Tag: Stock pick

A new month is here, so what better time to consider some new additions to an income portfolio.

But which ASX dividend shares could be worth buying this month? Let’s take a look at three that stand out as top picks for income investors:

Charter Hall Retail REIT (ASX: CQR)

The first ASX dividend share to look at is Charter Hall Retail REIT.

This real estate investment trust owns a portfolio of convenience-based retail properties. These are not the large discretionary shopping centres that rely heavily on fashion and luxury spending. Instead, the portfolio is focused on properties anchored by supermarkets and everyday retailers.

That distinction is important. People still need groceries, pharmacy products, and essential services regardless of the broader economic backdrop. This can make convenience retail more resilient than some other areas of commercial property.

Charter Hall Retail REIT also benefits from long leases and a tenant base that includes major supermarket operators. This provides a level of rental visibility, which is important for income generation.

With its focus on essential retail property, Charter Hall Retail REIT offers dividend exposure tied to everyday consumer spending rather than big-ticket purchases.

Rural Funds Group (ASX: RFF)

Another ASX dividend share worth considering in May is Rural Funds Group.

It is a property group with exposure to agricultural assets. Its portfolio includes farmland and related infrastructure leased to operators across different agricultural sectors.

This gives it a different income profile from traditional office, retail, or industrial property. Rental income is backed by agricultural land, which can provide diversification away from more common property exposures.

The appeal of Rural Funds is that it gives investors access to farmland without having to own or operate farms directly. The group collects rent from tenants, while the underlying assets remain tied to long-term demand for food and agricultural production.

Agriculture can still be affected by weather, commodity prices, and operating conditions. But the leased structure gives Rural Funds a clearer income model than direct farming exposure.

For investors seeking income from real assets, Rural Funds brings something different to the ASX dividend landscape.

Transurban Group (ASX: TCL)

A third ASX dividend share that could be a top pick for income investors is Transurban Group.

It operates toll roads in Australia and North America. The company’s assets sit in major urban corridors where traffic demand is supported by population growth, commuting, freight, and airport access.

Traffic volumes can fluctuate, particularly during weaker economic periods or disruptions. But over longer periods, urban growth and congestion tend to support demand for well-located road infrastructure.

With a portfolio of large-scale toll roads and exposure to long-term population growth, Transurban arguably remains one of the ASX’s most attractive income shares.

The post 3 excellent ASX dividend shares to buy in May appeared first on The Motley Fool Australia.

More reading

• How I’d invest $2,000 in high-yield ASX 300 shares
• How to become a millionaire on a $60,000 salary
• 3 ASX dividend stocks I’d buy if I were a retiree
• $250,000 to invest for passive income? Here’s how I would build a portfolio
• Is it time for investors to turn back to defensive ASX 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 positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Charter Hall Retail REIT, Rural Funds Group, and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Telix Pharmaceuticals Ltd (ASX: TLX) remains the most shorted ASX share despite its short interest easing to 16.1%. This radiopharmaceuticals company has been facing US FDA approval challenges. In addition, some short interest could be attributable to convertible-arbitrage hedging tied to Telix’s US$600 million convertible bond refinancing.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease slightly to 15.5%. A poor update from Domino’s Pizza US last week has cast further doubt on the pizza chain operator’s turnaround.
• Polynovo Ltd (ASX: PNV) has 14.3% of its shares held short, which is up again since last week. Given that this medical device company’s shares trade on high earnings multiples, short sellers may think they are overvalued.
• Treasury Wine Estates Ltd (ASX: TWE) has 13.2% of its shares held short, which is up week on week. Tough trading conditions in the wine market have weighed on the Penfolds owner’s performance.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 12.1%, which is down week on week. Short sellers appear to have been closing positions in the quick service restaurant operator after the release of a better than expected update.
• Zip Co Ltd (ASX: ZIP) has 11.8% of its shares held short. This is down slightly week on week. Short sellers aren’t giving up on this buy now pay later provider despite its strong quarterly update.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 11.7%, which is down week on week. This may be due to concerns that travel demand could be impacted by the Middle East conflict and higher airfares.
• Lotus Resources Ltd (ASX: LOT) has short interest of 11.5%, which is up week on week. Last week, this uranium producer’s shares crashed after retracting previously reported figures while it works through reconciliation processes.
• Boss Energy Ltd (ASX: BOE) has short interest of 11.45%, which is down since last week. There are concerns about this uranium miner’s uncertain production outlook beyond 2026.
• DroneShield Ltd (ASX: DRO) has 11.4% of its shares held short, which is down since last week. Valuation concerns are likely to be why short sellers are targeting this counter-drone technology company.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• These ASX financial stocks are bouncing, is it just the start?
• Here are the top 10 ASX 200 shares today
• Why Boss Energy, Coles, Evolution Mining, and Mineral Resources shares are charging higher today
• The five best ASX 200 stocks to buy and hold in April revealed
• Why these ASX shares jumped 15%+ in April

