Tag: Stock pick

Markets never move in a straight line.

Some years are driven by optimism, falling interest rates, and strong earnings growth. Other years are shaped by inflation, geopolitical shocks, weaker consumer spending, and nervous investors.

That is why I think it helps to own ASX 200 shares that can handle different conditions.

The three ASX 200 shares in this article are not guaranteed to outperform every year. But I think they have the kind of quality, resilience, and long-term relevance that makes them worth buying and holding through the cycle.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of the first ASX 200 shares I would consider for an all-weather portfolio.

The company owns a collection of businesses that touch everyday life, including Bunnings, Kmart, Officeworks, Priceline, and industrial operations.

What I like about Wesfarmers is that it gives investors a rare mix of defensive earnings and long-term growth options.

Bunnings is the standout. It has a powerful position in home improvement, strong brand trust, and a store network that would be very hard to replicate. Even when the economy slows, Australians still need to repair, maintain, and improve their homes.

Kmart is another important part of the story. Its value-focused model can actually become more relevant when households are under pressure. That gives Wesfarmers a useful offset in tougher consumer environments.

I also like the group’s capital allocation record. Wesfarmers has shown over many years that it is willing to invest where it sees opportunity and exit areas that do not meet its standards.

That discipline is a big reason I would be happy to hold the stock through different market cycles.

ResMed Inc. (ASX: RMD)

ResMed is another ASX 200 share I think investors can buy with a long-term mindset.

The company is a global leader in sleep apnoea treatment and respiratory care. That gives it exposure to a large healthcare market with strong structural demand.

For me, the appeal is simple. Sleep apnoea remains underdiagnosed, but awareness continues to grow. As more people are tested and treated, ResMed has a chance to sell more devices, masks, software, and connected care solutions.

I also like the fact that healthcare demand is not purely tied to the economic cycle. People do not stop needing treatment because markets are weak or consumer confidence is low.

Of course, ResMed still has risks. Competition, pricing pressure, currency movements, and changing technology can all affect performance. The GLP-1 weight loss drug debate has also created periods of uncertainty for the share price.

But I think the long-term case remains attractive. In fact, if better awareness of obesity and sleep-related health issues leads to more diagnosis, ResMed could still benefit over time.

That makes it the kind of global healthcare business I would be willing to hold through volatility.

Transurban Group (ASX: TCL)

Transurban is a very different type of ASX 200 share, but that is why I like it in this mix.

The company owns and operates toll roads across Australia and North America. These are infrastructure assets that can produce relatively defensive cash flows over long periods.

Road traffic can move around with economic conditions, but major urban toll roads tend to remain important parts of daily life. People still need to commute, move goods, visit family, and travel around large cities.

I also like the inflation-linked nature of many toll road arrangements. In an environment where costs and prices are rising, that can help support revenue growth.

Transurban is not a risk-free income stock. Debt levels, interest rates, regulation, traffic volumes, and project costs all need watching. But I think its assets are high quality and difficult to replace.

For investors wanting a steadier holding alongside growth names, I think Transurban can play an important role.

Foolish takeaway

I do not think an all-weather portfolio needs to be boring.

Wesfarmers gives exposure to high-quality retail and disciplined capital allocation. ResMed adds global healthcare growth. Transurban brings infrastructure income and defensive characteristics.

Each business faces risks, and none will rise every year. But I think all three have qualities that can remain valuable across different market environments.

For investors looking beyond the next market wobble, these are three ASX 200 shares I would be happy to buy and hold for years.

The post 3 ASX 200 shares I’d buy and hold through any market cycle appeared first on The Motley Fool Australia.

More reading

• These ASX dividend shares could power your retirement income
• How to build passive income with ASX shares in 3 easy steps
• I’d buy these blue-chip ASX shares with $2,000 in a heartbeat
• Hunting passive income? Here are three ASX dividend shares to buy
• 3 superannuation decisions you’ll regret in retirement

Motley Fool contributor Grace Alvino has positions in Transurban Group and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended ResMed 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.

Private wealth and investment advisory firm, Medallion Financial Group says changes to capital gains tax (CGT) will likely encourage investors to focus on income-generating assets like ASX dividend shares over growth investments.

