Tag: Stock pick

  • Lynas Rare Earths vs Mineral Resources: Which ASX mining stock shines?

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    Lynas Rare Earths vs Mineral Resources shares: Which mining stock has more upside?

    Investors looking at Australia’s mining sector might find themselves weighing Lynas Rare Earths Ltd (ASX: LYC) against Mineral Resources Ltd (ASX: MIN). Both are heavyweights with exposure to crucial elements for the green energy transition, but their businesses, financial metrics, and risk/reward profiles differ sharply. Here’s how these two ASX mining stocks stack up if you’re hunting for upside potential.

    The case for Lynas Rare Earths

    Lynas Rare Earths is a globally significant player in a highly specialised field—rare earth elements. As one of the few producers outside China, Lynas mines and processes rare earths primarily at its Mt Weld site in Western Australia and its Malaysian facilities. These critical materials are fundamental for tech like electric vehicles, wind turbines, and other green energy gear. As noted in its latest public snapshot, Lynas is also pushing forward with rare earths supply chain projects in the US, highlighting its growth ambitions and strategic value.

    Looking at Lynas’s fundamentals, a few points stand out:

    • Market cap: $14.48 billion, making it the larger of these two miners
    • P/E ratio: 66.50, signalling high expectations from the market
    • Year to date return: 17.93%, a solid gain for 2026 so far

    However, Lynas currently pays no dividend, so it’s a pure growth play at present.

    The case for Mineral Resources

    Mineral Resources offers something different—a diversified mining and mining services business with major exposure to iron ore and lithium. The company not only operates its own mines but also delivers end-to-end mining services across WA and beyond. Its strategy is to build scale and efficiencies, aiming to become a top-five lithium hydroxide producer while supplying iron ore to global markets. As per its company overview, Mineral Resources also has a vertically integrated battery manufacturing ambition, leveraging both resource extraction and downstream processing.

    Mineral Resources shows strong credentials on several financial fronts:

    • P/E ratio: 10.25, much lower than Lynas’s
    • Earnings per share (EPS): 5.338
    • Dividend yield: 1.52%, fully franked (100%), so investors get tax-effective income
    • Market cap: $10.76 billion
    • Year to date return: 2.19%

    The company’s dividend history is impressive, with a record of consistent, fully franked payouts spanning more than a decade—something income-focused investors might really value.

    Valuation comparison

    The numbers tell a story of two very differently positioned miners:

    Lynas Rare Earths Mineral Resources
    Market Cap $14.48b $10.76b
    P/E Ratio 66.50 10.25
    Earnings per Share 0.221 5.338
    Dividend Yield 0.00% 1.52% (100% franked)

    Lynas’s earnings multiple is more than six times that of Mineral Resources, which suggests the market is pricing in much higher growth or scarcity value for rare earths. Note: Lynas Rare Earths’ reported P/E ratio may be based on a different earnings measure (e.g. underlying or forward earnings) than the EPS figure shown, which is why they may appear inconsistent.

    Mineral Resources, by contrast, is trading on a low double-digit earnings multiple and generating sizeable franked dividends for shareholders. This could indicate the stock is valued more on its current earnings power and less on blue-sky potential.

    Recent share price performance

    Comparing their recent share price action up to 24 September 2026:

    • Lynas Rare Earths closed at $14.39 on 24 September 2026, with a year-to-date return of 17.9%. Over the past month, the shares have seen some volatility, swinging between $13.83 and $16.40, but have generally traded higher from their mid-year levels.
    • Mineral Resources finished at $54.18 on 24 September 2026, with a year-to-date return of 2.2%. The shares have been more subdued lately, moving between $52.83 and $65.46 during the month, but trending flat to slightly down over this timespan.

    Which is the better buy?

    If I’m weighing Lynas Rare Earths against Mineral Resources with upside in mind, my pick would be Lynas Rare Earths. The market is clearly pricing in strong long-term growth as rare earths play a bigger part in electric vehicle and renewable supply chains. While its high P/E means it’s priced for a lot of future success—and it doesn’t pay a dividend—the company is uniquely placed outside of China and has achieved momentum this year.

    Mineral Resources is no slouch, with a solid (and fully franked) dividend and much lower valuation. It’s arguably the steadier play, especially for those seeking income or concerned about volatile commodity cycles. But for investors squarely focused on capital growth and long-term thematic tailwinds, I’d lean toward Lynas despite the market optimism already baked in.

