Tag: Stock pick

Trying to time the market is a tough game. Even professional investors struggle to consistently predict what will happen next.

That’s why, in 2026, I still believe one of the best ways to build wealth on the ASX is by buying high-quality ASX shares when they appear undervalued and then holding them for the long term.

This approach isn’t about guessing short-term price movements. Instead, it is about identifying businesses with sustainable competitive advantages and buying them when the market is overly pessimistic.

Here’s how I would do it.

Start by looking where others aren’t

At any point in time, certain parts of the share market are fashionable, while others are being actively avoided. At present, gold and lithium are where investors are putting their hard-earned money, whereas healthcare and tech are being sold off.

More often than not, undervalued ASX shares are found in the latter group.

This is where I would begin my search. A sector or company being unloved doesn’t automatically make it a buy, but it does increase the odds that valuations are more reasonable than usual.

The key is working out whether the challenges are short term in nature or something more structural.

Quality always comes first

A low valuation alone is never enough to justify an investment in ASX shares.

Before considering a company’s share price, I would want to be confident in the quality of the underlying business. Does it have a strong market position? Can it generate consistent cash flow? Does it benefit from long-term demand drivers?

In the current environment, balance sheet strength also matters. Companies with manageable debt levels and financial flexibility are far better placed to navigate uncertainty and capitalise on opportunities when conditions improve.

If a business doesn’t pass these tests, a cheap share price can quickly turn into a value trap.

Pay attention to company updates

Some of the best opportunities appear when the market reacts emotionally to short-term news.

By digging into company results, trading updates, and investor presentations, it is often possible to spot a disconnect between share price movements and underlying business performance.

Sometimes earnings are temporarily under pressure, but margins are improving. Other times, investment spending weighs on profits today but sets the company up for stronger growth tomorrow.

In my experience, the market doesn’t always wait around for the full story to play out, and that can work in favour of patient investors.

Take a long-term mindset with undervalued ASX shares

Undervalued ASX shares don’t usually rerate overnight. The payoff often comes gradually, through earnings growth, dividend increases, and improving sentiment over many years.

That’s why I would spread my bets across a range of high-quality businesses rather than relying on a single idea. Diversification helps manage risk and improves the chances of owning at least a few standout performers.

By focusing on quality, valuation, and time in the market, I believe investors can give themselves a strong chance of building long-term wealth on the ASX, even in an uncertain world.

Which shares are undervalued?

The good news is that at present, I think there are a number of undervalued ASX shares available to patient investors.

This includes CSL Ltd (ASX: CSL), WiseTech Global Ltd (ASX: WTC), Accent Group Ltd (ASX: AX1), TechnologyOne Ltd (ASX: TNE), and Domino’s Pizza Enterprises Ltd (ASX: DMP). They could be worth further investigation.

The post How I’d go about finding undervalued ASX shares to buy and hold forever in 2026 appeared first on The Motley Fool Australia.

More reading

• 2 beaten-down ASX shares to consider before they recover
• 4 ASX shares I’d buy with $10,000 today
• Is Wisetech a buy, sell or hold at current levels?
• Top Australian stocks to buy with $2,000 right now
• 3 quality ASX healthcare shares worth buying now

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

These ASX shares have caught my eye this week. With upsides as high as 700% and robust business growth planned for 2026, this is where I’d be investing my money.

Electro Optic Systems Holdings Ltd (ASX: EOS) 

EOS shares are catching headlines this week. At the close of the ASX on Thursday afternoon, the stock was 1.21% lower for the day at $9.90 a piece. But the dip has barely dented the electro-optic tech developer and producer’s huge annual gains. 

At the time of writing, the shares are 723.53% higher than this time last year.

This year, the business is well-placed to capture surging demand for defence stocks as global military spending hits all-time highs. And it already won some impressive contracts over the past 12 months.

Xero Ltd (ASX: XRO)

Xero shares slumped 4.12% to $103.16 at the close of the ASX on Thursday. And the stock is still 37.7% below its trading levels from this time last year after facing a number of headwinds and loss of investor confidence throughout 2025.

