Tag: Stock pick

Investment property has long been one of Australia’s favourite ways to generate wealth and income. 

However a new report from Global X has shed light on how a changing market is causing many investors to reassess that strategy.

Key market changes 

Rising interest rates, falling home prices and the Federal Government’s changes to negative gearing and capital gains tax (CGT) concessions are reshaping the economics of property investing. 

According to Global X, investors are increasingly turning to alternative sources of income, particularly exchange-traded funds (ETFs). 

ETFs offer access to dividends, bond yields and infrastructure income without the costs and complexity of owning property.

The shift is already showing up in the data.

The latest ABS Lending Indicators report revealed that investor housing activity weakened significantly in the June quarter. The number of new investor loan commitments fell 8.6%, while the value of investor loans declined 10.2% to $37.1 billion. That was by far the largest fall among major borrower groups and marked the sharpest quarterly decline in investor lending since 2022.

While property investors are pulling back, money is flowing strongly into income-focused investment products.

Property is becoming less attractive 

Global X highlighted that residential property has traditionally rested on two pillars: rental income and capital growth. Today, both are facing headwinds.

Borrowing costs remain elevated, reducing the cash flow generated by investment properties. Meanwhile, Australia’s housing market is beginning to lose momentum. Cotality’s national Home Value Index fell 0.7% in July, the largest monthly decline since December 2022. Major banks are reporting that mortgage applications have also fallen by as much as 20% since Budget night, highlighting weaker investor appetite.

Additionally, The Federal Government’s changes to negative gearing and CGT have added another layer of pressure. 

While investors once relied on generous tax benefits to enhance after-tax returns, the reduction of these incentives means many are now taking a closer look at whether property still delivers the income and return profile they need.

These factors are pushing income investors towards a different asset class. 

Income ASX ETFs

According to Global X’s latest ETF Market Scoop, Australian investors allocated a record $6.8 billion into ETFs in July alone, making it the strongest month on record for the industry. 

The report also revealed which type of ASX ETFs investors found most appealing.

Income-focused ETFs attracted a record $1.8 billion, including a record $1.4 billion into bond ETFs.

This surge suggests investors are actively seeking income opportunities outside traditional property investments.

Unlike residential property, income ETFs can provide diversified exposure to dozens or even hundreds of underlying securities through a single investment. Depending on the strategy, investors can access income from government bonds, corporate bonds, listed infrastructure, dividend-paying companies or a combination of these assets.

For investors accustomed to relying on rental income, these products offer an alternative source of regular cash flow without tenant management, maintenance costs, land tax or the need to take on large amounts of debt.

Investors seeking income-oriented ASX ETFs have several options to consider: 

• Global X S&P/ASX 200 High Dividend ETF (ASX: ZYAU)
• Betashares Australian Dividend Harvester Fund (ASX: HVST)
• Betashares S&P Australian Shares High Yield ETF (ASX: HYLD). 

The post The property market is cooling: Here’s how income investors are adapting appeared first on The Motley Fool Australia.

More reading

• Expert names 2 top ASX ETFs to buy today
• This ASX income ETF yields 4.3% and pays monthly dividends
• 3 of the best dividend ASX ETFs right now for passive income
• Why I’d buy these 2 ASX ETFs for $10,000 a year in passive income
• $10,000 invested in these dividend ETFs will bring how much passive income?

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

ASX ETFs, or exchange traded funds, provide a handy one-stop-shop for Aussie investors seeking to gain exposure to a basket of stocks with a single investment.

Rather than having to research and buy multiple stocks, you can get that diversity, and more, from an ETF.

Below we look at two ETFs that DP Wealth Advisory’s Andrew Wielandt recently issued buy recommendations for (courtesy of The Bull).

ASX ETF offers international stock exposure

The first ASX ETF Wielandt has a bullish outlook on is Betashares Global Royalties ETF (ASX: ROYL).

“ROYL is a diverse exchange traded fund operating across a number of countries, including the United States, Canada, Brazil and Denmark,” he said.