    The post Lynas Rare Earths vs Mineral Resources: Which ASX mining stock shines? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Mineral Resources right now?

    Before you buy Mineral Resources shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Mineral Resources wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 1 August 2026

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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 recommended Lynas Rare Earths Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. 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.

  • Buy, hold, sell: CBA, BHP, CSL shares

    A youthful man looks up thoughtfully at a light bulb above his head.

    S&P/ASX 200 Index (ASX: XJO) shares hit a 15-week low before closing at 8,665 points on Friday, down 0.76% for the week.

    Here’s how John Athanasiou from Red Leaf Securities rates these three ASX 200 heavyweights (courtesy of The Bull). 

    CSL Ltd (ASX: CSL)

    The CSL share price rose 0.77% last week to close at $176.95 on Friday.

    Athanasiou has a buy rating on this ASX 200 healthcare share. 

    He said: 

    CSL’s recovery is gaining momentum after forecasting underlying profit growth guidance of about 5 per cent in fiscal year 2027. Guidance exceeded market expectations.

    Immunoglobulin sales improved in the second half of fiscal year 2026 amid the company announcing a further share buy-back of $1.1 billion.

    The outlook for this global health care company is improving after prolonged underperformance.

    CSL shares have risen from $92.24 on June 3 to trade at $179.19 on September 24.

    Successfully meeting or exceeding its targets leaves room for a potentially higher share price considering the stock was trading above $300 in calendar year 2024.

    BHP Group Ltd (ASX: BHP)

    The BHP share price fell 0.54% last week to close at $60.72 on Friday.

    Athanasiou has a hold rating on this ASX 200 mining share. 

    He explained:

    BHP remains a high quality, diversified resources company, supported by iron ore and increasing exposure to copper.

    However, a softer global growth outlook and uncertainty surrounding Chinese commodity demand limit the case for aggressively buying the stock at this point.

    Existing investors can continue holding for its balance sheet strength, dividends and long term copper exposure.

    Copper contributed 54 per cent of group underlying EBITDA in full year 2026.

    Commonwealth Bank of Australia (ASX: CBA)

    The Commonwealth Bank share price fell 1.05% last week to finish at $150.83 on Friday.

    Athanasiou has a sell rating on this ASX 200 bank share. 

    He said: 

    CBA is Australia’s highest quality major bank, but, in my view, quality doesn’t always represent value.

    Its premium valuation leaves limited room for disappointment as rising interest rates potentially slow credit growth and increase borrower stress.

    Investors could use the opportunity to take profits and consider better-value alternatives elsewhere in the banking sector.

    The post Buy, hold, sell: CBA, BHP, CSL shares appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    * Returns as of 1 August 2026

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    Motley Fool contributor Bronwyn Allen 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. 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.

  • These are the 10 most shorted ASX shares

    Sad man sitting at desk and grabbing his head as he looks at a laptop.

    Once a week, I like to look at ASIC’s short position report to find out which ASX shares are being targeted by short sellers.

    That’s because I believe it is 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, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

    The top 10 most shorted ASX shares

    • Lotus Resources Ltd (ASX: LOT) remains at the top of the table despite its short interest falling sharply to 14.8%. Short sellers may still have concerns over the uranium producer’s ability to ramp up production and generate attractive returns from Kayelekera.
    • DroneShield Ltd (ASX: DRO) has seen its short interest fall materially to 14.3%. The counter-drone technology company remains heavily shorted, possibly due to its valuation and the uncertainty created by the ASIC investigation.
    • Boss Energy Ltd (ASX: BOE) has jumped back into the top ten with short interest of 12.8%. Short sellers may be questioning the uranium producer’s longer-term production outlook and whether Honeymoon can deliver the growth expected by the market.
    • IperionX Ltd (ASX: IPX) has seen its short interest rise to 12.4%. The titanium company continues to make progress with its US operations, but short sellers may believe its valuation already assumes a significant amount of future growth.
    • 4DMedical Ltd (ASX: 4DX) has short interest of 12%, which is down slightly week on week. This may be due to the medical technology company’s valuation, which could be difficult to justify based on its current revenue base.
    • PLS Group Ltd (ASX: PLS) has seen its short interest rise to 11.7%. Short sellers may be positioning for continued weakness in lithium prices, which would put pressure on margins and cash flow.
    • Domino’s Pizza Enterprises Ltd (ASX: DMP) has short interest of 11.7%, which is down slightly since last week. Short sellers may still want to see stronger evidence that its restructuring can restore earnings growth.
    • Zip Co Ltd (ASX: ZIP) has returned to the top ten with short interest of 11%. This could reflect concerns that higher interest rates will impact the buy now pay later company’s performance.
    • Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest fall to 10.7%. Short sellers may remain concerned about luxury wine demand and how quickly the Penfolds owner can improve its performance in the Americas.
    • Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 10.6%, down from 11% last week. Despite positive regulatory progress, short sellers aren’t giving up on this one.