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, DroneShield, PolyNovo, Telix Pharmaceuticals, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Domino’s Pizza Enterprises, Flight Centre Travel Group, PolyNovo, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX dividend stock JB Hi-Fi Ltd (ASX: JBH) has fallen 34% since October 2025, as the chart below shows. I think this is a great time to invest in the business because a lower valuation offers a more compelling dividend yield.

JB Hi-Fi is a leading electronics and appliances business with four different businesses – JB Hi-Fi Australia, JB Hi-Fi New Zealand, The Good Guys and E&S Trading.

The company has a lot to offer investors who want passive income, so let’s look at why it’s an appealing buy.

Appealing ASX dividend stock characteristics

One of the aspects I like to look at when it comes to dividend ideas is whether a company has a history of increasing its payout. I want to have a fairly high level of confidence that my investment is going to increase its dividend in any given year. If it’s increasing the payout, then it’s not decreasing it.

JB Hi-Fi grew its dividend every year between 2013 and 2022. The inflationary and high interest rate environment led to a slight reduction in 2023 and it has grown its payout each year since then.

So, over the last 13 years, the business has increased its dividend numerous times.

In the FY26 half-year result, JB Hi-Fi hiked its dividend per share by 23.5% to $2.10 following a 7.1% rise in earnings per share (EPS) to $2.80. I’m not expecting the next two dividend payments to grow as much as 20%, but the dividend yield could remain strong.

According to the projection on Commsec, JB Hi-Fi is expected to deliver a pleasing payout in FY26, with an estimated annual payment of $3.41, which translates into a potential grossed-up dividend yield of 6.25%, including franking credits, at the time of writing.

Pleasingly, the JB Hi-Fi dividend per share is expected to rise to $3.51 per share in FY27 and then $3.83 per share in FY28.

Why this looks like a good time to invest

The ASX dividend stock is a top performer in the retail sector. It’s usually a good idea to own the leader in the industry.

JB Hi-Fi highlights multiple competitive advantages, including its scale (as the number home consumer electronics and home appliances), a low-cost operating model (including a highly productive floor space of sales per square metre), its multichannel capabilities, and the people and culture.

It’s understandable that some investors treat the JB Hi-Fi share price as a cyclical name exposed to discretionary spending. But, I think spending on devices like smartphones and appliances is more defensive than some investors are giving it credit for, therefore the large decline of the JB Hi-Fi share price could be an opportunistic time to invest.

According to Commsec, the business is now valued at 17x FY26’s estimated earnings.

The post 1 ASX dividend stock down 34% I’d buy right now appeared first on The Motley Fool Australia.

More reading

• 5 ASX shares scoring upgraded ratings this week
• 3 star ASX dividend income stocks for the rest of 2026
• Consumer discretionary shares to target for a long-term rebound
• 2 ASX blue-chip shares offering big dividend yields
• 5 ASX 200 shares that could be a bargain right now

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

Investors looking for exposure to the energy sector do not have to limit themselves to Australian oil and gas shares.

There are ASX exchange traded finds (ETFs) that provide access to global energy giants in a single trade. One fund that does this is BetaShares Global Energy Companies ETF – Currency Hedged (ASX: FUEL).

What is the FUEL ETF?

The BetaShares Global Energy Companies ETF is designed to track an index made up of the largest global energy companies outside Australia, before fees and expenses.

The fund is also hedged into Australian dollars. This means it aims to reduce the impact of currency movements between the Australian dollar and offshore markets.

The FUEL ETF gives investors exposure to some of the biggest energy companies in the world, including Shell (LSE: SHEL), Chevron (NYSE: CVX), and Exxon Mobil (NYSE: XOM).

These companies are very different from many Australian-listed energy businesses. They are larger, more geographically diversified, and often vertically integrated across exploration, production, refining, distribution, and trading.

