Tag: Stock pick

Orica Ltd (ASX: ORI) is an ASX 200 materials stock. The company is the world’s largest provider of commercial explosives and innovative blasting systems to the mining, quarrying, oil and gas and construction markets. 

In 2025, it has seen its share price rise more than 40%. 

What’s behind the success of this ASX 200 stock?

This rise has been driven by the company’s strategic shift from being a pure explosives supplier to a broader, more diversified provider. 

The Motley Fool’s Marc Van Dinther reported earlier this month that acquisitions in specialty chemicals businesses and the roll-out of digital blasting platforms have helped generate higher-margin, repeatable revenue rather than one-off explosives sales.

In its most recent financial results, the company reported its highest profit in 13 years. 

It also reported an EBIT of $992 million and strong growth across all segments. 

The company also paid out a record full year dividend of 57 cents, an increase of  21% from last year’s 47 cents.

Macquarie’s updated view

The team at Macquarie released a new report yesterday with updated guidance on this ASX 200 stock. 

One key takeaway from the report is the company’s preparation for a strategy refresh (details expected in March) following positive early FY26 momentum.

Macquarie said Vik Bansal commences as Chairman post Dec 16 AGM who has a strong track record of cost out from his time as CEO of Boral (ASX: BLD).

Macquarie also highlighted that Orica could close the gap between itself and competitor Dyno Nobel (ASX: DNL). 

It said Dyno Nobel is in midst of its $300m transformation program; this is lifting margins with full benefits targeted in FY28. 

Dyno Nobel’s EBIT margins are above Orica’s at 13.4% (12.9% explosives) vs ORI’s 12.0% in FY25a. 

In our view, an opportunity exists for ORI to close the margin gap to DNL through cost-out and mix benefit as higher margin Digital & SMC grows faster than Blasting. As a scenario, narrowing the gap by half over next 3-4 years would = c$100m of EBIT & a ~10% benefit to our FY28e/FY29e EPS.

Valuation

Macquarie said Orica shares are currently trading at 17.2× FY27 PE, a ~5% discount to the ASX100. 

It also said it is trading at a slight discount to competitor Dyno Nobel’s 17.6x and it sees a positive earnings outlook for the ASX 200 stock coupled with a strong balance sheet.

Based on this guidance, Macquarie has an outperform rating on this ASX 200 stock. 

It also has a price target of $25.95. 

This indicates an upside of 10.85%. 

The post Macquarie tips double digit upside for this ASX 200 stock appeared first on The Motley Fool Australia.

More reading

• Macquarie names 3 top dividend-paying ASX 200 shares to buy today
• Brokers rate these 3 top ASX shares as buys in December
• How much higher can this explosive ASX stock go?
• Why ASX, AUB, Dyno Nobel, and HMC shares are sinking today
• Ord Minnett just raised its price target on this soaring ASX 200 stock

Motley Fool contributor Aaron Bell 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.

The S&P/ASX 200 Index (ASX: XJO) closed 0.15% higher on Thursday afternoon. Over the past month the index has fallen 2.57%, although it’s still 4.77% higher for the year-to-date.

The latest index decline is partly due to the Reserve Bank’s decision to keep interest rates on hold for another month. In fact it even hinted that further rate cuts are unlikely, even implied at the possibility of a rate increase in early 2026. And it didn’t sit well with investors.

But during times like this, it’s more important than ever to take note of the strong stock performers and the ones to stay clear of. Here are three ASX 200 shares I’m avoiding this week.

Fletcher Building Ltd (ASX: FBU)

Fletcher Building’s shares ended 0.94% higher at the close of the ASX on Thursday, at $3.22 a piece. Over the past month the New Zealand-based building and materials company’s shares have risen 5.92% meaning they’re now trading 25.29% higher than in January.

The dual-listed New Zealand-based building and materials company’s shares also closed 1.68% higher on the NZE on Thursday, at NZ$3.64 per share. 

The company recently reported ongoing declines in trading volumes for the first quarter of FY26 and expects challenging conditions to continue for the remainder of the period. It’s enough for me to steer clear.

Analysts at Macquarie have an underperform rating on the stock and a NZ$1.59 target price. Using Fletcher Building’s NZ$3.64 share price at the time of writing, this implies a massive 56.3% downside ahead.

Commonwealth Bank of Australia (ASX: CBA)

CBA shares closed 0.7% lower again on Thursday afternoon, at $152.74. This means the ASX 200 company’s shares have now fallen 20.2% from its all-time high in June, and are now 3.03% lower than this time last year.