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

    Should you invest $1,000 in DroneShield right now?

    Before you buy DroneShield shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and DroneShield wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 1 August 2026

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    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, 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 and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • 5 things to watch on the ASX 200 on Monday

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    On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a decline. The benchmark index fell 0.45% to 8,665 points.

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

    ASX 200 expected to edge higher

    The Australian share market looks set for a mildly positive start to the week following a strong session on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points higher. In the United States, the Dow Jones was up 0.95%, the S&P 500 rose 0.5%, and the Nasdaq pushed 0.5% higher.

    Oil prices fall

    ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued start to the week after oil prices pulled back on Friday night. According to Bloomberg, the WTI crude oil price was down 2.3% to US$92.41 a barrel and the Brent crude oil price was down 2.15% to US$104.32 a barrel. This was driven by optimism over the reopening of the Strait of Hormuz.

    Codan shares upgraded

    Codan Ltd (ASX: CDA) shares are in the buy zone according to Bell Potter. This morning, the broker has upgraded the metal detector manufacturer’s shares to a buy rating with an improved price target of $60.00. It said: “We upgrade to Buy from Hold. Notwithstanding potential supply chain constraints in global electronics which CDA is “monitoring”, we expect current rapidly expanding production rates of Group 2 UAS to drive Communications revenue upgrades in 1H27/FY27.”

    Gold price rises

    It could be a positive start to the week for ASX 200 gold shares including Capricorn Metals Ltd (ASX: CMM) and Northern Star Resources Ltd (ASX: NST) after the gold price rose on Friday night. According to CNBC, the gold futures price was up 0.55% to US$4,321.2 an ounce. Easing oil prices lowered inflation risks and gave the precious metal a boost.

    Buy Mesoblast shares

    Bell Potter thinks investors should be buying Mesoblast Ltd (ASX: MSB) shares. This morning, the broker has retained its buy rating and $4.45 price target on the biotech company’s shares. This is more than double its current share price. It said: “MSB has extensive IP around both Ryoncil and Rexlemestrocel-L (aka Revascor). Ryoncil carries Orphan Drug Designation and long life patents. The development of the new TIBA assay further extends the moat around future revenues.”

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

    Should you invest $1,000 in Codan right now?

    Before you buy Codan shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Codan wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 1 August 2026

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    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.

  • Is the REA Group share price a strong contrarian buy?

    Wooden house and golden coins on balancing scale.

    The REA Group Ltd (ASX: REA) share price has fallen by approximately 35% in the past year. Not many S&P/ASX 200 Index (ASX: XJO) shares have fallen that far over the same time period.

    I get excited when high-quality businesses fall that far because it could be a rare opportunity to buy part of a great business.

    REA Group describes itself as a multinational digital advertising business, specialising in property. It operates Australia’s leading residential and commercial property websites – realestate.com.au and realcomercial.com.au, as well as the leading website dedicated to share property, Flatmates.com and the property research website property.com.au.

    The company also owns Mortgage Choice, an Australian mortgage broking franchise group, PropTrack, a leading provider of property data services, Campaign Agent, Australia’s leading provider of vendor-paid advertising finance solutions to the Australian real estate market and Realtair, a digital platform providing technology for the real estate transaction process. It also has investments in Simplicity Loans and Advisory, Arealytics, Athena Home Loans and Planitar.

    As you can see, REA Group has a strong presence across the real estate sector.

    Has recent financial performance been compelling?

    The company delivered a solid set of numbers during the FY26 result.

    Australian revenue grew 11% to $1.7 billion, Australian operating profit (EBITDA) before associates rose 13% to $1.1 billion, net profit after tax (NPAT) rose 15% to $650 million and earnings per share (EPS) climbed 15% to $4.93.

    The company noted a number of highlights for realestate.com.au, with 12.7 million people visiting the portal on average each month. It also said it receives 146.4 million average monthly visits, which is 104.5 million more monthly visits than the nearest competitor on average.