“It holds about 40 companies, with investments including ARM Holdings PLC, Texas Pacific Land Corporation and Wheaton Precious Metals at August 11, 2026,” he added.

Summarising his buy recommendation on ROYL, Wielandt concluded:

ROYL focuses on companies earning royalty and intellectual property income. What appeals is relatively steady returns compared to other cyclical investments. The company posted a return of 15.59% after fees in the past 12 months to July 31, 2026.

Which brings us to…

Exchange traded fund with an ESG bent

The second ASX ETF Wielandt recommends buying will hold particular appeal to investors who place a high value on companies’ environmental, social, and governance (ESG) standards.

The fund in question is the Munro Climate Change Leaders Fund Active ETF (ASX: MCCL), which Wielandt noted that he holds in is own self-managed super fund.

“This exchange traded fund holds a concentrated portfolio of companies aiming to benefit from decarbonisation during the next decade,” he said.

According to Wielandt:

The ETF holds between 15 and 25 positions involved in clean energy, clean transport and energy efficiency. The fund posted a return of 16.9% for the 12 months to July 31, 2026. However, given its highly concentrated nature, it’s important to note that returns can be volatile.

In our view, MCCL can also be considered an investment in the future and can be part of a balanced portfolio.

A bonus passive income ETF

If it’s passive income you’re targeting, then you might want to look into the BetaShares Australian Dividend Harvester Fund (ASX: HVST).

This ASX ETF gives investors instant exposure 40 to 60 high-yielding, blue-chip ASX shares.

And HVST pays out dividends every month, so your next income payout is never too far away.

As at 31 July the HVST had 12-month trailing yield of 5.6%, 63% franked. Taking those franking credits into account, the grossed-up yield comes out to 7.1%.

The post Expert names 2 top ASX ETFs to buy today appeared first on The Motley Fool Australia.

More reading

• 2 ASX ETFs to buy as the market gathers strength: expert
• 3 of the best dividend ASX ETFs right now for passive income
• Why I’d buy these 2 ASX ETFs for $10,000 a year in passive income
• $10,000 invested in these dividend ETFs will bring how much passive income?
• How much is needed in superannuation to target a $6,000 monthly passive income?

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

Although the S&P/ASX 200 Index (ASX: XJO) is still pretty close to its August all-time highs, there are still a few well-known blue-chip shares that are offering dividend yields above 4% today. But despite popular dividend shares like Telstra Group Ltd (ASX: TLS), Westpac Banking Corp (ASX: WBC), and Fortescue Ltd (ASX: FMG) offering yields over 4%, they still only pay out two dividends a year.

That might be fine for some investors. But others would very much prefer a more regular payment schedule. After all, our bills and living expenses don’t get invoiced to us every six months. So why not invest in a dividend-paying stock that accommodates more frequent paycheques?

Investors who agree with that sentiment might wish to check out a certain income-focused exchange-traded fund (ETF).

That ETF is none other than the BetaShares S&P Australian Shares High Yield ETF (ASX: HYLD).

How does this ASX income ETF work?

Like most ASX ETFs, HYLD holds a portfolio of underlying investments, which it manages on behalf of its investors. In this case, that portfolio consists of dozens of proven dividend stocks from the ASX. These range from the usual suspects like BHP Group Ltd (ASX: BHP), National Australia Bank Ltd (ASX: NAB), and Telstra, to others like Coles Group Ltd (ASX: COL), Suncorp Group Ltd (ASX: SUN), and Ampol Ltd (ASX: ALD).

You might also recognise Medibank Private Ltd (ASX: MPL), Metcash Ltd (ASX: MTS), and APA Group (ASX: APA).

This income ETF is able to extract and pass on the dividends it receives from these holdings, alongside profits from rebalancing its portfolio, to its own investors as dividend distributions. This it does 12 times a year.

