Tag: Stock pick

Exchange-traded funds giant Vanguard has launched two new ETFs and a fund to give Australian investors access to the American market.

Like many ETFs, the new vehicles are designed as an easy way to access offshore markets and provide diversification, in this case across the world’s largest share market.

Invest in global leaders

The S&P 500 Index (SP: .INX) is one of the main benchmarks in the US market and, similar to the All Ordinaries Index in Australia, provides exposure to the top 500 companies listed in the US.

This, by its very nature, means it provides exposure to the major technology companies, with Nvidia currently the largest company by value in the S&P 500, followed by Apple, Microsoft, Amazon, Alphabet, and Meta Platforms.

Asia-Pacific head of investment management for Vanguard Capital Markets, Duncan Burns, said the new ETFs were an efficient way to gain exposure to the US market.

These new Australian‑based S&P 500 funds offer investors a straightforward, low-cost entry point to the world’s largest economy. An S&P 500 allocation can also serve as a tactical satellite position within a broadly diversified portfolio, offering targeted exposure to the U.S. stock market.

The new products include the Vanguard S&P 500 US Shares Index ETF (ASX: V500), an unhedged ETF, and the Vanguard S&P 500 US Shares Index (Hedged) ETF (ASX: V5AH), which is currency hedged to reduce the impact of foreign exchange movements.

New fund also available

There is also a new unlisted fund, the Vanguard S&P 500 US Shares Index Fund, which investors can access through the Vanguard platform.

Mr Burns said investors’ risk appetites would determine which fund was best for them.

By offering both hedged and unhedged options, as well as ETF and unlisted fund structures, we’re giving investors greater choice in how they access that exposure in a way that suits their goals and preferences.

V500 and V5AH have management fees of 0.07% per annum and 0.09% per annum, respectively, while the unlisted managed fund has a management fee of 0.16% per annum.

The ETFs are available to be traded from today.

Vanguard said it is currently Australia’s largest ETF manager with more than $90 billion in ETF funds under management at the end of January.

Other popular choices from Vanguard include Vanguard Australia Shares ETF (ASX: VAS) and Vanguard MSCI Index International Shares ETF (ASX: VGS), which provides diversification across about 1500 international companies from more than 20 countries.

The post Vanguard launches new US-focused ETFs appeared first on The Motley Fool Australia.

More reading

• The easy way to invest globally is with these ASX ETFs
• New to investing: 3 ASX ETFs to set and forget until 2036
• 5 fantastic ASX ETFs to buy and hold for 10 years
• Why these ASX ETFs could be strong buys for investors in their 40s
• The $10,000 ASX share portfolio I’d build for a 25-year-old today

Motley Fool contributor Cameron England 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 Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Paladin Energy Ltd (ASX: PDN) share price is under heavy pressure on Wednesday.

At the time of writing, shares are down 9.55% to $8.31, making it one of the weaker performers on the ASX today.

While this pullback is significant, the uranium miner’s shares are still up around 80% over the past 12 months.

So, what is behind the move today?

Uranium is lagging the broader commodity rally

One key reason for the sharp fall in Paladin shares appears to be the uranium price.

Right now, uranium is trading at about US$86.20 per pound. While that remains well above levels seen a few years ago, it has not been moving higher in line with the rest of the commodity market.

Oil, copper, and gold have all strengthened in recent weeks, supported in part by rising geopolitical tensions in the Middle East. Investors have rotated into energy and traditional safe-haven assets, while uranium has largely moved sideways.

There has also been fresh news in the uranium market, including a multi-billion-dollar supply agreement between India and Canada. While the deal highlights ongoing nuclear demand, it also reinforces that additional supply is entering the market.

Increased supply can place pressure on prices, which may be contributing to the softer tone in uranium stocks.

Key levels on the chart

From a technical standpoint, Paladin had been in a clear uptrend for most of the past year.

However, that trend has slowed in recent weeks.

The relative strength index (RSI) has eased back toward neutral levels, which suggests buying momentum has cooled. It is no longer in overbought territory.

