Tag: Stock pick

ASX blue-chip shares can be among the best investments due to their economic strength and growth prospects. Some fund managers have outlined why a couple of these businesses have such compelling futures.

There are a number of quality businesses on the ASX that have a record of delivering compounding earnings over time, which is a powerful support for sending the share price higher over the coming years.

Experts from Wilson Asset Management (WAM) have explained why they own two stocks in the WAM Leaders Ltd (ASX: WLE) portfolio, which is a listed investment company (LIC) that generally invests in large caps.

Let’s dive into those two ideas.

Aristocrat Leisure Ltd (ASX: ALL)

The first ASX share WAM highlighted is Aristocrat Leisure, a global casino-machine manufacturer.

The fund manager noted that the share price has performed strongly since releasing its FY26 half-year result in May 2026, which highlighted sustained momentum in gaming operations and a sharpened focus on driving operating leverage.

WAM also highlighted that the company recently held an investor day recently, reiterating its longer-term targets and providing a segment-level pathway to US$1 billion in ‘interactive’ revenue by FY29.

The company’s management outlined plans to leverage artificial intelligence (AI) to drive creativity and efficiency in new product launches.

The WAM investment team revealed that this ASX blue-chip share remains a core holding in the investment portfolio and they see “further upside as management executes its strategy”.

Amcor (ASX: AMC)

Amcor, one of the world’s leading packaging companies in both soft and rigid packaging, was the other large business that was highlighted.

WAM noted that Amcor has faced one of its most difficult input cost environments in recent months, following the rise in oil prices driven by the conflict in the Middle East earlier in the year.

Resin, which is a key input derived from oil, has seen prices fall. WAM believes this should provide working capital relief going into the second half of the calendar year.

The investment team also noted that volumes are recovering from ‘trough’ levels and synergies from the Berry Global acquisition continue to build.

WAM expects these initiatives to drive earnings and free cash flow and help reduce leverage on the company’s balance sheet.

Wilson Asset Management thinks there is a “clear path” to valuation upside from the current Amcor share price, with earnings growth underpinned by the synergy program.

The post 2 leading ASX blue-chip shares experts think are buys appeared first on The Motley Fool Australia.

More reading

• How to build $60,000 in annual passive income from ASX dividend shares
• These ASX shares could generate $10,000 per year in passive income
• Three ASX 200 companies Macquarie says are a buy right now
• With dividends surging, are Amcor shares a good passive income buy today?
• These ASX shares could generate $5,000 per year in passive income

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

When it comes to looking for outsized gains among ASX shares, it pays to ask the experts.

I’ve had a look through the broker notes published this week and selected three companies that they believe could deliver serious share price gains.

Let’s see who they like.

ResMed Inc (ASX: RMD)

Macquarie this week issued a new research note on ResMed after the company told shareholders it was going to sell its MatrixCare business for $490 million, with the funds to be used, in part, for an accelerated buyback program.

The company said the sale fit with its 2030 strategy, “by focusing on high-growth, scalable opportunities in sleep health, breathing health and connected home-based healthcare”.

Chair Mick Farrell said regarding the sale:

Today’s announcement is about our disciplined approach to portfolio management and our commitment to driving long-term growth. By focusing on areas where we see the greatest opportunity for sleep health innovation and impact, we are strengthening our ability to deliver life-changing health technologies, improve patient outcomes, and create value for our stakeholders.

Macquarie said the sale “offloads a structurally challenged business, improving the group’s growth profile”.

The broker has a 12-month price target of $46.60 on ResMed shares, which would represent a 53.7% gain if achieved.

Bhagwan Marine Ltd (ASX: BWN)

This marine services company hosted brokers at an investor day recently, showing them around two of its divisions on the Brisbane River, Bhagwan Marine Services, and Riverside Industrial Sands.

Analysts from Shaw and Partners attended and said the business looks to be in good shape.

They said:

BWN operates Australia’s largest and most diverse marine fleet, employing more than 1,000 personnel nationwide. BWN’s Queensland Marine Solutions business is … strategically located on the Brisbane River and generates revenue from both contract and spot work. Core activity provides a solid EBITDA base, with fleet utilisation currently around 75%. Higher-margin contract work can lift EBITDA margins to approximately 30%. The business is positioned to benefit from demand associated with the Brisbane Olympics, and management has recently secured several new contracts. Longer term, growth is supported by population expansion and Queensland’s substantial infrastructure pipeline.

