Tag: Stock pick

The Commonwealth Bank of Australia (ASX: CBA) share price has risen strongly over the past five years.

Since this time in 2020, the banking giant’s shares have risen a sizeable 91%.

In addition, during this time, Australia’s largest bank has rewarded shareholders with 10 dividend payments.

Clearly, it was a smart move buying CBA’s shares half a decade ago.

Valuation looking stretched

Given this strong run, it may not come as a surprise to learn that most brokers believe that the CBA share price is overvalued now.

In fact, it has been described by some analysts as the most expensive bank in the world.

And while a premium is arguably justified due to its quality, the team at Bell Potter believes that its valuation is “disconnected from fundamentals.”

Following a review of the banking sector, the broker has gone further underweight with its CBA holding. This makes the bank its largest active underweight position in its Core portfolio.

Commenting on the big four bank, Bell Potter said:

We are moving further Underweight in CBA, establishing it as our largest active underweight position in the Core portfolio. The bank’s valuation premium has expanded to an extreme and, in our view, unsustainable level, trading at a P/E multiple that is ~40% above the peer average. While a premium for its high-quality franchise and strong returns is warranted, the current gap is disconnected from fundamentals.

Bell Potter believes that CBA’s recent quarterly update didn’t provide any justification for its lofty valuation and appears concerned that its valuation gap will close in the near future. It explains:

The recent 1Q26 trading update underscored this, revealing the bank is not immune to the sector-wide pressures of NIM attrition (from competition and deposit mix) and rising costs. CBA’s result was “unremarkable” and showed a lack of differentiation versus peers. It faces the same wage and technology inflation as others, with its 1Q cost growth of 4% coming in a seasonally lower quarter for IT spend, implying costs will accelerate. With earnings momentum no better than its much cheaper rivals, we believe this valuation gap will continue to be under pressure.

The broker currently has a preference for ANZ Group Holdings Ltd (ASX: ANZ) on valuation grounds. It is the only bank that it has an overweight position in its Core portfolio. It adds:

We are moving to an overweight position in ANZ, which we see as the clear relative value proposition and our preferred holding in the sector. ANZ delivered the cleanest and highest-quality result of the recent reporting season, providing a tangible “self-help” story that NAB and CBA lack, while Westpac’s is relatively priced in. The key differentiator was costs. Management’s guidance for a 3% decline in the underlying cost base for FY26 is unique among the majors and provides a clear path to earnings growth, even in a flat revenue environment.

The post Why the CBA share price valuation is ‘disconnected from fundamentals’ appeared first on The Motley Fool Australia.

More reading

• Commonwealth Bank’s top tier status has begun to unwind, so which bank is looking good according to Wilsons Advisory?
• If I invest $10,000 in CBA shares, how much passive income will I receive in 2026?
• These were the 10 most-traded Australian shares last week
• Forget CBA shares! Buy these ASX dividend shares instead for passive income
• Macquarie reveals its views on the big 4 banks after the latest earnings reports

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 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 Lovisa Holdings Ltd (ASX: LOV) share price is in focus today as the company holds its annual general meeting (AGM) and provides a trading update. For the first 20 weeks of FY26, Lovisa’s global total sales jumped 26.2% compared to the same period last year, while comparable store sales rose 3.5%.

What did Lovisa report?

• Global total sales up 26.2% for the first 20 weeks of FY26 compared to FY25
• Global comparable store sales up 3.5% on FY25
• 44 net new stores opened financial year to date (62 opened, 18 closed/relocated)
• Total store network now 1,075 stores across more than 50 markets
• 148 more stores trading than the same time last year

What else do investors need to know?

Lovisa continued its international expansion apace, adding stores across all markets. The company now operates in more than 50 markets worldwide—a testament to its ongoing global rollout strategy.

The 18 store closures this year include six relocations, suggesting management remains focused on optimising store performance and locations. The company’s AGM today serves as a checkpoint update rather than a full results release.

What’s next for Lovisa?

Looking ahead, Lovisa plans to maintain its focus on global expansion by opening stores in both existing and new markets. Management says it will continue to monitor performance as it grows, with an eye on optimising the global store network.