The share price is also trading near its lower Bollinger Band, reflecting the recent increase in selling pressure.

In terms of key levels, the $8 area now stands out as important support. If shares hold above that level, the weakness may be contained. If it breaks lower, the next support zone appears closer to the mid $7 range.

On the upside, resistance is likely to emerge between $9 and $9.50, where the stock has previously struggled to move higher.

Foolish Takeaway

It is important to remember that Paladin is a uranium producer. Its earnings outlook is closely tied to uranium prices.

If uranium remains around US$86 per pound or drifts lower, sentiment toward uranium stocks may stay subdued in the short term.

That said, the broader outlook supporting nuclear power, energy security, and rising electricity demand remains firmly in place.

Today’s weakness appears to reflect profit taking following a strong 12-month run, rather than a change in Paladin’s fundamentals.

The post Why the Paladin share price is sinking 9% today appeared first on The Motley Fool Australia.

More reading

• Which ASX uranium stock is the smarter buy: Nexgen Energy or Paladin Energy?
• Here are the top 10 ASX 200 shares today
• Paladin share price jumps after major Canadian project approval
• Paladin share price on ice pending major announcement
• Here are the top 10 ASX 200 shares today

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.

The BHP Group Ltd (ASX: BHP) share price has tumbled further in early-morning trade on Wednesday as conflict in the Middle East continues to put pressure on energy and commodity markets, and investor sentiment softens.

At the time of writing, the shares are down 4.33% to $5.20 a piece. It’s the second consecutive loss. The shares closed 2.62% lower yesterday afternoon.

Despite the drop, the BHP share price is still 20.59% higher for the year to date and 39.79% above where it was a year ago.

What has happened?

The miner reported impressive half-year earnings last month, prompting investors to flock to the stock. On the bottom line, the ASX 200 miner achieved a 22% increase in underlying profit to US$6.20 billion. This saw management declare a fully-franked interim dividend of 73 US cents (AU$1.03) a share, up 30% in Aussie dollar terms and up 46% in US dollar terms.

The company’s share price hiked nearly 18% between the announcement and the close of the ASX on Friday last week. It’s likely that some softening in the share price this week is due to cooling investor interest following the sharp uptick.

At the same time, soaring geopolitical uncertainty as the US and Israeli war against Iran continues to intensify, is also frightening investors. The Middle East Conflict has boosted the US dollar and dampened demand expectations for commodities. Generally, a stronger US dollar tends to make US-dollar-priced commodities less attractive, which can dent the share prices of miners, such as BHP.

Meanwhile, to add to this week’s headwinds, there have been recent reports that BHP Queensland mines can no longer compete for investment and that the company is receiving no returns from the projects. The update will raise more concern for investors about the company’s outlook.

What’s next for the BHP share price?

TradingView data shows that the majority of analysts still have a hold rating on BHP shares. Of 20 analysts, 11 rate the mining giant’s stock as a hold, and 7 have a buy or strong buy rating. Another two have a sell or strong sell rating on BHP shares. This is an improvement from last month, when three analysts had a sell rating on the stock.

The average target price is currently $52.74 per share, which, after the latest rally, implies a 4.74% downside at the time of writing. 

Although some analysts are bullish that the shares could climb 22.73% to $67.95 a piece this year. And others think the stock could shed 35.95% and tumble to $35.46.

Many of the target prices have been raised over the past week. Late last month, Jason Fairclough of Bank of America put a 12-month price target of $68 on BHP shares, up from $57 previously.

Citi also updated its price target, lifting it from $49.60 to $53.41 while keeping a hold rating. As did Barclays, which lifted its target to $52.84 and maintained its hold rating.

The post What’s next for the BHP share price? appeared first on The Motley Fool Australia.

More reading

• Want to receive the BHP, Rio Tinto, and Woodside dividends? Here’s what you need to do
• 3 must-own ASX blue-chip dividend stocks for Aussie investors
• Why the BHP share price rocketed 16% in February
• 1 miner, 1 bank, and 1 ASX tech share I’d buy this month
• Which ASX 200 mining shares raised their dividends this earnings season?

