Tag: Stock pick

The S&P/ASX 200 Index (ASX: XJO) has been seesawing for most of Wednesday.

After climbing as high as 8,791 points earlier in the session, the benchmark gave up its gains and slipped into negative territory.

But the selling didn’t last, with the ASX 200 recovering to 8,769 points in late afternoon trade, putting it 0.13% higher for the day.

That’s a recovery of around 26 points from today’s low of 8,742, with mining shares helping offset weakness across several other sectors.

The index is now up approximately 1.1% over the past week, although it remains 3.2% lower over the past month.

So, is a recovery finally getting underway?

A mixed finish on Wall Street

Investors didn’t get much direction from Wall Street overnight, with the major US indices finishing Tuesday’s session mixed.

The Dow Jones Industrial Average Index (DJX: .DJI) slipped 0.36%, while the S&P 500 Index (SP: .INX) finished basically flat.

Meanwhile, the Nasdaq Composite Index (NASDAQ: .IXIC) gained 0.45%, reaching another record close as tech shares continued to attract buyers.

US banking shares struggled, with the financial sector falling almost 2% and weighing on the wider market.

Oil prices also moved lower, with Brent crude falling below US$100 a barrel amid hopes of improved supply from the Middle East.

Miners are keeping the ASX 200 afloat

Mining shares are providing much of the support today, with several major resource companies trading higher.

BHP Group Ltd (ASX: BHP) has climbed 1.54% to $62.16, while Rio Tinto Ltd (ASX: RIO) is up 0.95% to $167.88.

BHP is also paying its final dividend of US$0.99 per share today, following its ex-dividend date on 3 September.

The buying has extended to gold miners, with several of the larger producers also moving higher.

Northern Star Resources Ltd (ASX: NST) has gained 4.17% to $22.85, and Evolution Mining Ltd (ASX: EVN) is trading 2.89% higher at $14.05.

Banks and energy shares head lower

The major banks are heading in the opposite direction, with Commonwealth Bank of Australia (ASX: CBA) slipping 0.81% to $151.09.

ANZ Group Holdings Ltd (ASX: ANZ) has fallen 1.21% to $37.69, while Westpac Banking Corp (ASX: WBC) is down 0.97% to $34.57.

Energy shares are also struggling following the overnight decline in oil prices, with Woodside Energy Group Ltd (ASX: WDS) falling 2.07% to $31.02.

Elsewhere, Insurance Australia Group Ltd (ASX: IAG) has dropped 2.11% to $7.90 after the ACCC blocked its proposed $1.35 billion acquisition of RAC Insurance.

The ACCC said the proposed acquisition would substantially lessen competition in Western Australia’s motor vehicle and home insurance markets.

Is a recovery on the table?

The ASX 200 has now recovered more than 100 points from its 15 September low of 8,657 points.

However, the benchmark remains well below its August high of 9,220 points, which means there’s still considerable ground to make up.

Investors are also looking ahead to the Reserve Bank’s next interest rate decision on 29 September.

The cash rate currently stands at 4.35%, with Governor Michele Bullock warning that upside risks to inflation may be materialising.

The post ASX 200 turns higher after a rocky start. Is a recovery on the table? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Best performing ASX 200 stock is up 350%. Can it keep rising?
• Average superannuation balances at age 42, 52 and 62 in Australia
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Tuesday

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 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.

It’s been a difficult September for PLS Group Ltd (ASX: PLS) shareholders, despite the lithium miner’s impressive gains over the past year.

The stock has climbed around 85% over the past 12 months, but has fallen more than 22% since closing at $5.48 on 1 September.

Today is offering some relief, though, with the PLS share price rising 2.79% to $4.245 in mid-afternoon trade.

However, despite the company’s improving financial performance, short sellers are still betting heavily against the stock.

In fact, PLS remains one of the most heavily shorted stocks on the ASX.

So, why are traders betting against the lithium miner?

