Tag: Stock pick

The BHP Group Ltd (ASX: BHP) share price has delivered a strong run, rising more than 50% over the past 12 months.

Even after that move, I still think the mining behemoth is worth a closer look. Here’s why I’d still consider buying BHP shares.

A valuation that still looks reasonable

One of the more interesting aspects of BHP right now is its valuation.

Based on CommSec estimates, the company is trading on around 12 times FY27 earnings. That sits alongside expectations for earnings per share of $4.20 in FY26 and $4.43 in FY27.

That combination suggests a business that is still growing, while trading at a multiple that reflects a degree of caution.

For me, that creates an attractive setup. The market is recognising the strength of the business, while still leaving room for earnings growth to play out over time.

Copper exposure is becoming more important

BHP has always been known for iron ore, but its copper exposure is becoming an increasingly important part of the story.

Copper plays a central role in electrification, renewable energy, and infrastructure. As demand builds across these areas, high-quality copper assets can become more valuable.

BHP’s portfolio includes some of the largest copper operations in the world, and the company continues to invest in expanding that exposure.

I think this adds a structural growth driver alongside its existing operations.

Potash adds a new growth engine

Another part of the story that I think is underappreciated is potash.

The Jansen project is progressing and represents a new pillar of growth for BHP. Potash is used in fertilisers, which links demand to global food production and population growth.

That creates a different type of exposure compared to traditional mining commodities.

As Jansen comes online in 2027, it has the potential to contribute meaningfully to earnings and diversify the business further.

A portfolio of world-class assets

What I find most attractive about BHP is the quality of its asset base.

The company operates large-scale, low-cost assets across iron ore, copper, and other commodities. These operations are positioned to generate strong cash flow across different market conditions.

Scale plays an important role here.

It allows BHP to operate efficiently, invest in growth, and return capital to shareholders over time.

Strong cash flow and shareholder returns

BHP has a long history of generating cash and returning it to investors.

Its earnings profile supports dividends, and the company has consistently distributed a significant portion of its profits.

For investors seeking both growth and income, that combination can be attractive.

Foolish takeaway

I think BHP continues to stand out as a high-quality mining company with multiple growth drivers.

It combines exposure to copper, a developing potash business, and a portfolio of large-scale assets that can generate strong cash flow over time.

At around 12 times estimated FY27 earnings, I think BHP shares still offer good value, supported by a growing earnings base and long-term demand for its key commodities.

The post Are BHP shares a strong buy this month? appeared first on The Motley Fool Australia.

More reading

• If I invest $10,000 in BHP shares, how much passive income will I receive in 2027?
• This ASX copper stock could be cheap compared to BHP and Rio Tinto shares
• Can BHP shares smash through the $60 record barrier in April?
• Why I’d buy these ASX 200 stocks if I were a beginner
• 3 excellent ASX ETFs for income investors to buy

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

The market has been unsettling in 2026. For patient investors, it may also be the most important opportunity in years.

From its all-time high of 9,202 points in late February, the S&P/ASX 200 Index (ASX: XJO) fell over 900 points — a decline of more than 9% — to a low point of 8,262 in March. The trigger was a surge in global oil prices tied to the ongoing conflict in the Middle East and the uncertainty it injected into energy markets, household budgets, and central bank policy.

It was uncomfortable. It was also not unusual.

What history actually shows

Market corrections feel permanent when you are living through them. The data says otherwise.

UBS examined 15 geopolitical shocks over the past fifty years and found the ASX 200 returned an average of 4%, 5%, and 11% over the following three, six, and 12 months, respectively.

Longer term, the picture is even clearer. The S&P/ASX 200 Index has compounded at more than 9% per annum over the past 10 years, including dividends. When franking credits are factored in, the total return rises to an average compounding rate of 10.6%. 

That is not a straight line. It includes crashes, corrections, pandemics, and inflation shocks. The long-run average holds anyway.

The compounding maths of a downturn

Here is the part most investors miss.

When you continue investing during a correction, every dollar buys more shares than it would have at the peak. Those extra shares then compound through the recovery and every subsequent year of growth.

At a 9% average annual return, $1,000 invested per month over 20 years compounds to approximately $670,000. Increase that to $1,200 per month — or take advantage of lower prices during a downturn to deploy additional capital — and the path to $1 million becomes achievable within the same timeframe.