Citigroup is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. 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 recommended Barclays Plc. 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.

If I had $5,000 to invest in the ASX today, I’d consider splitting it across a mix of dependable income, long-term growth, a cyclical opportunity, and a broad exchange-traded fund (ETF) to smooth the ride.

Here’s how I’d think about allocating it.

Transurban Group (ASX: TCL)

Every portfolio needs ballast. For me, Transurban could play that role. It owns and operates toll roads across major Australian cities and in North America. These are long-life infrastructure assets with relatively predictable cash flows.

Traffic volumes can change short term, but over time, population growth and urban expansion tend to support an increase in usage. Many of its concessions also include inflation-linked toll escalations, which are helpful in protecting real returns.

I’d allocate $1,500 here for stability and income. It’s not an ASX share I expect to double quickly, but it’s one I’d feel comfortable holding through most market cycles.

Pro Medicus Ltd (ASX: PME)

If Transurban is the steady hand, Pro Medicus is the growth engine.

Pro Medicus provides high-end imaging software to hospitals and healthcare providers globally. Its Visage platform continues to win contracts with major US health systems, and the long-term shift to more sophisticated imaging workflows remains intact.

Yes, the valuation is rarely cheap in traditional terms. But I’m willing to pay up for a business with strong margins, recurring revenue, and global expansion opportunities.

A $1,500 allocation gives exposure to what I see as one of the ASX’s highest-quality growth stories without going all-in on a single theme.

PLS Group Ltd (ASX: PLS)

I like having at least one cyclical or commodity-exposed name in a portfolio.

PLS Group gives exposure to lithium, a key input in battery production and electric vehicles. Lithium prices have been volatile, but demand for electrification and energy storage isn’t going away.

This is higher risk than the first two picks. Commodity prices move in cycles, and sentiment can shift quickly. That’s why I’d size it slightly smaller at $1,000.

If lithium markets tighten further and pricing strengthens further, the upside could be meaningful. If not, the position size keeps overall risk contained.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

Finally, I’d round things out with broad diversification. The Vanguard Diversified High Growth Index ETF gives exposure to local and international equities, with a small allocation to bonds. It’s designed for long-term capital growth and holds thousands of underlying securities across markets.

For me, this is the set-and-forget portion of the portfolio. It reduces reliance on any single company and ensures I’m participating in global growth rather than just local themes.

Allocating $1,000 here makes the overall structure more resilient.

Foolish Takeaway

If I had $5,000 to put to work today, I’d spread it across a mix of dependable earners and long-term growth plays rather than betting it all on one idea.

Transurban, Pro Medicus, PLS Group, and the Vanguard Diversified High Growth Index ETF give me that blend. Over time, I believe that kind of balanced approach is far more powerful than trying to swing for the fences with a single stock.

The post $5,000 to invest? Here’s how I’d split it across the ASX appeared first on The Motley Fool Australia.

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

Owning Telstra Group Ltd (ASX: TLS) shares could be a smart move over the coming years, with analysts expecting the business to deliver rising profits.

I view growing profits as the most important factor for delivering a higher share price and a growing dividend. If a company’s profit isn’t rising, then why would the market want to send the Telstra share price higher over the long term?

Additionally, in terms of a company’s financials, higher earnings are required to sustainably fund larger dividend payments. That’s why I think it’s very important for passive income investors to focus on the likely direction of the net profit first, before thinking about the dividend yield.

With that in mind, let’s take a look at where Telstra’s net profit is projected by analysts to go over the next few years.

HY26 earnings recap

The telco business recently reported its FY26 half-year results, which included a 4% increase in mobile revenue to $5.8 billion and a 4% increase in mobile operating profit (EBITDA) to $2.7 billion.

Mobile service revenue increased 5.6% thanks to growth in handheld price changes and wholesale user growth.