Investors will be watching for the impact of continued store rollouts on sales trends and profitability in coming updates. A full financial result is expected at the company’s next scheduled reporting date.

Lovisa share price snapshot

Over the past 12 months, Lovisa shares have risen 30%, significantly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post Lovisa holds AGM; provides a positive trading update appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares that could be top buys for growth
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Charter Hall upgrades FY26 earnings guidance amid strong property momentum
• Qube Holdings holds AGM after hitting record earnings in FY25

Motley Fool contributor Laura Stewart 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 Lovisa. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

ASX REITs are real estate investment trusts. Essentially, these are companies that own and operate property assets that typically produce income.

REITs can have various property types in their portfolios, or they might specialise in just one type. 

For example, some focus on commercial real estate, such as offices, hospitals, shopping centres, warehouses, and hotels. 

Others specialise in residential property investment, such as aged care villages and apartment buildings.

Each week, broker Bell Potter provides analysis on the sector, including target prices and recommendations. 

Right now, it appears the broker sees upside after a down month. 

Here is how the broker is viewing the sector right now. 

Underperforming over the last month 

In this week’s report, the broker noted that REITs performed well until a stronger-than-expected employment print (unemployment down to 4.3% vs. 4.5% prior and 4.4% consensus) drove the sector down against the broader S&P/ASX 200 Index (ASX: XJO).

Bell Potter said overall, the sector has underperformed over the last month but could be poised for a bounce back.

On this sentiment, we still think the sector is well positioned (return of earnings growth, strong balance sheets, increased cap trans activity and potential for debt-funded accretive acquisitions) and worth bearing in mind 3mth BBSW is only marginally above where it started FY26 (c.3.6%).

The broker highlighted that Infratil Ltd (ASX: IFT) delivered its 1H26 result, reaffirming full-year guidance, but lost ground given prior strong consensus views. 

Other companies that fell last week included:

• Goodman Group (ASX: GMG) down 3%
• HMC Capital (ASX: HMC) lost 4% 
• DigiCo Infrastructure REIT (ASX: DGT) fell 7%

Buy, hold, and sell from Bell Potter

The report from Bell Potter also included target prices and recommendations.

REITs with buy recommendations include:

• Centuria Capital Group (ASX: CNI)
• Goodman Group (ASX: GMG)
• Dexus Convenience Retail REIT (ASX: DXC)
• GDI Property Group (ASX: GDI)
• Healthco Healthcare And Wellness Reit (ASX: HCW)
• Dexus Industria REIT (ASX: DXI)

Of this group, the team at Bell Potter sees the biggest upside for Healthco Healthcare and Wellness Reit (ASX: HCW) and Goodman Group (ASX: GMG). 

The broker sees roughly 37% to 40% upside from current levels. 

The broker has hold recommendations on: 

• HMC Capital (ASX: HMC)
• DigiCo Infrastructure REIT (ASX: DGT)
• Homeco Daily Needs REIT (ASX: HDN)  

Bell Potter has a sell recommendation on Centuria Office REIT (ASX: COF). 

Looking ahead, the broker said feedback from corporates and leading CRE private credit providers points towards potential for margin compression across the sector. 

The post What is Bell Potter’s view on REITs? appeared first on The Motley Fool Australia.

More reading

• These ASX dividend stocks offer 7% to 10% yields
• 3 ASX shares I’d buy with $20,000 today
• Here are the top 10 ASX 200 shares today
• Macquarie says this ASX 200 stock can rise 150%
• 3 outstanding ASX growth shares analysts are backing right now

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 positions in and has recommended Goodman Group and HMC Capital. The Motley Fool Australia has recommended Goodman Group, HMC Capital, and HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are looking for some tech sector exposure after recent weakness, then it could be worth looking at the ASX stock in this article.

That’s because if Bell Potter is on the money with its recommendation, it could deliver massive returns for investors over the next 12 months.

Which ASX tech stock?

The stock that Bell Potter is tipping as a buy is Gentrack Group Ltd (ASX: GTK).

It is a specialist billing and CRM solutions and managed services provider to energy, water, and airport industries.

Bell Potter notes that the majority of its revenue is generated from energy retailers and leveraged to IT infrastructure transformation within utilities/retailers, as well as future-facing distributed energy resources and decentralised storage trends.

