Tag: Stock pick

I think exchange-traded funds (ETFs) are one of the most useful financial innovations of the past decade.

They offer an efficient way to access entire markets and regions in a single trade, without needing to constantly monitor individual company news. This means they can be a powerful way to compound wealth over time.

Right now, a few Vanguard ETFs stand out to me as particularly compelling long-term buys.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

If I had to choose one ETF to anchor a portfolio, the Vanguard MSCI Index International Shares ETF would be high on my list.

It gives exposure to around 1,300 stocks across developed markets, excluding Australia. That means access to sectors that are underrepresented on the ASX, particularly global technology and healthcare.

Its top holdings include global leaders such as Apple, Microsoft, NVIDIA, and Amazon. These companies dominate their industries and generate enormous cash flows. But what I really like is that the VGS ETF spreads risk well beyond the mega caps, with exposure across the US, Japan, the UK, Europe, and Canada.

Over the long term, I believe global diversification is essential. Australia represents only a small portion of global economic output. This ETF allows investors to participate in the broader world economy in a simple, low-cost way.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

If I want to complement developed market exposure, the Vanguard FTSE Asia Ex-Japan Shares Index ETF is a natural addition.

This ETF focuses on Asian markets excluding Japan, with significant allocations to China, Taiwan, India, and South Korea. These regions are home to some of the fastest-growing economies and most dynamic companies in the world.

Major holdings include Taiwan Semiconductor Manufacturing Co, Tencent, Samsung Electronics, and Alibaba. That means exposure to semiconductor manufacturing, digital platforms, consumer growth, and financial expansion across emerging and developed Asian markets.

I like the VAE ETF because it gives targeted exposure to long-term structural growth drivers such as rising middle-classes, technology manufacturing, and regional trade integration. It also reduces reliance on the US, adding geographic balance to a portfolio.

Vanguard Australian Shares Index ETF (ASX: VAS)

While global exposure is critical, I still believe Australian shares deserve a core allocation.

The Vanguard Australian Shares Index ETF tracks the S&P/ASX 300 Index and provides broad exposure to the local market. That includes the major banks, large miners, healthcare leaders, and industrial businesses.

One of the attractions here is income. Australian stocks tend to pay relatively strong dividends, often with franking credits attached. For investors who value passive income alongside growth, that can be a meaningful advantage.

The VAS ETF also removes the need to decide which individual bank or resource company will outperform. You simply own the broader market at low cost.

Foolish takeaway

I regularly invest in individual ASX shares, but I also see enormous value in simple, diversified ETFs.

The VGS ETF for developed market exposure, the VAE ETF for Asian growth, and the VAS ETF for Australian income and stability together create a well-balanced foundation. For long-term investors, that combination looks very compelling to me right now.

The post I think these Vanguard ETFs are standout buys today appeared first on The Motley Fool Australia.

More reading

• How to build an ASX share portfolio you can stick with long term
• 3 ASX ETFs to buy with $30,000 in February
• 5 ASX ETFs for new investors to buy and hold
• What happens if you invest $10,000 in ASX shares and leave it alone for 20 years?
• 2 Vanguard ETFs to buy and hold forever

Motley Fool contributor Grace Alvino has positions in Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, and Tencent. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group. The Motley Fool Australia has recommended Amazon, Apple, Microsoft, 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.

ASX industrials stock Ventia Services Group Ltd (ASX: VNT) has been charging ahead over the last 12 months. 

The company is a leading infrastructure maintenance services provider in Australia and New Zealand. Its capabilities span the full asset lifecycle including operations and maintenance, facilities management, minor capital works, environmental services, and other solutions.

In the last year, its share price has risen almost 33%.

For context, the S&P/ASX 200 Industrials (ASX: XNJ) index is up 6.8% in that same span. 

Its rise has been driven by key contract wins and positive sentiment in defence shares over the past year. 

However, the stock has had a slower start to 2026, down 5.3% year to date, which could be an opportunity for investors to gain exposure at an attractive price.

The company released its FY25 result last week. 

Here is what the company reported. 