The number shifts meaningfully depending on when you start and whether you stay invested. What does not change is the underlying logic: time in the market, not timing the market, is the primary driver of long-term wealth.

What to actually buy

What you buy matters. What matters even more is choosing an approach you can stick with when markets get noisy.

For some investors, that will mean keeping it simple with broad-based ETFs. Funds like the Vanguard Australian Shares Index ETF (ASX: VAS) and iShares S&P 500 ETF (ASX: IVV) offer instant diversification and let investors participate in the long-term growth of hundreds of businesses through a single ASX-listed investment. That simplicity can be a real advantage during volatile periods, because a portfolio you understand is often a portfolio you are more likely to hold.

For others, building wealth through individual shares may be more appealing. The recent correction has created more attractive entry points across a range of high-quality businesses, including major technology names, software companies, and healthcare leaders that had previously traded at richer valuations. For investors willing to do the work, buying individual shares can be a way to back a smaller group of businesses with stronger conviction.

The key is not to pretend there is only one right way to invest. Investing is personal. The best portfolio is often the one that matches your temperament, your available time, and your ability to stay consistent. Whether that means broad ETFs, carefully chosen individual stocks, or a mix of both, the real goal is to build a strategy you can stick with long enough for compounding to do its job.

The Foolish takeaway

Nobody rings a bell at the bottom of a market correction. That is precisely why waiting for certainty before investing is a strategy that tends to fail.

From an index point of view, the ASX 200 has quickly rebounded from March lows. As readers will now know, it is quite common for falls to happen again, and further rebounds to new all-time highs will follow suit. 

A $1 million portfolio is not built in a single decision. It is built through consistent investing, compounding over time, and the discipline not to flinch when the market does exactly what markets do.

The post A 2026 market crash could be a once-in-a-decade chance to build a $1 million ASX portfolio appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Vanguard ETF dividends to be paid today
• How to build a $500,000 ASX share portfolio step by step
• ASX 200 tech shares rocket 13% as long-awaited sector rebound accelerates
• Stop ‘saving’, start investing! How to target a $1 million ASX share portfolio

Motley Fool contributor Leigh Gant 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.

It has been a good period for owners of PLS Group Ltd (ASX: PLS) and Rio Tinto Ltd (ASX: RIO) shares, with both trading near record highs. 

This strength reflects improving sentiment across commodities and growing confidence in long-term demand for materials linked to electrification and global economic growth.

With that backdrop, is it better to own a diversified mining giant with exposure across multiple commodities, or a focused lithium producer with direct leverage to one of the most important trends in energy?

PLS: A pure-play on lithium demand

PLS offers a clear and direct exposure to lithium.

Its Pilgangoora operation is one of the largest hard-rock lithium assets globally, and the company has built scale alongside a strong balance sheet and operational discipline.

In its latest results, the business reported a 47% increase in revenue to $624 million and a significant lift in margins, supported by higher realised prices and strong execution.

What stood out to me most is the operating leverage. When lithium prices strengthen, that tends to flow through quickly to earnings. That creates the potential for strong upside during favourable market conditions.

There are also broader themes supporting demand. The ongoing energy transition continues to drive interest in electric vehicles and battery storage. And with war in the Middle East influencing fuel markets, there is increasing attention on energy security and alternative solutions, which could support lithium demand over time.

For investors who want direct exposure to that theme, PLS offers a clean and focused way to access it.

Rio Tinto: Scale, diversification, and consistency

Rio Tinto brings a very different profile.

It operates across iron ore, copper, aluminium, and lithium, with a global portfolio of tier-one assets. That diversification creates multiple sources of earnings and reduces reliance on any single commodity.

The scale of the business is also significant. In its FY25 results, Rio Tinto delivered underlying EBITDA of US$25.4 billion, supported by strong production across key commodities and continued operational discipline.

The company has a long track record of returning capital to shareholders, with dividends paid at the top end of its payout range over the past decade. And its latest result continued this trend.

There is also a clear pathway for growth. Rio Tinto continues to invest in copper and lithium projects, alongside its core iron ore operations. Its pipeline includes developments that could support production growth over the coming years, while maintaining a strong balance sheet and disciplined capital allocation.

For me, this is a business that combines scale with adaptability.

