Tag: Stock pick

It has been a rough year for shareholders of CSL Ltd (ASX: CSL).

Earlier this week, the biotech giant’s share price hit a multi-year low of $140.93 during a broader market selloff. 

Even after a modest rebound, the stock is still trading at $142.58, which leaves it down roughly 43% over the past 12 months.

For a company long considered one of the highest-quality businesses on the ASX, that sort of decline naturally raises questions. What exactly has gone wrong, and does the weakness create an opportunity for investors?

A combination of issues weighing on sentiment and the CSL share price

Part of the explanation comes down to the company’s recent performance.

CSL’s latest half-year results were softer than many investors had expected. Underlying profit fell 7% for the period and revenue declined slightly, reflecting a combination of operational headwinds and policy changes in some key markets.

The results were also complicated by significant one-off items. CSL recorded around US$1.1 billion in impairment charges related largely to assets within its Vifor and Seqirus divisions, which dragged reported profit sharply lower and weighed on sentiment.

At the same time, investors have been digesting broader changes within the business. The company has been undertaking a major transformation program designed to simplify operations, reduce costs, and improve long-term growth.

Transitions like this can be messy in the short term, even when the long-term goal is to strengthen the business.

Leadership changes have also added to the uncertainty, while competition in certain product categories and policy changes affecting healthcare reimbursement have created additional near-term pressure.

Put all that together and I think it becomes easier to see why CSL’s share price has struggled over the past year.

But the long-term story hasn’t disappeared

Despite the challenges, I think it is important to remember that CSL remains one of the largest and most sophisticated biotechnology companies in the world.

The company continues to generate billions of dollars in revenue from therapies that treat serious and often rare diseases. Its plasma-derived medicines, vaccines, and iron therapies remain critical treatments for patients globally.

Importantly, the company still expects growth to improve in the second half of the financial year. Management has maintained its guidance for approximately 2% to 3% revenue growth and 4% to 7% growth in underlying profit for FY26, excluding one-off restructuring costs and impairments.

That outlook reflects expectations that growth in key therapies, particularly immunoglobulin and albumin products, alongside newly launched treatments, will help drive a stronger second half.

Has the sell-off created a buying opportunity?

This is where I think the debate becomes interesting.

According to analysts at Morgans, CSL’s first-half result was “softer and less clean than expected,” with profit declining and impairments weighing on statutory earnings.

However, the broker also noted that the company maintained its full-year guidance despite the challenges, suggesting that the issues appear more related to execution and short-term disruptions rather than structural problems.

In Morgans’ view, the outlook is supported by cost reductions, marketing initiatives, new product launches, and diminishing headwinds. The broker continues to rate the stock as a buy with a price target of $241.34. This is almost 70% above the current CSL share price.

Foolish takeaway

There is no denying that CSL’s past year has been disappointing for shareholders. A combination of softer results, impairments, leadership changes, and broader market volatility has pushed the share price sharply lower.

But the company still operates a global biotechnology franchise built on specialised therapies, strong research capabilities, and decades of expertise.

If management can execute on its transformation program and deliver the growth it expects in the years ahead, I think the recent selloff could eventually look like an incredible buying opportunity.

The post What on earth’s going on with the CSL share price? appeared first on The Motley Fool Australia.

More reading

• Down 40%: 2 ASX 200 blue-chip shares to buy
• Just 3 ASX ETFs could build a lazy Australian millionaire portfolio
• 5 ASX shares I’d buy with $5,000 today
• Four ASX healthcare stocks which are looking cheap
• After the ASX 200’s latest slide, I spy bargain shares!

Motley Fool contributor Grace Alvino 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.

Here’s a simple portfolio with 3 ASX ETFs that many investors consider a strong foundation for building wealth over time. It’s also known as the lazy Australian millionaire portfolio.

Instead of trying to pick individual winners, this approach focuses on owning the market through a handful of low-cost exchange-traded funds.

Over time, diversified ETF portfolios like this have proven remarkably resilient. They have navigated events such as the dot-com crash, the Global Financial Crisis and the COVID-19 market shock.

Yet investors who stayed invested and reinvested their dividends have still benefited from powerful long-term compounding. Let’s have a closer look at the 3 ASX ETFs.

BetaShares Australia 200 ETF (ASX: A200)

The first building block is the BetaShares Australia 200 ETF. This ASX ETF tracks the S&P/ASX 200 Index (ASX: XJO) and provides exposure to 200 of the largest companies listed on the Australian market.