Record order book

Last Thursday, this ASX industrials stock reported:

• Revenue: $6.1 billion, up 0.6% from FY24
• NPATA: $257.6 million, up 13.0%
• EBITDA: $532.1 million, up 6.6% (margin of 8.7%)
• Work in Hand: $22.1 billion, up 14.4%
• Operating cash flow conversion: 93.6%, up 2.2pp
• Final dividend: 12.54 cps, 90% franked (full year: 23.25 cps)

Its share price shot 5% higher on Thursday following the results, before retreating slightly on Friday. 

Updated outlook

Following the result, the team at Morgans provided fresh guidance on this ASX industrials stock. 

It said the company reported an in-line FY25 with NPATA +13% YoY as revenue growth faded to just +1%. 

We find it noteworthy that VNT, a headcount business, was able to deliver earnings growth almost entirely through margin expansion. Indeed, FY25 was the first period when revenue costs growth and operating costs growth decoupled materially.

Morgans said while the company sounded a confident tone around continued margin expansion, this may be difficult to replicate following a heavy re-contracting cycle, which would ordinarily see margin pressure. 

The broker highlighted the bright spot from earnings results was a record order book of $22.1bn (+14% YoY). 

Morgans increases price target 

Based on this guidance, the team at Morgans increased its share price target to $5.85. 

From yesterday’s closing price of $5.69, this indicates an upside of 2.81%. 

However, Morgans isn’t the only broker with a positive view of this ASX industrials stock. 

Earlier this month, UBS placed a buy recommendation and share price target of $6.23 on Ventia Services Group shares. 

That indicates an upside of 9.49%. 

UBS believes that rising infrastructure investment is creating an expanding market opportunity for the company. 

Together with ongoing balance sheet deleveraging, this supports its expectation that earnings per share could increase at a compound annual growth rate of 9% over the next three years.

The post Should you buy the dip on this growing ASX industrials stock? appeared first on The Motley Fool Australia.

More reading

• Ventia Services Group posts FY25 result: NPATA up, record Work in Hand
• Ventia extends NZ$160m Transpower contract: What it means for investors
• Ventia scores $107m defence contract boost: What investors need to know
• Brokers rate these 3 top ASX shares as buys for February

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.

Uranium is back in the global energy mix and ASX uranium stocks certainly have taken advantage.

Over the past 12 months, Paladin Energy Ltd (ASX: PDN) and Nexgen Energy Ltd (ASX: NXG) shares have surged 77% and 89% respectively.

Investors are once again asking: which ASX uranium stock offers the most upside from here?

Paladin Energy

This ASX uranium stock is the here-and-now story. The company has restarted its Langer Heinrich mine in Namibia and is ramping production into a strengthening price environment.

On Friday the ASX uranium stock confirmed in a release that it has received Ministerial approval for its Environmental Impact Statement (EIS) for the PLS Project in Saskatchewan, Canada.

The EIS approval is required before the company can secure provincial permits and licences needed for construction and operation. Management of the ASX uranium stock described the decision as an important step forward for the project.

That matters. Paladin is not pitching a feasibility study or a distant dream. It is shipping pounds into a tightening market. If uranium prices stay elevated or push higher, revenue flows directly through the business. Operating leverage is real and immediate.

There is risk, of course. Ramp-ups can disappoint, operational hiccups can sting, and uranium prices remain volatile. Paladin has also carried a complicated history of capital raises and strategic shifts.

But for investors who want exposure to uranium’s resurgence without waiting years for first production, Paladin offers torque today.

Bell Potter has just retained their buy rating. The broker has a 12-month price target of $15.30 on this ASX uranium stock, which suggest a 10% upside from current levels.

The team at Bell Potter was pleased with Paladin Energy’s half-year result, highlighting that revenue and costs were slightly better than expected. 

Nexgen Energy

This $11 billion ASX uranium stock sits at the opposite end of the spectrum. Its Rook I project in Canada’s Athabasca Basin is widely regarded as one of the most exciting undeveloped uranium deposits in the world.