Valuation

Based on CommSec consensus estimates, PLS shares are trading on around 16 times FY27 earnings, while Rio Tinto shares sit closer to 19 times FY27 earnings.

Although this suggests that PLS shares are better value, it is worth remembering that Rio Tinto usually trades at a premium. This reflects its scale, diversified earnings base, and long track record of delivering through different commodity cycles.

And for me, that premium feels justified.

Rio Tinto provides exposure to iron ore, copper, aluminium, and lithium, alongside a pipeline of projects that can support future growth. It also generates significant cash flow and continues to return capital to shareholders over time.

PLS has the potential to deliver stronger returns in a favourable lithium environment, but its single-commodity exposure means it lacks diversification and could be deemed higher risk.

As a result, I would lean toward Rio Tinto as the better buy today due to its broader exposure and more consistent earnings profile.

Foolish takeaway

Both companies are benefiting from strong commodity demand and are executing well.

PLS offers a focused way to gain exposure to lithium and the energy transition, with the potential for strong upside when conditions are supportive. Rio Tinto brings scale, diversification, and a long history of delivering returns across cycles.

For me, Rio Tinto shares stand out as the better buy right now, supported by its broader earnings base and ability to perform across different market environments.

The post PLS vs Rio Tinto shares: Which is the better buy? appeared first on The Motley Fool Australia.

More reading

• ASX lithium shares rally as oil shock highlights EV appeal
• 6 ASX 200 shares downgraded by the experts this week
• ASX 200 shares with renewed buy ratings this week
• 3 ASX 200 titans charging to new one-year-plus highs today
• Why the PLS share price just hit an all-time high

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a small decline. The benchmark index fell 0.1% to 8,946.9 points.

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

ASX 200 expected to jump

The Australian share market looks set for a strong start to the week following a good finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 82 points or 0.85% higher. In the United States, the Dow Jones was up 1.8%, the S&P 500 rose 1.2%, and the Nasdaq jumped 1.5%.

Oil prices crash

It could be a poor start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices crashed on Friday night. According to Bloomberg, the WTI crude oil price was down 11.45% to US$83.85 a barrel and the Brent crude oil price was down 9.1% to US$90.38 a barrel. This was driven by news that the Strait of Hormuz is open again. However, conflicting news over the weekend could mean oil prices reverse these declines when Asian markets open.

TechnologyOne shares downgrade

TechnologyOne Ltd (ASX: TNE) shares are fairly valued according to analysts at Bell Potter. This morning, the broker has downgraded the enterprise software provider’s shares to a hold rating with an improved price target of $31.00 (from $29.00). It said: “We downgrade our recommendation on Technology One from BUY to HOLD given the rally in the share price to above our target price. We believe the stock now looks fairly valued on FY26 and FY27 EV/EBITDA multiples of c.32x and 28x which [we] note are the highest in our coverage of S&P/ASX 100 technology stocks and well above that of WiseTech Global on c.22x and 18x.”

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good start to the week after the gold price stormed higher on Friday night. According to CNBC, the gold futures price was up 1.5% to US$4,879.6 an ounce. This was also driven by the reopening of the Strait of Hormuz. It is possible this gain could also reverse in Asian trade today.

Netwealth given accumulate rating

In response to its quarterly update, Morgans has put an accumulate rating on Netwealth Group Ltd (ASX: NWL) shares with a $29.00 price target. It said: “Despite ongoing volatility and uncertainty tied to a US/Middle East conflict and a potential resolution, market momentum has recovered from peak pessimism in the March Quarter, with the ASX All Ordinaries +5.6% month-to-date in April’26, which will have seen FUA growth momentum improve post quarter end. Looking through this near-term volatility NWL remains on track deliver solid growth FY26F and well placed to capitalised on the long runway of opportunity ahead. We retain our ACCUMULATE rating, with a Price target of $29.00/sh.”

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

More reading

• A 2026 market crash could be a once-in-a-decade chance to build a $1 million ASX portfolio
• Top brokers name 3 ASX shares to buy next week
• ASX 200 tech shares rocket 13% as long-awaited sector rebound accelerates
• Which ASX 200 tech stock has Bell Potter just downgraded?
• The tech rally is back: here are 5 ASX shares leading the charge

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

AGL Energy Ltd (ASX: AGL) shares are an intriguing choice for passive income, given how big the dividends are expected to be in the next few years.