Yes, HYLD is a monthly dividend payer. Additionally, its dividends tend to come not fully franked, but partially franked to a high level. To illustrate, this ETF’s most recent payout, which arrived on 18 August, was franked at 77.84%.

But let’s get to some numbers. HYLD has just passed its twelfth dividend payment (the one we just discussed). That means we can give it a proper trailing yield for the first time. So over the past 12 months, this ASX income ETF has doled out a total of $1.4275 in dividends per unit. At the current (at the time of writing) unit price of $33.50, that 12-month dividend total gives this ASX income ETF a trailing yield of 4.26%.

Given that yield, as well as this ASX income ETF’s monthly payout schedule, this investment might well be worth a look today if dividends are a priority of your ASX investing portfolio.

The post This ASX income ETF yields 4.3% and pays monthly dividends appeared first on The Motley Fool Australia.

More reading

• 3 of the best dividend ASX ETFs right now for passive income
• Why these 2 ASX ETFs could be the best dividend funds for retirees
• How much passive income could I earn from a $600,000 superannuation balance?

Motley Fool contributor Sebastian Bowen 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 Apa Group and Telstra 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.

If you’re ready to retire, or perhaps already have, you may be looking to invest some of your hard-earned superannuation savings to provide an annual passive income stream.

While there are a few ways you could go about this, I believe the best means to achieving an extra $20,000 of passive income a year from superannuation is by investing in quality ASX dividend shares.

We’ll look at two ASX dividend gems below you may wish to buy today.

They both currently pay market beating yields.

And while one has seen a modest share-price retracement over the past year, the other has gained. (Share prices as of 19 August.)

That’s important, because when you’re looking for ASX shares offering higher dividend yields, you’ll often find this is because their share prices have cratered in recent months. Which in turn often means that their future dividend payouts will be coming down as well.

Now before we dive in, do be aware that the yields you generally see quoted are trailing yields. Future passive income payouts may be higher or lower depending on a range of company specific and macroeconomic factors.

With that said…

Two ASX dividend shares for a $20,000 superannuation income stream

Our first ASX dividend gem is Helia Group Ltd (ASX: HLI).

Shares in the S&P/ASX 200 Index (ASX: XJO) lenders mortgage insurance (LMI) provider were recently trading for $5.72. That sees the Helia share price up around 1% over the past year.

As for the passive income on offer from your superannuation investment, Helia paid (or shortly will) two partly franked dividends and a special dividend over the past year, totalling $1.26 per share.

At the recent share price, that sees this ASX 200 dividend stock trading at a partly franked trailing yield (including that special dividend) of 22%.

The second ASX dividend gem I’d invest my superannuation savings in for passive income is Fortescue Ltd (ASX: FMG).

At the recent share price of $18.12, Fortescue shares are down 7.8% in 12 months. But I believe the ASX 200 mining giant can return to capital growth along with paying regular dividends.

Over the last 12 months, Fortescue paid two fully franked dividends totalling $1.22 per share.

At the recent Fortescue share price, that ASX 200 mining stock trades on a fully franked trailing dividend yield of 6.7%.

How much to invest for $20,000 of passive income?

Based on the trailing yields, and assuming you invest an equal amount in both ASX dividend gems, you could expect to see a yield of 14.3%.

To secure a $20,000 annual passive income stream, you’d then need to invest $139,860 of your superannuation savings today.

The post 2 ASX dividend gems I’d buy for a $20,000 superannuation income boost appeared first on The Motley Fool Australia.

More reading

• 8 ASX shares just upgraded by the experts
• Buy, hold, sell: Fortescue, Northern Star, and Megaport shares
• Are Fortescue shares in the buy zone after its results?
• Everything you need to know about the new Fortescue dividend
• Why is the Fortescue share price on a rollercoaster today?

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

A $100,000 retirement income is well above what most superannuation benchmarks assume you will actually need.

But it is also the number a lot of Australians aim towards.

So what balance gets you there?

The answer is more encouraging than you might expect, though it does demand some planning.