Shaw and Partners said competition was relatively limited, with only 3 to 4 meaningful participants in the market.

The broker has a price target of 60 cents on Bhagwan shares, which would represent a 90.5% gain if achieved.

Metro Mining Ltd (ASX: MMI)

Shaw and Partners said this bauxite miner remains on track to hit its full-year guidance of 6.6 to 7.1 million tonnes of bauxite for the year.

The analysts said bauxite prices had firmed from lows earlier this year, and the market remained well supported by strong demand growth from China.

They said:

Metro Mining’s Bauxite Hills project is well placed to supply the growing Chinese market due to the proximity to markets. As a low value product, freight costs make up almost half the cost of delivering bauxite to China.

Shaw and Partners has a $3 target price on Metro Mining shares, which would be an 89.8% gain if achieved.

The company also pays a 5.8% dividend yield.

The post 3 ASX shares which could deliver 53% to 90% gains appeared first on The Motley Fool Australia.

More reading

• Why I’d buy and hold ResMed and TechnologyOne shares with $5,000
• Buy, hold, sell: Goodman Group, Endeavour, Resmed shares
• ResMed’s $490m MatrixCare sale: What it means
• Why these ASX shares could rise 20% to 30%
• Why I want to own these ASX shares brokers rate as buys

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

The superannuation system just became a little more generous.

From 1 July 2026, the concessional contributions cap rose to $32,500, up from $30,000 in FY26. This has given Australian investors more room to make tax-effective contributions into superannuation.

Concessional contributions include employer super guarantee payments, salary sacrifice contributions, and personal deductible contributions.

All three count toward the cap.

What the extra $2,500 is actually worth

An extra $2,500 in concessional contributions per year might not sound significant.

However, over a long investment horizon, the maths adds up.

According to Pitcher Partners, an additional $2,500 per year contributed to super on a concessional basis, invested at a long-term return of around 7% per annum, could grow to approximately $37,000 over 10 years.

The tax benefit compounds that further: every dollar of salary sacrificed into super at 15% rather than at a marginal tax rate of 32.5% or higher is a permanent tax saving.

For a worker on a salary of $90,000 contributing the full extra $2,500 via salary sacrifice, the income tax saving is approximately $437 per year.

The non-concessional cap and bring-forward rule also increased

The cap increase does not stop at concessional contributions.

The non-concessional contributions cap also rose to $130,000 from 1 July 2026, up from $120,000.

For investors under 75 with a total super balance below $2.1 million, the three-year bring-forward rule now allows up to $390,000 in non-concessional contributions in a single financial year.

The transfer balance cap also rose to $2.1 million. This lifts the maximum amount that can be moved into a tax-free retirement income stream and gives retirees more room to shelter earnings from tax.

An important catch-up deadline that just passed

One critical change that came into effect this month deserves separate attention.

From 1 July 2026, any unused concessional contribution cap amounts from FY21 and earlier are permanently forfeited.

Investors who were eligible to carry forward unused amounts from 2020-21 and chose not to use them by 30 June 2026 have now lost that opportunity permanently.

Looking ahead, the five-year carry-forward window now runs from FY22 to FY27, giving investors with super balances below $500,000 the ability to catch up on contributions they missed in those years.

Two ASX shares that benefit from a growing superannuation pool

More money flowing into superannuation benefits the wealth management platforms that administer and invest those assets.

Hub24 Ltd (ASX: HUB) and Netwealth Group Ltd (ASX: NWL) are the two most direct ASX beneficiaries of this dynamic.

Hub24 delivered record half-year net inflows of $10.7 billion in 1H FY26. The company also upgraded its FY27 platform funds under administration target to $160 billion to $170 billion. This was driven by the consistent growth in Australia’s super pool.

Netwealth reached a record $125.6 billion in platform Funds Under Administration (FUA) in 1H FY26. Platform revenue climbed 25% on the strength of consistent inflows and sticky adviser relationships.

As higher contribution caps, payday super, and expanded parental leave contributions combine to drive more money into the system in FY27, both platforms are positioned to capture a disproportionate share of that growth.

Foolish takeaway for your superannuation strategy

The concessional contributions cap increase to $32,500 is modest in isolation.

However, over a decade or more of investing, the compounding impact of higher contributions at a lower tax rate becomes material.