AGL supplies around 4.7 million customers, with Australia’s largest private electricity generation portfolio within the National Electricity Market, including coal and gas-powered generation, renewable energy sources such as wind, hydro and solar, as well as batteries, and other firming and storage technology.

The business has seen earnings volatility in the last few years amid the rapidly changing operating environment.

But, the business saw profit stabilise in the FY26 first-half, which allowed for a slight dividend increase to 24 cents per security. Following that, let’s look at where analysts think the dividend will go for owners of AGL shares.

FY26

In its FY26 half-year result, the business reported that its underlying operating profit (EBITDA) was flat year over year at $1.09 billion and underlying net profit after tax (NPAT) declined 6% to $353 million.

Total AGL customer services increased by 108,000 to 4.7 million, while total generation volume declined 2.8% to 15.4 TWh. AGL also reported that its development pipeline increased to 11.3GW.

Kaluza – the software business that AGL is invested in – signed an agreement with ENGIE to deploy its energy intelligence platform.

The business also announced that construction has started on the 500MW Tomago battery and the first 250 MW of the Liddell battery is targeted for the third quarter of FY26, while the entire 500MW is targeted for the fourth quarter of FY26.

AGL also narrowed its profit guidance range for FY26. Underlying operating profit (EBITDA) is guided to be between $2 billion and $2.18 billion, while underlying net profit after tax is expected to be between $500 million to $700 million, which is quite a large range.

The company is targeting $50 million of sustainable net operating cost reductions in FY27.

The projection on Commsec suggests the business could pay an annual dividend per AGL share of 49 cents. That would translate into a grossed-up dividend yield of 7.3%, including franking credits at the time of writing.

FY27

The business could deliver investors a very small increase in the dividend per AGL share in the 2027 financial year.

AGL could deliver an annual dividend per share of 49.2 cents per share in the 2027 financial year, which would be virtually the same yield as FY26, but would represent a dividend increase nonetheless.

FY28

The final year of these projections could see a significant increase of the payout (as well as the profit).

The forecast on Commsec suggests the business could increase its annual payout per AGL share to 55.1 cents in the 2028 financial year.

If the business does deliver that forecast amount, it would translate into a grossed-up dividend yield of 8.3%, including franking credits, at the time of writing.

The post Here’s the dividend forecast out to 2028 for AGL shares appeared first on The Motley Fool Australia.

More reading

• Guess which ASX 300 energy stock is surging today on big AGL news
• Buy, hold, sell: AGL, Origin Energy, and Woodside shares
• Why are AGL shares rising today?
• AGL Energy gives green light to $490m Kwinana gas project
• 3 ASX dividend shares yielding 5%+ that still have growth potential

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.

Betashares will pay ASX exchange-traded fund (ETF) investors their next lot of distributions (dividends) today.

People participating in the distribution reinvestment plan (DRP) for any of these ASX ETFs will receive their new units today.

Here are the final distributions for investors receiving cash dividends, and the DRP prices for those who are buying more units.

We have rounded the amounts to the nearest cent.

Finalised dividend amounts for ASX DHHF and other ETFs

The Betashares Australia 200 ETF (ASX: A200) will pay a quarterly dividend of $1.20 per unit with 87% franking. The DRP price is $141.63.

A200 ETF tracks the performance of the benchmark S&P/ASX 200 Index (ASX: XJO) before costs and fees.

The Betashares Australian Dividend Harvester Active ETF (ASX: HVST) will pay a monthly dividend of 6 cents per unit with 71% franking. The DRP price is $12.87.

The Betashares S&P Australian Shares High Yield ETF (ASX: HYLD) will pay a monthly dividend of 12 cents per unit with 66% franking. The DRP price is $32.42.

Betashares Nasdaq 100 Yield Maximiser Complex ETF (ASX: QMAX) will pay a monthly dividend of 17 cents per unit. The DRP price is $27.49.

The Betashares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX) will pay a monthly dividend of 4 cents per unit with 45% franking. The DRP price is $7.34.

Betashares S&P 500 Yield Maximiser Complex ETF (ASX: UMAX) will pay a monthly dividend of 11 cents per unit. The DRP price is $24.73.