What the superannuation benchmarks actually say

The Association of Superannuation Funds of Australia publishes the country’s most widely used retirement budgets.

For the March quarter of 2026, its comfortable standard sits at $55,923 a year for a single person and $78,566 for a couple.

The modest standard is much lower, at $36,434 and $52,473 respectively.

ASFA estimates a single homeowner needs a lump sum of $630,000 to fund a comfortable retirement, while a couple needs $730,000.

Those figures assume a 6% investment return alongside some Age Pension support.

A $100,000 income is therefore roughly 80% above the comfortable benchmark for a single retiree.

It also sits well beyond the point where the Age Pension assets test offers any assistance at all.

The maths behind $100,000 a year

Once you retire and convert your balance into an account-based pension, the government sets minimum withdrawal rates.

For anyone aged between 65 and 74, that minimum is 5% of the balance each year.

Running that calculation in reverse gives you the following figures.

A balance of $2 million drawn at 5% produces exactly $100,000 a year.

That is the headline answer.

For a couple the burden is shared, so around $1 million each achieves the same household income.

It is worth remembering that earnings inside a retirement phase pension are generally tax free, and so are the withdrawals for anyone over 60.

A $100,000 pension income is consequently worth a great deal more than a $100,000 salary.

Where the transfer balance cap fits in

There is a ceiling on how much you can move into that tax-free environment.

From 1 July 2026, the general transfer balance cap rose to $2.1 million per person.

This means that at the 5% minimum drawdown rate, a fully used $2.1 million cap generates $105,000 a year.

The system is effectively designed to support roughly this level of income for one retiree.

How much superannuation you would realistically need

The honest answer is around $2 million in superannuation for a single retiree.

A couple targeting the same household income needs a similar amount between them.

That may seem like a daunting figure against the average balance, which sits closer to $308,600 for Australians aged 70 to 74.

Getting there with ASX shares

This is where growth assets do the heavy lifting.

The Vanguard Australian Shares Index ETF (ASX: VAS) is the most popular way Australians own the local market.

It tracks the S&P/ASX 300 Index (ASX: XKO) across more than 300 holdings and charges just 0.07% a year.

Since inception the fund has returned an average of roughly 9.22% annually.

At that rate, $500,000 invested at age 45 would grow to about $2 million by age 61 without a single extra contribution.

Compounding, rather than the size of your contributions, does most of the work.

Foolish takeaway

Retiring on $100,000 a year is achievable, but it takes roughly $2 million and a long runway.

The good news is that superannuation remains one of the most tax-effective structures available to Australian investors.

Start early, keep your fees low, and let the market do the compounding for you.

The difference between a modest retirement and a comfortable one is usually decided decades before you stop working.

The post How much super do you need to retire on $100,000 a year? appeared first on The Motley Fool Australia.

More reading

• How I’d make investing easy with Vanguard ETFs
• Top 3 ASX ETFs for a first-time investor in 2026
• How to turn $10,000 into $100,000 with ASX shares
• Is $2 million really the new superannuation target?
• How much do I need to retire on $100,000 a year at 60?

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

Having $50,000 to invest is a good problem to have.

But it can also make the decision feel harder.

With a larger sum, investors may not want to put everything into one narrow idea. A better approach could be to build around a mix of broad global exposure, proven technology leaders, and a focused long-term growth theme.

With that in mind, here are three ASX exchange traded funds (ETFs) that could be worth considering.

Betashares Global Shares ETF (ASX: BGBL)

The first ASX ETF to consider is the Betashares Global Shares ETF.

This fund gives investors exposure to a large basket of global shares across developed markets.

That means it is not tied to the fortunes of the Australian economy. Instead, investors can gain exposure to global companies across technology, financials, healthcare, industrials, consumer goods, and communications.

Major holdings include Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL).

I think this ASX ETF could work well as a foundation holding because it offers significant diversification in one trade. It was recently recommended by the team at Betashares.