In other words, investors gain broad exposure to the Australian economy in a single trade. The fund’s biggest holdings include blue chips such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and CSL Ltd (ASX: CSL).

One of the biggest advantages of A200 is its ultra-low cost. With a management fee of just 0.04%, it is one of the cheapest ASX ETFs available on the Australian share market. Low fees are critical for long-term investors because they leave more of the portfolio’s returns in shareholders’ pockets.

Vanguard MSCI International Shares ETF (ASX: VGS)

Next comes global diversification through the Vanguard MSCI International Shares ETF. While Australia has many strong companies, it represents only a small share of the global stock market.

This ASX ETF solves this problem by investing in more than 1,300 companies across developed markets including the United States, Europe and Japan. Its largest holdings include global giants such as Apple Inc. (NASDAQ: AAPL) and NVIDIA Corp. (NASDAQ: NVDA).

These businesses dominate their industries and generate enormous cash flows. By owning VGS, investors gain exposure to some of the most innovative and powerful companies in the world.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The final piece of the puzzle is the ASX ETF ASIA. This fund focuses on leading technology companies across Asia, a region that has become one of the most dynamic growth engines of the global economy.

The portfolio includes well-known companies such as Alibaba Group Holding Ltd (NYSE: BABA) and Samsung Electronics Co. Ltd (KRX: 005930).

Asia’s rapidly expanding middle class, rising technology adoption and growing digital economies could provide powerful long-term tailwinds for these companies.

Foolish Takeaway

The beauty of this lazy millionaire portfolio lies in its simplicity. With just three low-cost ASX ETFs, investors can build a diversified portfolio designed to weather market volatility while still capturing long-term growth.

A simple allocation could see investors place around 40% into A200, 40% into VGS and 20% into ASIA. Together, these three ETFs provide exposure to hundreds of leading companies across Australia and the global economy.

For patient investors willing to stay invested and reinvest dividends along the way, this ASX ETFs portfolio shows that sometimes the simplest strategy can also be the most powerful.

The post Just 3 ASX ETFs could build a lazy Australian millionaire portfolio appeared first on The Motley Fool Australia.

More reading

• Down 40%: 2 ASX 200 blue-chip shares to buy
• What on earth’s going on with the CSL share price?
• How these 2 ASX ETFs benefit from Chinese innovation: Expert
• Should I invest $5,000 in BHP shares?
• Here’s what experts think will happen with the RBA interest rate this month

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, CSL, and Nvidia and is short shares of Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group. The Motley Fool Australia has recommended Apple, BHP Group, CSL, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

China just commenced its 2026 Two Sessions meeting.

The Two Sessions is an annual meeting of China’s National People’s Congress (NPC) and its political advisory body, the CPPCC.

It provides a rare opportunity for investors to understand the country’s thinking on the economy. It includes the country’s GDP growth target, fiscal priorities, and key policy agenda set for the year ahead.

The team at Betashares released a report yesterday, analysing the outcome. The report also provided a snapshot of how investors can position themselves to benefit. 

Why is this meeting important for Aussie investors?

China’s annual “Two Sessions” can have a meaningful impact on Australian investors. 

Australia’s economy – and many of its listed companies – are closely tied to Chinese demand. 

The policy signals coming out of the meetings often shape expectations for commodities, trade flows, and regional growth, all of which influence Australian markets.

What did Betashares have to say?

According to Hugh Lam, Investment Strategist at Betashares, the most notable shift was the GDP target moving from a single figure of ‘around 5%’ to a range of 4.5–5%.

He said this is signallying a deliberate move away from ‘growth at any cost’ toward prioritising high quality, sustainable development. 

While the softer target may be viewed negatively, the range provides more policy flexibility with room to either meet the minimum target or to surprise on the upside.

Ultimately, the change reflects an acknowledgment from the Chinese government that the external trade environment remains highly uncertain and that recalibrating internal growth drivers away from exports toward consumption will take some time.

The report said the policy mix increasingly rewards sectors tied to the innovation, self-sufficiency and clean energy themes.

Simultaneously, it is penalising sectors reliant on infrastructure spending or consumer confidence that has yet to meaningfully recover.

ASX ETFs set to benefit

Betashares said the upcoming 15th Five-Year Plan is set to embed AI and technological self-sufficiency as core national priorities. Increased fixed asset investment in this area should support continued growth.