That scale can be important. Global energy majors typically have deep balance sheets, broad asset bases, and operations across multiple regions. This can provide exposure to global energy demand without relying on a single project, basin, or domestic market.

The fund’s top holdings also include TotalEnergies (LSE: TTE), Siemens Energy (ETR: ENR), BP (LSE: BP), ConocoPhillips (NYSE: COP), Enbridge (TSX: ENB), Canadian Natural Resources (TSX: CNQ), and Suncor Energy (TSX: SU).

The fund uses a passive, index-tracking approach. This means investors are not paying for an active manager to pick energy stocks. Instead, it provides broad exposure to the sector through a rules-based portfolio.

ASX ETF tipped as a buy

According to The Bull, the team at Fairmont Equities believes that investors should be considering this ASX ETF.

This week, it has recommended the fund as a buy for a second time. This is due to its belief that the outlook for global energy prices has strengthened. The expert said:

I recommended this exchange traded fund as a buy in TheBull.com.au in mid February because I believed the energy sector was poised to move substantially higher. With the onset of the war in Iran after my recommendation, I’m now more convinced that energy prices will increase from here given supply disruptions.

This ETF captures the largest global oil and gas companies. This ETF broke out of a multi-year trading range earlier this year, and any dip provides a buying opportunity, in my view.

Ultimately, what happens in the Middle East will likely have the biggest impact on the performance of the BetaShares Global Energy Companies ETF in the near term. If a peace deal is agreed between the US and Iran, oil prices and the FUEL ETF could come under pressure.

The post Expert names 1 ASX ETF to buy this week appeared first on The Motley Fool Australia.

More reading

• 5 thematics driving ASX ETF investment today: expert

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 Canadian Natural Resources, Chevron, and Enbridge. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended BP, ConocoPhillips, and Siemens Energy Ag. 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.

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week in a positive fashion. The benchmark index rose 0.75% to 8,729.8 points.

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

ASX 200 expected to fall

The Australian share market looks set for a subdued start to the week despite a relatively good finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.25% lower. In the United States, the Dow Jones was down 0.3%, but the S&P 500 rose 0.3% and the Nasdaq charged 0.9% higher.

Oil prices fall

ASX 200 energy shares such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor session after oil prices tumbled on Friday night. According to Bloomberg, the WTI crude oil price was down 3% to US$101.94 a barrel and the Brent crude oil price was down 2% to US$108.17 a barrel. This appears to have been driven by news that Iran has sent over a new peace deal proposal to the US.

NAB half-year results

All eyes will be on National Australia Bank Ltd (ASX: NAB) shares today when the big four bank becomes the latest to release its half-year results. According to a note out of Citi, its analysts are expecting the banking giant to report a first-half cash profit of $3.8 billion. This is a touch lower than the consensus estimate due to its belief that bad debt charges will be higher than expected.

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a decent start to the week after the gold price pushed higher on Friday night. According to CNBC, the gold futures price was up 0.35% to US$4,644.5 an ounce. This couldn’t stop the precious metal from recording another weekly decline amid inflation and rate hike concerns.

Buy Develop Global shares

The team at Bell Potter thinks investors should be buying Develop Global Ltd (ASX: DVP) shares for exposure to the mining sector. This morning, the broker has retained its buy rating and $6.60 price target on the mining and mining services company’s shares. Speaking about the Pioneer Dome development, which has been expedited given the strength in lithium commodity prices, the broker said: “Pioneer Dome’s importance lies in its ability to provide timely liquidity for the Group, supporting de-leveraging and financing of Sulphur Springs construction. The resulting financial flexibility would allow DVP to act nimbly on any forthcoming organic and inorganic opportunities.”

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

More reading

• What happened with ASX 200 banks stocks NAB and CBA in April?
• ASX 200 energy shares lead and market finally cracks 8-day losing streak
• Why did ASX 200 energy stocks like Woodside and Santos struggle in April?
• These ASX financial stocks are bouncing, is it just the start?
• 3 ASX dividend stocks with 4% yields to buy for a winning income portfolio

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX blue-chip shares can provide investors with an attractive level of passive income, if we choose the right ones. The best stocks can also offer reliable earnings.

I’m going to outline two businesses that could help investors sleep easy at night through providing solid dividends.