For investors who are not yet using their full concessional cap through employer contributions and salary sacrifice, the first step is checking where you stand against the new $32,500 limit.

The second step is arranging any additional salary sacrifice through your employer before the end of the next pay cycle.

The post The superannuation concessional contributions cap just rose to $32,500. Here’s how to make the most of it appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Netwealth, Silver Mines, and Qantas shares
• 5 things to watch on the ASX 200 on Friday
• 7 ASX shares catching broker upgrades this week
• Why these ASX shares could rise 20% to 30%
• Broker tips 20% and 23% upside for these 2 ASX stocks

Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The tax return you lodge for the next financial year will look different to every return you have filed before it.

Three meaningful changes took effect on 1 July 2026 and will appear in your FY27 return.

Understanding each of them before you lodge will help you maximise your refund and avoid common mistakes.

Change one: the 15% tax rate

The most important change is the reduction in the marginal tax rate on income between $18,201 and $45,000.

That rate dropped from 16% to 15% from 1 July 2026, delivering a tax cut worth up to $268 per year to every Australian taxpayer.

For most salary and wage earners, this adjustment was already applied to your take-home pay from 1 July through your employer’s PAYG withholding calculations.

When you lodge your FY27 return, the ATO will calculate your tax at the new 15% rate automatically.

You do not need to do anything specific to claim this benefit.

However, if you changed jobs during the year, started freelancing, or had irregular income, your employer may not have withheld at exactly the right rate.

Change two: the $1,000 instant work-related expense deduction

From FY27, every Australian who earns salary or wage income can claim up to $1,000 in work-related expenses without keeping a single receipt.

Previously, the receipt-free limit was $300.

The new $1,000 deduction applies automatically when you lodge your return.

For a worker on a 32.5% marginal tax rate, claiming the full $1,000 deduction is worth approximately $325 in tax savings.

The deduction cannot be combined with specific expense claims above $1,000. If your actual work-related expenses exceed $1,000 and you have receipts to prove it, you should claim the actual amount rather than the instant deduction.

Work-related expenses include items like home office costs, professional development, tools, uniforms, and technology used for work.

Change three: higher Medicare levy thresholds

Medicare levy low-income thresholds increased from 1 July 2025 and apply to the FY27 return.

The threshold for singles rose to $28,011, up from $27,222, meaning more low-income Australians will pay no Medicare levy on their FY27 return.

The family threshold rose to $47,238 and increases by $4,338 for each dependent child or student.

For single seniors and pensioners, the threshold rose to $44,268.

If you earn below these thresholds, you may be entitled to a Medicare levy reduction or exemption when you lodge.

What to do with any tax refund

A tax refund is not a windfall. Instead, it is the return of money you overpaid during the year.

However, how you deploy a refund still matters.

Spending it immediately on discretionary items means the tax cut effectively disappears into everyday consumption.

Investing it, even a modest amount, is the start of a compounding habit.

Commonwealth Bank of Australia (ASX: CBA) is the most widely held ASX share among Australian retail investors. The company offers a fully franked dividend yield and long-term earnings track record that suits a regular, small-investment approach.

Alternatively, for investors who want instant diversification rather than individual stock selection, the Betashares Australia 200 ETF (ASX: A200) charges just 0.04% per annum and tracks the performance of 200 of Australia’s largest companies in a single trade.

For global technology and AI exposure, the Betashares Nasdaq 100 ETF (ASX: NDQ) gives investors access to the world’s largest non-financial technology companies. This will includes SpaceX following its Nasdaq-100 inclusion this week.

Foolish takeaway

Your FY27 tax return will be simpler in some ways and more lucrative in others.

The 15% rate and the $1,000 instant deduction both reduce your tax liability automatically.

The Medicare levy changes may eliminate the levy entirely for lower-income earners.

Understanding the changes before you lodge means you claim what you are entitled to, rather than leaving money on the table.

The post Your FY27 tax return will look different. Here’s what changed and how to prepare appeared first on The Motley Fool Australia.

More reading

• How to go from zero to $50,000 with ASX shares
• Forget CBA shares! I’d rather buy these ASX dividend shares
• 3 Betashares ETFs I’d buy with $10,000
• Expert warns: These ASX bank shares could disappoint in FY27
• The bull and bear case for CBA and BHP shares

Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If I had $5,000 to invest in ASX shares, I would want to own businesses that will still be important in 10 years.