The grades are exceptional. The scale is enormous. On paper, it could become a globally significant supplier. But it is still a development story. Permitting, financing and construction must all fall into place before production begins, and that is a multi-year journey.

That long runway cuts both ways. If uranium demand explodes and long-term contract prices keep climbing, Nexgen’s asset could be worth dramatically more by the time it enters production.

Investors today are effectively buying future optionality on a structurally tighter uranium market. But they are also accepting timeline risk, regulatory risk and the ever-present challenge of funding a large-scale build in a cyclical industry.

Bell Potter has a buy rating on this ASX mining stock. Last month, the broker raised its 12-month share price target for Nexgen to $19.30.

This suggests a near 10% potential upside at the time of writing.

Foolish Takeaway

Uranium’s momentum is building. The right pick comes down to your time horizon and appetite for risk.

If you expect uranium prices to stay firm in the near term and want direct leverage to cash flow, Paladin stands out.

If you’re backing a decade-long nuclear resurgence and can stomach volatility and delays, Nexgen offers higher risk — and potentially higher reward.

The post Which ASX uranium stock is the smarter buy: Nexgen Energy or Paladin Energy? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Paladin share price jumps after major Canadian project approval
• Paladin share price on ice pending major announcement
• Here are the top 10 ASX 200 shares today
• These two uranium stocks are worth a look, this broker says

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 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.

Whitehaven Coal Ltd (ASX: WHC) shares fell significantly last week after the company released half-year FY26 results. 

The softer result was largely due to lower coal prices, which weighed on earnings.

The company reported an average coal price of $189 per tonne, down 19%. 

It also reported a $69 million statutory profit for H1 FY26, with a fully franked interim dividend of 4 cents per share declared.

Whitehaven Coal shares fell 7.3% late last week following the release. 

Its share price is now down 18% since the start of February. 

Following the release, Bell Potter released updated guidance on Whitehaven Coal shares. 

Here’s what the broker had to say. 

QLD costs revised higher

Whitehaven Coal is a large Australian based coal producer. 

The company produces metallurgical coal (~50% of group production) from two assets located in the Queensland Bowen Basin (Blackwater and Daunia), and thermal coal (~50% of group production) from four assets located in the New South Wales Gunnedah Basin (Maules Creek, Narrabri, Tarrawonga and Vickery Early Mining).

Bell Potter said that Whitehaven has increased its expected average mining costs for FY24–FY28 at Blackwater and Daunia to about A$140–145 per tonne. 

That’s roughly $20–25 higher than what it expected when it bought the assets. The increase is mainly due to inflation and operational factors.

However, the company has identified ways to improve costs, such as:

• Better use of draglines at Blackwater
• Improved autonomous haulage system (AHS) productivity at Daunia

The broker also warned permanent cost impacts include higher labour (i.e. same job same pay laws) and demurrage costs.

EPS changes in this report are: -1% in FY26; -2% in FY27; and -3% in FY28.

Hold recommendation from Bell Potter

Based on this guidance, Bell Potter has upgraded its recommendation to a hold (previously sell). 

However, the broker has lowered its price target to $8.10 (previously $8.40). 

Yesterday, Whitehaven Coal shares closed at $7.81. 

Bell Potter’s updated price target indicates 3.7% upside. 

In the medium term, WHC are positioned to capitalise when coal markets sustainably improve with a diversified portfolio of assets in Queensland and New South Wales and strong organic growth optionality. We have a positive long term met coal outlook, driven by constrained supply and increased demand from steel producers reliant on seaborne met coal (i.e. India).

Elsewhere, Ord Minnett recently put a share price target of $9.90 on Whitehaven Coal shares.

It’s worth noting this target was released before the recent half-year earnings.

The post How does Bell Potter view Whitehaven Coal shares after its earnings result? appeared first on The Motley Fool Australia.

More reading

• Whitehaven shares tumble 5% after results. Here’s what investors need to know about its dividend
• Whitehaven Coal posts H1 FY26 profit, declares 4c dividend as guidance maintained
• Mining Mammoths: Are Whitehaven Coal, Rio Tinto or BHP shares a buy ahead of earnings results?
• Is there any more upside for Whitehaven Coal shares according to Ord Minnett?
• Here are the top 10 ASX 200 shares today

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.