The bears are still circling

According to the latest short-selling data, PLS is currently the 9th most shorted stock on the ASX.

As of 16 September, approximately 11.07% of its shares were held in short positions, representing more than 357 million shares.

That’s a substantial amount of money betting on the lithium miner’s share price falling further.

For those unfamiliar, short sellers borrow shares and sell them, hoping to buy them back at a lower price and pocket the difference.

With lithium prices still volatile, another pullback could take a decent chunk out of PLS’ earnings.

That’s something to watch as the company prepares to lift production again in FY27.

October could be a big test

PLS announced today that its September quarterly activities report will be released on 27 October.

The update will show how the miner is tracking against its FY27 production targets.

The company is forecasting production of between 1.03 million and 1.10 million tonnes this financial year, up from 879,500 tonnes in FY26.

Much of that increase will come from the restart of its Ngungaju processing plant, which began ramping up in July.

PLS is also expecting operating costs of between $575 and $625 per tonne, alongside capital expenditure of $620 million to $685 million.

Personally, I’ll be watching production, realised lithium prices, and cash generation closely.

The short interest is already above 11%, and a solid quarterly result could put some pressure on those betting against the stock.

Could short sellers get caught out?

While short sellers are betting on further weakness, analysts are pointing to a considerably higher share price.

According to TipRanks, the average 12-month price target from 12 analysts is $5.55, implying about 31% upside from today’s price.

7 analysts have buy ratings, 3 recommend holding, and 2 have sell ratings.

With so many shares currently shorted, I think the next few weeks could be very interesting.

The post PLS shares have surged 85% in a year. So why are short sellers circling? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Could this evolving development smash ASX lithium shares like Liontown, Mineral Resources and PLS?
• Is the PLS Group share price a buy in September?
• ASX 200 drops again as selling continues
• Buy, hold, sell: Magellan, Iluka Resources, PLS Group shares

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 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.

Anyone who bought ANZ Group Holdings Ltd (ASX: ANZ) shares near their 52-week low of $32.46 would be sitting on a pretty decent gain today.

The banking giant has recovered more than 16% from that level, with its shares gaining around 13.5% over the past year and almost 7% since January.

Wednesday hasn’t been quite as positive, with the ANZ share price slipping 1.05% to $37.75 in midday trade.

That leaves the stock around 8% below its 52-week high of $41.

While ANZ has made progress with its turnaround, I think much of that improvement is already reflected in the share price.

Here’s why.

ANZ’s turnaround is gaining traction

ANZ’s latest quarterly results show some encouraging signs, although earnings growth remains fairly modest.

In its August trading update, ANZ reported cash profit of $1.90 billion, up just 1% compared with the quarterly average from the first half.

However, excluding a provision relating to a New Zealand class action, cash profit increased 5% to $1.98 billion.

Business and Private Banking lending grew 4%, while net interest income from its core banking operations increased 2%.

Operating expenses also fell 3% after excluding the legal provision, with management continuing to target a 5% reduction in annual costs.

Meanwhile, ANZ is progressing with its integration of Suncorp Bank, with customer migration scheduled for completion by June 2027.

The bank expects the integration to deliver approximately $500 million in annual pre-tax cost savings by FY29.

Is ANZ getting too expensive?

At $37.75, ANZ is trading on a price-to-earnings (P/E) ratio of around 19.3, with a trailing dividend yield of approximately 4.4%.

The dividend is appealing, but I’m not convinced the current valuation leaves much room for further upside.

TipRanks has an average 12-month price target of approximately $35.40 across 8 analysts, implying around 6% downside from today’s price.

The ratings are fairly mixed, with 3 buys, 4 holds, and 1 sell.

Citi is among the more optimistic brokers, with a $39.25 price target, while Macquarie has a $33.50 target.

Personally, I think ANZ needs to show more meaningful earnings growth before I’d be comfortable paying close to 20 times earnings.