That is why I like ResMed Inc. (ASX: RMD) and TechnologyOne Ltd (ASX: TNE).

They operate in different markets, but both solve problems that are not likely to fade. One is helping people manage sleep and breathing disorders. The other helps important organisations run essential systems more efficiently.

I think that gives both companies a strong starting point for long-term investors.

ResMed shares

ResMed is an ASX healthcare share I would happily buy with part of that $5,000.

The company is best known for sleep apnoea devices, masks, accessories, software, and connected health technology.

This is a great place to be. Sleep and breathing disorders remain a large, underpenetrated healthcare market. Many people are still undiagnosed or undertreated, which gives ResMed a long runway if awareness and access continue improving.

Its recent numbers also show that demand has not disappeared. In the third quarter of FY26, ResMed reported revenue growth of 11% to US$1.4 billion. It also delivered 18% growth in non-GAAP income from operations.

I would not buy ResMed just because one quarter looked solid. I would buy it because those numbers support the broader point: the company is still growing while investing in a market with significant long-term need.

There are risks, including competition, GLP-1 drugs, and healthcare sentiment. But I think the market may be underestimating the durability and size of the opportunity.

TechnologyOne shares

TechnologyOne is another ASX share I would buy for the long term.

The company provides enterprise software to customers such as councils, government departments, universities, and large organisations. These customers need dependable systems for finance, payroll, property, student management, compliance, and reporting.

That type of software may not sound exciting, but I think it can be extremely valuable.

Once these systems are embedded, replacing them can be disruptive. That gives TechnologyOne a strong customer relationship if it keeps delivering.

The shift to software-as-a-service has also strengthened the business model and supported strong annual recurring revenue growth. In the first half of FY26, TechnologyOne reported annual recurring revenue of $598 million, up 17%. SaaS and recurring revenue increased 13% to $299.2 million.

I also like the ambition. Management says the company is on track to surpass $1 billion in annual recurring revenue by FY30 and continues to talk about doubling the business every five years.

That is not guaranteed, but I like businesses that have clear targets, recurring revenue, and multiple ways to grow.

TechnologyOne is also investing heavily in artificial intelligence and its SaaS+ model. If those tools help customers simplify complex operations, the company could become even harder to replace.

Foolish takeaway

I think ResMed and TechnologyOne are two ASX shares worth buying with $5,000.

What I like most is that both companies are building around real customer needs. ResMed is helping address a large healthcare problem that remains underpenetrated, while TechnologyOne is becoming more deeply embedded in organisations that need reliable software to function properly.

Neither share is risk-free. But I think both businesses have enough growth, relevance, and ambition to reward patient investors over time.

The post Why I’d buy and hold ResMed and TechnologyOne shares with $5,000 appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares which could deliver 53% to 90% gains
• Buy, hold, sell: Goodman Group, Endeavour, Resmed shares
• ResMed’s $490m MatrixCare sale: What it means
• Why these ASX shares could rise 20% to 30%
• Why I want to own these ASX shares brokers rate as buys

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 ResMed and Technology One. The Motley Fool Australia has positions in and has recommended ResMed. 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.

Building a $50,000 ASX share portfolio from scratch is a goal for many investors.

I think it is achievable, especially when investors stop thinking about one big lump sum and start thinking about a repeatable monthly habit.

The share market rewards consistency over time, especially when investors use diversified exchange-traded funds (ETFs), quality ASX shares, and the power of compounding.

Here is how I think an investor could start from zero and work toward that first $50,000 milestone.

Start with simple building blocks

I think one of the easiest ways to begin is with diversified ASX-listed ETFs.

An ETF such as the Vanguard Australian Shares Index ETF (ASX: VAS) can give investors exposure to a broad basket of local companies. Another option, the Vanguard MSCI Index International Shares ETF (ASX: VGS), can provide access to global shares through one investment.

That kind of simplicity can be useful when starting from zero.

Investors do not need to know every company perfectly on day one. They can start by owning a broad slice of the market, then learn more as the portfolio grows.

For someone who wants exposure to the US market, the iShares S&P 500 ETF (ASX: IVV) could also be worth considering. It gives investors access to many of the largest companies in the United States.

Add quality ASX shares over time

ETFs can make a strong foundation, but some investors may also want to add individual ASX shares as they gain confidence.

That could mean looking for high-quality businesses with strong brands, lasting demand, and the ability to keep growing over time.