In terms of average revenue per user (ARPU) growth, there was a 4.8% rise for postpaid handheld, 14.7% for prepaid handheld, and 7% for wholesale. Mobile handheld users increased by 135,000 in total, with a 16,000 rise in postpaid retail, a 21,000 rise in prepaid retail, and a 98,000 increase in wholesale.

The above strength helped the business deliver 0.2% total income growth to $11.8 billion, EBITDA growth of 4.7% to $4.4 billion, and net profit growth of 9.4% to $1.1 billion. Cash earnings per share (EPS) increased by 19.7% to 14 cents and the dividend per share was hiked by 10.5% to 10.5 cents.

Broker UBS noted that, with the result, Telstra continued to demonstrate the strength of its mobile business and its general cost control, despite other segments being generally weaker.

UBS remains constructive on the growth outlook for the business and continues to forecast that cash operating profit (EBIT) can grow at a compound annual growth rate (CAGR) of 5% over the next four years, thanks to CPI-linked mobile price increases and continued cost control through AI productivity savings.

However, the fixed enterprise, active wholesale, and international are weaker than what UBS was expecting, though cost control is helping operating profit.

FY26

UBS said that it remains constructive on margin expansion at Telstra, with near-term initiatives “likely to see cost growth limited to 1.5% CAGR over the next four years”.

On cost growth, UBS noted that Telstra recently highlighted up to 650 redundancies (around 1.5% of the Telstra workforce), benefits from the consolidation of software and IT providers, and a joint venture with Accenture to help cost reduction benefits, as well as faster product-to-market times.

The broker UBS said it’s forecasting the group EBITDA margin will expand by an average of 60 basis points (0.60%) per year from FY26 to FY30, driven by ongoing efficiencies as AI adoption increases.

Taking all of the above into account, UBS predicts that Telstra could generate a net profit of $2.3 billion in FY26. Growth is usually a long-term positive for Telstra shares.

FY27

As the above commentary suggests, the business is projected by UBS to see a rising EBIT margin in the coming years. UBS predicts the EBIT margin could climb to 18% in FY27, showing increasing profitability from FY26’s projected EBIT margin of 17.4%.

The 2027 financial year is forecast to see a net profit of $2.45 billion.

FY28

Profitability could increase even more in the 2028 financial year, which could see the business report a net profit of $2.6 billion on an EBIT margin of 18.7%.

FY29

The FY29 profit could get even better for owners of Telstra shares, with the EBIT margin projected to increase to 19.5%, helping net profit rise again to a projected $2.85 billion.

FY30

The last year of this series of projections could mean the business sees an increase in profitability to $3.2 billion in FY30. The EBIT margin could increase to 20.8%, showing the business is expected to make more money from its asset base.

While Telstra is rated neutral (not a buy or sell) by UBS, with a price target of $5.20, the broker said it is the preferred business exposure in the Australian telecommunications space.

The post Here’s the latest earnings forecast out to 2030 for Telstra shares appeared first on The Motley Fool Australia.

More reading

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• The best ASX dividend stock to buy in March

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

Shares in CSL Ltd (ASX: CSL), already under pressure over the past year, took a further tumble after the company announced its first-half results in mid-February.

But the analyst team at UBS has run the ruler over the results and believes there’s plenty of upside from current levels for the CSL share price.

Firstly, let’s have a look at what CSL reported last month.

Profits slide

The blood products company reported total revenue of US$8.3 billion, down 4% while net profit fell 7% to $1.9 billion.

The company’s chief financial officer, Ken Lim, said it was an unsatisfactory result.

We are clearly not satisfied with our performance and have implemented a number of initiatives to drive stronger growth going forward. Our first-half results were also adversely impacted by a number of factors including government policy changes, one-off restructuring costs and impairments. In the second half we have an ambitious growth plan, driven by immunoglobulin (Ig), albumin and our newly launched products.

Mr Lim said CSL was continuing to advance its transformation strategy and was making strong progress on cost-cutting initiatives.

CSL also announced it would extend its share buyback, increasing it from US$500 million to US$750 million.

The company also maintained its guidance for the full year of approximately 2-3% revenue growth and 4-7% net profit growth, “excluding one-off restructuring costs and impairments”.