I still think the bank stock’s premium share price is far too expensive right now, and could correct even further. The majority of analysts have a sell rating on the banking giant’s stock, with a target price as low as $96.07 each. 

This implies a potential 37.1% downside over the next 12 months, based on the share price at the time of writing. The team at Medallion Financial Group urges investors to be cautious about buying the stock.

National Australia Bank Limited (ASX: NAB)

NAB is another bank stock which I think is set to drop over the next 12 months, and I’m staying clear of.

At the close of the ASX on Thursday the ASX 200 shares closed 1.03% higher. Although over the month the shares dropped 3.09%. For the year-to-date, the NAB share price is 11.12% higher.

The bank missed consensus expectations of flat earnings in the second half of FY25 and I’m concerned that this is a sign of things to come in FY26.

The team at Morgans have a sell rating and $31.46 target price on the stock. However some analysts are even more bearish, expecting NAB shares to drop as low as $28.79 a piece. At the time of writing this implies a downside of 30.43% over the next 12 months.

The post 3 ASX 200 shares I’m avoiding this week appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Forget CBA shares! Buy these ASX dividend shares instead for passive income
• The CBA share price has fallen 19% since June, is it a buy?
• 10 most-traded ASX shares last week
• Up 22% in a year! The red-hot ANZ share price is smashing CBA, Westpac and NAB shares

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.

Fortescue Ltd (ASX: FMG) shares are a popular option for investors wanting exposure to iron ore.

But that doesn’t mean the mining giant is the best way to do it.

Right now, one leading broker is tipping investors to snap up a different ASX iron ore stock following a strong update.

Which ASX iron ore stock?

The stock that is being tipped as a buy is Fenix Resources Ltd (ASX: FEX).

On Thursday, its shares rocketed higher after the company unveiled its three-year production plan.

After delivering production of 2.4Mt in FY 2025, the ASX iron ore stock is now aiming to increase this materially over the next three years due to the Weld Range Project.

Fenix is guiding to production of 4.2 million to 4.8 million tonnes in FY 2026, 4.7 million to 5.3 million tonnes in FY 2027, and then 5.4 million to 6 million tonnes in FY 2028. It also reaffirmed its FY 2026 cost guidance of A$70 to A$80 per tonne, with sustaining capital for the three-year period estimated at $35 million to $45 million.

Bell Potter was pleased with the update. It said:

The staged production ramp-up provides a low-risk pathway towards 10Mtpa production, with ore sourced from adjacent hubs resulting in streamlined logistics and operational efficiencies. FEX holds mine plan optionality, with numerous Weld Range deposits across the Beebyn and Madoonga hubs.

The company is exploring several cost-reduction initiatives, including: Transition to owner-operator mining; development of private haul road to decrease mileage and increase haulage capacity; and use of transhippers to reduce shipping costs.

Forget Fortescue shares

Bell Potter currently has a hold rating on Fortescue’s shares with a price target of $19.30. This is approximately 15% below where they currently trade.

Whereas this morning, the broker has reaffirmed its buy rating and 65 cents price target on Fenix shares.

Based on its current share price of 50 cents, this implies potential upside of 30% for investors over the next 12 months.

In addition, the broker is expecting a fully franked 2% dividend yield in FY 2026, sweetening the deal further.

Commenting on its buy recommendation, Bell Potter said:

FEX continues to grow its portfolio of low capital mining assets, leveraging its integrated logistics networks to underpin cash flows for growth and shareholder returns. The company holds the largest storage position at the strategic and fast-growing Geraldton Port. The expanded FEX-SMC agreement provides a clearer pathway to +10Mtpa iron ore production at significantly lower unit costs.

The post Forget Fortescue shares, this ASX iron ore stock is better appeared first on The Motley Fool Australia.

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• ASX mining shares dominate stocks hitting 52-week highs
• Why Brazilian Rare Earths, Fenix Resources, Flight Centre, and Guzman Y Gomez shares are storming higher today
• Guess which ASX mining stock is rocketing 14% on production plans
• Here are the top 10 ASX 200 shares today
• Best ASX mining stock to buy right now: Fortescue or South32?

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 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.

ASX All Ords share BCI Minerals Ltd (ASX: BCI) has delivered some outsized gains in 2025.

BCI Minerals shares closed up 1.3% yesterday, trading for 38.5 cents each, giving the company a market cap of $1.1 billion.