Would I buy ANZ shares today?

Not at $37.75 apiece.

I’d be more interested if the share price pulled back towards $35, particularly if the bank continues delivering on its turnaround plans.

The next opportunity to assess that progress comes in November, when ANZ is scheduled to release its FY26 results.

The post ANZ shares have climbed 13% in a year. Is there still room to run? appeared first on The Motley Fool Australia.

More reading

• How many ANZ shares do I need to buy for $9,000 of passive income?
• Which big 4 bank stock will rise the most before the end of 2026?
• Down 15% and paying record dividends: Are CBA shares now a good buy for passive income?
• Westpac, ANZ, NAB or CBA shares? Which ASX bank stock should I buy for $5,000 a year in passive income?
• How much passive income can I earn investing $400,000 of my superannuation buying ASX shares?

Citigroup is an advertising partner of Motley Fool Money. 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 Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Viva Energy Group Ltd (ASX: VEA), Codan Ltd (ASX: CDA), and AMP Ltd (ASX: AMP) shares have all climbed to fresh annual highs in Wednesday lunchtime trade. 

Here’s why the shares are peaking today, and what brokers expect next.

Viva Energy shares

Viva Energy shares have climbed around 1% and are trading at a two-year high of $3.24 a piece, at the time of writing. The increase means the shares have jumped roughly 14% over the past month and are now up around 55% year to date.

As Australia’s second-largest vertically integrated refined transport fuel supplier, Viva Energy has enjoyed tailwinds from tight fuel supply and rising prices through 2026 as conflict in the Middle East constrains the flow of oil in and out of the region. 

It looks like investors are still flocking to the stock after the company posted a strong first-half result in late August. It announced record EBITDA results of $774.4 million for the half year ending June 2025, up a huge 154% from the same period last year. Its NPAT also boomed 493% higher to $371.1 million.

The news followed an update from the company in late July, in which it said its Geelong refinery had successfully returned to 90% of its operations after being affected by a fire in April. 

Going forward, it looks like the experts are bullish that the shares can keep rising. TradingView data shows the majority (six out of 10) have a buy/strong buy rating on the shares. Although after the latest rally, the $3.04 average target price now implies a potential 6% downside ahead.

AMP shares

AMP shares are up around 3% at the time of writing this morning, to an eight-year high of $2.61 per share. After the financial services shares dipped to an annual low of $1.16 in March, they’ve mostly consistently climbed higher to the time of writing. They’re now up 43% for the year to date.

AMP shares have rallied higher since March on the back of a rebound in investor sentiment. The company has managed to execute an operational turnaround this year, enabling it to improve its earnings and return some capital to shareholders.

It has posted strong financial results; its assets under management (AUM) have climbed; its wealth business has improved; it has boosted its interim dividend; and it has also completed a series of share buybacks.

Last month, the company announced a 33% increase in underlying NPAT for the first half of FY26, and an 8.2% year-on-year increase in AUM to $167.6 billion. Management credited its AUM growth to momentum in AMP’s wealth and retirement businesses.

Going forward, the experts are still bullish on the shares. According to TradingView data, the majority (seven out of nine) have a buy/strong buy rating on AMP shares. But after the rally over the past six months, the $2.57 target price implies around a 2% downside ahead, at the time of writing.

Codan shares

Codan shares have climbed around 2% higher at the time of writing, to an all-time high of $52.49. The shares have trended upwards throughout most of 2026 so far and are now up a huge 81% year to date.

The company, which develops electronic solutions for government, military, corporate, and consumer markets globally, has climbed higher this year amid continued geopolitical volatility.

Its communications segment, which designs drones and defence and public-safety equipment, benefited from a strong price rally, driven by soaring demand for defence-related stocks earlier this year.

The shares were propelled higher by a strong FY26 result last month, with net profit up 69% and revenue up 30%.