Under the changes announced in the Federal Budget on Tuesday, the 50% CGT discount for assets held longer than 12 months will be replaced by a cost base indexation method from 1 July next year.

This method adjusts the cost base of an asset for inflation.

Existing investments will be grandfathered, so the 50% CGT discount will continue to apply to gains before 1 July 2027.

Capital gains on existing investments on or after 1 July 2027 will be subject to cost base indexation.

A minimum 30% tax on net capital gains will apply under the cost base indexation method.

There is one exception.

To maintain incentives for new housing supply, investors in new residential properties will be able to choose either the 50% CGT discount, or cost base indexation and the minimum 30% tax rate.

In a newsletter this week, Medallion outlined its predictions as to how the tax changes might influence investor behaviour.

The advisory firm said:

By increasing the effective tax burden on capital gains, the government has altered the relative attractiveness of growth versus income subtly, but meaningfully shifting investor behaviour.

At a high level, the changes tilt the playing field toward yield. If a larger portion of capital gains is taxed away, the after-tax return profile of growth assets; equities, start-ups, and expansionary investments becomes less compelling.

In contrast, income streams such as dividends retain their relative appeal, particularly where they are franked.

ASX dividends shares and franking

Dividends are typically funded from profits, and franking credits represent the tax a company has already paid on its profits in Australia.

People invested in ASX dividend shares receive both the raw dividend plus the level of franking relevant for each company they own.

The level of franking depends on how much corporate tax the company has paid and has available in its franking account.

At tax time, franking is credited towards an investors’ tax payable, reducing tax on their dividend income and preventing double taxation of profits.

For example, Commonwealth Bank of Australia (ASX: CBA) is among the most popular ASX dividend shares on the market.

CBA shares typically pay dividends with 100% franking.

For 1H FY26, CBA declared a dividend of $2.35 per share plus 100% franking.

Therefore, an investor who owned 100 shares in CBA would have received a $235 dividend and a $100.71 franking credit.

‘A likely rotation in capital’

Medallion says the tax changes will likely encourage a rotation in capital away from growth assets to income assets.

Investors may increasingly favour high-dividend, lower-volatility sectors over innovative, higher-risk areas of the market.

In effect, policy is nudging capital away from forward-looking, productivity-enhancing investments and toward more defensive, domestically oriented exposures.

One of the reasons ASX shares are a popular investment is because the dividend yield is much higher than international shares.

The long-term average annual yield for ASX 200 shares is 4% to 4.5%, however, this has fallen closer to 3.5% in recent years.

By comparison, the current trailing dividend yield on US shares or S&P 500 Index (SP: .INX) stocks is 1.1%.

A high dividend yield provides protection for investors when the market falls, as it has in 2026.

In the calendar year to date, the S&P/ASX 200 Index (ASX: XJO) is down 1.1%, however, investors have still received dividends.

Other popular dividend shares

ASX 200 bank and mining stocks have long been viewed as among the most generous ASX dividend shares.

For example, ANZ Group Holdings Ltd (ASX: ANZ) shares are currently trading on a trailing dividend yield 4.76%.

Westpac Banking Corp (ASX: WBC) shares are trading on a trailing yield of 4.31%.

Fortescue Ltd (ASX: FMG) shares have a trailing dividend yield of 5.3%.

Outside of the banks and miners, other strong ASX dividend shares include the energy giants, telcos, and utilities shares.

Woodside Energy Group Ltd (ASX: WDS) shares are trading on a trailing dividend yield of 5.39%.

Telstra Group Ltd (ASX: TLS) shares have a trailing yield of 3.75%.

ASX 200 utilities stock, APA Group Ltd (ASX: APA), has a trailing dividend yield of 5.39%.

The post CGT tax changes may encourage investors into ASX dividend shares: Expert appeared first on The Motley Fool Australia.

More reading

• 5 excellent ASX dividend shares to buy with $50,000
• What are the pros and cons of buying CBA shares in May?
• How to build passive income with ASX shares in 3 easy steps
• Why CBA, Paladin Energy and CSL shares crashed  9% to 17% this week
• Are Telstra shares a top buy for passive income?