Betashares Nasdaq 100 ETF (ASX: NDQ)

Another ASX ETF to consider is the Betashares Nasdaq 100 ETF.

This fund is more growth-focused than the BGBL ETF. It gives investors exposure to 100 of the largest non-financial companies listed on the Nasdaq exchange.

These companies are involved in some of the biggest shifts in the global economy, including artificial intelligence, cloud computing, digital advertising, software, ecommerce, streaming, chips, and consumer technology.

Holdings include Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN).

This ASX ETF can be volatile because it has a heavy tilt toward technology and growth shares. But for investors with a long-term view, it provides exposure to companies that are shaping how people work, shop, communicate, and use technology.

VanEck Global Semiconductor ETF (ASX: SMHG)

A final ASX ETF that could be worth a closer look is the VanEck Global Semiconductor ETF.

This is the most targeted option of the three. The fund gives investors exposure to companies involved in semiconductors and semiconductor equipment.

That makes it a way to invest in the chips behind artificial intelligence, cloud computing, data centres, electric vehicles, smartphones, automation, and advanced manufacturing.

Holdings include Taiwan Semiconductor Manufacturing (NYSE: TSM) and Nvidia.

This is unlikely to be a smooth ride. Semiconductor shares can be cyclical and sentiment can move quickly.

But the long-term theme is powerful. The modern economy needs more computing power, not less, and semiconductors sit at the centre of that demand.

This fund was recently recommended by the team at VanEck.

The post The best ASX ETFs to buy with $50,000 appeared first on The Motley Fool Australia.

More reading

• Investing in AI stocks on the ASX? Here’s what you should buy
• Top 3 ASX ETFs for a first-time investor in 2026
• 20% a year: Is this the ASX’s best index fund?
• Could the AI boom just be getting started for NextDC shares?
• How to invest $10,000 the Warren Buffett way: Buy businesses, not stocks

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon, Apple, Microsoft, and Nvidia. 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) has just given investors another look at the strength of its banking franchise.

For me, three parts of the business stood out from its FY26 result and support the long-term investment case.

A broad franchise

CBA’s scale across Australian banking remains one of its biggest strengths.

The bank says it is the main financial institution for one in three Australians and one in four Australian businesses. During FY26, it also grew at or above the wider banking system across home lending, business lending, consumer finance, household deposits, and business deposits.

I think the range of that growth is particularly encouraging.

CBA has relationships with customers across everyday banking, savings, mortgages, credit cards, business finance, and investing. Those relationships give it plenty of opportunities to serve customers as their financial needs change over time.

A customer might begin with a transaction account before eventually taking out a home loan, opening an investment account, or starting a business.

The more products customers use, the deeper that relationship can become.

For me, this enormous customer base provides CBA with a strong foundation to keep growing alongside the Australian economy.

Business banking continues to impress

I also like what CBA is building in business banking.

Around one in four Australian businesses now considers CBA its main financial institution, and the bank continued increasing its share of business lending and deposits during FY26.

This gives CBA exposure to another large part of the economy.

Businesses need funding to buy equipment, expand premises, manage working capital, and pursue new opportunities. They also need transaction accounts, payment services, and other banking products to run their day-to-day operations.

CBA can build much broader relationships with these customers than simply providing a loan.

I think the bank’s ability to serve businesses of varying sizes gives it a considerable opportunity as Australian companies grow and invest over the years ahead.

Its strong position in this market also complements the enormous retail franchise, giving CBA several avenues for long-term growth.

Technology remains a major strength

CBA has spent years building one of Australia’s strongest digital banking offerings, and I think this remains an important competitive advantage.

The CommBank app sits at the centre of the relationship for millions of customers. The bank continues adding tools that help people manage spending, savings, home loans, investments, and other parts of their finances.

It is also pushing further into artificial intelligence. CommBank Companion is being developed to help retail and business customers interact with their financial information conversationally, while the bank is investing in AI across areas such as customer service, productivity, and fraud detection.