Additionally, strong policy tailwinds, global leadership in clean energy, and an increased need for energy security amid the ongoing war in Iran present tailwinds for renewables. 

The team at Betashares is bullish on Chinese/Asia technology and renewables. 

The report identified two ASX ETFs that offer exposure to these sectors: 

• Betashares Capital Ltd – Asia Technology Tigers Etf (ASX: ASIA) – Targets the 50 largest technology and online retail stocks in Asia (ex-Japan). 
• Betashares Energy Transition Metals Etf (ASX: XMET) – XMET provides exposure to global producers of copper, lithium, nickel, cobalt, graphite, manganese, silver and rare earth elements. 

The post How these 2 ASX ETFs benefit from Chinese innovation: Expert appeared first on The Motley Fool Australia.

More reading

• Just 3 ASX ETFs could build a lazy Australian millionaire portfolio
• 3 excellent ASX ETFs to buy after the selloff
• 3 of the best ASX ETFs to buy and hold forever
• 5 fantastic ASX ETFs to buy and hold for 10 years
• If AI isn’t just a US story, these 2 ETFs could benefit

Motley Fool contributor Aaron Bell has positions in Betashares Capital – Asia Technology Tigers Etf. 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.

Lynas Rare Earths Ltd (ASX: LYC) shares were one of the standout performers on the Australian share market Wednesday. The share price of the rare earths producer surged 16% to $20.59.

Lynas shares continued a remarkable run that has seen the stock climb roughly 192% over the past 12 months and about 65% since the start of 2026.

Here’s why Lynas shares were racing higher Wednesday — and whether the rally could continue.

Long-term Japanese supply deal

Lynas shares soared after the company announced a major long-term supply agreement with Japanese industry, locking in demand for its rare earth products. 

Under the deal, Japan will secure access to Lynas’ rare earth materials for 12 years. The agreement also includes a minimum pricing structure, designed to protect producers from aggressive price undercutting in the market. 

Investors appear to have welcomed the move. Long-term supply contracts provide greater revenue visibility and reinforce Lynas’ position as a critical supplier for countries looking to reduce their reliance on Chinese rare earth processing.

Given the strategic nature of these materials, which are essential for EV motors, wind turbines, and defence systems, the deal strengthens Lynas’ geopolitical relevance and commercial outlook.

Strengths behind the Lynas rally

A major strength for Lynas is its unique strategic position in the global rare earth supply chain. China dominates roughly 90% of rare earth processing capacity, meaning Western governments are increasingly keen to secure alternative suppliers. 

As one of the few major rare earth producers outside China, Lynas has found itself in a strategic sweet spot. This has driven strong policy support and investment into companies like Lynas, which operates the Mt Weld mine in Western Australia and processing facilities in Malaysia and the US.

Demand trends also look favourable. Prices for key rare earth metals such as neodymium and praseodymium have climbed to multi-year highs amid tight supply and rising demand from electric vehicles and clean-energy technologies. 

In addition, analysts expect the company’s financial performance to accelerate in the coming years. Forecasts suggest earnings growth of around 40% per year, reflecting higher production volumes and stronger pricing. 

These tailwinds have helped fuel the extraordinary performance of Lynas shares investors have witnessed over the past year.

Risks investors should watch

Despite the strong momentum, Lynas is not without risks.

Rare earth prices can be extremely volatile, and any sharp fall could quickly weigh on earnings. The sector is also heavily influenced by geopolitical tensions and policy changes, which can shift market dynamics rapidly.

Operational risks remain another factor. Mining and processing rare earths is technically complex, and disruptions or cost blowouts at facilities could impact profitability.

What next for Lynas shares?

Valuation risk is emerging after the recent rally. Some brokers are warning Lynas shares could be running ahead of fundamentals if growth expectations fail to materialise.

As a result, Bell Potter believes the run has gone too far and that Lynas shares now reflect overly optimistic long-term rare earth prices.

The broker has a sell rating and a 12-month price target of $11.60. This suggests a 44% downside from current price levels.

The post Up 192%, where to from here for Lynas shares? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Why Brazilian Rare Earths, Lynas, Macquarie Technology, and Ora Banda shares are pushing higher today
• Why the Lynas share price is roaring 14% today
• Lynas Rare Earths inks 12-year supply deal with Japanese industry

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. 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.

Fortunately for income investors, there are lots of ASX dividend shares to choose from on the local market.