Scentre Group (ASX: SCG)

Scentre Group is one of the largest property businesses in Australia, it owns Westfield shopping centres in Australia and New Zealand. It currently has 42 properties with over 12,000 outlets.

In a rising interest rate and inflation environment, it’s understandable why some investors are feeling less optimistic about the business than last year. The Scentre share price is down by 11% in the year to date, which has boosted the distribution yield on offer.

The business expects to grow its annual distribution by 4% in 2026 to 18.43 cents per security, translating into a forward distribution yield of close to 5%.

It’s growing rental earnings at a solid rate, with expectations of 4% growth of funds from operations (FFO), driven by strong rental performance, highlighted by the 2026 first quarter update.

In the three months to 31 March 2026, total business partner sales (tenant) sales across its portfolio rose 5% to $7 billion, with specialty sales growth of 5.3%.

The ASX blue-chip share noted that demand for space in Westfield destinations continued to be strong, with portfolio occupancy of 99.8% at March 2026, up 20 basis points (0.20%) since 31 March 2025.

It said that average specialty rent escalations came to 5.3%, while 636 leasing deals achieved average specialty releasing spreads of 3.3%.

I also like that the business continues to invest across its property portfolio, unlocking more potential rental growth. In the latest quarter, works continued on progressing its $240 million redevelopment at Westfield Bondi.

Australian Foundation Investment Co Ltd (ASX: AFI)

The other business I want to highlight is the listed investment company (LIC), which is one of the oldest and largest LICs in Australia.

Its portfolio is full of ASX blue-chip shares such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Macquarie Group Ltd (ASX: MQG), National Australia Bank Ltd (ASX: NAB), CSL Ltd (ASX: CSL) and Telstra Group Ltd (ASX: TLS).

It has provided investors with a pleasingly resilient (and sometimes growing) dividend this century.

Excluding special dividends, the last two half-year ordinary dividends have amounted to 26.5 cents per share. That translates into a grossed-up dividend yield of 5.7%, including franking credits.

This seems like a good time to invest because it’s trading at close to the largest discount to its underlying value – the pre-tax net tangible assets (NTA) – in the last decade. At the time of writing, it’s trading at a discount of close to 15% to the NTA as of 24 April 2026.

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

More reading

• Scentre Group maintains 2026 growth targets
• Scentre Group launches tender offer for 2030 subordinated notes
• Scentre Group earnings: sales rise and more visitors for Westfield in 2026

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

Fortescue Ltd (ASX: FMG) has been of the biggest dividend payers on the ASX over the past several years, and could continue being a strong passive income option in FY26 and FY27.

Fortescue is a leading ASX iron ore share. It has benefited from the ongoing demand from China for Australia’s iron ore, which has kept the iron ore price at a reasonable level, even when experts were pessimistic.

Currently, the iron ore price is sitting around US$107 per tonne, according to Trading Economics – that’s a rise of 8% year-over-year. Pleasingly, higher revenue per tonne is largely extra profit for Fortescue, aside from paying more to the government.

The strength of the iron ore price may bode reasonably well for the upcoming dividend payments, in my view. Let’s look at the size of the possible dividend for a $10,000 investment in Fortescue shares.

2027 passive dividend income projection

Analysts are expecting the ASX mining share to deliver a payout reduction to FY26 compared to FY25.

In FY25, the business paid an annual dividend per share of $1.10.

According to the FY26 forecast on Commsec, owners of Fortescue shares are expected to receive an annual dividend of approximately $1.04 per share. At the time of writing, that translates into a grossed-up dividend yield of 7.4%, including franking credits.

The Fortescue dividend in 2027 (FY27) is forecast to be 80 cents per share, according to Commsec.

At the time of writing, that translates into a potential forward grossed-up dividend yield for FY27 of 5.7%, including franking credits.

Passive income from $10,000 investment

If someone bought, or already owns, $10,000 of Fortescue shares, then an investor can look forward to hundreds of dollars of passive income in 2027, even though it’s suggested the payout could decline.

At the current Fortescue share price, a $10,000 investment could unlock $570 of annual passive income in 2027, including the franking credits.

Is the Fortescue share price a buy?

Analysts certainly don’t seem optimistic about the ASX mining share to deliver compelling returns at the current valuation.

Commsec notes that there are 17 current recommendations on Fortescue shares. Only one of those is a buy rating. There are also nine hold ratings and seven buy ratings.

In other words, professional investors don’t think the miner is a buy right now, so it could be wise to look at other passive income opportunities.