But I think the investor sell-off last year was unwarranted and overdone. The business looks to be stable and poised for an uptick in business growth this year. It’s actively expanding and investing in new revenue streams.

I think Xero shares have the potential to double in value this year.

CSL Ltd (ASX: CSL)

I still have my eye on the ASX-listed global biotechnology company’s shares. Like Xero, the business suffered several strong headwinds in 2025 that sent its shares spiralling.

But now, CSL is well-positioned for a boom in demand. The company is entering a key investment phase, which could help boost its financials, and I’d expect demand for its products and investor confidence to follow suit.

Metcash Ltd (ASX: MTS)

Metcash, a wholesale distribution and marketing company specialising in food, liquor, and hardware, suffered a 15% share price crash in late November following its subdued FY26 half-year results. But analysts seem confident the business can turn it around in 2026.

Unlike the stocks I’ve listed above, I don’t think we’ll see explosive numbers out of this ASX company’s shares in 2026, but I do think we’ll see consistent growth over the next 12 months, which will outpace the likes of supermarket giants Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW).

The post 4 ASX shares I’d buy with $10,000 today appeared first on The Motley Fool Australia.

More reading

• How I’d go about finding undervalued ASX shares to buy and hold forever in 2026
• How I’d look for ASX growth shares today that could double my money
• Up 735% in a year! The red-hot EOS share price is smashing Droneshield and other defence stocks
• Why EOS, Humm, Pantoro Gold, and Robex shares are dropping today
• 2 ASX growth shares set to skyrocket in 2026 and beyond

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 positions in and has recommended CSL, Electro Optic Systems, and Xero. The Motley Fool Australia has positions in and has recommended Woolworths Group and Xero. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Australian energy stocks have had a slow start to 2026. Higher operating costs and continued regulatory risk have put shares in Australian energy majors, AGL Energy Ltd (ASX: AGL) and Origin Energy Ltd (ASX: ORG), under continued pressure.

At the close of the ASX on Thursday afternoon, AGL shares were 0.46% lower at $8.67 and down 6.97% for the year to date. 

Meanwhile, Origin shares also closed lower for the day. The stock fell 0.36% to $11.02, and is now 4.17% lower for 2026 so far.

While neither stock is on fire right now, one of these energy shares looks like a much better buy than the other.

Are Origin Energy shares a buy for 2026?

Analysts appear to be neutral about Origin Energy shares over the next 12 months.

Origin Energy is a leading provider of energy to homes and businesses throughout Australia and is involved in electricity, natural gas, solar, and LPG. The company’s key operating segments include exploration and production, generation, renewable energy, and selling energy.

The company has a stable LNG production and earnings outlook and plans to expand its energy storage to facilitate greater renewable energy use in Australia.

According to TradingView data, most analysts (7 out of 12) have a neutral rating on Origin Energy shares. They do expect the share price to increase this year, though. The maximum 12-month target price is $14.10, which implies a potential 27.95% upside for investors at the time of writing.

Are AGL Energy shares a buy for 2026?

Analysts are currently very bullish on their outlook for the shares of one of Australia’s oldest energy providers. 

The power company participates in the gas and electricity wholesale and retail markets. Its diverse portfolio spans traditional thermal power generation and renewable sources, including hydro, wind, solar, and landfill gas.

The company is also investing heavily in battery storage to help support Australia’s nationwide energy transition away from coal and into renewable energy.

TradingView data shows that 9 out of 11 analysts have a buy or strong buy rating on the stock. The average 12-month target price for the shares is $11.33, implying a potential 30.65% upside at the time of writing. 

But some are even more optimistic and think the share price could storm as much as $12.75 over the next 12 months. That implies a huge 47.06% upside for investors from the current share price.

The team at Ord Minnett thinks the stock is undervalued by the market and expects it could rise even higher to $13 a share. That would be a 50% increase!

The broker said that AGL has demonstrated solid momentum recently with its Tilt renewable asset sale, flexible capacity development at Bayswater, progress in its Western Australia operations, and a series of power purchase agreements (PPAs).