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

If you are fortunate to have $50,000 to invest in the share market and want income, there are plenty of ASX dividend shares outside the usual bank-heavy conversation.

The key is finding companies that have the cash flow to support dividends over time.

With that in mind, here are five ASX dividend shares that could be worth considering.

CSL Ltd (ASX: CSL)

CSL has not been viewed as a traditional income stock for most of its history.

That has changed after a brutal 12 months for the biotech giant. Its share price weakness has caused a major earnings multiple contraction, lifting its forecast dividend yield to approximately 4% this year and next.

The company still has plenty to prove after a difficult period. But CSL remains a global healthcare leader with strong positions in plasma therapies, vaccines, and specialist medicines.

For investors willing to accept turnaround risk, CSL now offers a much more meaningful income profile than it has in the past.

Dicker Data Ltd (ASX: DDR)

Dicker Data offers income exposure from the technology supply chain.

The company distributes hardware, software, cloud, and cybersecurity products across Australia and New Zealand. This places it between major global vendors and the resellers that serve business customers.

Dicker Data has historically paid out a large portion of earnings as dividends. That makes profit performance important, but it also means shareholders can benefit when trading conditions are supportive.

With ongoing business investment in technology, Dicker Data remains an ASX dividend share with a different driver from the usual defensive names.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT owns convenience-based retail properties.

Its portfolio is focused on assets such as supermarkets, large-format retail, health and wellness, and essential services. These are areas where customer demand tends to be more resilient than discretionary shopping.

This gives the trust a practical income profile. Rent is supported by tenants that serve everyday needs, while the property base is spread across a range of locations.

For investors seeking income from real estate without relying on office towers or large shopping centres, HomeCo Daily Needs REIT could be worth a closer look.

Telstra Group Ltd (ASX: TLS)

Telstra Group remains one of the ASX’s best-known dividend shares.

The telecommunications giant benefits from a large customer base, essential services, and recurring revenue from mobile and broadband customers.

Its mobile network remains a key competitive strength. Demand for data continues to grow, and connectivity has become a basic requirement for households and businesses.

This gives Telstra a defensive quality that supports its appeal as an income share.

Woolworths Group Ltd (ASX: WOW)

Finally, Woolworths Group offers another defensive income option.

The supermarket operator benefits from recurring demand for groceries, with millions of customers shopping across its stores and digital channels each week.

Margins can still be affected by competition, wages, and supply chain costs. But Woolworths’ scale and market position give it resilience through different economic conditions.

For income investors, this ASX dividend share offers exposure to everyday spending rather than cyclical demand.

The post 5 excellent ASX dividend shares to buy with $50,000 appeared first on The Motley Fool Australia.

More reading

• CGT tax changes may encourage investors into ASX dividend shares: Expert
• How to build passive income with ASX shares in 3 easy steps
• Where to from here for CSL shares according to Macquarie
• 5 ASX shares downgraded by brokers this week
• Why CBA, Paladin Energy and CSL shares crashed  9% to 17% this week

Motley Fool contributor James Mickleboro has positions in CSL and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has positions in and has recommended Dicker Data, Telstra Group, and Woolworths Group. The Motley Fool Australia has recommended CSL and HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The retail conglomerate behind Peter Alexander and Smiggle continues to reward income investors, even as trading conditions stay tough.

Premier Investments Ltd (ASX: PMV) may not grab headlines as often as some of its ASX peers.

But for income investors it has quietly delivered a reliable stream of fully-franked dividends for years. 

With the company’s most recent half-year result now in the books, here is exactly what shareholders are receiving in 2026.

What Premier paid in the first half

Premier Investments declared a fully-franked interim dividend of 45 cents per share alongside its half-year results in March 2026. 

Across FY 2025, the company paid a total fully-franked dividend of 90 cents per share, split between interim and final payments. 

The next ex-dividend date falls on 3 August 2026, when Premier will declare its final dividend for FY 2026.

What analysts are forecasting

Macquarie carries an outperform rating on Premier Investments and forecasts fully-franked dividends of 95.2 cents per share for FY 2026, rising to 97.4 cents per share in FY 2027. 