That sees shares in the ASX miner, which is primarily focused on producing potash and salt, up 42.6% year to date. To put those gains in some context, the S&P/ASX All Ordinaries Index (ASX: XAO) is up 4.9% over this same period.

And according to wealth manager Euroz Hartleys, which has as speculative buy rating on the ASX All Ords share, the stock is well-placed to deliver more outperformance in the year ahead.

If you’re not familiar with BCI Minerals, the miner owns the Mardie Salt Project, located in Western Australia. The project spans around 115 kilometres on the Pilbara coast. It will the third largest salt project in the world on completion, and the largest in Australia.

The company is targeting its first salt shipment in the fourth quarter of calendar year 2026.

Should you buy the surging ASX All Ords share today?

BCI reported its first quarter (Q1 FY 2026) results on 23 October.

Commenting on those results, which saw the ASX All Ords share close up 2.7% on the day, BCI Minerals managing director David Boshoff said, “During the September quarter, we delivered strong operational performance and solid construction momentum at Mardie, with all ponds approaching capacity.”

He added, “We embedded new technology on site, providing valuable data in real time, allowing us to monitor operations and better plan for the future.”

Euroz Hartleys was also pleased with the results.

The wealth manager noted, “Salt development construction now 74% complete, with total expenditure of $1,221m to date. On track for First Salt on Ship (FSOS) milestone end-CY26.”

On the cost front, Euroz Hartleys said, “Importantly BCI outlines remaining estimated construction cost at $441 million, covered comfortably by available funding of $676 million.”

And Euroz Hartleys expects BCI will be able to achieve higher future prices for its salt exports.

According to the wealth manager:

Salt import pricing (CFR: US$50/t to Asia ex-China, US$48/t to China) through the Jun’Q remained robust, although slight decrease QoQ (~-5%) due to lower freight costs (to Indonesia from Australia) and lower quality product (to China from India) impacting average prices. We assume LT US$60/t CFR with US$11.2/t freight costs

Connecting the dots, Euroz Hartleys said, “BCI is at an attractive entry point just over 12 months out from first salt sales, with the major development executing nicely, on track of timing schedule and budget.”

The wealth manager has a price target of 47 cents on the ASX All Ords share. That’s more than 22% above Thursday’s closing price.

The post Why this buy rated $1 billion ASX All Ords share is tipped to leap 22% appeared first on The Motley Fool Australia.

More reading

• Why Ampol shares zoomed to reach a 52-week high
• 3 excellent Australian dividend shares to buy with $1,000
• Macquarie tips double digit upside for this ASX 200 stock
• 3 ASX 200 shares I’m avoiding this week
• Forget Fortescue shares, this ASX iron ore stock is better

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 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 Thursday, the S&P/ASX 200 Index (ASX: XJO) had a reasonably positive session and edged higher. The benchmark index rose 0.15% to 8,592 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set to jump on Friday following a mixed night in the United States. According to the latest SPI futures, the ASX 200 is expected to open 100 points or 1.15% higher this morning. In late trade on Wall Street, the Dow Jones is up 1.4% and the S&P 500 is 0.2% higher, but the Nasdaq is down 0.2%.

Oil prices tumble

It could be a poor finish to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.45% to US$57.61 a barrel and the Brent crude oil price is down 1.45% to US$61.31 a barrel. Optimism over Russia-Ukraine peace talks put pressure on oil prices.

Buy Netwealth shares

Netwealth Group Ltd (ASX: NWL) shares are in the buy zone according to analysts at Bell Potter. This morning, the broker upgraded the investment platform provider’s shares to a buy rating with a $31.50 price target. It said: “Upgrade to Buy. First Guardian is an overhang, but if net flows are maintained then the company is on-track to beating guidance and maybe consensus. Against this backdrop there continues to be noise – KKR is looking to exit CFS and Macquarie has disrupted its flows – so we view FY26 as a good setup and upgrade based on valuation, where NWL has averaged an EV/EBITDA multiple of 33x. The last traded price implies 29x our blended FY26-27 estimates.”

Gold price jumps

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good finish to the week after the gold price jumped overnight. According to CNBC, the gold futures price is up 1.9% to US$4,303.9 an ounce. The precious metal has risen since the US Federal Reserve cut rates again.

NAB AGM

National Australia Bank Ltd (ASX: NAB) shares will be on watch today when it becomes the second big four bank to hold its annual general meeting this week. It is possible that the bank will provide the market with an update on recent trading. Today is also pay day for NAB shareholders, with the bank scheduled to pay its fully franked 85 cents per share dividend today.

