Tag: Stock pick

Your 50s are a critical point when you need to start fine-tuning your retirement strategy. You need to focus your attention to paying off debts, paying off your mortgage, and maximising your superannuation.

By age 60 you need to have a plan in place. Perhaps you want to retire in a few years time? Or perhaps you’re happy to work (even just part-time) into your 70s?

Here’s a breakdown of how much superannuation the average Aussie has saved by age 50, 60 and 70. 

And then a breakdown of how much you actually need at each of those ages to be able to live a comfortable retirement lifestyle. Because the numbers aren’t the same.

What is the average superannuation balance at age 50?

According to data from the Association of Superannuation Funds (ASFA), the average superannuation balance for a 50 to 54 year old male is $254.071, and for a female it’s $190,175.

What is the average superannuation balance at age 60?

For the 60 to 64 year olds, the average superannuation balance is $395,852 for men and $313,360 for women.

What is the average superannuation balance at age 70?

For 70 to 74 year olds, the average superannuation balance is $501,785 for men and $449,540 for women.

How do those figures compare to what I actually need at age 50, 60 and 70?

Even if you’re on track with the average Australian and their superannuation balance, it doesn’t necessarily mean you have enough to live a comfortable retirement when the time comes. 

The problem is that compulsory employer superannuation contributions aren’t enough. 

The Super Guarantee helps Aussies build savings for retirement, but it will never be able to fund the lifestyle that they want. This is especially the case while the cost of living continues to accelerate.

At the same time, many Australians think that because their superannuation is invested in a diversified portfolio, which is often benchmarked to broad market indices like the S&P/ASX 200 Index (ASX: XJO), it’ll look after itself.

According to ASFA data, a comfortable retirement is expected to cost approximately $54,840 per year for individuals and $77,375 per year for couples.

That lifestyle requires a superannuation balance of around $630,000 for a single person, or $730,000 for a couple.

In order to reach that figure, you’d need a balance of $313,500 at age 50.

And then by age 60 your balance would need to increase to $496,500.

By your late 60s to early-70s, you need to be at or close to your superannuation goal of $630,000 to $730,000 (for a couple) if you want to retire comfortably.

The post Average superannuation balances at age 50, 60 and 70, versus what you actually need appeared first on The Motley Fool Australia.

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• Greatland Resources delivers major resource upgrade at Telfer
• 5 things to watch on the ASX 200 on Monday
• ASX 200 mining shares rebound after March sell-off creates opportunities
• The average Australian superannuation balance in 2026: 55 vs 65 year olds

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

I think it is fair to say that periods of market volatility can be unsettling, but they also tend to create opportunities for long-term investors.

The recent selloff has hit growth sectors particularly hard, with technology and global equities seeing sharp declines.

While the short-term outlook may remain uncertain, history suggests that buying quality assets during periods of weakness can be a smart move for patient investors.

For those looking to take advantage, here are three ASX exchange traded funds (ETFs) to consider buying after the pullback.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

The Nasdaq 100 has been one of the biggest casualties of the recent selloff, as investors reassess valuations and growth expectations.

While this is disappointing given the popularity of the fund, it could be an opportunity to buy some of the most powerful companies in the world at a more attractive price. Its holdings include iPhone and MacBook maker Apple (NASDAQ: AAPL), software giant Microsoft (NASDAQ: MSFT), artificial intelligence (AI) chip leader Nvidia (NASDAQ: NVDA), and electric vehicle giant Tesla (NASDAQ: TSLA).

While sentiment could remain weak in the very near term, there’s no doubting that the future of these high-quality companies is very bright.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

For investors wanting broad diversification, the Vanguard MSCI Index International Shares ETF could be the one.

It offers exposure to over one thousand companies across developed markets. Its top holdings include Amazon (NASDAQ: AMZN), LVMH (FRA: MOH), and Alphabet (NASDAQ: GOOG).

Rather than focusing on a single theme, this ETF spreads risk across multiple sectors and regions, including healthcare, financials, and consumer goods.

Following the recent pullback in global equities, now could be a good time to snap up the Vanguard MSCI Index International Shares ETF and gain diversified exposure to high-quality international companies at more reasonable valuations.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Cybersecurity is another area that has seen heightened volatility this year.

The BetaShares Global Cybersecurity ETF provides investors with exposure to companies that are keeping us and our data safe on the internet. This includes the likes of CrowdStrike (NASDAQ: CRWD), Palo Alto Networks (NASDAQ: PANW), and Fortinet (NASDAQ: FTNT).