Based on the share price at the time of writing, those forecasts imply dividend yields of around 7.9% and 8.1%, respectively. 

Macquarie holds a price target of $16.90 on the stock, suggesting meaningful capital upside alongside the income.

A word of caution

Investors should note that Premier’s current payout ratio sits above 100% of reported earnings, meaning the company distributes more than it earns on a statutory basis. 

That warrants attention from income-focused investors. 

Macquarie’s optimism rests largely on the strength of the Peter Alexander brand, which delivered a 4.9% sales increase to $312.3 million in the first half of FY 2026. 

Smiggle remains the drag, with sales falling 10.7% to $140.5 million in the same period.

Management expects full-year FY 2026 underlying EBIT of around $183 million, down from $195.4 million in FY 2025.

Foolish Takeaway

Premier Investments offers one of the highest forecast dividend yields in the ASX retail sector right now.

Investors should keep an eye out on the payout ratio; any consistent payouts beyond 100% could lead to a dividend cut. 

But if Premier Investments can continue to grow the Peter Alexander brand, investors may benefit from consistently high dividend payouts.

The post Here is what Premier Investments shares are paying shareholders in 2026 appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares to buy for 5% to 10% yields
• 3 ASX dividend shares to build a passive income
• 3 excellent ASX dividend shares with 5% to 7% yields to buy

Motley Fool contributor Mark Verhoeven 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. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Commonwealth Bank of Australia (ASX: CBA) share price has had a rough week, falling by 10% on the day after the release of the Federal budget, though that day was also when the bank released its FY26 third-quarter update.

The CBA share price declined 14% between 7 May to 13 May. Both of those short-term declines are large considering Commonwealth Bank has a market capitalisation of more than $250 billion.

There were some big changes for investors to consider. The market clearly turned negative about the business this week. At this lower price, I’ll share my views on the ASX bank share‘s attractiveness.

Negatives

There were a lot of negatives that were revealed this week, though I think investors may have already seen hints of what was coming with the Federal budget.

The Federal budget saw negative gearing significantly curtailed for existing properties, aside from grandfathering. On top of that, the capital gains tax (CGT) discount has been changed to account for inflation instead of a 50% discount after 12 months of ownership.

The Motley Fool’s Scott Phillips shared some poignant thoughts about the tax changes.

Who knows how investors will respond to these changes? Will it lead to lower demand for investor loans?

The CBA FY26 third quarter was not exactly an incredible quarter either.

Quarterly statutory net profit was $2.6 billion for the quarter, while cash net profit was $2.7 billion (down 1%) compared to the quarterly average of the FY26 first half.

The bank reported operating expenses growth of 1% (excluding restructuring and notable items) largely because of higher cloud computing volumes, software licensing and investment in AI capabilities. Operating income was flat. It’s not ideal to see expenses growing faster than income.

Another negative was the loan impairment expense of $316 million, with higher collective provisions reflecting heightened geopolitical and macroeconomic uncertainty. It’s prudent to have higher provisions in these uncertain times, but it does impact short-term profitability.

Positives about the CBA share price

Higher provisions aren’t ideal, but as long as the bank’s arrears and actual bad debts remain reasonable, then the bank’s profit and financial picture should remain resilient.

Another positive to keep in mind is that the ASX bank share is now at a much more reasonable valuation. That may mean investors have a bigger margin of safety to make returns in the coming years. Plus, the dividend yield has been given a boost.

According to the (independent) projection on Commsec, the CBA share price is valued at 23.5x FY26’s estimated earnings with a possible FY26 grossed-up dividend yield of 4.8%, including franking credits, at the time of writing.

I think one of the most positive updates from the quarterly result was the level of underlying business lending growth it achieved. It reported business lending growth of 12.5% (or $21.6 billion) – this could be a key offset for any slowing of home lending growth for the foreseeable future.

Additionally, it’s important to remember there will still be some investor loans. Plus, could it mean higher demand for owner-occupier loans?

I don’t believe CBA will be impacted as much as the market reacted, though I didn’t think the CBA share price warranted being that high to begin with.