And the company believes it has another record year ahead. Earlier this week, it announced it is targeting full-year revenue growth of around 20% for FY27 and noted that the financial year has started with positive momentum.

Investors are clearly thrilled, and experts are also very optimistic that the company can continue to grow.

TradingView data shows that the majority (five out of nine) have a buy/strong buy rating on the stock. The average $53.17 target price implies around 1% upside. Although some think the shares could jump another 10% to $57.56 each, at the time of writing.

The post Viva Energy, Codan, AMP shares reach 52-week highs: How much higher can they go? appeared first on The Motley Fool Australia.

More reading

• Buy, sell, hold: AMP, Wesfarmers, Woodside shares
• Codan shares hit a new record high after the company predicts another strong year
• Codan vs Pro Medicus: Which ASX growth stock is better value?
• 7 ASX 200 shares with reaffirmed buy ratings this week
• Here are the top 10 ASX 200 shares today

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.

New Hope Corp Ltd (ASX: NHC) and BHP Group Ltd (ASX: BHP) shares have not only smashed the benchmark returns over the past five years, they’ve also delivered some market-beating passive income.

Since 24 September 2021, the S&P/ASX 200 Index (ASX: XJO) has gained 19.4%.

Reflecting the importance of passive income, the S&P/ASX 200 Gross Total Return Index (ASX: XJT), which includes all cash dividends reinvested on the ex-dividend date, has gained 44.1% over this same period.

So, just how much would you have earned from a $5,000 investment in New Hope and BHP shares five years ago?

Let’s dig in.

Drilling into BHP shares for passive income

On 24 September 2021, you could have bought shares in the ASX 200 mining giant for $33.59 apiece. So, your $5,000 investment would have netted you 148 shares, with enough change left over for a cheeseburger.

Now you would have done quite well on the capital gains front alone. During the Wednesday lunch hour, BHP shares are changing hands for $62.11, up 84.9% in five years. And if you sold those 148 shares today, you’d receive $9,192.

As for that passive income, if you’d owned Australia’s largest mining stock – and now the biggest stock on the ASX – for the last five years, you would have received (or shortly will) the last 10 fully-franked dividends. BHP stock traded ex-dividend on 3 September. If you held the miner at market close on 2 September, you can expect to get paid today.

Turning to my trusty calculator, those 10 fully-franked dividend payouts work out to $13.583 a share.

So, the 148 BHP shares you bought for $5,000 five years ago would already have delivered $2,010 in passive income. And that’s atop those share price gains, not to mention the cheeseburger!

Which brings us to…

Tipping $5,000 into New Hope shares

Five years ago, New Hope shares were trading for $2.38 each. Meaning for $5,000, you could have bought 2,100 shares in the ASX 200 coal stock.

And you wouldn’t have regretted it.

At the time of writing, New Hope shares are trading for $5.89, up 147.5% since 24 September 2021. And those 2,100 shares you bought are now worth $12,369.

Over this time, you’d also have received (or shortly will) the last 10 fully-franked New Hope dividends. New Hope stock traded ex-dividend on Monday. If you owned shares in the Aussie coal miner at market close on Friday, you can expect to receive that passive income payout on 15 October.

All told, those last 10 New Hope dividend payments equate to $2.69 a share.

Meaning the 2,100 New Hope shares you picked up for $5,000 five years ago will already have paid out $5,649 in passive income, with tax benefits from those franking credits.

The post Bought $5,000 worth of New Hope and BHP shares 5 years ago? Guess how much passive income you’ve already earned! appeared first on The Motley Fool Australia.

More reading

• Why I’d invest $50,000 of superannuation into these 3 top ASX ETFs
• Soul Patts vs BHP: Which ASX share is best for beginners?
• How much passive income can I earn off an $800,000 superannuation balance?
• Are the BHP and CBA share price headed for parity?
• 3 reasons to buy BHP shares for 2027

Motley Fool contributor Bernd Struben 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.