As more businesses move online and digital infrastructure becomes more critical, the need for cybersecurity is only expected to grow. This bodes well for the fund’s holdings.

Overall, recent weakness could have created a compelling opportunity for investors looking to buy into a long-term growth theme after the selloff.

The post 3 brilliant ASX ETFs to buy after the market selloff appeared first on The Motley Fool Australia.

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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 Alphabet, Amazon, Apple, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, CrowdStrike, Fortinet, Microsoft, Nvidia, and Tesla and is short shares of Apple and BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lvmh Moët Hennessy – Louis Vuitton, Société Européenne and Palo Alto Networks. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, CrowdStrike, 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 tech stocks have taken a serious hit over the past six months — and investors have clearly been in risk-off mode.

Shares in WiseTech Global Ltd (ASX: WTC) have plunged 59%, while NextDC Ltd (ASX: NXT) is down around 34%. That’s a sharp pullback for a sector that once led the market higher.

But this sell-off may have opened the door for savvy investors. With ongoing Middle East conflict, elevated interest rates, and rising concerns about AI disruption, many have rotated into defensive shares. In the process, ASX tech stocks are now shaping up as one of the most undervalued areas of the market — and potentially one of the most exciting.

So, could now be the time to put $5,000 to work? Two names that stand out right now are WiseTech Global and NextDC.

Wisetech: Dominant in global logistics

Starting with WiseTech, the ASX stock remains a dominant force in global logistics software. Its CargoWise platform is deeply embedded in international supply chains, giving it strong pricing power and high switching costs — the kind of competitive advantages investors love.

The long-term growth story also looks compelling, with global trade continuing to digitise. Of course, there are risks. The company has faced concerns around growth momentum and execution, particularly as it expands via acquisitions.

And like many ASX tech stocks, it has been caught in the crossfire of higher interest rates compressing valuations.

But analysts remain optimistic. Citi, for example, has a $65.35 price target on WiseTech shares — roughly 70% above current levels — suggesting the recent sell-off could be overdone.

NextDC: In the centre of digital boom

Turning to NextDC, this $7 billion ASX tech stock is right at the centre of Australia’s digital infrastructure boom.

As demand for cloud services, AI computing, and data storage continues to surge, its data centres are becoming increasingly essential. The business also benefits from long-term contracts and recurring revenue streams, which provide a solid base for future growth.

Still, it’s not without challenges. Data centres require heavy capital investment, and expansion can weigh on near-term earnings. Funding conditions and competition are also factors to watch.

Even so, brokers are upbeat. Morgans is firmly in the bullish camp, with a buy rating and a $20.50 price target on the ASX tech share. That points to a 79% upside over the next 12 months.

Foolish Takeaway

ASX tech stocks may be out of favour today, but that’s often when the biggest opportunities emerge.

WiseTech and NextDC are trading well below recent highs and are both backed by strong long-term tailwinds. They could be worth considering if you’re looking to invest $5,000 in the current market.

The post Got $5,000 to invest? Here are 2 ASX tech stocks to buy today appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. 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 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.

It’s interesting when one expert rates an ASX share as a buy. But, it’s very intriguing when multiple analysts have a buy rating on that business.

A lot has happened in the last few weeks as a result of the Middle East events, one of which is ASX share market valuations taking a hit.

When share prices fall, it’s a good idea to look for opportunities that could deliver market-beating returns over the long-term. With that in mind, let’s look at two of the most well-liked ASX shares by analysts.

Life360 Inc (ASX: 360)

Life360 describes itself as a family connection and safety company, keeping people close to people, pets and things they care about most, with a range of services, including location sharing, safe driver reports, and crash detection with emergency dispatch.

Impressively, the business serves approximately 95.8 million monthly active users (MAU) across more than 180 countries.

According to CMC Invest, there are currently seven buy ratings on the ASX share, with an average price target of $32.80. That implies a possible rise of around 70% over the next year.

The company is growing at a very pleasing pace – compounding is a powerful financial force.

Life360 reported that in the fourth quarter of 2025, revenue increased 26% year-over-year to $146 million, while annualised monthly revenue (AMR) rose 30% to $478 million.

Those excellent levels of growth were partly driven by the fact that total MAU grew 20% year-over-year, with global paying circles increasing 26% to 2.8 million.