The broker points out that these are driving increasingly complex data sets to manage and general legacy platforms were not designed specifically for this.

What is the broker saying?

Bell Potter notes that macro tailwinds are strengthening for this ASX tech stock, which bodes well for its future growth. It said:

Solar-generated energy accounted for 83% of the increase in global electricity demand for the first half of CY25, according to energy think tank, Ember, which also saw it pass a milestone in generating more power than coal for the first time during the measured window. Utility-scale solar deployments and grid connections are underpinned by its position as the lowest cost for energy generation on a $/MWh basis, as well as the most cost-competitive form of new-build generation (unsubsidised basis) according to Lazard’s annual Levelised Cost of Energy report.

Though, there is one area of concern for the broker. That is lost momentum with its next generation g2.0 platform. It adds:

Despite these positive macro tailwinds requiring updated/modern billing stacks, GTK seems to have lost g2.0 project momentum, which makes us cautious heading into the FY25 result.

Time to buy

Despite concerns over the g2.0 project, Bell Potter remains very positive and sees significant value in the ASX tech stock.

This morning, it has retained its buy rating on Gentrack’s shares with a reduced price target of $9.80 (from $13.20). Based on its current share price of $6.34, this implies potential upside of 55% for investors between now and this time next year.

Commenting on its buy recommendation, the broker said:

Our A$ DCF valuation downwards due to the current ~decade-low in NZD against the AUD and introduced a 50:50 EV/EBITDA blend to our valuation methodology. We move to cautious on the growth outlook for GTK, which is predicated on winning transformation projects/front book revenues converting into recurring/back book revenue streams, amid a lack of positive utility project news in an increasingly competitive environment. We are positive on secular tailwinds in decentralised energy driving utility billing stack transformations broadly.

The post Guess which ASX tech stock is tipped to rise 50%+ appeared first on The Motley Fool Australia.

More reading

• Why Beetaloo, Gentrack, Iperionx, and New Hope shares are dropping 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 positions in and has recommended Gentrack Group. The Motley Fool Australia has positions in and has recommended Gentrack Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Interest rate cuts may be putting pressure on savers this year, but that doesn’t mean income investors are out of options.

In fact, the Australian share market remains one of the most reliable hunting grounds for attractive yields.

If you’re searching for strong dividend opportunities to help offset falling deposit rates, analysts have highlighted several ASX dividend stocks offering appealing income potential over the next couple of years.

Here are two names that brokers currently rate as buys, along with the dividend yields they are forecasting.

Dexus Convenience Retail REIT (ASX: DXC)

For investors seeking stable, property-backed income, the Dexus Convenience Retail REIT could be a standout option.

This REIT owns a nationwide portfolio of service stations and convenience retail sites, leased to high-quality tenants on long-term, inflation-linked agreements. These leases provide reliable, predictable cashflows, exactly what income investors typically look for.

The assets in the portfolio are generally considered resilient, with demand for fuel, convenience goods, and essential services remaining steady through economic cycles. Annual rental increases further support income growth and help safeguard distributions over time.

Bell Potter is bullish on the company and has a buy rating and $3.45 price target on its shares.

As for income, it expects dividends of 20.9 cents per share in FY 2026 and then 21.6 cents per share in FY 2027. Based on its current share price of $2.86, this would mean dividend yields of 7.3% and 7.6%, respectively.

IPH Ltd (ASX: IPH)

Global intellectual property specialist IPH is another ASX dividend stock that analysts rate as buys this month.

The company operates several well-known intellectual property services firms across Australia, New Zealand, Canada, and Asia, including AJ Park, Smart & Biggar, and Spruson & Ferguson. This positions IPH in a niche professional services market with steady demand and high client retention.

And while its performance has been underwhelming in the past couple of years, the team at Morgans remains positive. It has also described its valuation as “undemanding” and is forecasting some very big dividend yields in the near term.

The broker is expecting IPH to pay fully franked dividends of 37 cents per share in both FY 2026 and FY 2027. Based on its latest share price of $3.60, this equates to dividend yields over 10% for both years.

Morgans currently has a buy rating and $6.05 price target on its shares.