To narrow things down, let’s take a look at two that Morgans is bullish on right now.

Here’s what the broker is recommending to clients:

CAR Group Limited (ASX: CAR)

This auto listings company has been named as a buy by analysts at Morgans.

It feels that its shares are trading at a level that has created an attractive entry point for investors. The broker said:

CAR’s 1H26 result was strong overall, in our view, and was largely in line with consensus (Visible Alpha) expectations. CAR reported double-digit percentage revenue and EBITDA growth in its key offshore markets (North America, Latam and Korea), whilst Australia revenue growth remained sound (~+8% vs the pcp). We make minor changes to our FY26 assumptions.

CAR is trading on ~22x FY27F PE, which we view as an attractive entry point given its double-digit EPS growth profile. We move to a BUY recommendation with a $35.20 PT.

Morgans expects fully franked dividends of 89.5 cents per share in FY 2026 and then 99 cents per share in FY 2027. Based on the current share price of $25.69, this would mean dividend yields of 3.5% and 3.9%, respectively.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Another ASX dividend share that has been named as a buy is investment management company Pinnacle.

While its half-year results were softer than expected, the broker remains positive and sees lots of value in its shares at current levels. It said:

PNI’s 1H26 NPAT (~A$67m, -11% on the pcp) came in -4% below consensus, but it was more in line excluding one-offs (e.g. mark-to-market investment impacts). Overall, we saw the 1H26 result as compositionally stronger than the headline numbers suggested, and positively accompanied with a move-the-dial acquisition.

We reduce FY26F EPS by -7% on a softer-than-expected 1H26 “reported” result, and dilution from the PAM equity issue. Conversely, FY27F EPS rises +8% on PAM earnings benefits and a broader review of our assumptions. Our price target falls to A$23.21 (from A$26.30). We move to a BUY recommendation (previously Accumulate) with >20% upside existing to our PT.

Morgans is forecasting fully franked dividends of 63 cents per share in FY 2026 and then 80 cents per share in FY 2027. Based on its current share price of $15.10, this would mean dividend yields of 4.2% and 5.3%, respectively.

The post 2 buy-rated ASX dividend shares for income investors in March appeared first on The Motley Fool Australia.

More reading

• The smartest ASX dividend stocks to buy with $10,000 right now
• 3 shares dumped from the ASX 200 index (and 3 new additions)
• How to invest $10,000 to aim for a 15% dividend yield
• 32 ASX shares about to go ex-dividend
• 2 ASX 200 shares I rate as top buys for growth

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

Some companies are built to benefit from short-term trends. Others are built to endure.

When I think about ASX 200 shares I could happily hold for decades, I usually look for businesses with strong competitive positions, long growth runways, and industries that should still look attractive many years from now.

With that in mind, here are three shares that I believe have the qualities needed to be outstanding long-term investments.

Sigma Healthcare Ltd (ASX: SIG)

The healthcare sector has always appealed to me as a long-term investment theme. Demand for medicines and pharmacy services tends to grow steadily as populations expand and age.

That is why I find Sigma Healthcare such an interesting business today.

The company recently transformed itself through its merger with Chemist Warehouse, creating what is now one of the most powerful pharmacy platforms in Australia. By combining Sigma’s wholesale distribution network with Chemist Warehouse’s dominant retail brand, the business now has a much broader footprint across the healthcare supply chain.

This kind of vertical integration can be incredibly valuable. It gives the group scale advantages, stronger relationships with suppliers, and the ability to reach millions of customers through a well-established pharmacy network.

Healthcare demand isn’t going away anytime soon. And with Chemist Warehouse’s brand power now part of the business, Sigma looks positioned to benefit from that demand for many years to come.

Xero Ltd (ASX: XRO)

When I look at ASX 200 shares that have the potential to compound value over decades, I’m often drawn to businesses that become embedded in how people run their companies.

That is exactly what Xero has managed to achieve.

The company’s accounting platform has become a core operating system for 4.6 million small businesses around the world. Once a business adopts software like this, switching away becomes difficult. Financial records, payroll systems, tax reporting, and accounting workflows all become intertwined with the platform.

That kind of stickiness is incredibly valuable.

What excites me most about Xero is that its growth opportunity still looks large. Cloud accounting adoption continues to expand globally, and the company is steadily building out an ecosystem of services that can sit on top of its core platform.