For example, Commonwealth Bank of Australia (ASX: CBA) has one of the strongest banking franchises in the country, Wesfarmers Ltd (ASX: WES) has a long history of managing different businesses and allocating capital carefully, and CSL Ltd (ASX: CSL) gives investors exposure to global healthcare demand.

Those are not automatic buys at any price. Valuation is always important.

But I think they show the type of businesses investors could consider as their knowledge improves: companies with real earnings, strong market positions, and long-term relevance.

How to get to $50,000

If an investor started with nothing and invested $500 a month into ASX shares, the portfolio could build faster than many people expect.

Assuming an average return of 9% per annum, it would take around six and a half years to reach $50,000.

I think that is a realistic example of how regular investing, time, and compounding can work together.

Keep going when markets move around

It is always best to remember that a 9% annual return is only an assumption. The share market will not deliver that return neatly each year. Some years will be strong. Others will be flat, frustrating, or negative.

That is why I think the monthly habit is so important.

Investing $500 a month removes some of the pressure of trying to pick the perfect moment. If prices fall, investors buy at lower levels. If markets rise, the portfolio keeps participating.

The real advantage comes from staying consistent.

Foolish takeaway

Going from zero to $50,000 with ASX shares requires a plan that can be repeated through different market conditions.

With $500 a month, a sensible mix of ETFs and quality ASX shares, and enough time for compounding to work, I think investors can turn a blank starting point into a meaningful portfolio.

The post How to go from zero to $50,000 with ASX shares appeared first on The Motley Fool Australia.

More reading

• Your FY27 tax return will look different. Here’s what changed and how to prepare
• Forget CBA shares! I’d rather buy these ASX dividend shares
• 3 ASX blue-chip shares that could be strong long-term value plays
• Expert warns: These ASX bank shares could disappoint in FY27
• The bull and bear case for CBA and BHP shares

Motley Fool contributor Grace Alvino has positions in CSL, Commonwealth Bank Of Australia, Vanguard Australian Shares Index ETF, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia has recommended CSL, Vanguard Msci Index International Shares ETF, Wesfarmers, 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.

Commonwealth Bank of Australia (ASX: CBA) shares have been a great option for passive income over the years, but I think there are plenty of better ASX dividend share options today.

CBA faces a more difficult operating environment these days following the Federal budget changes.

It’s possible the ASX bank share may not see as much loan demand for the foreseeable future, following changes to negative gearing and capital gains tax (CGT) discounts announced in the most recent Federal Budget.

CBA’s annual dividend per share is only expected to increase by 1% year-over-year in FY27 to $5.15 per share. That translates to a grossed-up dividend yield of 4.4%, including franking credits.

In my view, the following two businesses are better picks for passive income.

Medibank Private Ltd (ASX: MPL)

Medibank is the largest private health insurer in Australia, with its main brands of Medibank and ahm.

Private health insurance is an industry with useful tailwinds, including ageing demographics and a rising population. This helps support Medibank’s policyholder numbers and underlying net profit, which are key drivers of the dividend.

The FY26 half-year result was a great example of its ability to pay attractive and growing dividends.

In HY26, the business revealed that revenue grew 5.5%, segment operating profit grew 5.9%, and group operating profit increased 6%. This helped the business fund a 6.4% increase of the interim dividend per share to 8.3 cents.

The ASX dividend share’s expansion into other areas of healthcare can also help grow and diversify its earnings, giving further support for the dividend. Medibank Health segment profit increased by 28.5%, which includes community and acute healthcare. One recent initiative included increased ownership of Amplar Health Home Hospital.

According to the projection on Commsec, the business is forecast to pay an annual dividend per share of 22 cents in FY27. That translates into a potential grossed-up dividend yield of 6.2%, including franking credits, at the time of writing. That’s a noticeably better yield than what CBA shares offer.  

Dexus Industria REIT (ASX: DXI)

Dexus has a very large exposure to Australia’s real estate market, so why not just invest in a compelling passive income option from the real estate space?

Dexus Industria is a real estate investment trust (REIT) that is invested in high-quality industrial warehouses. Its real estate portfolio is located across major Australian cities, with a goal to provide securityholders with sustainable income and capital growth.

There is strong demand for industrial properties as a result of growing e-commerce usage, data centres and so on. This is helping drive pleasing rental growth for the business. In the first six months of FY26, the ASX dividend share saw like-for-like income growth of 7.4%, with rental escalations, strong re-leasing spreads and higher average occupancy.