The post These ASX dividend stocks offer 7% to 10% yields appeared first on The Motley Fool Australia.

More reading

• Analysts name 3 of the best ASX dividend shares to buy
• Here are the top 10 ASX 200 shares today
• Brokers are recommending these ASX dividend shares to clients
• Here are the top 10 ASX 200 shares today
• Macquarie names 16 potential ASX takeover targets

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

I love investing in undervalued businesses with excellent growth potential. There are a few S&P/ASX 200 Index (ASX: XJO) shares that are trading a lot cheaper compared to recent times that I believe are great buys.

ASX tech shares are some of the most compelling ideas because of their ability to achieve high profit margins and grow revenue at a fast pace.

Recent results highlight to me what attractive buys the following three businesses are.

Xero Ltd (ASX: XRO)

Xero is one of the world’s leading accounting software businesses, with a presence in numerous countries including Australia, New Zealand, the UK, the US, Canada, Singapore and South Africa.

The Xero share price has fallen by roughly a third over the past year, despite reporting a solid set of numbers in the FY26 first half result, with 20% operating revenue growth, 42% net profit growth and 54% free cash flow growth.

It’s benefiting from a growing, loyal subscriber base that (based on the low subscriber churn rate) appears to love the tools Xero offers to save time and operate the business more efficiently. With a rising average revenue per user (ARPU) and growing profit margins, there’s a lot to like about this business with global growth aspirations.

I believe this ASX 200 share could make significantly more profit in the next five years.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is a global enterprise resource planning (ERP) software business that has customers like companies, local councils, universities, government entities and so on.

The company has been a success story over the last five years and I think there’s a lot more growth to come. It has a goal of a net revenue retention (NRR) of 115%, meaning it wants to grow its revenue by 15% from its existing client base each year, thanks to its significant investment (25% of revenue) in improving the software.

This ASX 200 share is expecting rising profit margins thanks to its software as a service (SaaS) business model. It’s also expecting to significantly grow its annual recurring revenue (ARR) in the coming years, with a $1 billion ARR target by FY30.

If the business is successful at winning more customers in the UK and continuing its NRR track record, the tech stock has a very exciting future. In FY25, it reported total ARR grew 18% to $554.6 million, it revealed NRR of 115% and net profit before tax increased 19% to $181.5 million.

REA Group Ltd (ASX: REA)

REA Group is the owner and part-owner of numerous businesses related to property in Australia, as well as having investments in the Asian and the US property industries.

The main business for REA Group is realestate.com.au, which saw 111.4 million more monthly visits than the nearest competitor on average in the first quarter of FY26.

This advantage over its nearest rival gives REA Group strong pricing power and the ability to deliver stronger profit margins.

The FY26 first quarter saw the business deliver revenue growth of 4% and free cash flow growth of 16%, showing the power of its financials.

In five years, I’m expecting the company to be making significantly more profit, particularly if it’s able to continue growing its revenue. Despite that, it has dropped by approximately a quarter in value since August 2025, making it much better value.

The post 3 ASX 200 shares that could be top buys for growth appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• What I’d buy if I had to invest $20,000 in ASX 200 shares before the weekend
• Morgans just upgraded these ASX 200 shares
• Charter Hall upgrades FY26 earnings guidance amid strong property momentum

Motley Fool contributor Tristan Harrison has positions in Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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.

Long-term investing works best when you keep things simple. Instead of trying to predict every market swing or jump in and out of positions, the real magic often comes from staying invested and letting compounding do its work.

Exchange-traded funds (ETFs) make that process even easier. They offer broad diversification and exposure to world-class stocks and powerful megatrends, all without needing to pick individual stocks.

For investors thinking about the next decade rather than the next week, a handful of ETFs stand out as strong long-term candidates.

Here are three ASX ETFs that could help Aussie investors build wealth over the long term:

Betashares Asia Technology Tigers ETF (ASX: ASIA)

Asia is home to some of the world’s fastest-growing digital economies, and the Betashares Asia Technology Tigers ETF gives investors an easy way to tap into that growth.

This ASX ETF invests in leading technology companies across China, Taiwan, and South Korea, regions driving advancements in e-commerce, semiconductors, gaming, cloud services, and AI.