CSL shares are looking cheap

The UBS team has reviewed the results and believes CSL shares are oversold.

Their research note sent to clients this week has the title, “A market leader at a discount”, and UBS says while CSL struggled in a number of sectors, it still retains a strong market share and is undervalued at the current share price.

UBS said that while CSL reported a 4% slump in plasma-derived therapy sales, it still held its position as the leading supplier with a market share of 31%.

UBS added regarding the flu vaccine market:

Global flu vaccine sales contracted by nearly 4% in 2025 as uptake slowed in the US. Despite the weak market, CSL Seqirus reported seasonal flu sales growth of 3% which was sufficient to take its share to roughly one third of the market. We attribute this success to the group’s differentiated portfolio and entry into European markets.

UBS has a price target of $235 on CSL shares, compared with the current price of $144.95, which is near the bottom of its 12-month trading range.

CSL was valued at $70.5 billion at the close of trade on Tuesday.

The post How high does UBS think CSL shares will go? appeared first on The Motley Fool Australia.

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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. 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.

Shares in Jumbo Interactive Ltd (ASX: JIN) have tumbled to their lowest level since January 2019 as investors continue to flee risk assets.

Right now, the Jumbo share price is down 2.70% to $8.64 amid a broader sell-off across the ASX linked to escalating conflict in the Middle East. The stock is now down more than 25% over the past year and well below its 2024 highs above $15.

With sentiment fragile, the key question is whether this pullback has gone too far.

Let’s take a closer look.

A brutal chart breakdown

Looking at the chart, Jumbo’s trend has clearly deteriorated over the past 12 months.

The stock has been making a series of lower highs and lower lows, confirming a sustained downtrend. Importantly, the recent fall has pushed shares below the $9 level, which had previously acted as psychological support.

At $8.64, the next obvious historical support zone sits around $8.50. Below that, there is limited visible support until the $7.50 to $8 range based on pre-2020 trading levels.

Momentum indicators suggest the sell-off may be stretched in the short term. The relative strength index (RSI) is hovering around 30, placing the stock near oversold territory.

Meanwhile, the share price is trading near the lower Bollinger Band, another sign that volatility has expanded and the stock is extended on the downside. In previous cycles, similar conditions have led to short-term relief rallies.

Is the business broken?

While the share price has been punished, the latest half-year result released last Wednesday showed continued growth across key metrics.

For the 6 months to 31 December 2025, Jumbo reported total transaction value of $524 million, up 15.6% year-on-year. Group revenue rose 29% to $85.3 million, while underlying EBITDA increased 22.6% to $37.5 million.

The company also declared an interim dividend of 12 cents per share, reflecting a payout ratio of 49% and sitting at the top end of its 30% to 50% target range.

Importantly, management upgraded parts of its FY26 outlook, including expectations for its Dream Giveaways UK business and Canadian managed services segment.

Buying opportunity or value trap?

At $8.64, Jumbo trades on a price-to-earnings (P/E) ratio of around 14.5 times with a dividend yield near 4.9%. That valuation is well below where the stock traded during its growth phase in 2021 and 2022.

If geopolitical tensions ease and broader market confidence stabilises, a recovery toward former resistance around $10 to $11 would not be unrealistic.

That said, the chart remains weak in the short term, and a sustained move above $9.50 would help signal a potential trend reversal.

At a 7-year low, investors must balance ongoing technical weakness against a business that continues to generate profits and deliver growth.

The post Jumbo hits a 7-year low as markets continue to tumble. Time to buy the dip? appeared first on The Motley Fool Australia.

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

Growth shares have had a tough run. Concerns about artificial intelligence (AI) disruption and geopolitical risks have pushed a number of high-quality tech names well below their prior highs. That volatility can be uncomfortable, but it can also create opportunity.

Here are three ASX growth shares I think investors could look back on and wish they’d bought at today’s prices.

Life360 Inc (ASX: 360)

Life360 isn’t your typical software business.