The post If I invest $10,000 in Fortescue shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Buying ASX 200 mining shares? Here’s how Rio Tinto, Fortescue and BHP stacked up in April
• Buy, hold, sell: Capricorn Metals, PLS Group, Fortescue shares
• 5 ASX All Ords shares downgraded by brokers this week
• Fortescue shares: Buy, hold, or sell? Bell Potter gives its verdict

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

If you have $10,000 available to invest, blue chip ASX shares can be a good place to start looking.

These are businesses with scale, strong market positions, and long-term growth drivers. They may not always be the fastest movers on the market, but the best blue chips have a habit of compounding value over time.

With that in mind, here are three ASX blue chip shares to consider buying with $10,000.

Goodman Group (ASX: GMG)

Goodman Group remains one of the most attractive large-cap shares on the ASX.

The company owns, develops, and manages industrial property around the world. Its assets are used by customers that need well-located logistics facilities, warehouses, and increasingly, data centre infrastructure.

That last point is becoming more important. Goodman is no longer just a play on e-commerce and supply chains. It is also becoming increasingly exposed to the growth in cloud computing, artificial intelligence, and digital infrastructure.

This gives the business several long-term growth drivers. Retailers need faster fulfilment networks, companies need smarter logistics, and technology groups need large-scale sites for data centres.

Goodman’s strength is that it owns the type of scarce land and development capability needed to support these trends.

With demand for logistics and data infrastructure continuing to grow, Goodman remains a blue chip share with a strong long-term outlook.

ResMed Inc (ASX: RMD)

ResMed Inc is another ASX blue chip share that looks well placed for the years ahead.

The company is a global leader in sleep apnoea treatment and respiratory care. Its devices, masks, and software help patients manage breathing-related conditions, with demand supported by ageing populations and rising awareness of sleep health.

Its recent result shows that the company continues to perform positively. In the third quarter, ResMed delivered an 11% increase in revenue to US$1.4 billion, while earnings per share rose 21% after its gross margin expanded by 290 basis points to 62.8%. This was driven by cost improvements and manufacturing efficiencies.

This is not just a volume growth story. The margin improvement shows ResMed is also becoming more profitable as it scales.

The company is also investing in digital health, connected devices, and home healthcare. These areas could become more important as healthcare systems look for ways to treat more patients outside traditional hospital settings.

With strong demand, improving profitability, and a clear role in the future of home healthcare, ResMed remains a high-quality ASX blue chip to consider.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is another ASX blue chip share to consider buying with the $10,000.

The company provides enterprise software to government departments, universities, councils, and large organisations. These customers rely on its products for critical functions, which helps make revenue more predictable.

TechnologyOne’s shift to software-as-a-service has strengthened the business. Recurring revenue has increased, customer relationships have deepened, and the company has gained better visibility over future earnings.

That consistency is a major part of the appeal. TechnologyOne has built a long track record of earnings growth, supported by disciplined execution and a clear product strategy.

Its opportunity is not limited to Australia. The company has also been expanding in the United Kingdom, giving it another pathway for growth over the long term.

With recurring revenue, mission-critical software, and a proven management team, TechnologyOne is arguably one of the ASX’s strongest blue chip technology shares.

The post 3 ASX blue chip shares to buy with $10,000 appeared first on The Motley Fool Australia.

More reading

• Should you sell in May and stay away?
• Why I’d buy and hold these ASX 200 blue-chip shares for at least 5 years
• 10 excellent ASX shares to buy in May
• Why EQ Resources, Inghams, ResMed, and Skycity shares are tumbling today
• What’s going on with ResMed shares today?

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

The S&P/ASX 200 Index (ASX: XJO) stock Telstra Group Ltd (ASX: TLS) is one of the leading blue-chip shares for passive income.

When I look for dividends, I want to see a few different factors. For example, I want to see a good dividend yield, payout growth potential, and stability. I think Telstra ticks all three boxes and can help investors earn $200 in monthly income.

Let’s run through why Telstra stock is so appealing.

Dividend yield

The business already offers a pleasing level of passive income for shareholders.

Telstra delivered shareholders 10.5 cents per share in the FY26 half-year result. If it repeats that dividend with the FY26 result, then the current FY26 yield is 3.9% excluding franking credits, and more than 5.5% including franking credits.

While that’s not the biggest dividend yield on the ASX, I think it’s important to remember that Telstra offers other pleasing passive income aspects.