In other words, it isn’t just accounting software anymore. It is becoming a broader operating platform for small businesses.

Netwealth Group Ltd (ASX: NWL)

Another type of business I like to own for the long term is one that benefits from structural changes in an industry.

For me, Netwealth fits that description perfectly.

Over the past decade, the Australian wealth management industry has been shifting away from legacy platforms and toward modern digital solutions. Financial advisers increasingly want platforms that are easier to use, more flexible, and better integrated with modern financial tools.

Netwealth has positioned itself right at the centre of that shift.

The ASX 200 share continues to attract strong inflows as advisers migrate client funds onto its platform. As those funds under administration grow, the business benefits from powerful operating leverage. The platform model means that once the infrastructure is built, additional funds can generate significant incremental revenue.

Australia’s retirement system also provides a long runway for growth. As superannuation balances rise and more Australians seek financial advice, platforms like Netwealth could continue expanding for many years.

Foolish takeaway

Finding companies that can be held for decades isn’t easy. Markets change, industries evolve, and even great businesses can stumble.

But when I look at Sigma, Xero, and Netwealth, I see three ASX 200 shares operating in industries with powerful long-term tailwinds. Each has a strong position in its market and a business model that could continue creating value for many years.

The post 3 of the best ASX 200 shares to buy and hold forever appeared first on The Motley Fool Australia.

More reading

• Forget Xero shares, this ASX tech stock is tipped to double in value
• These cheap ASX growth shares could rise 60% to 100%
• Down 50%, is it time to jump into Xero shares?
• 4 reasons to buy the redound in Xero shares today
• After the ASX 200’s latest slide, I spy bargain shares!

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

It may seem strange to be advocating for passive income investing in ASX shares at a time when market commentators are expecting RBA rate rises.

But, given how share prices have drifted lower this year, I’m seeing a great opportunity for investors to grab ASX shares while dividend yields are higher.

Don’t forget, we saw a few years ago how some businesses were able to accelerate their revenue growth amid the inflationary period – they were not just helpless bystanders in the situation.

Why do interest rates matter for ASX shares?

Interest rates play an important role in how much investors are willing to pay for an asset. It acts like gravity – when interest rates go lower, asset prices can jump higher. But, the opposite is typically true when interest rates go up – it’s a significant headwind for asset valuations.

But, share prices can still go up in a rising rate environment if the operating profit/net profit of the business or asset increases. The multiple of earnings that investors are willing to pay is just one part of the equation.

Warren Buffett, the legendary American investor from Omaha, once explained why interest rates are so important for valuations. Buffett said:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

Investor expectations of rate rises this year has led to lower share prices for some businesses, along with the oil price volatility.

How does it affect the passive income?

When the share price of an ASX dividend share falls, it can lead to a double whammy of a better valuation and a better dividend yield.

A dividend yield is determined by the size of the payout and the valuation of the business. When share prices go lower, the dividend yield increases.

For example, if a business had a dividend yield of 5% and the share price falls 10%, the dividend yield becomes 5.5%. If it fell 20%, the dividend yield would be 6%.

I like investing at times like these, as it really boosts the potential dividend yield.

Is it a once-in-a-decade opportunity to buy passive income shares? The 2020s have already seen COVID-19, the inflation and tariff related sell-offs, so the declines have been more than once-in-a-decade.

But, this is certainly a rare opportunity to buy ASX dividend shares with a good dividend yield.

What I’d invest in

There are a wide range of ASX dividend shares that are trading at attractive prices with a good dividend yield.

I’m thinking names like Charter Hall Long WALE REIT (ASX: CLW), Centuria Industrial REIT (ASX: CIP), Medibank Private Ltd (ASX: MPL), Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), Coles Group Ltd (ASX: COL), Australian Foundation Investment Co Ltd (ASX: AFI), WCM Global Growth Ltd (ASX: WQG), JB Hi-Fi Ltd (ASX: JBH), Universal Store Holdings Ltd (ASX: UNI), Nick Scali Ltd (ASX: NCK) and Lovisa Holdings Ltd (ASX: LOV).

I’m optimistic that the above names can provide investors with a diversified and growing source of passive income over time.

The post A once-in-a-decade chance to earn a supersized passive income from ASX shares? appeared first on The Motley Fool Australia.