At its core, it operates a family safety and location-sharing platform that has become deeply embedded in the daily lives of millions of users. The network effect here is powerful. Once families rely on the app for coordination and safety, switching becomes unlikely.

The company has been growing its monthly active users strongly and is increasingly monetising through paid subscriptions. As the paying circle base expands, margins have room to improve.

Some investors have lumped Life360 in with broader tech weakness, particularly around AI disruption fears. But this is not an enterprise SaaS provider that can easily be replaced by a new AI tool. It is an ecosystem built over more than a decade, with data, brand trust, and product depth that would be difficult to replicate quickly.

If user growth continues and monetisation improves, today’s share price could look conservative in hindsight.

Siteminder Ltd (ASX: SDR)

SiteMinder operates in a niche that I think has enormous long-term potential: hotel distribution and revenue management software.

Hotels increasingly rely on digital channels to manage bookings across online travel agencies, direct websites, and other platforms. SiteMinder sits at the centre of that ecosystem, helping properties manage rates, availability, and performance.

The opportunity is global. There are hundreds of thousands of accommodation providers worldwide, many of which are still underpenetrated when it comes to modern, cloud-based tools.

Revenue growth has remained solid, and as the business scales, operating leverage should start to show through more clearly. If management continues to execute and drive adoption internationally, earnings could compound at a strong rate over the next decade.

At current levels, I see a company with structural tailwinds trading at a far more reasonable valuation than it was during the market’s peak optimism.

Xero Ltd (ASX: XRO)

Xero has been one of the ASX’s great long-term growth stories.

It provides cloud-based accounting software to small and medium-sized businesses across Australia, New Zealand, the UK, and increasingly North America. Its ecosystem of integrations and partners creates meaningful switching costs once businesses are onboarded.

Recent concerns around AI and the integration of major acquisitions have weighed on sentiment. But when I step back, I still see a business with strong recurring revenue, global expansion opportunities, and improving margins.

Accounting and compliance are mission-critical functions. Even as AI tools evolve, small businesses still need trusted platforms to manage payroll, tax, and financial reporting. In fact, AI could enhance Xero’s value proposition rather than undermine it.

If subscriber growth and profitability continue trending in the right direction, I wouldn’t be surprised if today’s share price is looked back on as a very attractive entry point.

Foolish Takeaway

Buying ASX growth shares when they are flying high feels easy. Buying them after a sell-off feels far harder.

But history suggests that high-quality growth businesses, purchased at more reasonable prices, can deliver outsized returns over time.

Life360, SiteMinder, and Xero each operate in markets that are likely to be larger in five or ten years than they are today. If they execute well from here, I think investors could look back and wish they had bought at these cheap levels.

The post 3 ASX growth shares you’ll wish you’d bought at these cheap prices appeared first on The Motley Fool Australia.

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

The ASX dividend income stock space looks like a smart place to look for income given their ability to provide stability and hopefully increase their underlying value over time.

The market may question how much long-term earnings growth certain companies in the tech sector can produce as AI develops further.

I’m optimistic that the following businesses can continue to provide positive investment returns and growing income.

Centuria Industrial REIT (ASX: CIP)

Industrial properties could be a smart move by investors looking for resilient income, given the importance of things like distribution centres and other logistics, refrigerated space and data centres.

This particular ASX dividend income stock owns a portfolio of industrial properties in high-demand areas, leading to low vacancy rates and stronger rental growth.

In the first half of FY26, the business reported that net operating income (NOI) grew 5.1%. Future rental growth looks compelling in the next several years with the portfolio under-rented by an average of around 20% – this can be reset as rental contracts come up for renewal.

It’s expecting to grow its FY26 funds from operations (FFO – rental profit) per security by up to 6% and the distribution per security is guided to increase by 3% to 16.8 cents. I think the business looks like a solid pick for resilient operating profit and distributions – its FY26 distribution equates to a 5.2% distribution yield, at the time of writing.

It looks cheap, with the unit price trading significantly below the net tangible assets (NTA) per unit of $3.95 as at 31 December 2025.