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

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

The ASX is home to many top Australian dividend stocks. From Telstra Group Ltd (ASX: TLS) to BHP Group Ltd (ASX: BHP), from Westpac Banking Corp (ASX: WBC) to Woolworths Group Ltd (ASX: WOW), the Australian markets offer many companies that have decades of paying fat, fully franked dividends.

However, many of these dividend stocks have looked better as we survey them at the end of 2025. Some, perhaps Telstra and Westpac, are looking relatively expensive, and thus are offering dividend yields well below their historical averages right now. BHP and Woolies have their own issues, whether that be low commodity prices or minks in their business models that need ironing out.

That’s why, if I had to choose an Australian dividend stock to invest in today, I’d probably go for something like the SPDR MSCI Australia Select High Dividend yield ETF (ASX: SYI).

This exchange-traded fund (ETF), like most ASX ETFs, holds a basket of underlying shares. In this case, those shares are all strong ASX dividend stocks with a history of providing relatively high yields to investors.

An ASX dividend stock with a 12.7% yield?

SYI contains all of the shares mentioned above, as well as Macquarie Group Ltd (ASX: MQG), Woodside Energy Group Ltd (ASX: WDS), QBE Insurance Group Ltd (ASX: QBE) and Coles Group Ltd (ASX: COL). All in all, this fund holds just under 60 ASX dividend stocks in a well-diversified income portfolio.

By investing in such a wide cross-section of the market, SYI can arguably offer the best income on the ASX has to offer, whilst diluting individual company risk.

Unlike most ASX dividend stocks, the SPDR Australia Select High Dividend Yield ETF pays out four dividend distributions annually. Over 2025, these quarterly payments added up to $3.72 per unit. At the current SYI unit price of $29.23, that translates to a trailing dividend distribution yield of 12.73%.

Now, before anyone rushes out to secure SYI units thinking they will enjoy a permanent 12.73% yield on their cash going forward, investors need to keep in mind that the dividend income from an ETF like this can fluctuate dramatically from year to year. The dividends received from this ETF’s underlying holdings largely dictate what the fund itself can pay out. Not to mention the erratic profits that can stem from this ETF’s periodic rebalancing.

To illustrate this inconsistency, SYI units only paid out $1.07 per unit over 2024, down significantly from that $3.72 enjoyed over 2025. Even so, if this were repeated in 2026, it would give this ASX ETF a yield of 3.66%.

Despite this unpredictable income stream, I think this Australian ETF would be a great investment for anyone who prioritises dividend income from their ASX shares today.

The post A top Australian dividend stock with a 12% yield to buy in December 2025 appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• 2 ASX financial shares to sell and 1 to buy: experts
• Ranking the best “Magnificent Seven” stocks to buy for 2026. Here’s my No. 1 pick.
• Forget CBA shares! Buy these ASX dividend shares instead for passive income
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Motley Fool contributor Sebastian Bowen 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 positions in and has recommended Macquarie Group, Telstra Group, and Woolworths Group. 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.

ASX financial shares closed higher on Thursday, with the S&P/ASX 200 Financials Index (ASX: XFJ) up 0.29% to 9,030.7 points.

By comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) rose 0.15%.

The financials index has fallen 9.5% since it peaked at a historical high of 9,978.4 points in October.

The steeply declining Commonwealth Bank of Australia (ASX: CBA) share price has contributed to the sector’s fall.

Not to mention the sharp turnaround on interest rate expectations due to resurgent inflation and economic growth.

The markets are now pricing in a 27% chance of a rate hike after the next Reserve Bank meeting on 3 February.

Let’s check out some new broker recommendations on ASX financial shares.

2 ASX financial shares to sell

On The Bull this week, experts reveal two ASX financial shares to sell now.

QBE Insurance Group Ltd (ASX: QBE)

The QBE share price closed at $19.15 on Thursday, down 0.1% for the day and down 18.3% over the past six months.

Jabin Hallihan from Family Financial Solutions has a sell rating on QBE.

Hallihan explains:

Shares [are] trading at a premium to our fair value estimate of $16.50, despite falling from its June highs.

In our view, the company faces margin pressure from pricing competition, so we recommend investors reduce holdings, while monitoring claims trends and premium rates.

Medibank Private Ltd (ASX: MPL)

The Medibank Private share price closed at $4.67 yesterday, up 0.21% for the day and up 23% in the year to date (YTD).

Blake Halligan from Catapult Wealth has a sell rating on the ASX financial share.

Halligan notes the stock’s significant fall from $5.26 per share on 21 August.