If you’ve got $10,000 ready to invest and want to stick with established businesses, ASX 200 blue chip shares are a sensible place to start.

These companies tend to have strong balance sheets, recognisable brands, and proven business models. While no share is immune to volatility, blue chips often have the scale and resilience to navigate different economic environments.

Here are three ASX 200 names to consider for a $10,000 investment today.

Breville Group Ltd (ASX: BRG)

The first ASX 200 blue chip share to consider is Breville Group.

Breville has quietly transformed itself into a global premium appliance brand. While many investors still think of it as a domestic appliance company, the bulk of its growth now comes from overseas markets, particularly North America and Europe.

What stands out is its positioning at the higher end of the market. Rather than competing on price, Breville focuses on product innovation and design, especially in the coffee category. As at-home coffee culture continues to expand globally, Breville’s premium machines give it exposure to a lifestyle trend rather than just discretionary spending.

For investors seeking a blue chip with international growth potential, Breville offers a blend of brand strength and expanding global footprint. Morgans currently rates this blue chip as a buy with a $40.65 price target.

Goodman Group (ASX: GMG)

Another ASX 200 blue chip share worth considering is Goodman Group.

Goodman operates in industrial property and logistics, but its strategy goes far beyond owning warehouses. The company specialises in high-demand urban infill sites, positioning itself close to population centres and major transport infrastructure.

This location strategy supports tenants involved in e-commerce, supply chain optimisation, and increasingly, data centres. As digital infrastructure and automation expand, the need for well-located industrial property is unlikely to disappear.

Goodman’s development pipeline and global partnerships give it exposure to long-term structural trends rather than short-term property cycles alone.

Bell Potter is a fan and has a buy rating and $36.45 price target on its shares.

Woolworths Group Ltd (ASX: WOW)

A final ASX 200 blue chip share to consider is Woolworths.

Woolworths is deeply embedded in the daily lives of Australian consumers. Grocery spending may fluctuate slightly with economic conditions, but food remains a necessity.

Beyond supermarkets, Woolworths has been investing in supply chain technology and digital capabilities, strengthening its online and fulfilment networks. That ongoing evolution helps it defend market share and improve efficiency.

Overall, Woolworths offers steady cash generation and exposure to defensive consumer demand, making it a reliable counterbalance to more cyclical sectors.

Ord Minnett currently has a buy rating and $33.00 price target on the blue chip.

The post Where to invest $10,000 in ASX 200 blue chip shares today appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Goodman, Hub24, and Telstra shares
• Brokers name 3 ASX shares to buy today
• Why Goodman shares could be heading 20%+ higher
• Are these 3 popular ASX 200 stocks a buy, hold or sell ahead of earnings results next week?
• 3 ASX dividend shares with business models built for uncertain times

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

When a high-quality ASX growth stock falls 50%, investors face a choice.

Is it broken? Or is it simply out of favour?

One ASX growth stock that has suffered a brutal pullback over the past year is WiseTech Global Ltd (ASX: WTC). The logistics software giant is trading at $47.10, roughly half the level it was this time last year.

The big question now is whether this is a warning sign or an opportunity.

Why have WiseTech shares fallen?

The selloff hasn’t happened in a vacuum. Bell Potter highlights:

WiseTech has also had a large pullback in its share price but this has been more driven by company specific issues like slowing growth in the core business, management and board upheaval and insider trading allegations against CEO and founder Richard White.

The good news is that the broker believes that the ASX growth stock is now moving on from these issues. It adds:

These issues, however, are starting to subside and focus is returning to the outlook for the core business which is improving with the launch of new products, a new commercial model and the integration of a large acquisition (e2open). These initiatives are all expected to help drive a much stronger 2HFY26 result relative to 1HFY26 and then the first full year of benefits will be evident in FY27.

All in all, sentiment has been hit by governance noise and growth concerns. But Bell Potter believes the underlying business momentum could reassert itself.