Xero Ltd (ASX: XRO) shares have fallen further into the red in Wednesday lunchtime trade.

At the time of writing, the ASX tech shares are down around 5% to a seven-year low of $58.28 a piece.

Today’s slide means the shares have now shed 34% of their value since spiking to a six-month high of $88.95 in August.

While it looked like the cloud-based accounting software company was finally rebounding from a huge share price crash in the second half of 2025, investor sentiment has reversed, and the shares have now dropped to a fresh multi-year low.

Xero shares are now down 48% year to date and 64% lower than 12 months ago.

What has happened to Xero shares over the past month?

Xero shares were caught up in a broad-based sell-off of technology shares earlier this year, when investors were spooked that AI could replace the core services of companies like Xero.

The shares rebounded strongly through July and most of August, driven by an investor rotation back into growth and technology stocks. It looks like investors started to become more confident that the company can keep growing revenue and become more profitable.

Xero’s most recent FY26 results, posted in May, confirmed that, too. The company reported a strong increase in its FY26 revenue, which it said was helped by subscriber growth and higher prices. 

There hasn’t been any price-sensitive news out of Xero to explain why the share price changed course over the past month.

It’s possibly the result of profit-taking investors taking their gains off the table after the July-August rally, combined with higher-than-expected inflation figures and news that the RBA could hike interest rates again next week. Investors have rotated away from growth stocks and into safer, more reliable assets amid fears of another spike in sharemarket volatility.

And this sentiment shift acts as a strong headwind for companies like Xero.

Is there any chance of a rebound?

According to the experts, yes, there’s a good chance that Xero shares will rebound over the next 12 months. And some expect the upside to be significant.

The company has sticky subscription revenue and huge potential for growth both into new markets and with new offerings.

Market Index data shows the majority of brokers have a buy rating on the shares. The $112 average target price implies that the shares could jump another 94%, at the time of writing.

Sentiment is just as positive on TradingView. Out of seven analysts, six have a buy/strong buy rating and one rates the shares as a hold. But they all agree there will be an upside ahead.

The average $111.25 target price implies a potential 92% upside, while the maximum $143.88 implies that Xero’s shares have the potential to rebound 149%, at the time of writing.

The post Down 5% today to a 7-year low: What is going on with Xero shares? appeared first on The Motley Fool Australia.

More reading

• Should I invest $5,000 into WiseTech and Xero shares?
• How to build a $50,000 passive income from ASX shares
• Do these ASX technology shares have too much upside to ignore?
• Xero shares crash to a 7-year low after a brutal sell-off
• Why brokers think Xero shares could surge 130% from here

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

National Australia Bank Ltd (ASX: NAB) has long been popular with income investors, much like the rest of the big four banks.

The combination of large profits and fully franked dividends has made the banking sector an obvious place to look for passive income.

So, with NAB shares well below their recent highs, is it one of the best ASX dividend shares to buy?

Why I like NAB for income

One reason I like NAB shares is the company’s strong position in business banking.

The bank has significant exposure to small and medium-sized businesses across Australia, giving it a slightly different earnings mix from some of its major rivals.

I think that is attractive over the long term. As Australian businesses grow, borrow, invest, and manage their finances, NAB has an opportunity to grow alongside them.

Of course, banking earnings can still be affected by interest rates, competition, bad debts, and economic conditions.

But NAB remains a highly profitable business, and that gives it the capacity to return a meaningful amount of cash to shareholders.

For an income investor, that is ultimately what I want to see.

What could the dividend look like?

The current dividend forecasts look good to me.

Consensus estimates point to fully franked dividends of $1.70 per share in FY26 and $1.72 per share in FY27.

With NAB shares trading around $38.47 on Wednesday, those forecasts translate into prospective dividend yields of approximately 4.4% and 4.5%, respectively.

Eligible Australian investors may also benefit from the attached franking credits.