The Betashares Diversified All Growth ETF (ASX: DHHF) will pay a quarterly dividend of 14 cents per unit with 72% franking. The DRP price is $38.09.

Betashares Ethical Diversified Balanced ETF (ASX: DBBF) will pay a quarterly dividend of 13 cents per unit. The DRP price is $24.60.

The Betashares Ethical Diversified Growth ETF (ASX: DGGF) will pay a quarterly dividend of 9 cents per unit. The DRP price is $26.26.

Betashares Ethical Diversified High Growth ETF (ASX: DZZF) will pay a quarterly dividend of 4 cents per unit. The DRP price is $28.18.

The Betashares FTSE Global Infrastructure Shares Currency Hedged ETF (ASX: TOLL) will pay a quarterly dividend of 21 cents per unit. The DRP price is $26.54.

Betashares Australian Government Bond ETF (ASX: AGVT) will pay a monthly dividend of 15 cents per unit. The DRP price is $40.43.

The Betashares US Treasury Bond 7-10 Year Currency Hedged ETF (ASX: US10) will pay a quarterly dividend of 40 cents per unit. The DRP price is $50.81.

Betashares Global Aggregate Bond Currency Hedged ETF (ASX: WBND) will pay a quarterly dividend of 45 cents per unit. The DRP price is $49.53.

The post Own ASX DHHF or other Betashares ETFs? It’s a big day for you! appeared first on The Motley Fool Australia.

More reading

• Has the ASX 200 or S&P 500 been a better investment this year?
• 3 excellent ASX ETFs for income investors to buy
• 2 ASX dividend shares yielding 7% or more
• New to investing? 3 ASX ETFs to set and forget for 10 years
• Why now could be the time to buy these popular ASX ETFs

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. is short shares of BetaShares S&P 500 Yield Maximiser Fund. The Motley Fool Australia has positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

WiseTech Global Ltd (ASX: WTC) shares are starting to regain momentum.

On Friday, the stock finished up 2.85% to $46.18, and has climbed close to 20% over the past week. Even after that move, it remains about 32% lower in 2026, and still sits a long way below its July 2025 high of $121.31.

That gap between price and underlying performance is what stands out. In my view, this is one of the clearest buying opportunities on the ASX right now.

A business that keeps getting stronger

WiseTech sits at the centre of global trade through its CargoWise platform, which is used by freight forwarders, customs brokers, and logistics operators worldwide.

This is not software that can be easily swapped out. Once embedded, it becomes part of how a business runs its day-to-day operations. That drives recurring revenue, supports pricing power, and keeps customer churn very low.

What makes this even more compelling is the direction of the industry. Supply chains are becoming more complex, more regulated, and more reliant on digital systems. And that plays directly into WiseTech’s strengths.

The current price does not reflect the business

The decline in WiseTech’s share price has been driven by external factors rather than a deterioration in the business.

Tech stocks have been under pressure due to higher interest rates, valuation resets, and ongoing global uncertainty. Concerns around artificial intelligence (AI) and competition have also weighed on sentiment across the sector.

On top of that, geopolitical tension has kept investors cautious around anything linked to global trade. The conflict involving the US and Iran has raised concerns about key shipping routes, including the Strait of Hormuz.

But none of this has changed what WiseTech is doing or how its platform is being used.

If anything, it highlights how critical efficient supply chains are. As conditions stabilise, the same factors that have weighed on sentiment could reverse, and high-quality software companies are usually the first to benefit.

Why I would put $10,000 into WiseTech

WiseTech’s latest half-year result confirmed that the business is still performing strongly. Revenue continued to grow, margins remained solid, and customer retention stayed high.

This is a company that continues to invest in its platform, expand globally, and build out new capabilities. It is doing the work that supports long-term earnings growth.

At the same time, the share price is still reflecting a much more cautious view.

That creates a huge imbalance. You have a high-quality global business with strong fundamentals trading well below where it was less than a year ago.

If the company continues to execute and sentiment improves, there is clear potential for a re-rating. Broker targets remain materially higher than the current price, which supports my view.

Given the size of the previous decline, a move back toward higher levels would not require perfect conditions. It just requires confidence to return to the market.

Foolish takeaway

WiseTech’s recent move suggests buyers are starting to step back in.

The business remains strong, the growth outlook is unchanged, and the global opportunity has not changed. What has changed is the price investors are being asked to pay.