More reading

• 3 top ASX dividend share buys for passive income in March
• What I’d do as a beginner with $50,000 to invest in ASX shares
• The best ASX shares to invest $10,000 in right now
• An ASX dividend stock yielding 3.9% with consistent cash flow
• 5 ASX shares I’d buy with $5,000 today

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 Lovisa and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Lovisa, Nick Scali, Universal Store, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) shares have been going through a rough period.

The mining giant’s shares last traded at $51.96, which is about 12.5% below the record high of $59.39 reached at the start of March.

After a pullback like that, many investors are likely to be wondering if this is an opportunity to buy, or a signal to stay away?

In my view, investing $5,000 in BHP shares today could make a lot of sense as part of a diversified portfolio.

Copper is becoming the centrepiece

For many years BHP was best known as an iron ore powerhouse. That is still an important part of the business, but the company’s strategic focus is increasingly shifting toward copper.

That shift matters because copper demand is expected to rise significantly over the coming decades. The metal plays a critical role in electrification, renewable energy infrastructure, electric vehicles, and power grids.

In other words, copper sits right in the middle of many of the biggest structural trends shaping the global economy.

BHP already owns some of the world’s most significant copper assets, including operations in Chile and its stake in the Antamina mine in Peru. That mine alone produced over 124,000 tonnes of copper on a BHP-attributable basis in 2025.

With supply expected to tighten in the years ahead, companies with large, long-life copper resources could be well positioned to benefit.

A mining giant with scale and diversification

Another reason BHP appeals to me as a long-term investment is the scale and diversification of its portfolio.

The company has major operations across iron ore, copper, coal, and potash. While commodity prices inevitably move in cycles, that diversification can help smooth earnings over time.

BHP also has a reputation for disciplined capital allocation. A recent example is its decision to unlock value from the Antamina mine through a silver streaming agreement with Wheaton Precious Metals (NYSE: WPM).

Under the deal, BHP will receive an upfront payment of US$4.3 billion in exchange for a share of future silver production from the mine.

Because silver is a by-product at Antamina, this transaction effectively allows BHP to monetise a non-core commodity while retaining exposure to the mine’s copper, zinc, and lead output.

Moves like this highlight how management continues to optimise the company’s portfolio.

A reliable dividend payer

Income investors also tend to be drawn to BHP.

Mining dividends can fluctuate depending on commodity prices, but BHP has historically been one of the strongest dividend payers on the Australian share market.

That combination of large-scale assets, strong cash flow generation, and disciplined capital management has allowed the company to return substantial amounts of capital to shareholders over time.

For investors building a portfolio designed to generate both income and long-term growth, I think BHP can play an important role.

Foolish takeaway

Commodity companies will always experience ups and downs. Share prices can move with swings in iron ore prices, copper demand, or broader market sentiment.

But when I look at BHP today, I see a diversified global miner with world-class assets and increasing exposure to copper, one of the most important commodities for the energy transition.

With the share price sitting well below recent highs, I think investing $5,000 in BHP shares today could be a sensible move for investors thinking about the long term.

The post Should I invest $5,000 in BHP shares? appeared first on The Motley Fool Australia.

More reading

• How much do I need to invest in Woodside and BHP shares for $10,000 a year in passive income?
• BHP and Woodside linked in CEO race as top executive emerges as contender
• 3 Australian shares to buy if the ASX pulls back 10%
• How much could the BHP share price rise in the next year?
• 5 key drivers of the new commodities ‘supercycle’: experts

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

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was on form again and pushed higher. The benchmark index rose 0.6% to 8,743.5 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 set to fall

The Australian share market looks set to fall on Thursday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 49 points or 0.55% lower this morning. In late trade in the United States, the Dow Jones is down 0.6%, the S&P 500 is down 0.1% and the Nasdaq is up 0.1%.

Collins Foods shares on watch

Collins Foods Ltd (ASX: CKF) shares will be on watch on the ASX 200 on Thursday. After the market close on Wednesday, the quick service restaurant operator announced an acceleration of its expansion in Germany. This has seen the company acquire eight KFC restaurants in Bavaria, centred around Munich, increasing its presence and scale in the country. The company also revealed that Australian same store sales are up 3.2% so far in the second half and 2.7% year to date.

Oil prices jump

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch on Thursday after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 5.1% to US$87.74 a barrel and the Brent crude oil price is up 5% to US$92.23 a barrel. Traders were buying oil despite news that the IEA is releasing 400 million barrels of stockpiled oil.