I still reckon that CBA is the best of the locally-focused bank and its valuation looks more reasonable compared to the other ASX bank shares now. I’d be more inclined to buy it now than a week ago, but I think other opportunities can provide stronger returns.

The post What are the pros and cons of buying CBA shares in May? appeared first on The Motley Fool Australia.

More reading

• CGT tax changes may encourage investors into ASX dividend shares: Expert
• How to build passive income with ASX shares in 3 easy steps
• Why CBA, Paladin Energy and CSL shares crashed  9% to 17% this week
• CSL shares vs CBA shares: Which is the better buy?
• Should you buy the dip on CBA shares? Here’s what the experts say

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.

Turning 60 can feel like a major retirement checkpoint.

For some Australians, it is the age where work starts winding down. For others, it is when the numbers finally become impossible to ignore. The big question is simple: does the average 60-year-old have enough super to retire?

The answer depends heavily on whether you are retiring alone or as part of a couple, and whether you want a modest or comfortable lifestyle.

What does the average 60-year-old have in superannuation?

There is no single exact figure for Australians aged 60, but we can estimate it using the surrounding age brackets.

According to the latest data from Rest Super, women aged 55 to 59 have an average super balance of approximately $242,945, while those aged 60 to 64 average $313,360.

A reasonable estimate is that the average 60-year-old woman has around $280,000 in super.

For men, the average balance is approximately $319,743 for ages 55 to 59 and $395,852 for ages 60 to 64. This suggests that the average 60-year-old man likely has around $360,000.

For a couple where both partners are around 60 and close to average, that suggests a combined superannuation balance of roughly $640,000.

Could a single person retire comfortably at 60?

This is where the challenge appears.

The Association of Superannuation Funds of Australia (ASFA) estimates that a comfortable retirement requires around $630,000 in super for a single person at retirement age, assuming home ownership and some Age Pension support.

Compared with that figure, the average 60-year-old woman’s estimated balance of $280,000 is well short. The same is true for the average 60-year-old man with $360,000.

That does not mean retirement is impossible, but it does suggest that a comfortable, fully funded retirement from 60 would be difficult for the average single person without other assets, part-time work, or a lower spending target.

What about a modest retirement?

A modest retirement is far more achievable.

ASFA estimates that a modest retirement requires around $110,000 in super for a single person. On this measure, the average 60-year-old appears to be comfortably above the required balance.

However, there is one important catch. Retiring at 60 means there are still seven years before Age Pension eligibility at 67. That means super would need to fund the gap until pension support becomes available.

For a modest lifestyle, the average balance may be enough for some singles, particularly homeowners with low expenses, but the margin for error is not large.

Could a couple retire at 60?

For couples, the picture is much stronger.

ASFA estimates that a comfortable retirement requires around $730,000 combined for a couple. The average couple aged around 60 may have roughly $600,000 to $640,000 combined, which puts them below the comfortable benchmark but within reach.

A few more years of work, continued employer contributions, investment returns, or modest additional contributions could potentially close much of that gap.

For a modest retirement, ASFA estimates couples require around $120,000 combined. On this basis, the average couple at 60 is well ahead. Again, the main issue is funding the years between 60 and 67 before the Age Pension becomes available.

Foolish takeaway

So, is the average Australian super balance at 60 enough to retire?

For a modest retirement, probably yes for many homeowners, especially couples. For a comfortable retirement, the answer is more complicated.

The average single person is likely to fall well short of the comfortable benchmark. The average couple is closer, but still not quite there.

The post Is the average Australian superannuation balance enough to retire at 60? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why are Xero shares turning heads today?
• The ASX 200 rebound has already faded. Here’s why
• Vicinity Centres: $400m Sydney acquisition expands Outlet network
• Meridian Energy’s April retail sales and hydro storage climb in 2026

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.

A new report from Global X has provided an overview of the recent US earnings season. One key takeaway is that artificial intelligence focussed ETFs could be a winner. 

The key takeaway from the latest US reporting season is simple: company earnings are coming in stronger than investors expected. Most US companies have now reported, and earnings growth has been notably higher than last quarter, and importantly, it hasn’t been driven by just a handful of big tech names.