    It also noted 2.9 million people visited realcommercial.com.au per month on average, 1.8 million more people than the nearest competitor.

    FY27 could be a challenging year for the company amid all of the changes to property-related taxes.

    It said that new national buy listings are anticipated to be “flat to down low single-digits” in FY27. July listings were 2% lower and in line with the eight-year average. However, combined Melbourne and Sydney listings declined by 13%, while Brisbane, Perth and Adelaide increased by 13%.

    Despite that headwind, the company continues to target operational margin expansion, which I’d say is a positive development.

    Management expects a low double-digit controllable residential buy yield, excluding the impact of the geographical mix, driven by an 80% premium price increase and growth in add-ons.

    So, whilst the number of listings is challenging, price rises are helping offset the headwinds.

    According to Commsec’s projection, the business is now valued at just 25x FY27’s estimated earnings. Commsec forecasts suggest the company could grow its EPS by 13.75% in FY28 and another 15.7% in FY29.

    Is the REA Group share price a buy?

    According to CMC Invest, there have been 10 analyst ratings on the business within the last three months. Four of those ratings were a buy, five were a hold and one was a sell.

    The average price target of those analyst ratings was $188.50, which implies a possible rise of 27% over the next year from where it is at the time of writing. In other words, it could be an underrated opportunity, so it could be one to take a closer look at.

    The post Is the REA Group share price a strong contrarian buy? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in REA Group right now?

    Before you buy REA Group shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and REA Group wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 1 August 2026

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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.

  • Want to retire early? Here’s where I’d put my money

    Hand sketching investment growth concept chart with chalk on blackboard.

    The idea of working until 67 before finally enjoying retirement has never appealed to me.

    I’d much prefer to build enough wealth to retire earlier and spend more time doing the things I enjoy.

    And I think investing in the stock market is one of the best ways to get there.

    If I were putting together a portfolio specifically for early retirement, I’d focus on two things: ETFs and individual growth stocks.

    Nothing particularly complicated, but I think getting the balance right could make a big difference over time.

    Here’s how I’d approach it.

    I’d start with ETFs

    The first thing I’d do is build a decent position in ETFs.

    One that really interests me is the Vanguard Australian Shares High Yield ETF (ASX: VHY).

    It holds a diversified portfolio of Aussie companies selected for their generous dividend yields.

    And that’s something I’d want in a retirement portfolio.

    While I’m still working, I’d reinvest the distributions to buy more units and let compounding do its thing.

    Eventually, I’d like those distributions to provide a steady income stream to help cover my living expenses.

    I’d also add a growth-focused ETF with international exposure, so I’m not relying entirely on the Australian market.

    The idea would be to build a solid foundation that could continue growing while generating income along the way.

    I’d also back some growth stocks

    Now, while ETFs would make up a substantial part of my portfolio, I wouldn’t stop there.

    I’d also want exposure to individual companies that I believe have the potential to become much bigger businesses over the coming years.

    Two that interest me are WiseTech Global Ltd (ASX: WTC) and Ouster Inc (NASDAQ: OUST).

    WiseTech operates a global logistics software business through its CargoWise platform, which helps freight forwarders manage complex supply chains.

    Meanwhile, Ouster offers exposure to lidar technology, robotics, and physical AI.

    Its sensors and software help machines understand their surroundings, with applications across industrial automation, robotics, and smart infrastructure.

    Of course, these aren’t risk-free investments, and I wouldn’t be putting all my money into them.

    But I’d be happy allocating a portion of my portfolio to businesses I believe have plenty of room to grow.

    Time would be my biggest advantage

    One thing I wouldn’t do is buy shares and expect them to double in six months.

    That’s not how I’d look to build a retirement portfolio.

    I’d want at least a three-year investment horizon for my individual growth stocks, though I’d ideally hold them much longer.

    And with ETFs, I’d be looking at decades.

    I’d also keep investing regularly, especially when the market gives us opportunities to buy quality businesses at more attractive prices.

    Ultimately, I’d want a portfolio that combines dividend income with long-term capital growth.

    And if I keep investing over the years, I’d hope to retire early and work because I want to, not because I have to.

    The post Want to retire early? Here’s where I’d put my money appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Vanguard Australian Shares High Yield ETF right now?