The business is paying an annual distribution per security of 16.6 cents in FY26, translating into a distribution yield of 6.8%, which is much stronger than what’s on offer from CBA shares.

The post Forget CBA shares! I’d rather buy these ASX dividend shares appeared first on The Motley Fool Australia.

More reading

• Expert warns: These ASX bank shares could disappoint in FY27
• The bull and bear case for CBA and BHP shares
• How much do I need in my superannuation to get $52,000 per year in passive income?
• Dump ’em! Morgan Stanley slaps sell ratings on 5 ASX 200 shares
• I’d buy these 5 ASX dividend investments for retirement income

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

Australian passive income investors are a lucky bunch.

The local share market is home to a large number of ASX shares that reward their shareholders with dividends every year.

So, if I were looking for ASX shares to buy now for passive income, these three would be on my shortlist.

Charter Hall Retail REIT (ASX: CQR)

Charter Hall Retail REIT would be an ASX passive income share I would look at.

The REIT owns convenience-focused retail properties across Australia. These are the types of centres anchored by supermarkets, everyday services, and tenants linked to regular household spending.

Its tenants include Coles Group Ltd (ASX: COL) and Wesfarmers Ltd (ASX: WES).

This gives the portfolio a different feel from large discretionary shopping malls. People may delay buying furniture, electronics, or luxury items when conditions are tough, but I would expect grocery shopping and local errands to continue through most economic cycles.

Rising interest rates remain a key risk. But if rates ease over time, or even just stop pressuring valuations, investor sentiment toward quality property trusts could improve.

The Charter Hall Retail REIT offers an estimated FY 2027 dividend yield of approximately 6.9%.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre Travel Group is a different type of passive income idea.

It is not a traditional defensive ASX dividend share. Its earnings are tied to travel demand, business activity, leisure spending, airfares, and consumer confidence.

Flight Centre has spent the past few years rebuilding after the severe disruption caused by the COVID pandemic. And while trading conditions have been tough due to the conflict in the Middle East and the cost of living crisis, its evolution means the company is well-placed to grow its earnings materially once conditions normalise.

So much so, Flight Centre shares are expected to offer a fully franked 4.2% dividend yield in FY 2027.

Woolworths Group Ltd (ASX: WOW)

Woolworths is the most defensive name on this list.

The supermarket giant gives passive income investors exposure to everyday spending through food, groceries, household essentials, and related retail operations.

It is not a high-yield ASX share, and I would not buy it expecting the biggest dividend on the ASX. The main attraction here is its dependability.

Woolworths has scale, brand recognition, loyalty data, a major store network, and an important position in Australian household budgets. As I mentioned above, even when consumers become more cautious, groceries remain a core expense.

Looking to FY 2027, Woolworths shares are expected to offer a fully franked dividend yield of 2.8%.

The post 3 strong ASX passive income shares I’d buy now appeared first on The Motley Fool Australia.

More reading

• Which ASX 200 sectors paid the highest dividend yields in FY26?
• Flight Centre shares rebound 30% from multi-year low: Can they keep climbing higher?
• 7 ASX 200 shares given buy ratings this week
• Why I want to own these ASX shares brokers rate as buys
• Up 33%, are Woolworths shares still a good buy for passive income?

Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Charter Hall Retail REIT. The Motley Fool Australia has recommended Flight Centre Travel Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A buy and hold for life ASX 200 share does not mean investors should buy it and never look at it again.

It means finding a business with quality, a strong market position, and a long-term growth runway to justify patience through different market cycles.

If I were looking for ASX 200 shares that could sit in a portfolio for decades, I would want companies that are difficult to replace, still have ways to grow, and are not relying on one good year to make the investment case work.

Here are three that stand out to me.

Goodman Group (ASX: GMG)

Goodman Group could be one of the ASX 200’s best long-term compounders.

The company owns, develops, and manages industrial property in major global markets.

That includes warehouses, logistics facilities, and data centre infrastructure. These assets may not be as exciting in the same way as a new app or consumer brand, but they are deeply connected to how the modern economy works.

Goods need to be stored and moved, online orders need fulfilment networks, cloud computing and artificial intelligence need physical infrastructure, and businesses want high-quality space close to customers, transport routes, labour pools, and power.