The paying circle growth is being driven by both the US (with 23% growth to 2 million) and internationally (with 32% growth to 0.8 million).

The company is also increasing prices, which is helping drive the average revenue per paying circle (ARPPC) – this increased by 6% year-over-year to $139.54.

Most importantly, the revenue growth is turning into rising profit, which is the key driver of increasing the intrinsic value of a business. In the 2025 fourth quarter, adjusted operating profit (EBITDA) grew 53% to $32.4 million.

Sigma Healthcare Ltd (ASX: SIG)

The company has multiple brands – Chemist Warehouse, Amcal and Discount Drug Stores. It supports Australia’s largest retail network of franchised pharmacies, with more than 880 franchised pharmacies.

According to CMC Invest, there are currently six buy ratings on the business. The average price target on the ASX share is $3.25, suggesting a possible rise of 24% over the next year.

Going forward, Chemist Warehouse will be the key earnings driver of the business due to its scale and growth plans.

In the FY26 half-year result, the company’s revenue grew by 14.9% to $5.5 billion, normalised operating profit (EBIT) grew 18.7% to $582.9 million and normalised net profit jumped 19.2% to $392 million.

Those numbers were largely driven by Australian Chemist Warehouse-branded stores, with sales growth of 17.2%.

In the first half of FY26, it reached 550 Australian Chemist Warehouse stores and 97 international Chemist Warehouse stores, this represented an increase from 537 Australian locations and 86 international locations at the end of FY25. Currently, international growth is focused in New Zealand and Ireland.

Through a combination of strong comparable store sales, ongoing store network expansion in Australia and overseas, and rising profit margins, it seems the ASX share is on track for a very compelling future.

According to the forecast on CMC Invest, the Sigma Healthcare share price is valued at 29x FY28’s estimated earnings.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

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• Why this top fundie is tipping Life360 shares for outsized gains

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 Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Greatland Resources Ltd  (ASX: GGP) share price is in focus today as the company reported a 150% increase in Telfer’s gold Mineral Resources to 8.0 million ounces, with combined Telfer and Havieron resources now totalling 14.9 million ounces of gold and 645 thousand tonnes of copper.

What did Greatland Resources report?

• Telfer Mineral Resource Estimate (MRE) rose by 4.8Moz to 8.0Moz (+150%) at a discovery cost of $5/oz
• Measured and Indicated Resource at Telfer up 163% to 3.8Moz gold
• Combined Telfer and Havieron resources now total 14.9Moz gold and 645kt copper
• Maiden West Dome Underground resource of 0.6Moz gold, with scope for further growth
• West Dome Open Pit resource increased 135% to 4.9Moz gold
• Record drilling campaign of 134,000m incorporated, with >100,000m more planned for H2 FY26

What else do investors need to know?

Greatland’s updated December 2025 Group Mineral Resource Estimate reflects a period of accelerated growth following significant new drilling since its last update. The company continued to advance the Telfer operation, supported by a strong drilling pipeline and the addition of high-grade underground resources.

The upgraded Measured and Indicated Resources boost Greatland’s ability to move more material into future ore reserve estimates, providing greater confidence in mine planning. Cost and revenue assumptions were updated using 2025 actuals and conservative metal price assumptions, indicating a robust economic base.

What did Greatland Resources management say?

Managing Director Shaun Day said:

Telfer and Havieron’s combined resource of 550Mt @ 0.84g/t Au & 0.12% Cu for 14.9Moz Au & 645Kt Cu has the potential to underpin a multi-decade, world class mining hub. Our investment in significantly increased drilling has delivered substantial organic growth, with the overall Telfer resource growing by 150% to 8.0Moz, and the higher confidence Measured and Indicated component by 163% to 3.8Moz.

What’s next for Greatland Resources?

With substantial increases in both the total resource and confidence classification, Greatland now plans to update the Telfer Ore Reserve Estimate in the June 2026 quarter. The focus will shift to advancing higher-grade zones, such as the West Dome Underground and Main Dome sub-level cave.

An ongoing record drilling program is set to continue through the second half of FY26 into FY27, aiming to further grow and upgrade resources for potential development and long-term operation.

Greatland Resources share price snapshot

Over the past 12 months, Greatland Resources shares have risen 34%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

View Original Announcement

The post Greatland Resources delivers major resource upgrade at Telfer appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The ASX dividend stock Centuria Industrial REIT (ASX: CIP) is one of the leading opportunities for passive income on the ASX right now, in my view. It’s down close to 20% from its 52-week high, as the chart below shows.