I think technology can help CBA make banking easier while strengthening customer relationships.

It can also improve how quickly the bank makes decisions and handles routine processes. For example, CBA says around 70% of proprietary home loan applications are now automatically decided on the same day.

Continuing to invest heavily in these capabilities could help CBA protect its leading position as customer expectations keep changing.

Foolish takeaway

CBA’s FY26 result reinforced several of the reasons I like the business for the long term.

Its enormous customer franchise gives it plenty of opportunities to grow existing relationships, business banking continues to strengthen, and its technology investment could keep making the bank more valuable to customers.

Those are three qualities I would be happy to back for many years.

The post 3 reasons to buy CBA shares following its results appeared first on The Motley Fool Australia.

More reading

• Want income for life? Here’s how I’d build an ASX dividend portfolio
• My top 5 ASX 200 shares to buy and hold
• By August 2027, CBA shares could turn $15,000 into…
• With $30 billion in FY26 income, should I buy CBA shares today?
• How much do I need in my superannuation to earn $50,000 per year in passive income?

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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.

If you are looking for the best ASX shares, then it could be worth listening to Bell Potter.

That’s because the broker has just released an update on its Core Portfolio.

Here’s what Bell Potter holds in its portfolio:

ANZ Group Holdings Ltd (ASX: ANZ)

This big four bank features in the portfolio due to its earnings resilience, income, and valuation. In addition, Bell Potter thinks it is better positioned than its major bank peers. It explains:

We hold ANZ as our preferred exposure to the Australian banking sector, offering a compelling combination of earnings resilience, attractive income and valuation support. We increased our position as we see ANZ as better positioned than its major bank peers, many of which continue to trade on demanding multiples.

Higher interest rates should continue to support margins and profitability, while a strong capital position underpins sustainable dividend payments and shareholder returns. As the domestic economy navigates a higher-for-longer interest rate environment, ANZ provides exposure to improving credit demand, robust cash generation and potential earnings upgrades, while still trading at a discount to the sector ‘ s highest-rated names.

Brambles Ltd (ASX: BXB)

Another ASX share that could be worth considering is supply chain logistics company Brambles.

Bell Potter likes the company due to its recurring revenues, strong free cash flow generation, and attractive returns on invested capital. It explains:

We hold Brambles for its exposure to a high-quality global logistics franchise with recurring revenues, strong free cash flow generation and attractive returns on invested capital. Through its market-leading CHEP pallet pooling network, Brambles benefits from powerful network effects and long-term structural growth in supply chain outsourcing. Recent operational challenges in the US appear temporary rather than structural, creating an opportunity to buy a quality business at a more attractive valuation.

As pallet repair capacity normalises, earnings growth should reaccelerate, supported by improving economic activity, greater pooling penetration and digitisation initiatives that enhance productivity and margins. We believe the market is underappreciating the resilience of the franchise and the potential for earnings upgrades as operational performance improves.

South32 Ltd (ASX: S32)

A final ASX share that Bell Potter is positive on is mining giant South32. It likes the company’s exposure to global electrification and infrastructure investment through its copper and zinc operations.

The broker also highlights that it sees significant value in South32’s copper growth pipeline. This includes the Sierra Gorda expansion and Hermosa development. Bell Potter said:

We hold South32 as a simplified base-metals growth story with increasing leverage to copper and zinc, two commodities that sit at the heart of global electrification and infrastructure investment. The sale of the aluminium business to Alcoa transforms South32 into a more focused mining company, reducing earnings volatility, lowering legacy liabilities and improving the overall quality of the asset portfolio. The transaction is expected to leave the company with substantial balance sheet flexibility, supporting capital returns while retaining the capacity to fund future growth.

We see significant value in South32’s copper growth pipeline, including the Sierra Gorda expansion and Hermosa development, which provide long-duration exposure to commodities benefiting from the energy transition and the build-out of AI and data-centre infrastructure. As the business becomes increasingly weighted toward higher-growth, higher-multiple base metals, we believe South32 is well positioned to deliver both earnings growth and a valuation re-rating over the medium term.