The broker said it sees further drivers to come from revaluation of its 20% stake in energy management platform Kaluza, a closure of Energy Australia’s Yallourn power station that will push Victorian wholesale prices, and thus AGL earnings, higher, and repricing of Tomago supply contracts.

The verdict?

With stronger upside and more bullish analyst sentiment, AGL shares look like the best buy for 2026. Although Origin Energy shares are still expected to climb higher this year.

The post AGL Energy versus Origin Energy shares: Which is a better buy for 2026? appeared first on The Motley Fool Australia.

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• Ord Minnett names 2 ASX 200 shares to buy for massive returns

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.

There are no guarantees in investing. But history suggests that buying the right ASX growth shares and holding them patiently can be a powerful way to build wealth over time.

In fact, doubling your money in shares isn’t nearly as unrealistic as it might sound. The share market has a long track record of delivering solid long-term returns, and investors who back businesses growing faster than the market have often done even better.

Here’s how I’d go about searching for ASX growth shares today that could deliver 100%+ returns in the years ahead.

Doubling your money with ASX growth shares

If an investment compounds at around 9% to 10% per year, it can double in roughly 7 to 8 years. That’s broadly in line with what major share market indices have delivered over long periods.

The appeal of ASX growth shares is that they have the potential to compound at an even faster rate than the market. When a company can consistently grow revenue, earnings, and cash flow, its share price often follows over time.

The catch, of course, is identifying those businesses early enough, and having the patience to stick with them through inevitable ups and downs.

I’d focus on long-term growth trends

Rather than worrying about short-term economic noise, I would start by looking for industries with structural growth tailwinds.

These are areas where demand is expected to rise over many years, regardless of what happens in the economic cycle. Think healthcare innovation, digital services, software, and online platforms that continue to take market share.

Businesses operating in these areas often have the opportunity to grow even when broader economic conditions are challenging, and that can be a powerful driver of long-term returns.

Prime examples could be Goodman Group (ASX: GMG) for exposure to data centres, ResMed Inc. (ASX: RMD) for sleep apnoea, or Xero Ltd (ASX: XRO) for cloud accounting.

Competitive advantages

Within attractive growth sectors, not all companies are created equal.

I would look for businesses with clear competitive advantages that make it difficult for rivals to catch up. This might include proprietary technology, high switching costs, strong brand loyalty, or network effects that strengthen as the business grows.

These advantages can allow companies to protect margins, reinvest at high returns, and steadily increase their market share over time. This is a combination that can underpin exceptional growth.

Valuation still counts

Even the best growth story can disappoint if you pay too much for it.

That’s why I would still be disciplined on valuation. Buying a growth company at a fair price, rather than an inflated one, provides a margin of safety and improves the chances that strong business performance translates into strong share price returns.

In many cases, the best opportunities appear when a high-quality ASX growth share stumbles temporarily, causing its share price to fall even though the long-term story remains intact.

Foolish takeaway

Doubling your money with ASX growth shares is certainly possible.

Investors just need to focus on quality and valuation, and then patiently hold them through the years while they compound.

The post How I’d look for ASX growth shares today that could double my money appeared first on The Motley Fool Australia.

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• 2 great ASX 200 blue-chip shares I’d buy right now!
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Motley Fool contributor James Mickleboro has positions in Goodman Group, ResMed, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, ResMed, and Xero. The Motley Fool Australia has positions in and has recommended ResMed and Xero. 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.

One of the biggest advantages Australian investors have today is choice.

You no longer need to open overseas brokerage accounts or try to pick individual global winners to invest in world-class businesses.

With ASX-listed exchange traded funds (ETFs), it is possible to gain exposure to some of the strongest companies and fastest-growing markets in the world through a single trade.

If the goal is to invest in quality and long-term growth, here are three ASX ETFs that could be worth considering:

Betashares Global Quality Leaders ETF (ASX: QLTY)

The Betashares Global Quality Leaders ETF is designed for investors who want exposure to businesses that do not rely on favourable conditions to perform.