    Before you buy Vanguard Australian Shares High Yield ETF shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Vanguard Australian Shares High Yield ETF wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 1 August 2026

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    Motley Fool contributor Aaron Teboneras 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 Australia has recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Gifting money to your kids? How it could accidentally dent your Age Pension

    a Christmas present wrapped in one hundred dollar notes and finished with a big red bow

    The Age Pension is a fortnightly payment for Australians aged 67 or older. It’s designed as a financial safety net to help retirees cover basic living expenses.

    Not everyone is eligible though. Not only do you need to meet age requirements (67 years old), you also need to be an Australian resident who has lived here for at least 10 years, with at least five of those years in a single continuous period.

    You’re also subject to an asset and an income test, the results of which determine how much Age Pension you can get, if any. Centrelink assesses you under both tests then applies whichever gives the lowest rate of payment for your individual circumstances.

    The income test assesses all income pooled from all sources, including wages, superannuation, investment income, commission payments, and any other types of income including those from overseas.

    Meanwhile the asset test assesses everything you own, whether it’s in full, in part, or you have an interest in it. It does exclude the home you live in but includes any assets you hold overseas.

    How much can I earn and own?

    To receive the full Age Pension, single Australians can earn up to $226 per fortnight. Meanwhile, couples can earn up to $396 per fortnight.

    Meanwhile, the asset rules just changed. As of the 20th of September, in order to receive the full Age Pension, single homeowners can now own assets (including superannuation) up to a value of $333,000, and non-homeowners can own assets up to $600,000 in retirement.

    Again, a couple has a different threshold, and it’s not double the amount of one person. A couple combined can now own up to $499,000 in total if they own a property, or $766,000 if they don’t.

    But it’s still possible to earn something if you’re over these limits. A part payment is assessed on a sliding scale depending on your income and assets.

    The rules are strict. So it’s easy to see why so many retirees or soon-to-be-retirees try to reduce their income or assets by gifting off money to their kids to try to meet thresholds for the Age Pension.

    But that’s a huge no-no.

    Gifting money can backfire.

    Here’s why.

    Centrelink has strict rules to deter Australians from giving away money to influence their Age Pension eligibility.

    If you give away your income or assets, they may still count towards your income and asset tests. This also applies if you sell them for less than they’re worth.

    This includes selling or gifting property, a car, money, moving money into a trust, giving up control or a trust or company, forgiving a loan, donating money, or even refusing income to fall under the Age Pension limits.

    Gifting limits

    You can choose to give away any amount and as many gifts as you like. If the total value of your gifts is more than the value of the gifting-free area, your Age Pension payment may be affected.

    If you gift over the value of the gifting free areas, Centrelink will count the excess in your asset text and apply deeming and include it in your income test.

    This applies for five years from the date you make the gift.

    The value of the gifting free areas is the same whether you’re a single person or a couple. 

    You can gift up to $10,000 in one financial year and $30,000 over five financial years. The $30,000 can’t include more than $10,000 in a single financial year. This won’t affect your asset or income test, but any amount over this will be counted for the next five years.

    The post Gifting money to your kids? How it could accidentally dent your Age Pension appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    * Returns as of 1 August 2026

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    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.

  • How much should I have in my superannuation at age 55?

    Australian dollar notes around a piggy bank.

    At age 55, you’re on the home stretch towards retirement. It’s vital that you’re on top of how much is in your superannuation and how it compares to what you need to quit work.

    At this age you’re just five years from your preservation age (when you can access your superannuation if you’ve retired), 10 years from accessing your superannuation regardless of whether you’ve stopped working or not, and 12 years away from the Age Pension (if eligible).

    It’s the final window to boost your superannuation and leverage compound growth. 

    You’ll want to ensure your super fund is performing well, and that you’re adding additional contributions wherever you can.

    You should start aiming to clear your debt, including your mortgage. It’s also potentially the time of start making structural life adjustments. These can make the transition to retirement much easier. 

    The downsizer contribution rule, for example, allows Australians aged 55 or older to contribute $300,000, or $600,000 for a couple, from the sale of their home into super.  

    That’s a great way to boost your balance before retirement.

    Here’s a breakdown of what you should have in your superannuation at age 55 to find out if you’re on track.

    The cost of retirement

    Most Australians aim for a comfortable retirement. That means enough money for a good-quality lifestyle and funds to pay for things like top-tier private health insurance, regular leisure activities, meals out, and potentially even some travel.

    The Association of Superannuation Funds of Australia (ASFA) calculates that a comfortable retirement will cost around $55,923 per year for singles and $78,566 for couples. 