It makes sense why a real estate investment trust (REIT) would fall at a time like this. Higher oil prices are expected to lead to higher inflation and require higher interest rates.

Higher interest rates could mean higher costing debt and a headwind for property prices.

But, I expect that interest rates to lower again in the future (as occurred in 2022). The timing is less clear – we’ll just have to see how long it takes for inflation to return to the Reserve Bank of Australia (RBA) target range.

At this lower price, I think the ASX dividend stock is a great long-term buy for a few reasons.

Stronger dividend yield

I get excited when share prices go down because it usually means a better dividend yield for investors.

For example, if a business has a distribution yield of 5% and the share price falls 10%, the yield becomes 5.5%.

As I mentioned earlier, the Centuria Industrial REIT unit price has declined by around 20% since its 52-week high towards the end of last year.

It’s expecting to grow its FY26 annual distribution by 3% to 16.8 cents per unit. At the time of writing, that translates into a distribution yield of 5.75%. It’s possible that the yield could go even higher in the coming days or weeks, but I think this is a great yield to take advantage of today.

Cheaper valuation

I like getting a better yield, but I also like buying at a cheaper price because it means buying the underlying properties at a cheaper valuation. These conditions likely to deliver better to capital growth over time.

It’s hard to know exactly how much the property portfolio is worth without the business selling all of its real estate, which it obviously isn’t going to do.

But, the business provides a net tangible asset (NTA) figure every six months. This gives investors a reading on its underlying overall value.

At 31 December 2025, the ASX dividend stock reported that it had a NTA of $3.95. At the time of writing, it’s trading at 26% discount to the figure.

Excellent rental demand tailwinds

One of the main reasons to like this business (particularly at the lower valuation) is the attractive rental growth that it’s generating, which can justify an increase in real estate prices over time.

Industrial land is increasingly in demand because of a number of tailwinds including a growing population, increased e-commerce adoption, fresh food and pharmaceutical demand (with refrigerated facilities), increasing data centre demand, onshoring of supply chains and a limited supply of new industrial facilities.

It’s the strong growth of rent in recent years that has led to the ASX dividend stock saying that its portfolio is 20% under-rented. In other words, when its properties come up for renewal, it could lead to a significant boost in the rental income.

The business is already experiencing that effect – in the FY26 first half, it reported like-for-like net operating income (NOI) of 5.1%. It’s expecting its net rental profit per unit to increase by up to 6% in FY26. That’s a great sign for the long-term, in my view.

The post 1 ASX dividend stock down 18% I’d buy right now! 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.

Given the potential returns on offer with small-cap ASX shares, it really can pay to have some exposure to this side of the market in a balanced portfolio.

But which small caps could be worth considering if your risk tolerance allows for it?

Well, listed below are three that Morgans recently rated as buys and is tipping to rise strongly from current levels. Here’s what you need to know about them:

Airtasker Ltd (ASX: ART)

This small job listings company could be a small-cap ASX share to buy according to the broker.

It currently has a buy rating and 51 cents price target on its shares. This is more than double its current share price of 23 cents. It said:

It was a resilient 1H26 result for Airtasker, delivering ~13.5% group revenue growth to ~A$29m. Its established marketplaces saw EBITDA growth of ~11% to ~A$15m. Domestic metrics appear sound (e.g. uptick in booked tasks and brand salience), and we remain pleased with the momentum seen in ART’s offshore marketplace build-out (UK/US revenue +85% and 380% on the pcp respectively).

We make minor adjustments to our topline forecasts (details below), we also include the additional $5m cash marketing costs into our 2H numbers along with the recent capital raise. Our price target is lowered to A$0.51. Buy maintained.

Meeka Metals Ltd (ASX: MEK)

Another small-cap ASX share that has caught the eye of Morgans is gold miner Meeka Metals.

Morgans was pleased with management’s production growth plans and is expecting a “step-change in output” in the fourth quarter.

As a result, it has put a buy rating and 39 cents price target on its shares. This is also more than double its current share price of 17 cents. It said:

MEK announced an expansion to 800ktpa (equivalent ounce basis) via ore sorting, requiring modest capex of A$6m with commissioning scheduled for Q1FY27. Ore sorting effectively near doubles Andy Well underground head grade, lifting our annual production forecasts by an average of 7% from FY27 onwards. Open Pit throughput has tracked below DFS forecasts due to moisture-driven variability in open pit ore, an issue expected to resolve with underground stope commencement in 4QFY26.