Lynas shares upgraded

Bell Potter is no longer bearish on Lynas Rare Earths Ltd (ASX: LYC). This morning, the broker has finally taken its sell rating off the rare earths producer’s shares and upgraded them to a hold rating with a vastly improved price target of $19.00 (from $11.60). It said: “We continue to see risks around the valuation premium and multiple, which in our opinion are pricing in perfection in an imperfect world. However, we note that the announcement safeguards a substantial portion of revenue and earnings, reducing the impact of adverse price swings should additional supply enter the market over the coming years and somewhat justifying that premium.”

Gold price falls

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor session on Thursday after the gold price dropped overnight. According to CNBC, the gold futures price is down 1.1% to US$5,187.4 an ounce. A stronger US dollar and inflation concerns weighed on the precious metal.

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

More reading

• Here are the top 10 ASX 200 shares today
• Why Brazilian Rare Earths, Lynas, Macquarie Technology, and Ora Banda shares are pushing higher today
• Why the Lynas share price is roaring 14% today
• GQG Partners lifts FUM to US$172.9bn in February 2026
• Macquarie Technology Group secures $200m NRFC investment for digital infrastructure

Motley Fool contributor James Mickleboro has positions in Collins Foods. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has recommended Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX dividend shares look even more compelling to me now than they did last year.

Inflation and interest rates seem to be on the rise in 2026, meaning that the market has sent the share prices of some businesses down quite noticeably.

Being able to buy an investment at a lower price means getting a higher dividend yield and increasing the potential long-term capital gains.

With the lower share prices in mind, I’m calling out the following names as attractive buys.

Charter Hall Long WALE REIT (ASX: CLW)

This is a real estate investment trust (REIT) that owns a wide range of properties including government properties (such as Geoscience Australia), pubs, grocery and distribution, data centres and telecommunications, service stations, food manufacturing, waste and recycling, and plenty more.

The ASX dividend share has seen its share price decline by around 20% in the past year, despite ongoing rental income growth. Around half of the property portfolio has CPI-linked rental increases with the rest having fixed annual increases.

It reported having net tangible assets (NTA) of $4.68 at 31 December 2025, suggesting there’s a significant valuation discount for investors, which is partly why the ASX dividend share’s yield is so high.

The business is expecting to pay an annual distribution per unit of 25.5 cents in FY26, which translates into a distribution yield of approximately 7%, at the time of writing.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second largest funeral provider in Australia. It also has 41 cremation facilities and nine cemeteries.

The business is a beneficiary of Australia’s ageing and growing population, giving the business ultra-long-term morbid tailwinds. Unfortunately, the number of deaths in Australia is expected to increase by an average of 2.9% per year from 2026 to 2035 and then increase 2.4% per year from 2026 to 2045.

It’s steadily making acquisitions over the years to boost its scale and geographic presence, while also benefiting from organic growth of the average revenue per funeral. I’m expecting these tailwinds to boost its bottom line in the coming years, allowing the ASX dividend share to hike its dividend.

Its last two declared payments come to a grossed-up dividend yield of 4.9%, including franking credits, at the time of writing. The Propel share price has dropped 14% in the past month at the time of writing.

JB Hi-Fi Ltd (ASX: JBH)

JB Hi-Fi is Australia’s leading electronics retailer and it also has a growing position in appliance and other house-related items. It has three other businesses – JB Hi-Fi New Zealand, The Good Guys and E&S.

The ASX dividend share has increased its payout almost every year over the last 15 years, which is an impressive record for an ASX retail share. I’d describe the business as one of the best retailers on the ASX and I expect this performance to continue.

However, the JB Hi-Fi share price has fallen around 30% in the past six months, despite a good FY26 half-year result and ongoing sales growth in the second half of FY26. The HY26 dividend was hiked by 23.5%.

The last two declared dividends from the business come to a grossed-up dividend yield of 7.4%, including franking credits, at the time of writing.

The post 3 top ASX dividend share buys for passive income in March appeared first on The Motley Fool Australia.

More reading

• 2 ASX REITs I’d buy today for passive income
• 35 ASX All Ords shares with ex-dividend dates next week
• JB Hi-Fi vs. Wesfarmers: Which retail stock deserves a place in your portfolio?
• Buy, hold, sell: Charter Hall Long WALE, ASX, Aussie Broadband shares
• Experts name 3 ASX dividend shares to buy

Motley Fool contributor Tristan Harrison has positions in Propel Funeral Partners. 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.