    These figures assume you own your home outright and that you’ll receive a part Age Pension. That means additional mortgage or rental costs will be on top.

    How much do I need in my superannuation to afford a comfortable retirement?

    Again, ASFA has run the numbers. It’s estimated that single Australians will need around $630,000 in their superannuation at retirement, and couples will need around $730,000 to be able to finance a comfortable retirement lifestyle.

    The catch is that these figures are calculated on the assumption that you’ll be retiring at age 67. So if you want to stop working earlier, you’ll need to account for those extra years up to age 67. 

    If you don’t own your home outright you’ll also need to add mortgage payments or rent onto your balance.

    At age 55, how much superannuation is considered as ‘on track’?

    Assuming you have a $100,000 per year income and that you’re aiming for a $630,000 superannuation balance, at age 55 Australians should have around $348,000 in their superannuation.

    If your income is a little lower, around $75,000, you’ll need a bit more. A superannuation balance of around $367,000 at age 55 should still put you on track to reach the $630,000 goal within the next 12 years.

    How does your balance compare?

    The post How much should I have in my superannuation at age 55? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    * Returns as of 1 August 2026

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    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.

  • Invested in ASX IVV or other iShares ETFs? Here’s your next dividend

    Wall Street sign with New York Stock Exchange building out of focus in the background with American flags.

    BlackRock has announced the next lot of estimated distributions for some of its ASX iShares exchange-traded funds (ETFs). 

    All of these ASX ETFs are invested in international shares or bonds.

    The ex-dividend date is tomorrow.

    In order to receive an upcoming distribution, you must own the ASX ETF before its ex-dividend date.

    iShares S&P 500 ETF (ASX: IVV) is among this group of exchange-traded funds.

    IVV tracks the US benchmark S&P 500 Index (SP: INX), giving Aussies easy access to the runaway US market.

    US stocks have smashed the S&P/ASX 200 Index (ASX: XJO) over the past three years.

    In FY26, US stocks produced triple the total return of ASX 200 shares at 22% vs. 7%, largely due to the artificial intelligence (AI) boom.

    A recent CMC survey of more than 8,500 investors and traders found ASX IVV was the most popular ETF among buyers today.

    BlackRock will pay its ETF investors on 9 October. 

    Here’s what ASX IVV and other ETFs will pay

    Here is a list of the estimated distributions that iShares ETF investors will receive next month.

    The dividend amounts will be confirmed on Wednesday.

    ASX ETF Distribution
    iShares S&P 500 ETF (ASX: IVV) 17.35 cents per unit
    iShares S&P Mid-Cap ETF (ASX: IJH) 12.94 cents per unit
    iShares S&P Small-Cap ETF (ASX: IJR) 59.78 cents per unit
    iShares U.S. Factor Rotation Active ETF (ASX: IACT) 2.43 cents per unit
    iShares Nasdaq Top 30 ETF (ASX: ITEK) 1.16 cents per unit
    iShares Core Global Corporate Bond (AUD Hedged) ETF (ASX: IHCB) 195.24 cents per unit
    iShares Global High Yield Bond (AUD Hedged) ETF (ASX: IHHY) 133.29 cents per unit
    iShares J.P. Morgan USD Emerging Markets Bond (AUD Hedged) ETF (ASX: IHEB) 72.68 cents per unit
    iShares Global Aggregate Bond ESG (AUD Hedged) ETF (ASX: AESG) 146.85 cents per unit
    iShares Core Global Aggregate Bond (AUD Hedged) ETF (ASX: AGGG) 70 cents per unit
    iShares U.S. Treasury Bond (AUD Hedged) ETF (ASX: IUSG) 201.61 cents per unit
    iShares World Equity High Income Complex ETF (ASX: WYNC) 70.28 cents per unit

    IVV and iShares ETFs join 15 other ASX stocks and REITs going ex-dividend this week.

    Vanguard has also announced its next batch of estimated distributions for its ASX ETFs.

    They include the most popular ETF on the Aussie market, Vanguard Australian Shares Index ETF (ASX: VAS), as well as Vanguard Australian Shares High Yield ETF (ASX: VHY), and Vanguard MSCI Index International Shares ETF (ASX: VGS).

    The ex-dividend date for Vanguard distributions is Thursday. Vanguard will pay investors on 16 October.

    The post Invested in ASX IVV or other iShares ETFs? Here’s your next dividend appeared first on The Motley Fool Australia.