Its holdings include some of Asia’s most influential tech names, such as Tencent (SEHK: 700), Taiwan Semiconductor Manufacturing Co. (NYSE: TSM), and Alibaba (NYSE: BABA). These businesses are deeply embedded in essential digital infrastructure and consumer platforms used by hundreds of millions of people every day.

Betashares Cloud Computing ETF (ASX: CLDD)

The shift to cloud computing has been one of the most transformative technological trends of the past decade, and it is nowhere near finished. As more organisations rely on cloud platforms to run software, analyse data, manage logistics, and deploy artificial intelligence, demand for cloud infrastructure is expected to grow strongly.

The Betashares Cloud Computing ETF provides exposure to leading global cloud companies, including Twilio (NYSE: TWLO), Microsoft (NASDAQ: MSFT), and Shopify (NASDAQ: SHOP). These businesses play central roles in enabling digital operations across industries, from online retail to financial services to enterprise software.

Cloud adoption is expanding into new sectors and business models, and the rise of AI is only increasing the need for scalable computing power. This fund offers investors a straightforward way to participate in this long-duration megatrend. It was recently named as one to consider buying by analysts at Betashares.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

For investors seeking a more defensive style of growth, the VanEck Morningstar Wide Moat ETF could be a top option.

This ASX ETF targets US companies that have fair valuations and wide economic moats. The latter are durable competitive advantages that allow them to maintain pricing power, protect profits, and compound earnings over long periods.

This quality-focused strategy has historically produced strong performance, particularly through market cycles.

Its holdings currently include stocks such as Adobe (NASDAQ: ADBE), Walt Disney (NYSE: DIS), and Nike (NYSE: NKE). These are businesses with world-class brands, high switching costs, or unique intellectual property.

The post 3 fantastic ASX ETFs to build long-term wealth appeared first on The Motley Fool Australia.

More reading

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• 5 ASX ETFs to buy to supercharge your portfolio in 2026
• Forget CBA and the big four banks and buy these ASX ETFs
• 3 explosive ASX ETFs for investors chasing growth
• The 3-ETF portfolio that could last a lifetime

Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf, Nike, VanEck Morningstar Wide Moat ETF, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Microsoft, Nike, Shopify, Taiwan Semiconductor Manufacturing, Tencent, Twilio, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group and has recommended the following options: long January 2026 $395 calls on Microsoft, long January 2028 $330 calls on Adobe, short January 2026 $405 calls on Microsoft, and short January 2028 $340 calls on Adobe. The Motley Fool Australia has recommended Adobe, Microsoft, Nike, Shopify, Twilio, VanEck Morningstar Wide Moat ETF, and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX mining shares closed higher on Thursday, with the S&P/ASX 300 Metal & Mining Index (ASX: XMM) lifting 2.56%.

The index has risen 27% over the year to date compared to a 4.5% bump for the S&P/ASX 300 Index (ASX: XKO).

ASX mining share valuations are being supported by rising commodity prices for many metals and minerals amid the gold price boom and green energy transition.

Check out what’s happened this year to these commodity prices.

Star commodities of 2025

Metal or mineral	Commodity price increase in 2025
Cobalt	100%
Silver	77%
Platinum	72%
Palladium	57%
Gold	55%
Neodymium	44%
Tin	27%
Copper	26%
Lithium	22%
Aluminium	10%

By comparison, the iron ore price has risen 1%, but remains relatively healthy at about US$104 per tonne.

Expert recommends ‘diversified options’

The broad-based rise in commodity values suggests the best type of ASX mining shares to be invested in right now are diversified ones.

On The Bull this week, Jed Richards from Shaw and Partners discussed his sell rating on Rio Tinto Ltd (ASX: RIO) shares.

Rio Tinto is certainly a diversified miner, producing iron ore, copper, aluminium (produced from alumina, which is refined from bauxite), diamonds, industrial minerals such as borates, titanium dioxide, and salt; the critical mineral, scandium; ferrous metallics, and lithium.

However, Rio Tinto remains an ASX 200 iron ore giant.

The company’s revenue remains heavily weighted to iron ore. The core steel ingredient made up just under 43% of Rio Tinto’s segmental revenue and 54% of its earnings before interest, taxes, depreciation, and amortisation (EBITDA) for 1H FY25.