We revise our FY26 production forecast to 37.6koz Au (from 40.2koz), this is below the DFS guidance. We maintain our BUY rating and A$0.39ps price target, acknowledging near-term production softness may weigh on the 3Q result ahead of an anticipated step-change in output in 4Q.

Readytech Holdings Ltd (ASX: RDY)

A final small-cap ASX share that Morgans rates highly is enterprise software provider Readytech.

Although it has downgraded its earnings estimates to reflect its revised guidance, the broker remains positive. This is due to its robust pipeline and potential near-term catalysts.

Morgans has a speculative buy rating and $2.20 price target on its shares. This implies potential upside of 85% for investors over the next 12 months. It said:

RDY’s 1H26 result and revised outlook came in softer than expected, with Underlying EBITDA of $17.5m / Cash EBITDA of $7.5m ~6% behind MorgF. Whilst RDY’s enterprise strategy remains on track, the group indicated that increased churn in 1H26 along with more protracted implementation/sale conversion have led to an FY26 guidance downgrade and the withdrawal of its longer-term targets.

Whilst we downgrade our FY26-27 EBITDA forecasts by 10-20% reflecting revised guidance, given RDY’s robust pipeline, potential catalysts (VIC TAFE decision and likely increased corporate appeal), we move to a SPECULATIVE BUY rating, with a revised price target of $2.20/sh (previously $3.00/sh).

The post Morgans says these small-cap ASX shares could rise 85%+ appeared first on The Motley Fool Australia.

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

The Wesfarmers Ltd (ASX: WES) share price has taken a dive in recent weeks. It has declined around 20%, as the chart below shows.

I’m not sure if Warren Buffett has heard of Wesfarmers, but I’m sure most Aussies have heard of some of its main profit generators including Bunnings, Kmart, Officeworks and Priceline.

Wesfarmers owns other businesses such as Target, healthcare businesses (such as InstantScripts) and WesCEF (chemicals, energy and fertiliser), which includes lithium mining.

Warren Buffett hasn’t told me whether he’d invest in Wesfarmers shares or not. But, I think there are a few aspects that make me believe it could be attractive to the legendary investor from Omaha.

Good return on equity

There are a variety of ways to judge the quality of a business, such as how fast its earnings are growing, the strength of its competitive advantages (economic moat) and how high its return on equity (ROE) is.

For me, the ROE is a very powerful profitability metric because it tells investors how much profit a business is making compared to how much shareholder money is retained within the business.

I think Warren Buffett would want to see that the business makes a good ROE, and it could continue improving even further into the future.

Wesfarmers reported that for the first six months of FY26, its ROE (excluding significant items) improved 150 basis points (1.50%) to 32.7%.

Wonderful company

I’d view the business as one of the highest-quality businesses on the ASX because of the great market position and brand recognition of Bunnings and Kmart.

I think these businesses are likely to keep increasing profits as they grow their store networks, expand their product ranges, increase online sales and benefit from improving scale benefits.

As an example of how wonderful these businesses are, in HY26 Bunnings Group achieved a return on capital (ROC) of 70.8% and Kmart Group delivered a ROC of 69.8%.

As Warren Buffett once said, he’d rather buy a wonderful company at a fair price than a fair company at a wonderful price.

According to the forecast on CMC Invest, the business is trading at 29x FY26’s estimated earnings, at the time of writing. I’d call that a fair price for a wonderful company.

Compounding profit growth

One of the main reasons why I’d be happy to invest today – aside from the recent decline of the Wesfarmers share price – is the fact the company has a track record of delivering underlying profit growth most years.

Analysts are expecting net profit to continue growing in the next few years, which I think would be appealing to Warren Buffett.

According to the projection on CMC Invest, Wesfarmers is expected to see its earnings per share (EPS) climb to $2.52 in 2026, $2.80 in 2027 and $3.00 in FY28.

If Wesfarmers can grow its earnings by approximately 19% between FY26 and FY28, then this could be a very useful tailwind for the Wesfarmers share price in the longer-term.

The post Would Warren Buffett buy Wesfarmers shares? 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 positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I’m a big fan of ASX dividend shares. They can deliver real cash returns to our bank account each year, with some being pillars of stability.

I think the best ASX dividend shares are ones that can provide a good dividend yield upfront, while also delivering payout growth and capital growth.