Why this is good news for ETF investors

According to the report, earlier concerns around the Middle East pushed oil prices higher and increased volatility, but markets have since settled and refocused on fundamentals.

For long-term investors, broad earnings strength is reassuring. It suggests the market is being supported by real business growth, not just hype or speculation.

This matters for three reasons:

• Broader earnings reduce reliance on any single company or sector
• It supports diversification – a core reason many investors use ETFs
• It lowers the risk that one weak area can derail overall portfolio outcomes

AI development 

The report also reinforced that artificial intelligence continues to attract attention, but what’s changed is where the evidence is showing up.

Large global technology companies are now spending real money on AI infrastructure including data centres, cloud capacity, chips and power. Capital spending plans across the biggest US tech firms have been revised higher, and cloud revenue growth is accelerating rather than slowing.

This confirms that  AI demand is real, not theoretical and the benefits are spreading beyond software into hardware, infrastructure and materials. 

Why artificial intelligence ETFs are a strategic play

The appeal of AI ETFs is the opportunity to diversify across the whole artificial intelligence landscape. 

AI is more than just chatbots and headline-grabbing software. 

The sector spans semiconductor manufacturers, cloud infrastructure providers, cybersecurity firms, robotics companies, data center operators, and businesses developing machine learning applications across industries such as healthcare, finance, and transportation.

How to target artificial intelligence ETFs

There are several options for investors to consider who are aiming to target this emerging sector. 

One option is the Global X Ai Infrastructure ETF (ASX: AINF). 

It focuses on the physical and operational backbone enabling AI’s global expansion. While most AI investments focus on chips or platforms, AINF ETF looks underneath the surface at the energy, data, and materials infrastructure powering this transformation.

This fund has risen more than 60% in the last 12 months. 

Another option to consider is the Global X Artificial Intelligence ETF (ASX: GXAI). 

It seeks to invest in companies that potentially stand to benefit from the further development and utilisation of artificial intelligence (AI) technology in their products and services, as well as in companies that provide hardware facilitating the use of AI for the analysis of big data.

The post Why US earnings is good news for artificial intelligence ETFs: Expert appeared first on The Motley Fool Australia.

More reading

• These ASX ETFs are smashing record highs 
• The best way to invest in AI on the ASX
• These ASX ETFs just hit 52-week highs but I’d still buy them
• 3 exciting ASX ETFs for growth investors to watch in May
• All-weather ASX ETFs to buy if the market crashes 20%

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) has been volatile so far in 2026, and has shed over 6% since peaking at an all-time high in early March.

Many companies on the index are facing significant headwinds and issuing profit warnings or downgrading guidance. But there are a few ASX 200 shares going from strength to strength, and brokers tip they could fly up to 126% higher over the next 12 months. 

Resolute Mining Ltd (ASX: RSG)

Resolute shares have enjoyed a fantastic rally over the past 12 months. At the time of writing, the shares are up 137% over the past year, and they’re 13% higher for the year to date. As an ASX 200 gold stock, Resolute’s shares have benefited from an uptick in gold over the past year. The miner has also reached some impressive feasibility milestones and posted a significant uptick in its gold production figures. The company expects production to keep climbing this year, too, to around 250,000 to 275,000 ounces at an all-in sustaining cost of $2,000 to $2,200. Brokers are very bullish on the shares and expect they could jump another 75% to $2.46 a piece, at the time of writing.

Life360 Inc (ASX: 360)

Life360 shares have faced a plethora of headwinds recently. From a tech-sector-wide sell-off, a rotation away from AI-related stocks, and concerns that prices had become overvalued. Slumping sentiment means the shares have now slumped 67% from an all-time high of $55.87 recorded in October last year. They’re also down 43% for the year to date. But the ASX 200 company recently reported a 38% increase in revenue for the latest quarter, and upgraded its FY26 adjusted EBITDA and revenue guidance. Brokers are very bullish about the outlook for Life360 shares over the next 12 months, with consensus of a strong upside ahead. They tip the shares to climb another 83% to $34.01.