Richards prefers more diversified miners in the current climate, commenting:

This global miner is heavily exposed to iron ore, and the stock is currently trading near elevated levels, in our view.

With limited diversification compared to peers, we prefer BHP Group Ltd (ASX: BHP) for broader resource exposure and stronger long term positioning.

With this in mind, Richards has a sell rating on Rio Tinto shares, suggesting investors cash in on the miner’s 23% gain since 30 June.

Locking in gains and reallocating to more diversified options makes sense in the current environment.

The shares have risen from a closing price of $107.13 on June 30 to trade at $131.70 on November 13.

Latest ratings on diversified ASX mining shares

There are four ASX 200 large-cap diversified mining shares on the ASX.

Here are some of the latest ratings on them.

BHP Group Ltd (ASX: BHP)

The consensus rating among 20 brokers covering BHP shares on the CommSec trading platform is a hold.

Macquarie has a neutral rating on BHP shares with a 12-month target price of $44.

In a recent note, the broker said:

We recently switched preference to RIO (RIO AU/RIO LN; Neutral) from BHP on a better catalyst backdrop into CY26 and the RIO Capital Markets Day (CMD).

Rio Tinto Ltd (ASX: RIO)

The consensus rating among 15 analysts covering Rio Tinto shares on CommSec is a moderate buy.

Macquarie has a neutral rating on Rio Tinto shares with a 12-month target price of $124. 

South32 Ltd (ASX: S32)

The consensus rating among 16 brokers covering South32 shares on CommSec is a moderate buy.

Macquarie has an underperform rating on South32 shares with a target price of $3.20.

On The Bull last week, Dylan Evans from Catapult Wealth revealed a buy rating on South32 shares.

Evans said:

The company’s earnings are volatile, but the commodity mix provides diversification across price cycles. S32’s long life mine assets are high quality and low on the cost curve. Overall, we’re attracted to the company’s commodity mix during the energy transition and electrification.

Mineral Resources Ltd (ASX: MIN)

The consensus rating among 15 analysts covering Mineral Resources shares on CommSec is a hold.

Macquarie has an underperform rating on Mineral Resources shares but raised its price target to $47 earlier this month.

In its latest note, the broker said:

We raise our target price 24% to A$47.00 to reflect Mt Marion and Wodgina equity sell-down and improved near-term earnings outlook.

The post Invested in ASX mining shares? Expert recommends diversity over iron ore concentration appeared first on The Motley Fool Australia.

More reading

• Buy BHP and this blue chip ASX dividend share
• Why Macquarie expects this fast-rising ASX 200 dividend stock to keep outperforming in 2026
• Top Australian stocks to buy right now with $5,000
• 3 of the best Australian stocks to buy after the market selloff
• Why are Steadfast shares sinking 5% today?

Motley Fool contributor Bronwyn Allen has positions in BHP Group and South32. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With the market swinging between optimism and uncertainty, income investors are again turning to dependable blue chip ASX dividend shares for stability. And while many defensive names have already been bid up this year, several high-quality dividend payers are still trading at levels that brokers consider attractive.

If you are building or topping up an income portfolio, analysts have highlighted two standout blue chips that are offering solid dividend yields and resilient earnings.

Here’s what they are recommending to clients this month:

BHP Group Ltd (ASX: BHP)

The first blue chip ASX dividend share that could be a buy is BHP.

Australia’s largest miner remains one of the most reliable dividend machines on the ASX. BHP continues to generate vast amounts of free cash flow from its tier-one iron ore, copper, and metallurgical coal operations, which are among the lowest-cost assets anywhere in the world.

Even though commodity markets can be volatile, BHP’s disciplined balance sheet, diversified portfolio, and cost efficiency give it the ability to sustain shareholder returns across the cycle. The company has proven repeatedly over the past decade that it can continue paying attractive fully franked dividends even when prices pull back.

Morgan Stanley is bullish on the Big Australian and has an overweight rating and $48.00 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends of approximately $1.90 per share in FY 2026 and $1.70 per share in FY 2027. Based on its current share price of $41.72, this equates to dividend yields of 4.6% and 4.1%, respectively.