This ASX ETF screens for stocks with consistently high profitability, strong balance sheets, and stable earnings. This means it tends to hold businesses that are already operating from a position of strength rather than chasing rapid expansion at any cost.

It avoids weaker companies and focuses on durability, selecting businesses that can keep delivering across economic cycles. The result is a portfolio that leans toward quality over hype, which can be particularly valuable when markets become unpredictable.

For investors, the Betashares Global Quality Leaders ETF offers a way to own global leaders without needing to identify which single company will come out on top.

Betashares India Quality ETF (ASX: IIND)

Another ASX ETF to look at is the Betashares India Quality ETF. It offers exposure to a market that is growing for structural reasons rather than short-term trends.

India’s economy is being reshaped by demographics, urbanisation, and a rapidly expanding middle class. This fund focuses on Indian stocks that exhibit quality characteristics, including strong governance, solid balance sheets, and sustainable profitability.

What sets the Betashares India Quality ETF apart is its focus on selectivity within an emerging market. Instead of broad exposure, it targets the companies that are positioned to benefit from long-term domestic growth while maintaining financial discipline. That approach can help manage some of the risks typically associated with emerging markets.

For investors seeking global diversification beyond developed markets, this ASX ETF provides access to a growth story that is still unfolding. It was recently recommended by analysts at Betashares.

Betashares Nasdaq 100 ETF (ASX: NDQ)

Finally, the Betashares Nasdaq 100 ETF offers investors easy access to some of the best stocks that have ever existed.

Rather than focusing on stability or valuation, this fund tracks stocks that have shaped entire industries. The Nasdaq 100 includes businesses that dominate areas such as software, digital platforms, semiconductors, and cloud infrastructure. This includes Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Microsoft (NASDAQ: MSFT).

What makes the Betashares Nasdaq 100 ETF compelling is its concentration in stocks that continuously reinvent themselves. Many of its holdings generate enormous cash flows and reinvest aggressively, allowing them to stay ahead of competitors rather than defend old positions. This bodes well for the performance of this fund over the long term.

The post Invest in the best stocks in the world with these ASX ETFs appeared first on The Motley Fool Australia.

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• Guess how much $10,000 invested in these ASX ETFs 3 years ago is worth today?
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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 Apple, BetaShares Nasdaq 100 ETF, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) shares are a popular option for income investors.

However, with the banking giant’s shares only offering a modest 3.15% dividend yield at present, investors could get more bang for their buck from other ASX dividend shares.

For example, listed below are two dividend shares that analysts have named as buys and expect superior yields from in the near term. They are as follows:

Amcor (ASX: AMC)

The first ASX dividend share that could be a buy is packaging giant Amcor.

The team at Morgans is positive on the company. This is due to its positive outlook and attractive valuation. Commenting on Amcor, the broker said:

Following AMC’s solid 1Q26 result, management’s increased confidence in delivering FY26 synergy targets, and the reaffirmation of FY26 guidance, we believe the outlook remains positive. Trading on 10.4x FY26F PE with a 6.1% yield, we view the valuation as attractive. Potential positive catalysts include meeting or exceeding expectations in upcoming quarterly results and the successful completion of additional asset sales.

Morgans believes the company will pay dividends per share of approximately 81 cents in FY 2026 and then 83 cents in FY 2027. Based on its current share price of $12.95, this would mean dividend yields of 6.25% and 6.4%, respectively.

The broker has a buy rating and $15.20 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

A second ASX dividend share that has been named as a buy is youth fashion retailer Universal Store.

Bell Potter is a big fan of the Universal Store, Thrills, and Perfect Stranger owner. This is due to its attractive valuation and positive growth outlook. The latter is being supported by its store rollout and private label strategy. It said:

At ~18x FY26e P/E (BPe), we see UNI trading at a discount to the ASX300 peer group and see the multiple justified by the distinctive growth traits supporting consistent outperformance in a challenging category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution. While catalysts associated with further interest rate cuts for Australia in CY25 are not imminent post the third rate cut in August, we continue to see the youth customer prioritising on-trend streetwear and expect UNI to benefit with their leading position.