Cochlear Ltd (ASX: COH)

Cochlear shares crashed in April after the ASX healthcare company downgraded its FY26 earnings guidance, citing weaker conditions across developed markets and softer demand. At the time of writing, the shares are trading at the lowest level seen in over a decade. The guidance downgrade came off the back of a softer-than-expected half-year result earlier this year, and a sector-wide rotation away from ASX healthcare shares, as global volatility, a weaker US dollar, higher US tariffs, and increased labour costs prompted investors to sell up their holdings. Brokers aren’t deterred, though. They still rate the stock as a buy and are tipping a potential 126% upside to $219.06, at the time of writing.

WiseTech Global Ltd (ASX: WTC)

WiseTech shares have been beaten down over the past 10 months, with the tech company hit by multiple and consecutive headwinds, including a tech-sector sell-off, AI concerns, and conflict in the Middle East, which sent its share price tumbling. The downturn has accelerated in 2026, and even after some promising upticks, the share price keeps on tumbling. At the time of writing, the shares have hit a four-year low. But the company maintains its FY26 guidance figures and expects a healthy EBITDA margin of around 40% to 41%. Brokers think the stock could stage a turnaround. They rate the ASX 200 share a strong buy and see 114% upside to $78.86 at the time of writing. 

The post 4 ASX 200 shares tipped to climb 75% to 126% higher appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Alkane Resources, Bapcor, PLS, and Resolute Mining shares are sinking today
• 3 ASX shares down over 60% that could be bargain buys
• WiseTech shares crash 65% — is the bottom near?
• ASX tech shares vs. ATEC ETF: How they fared during sector downturn

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 Cochlear, Life360, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Life360 and WiseTech Global. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building passive income from ASX shares is easier than you might think.

I believe the best approach is to keep things simple, focus on quality, and give the income stream time to grow.

Dividends can never be taken for granted, of course. Companies can cut or suspend payouts if earnings come under pressure. But with a sensible strategy, ASX shares can still be a powerful way to build income over time.

Here is how I would approach it.

Step one: choose quality dividend shares

The first step is to focus on businesses that can actually support their dividends.

A high dividend yield can look attractive, but it is not always a sign of value. Sometimes a yield is high because the share price has fallen and the market is worried that the dividend may not be sustainable.

That is why I would start with quality.

For me, that means looking for ASX shares with strong market positions, solid balance sheets, reliable cash generation, and a history of paying shareholders.

The big banks can play a role in an income portfolio because of their profitability and franked dividends. Miners such as BHP Group Ltd (ASX: BHP) can also provide large dividends when commodity markets are favourable, though investors need to remember that mining payouts can move around with earnings.

I would also consider defensive businesses such as Telstra Group Ltd (ASX: TLS), Woolworths Group Ltd (ASX: WOW), and Transurban Group (ASX: TCL). These companies operate in areas where demand can be more resilient than many parts of the economy.

The goal is not to find the highest yield possible. It is to build an income stream that has a better chance of lasting.

Step two: diversify the income stream

The second step is diversification.

I would not want my passive income to depend too heavily on one company or one sector.

The ASX is known for dividends, but it is also heavily weighted toward banks and miners. That can be useful, but it can also create concentration risk.

If an investor owns only bank shares, their income may be vulnerable to credit losses, mortgage competition, regulation, and the housing cycle. If they own only miners, their dividends may depend too much on commodity prices.

That is why I think a stronger income portfolio should include different types of businesses.

Banks can provide franked dividends. Retailers can add exposure to consumer spending. Infrastructure shares can provide more defensive cash flows. REITs can offer property-backed distributions. Telcos can add another layer of essential-service income.

A portfolio might include a mix of names such as Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), Transurban, Telstra, and HomeCo Daily Needs REIT (ASX: HDN).

The exact mix will depend on the investor, but the principle is the same. A wider spread can help reduce the damage if one dividend disappoints.

Step three: reinvest and let the passive income grow

The third step is to think long term.

Passive income can start small. A $10,000 portfolio yielding 4% would generate around $400 a year. That is useful, but it will not change someone’s financial life overnight.