In my view, sentiment has created a very strong buying opportunity here.

If conditions settle and the company keeps delivering, the current level could look like a very attractive entry point in hindsight. That is why this is the ASX stock I would back with $10,000 right now.

The post If I had $10,000, this is the ASX stock I’d buy right now appeared first on The Motley Fool Australia.

More reading

• How to build a $500,000 ASX share portfolio step by step
• ASX 200 tech shares rocket 13% as long-awaited sector rebound accelerates
• Which ASX 200 tech stock has Bell Potter just downgraded?
• The tech rally is back: here are 5 ASX shares leading the charge
• 3 ASX 200 stocks leaping higher in this week’s slumping market

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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Once you reach your 50s, you’ll probably start thinking about what it’ll take for you to stop working and start your retirement. This is the age bracket where you’ll need to start fine tuning your retirement strategy and think about maximising your superannuation balance.

Some might even think about how they can retire much earlier than the average age of 65. 

But while it’s not impossible to retire at age 55, it’s not as straightforward as you might think.

Let me explain why.

The price of retirement versus the average balance at age 55

According to data from the Association of Superannuation Funds (ASFA), a comfortable retirement is one defined as a good standard of living. 

It typically would include top-level private health insurance, ownership of a reasonable car brand, regular leisure activities, funds for home repairs and renovations, occasional meals out, and an annual domestic trip. 

It also assumes you own your home outright and that you’re receiving the age pension.

ASFA has calculated that a comfortable retirement will 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.

Compare this figure to the average superannuation balance for Australians aged 55.

For men aged 55-59, the average balance is $319,743 and for women it is just $242,945.

As you can see, the average superannuation at age 55 isn’t enough to fund a comfortable retirement. In fact, the figures are very far apart.

But the average balance isn’t the only thing preventing 55 year old Aussies from retiring.

Accessing your superannuation balance in retirement

Age 60 is considered the preservation age. This is the milestone where Australians can start living off their superannuation provided they have stopped working.

Once you hit age 65, you can access your superannuation regardless of whether you’re earning an income or not. You can withdraw it as a lump sum, start an income stream or do a combination of both.

Then at age 67 you can access the Age Pension payment, if you meet eligibility requirements. Many government or association estimates around retirement are also based on the understanding that you’ll retire at age 67.

At age 55, none of these are available to you. That means in order to retire you’d need other savings or income to fund yourself for at least the next five years.

Also, by retiring 10 years ahead of the average age and 12 years ahead of the age used to calculate retirement estimates, your money needs to stretch a lot further.

So, yes it’s possible to retire at 55, but not with any superannuation, let alone the average balance at that age.

The post Could you retire at 55 with the average superannuation balance? Here’s what the numbers say appeared first on The Motley Fool Australia.

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• $10,000 invested in Zip shares one month ago is now worth…

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.

Vanguard will pay the latest distributions (dividends) to investors in their ASX exchange-traded funds (ETFs) today.

This includes investors who hold the most popular ASX ETF in the market, the Vanguard Australian Shares Index ETF (ASX: VAS).

Investors participating in the distribution reinvestment plan (DRP) for any of these ASX ETFs will receive their new allocations today.

Here are the final distribution amounts for investors receiving cash dividends, and the DRP prices for those who are reinvesting.

Own Vanguard ETFs? Here’s how much you’ll get today

VAS ETF, which tracks the performance of the S&P/ASX 300 Index (ASX: XKO), will pay 84.788 cents per unit. The DRP price is $40.5596.

Vanguard Australian Shares High Yield ETF (ASX: VHY), which tracks the FTSE Australia High Dividend Yield Index, will pay 81.1358 cents per unit. The DRP price is $81.548.

Vanguard Australian Fixed Interest Index ETF (ASX: VAF) will pay 29.4897 cents per unit. This ASX ETF tracks the Bloomberg AusBond Composite 0+ Yr Index. The DRP price is $44.9409.

The Vanguard Australian Property Securities Index ETF (ASX: VAP) will pay 50.5047 cents per unit. This ASX ETF allows investors exposure to bricks and mortar via the S&P/ASX 300 A-REIT Index. The DRP price is $83.3674.

What about ETFs holding international shares?