He says:

The Federal Government is attempting to encourage private health insurers to increase payments to private hospitals.

Net profit after tax of $500.8 million in fiscal year 2025 was up a modest 1.7 per cent on the prior corresponding period.

Profit before tax of $728.8 million was up 2.4 per cent.

The risk of increasing cost pressures paints a challenging outlook.

1 ASX financial stock to buy

Tyro Payments Ltd (ASX: TYR)

The Tyro Payments share price closed at $1 on Thursday, up 0.5% for the day and up 21% in the YTD.

Hallihan has a buy rating on the ASX financial stock.

He explains:

The company reaffirmed fiscal 2026 guidance for normalised gross profit of between $230 million and $240 million and an EBITDA margin of between 28.5 per cent and 30 per cent.

Tyro is launching a new banking platform to boost merchant adoption. Tyro’s modern technology and strong performance support growth.

Shares remain below our fair value estimate of $1.30, so we recommend accumulating the stock.

The post 2 ASX financial shares to sell and 1 to buy: experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Tyro Payments. 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 originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Welcome to the final article in a seven-part series ranking the best “Magnificent Seven” stocks to buy for next year.

To recap, Tesla was in last place, followed by Apple as the sixth seed, Amazon in fifth, Alphabet fourth, Nvidia third, and Meta Platforms second.

Here’s why Microsoft (NASDAQ: MSFT) takes the gold as the best Magnificent Seven stock to buy in 2026, and my top stock from the entire S&P 500 to buy and hold for at least the next three to five years. 

Microsoft is a high-margin cash cow

Microsoft doesn’t have as much growth potential as Magnificent Seven names like Nvidia or Tesla. However, what makes it attractive is its ultra high profit margins.

Data by YCharts.

Microsoft is the No. 2 player in cloud computing, behind Amazon Web Services. It features a comprehensive suite of integrated software tools, including Microsoft 365 (Word, Excel, PowerPoint, Microsoft Teams, OneDrive, SharePoint, and AI capabilities through Copilot). Its personal computing products include Surface and Windows-supported devices from a variety of brands. Microsoft owns LinkedIn and GitHub. And it’s a major player in gaming with Xbox and its ownership of Activision Blizzard.

Mature tech companies often over-diversify and put innovation on the back burner, leading to slower growth and margin compression. Not Microsoft. Its growth is accelerating, and its operating margin is at a 10-year high.

Delivering results without taking on too much risk

With a 29.8 forward price-to-earnings ratio, Microsoft isn’t quite as cheap as Meta Platforms, but it’s still reasonably priced within the context of its historical valuation.

Microsoft also has the best track record of the Magnificent Seven for delivering consistent, high-margin growth and returning capital to shareholders through share repurchases and dividends.

Its outstanding share count has been ticking down over the years because buybacks have exceeded stock-based compensation. On Sept. 15, management announced a 10% dividend increase — marking the 16th consecutive year the company has boosted its payout. It has the highest yield among the Magnificent Seven at 0.8%.

Microsoft also has one of the best balance sheets of the Magnificent Seven, ending its most recent quarter with $66.6 billion in cash, cash equivalents, and short-term investments net of long-term debt.

As flawless as it gets

There are no perfect businesses, but Microsoft is arguably as close as it gets among U.S. companies.

Going into 2026, the investment thesis has no weaknesses. The company is high-margin, diversified, innovative, and benefits from growth trends across the tech landscape, including AI.

That means Microsoft is well positioned, regardless of what happens in the years to come.

If there’s a recession, Microsoft can weather it.

If there’s a sustained AI boom, it will benefit.

If Microsoft-backed OpenAI loses market share to Alphabet’s Gemini or Anthropic’s Claude, the company can still thrive.

Microsoft may not produce the largest gains of the Magnificent Seven over the next three to five years, but it is by far the best positioned to consistently outperform the S&P 500 over the long term.

Add it all up, and Microsoft has the potential to be a foundational holding for both growth and value investors alike. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Ranking the best “Magnificent Seven” stocks to buy for 2026. Here’s my No. 1 pick. appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• How to invest your first $1,000 in the share market the smart way
• 3 ASX ETFs I’d buy right now to build wealth
• Better $3 trillion AI stock to buy now: Microsoft or Alphabet
• The ASX ETFs I’d buy for my kids or grandkids
• What are the 5 top artificial intelligence (AI) stocks to buy right now?