The real power comes from building the portfolio over time.

While still working, I would reinvest dividends where possible. That allows the income to buy more shares, which can then generate more dividends in future years.

I would also keep adding fresh savings regularly.

Over time, the income stream can become much more meaningful. A $100,000 portfolio yielding 4% could generate around $4,000 a year. A $500,000 portfolio at the same yield could generate around $20,000 a year.

Those figures are not guaranteed, but they show why patience matters.

Foolish takeaway

Building passive income with ASX shares can be simple, but it still requires discipline.

I would start with quality dividend shares, spread the income across different sectors, and reinvest dividends while the portfolio is growing.

There will be market downturns, dividend cuts, and periods when cash feels more comfortable than shares.

But for investors with patience, I think ASX dividend shares can be a useful way to build an income stream that may support them for many years.

The post How to build passive income with ASX shares in 3 easy steps appeared first on The Motley Fool Australia.

More reading

• How high does Morgan Stanley think BHP shares will go?
• Buying BHP shares today? Here’s the dividend yield you’ll get
• Why CBA, Paladin Energy and CSL shares crashed  9% to 17% this week
• Are Telstra shares a top buy for passive income?
• CSL shares vs CBA shares: Which is the better buy?

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia, Transurban Group, and 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 Telstra Group, Transurban Group, and Woolworths Group. The Motley Fool Australia has recommended BHP Group, HomeCo Daily Needs REIT, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s sobering to think that a year ago CSL Ltd (ASX: CSL) shares were changing hands for $235 and were on an upwards trajectory.

The stock chart since August last year highlights the story of a series of downgrades and earnings disappointments, culminating in this week’s downgrade which pushed the shares past the psychologically important $100 barrier.

The question now is, will the stock recover any time soon, or is there more pain to come?

The analyst team at Macquarie has run the ruler over the company’s latest announcementys and come up with an answer, which we’ll get to shortly.

Plenty of bad news

Firstly, let’s have a look at the bad news CSL dumped on its shareholders this week.

Flagged as a 90 day review from the interim Chief Executive Officer Gordon Naylor, CSL announced that its FY26 revenue was now expected to come in at about US$15.2 billion, lower than the US$15.6 billion posted last year.

Profit is also expected to fall from US$3.3 billion to US$3.1 billion.

The company is also expecting to make write-downs worth about US$5 billion across FY26 and FY27 in addition to write-downs already announced at the half year results.

On the upside, the company’s Behring division expects to grow revenue in the second half, “supported by underlying demand, ongoing commercial execution and benefits from operational and transformation initiatives”.

Mr Naylor said the company has turnaround plans in place, they just haven’t borne fruit as yet.

As he said:

Our growth initiatives are working, but the financial benefits will take longer than previously anticipated to materialise. As a result, we have now revised down our 2026 financial year guidance. CSL’s culture and people continue to be first class, the industry is stable and growing and the company has evident strengths in plasma collections and influenza vaccines. I am confident that the company can be returned to profitable growth and my work is to position the business and the next CEO for success.

The company’s global search for a permanent Chief Executive is ongoing.

Analysts unimpressed

Macquarie’s research note on CSL, issued this week, was titled “A bloody mess”.

The analyst team went on to say:

We have applied a 20% discount to our target price to reflect earnings uncertainty. This incorporates risks around the scale/duration of immunoglobulin inventory issues, greater volume decline in the China albumin market, and ongoing management uncertainty. We would expect to partially or fully unwind this discount as these risks diminish, either through improved operational delivery or as further analysis provides us with a higher level of comfort that these risks have subsided.

Macquarie has a price target of $111 on CSL shares.

CSL is valued at $46.58 billion.

The post Where to from here for CSL shares according to Macquarie appeared first on The Motley Fool Australia.

More reading

• 5 ASX shares downgraded by brokers this week
• Why CBA, Paladin Energy and CSL shares crashed  9% to 17% this week
• CSL shares vs CBA shares: Which is the better buy?
• Why CSL shares could be one of the best buys on the ASX right now
• Is the worst over for CSL shares after this week’s sell-off?

Motley Fool contributor Cameron England has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.