Is the NAB share price attractive?

NAB shares are trading well below their 52-week high of $49.45 and are now closer to their 52-week low of $35.48.

Consensus forecasts suggest earnings per share of $2.38 in FY26, rising to $2.54 in FY27.

At today’s price, that puts NAB on a PE ratio of roughly 16 times forecast FY26 earnings and 15 times FY27 earnings.

I think that looks reasonable for a profitable major bank that is expected to grow earnings while continuing to pay substantial dividends.

The lower share price also means investors buying today are getting a better prospective yield than they would have received near the 52-week high.

What would I watch?

Competition remains one of the main risks.

Australian banks compete aggressively for both loans and deposits, which can put pressure on margins.

A weaker economy could also lead to higher bad debts, particularly if households and businesses come under more financial pressure.

Those are risks I would keep an eye on, but they do not change my overall view at the current price.

Foolish takeaway

I still think NAB is one of the better ASX dividend shares to buy.

At around $38.47, the valuation looks reasonable to me, while forecast fully franked dividends offer a dividend yield of roughly 4.4% to 4.5%.

For investors looking for income from the banking sector, NAB would remain high on my list.

The post Is NAB one of the best ASX dividend shares to buy? appeared first on The Motley Fool Australia.

More reading

• Why I’d invest $50,000 of superannuation into these 3 top ASX ETFs
• If I invest $5,000 in NAB shares, what passive income will I receive in FY27?
• Which big 4 bank stock will rise the most before the end of 2026?
• Sell alert! Why this expert is calling time on Tabcorp and NAB shares
• Buy, hold, sell: Coles, NAB, CSL shares

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.

Exchange-traded funds (ETFs) can be a simple way to start investing without having to choose individual shares.

Betashares has plenty of funds available on the ASX, but I think these three are among the best to consider for beginners.

Here is why.

Betashares Diversified All Growth ETF (ASX: DHHF)

The DHHF ETF would be one of my first choices for someone who wants to keep things simple.

Rather than focusing on one country or sector, the fund invests across Australian and international shares.

That means a single investment can provide exposure to thousands of growth companies around the world.

I think this can be helpful for beginners because diversification is built into the fund. An investor does not need to decide how much money to put into Australian shares, US shares, or emerging markets and then continually rebalance everything themselves.

For someone investing with a long timeframe, I think the Betashares Diversified All Growth ETF offers a straightforward way to own a broad collection of businesses and benefit if global share markets grow over time.

Betashares Australia 200 ETF (ASX: A200)

The A200 ETF is another fund I think beginners could consider.

It tracks 200 of the largest stocks listed on the ASX, providing exposure to a large part of the Australian share market through a single investment.

That includes businesses operating across areas such as banking, resources, healthcare, telecommunications, retail, and technology.

I like how simple this makes investing, which is good for beginners. Instead of trying to decide which Australian shares will perform best, investors can own a broad selection and participate in the overall performance of the local market.

There is also an income angle. Many large Australian shares pay dividends, which means the fund can provide distributions alongside potential capital growth.

Betashares Global Quality Leaders ETF (ASX: QLTY)

For investors wanting more international exposure, I think the QLTY ETF is worth a look.

Rather than simply buying the world’s largest stocks, the fund looks for businesses displaying characteristics such as strong profitability, relatively stable earnings, and healthy balance sheets.

I like that approach because it focuses on companies that have already demonstrated financial strength.

The portfolio also gives Australian investors access to businesses and industries that are not well represented on the ASX. That can provide another source of long-term growth while reducing reliance on the Australian market.

For a beginner looking internationally, I think the Betashares Global Quality Leaders ETF provides an easy way to invest in a collection of established global businesses.

Foolish takeaway

I think all three of these Betashares ETFs make investing relatively easy.

The DHHF ETF provides broad diversification in one fund, the A200 ETF offers exposure to the Australian share market, and the QLTY ETF focuses on financially strong global businesses.