The post Bell Potter names the best ASX shares to buy in August appeared first on The Motley Fool Australia.

More reading

• Brokers name the ASX 200 winners and losers from the first half of reporting season
• Here’s the earnings forecast out to 2027 for ANZ shares
• Brambles earnings: FY26 profit rises, dividend up, outlook steady
• How many Brambles shares do I need to buy for $5,000 per year of passive income?
• Buy, hold, sell: ANZ Bank, Iress, and JB Hi-Fi shares

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.

ASX reporting season is now past its halfway mark, and the gap between winners and losers is widening.

Roughly half of the S&P/ASX 200 Index (ASX: XJO) has reported its FY26 numbers.

Companies that beat their guidance have been rewarded, and those that missed have been sold hard within minutes of the announcement hitting the market.

Three results released this week captured that divide neatly, and each one tells you something different about what the market is currently willing to pay for.

Zip: the standout of ASX reporting season

Zip Co Ltd (ASX: ZIP) delivered the cleanest beat of the week.

Its FY26 result showed total transaction volume of $16.7 billion, up 27.2%, on revenue that rose 24.6% to $1.35 billion. Cash EBTDA jumped 57.9% to $268.9 million, comfortably ahead of the $260 million guidance.

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

The United States did the heavy lifting again, with transaction volume there up 42.5% in local currency across 4.6 million active customers.

Management is now guiding to cash EBTDA of $340 million in FY27.

The shares surged on the day, and several brokers reaffirmed their buy ratings.

Even so, Zip remains down roughly 23% for the calendar year.

Northern Star: record profit with a catch

Northern Star Resources Ltd (ASX: NST) posted the biggest headline number of the day.

The company’s FY26 result delivered revenue of $7.6 billion, underlying EBITDA of $4.3 billion and underlying net profit after tax of $1.8 billion.

The company sold 1.54 million ounces of gold at an all-in sustaining cost of $2,698 per ounce.

The full-year dividend rose to 55 cents per share.

The catch lies within the cash flow statement. Underlying free cash flow was only $190 million, as KCGM’s capital spending has reached its peak.

FY27 guidance compounds the point, with production of 1.5 million to 1.65 million ounces expected at an all-in sustaining cost of $3,050 to $3,450 per ounce.

That is a meaningful step up in costs.

Brambles: resilient, but not enough

Brambles Ltd (ASX: BXB) had a tough time this reporting season.

Its FY26 numbers showed sales revenue up 2% and underlying profit up 4%.

Excluding a US$90 million hit from United States repair capacity constraints, profit would have risen 11%.

Free cash flow before dividends topped US$1 billion for a second consecutive year, and dividends rose 16% to 46.15 US cents per share alongside US$509 million of buybacks.

Chief executive Graham Chipchase was measured about the year.

We delivered a resilient financial result while advancing the customer operational and sustainability initiatives that strengthen our long-term competitive advantage.

The market wanted more, and the shares drifted lower despite a dividend increase that would have been celebrated in a quieter year.

FY27 guidance of 2% to 6% underlying profit growth includes a further US$35 million to US$55 million repair drag.

What the rest of ASX reporting season holds

The heaviest week is still ahead.

Fortescue, Woodside and Coles report early next week, while Woolworths, WiseTech and Domino’s follow on 26 August.

Wesfarmers, Qantas and South32 close things out on 27 August.

The full calendar runs through to the end of the month.

Foolish takeaway

ASX reporting season rewards clarity more than it rewards size.

Zip beat its own guidance and told investors exactly what FY27 should look like.

Northern Star delivered a record profit but flagged materially higher costs ahead.

Brambles did neither particularly well nor particularly badly.

With the biggest week of ASX reporting season still to come, investors may want to wait a bit longer before judging whether this reporting season was a success.