Why its outlook could improve

WiseTech’s CargoWise platform remains deeply embedded in global supply chains. Switching costs are high, integration is complex, and the customer base includes many of the world’s largest logistics providers.

The integration of e2open expands WiseTech’s footprint further across the global trade ecosystem. If executed well, it could enhance product breadth and strengthen cross-selling opportunities. Bell Potter adds:

All of these changes/initiatives are not without risk and there is still some risk of a soft downgrade to revenue guidance in FY26 at the half year result but the 12-month outlook is positive in our view.

Major potential upside for this ASX growth stock

According to a recent note, Bell Potter has a buy rating and a $87.50 price target on WiseTech shares. Based on current share price of $47.10, this implies potential upside of 86% for investors over the next 12 months.

If this ASX growth stock can stabilise growth, execute on product launches, demonstrate progress with the e2open integration, and show that AI is not a threat, sentiment could shift quickly.

Overall, WiseTech’s share price collapse reflects uncertainty, not necessarily a broken business model. This could make it worth considering at current levels.

The post 1 ASX growth stock down 50% to buy right now appeared first on The Motley Fool Australia.

More reading

• ASX 200 tech shares lead market sectors with a 7% bounce back
• Are these 3 popular ASX 200 stocks a buy, hold or sell ahead of earnings results next week?
• 3 ASX ETFs to target if you anticipate a tech turnaround 
• 3 ASX growth shares that could rebound hard in 2026
• Why are ASX 200 tech shares down 43% in six months?

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

Long-term investing does not have to be complicated, especially when it comes to self-managed super funds (SMSFs).

Instead of trying to predict which individual company will outperform next year, many investors prefer to back broad themes and structural trends through exchange traded funds (ETFs). With the right mix, you can build an SMSF portfolio that evolves with the market.

Here are three different ASX ETFs to consider buying and holding for the long haul.

Vanguard Total Stock Market ETF (ASX: VTS)

The first ASX ETF to consider is the Vanguard Total Stock Market ETF.

Unlike funds that track just the largest stocks, this one provides exposure to the entire US share market. This includes mega-cap giants down to smaller growth businesses. That means investors are not just backing today’s leaders, but also tomorrow’s potential disruptors.

Over time, some of the strongest returns in the US market have come from stocks that started small and grew into household names. The Vanguard Total Stock Market ETF captures that full lifecycle.

For long-term investors who believe in the depth and dynamism of the US economy, this broad exposure can be a powerful core holding.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

Another ASX ETF that could be worth holding for years is the Betashares Global Cash Flow Kings ETF.

This fund focuses on stocks that are generating strong free cash flow. In simple terms, it tilts toward businesses that convert revenue into real, usable money after expenses and investment.

Cash flow matters. It supports dividends, share buybacks, debt reduction, and reinvestment into growth. Companies with strong cash generation often prove more resilient during economic slowdowns.

Rather than chasing hype, the Betashares Global Cash Flow Kings ETF leans into financial strength. That can make it a steady long-term complement to broader market exposure. It was recently recommended by analysts at Betashares.

VanEck China New Economy ETF (ASX: CNEW)

For investors willing to look beyond developed markets, the VanEck China New Economy ETF adds a different dimension.

It focuses on China’s new economy sectors. These are areas such as technology, healthcare, advanced manufacturing, and consumer upgrades. Instead of traditional state-owned enterprises, the ETF tilts toward businesses aligned with structural growth and rising domestic demand.

China remains one of the world’s largest economies, and its consumption patterns are evolving rapidly. While volatility can be higher, long-term structural exposure can enhance portfolio diversification. It was also recently recommended by analysts at Betashares.

The post 3 top ASX ETFs to buy and hold in an SMSF appeared first on The Motley Fool Australia.

More reading

• 5 ASX ETFs for new investors to buy and hold
• 3 exciting ASX ETFs to buy with $3,000 this month
• Why these ASX ETFs could be perfect for buy and hold investors
• 3 ASX ETFs to buy and hold for 25 years
• 3 super ASX ETFs to add to your SMSF

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.