Overall, for a beginner, I think the most important thing is choosing an investment that makes sense to them and that they would be comfortable holding through the inevitable ups and downs of the share market.

The post 3 top Betashares ETFs for beginners to buy appeared first on The Motley Fool Australia.

More reading

• Where to invest $20,000 in ASX ETFs today
• ASX ETF market just surpassed $7 billion in net inflows – Here’s where the money is going
• 2 top ASX shares to buy and hold for the next decade
• Vanguard ETFs vs. Betashares ETFs: Who’s coming out on top?
• Are these 3 top Betashares ETFs a buy in September?

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.

Fortescue vs Commonwealth Bank shares: Which is better for passive income?

If you’re hunting for passive income from ASX blue chips, Fortescue Ltd (ASX: FMG) and Commonwealth Bank of Australia (ASX: CBA) are both giants, yet offer quite different flavours of dividend investing. Let’s stack them up side-by-side to see which could make the better addition to a passive income-focused portfolio.

The case for Fortescue

Fortescue is one of the world’s largest iron ore miners, operating huge integrated sites across Western Australia’s Pilbara region. With a vast mining, rail, and port footprint, it’s a heavy-duty exporter to Asian steel mills. As of its recent company profile, Fortescue sits among the ASX’s top companies, having grown rapidly by tapping into surging global iron ore demand.

The key passive income drawcard? Fortescue’s outstandingly high, fully franked dividend yield — a juicy 6.46%. Fortescue has also consistently franked its dividends at 100%. Over recent years, it’s paid out generous half-yearly dividends, rewarding shareholders in good times.

However, iron ore mining is a cyclical game. The company’s YTD return sits at -19.1%, reflecting both volatility in iron prices and perhaps broader market caution toward commodity exposures.

Notable stats:

• Market cap: $51.48 billion
• P/E ratio: 12.74
• Dividend per share: $1.08 (latest full-year)
• Dividend yield: 6.46% (fully franked)

The case for Commonwealth Bank of Australia

Commonwealth Bank is Australia’s largest bank by market cap – a household name, and a top dividend payer for many years. Its sprawling operation covers retail, business and institutional banking, wealth, insurance and more – both here and overseas. As of its most recent public description, it’s regarded as a pillar of banking stability in Australia, with a reputation for conservative management and wide reach.

For passive income investors, CBA offers a much lower headline dividend yield than Fortescue – at 3.31%. But every dividend since at least 2003 has been fully franked, and CBA has a long track record of payout reliability and gradual growth, having increased its annual dividend steadily over the years.

CBA’s share price is also known for its relative stability compared to most mining stocks.

Key numbers:

• Market cap: $256.02 billion
• P/E ratio: 23.39
• Dividend per share: $5.05 (latest full-year)
• Dividend yield: 3.31% (fully franked)

Valuation comparison

Let’s compare the main passive income and valuation metrics side-by-side:

	Fortescue Ltd	Commonwealth Bank of Australia
Market Cap	$51.48 billion	$256.02 billion
P/E Ratio	12.74	23.39
Dividend Yield	6.46% (fully franked)	3.31% (fully franked)
Dividend per share	$1.08	$5.05
Year To Date Return	-19.1%	-1.9%

Worth noting: Fortescue trades on a much lower P/E than CBA, but mining and banking sectors normally have different valuation ranges. Both companies offer 100% franking.

Recent share price performance

Comparing the past month:

• Fortescue shares dropped from $17.93 on 24 August 2026 to $16.72 on 21 September 2026, a fall of about 6.7% over these four weeks. The YTD return stands at -19.1%.
• Commonwealth Bank shares fell from $156.88 on 24 August 2026 to $152.43 on 18 September 2026, a smaller drop of about 2.8% over this period. The YTD return is -1.9%.

Which is the better buy?