Coles Group Ltd (ASX: COL)

Supermarket operator Coles remains a firm favourite among blue chip investors, and for good reason. Its focus on essential, repeat-purchase categories means consistent revenue, predictable earnings, and dependable dividends, even when economic conditions soften.

Coles continues to invest in automation, supply chain improvements, and private label expansion to boost margins and support long-term profitability. In a market where stability is becoming increasingly valuable, its defensive qualities certainly do stand out.

Morgan Stanley is also feeling bullish on this one. It recently put an overweight rating and $26.60 price target on its shares.

With respect to income, the broker is expecting fully franked dividends of 83 cents per share in FY 2026 and then 90 cents per share in FY 2027. Based on its current share price of $22.33, this represents dividend yields of 3.7% and 4%, respectively.

The post Buy BHP and this blue chip ASX dividend share appeared first on The Motley Fool Australia.

More reading

• Invested in ASX mining shares? Expert recommends diversity over iron ore concentration
• Coles shares storm 22% higher this year: Are they still a buy?
• I’d buy this ASX dividend stock in any market
• 1 magnificent ASX dividend stock down 15% to buy and hold for decades
• BHP is a great company, but I think this ASX 200 stock is a better investment

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 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 have $20,000 to invest in ASX shares today, but don’t know where to look, here are my three top picks.

Wisetech Global (ASX: WTC)

Wisetech shares closed 2.12% higher on Thursday afternoon, at $64.21 each. Over the past month the shares have dropped 22.62% and over the year they’re down a painful 53.63%. 

The company provides logistics software that aims to improve the world’s supply chains. Wisetech has a good growth pipeline, and I think this year’s price plunge is the result of an overdone investor sell-off.  

Analysts think the company’s share price will rebound too. Earlier this week, DP Wealth Advisory said it thinks the beaten-down tech stock as a buy. The broker said that long-term fundamentals and market leadership support a great buying opportunity for investors.

Bell Potter, Morgans, and Shaw and Partners’ Jed Richards also all have a buy rating on the stock.

TradingView data shows that analysts forecast a maximum price target as high as $177.97. At the time of writing that implies the ASX 200 tech share has a potential upside of 177.18% over the next 12 months.

Pro Medicus (ASX: PME)

Meanwhile, the Pro Medicus share price closed 1.07% higher at $253.04 a piece on Thursday afternoon. The shares have dropped 11.79% over the past month but are still 17.9% higher than this time last year.

Pro Medicus specialises in advanced medical imaging software through its Visage platform. It enables radiologists to review scans with high speed and efficiency. The company has a growing recurring revenue, great margins and a ultra-light capital business model too, which means it’s poised for strong growth. 

Analysts are very positive on the stock too with Pro Medicus shares making a few list of top-buys or ASX growth share picks. The team at Citi recently upgraded Pro Medicus to a buy rating with a $350.00 price target. Morgans has also upgraded Pro Medicus’ shares to an accumulate rating with a slightly more bearish $290.00 price target. These price targets imply a potential 14.6% to 38.3% upside for investors over the next 12 months.

DigiCo Infrastructure REIT Stapled Securities (ASX: DGT)

For investors looking for exposure to Australia’s hot property market without the risk, a real estate investment trust (REIT) with strong growth prospects is a sensible buy.

DigiCo’s share price closed 3.33% higher on Thursday afternoon, at $2.48 a piece. That’s a 12.06% drop over the month, and over the year, the shares are 50.4% lower thanks for a huge sell off in March.

On the surface the annual decline might look concerning, but I think it makes for a great buying opportunity. The company recently held a strong annual general meeting (AGM) and said it has surpassed guidance for FY25.

Macquarie thinks the low price presents a good buying opportunity, too. The broker has an outperform rating on the shares and a $4.16 target price. At the time of writing, that implies a potential 67.74% upside over the next 12 months.

The post 3 ASX shares I’d buy with $20,000 today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• What I’d buy if I had to invest $20,000 in ASX 200 shares before the weekend
• Wisetech share price a ‘highly attractive opportunity’ after sell-off: fundie
• 3 outstanding ASX growth shares analysts are backing right now
• Analysts name 3 ASX 200 titans to buy today

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 WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.