Warren Buffett has shared countless investing insights over the decades.

But one simple rule stands above the rest: buy wonderful ASX shares at fair prices.

It sounds straightforward. Yet most investors do the opposite. They chase cheap ASX shares, trade frequently, or panic during market pullbacks. Buffett’s edge hasn’t come from complexity. It has come from discipline.

Here’s how that rule could transform an ASX share portfolio.

Focus on wonderful ASX shares, not cheap

Warren Buffett doesn’t look for the lowest price-to-earnings ratio in the market. He looks for sustainable competitive advantages.

On the ASX, that might include companies like ResMed Inc. (ASX: RMD), which operates in sleep disorder treatment with high barriers to entry. Or REA Group Ltd (ASX: REA), which dominates online property listings with powerful network effects.

These shares are rarely the cheapest on traditional valuation metrics. But their competitive positions allow them to grow earnings consistently over long periods.

Buffett would argue that paying a fair price for quality beats buying average businesses at bargain prices.

Think in decades, not quarters

Another part of Warren Buffett’s rule is time horizon.

If you buy a wonderful business, the intention should be to hold it. That long-term mindset changes behaviour. You become less concerned about short-term volatility and more focused on whether the company is strengthening its competitive position.

Take ResMed. Demand for sleep and respiratory care is supported by demographic trends that will likely persist for decades. Over a long horizon, those drivers matter far more than short-term share price swings.

Let compounding work quietly

The real power of Buffett’s rule lies in compounding.

When a business consistently reinvests profits at high returns on capital, earnings grow. When earnings grow, the share price tends to follow over time.

That’s how Berkshire Hathaway (NYSE: BRK.B) became one of the world’s most successful investment vehicles. Not through constant trading, but through owning great businesses and letting time amplify returns.

An ASX share portfolio built around high-quality compounders can operate the same way.

The transformation

Applying Buffett’s rule doesn’t require outlandish strategies.

It just means being selective. It means resisting the urge to constantly rotate. And it means prioritising business quality over short-term price movements.

Over time, that shift in mindset, from trading to owning, can be the difference between average returns and truly transformative wealth creation.

The post The Warren Buffett rule that could transform your ASX share portfolio appeared first on The Motley Fool Australia.

More reading

• Where to invest $10,000 in ASX 200 shares next week
• How to build an ASX share portfolio you can stick with long term
• Why these buy-rated ASX shares stand out to me
• What happens if you invest $10,000 in ASX shares and leave it alone for 20 years?
• Why this top fundie is doubling down on ASX 200 tech stocks like TechnologyOne and Xero shares

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

Owners of Telstra Group Ltd (ASX: TLS) shares can be happy with the FY26 first-half result considering the ASX telco share delivered investors a pleasing amount of profit and dividend growth.

For the six months to 31 December 2025, Telstra reported that total income grew 0.2% to $11.8 billion, operating profit (EBIT) climbed 9.2% to $2 billion and earnings per share (EPS) grew 11.2% to 9.9 cents.

The cash measure of profitability saw even stronger growth, with cash EBIT rising 14% to $2.5 billion and cash EPS climbing 19.7% to 14 cents.

The dividend payment was increased by 10.5% to 10.5 cents per share, though it wasn’t fully franked. Let’s take a look at where analysts think the payout could go from here.

FY26

After seeing the numbers, UBS said that the result continued to demonstrate the strength of its mobile division, which delivered 4% revenue and EBITDA growth. Cost control was another highlight for the business.

UBS said it remains “constructive on the growth outlook” for Telstra and is forecasting that cash EBIT can grow at a compound annual growth rate (CAGR) of 5% over the next four years, driven by capturing CPI inflation-linked mobile price rises and continued cost control through AI productivity savings. The broker expects this to support dividend growth in the years ahead.

The broker is expecting Telstra to deliver average revenue per user (ARPU) growth in FY26 and FY27, alongside “solid” subscriber net additions across postpaid, prepaid and wholesale users. This gave UBS “comfort on the sustainability of continued price rises across the various customer segments over the medium term.”