If I’m focusing purely on passive income, my pick would be Fortescue. The main appeal is that much higher, fully franked dividend yield – almost double CBA’s, according to the latest data. That’s hard to ignore for income investors, provided you’re comfortable with the big swings that come with mining stocks.

CBA is the safer, more stable option with an impressive record of steady payouts and lower price volatility. But for someone seeking immediate, generous passive income, Fortescue stands out. I’d stress, though, that Fortescue’s payout can be lumpy, as it’s closely tied to the iron ore price, so future yields may swing around more than CBA’s. If I wanted reliability above all else, I might still lean toward CBA, but on headline yield and franking, Fortescue clinches it for me right now.

The post Fortescue vs Commonwealth Bank: Which is best for passive income? appeared first on The Motley Fool Australia.

More reading

• Should I buy CBA shares before the end of September?
• Why I’d invest $50,000 of superannuation into these 3 top ASX ETFs
• 3 ASX dividend shares offering gross yields of 8% or more
• 2 ASX blue-chip shares that won’t be hit by $100 oil
• How much passive income can I earn off an $800,000 superannuation balance?

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.

Official interest rates are almost certain to be raised when the Reserve Bank of Australia Board (RBA) meets next week, raising the question: what does that mean for your portfolio?

Canaccord Genuity has just released a research report looking into the sectors which tend to do well, and those that tend to suffer as interest rates increase.

Interest rate increase all but certain

The broking house said in its report that expectations for an interest rate hike had increased sharply over the past few months due to persistently high inflation, exacerbated by rising oil prices due to the conflict in the Middle East.

CG added:

The RBA is now very likely to hike the cash rate by 25bps later this month, and markets are also pricing in one to two further hikes beyond September. While accumulating evidence of a slowing economy may allow the RBA to hold rates after September, the policy outlook is nevertheless materially more restrictive than envisaged this time last year.

The broking house said upward pressure on interest rates, a deteriorating consumer backdrop, a softer housing market and slowing economic growth all presented headwinds for Australian shares from a valuation and earnings perspective.

They added:

These pressures have contributed to a ~5% pullback in the ASX 200 since early August, with outsized declines across the rate-sensitive Retail (-18%) and Real Estate (-13%) sectors, as well as growth sectors such as IT (-14%).

CG said the sectors with the strongest negative correlations with interest rates included real estate, retail and information technology.

CG added:

Recent trading updates have pointed to a softening consumer backdrop, with names such as JB Hi-Fi Ltd (ASX: JBH) reporting negative top-line growth in early FY27. Wesfarmers Ltd (ASX: WES) has also shown a negative correlation with short-term rates, consistent with its exposure to discretionary household spending and its sensitivity to the housing market through its Bunnings franchise.

CG said online classifieds companies such as Seek Ltd (ASX: SEK) and REA Group Ltd (ASX: REA) have in the past shown strong negative correlations with rate increases, which, “partly reflects the degree of cyclicality in their earnings, being tied to job ads and property listings, respectively, as well as the valuation impact of higher long-term yields on growth-orientated companies”.

Infrastructure owners such as Transurban Group Ltd (ASX: TCL) and APA Group Ltd (ASX: APA) were also sensitive to rate increases due to their reliance on debt funding.

Small ray of hope in energy

On the positive side of the ledger, CG said energy stood out as the one sector with a clear positive correlation, “with changes in both short-end rates and longer-term yields over the past three years”.

The post Where to invest as interest rates charge higher appeared first on The Motley Fool Australia.

More reading

• Buy, sell, hold: AMP, Wesfarmers, Woodside shares
• How much is needed in superannuation to target a $95,000 annual passive income?
• Is this ASX 200 share a bargain after crashing to $12?
• How to build a $50,000 passive income from ASX shares
• Buy, hold, sell: Regal Partners, HomeCo Daily Needs REIT, APA Group shares

Motley Fool contributor Cameron England has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group and Transurban Group. 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.