The post Brokers name the ASX 200 winners and losers from the first half of reporting season appeared first on The Motley Fool Australia.

More reading

• Bell Potter names the best ASX shares to buy in August
• 3 ASX shares UBS says will return better than 36%
• How high do UBS and Macquarie think Zip shares will go?
• Buy, hold, sell: Fortescue, Northern Star, and Megaport shares
• Here are the top 10 ASX 200 shares today

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 Domino’s Pizza Enterprises, Wesfarmers, and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Domino’s Pizza Enterprises and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I think ASX growth shares can be a great way to build wealth over time.

The companies I am most interested in are those that can keep increasing revenue and earnings for many years while reinvesting in even larger opportunities.

When that process continues for long enough, the results can be substantial.

Look for businesses with room to grow

A company can already be successful and still have a long way to go.

TechnologyOne Ltd (ASX: TNE) is a good example. Its enterprise software is used by councils, universities, government organisations, and other large institutions.

Once an organisation builds important processes around a software platform, changing providers can become time-consuming and disruptive. That can help TechnologyOne retain customers while gradually expanding the services they use.

The tech company also has opportunities to keep growing overseas, particularly in the UK.

For me, that is the type of growth story worth looking for. TechnologyOne does not need to invent an entirely new business every few years. It can keep improving its existing software, add customers, and expand into larger markets.

Give compounding time to work

Growth investing becomes particularly powerful when a company can reinvest its profits and keep generating attractive returns from that spending.

Hub24 Ltd (ASX: HUB) has been doing this for years as it expands its investment and superannuation platform.

Australia’s pool of retirement savings should keep growing over the decades ahead, while financial advisers increasingly rely on modern platforms to manage client portfolios.

If Hub24 continues winning advisers and attracting more money onto its platform, the business can become more valuable without needing to reinvent its core proposition.

This is where patience becomes important.

A strong company can have an excellent year without creating life-changing wealth for shareholders. The bigger opportunity comes when it repeats that growth over five, 10, or even 20 years.

Earnings can compound, the business can become considerably larger, and shareholders participate in that expansion.

I would focus on quality as well as growth

Rapid growth alone would not be enough for me.

I want to understand why a company is growing and whether it has a realistic chance of continuing.

REA Group Ltd (ASX: REA) is the type of business I find attractive for that reason.

Realestate.com.au has built an enormous audience, which encourages property agents to list their homes on the platform. Those listings then give buyers and renters another reason to keep visiting.

REA Group can build on that position by offering better tools, property data, artificial intelligence features, and services connected to financing and the broader property journey.

I think businesses with strong competitive positions have a better chance of protecting the profits needed to keep investing for the future.

The share price will not always cooperate

Even great growth shares can fall sharply.

Expectations can become too high, economic conditions can change, or investors can simply lose enthusiasm for a sector.

I would expect volatility rather than treating it as a sign that a long-term strategy has failed.

That makes diversification important as well. I would rather own several high-quality growth businesses than depend on one company getting everything right.

It also means I would be careful about chasing a share simply because its price has been rising. The business still needs to justify my confidence in its future.

Foolish takeaway

I think ASX growth shares can play an important role in building serious long-term wealth.

The businesses I want to own have clear opportunities to become larger, strong competitive positions, and the ability to reinvest successfully for years.

Finding those companies is only part of the job. The other part is giving them enough time to compound.

If I can own a collection of strong growth businesses and resist the temptation to constantly interfere, I think that can be a powerful approach to growing wealth over the long term.

The post How I’d use ASX growth shares to build long-term wealth appeared first on The Motley Fool Australia.

More reading

• 16 ASX 200 shares with ex-dividend dates next week
• Buy, hold, sell: Car Group, Baby Bunting, Hub24 shares
• 7 ASX 200 shares with reaffirmed buy ratings this week
• Buy, hold, sell: BHP, CSL, and HUB24 shares
• Buy, hold, sell: REA, Northern Star Resources, Suncorp shares

Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. 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.