

That being said, when mortgage rates sat near 2%, almost any sensible investment in superannuation beat paying down debt.

However, that is no longer the case.

All four major banks now expect the Reserve Bank to lift the cash rate again before the end of the year.

What a rising cash rate does to the mortgage side

The cash rate already sits at 4.35% after three increases in 2026, and the board next meets on 28 and 29 September.

Westpac Banking Corp (ASX: WBC) now expects a rise to 4.60% in November, joining ANZ Group Holdings Ltd (ASX: ANZ) and Commonwealth Bank of Australia (ASX: CBA), while National Australia Bank Ltd (ASX: NAB) is tipping September as the month that rates rise.

The Reserve Bank’s housing lending statistics put the average new owner-occupier variable loan at roughly 6.25%.

That means that every extra dollar that is paid off that loan earns a guaranteed 6.25%, tax free.

There are very few assets Australia that offers that combination.

What the tax system does for superannuation

However, superannuation contributions can be a more tax-efficient way to invest your money.  

Salary sacrificed contributions are taxed at 15% going in, instead of at your marginal rate.

Investment earnings inside the fund are taxed at 15% during accumulation and are not taxed at all in pension phase.

The concessional contributions cap rose to $32,500 from 1 July 2026. That is $2,500 more room than the previous three financial years allowed.

Why the answer is still not obvious

On the flipside, two things can make paying down your debt more attractive.

The first is access.

Money inside superannuation is locked away until preservation age, which is 60 for anyone born after June 1964.

A mortgage repayment made through an offset account can be withdrawn tomorrow.

The second is certainty.

The mortgage return is guaranteed and the investment return is not.

To illustrate, the Vanguard Australian Shares Index ETF (ASX: VAS) is a reasonable proxy for the Australian portion of most balanced superannuation options.

The fund closed Tuesday at $111.50 and has returned just 0.82% over the past twelve months, which is a useful reminder that share markets do not deliver averages on schedule.

How I would think about superannuation versus the mortgage

The soft answer is that it depends on three things.

Your marginal tax rate decides how large the superannuation head start is.

Your age decides how painful the preservation rules are.

And your loan-to-value ratio decides how much you need the security of a smaller debt.

For someone in their fifties on a high marginal rate, superannuation is very hard to beat.

For someone in their thirties with a large mortgage and no buffer, the extra repayment usually wins on peace of mind alone.

Foolish takeaway

There is no universal right answer.

What has changed this year is that the savings from paying down mortgage side have become competitive at 6.25%.

Superannuation still wins on tax over a long enough horizon, and the higher contributions cap makes that easier to use.

I would make sure the emergency buffer exists first, then let the marginal tax rate decide the split.

The worst outcome is doing neither and letting the cash sit in a transaction account earning nothing at all.

The post Rates are rising again. Should you pay down your mortgage or top up your superannuation? appeared first on The Motley Fool Australia.

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• Buy, hold, sell: BHP, CSL, CBA shares
• How much must I invest in VAS ETF shares to earn a $1,000 passive income in 2027?
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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 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.

The Vanguard Australian Shares Index ETF (ASX: VAS) is one of the largest exchange-traded funds (ETF) on the ASX, and it’s known for having a sizeable dividend yield.

The VAS ETF allows investors to gain exposure to the S&P/ASX 300 Index (ASX: XKO), which is an index of 300 of the largest businesses on the ASX.

Some of the biggest businesses in the portfolio are BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ), Wesfarmers Ltd (ASX: WES), Macquarie Group Ltd (ASX: MQG), Rio Tinto Ltd (ASX: RIO) and Woodside Energy Group Ltd (ASX: WDS).

I think it’d be fair to say that every one of the above stocks could be classified as an ASX dividend share with a decent dividend yield.

The Vanguard Australian Shares Index ETF simply passes through the dividends it receives onto owners of VAS ETF units. Therefore, it’s beneficial if the holdings provide a good dividend yield.

Let’s look at what it could take to generate $1,000 of passive income from the fund.

Targeting $1,000 of passive income from Vanguard Australian Shares Index ETF

Every month, Vanguard tells investors about various statistics regarding the fund.

For July, Vanguard reported that the VAS ETF had a dividend yield of 3.1%. That’s not a huge yield, but it’s significantly more than what’s on offer from the international share market or US share market.

It’s not guaranteed to have a 3.1% dividend yield in the coming 12 months, but it’s the best figure we can use for this calculation.

To generate $1,000 of passive income with a 3.1% dividend yield, you’d need an investment of $32,258, so that’d mean buying 286 or 287 VAS ETF units.

The VAS ETF is able to provide a high dividend yield because more than 58% of the portfolio is invested in ASX bank shares and ASX mining shares. Those sectors typically have lower price/earnings (P/E) ratios and relatively generous dividend payout ratio, which both affect the dividend yield.

Other markets, like the international share market or US share market, are focused on other sectors like technology businesses, which usually have a lower dividend payout ratio and a high P/E ratio. That results in a much lower dividend yield.

The VAS ETF isn’t dominated by growth stocks, so I’m not expecting significant capital growth in the coming years, though the dividend yield could remain pleasing.

The post How much must I invest in VAS ETF shares to earn a $1,000 passive income in 2027? appeared first on The Motley Fool Australia.

More reading

• Rates are rising again. Should you pay down your mortgage or top up your superannuation?
• Are these top Vanguard ETFs still a buy in September?
• What Warren Buffett’s investing style can teach superannuation investors
• No savings at 30? Here’s how I’d aim to retire early with $1 million buying ASX shares
• These are the most popular ASX ETFs. Which has performed best over the last year?

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