Bell Potter is forecasting fully franked dividends of 37.3 cents per share in FY 2026 and then 41.4 cents per share in FY 2027. Based on its current share price of $8.50, this would mean dividend yields of 4.4% and 4.9%, respectively.

The broker has a buy rating and $10.50 price target on its shares.

The post Forget CBA and buy these ASX dividend shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Amcor Plc. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I hope there is no stock market sell-off in 2026. Markets falling is never pleasant, and volatility can test even experienced investors.

That said, whether markets rise steadily or stumble along the way, there are some ASX growth stocks I would still feel comfortable buying. These are businesses, I believe, that are built to keep growing through different economic conditions, rather than relying on perfect market sentiment.

Here are three ASX growth stocks I would consider owning regardless of whether 2026 brings a sell-off or not.

HUB24 Ltd (ASX: HUB)

HUB24 does not depend on consumers opening their wallets or businesses lifting spending. Instead, its growth is tied to how Australians manage their wealth over time.

The company provides investment and superannuation platforms used by financial advisers and their clients. Once advisers build their processes around a platform, switching is rarely simple. It involves compliance, reporting, client education, and operational change. That creates inertia, which tends to favour established providers.

What I find appealing about HUB24 is not just asset growth, but the way it earns revenue. As funds under administration rise, the platform benefits without needing to take outsized balance sheet risk or chase aggressive lending growth. Market movements can influence short-term flows, but the long-term trend of Australians consolidating and professionalising wealth management remains intact.

Even in weaker markets, advisers still need reliable platforms. In stronger markets, HUB24 benefits from rising balances. That combination makes it a business I would be comfortable owning across cycles.

Zip Co Ltd (ASX: ZIP)

Zip is often viewed purely through the lens of consumer spending and credit conditions. That framing misses part of the story.

At its core, Zip operates a payments and checkout platform designed to reduce friction at the point of sale. Merchants care about conversion rates, basket sizes, and repeat customers. Payment options play a role in all three, particularly online.

What makes this ASX growth stock interesting to me is its focus on simplifying the customer journey rather than just extending credit. As the business matures, the emphasis has shifted toward risk management, operating discipline, and improving unit economics. That evolution matters more than headline transaction growth.

If a sell-off occurs, sentiment toward consumer-facing stocks may weaken. But demand for flexible payment options does not disappear overnight. Consumers still buy essentials, and merchants still compete for attention.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix operates in a very different world from most ASX growth stocks.

The company focuses on radiopharmaceuticals, developing diagnostic and therapeutic products that use targeted radiation to detect and treat cancer. This is not a discretionary market. Clinical demand is driven by patient need and healthcare decisions rather than consumer confidence or interest rates.

What stands out to me is Telix’s commercial mindset. While many biotech companies remain perpetually pre-revenue, Telix has worked to move products from development into clinical and commercial use. That shift changes how the business is valued and how it can fund future growth.

Healthcare stocks can still be volatile, especially when markets turn risk-averse. But the underlying drivers of demand for improved cancer diagnostics and treatments are largely independent of economic cycles. That makes Telix a growth stock I would consider holding even if broader markets struggle.

Foolish Takeaway

No one knows whether 2026 will bring a stock market sell-off. What investors can control is the quality of the businesses they choose to own.

HUB24, Zip, and Telix operate in very different sectors, but they share a common trait. Each is positioned around structural demand rather than short-term market optimism. For me, this makes them ASX growth stocks to buy in any market.

The post 3 unstoppable ASX growth stocks to buy even if there’s a stock market sell-off in 2026 appeared first on The Motley Fool Australia.

More reading

• After crashing 8% yesterday, should investors buy the dip on these ASX 200 stocks?
• Why I think Zip shares offer major upside in 2026
• Zip shares slide 10% today as investors head for the exits. Here’s why
• The 3 stocks I’d buy and hold into 2026
• Could the Zip share price benefit from Trump’s latest proposal?

Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Telix Pharmaceuticals. The Motley Fool Australia has recommended Hub24 and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woolworths Group Ltd (ASX: WOW) shares have been through a difficult period, but the tide appears to be turning.

After an uncharacteristically weak FY25 result weighed heavily on investor sentiment, the company is showing signs of stabilisation and recovery.

Here are five reasons why I think this makes now a good time to invest.

1. The share price has not fully caught up with improving fundamentals

Woolworths shares fell sharply in 2025 after a disappointing result highlighted cost pressures, softer volumes, and increased competition. While the share price has recovered from its multi-year low, it remains meaningfully below recent highs.

At the current share price of $30.20, investors are effectively paying for a business that has already absorbed much of the bad news. If operational performance continues to improve, there may still be scope for further upside as confidence rebuilds.

2. FY25 was a setback, not a structural problem

FY25 stood out as a rare weak year for Woolworths, particularly in its core Australian Food division. However, there was no indication that the company’s competitive position had been permanently impaired.

The issues appeared to be cyclical and operational rather than structural. These included inflation-driven cost pressures, heightened price competition, and execution challenges. Importantly, management has acknowledged these issues and outlined clear steps to address them, rather than downplaying the result.

3. Early signs of a turnaround are emerging

Recent updates suggest momentum is gradually improving. In the first quarter of FY26, group sales increased 2.7%, with Australian Food sales rising 2.1% and ecommerce sales growing by double digits.

Customer metrics are also trending in the right direction. Net promoter scores improved compared to the prior year, average prices excluding tobacco have declined for several consecutive quarters, and digital engagement continues to grow. While progress remains uneven, the direction of travel appears more encouraging than it did six months ago.

4. Earnings are expected to recover steadily

According to consensus estimates provided by CommSec, Woolworths’ earnings per share (EPS) are expected to rebound meaningfully over the next few years. Forecasts point to EPS of $1.28 in FY26, rising to $1.45 in FY27 and $1.66 in FY28.

Based on these numbers, Woolworths shares trade on a forward price-to-earnings ratio of 23 times FY26 earnings, which I think looks reasonable if the recovery plays out as expected. While the company is unlikely to deliver explosive growth, a return to steady earnings expansion could be enough to support solid long-term returns.

5. Dividends are expected to grow again

Income investors may also find Woolworths appealing as profitability improves. Dividends per share are forecast to rise from 99.5 cents in FY26 to 113 cents in FY27 and 135 cents in FY28. The latter represents a forecast dividend yield of 4.5%.

If those estimates are delivered, shareholders could benefit from a growing income stream alongside any share price recovery. For a business with Woolworths’ scale, market position, and defensive characteristics, that combination may be attractive in 2026 and beyond.

Foolish takeaway

Woolworths shares have already endured a tough reset, and the company appears to be moving past an unusually weak year. With early signs of improvement, recovering earnings expectations, and dividends forecasted to rise, I think Woolworths could be one of the more interesting large-cap recovery stories on the ASX in 2026.

The post 5 reasons to buy Woolworths shares in 2026 appeared first on The Motley Fool Australia.

More reading

• Where to invest $10,000 in ASX 200 shares this month
• DIY investors: How to build a stable income portfolio starting with $50,000
• I’d buy this ASX dividend stock in any market
• 3 strong ASX dividend shares to buy for your SMSF
• 3 ASX 200 blue chip shares built for the long term

Motley Fool contributor Grace Alvino 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 Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The good news for income investors is that there are a lot of options to choose from on the Australian share market.

But which ASX dividend stocks could be buys this month?

Let’s take a look at two that analysts at Bell Potter are currently recommending as buys:

GDI Property Group Ltd (ASX: GDI)

GDI Property Group could be an ASX dividend stock to buy now. It is an integrated, internally managed property and funds management group with capabilities in ownership, management, refurbishment, leasing, and syndication of office properties.

Bell Potter points out that GDI Property’s shares are trading at a sizeable discount to their net tangible assets (NTA). It thinks this could have created a buying opportunity for investors. It said:

No change to our Buy recommendation. GDI continues to trade at a significant -41% discount to NTA which reflects no value for its FM OpCo, and while the Perth office market recovery could be a ‘slow burn’ with early leasing wins working through for GDI, we do still see upside from current levels which drops straight through to FFO gains.