Goodman’s advantage is that prime industrial land in major cities is not easy to recreate. Once a company has the right sites, customer relationships, planning approvals, and development expertise, it can become very hard for others to catch up.

Its shares can look expensive at times, but quality rarely comes at bargain prices for long. Overall, I think Goodman’s mix of property, infrastructure, and development capability makes it a standout ASX 200 share for patient investors.

REA Group Ltd (ASX: REA)

REA Group is another ASX 200 share that could be bought with a very long-term mindset.

The company owns realestate.com.au, which is Australia’s leading property website.

What makes REA strong is its position between buyers, sellers, renters, agents, developers, and advertisers. When Australians want to look for property, many go straight to its platform. When agents want attention for listings, they also need to be where the audience is.

That creates a powerful loop. More listings attract more users and more users make the platform more valuable to agents and advertisers. That kind of network position is difficult to attack unless user behaviour changes dramatically.

Property listings can rise and fall with interest rates, housing sentiment, and market conditions. But Australians remain deeply engaged with property over the long term, whether they are buying, selling, renting, renovating, or simply watching the market.

REA is not immune to downturns, but its brand, audience, and pricing power give it rare durability.

Xero Ltd (ASX: XRO)

Xero is a very different type of ASX 200 share, but also has long-term appeal.

The company provides cloud accounting software for small businesses, accountants, and bookkeepers.

This popular software helps businesses keep track of money, invoices, payroll, bills, payments, and compliance. That may not sound glamorous, but it sits close to the daily financial life of millions of small businesses. 

This makes it increasingly sticky. Once a business, accountant, or bookkeeper builds workflows around a platform, switching can be inconvenient and risky. This supports strong user retention rates and user growth.

Another positive is its investment in artificial intelligence. This could make the platform more valuable to users if it helps automate routine admin, improve bank reconciliation, speed up reporting, and give business owners better financial insights.

As with the others, Xero’s valuation can be demanding. But Xero has a strong product, a large global market, and a role in small business that could become more important over the next decade.

The post 3 ASX 200 shares I’d buy and hold for life appeared first on The Motley Fool Australia.

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

The ASX growth share space is a great place to find ideas that can help us outperform the wider stock market.

The smaller we go down the market capitalisation list, the more likely it is to find an undervalued business with a long growth runway, in my opinion.

Experts from the listed investment company (LIC) WAM Research Ltd (ASX: WAX) have outlined two businesses that could be ones to watch. The LIC looks for the most compelling, undervalued growth opportunities on the ASX.

Civmec Ltd (ASX: CVL)

WAM described Civmec as a founder-led, mining, construction and engineering services company based in Western Australia.

During June, the company announced its order book had reached $1.5 billion. Growth was supported by a series of new contract awards, panel agreement extensions and new orders across its resources, infrastructure, energy and maintenance activities.

Key project wins included a further package of work with Iluka Resources Ltd (ASX: ILU) at the Eneabba Rare Earths Refinery and the major construction contract for Perth Park, delivered through an alliance with Seymour Whyte and Aurecon.

The investment team at WAM believes these projects provide strong earnings visibility over the next two years. Wilson Asset Management also believes that the ASX growth share is well positioned to win significant defence contracts which are expected to come to market over the next two to three years.

WAM suggested that Vicmec’s ownership of strategic land at the Henderson precinct in Western Australia positions it well in tendering for these projects.

Reliance Worldwide Corporation Ltd (ASX: RWC)

The other ASX growth share that was highlighted in the WAM Research portfolio was plumbing supplies company Reliance, which has operations across Australia, Europe and North America.

WAM noted that during June, it announced the next stage of streamlining its manufacturing operations.

That plan includes the closure of its brass casting, forging and machining operations in Moorabbin and Braeside, Melbourne, along with additional smaller sites.

Those changes are expected to deliver a benefit to net annual operating profit (EBITDA) of approximately US$9 million across the group by the end of FY27.

WAM said the ASX growth share has suffered headwinds in recent years, including US tariffs and higher interest rates, but the investment team believe the outlook is improving as macroeconomic indicators begin to stabilise and the company resets its cost base.

In WAM’s view, this positions Reliance to grow earnings into FY27 and FY28. The fund manager sees potential for a rerating in the Reliance share price as earnings momentum improves.

The post 2 ASX growth shares with strong potential to buy appeared first on The Motley Fool Australia.

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