Daniel Foelber has positions in Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. 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 recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owning ASX dividend shares is one of the most rewarding things about investing in the stock market. However, Commonwealth Bank of Australia (ASX: CBA) shares aren’t particularly appealing to me for passive income right now.

It’s great being able to receive cash flow into bank accounts from our ownership of compelling businesses. I think it’s important to focus on businesses that are at valuations that make sense and to aim for investments that can grow in value.

CBA is not exactly firing on all cylinders right now. The lending industry is competitive, with this being an impact on both loan growth rates and the margins lenders can achieve.

In the first quarter of FY26, the bank reported cash net profit after tax (NPAT) of $2.6 billion, representing just 2% year-over-year growth. That’s not a compelling growth rate, nor is the current grossed-up dividend yield of 4.5%, including franking credits, particularly exciting.

There are quite a few ASX dividend shares I’d rather buy for passive income at the current valuations than CBA shares.

Centuria Capital Group (ASX: CNI)

This business is a fund manager that’s focused on managing commercial properties. While it may be best known for its office and industrial buildings, it’s also involved in areas like real estate finance, healthcare and agriculture.

I like the diversification of the business and how it’s benefiting from recent interest rate cuts, which is reducing the cost of debt as well as providing a tailwind for the company’s earnings through higher property valuations – this is boosting its ability to generate management fees.

In terms of passive income, the business paid an annual distribution per security of 10.4 cents in FY25, meaning it currently has a distribution yield of 4.9%.

The business is expecting to grow its operating earnings per security (OEPS) by 10% in FY26, which is a much stronger growth rate than what I’m expecting in FY26 from CBA.

I think this ASX dividend share is likely to deliver a stronger total shareholder return than CBA shares over the next three to five years. If the business continues making compelling property acquisitions, then it could be a pleasing market-beater, in my view.

WCM Quality Global Growth Fund (ASX: WCMQ)

Commonwealth Bank is heavily concentrated on the Australian (and New Zealand) economy. Why not look at investments that help provide global earnings diversification?

This exchange-traded fund (ETF) aims to invest in a portfolio of between 20 to 40 stocks that are quality global companies, primarily in the high-growth areas of consumer, technology and healthcare sectors.

The fund targets an annualised dividend yield of 5% for investors, which is a stronger yield than what CBA shares currently provide.

WCM looks for businesses that have expanding competitive advantages/economic moats and wants to see the businesses have a corporate culture that support the expansion of the economic moat.

The strength and performance of these underlying businesses have allowed the WCMQ ETF to deliver an average return per year of 15.9% over the last five years. That implies good growth of the ETF’s net asset value (NAV), allowing for a growing distribution from the ASX dividend share.

Of course, past performance is not a guarantee of future investment performance. But, with a global share market to hunt for ideas, the future looks promising. Its three largest holdings are currently AppLovin, Taiwan Semiconductor and Amazon.

The post Forget CBA shares! Buy these ASX dividend shares instead for passive income appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and Taiwan Semiconductor Manufacturing. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Nvidia (NASDAQ: NVDA) stock is up 37% year-to-date as we approach the end of 2025. That’s about double the S&P 500‘s total return this year, which is certainly an impressive gain. However, it’s a significant slowdown from previous years — 239% in 2023 and 172% in 2024. In fact, it has gained 1,260% over the past five years, including a painful period when it lost more than half of its total value in 2022.

Will that trend continue? And does it make sense to invest $1,000 in Nvidia stock today? 

The key to AI

Nvidia has had such an incredible run-up over the past few years because its graphics processing unit (GPU) chips are the most powerful chips to handle massive data loads for artificial intelligence (AI) creation. As hyperscalers build out huge AI businesses and develop data centers to generate the next wave of AI capabilities, Nvidia’s chips have been in high demand.

The company continues to roll out new and more powerful products to drive all the new and exciting AI development, but competition is heating up, with companies like Advanced Micro Devices and even Alphabet scoring new, important deals for their chips.

Given Nvidia’s central position in AI right now, it doesn’t look like there’s any near-term danger of losing its edge. It’s natural that as the industry explodes, other companies are going to make strides and also take some market share.

Which means that, as much as we can anticipate future challenges, Nvidia is still going to be a good investment. Even if it doesn’t deliver the same staggering gains it has in the past, investing $1,000 in Nvidia stock makes sense today.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Should you invest $1,000 in Nvidia right now? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Jennifer Saibil 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 Advanced Micro Devices, Alphabet, and Nvidia. The Motley Fool Australia has recommended Advanced Micro Devices, Alphabet, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.