Payout growth potential

Compounding is a powerful force that can make a financial figure today much larger in five or ten years, as long as the growth rate is solid.

There are not many ASX 200 stocks with a dividend yield above 5% that are likely to grow their dividend payout by at least 10% in FY26, in my view.

Telstra grew its FY26 half-year dividend by 10.5%, and I think it’s likely to grow its annual dividend by 10.5%.

It has grown its annual dividend each year since the growth streak started in 2022.

I believe Telstra’s dividend growth can continue because it’s delivering revenue growth through subscriber growth and price rises (helping the average revenue per user (ARPU)).

Additionally, its earnings are growing at a stronger pace (funding good dividend growth) thanks to operating leverage, partly because the costs of its mobile network are being spread across more users.

Dividend stability

An ASX 200 dividend stock is not much use for passive income if its payouts dry up during a downturn, in my view. That’s when we need the cash payments to flow the most!

I’d say telecommunications (including an internet connection) is a very important service for households and businesses for a variety of purposes, so Telstra’s earnings are very defensive in my view.

$200 of monthly passive income

Telstra doesn’t pay a dividend every single month, but it does pay every six months.

With that, we can think of the monthly goal as an annual target and then divide that by 12.

To target $200 per month, we’re talking about $2,400 per year. To receive that annual goal, we’d probably need 11,429 Telstra shares.

I think the ASX 200 stock is a great option for passive income, but it’s close to its 52-week high, so it’s not the first business I’d buy today because it’s not at the greatest value.

The post I’d buy 11,429 shares of this ASX 200 stock to aim for $200 a month of passive income appeared first on The Motley Fool Australia.

More reading

• How to invest $10,000 for passive income in superannuation
• Own Telstra shares? Here’s what happened in April
• Top 10 ASX shares bought and sold in April
• Should I sell my Telstra shares in May?
• $250,000 to invest for passive income? Here’s how I would build a portfolio

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

The S&P/ASX 200 Index (ASX: XJO) gained 2.2% in April, with only one of the big four ASX 200 bank stocks outperforming those returns.

The best performing of the big four Aussie banks, and the only one to beat the benchmark was Commonwealth Bank of Australia (ASX: CBA). CBA shares closed on 30 April trading for $173.66, up 3.6% from the 31 March close.

ANZ Group Holdings Ltd (ASX: ANZ) shares also finished April in the green. ANZ shares rounded out April trading for $36.65 apiece, up 1.9% in the month just past.

Turning to the laggards, Westpac Banking Corp (ASX: WBC) slipped 2.5% in April to end the month at $38.50 each.

And National Australia Bank Ltd (ASX: NAB) trailed the pack. Shares in the ASX 200 bank stock closed April trading for $39.88 each down, down 3.8% for the month.

What moved the ASX 200 bank stocks in April?

There was no price sensitive news out from CBA in April. Yet Australia’s biggest bank outperformed despite a number of brokers reaffirming their concerns over CBA’s lofty valuation. Amid ongoing global uncertainty, investors may find some comfort from CBA’s market leading business.

There was also no fresh news out from ANZ, with the ASX 200 bank stock reporting its half-year results on 1 May.

Westpac did release a trading update on 14 April ahead of its half year results release, scheduled for 5 May.

Westpac shares closed down 2.6% on the day after detailing items that will impact those half-year results.

Investors were reaching for their sell buttons after Westpac revealed it expects to see a $75 million decline in its reported net profit after tax (NPAT). Profits will take a hit from transaction costs relating to the sale of Westpac’s RAMS mortgage portfolio.

Management expects the sale to be completed in the second half of 2026.

On the positive side of the ledger, Westpac reported lending growth of 4% and deposit growth of 3% for the half.

Investors also heard from NAB in the month just past

What about NAB shares?

On 20 April, the ASX 200 bank stock released an operational update ahead of its own half-year results release, scheduled for 4 May.

NAB shares closed down 3.6% on the day after management said that increased market volatility, driven by the conflict in the Middle East, has seen the big four bank review its credit provisioning and capital settings.

Noting that Australia’s agriculture, transport, and manufacturing sectors are being particularly impacted, NAB reported it will book a $706 million credit impairment charge for H1 2026.

The post What happened with ASX 200 banks stocks NAB and CBA in April? appeared first on The Motley Fool Australia.

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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.