Last week I decided to take advantage of the lower share prices and invest in the ASX dividend share WCM Global Growth Ltd (ASX: WQG). It’s a listed investment company (LIC) that I think offers a number of appealing aspects.

Yield

Passive income investors probably want to know about the dividend yield, so let’s start there.

I like the LIC structure for dividends because of how it’s up to the board of directors to decide on the level of the payout, assuming the company has the profit reserve to do so.

WCM Global growth has already issued dividend guidance for the year ahead. The next four quarterly dividends to be declared is expected to come to 9.3 cents per share, which equates to a grossed-up dividend yield of 8%, including franking credits, at the time of writing.

There are few LICs on the ASX that offer a yield that large and are delivering good payout growth.

Growth

The job of a LIC is to make investment returns for shareholders. With those investment profits, the ASX dividend share can deliver passive income.

It invests in a global portfolio of between 20 to 40 shares which are viewed as high-quality businesses with competitive advantages (economic moats) that are getting stronger.

Additionally, the fund manager looks for corporate cultures that are fostering those improving competitive advantages.

Since the LIC’s inception in June 2017, it has delivered an average net return per year of 15.8% per year, outperforming the global share market return by an average of 2.7% per year.

That level of return is enough for the ASX dividend share to pay a large and growing dividend, while still delivering growth of the portfolio value over time.

Good value ASX dividend share

The final aspect of why I thought (and think) this was a good time to invest in the ASX dividend share was because it’s trading at a cheaper price than its underlying value.

LICs regularly tell the market what the underlying value is with the net tangible assets (NTA) figure.

At the time of writing WCM Global Growth is trading at a 11% discount to the latest weekly NTA figure. That size of a discount is appealing, particularly when you consider how good the investment returns have been with the portfolio.

Additionally, I’m taking advantage of the dividend re-investment plan (DRP) to acquire shares at a slight discount.

The post Why I just made this great ASX dividend share my latest buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Wcm Global Growth. 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.

There are a number of great ASX-listed exchange-traded funds (ETFs) available to Aussies. I’m looking for investments that could outperform the S&P/ASX 200 Index (ASX: XJO).

The VanEck MSCI International Small Cos Quality ETF (ASX: QSML) is one investment that I think could deliver strong returns over the long-term.

I’m bullish about the ASX ETF for a number of reasons. Let’s get into what makes it an effective investment today.

Better valuation

When it comes to investing in growing businesses, I think it’s a great time to invest when there’s a dip (or worse) in share prices.

As legendary investor Warren Buffett once said:

Be fearful when others are greedy and greedy when others are fearful.

In other words, it’s great to load up on shares when prices are lower and the market has lost confidence (temporarily).

High-quality holdings

This ASX ETF invests in a portfolio of 150 international developed-market small-cap quality growth shares.

The idea is that the portfolio contains some of the world’s highest-quality companies which are based on three key fundamentals.

The first fundamental is they must have a high return on equity (ROE). That means the business makes a high level of profit for how much shareholder money is retained in the business. It also suggests that future retained earnings could earn a high level of return, which is a good tailwind for future share price growth.

Second, the businesses must have a high level of earnings stability. In my view, if profit isn’t going backwards then it means it’s rising. That’s another tailwind for share price growth, as well as potentially being a relatively safe harbour during volatile times.

Third, the businesses should have lower financial leverage. This means they have very healthy balance sheets.  

Great long-term returns

When you add all of those elements together, it’s no wonder that the QSML ETF has performed strongly over time.

Past performance is not a guarantee of future performance of course, but I think the businesses inside this portfolio are some of the most compelling businesses that investors could want to own in the global share market.

Over the past 10 years, the index that this ASX ETF follows has returned an average per year of 14%, outperforming the overall small-cap global share market by an average of around 2.7% per year.

I think if any ASX ETF can return by more than 10% per year over the long-term, that means it’s a great long-term investment.

Good diversification

It’s important to note that the returns this ASX ETF generates is from more than just a few large US-based technology businesses.

Aside from the US, there are numerous countries that have a weighting of at least 0.5%: the UK, Japan, Canada, Switzerland, Sweden, Thailand, Israel, Denmark, France, Mexico, Finland and Austria.

On the sector side of things, there are five sectors that have a weighting of at least 7.5%: industrials (41.5%), financials (17%), IT (11.8%), consumer discretionary (8.6%) and healthcare (7.6%).

The post It looks like a great time to buy this top ASX ETF! 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.