UBS also thinks Telstra’s profit margins can rise for the foreseeable future, with cost growth limited to a CAGR of 1.5% over the next four years. There are three reasons for that. First, up to 650 redundancies (1.5% of Telstra’s workforce) were indicated by Telstra. Second, the benefits of the consolidation of software and IT providers. Third, a joint venture with Accenture to help with costs and deliver faster product-to-market times.

The broker predicts Telstra’s EBITDA margin could expand by an average of 60 basis points between FY26 and FY30 with ongoing efficiencies as AI adoption increases.

UBS forecasts that the Telstra annual dividend per share could rise to 21 cents in FY26. That’d be a cash dividend yield of 4.1%, excluding any potential franking credits.

FY27

The payout is projected to increase in the 2027 financial year for owners of Telstra shares.

UBS suggests the ASX telco share could declare an annual dividend per share of 22 cents in the 2027 financial year.

FY28

The 2028 financial year could see yet another increased payout for investors.

UBS forecasts the business could decide on an annual dividend per share of 23 cents.

FY29

The 2029 financial year could see a big increase of the annual payout to 26 cents per share, according to the UBS forecast.

FY30

The 2030 financial year could see the biggest payout since FY17. UBS forecasts the business could pay an annual dividend per share of 29 cents. That’s a potential cash yield of 5.7%, excluding franking credits. It would also represent an increase of 38% between FY26 and FY30.

The post Here’s the dividend forecast out to 2030 for Telstra shares appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Goodman, Hub24, and Telstra shares
• 2 more ASX 200 blue chip stocks that increased dividends this week
• How to build an ASX share portfolio you can stick with long term
• These 2 ASX 200 blue-chip shares just raised their dividends
• Why isn’t the new Telstra dividend fully franked?

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.

Investments rarely fall by as much as the Zip Co Ltd (ASX: ZIP) share price did last week in a single day. After the buy now, pay later business reported its result, it dropped 34%!

The numbers weren’t quite as strong as some investors may have hoped, but broker UBS saw plenty of positives, and believes the ASX share could be a big opportunity at this price.

Let’s see why UBS thinks the Zip share price reaction “presents [an] attractive entry point as growth remains intact”.

Attractive time to buy

UBS acknowledged that the FY26 first-half result was a “slight miss” compared to analyst expectations, but the 34% decline seemed like “an overreaction” because US growth remains strong.

The market has seemingly focused on an increase in the net bad debts, but UBS suggested this was “not unexpected” because Zip is now focusing on customer growth in the region and it’s still within the comfort range of between 1.5% to 2%.

UBS said that it remains comfortable on the growth outlook for the company in the US as structural tailwinds continue and it sees “benefits longer term to net bad debts as Zip’s pay-in-8 volumes continue to season”.

Even so, after seeing the report, UBS decided to somewhat lower its projections between FY26 to FY28 due to lower customer additions in the US (to an average of 0.4 million per year from 0.45 million), an increase in net bad debts from 1.67% to 1.8%, and foreign currency headwinds from a stronger Australian dollar.

However, those negatives are somewhat offset, in UBS’ eyes, by stronger expected US total transaction value (TTV)/customer growth in the second half, improvements in interest cost tailwinds and general operating expenditure efficiencies.

It’s expecting Zip’s US TTV to grow by 38% in the second half of FY26, then grow 30% in FY27 and 22% in FY28. It thinks BNPL can gain more market share and focus on predominantly non-discretionary sectors that are more resilient through the economic cycle.

What is the Zip share price valuation?

UBS thinks the company could deliver an EPS compound annual growth rate (CAGR) of 30% for over the next three years. The broker thinks that’s attractive compared to other BNPL and banking peers considering the Zip share price is trading at around 15x FY27’s estimated earnings.

The broker has a price target of $4.50 on the buy now, pay later company. That suggests a possible one-year rise of around 140% from where it is at the time of writing.

The post This expert thinks the Zip share price is a buy and could rise 140%! appeared first on The Motley Fool Australia.

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