Vanguard MSCI Index International Shares ETF (ASX: VGS) is the largest exchange-traded fund holding diversified international shares on the ASX. It provides exposure to 1,500 stocks in developed nations ex-Australia.

ASX VGS will pay 39.4131 cents per unit in dividends. The DRP price is $143.2044.

The Vanguard Diversified High Growth Index ETF (ASX: VDHG) will pay 64.6897 cents per unit. This ASX ETF provides exposure to 16,000 ASX and international shares. The DRP price is $70.7673.

Vanguard FTSE Europe Shares ETF (ASX: VEQ), which tracks the FTSE Developed Europe All Cap Index (with net dividends reinvested) in Australian dollars, will pay 27.0768 cents per unit. The DRP price is $85.3474.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM), which tracks the MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars, will pay 176.7237 cents per unit. The DRP price is $70.6349.

Vanguard Ethically Conscious International Shares Index ETF (ASX: VESG) will pay 43.9277 cents per unit. This ASX ETF tracks the FTSE Developed ex Australia Choice Index (with net dividends reinvested) in Australian dollars. The DRP price is $102.14.

Vanguard S&P 500 US Shares Index ETF (ASX: V500) tracks the US benchmark S&P 500 Index (SP: .INX).

ASX V500 will pay 2.6468 cents per unit in dividends. The DRP price is $48.9889.

The post Vanguard ETF dividends to be paid today appeared first on The Motley Fool Australia.

More reading

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• 5 excellent ASX ETFs to buy next week
• Why I’d buy and hold NDQ and these ASX ETFs for 10 years
• 3 reasons why the Vanguard MSCI Index International Shares ETF is a great buy for wealth building
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Motley Fool contributor Bronwyn Allen has positions in Vanguard Msci Index International Shares ETF. 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 recommended Vanguard Australian Shares High Yield ETF 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.

The ASX dividend share space gives investors interested in passive income various avenues to find investments that tick the boxes.

For me, a big dividend yield is not one of the first things that I look for. Instead, I want to see that the business is regularly increasing its payout. That’s a good sign that the business is headed in the right direction and growing its underlying earnings/value.

Plus, having your investment income regularly grow is a good defence against inflation. So, I’m going to mention three businesses that have regularly increased their payouts, though none of them has increased their payouts for as many years in a row as Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of the leading retail businesses in Australia, with a number of brands under its wings including Bunnings, Kmart, Officeworks and Priceline. It also has a compelling chemicals, energy and fertiliser business called WesCEF.

The ASX dividend share has increased its dividend each year since the onset of COVID-19, following the divestment of the Coles Group Ltd (ASX: COL) business several years ago. It grew its payout in FY21 and hasn’t stopped hiking the dividend.

Wesfarmers has benefited from the expansion of both the store network and product ranges at Kmart and Bunnings, which has helped improve its profitability and increase the return on capital (ROC).

According to CMC Invest, it’s expected to grow its annual payout to $2.206 per share in FY26, translating into a grossed-up dividend yield of 4.3%, including franking credits, at the time of writing.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store is the owner of a number of premium youth apparel businesses, including Universal Store and Perfect Stranger.

Its success has been driven by solid like-for-like growth at its existing store network and regular expansion of its store network. Perfect Stranger is delivering excellent total sales growth, I’m expecting it to drive the company’s overall success in the coming years.

The ASX dividend share has increased its annual dividend per share each year since it first started paying a dividend in FY21.

The projection on CMC Invest suggests the business could pay an annual dividend per share of 42.5 cents in FY26. That translates into a grossed-up dividend yield of 8.1%, including franking credits, at the time of writing.

APA Group (ASX: APA)

APA has one of the longest records when it comes to passive income growth.

This ASX dividend share owns various energy infrastructure, including a huge gas pipeline network, gas-powered energy generation and other gas infrastructure, renewable energy generation and electricity transmission assets.

With most of its revenue linked to inflation and steady expansion of its asset portfolio, the business has been able to generate more cash flow and fund higher distributions.

The business is expecting to increase its annual payout to 58 cents per security in FY26, which translates into a distribution yield of 5.8%.

The post 3 ASX dividend shares raising dividends like clockwork appeared first on The Motley Fool Australia.

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• The ASX dividend stocks I’d trust for long-term income
• How to build massive wealth with ASX shares

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. 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 Apa Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Universal Store and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.