As for income, the broker is forecasting dividends of 5 cents per share in both FY 2026 and FY 2027. Based on its current share price of 63 cents, this would mean dividend yields of almost 8% for both years.

Bell Potter sees plenty of upside for its shares. It has a buy rating and 85 cents price target on them.

Harvey Norman Holdings Ltd (ASX: HVN)

Another ASX dividend stock that Bell Potter rates highly for income investors is Harvey Norman. It is of course one of Australia’s leading retailers.

Although its shares have rallied strongly over the past 12 months, Bell Potter believes they are still good value, especially when you factor in its property portfolio. It commented:

Despite the strong re-rate in the name, HVN trades at ~2.0x market capitalisation to freehold property value as Australia’s single largest owner in large format retail with a global portfolio surpassing $4.5b and collectively owning ~40% of their stores (franchised in Australia and company operated offshore). This sees our view that of the 1-year forward ~19x P/E multiple as justified considering the multiple catalysts near/mid-term.

The broker is expecting fully franked dividends of 30.9 cents per share in FY 2026 and then 35.3 cents per share in FY 2027. Based on its current share price of $6.73, this would mean dividend yields of 4.6% and 5.25%, respectively.

Bell Potter has a buy rating and $8.30 price target on its shares.

The post Buy these ASX dividend stocks for 5% to 8% dividend yields 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

By anyone’s measure, 2025 was a decent year for the Australian share market and many ASX shares. The S&P/ASX 200 Index (ASX: XJO) started the year at 8,159.1 points and finished up in December at 8,714.3 points. That’s a gain worth about 6.8%, disregarding the new record high of 9,115.2 points back in June. If we include dividend returns too, the ASX 200 recorded a return of about 10.2% for 2025.

In any given year, we are going to see some ASX shares outperform the broader market, and others undershoot it.

Today, let’s go over two ASX shares that won big last year, and that I think are poised to continue their success in 2026

Two ASX shares that beat the market in 2025

Wesfarmers Ltd (ASX: WES)

Wesfarmers has just come off another successful year. The ASX 200 industrial and retailing conglomerate began 2025 at $71.53 a share. But by the time December wrapped up, Wesfarmers had hit $81.09. That translates to a 2025 gain of 13.37%. You can throw in another 3% or so to account for the two fully franked dividends the company paid out last year, too. So we have a clear market-beater here.

I own Wesfarmers shares myself, and I am confident that the company’s best days are in front of it. Wesfarmers owns four of the best retailers in Australia – Bunnings, Kmart, OfficeWorks and Target. In addition, the company has extensive industrial operations, ranging from gas distribution and healthcare to work clothing and lithium extraction.

Wesfarmers has a long history of prudent capital management, including an ever-rising dividend. As such, I’m happy to keep a cart hitched to this horse in 2026.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Next up, let’s talk about ASX share and investing house Soul Patts. Soul Patts shares began 2025 at a price of $34.22 each. They ended the year at $37.14 after rising as high as $45.14 at one point. That gives this company a 2025 gain of 8.53%. Again, we can throw on another 3% or so to account for this company’s full-franked dividends, making Soul Patts a market beater for the year.

Soul Patts is another top holding in my own portfolio, and I think it is primed for another big year in 2026. This faith rests on Soul Patts’ long history of delivering market-beating gains. As we’ve discussed plenty of times in recent weeks, this ASX share managed to average a return of 13.7% per annum over the 25 years to September 2025. Given that its performance last year was less than 13.7%, I’m confident that this year won’t be a disappointment.

The post These ASX shares won big last year and are still excellent buys for 2026 appeared first on The Motley Fool Australia.

More reading

• These ASX dividend stocks are built to keep paying and paying
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• $20,000 in savings? Here’s how that could become $10,000 a year in passive income
• 3 ASX 200 shares I’d trust if I couldn’t check my portfolio for a year

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. 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.