    Should you invest $1,000 in iShares S&P 500 ETF right now?

    Before you buy iShares S&P 500 ETF shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and iShares S&P 500 ETF wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 1 August 2026

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    Motley Fool contributor Bronwyn Allen 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 iShares S&P 500 ETF. The Motley Fool Australia has recommended iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Woodside vs Westpac: Which ASX share is better for passive income?

    A young woman sits with her hand to her chin staring off to the side thinking about her investments.

    Woodside Energy vs Westpac

    When it comes to building a reliable passive income stream, many ASX investors find themselves comparing household names like Woodside Energy and Westpac. Both are titans in their respective fields—energy and banking. But when deciding between Woodside shares and Westpac shares for passive income, the differences in dividend profiles, business models, and recent momentum can really shape the call. Let’s take a closer look at how these two stocks stack up.

    The case for Woodside

    Woodside is Australia’s largest independent oil and gas company, producing and marketing energy both here and offshore. With a history stretching back to 1954 and a significant boost from its recent merger with BHP’s petroleum assets, Woodside has evolved into a global energy player. According to its most recent public description, Woodside operates a diverse portfolio of offshore platforms and floating production vessels, and its shares have established themselves among the biggest names on the ASX.

    For income-focused investors, Woodside’s fundamentals stand out in a few ways:

    • Dividend yield: 5.24%, fully franked, which remains attractive compared to many blue chips.
    • P/E ratio: 13.81, offering moderate earnings multiples for the sector.
    • Recent returns: Its year-to-date return is sitting at a robust 38.9%, pointing to strong recent share price momentum.

    Woodside’s dividend history also confirms consistent and fully franked payouts, and its most recent annual dividend is $1.63 per share.

    The case for Westpac

    Founded in 1817, Westpac is one of Australia’s four biggest banks and a major fixture on the ASX. It operates across multiple banking and wealth management lines, from retail and business banking to specialist financial services, both locally and across the Tasman. Through brands like St.George and Bank of Melbourne, Westpac has become a cornerstone for many Aussies’ day-to-day finances.

    On the passive income front, Westpac offers:

    • Dividend yield: 4.43%, fully franked—solid, though a step below Woodside’s headline rate.
    • P/E ratio: 17.13, which is somewhat higher (i.e. more expensive earnings multiple) than Woodside, though this is not unusual for a major bank.
    • Earnings per share: $2.029, comfortably supporting the current $1.54 annual dividend.

    Westpac has also maintained a long and stable record of paying dividends—every single one fully franked in the last two decades—and remains a stalwart income stock for retired and dividend-focused investors.

    Valuation comparison

    Here’s how the key numbers stack up right now:

    Metric Woodside Westpac
    Market Cap $60.09 billion $116.73 billion
    P/E Ratio 13.81 17.13
    Dividend Yield 5.24% (100% franked) 4.43% (100% franked)
    Earnings per share 1.605 2.029
    Dividend per share 1.63 1.54
    Year-to-date return 38.9% -8.0%

    Recent share price performance

    Comparing recent share price history up to 24 September 2026:

    • Woodside Energy: Closed at $31.61, up 1.54% on the day. The share price is up 38.9% year to date—a very strong run.
    • Westpac: Closed at $34.13, down 1.81% on the day. Year to date, Westpac shares are actually down 8.0%, showing some negative momentum recently.

    Which is the better buy?

    If I’m looking for a passive income pick today, I’d lean toward Woodside. Here’s why: Right now, Woodside offers a higher fully franked dividend yield than Westpac, with dividends underpinned by healthy earnings (as suggested by the EPS and payout ratio). The oil and gas operator is also showing strong recent price momentum, up almost 39% this year, while pockets of the banking sector—including Westpac—are lagging, with Westpac shares down about 8% over the same stretch.

    Westpac still offers a reliable, fully franked dividend and is a classic income play. But with Woodside’s higher income yield and noticeably better recent share performance, my pick for new passive income dollars would be Woodside Energy. Of course, no dividend stock is risk-free—energy profits can be cyclical, and banks have their own headwinds. Still, based on the latest data, the edge goes to Woodside for now.

    The post Woodside vs Westpac: Which ASX share is better for passive income? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Woodside Energy Group Ltd right now?

    Before you buy Woodside Energy Group Ltd shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woodside Energy Group Ltd wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    * Returns as of 1 August 2026

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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 draft. 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.