WAM Microcap Ltd (ASX: WMI)

This ASX dividend income stock is a listed investment company (LIC) that aims to make investment profits by investing in small-cap ASX shares.

The portfolio is not heavily exposed to the tech sector. In-fact, at the end of January 2026, only 15% of the portfolio was invested in the IT sector.

I view it as significantly diversified thanks to the fact that it’s invested in dozens of different businesses. Industrials (20.6%), consumer discretionary (18.7%) and financials (17.4%) all had a larger weighting in the portfolio.

But, this is not just a diversification play – it has performed admirably for investors. The portfolio has returned an average of 16.2% per year since June 2017, before fees, expenses and taxes. This has been enough to fund good dividends.

Pleasingly, it has increased its annual dividend every year between FY18 and FY25, aside from FY24 when it maintained the payout.

It’s expecting to grow its annual payout in FY26 slightly to 10.7 cents per share, translating into a potential grossed-up dividend yield of 9.4%, including franking credits.

The post 2 star ASX dividend income stocks for March 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Wam Microcap. 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.

Flight Centre Travel Group Ltd (ASX: FLT) shares are down around 25% since this time last year. 

That’s not surprising. Travel is cyclical. Geopolitical tensions can weigh on short-term demand and ultimately investor sentiment. After all, consumers can pull back quickly when uncertainty rises.

But when I look at Flight Centre, I’m not thinking about the next quarter. I’m thinking about where the business could be in five to ten years.

And on that time frame, I think the opportunity looks far more compelling.

The recovery is still playing out

Flight Centre’s latest half-year result showed profit growth despite what management described as a “challenging global trading climate.”

Underlying profit before tax rose 4% to $124.6 million, while underlying EBITDA increased 9%. Total transaction value hit a record $12.5 billion, up 7%.

This isn’t a company in decline. It is one that has rebuilt profitability following COVID, tightened its cost base, and is now leveraging scale again.

Importantly, management reaffirmed full-year guidance of $315 million to $350 million in underlying profit before tax. That tells me confidence remains intact despite short-term volatility.

Technology is strengthening the moat

One aspect of Flight Centre that I think is underappreciated is its investment in AI and digital capability.

The company is embedding artificial intelligence (AI) tools across both corporate and leisure segments to improve productivity, reduce manual handling, and enhance personalisation. Management highlighted that more than 8 million emails have already been processed and prioritised more efficiently using AI tools.

This matters. 

Travel may look like a commoditised industry from the outside. But when you combine scale, trusted brands, corporate relationships, and AI-enabled productivity, you start to build a meaningful competitive advantage.

Flight Centre isn’t just a retail storefront network anymore. It’s evolving into a technology-enabled global travel platform.

A growing ASX dividend stock

If you’re buying this as an ASX dividend stock, income is a key part of the story.

According to CommSec, consensus estimates point to fully-franked dividends per share of 49 cents in FY26, 57 cents in FY27, and 57.5 cents in FY28.

At the current share price of $11.95, that implies forward dividend yields of roughly 4.1% for FY26, 4.8% for FY27, and just under 5% for FY28.

For a business that is still rebuilding earnings momentum and guiding to further profit growth, I think that looks attractive.

And unlike some high-yield names, this dividend is being paid from a business that is expanding, not shrinking.

Looking past the headlines

Yes, short-term travel demand can wobble. War in the Middle East, economic slowdowns, or currency volatility can all temporarily affect booking volumes.

But history suggests that travel demand rebounds. People continue to prioritise experiences, holidays, and corporate travel.

Flight Centre has survived multiple downturns over the decades. It has emerged from the COVID crisis leaner, more disciplined, and more digitally capable.

At $11.95, down 25% from last year, I think the market is still pricing in more fragility than the business deserves.

Foolish takeaway

Flight Centre is not a defensive utility. It will always carry cyclical risk.

But it is a global travel leader with record transaction volumes, improving productivity, reaffirmed guidance, and a growing fully-franked dividend.

For long-term investors willing to look beyond near-term geopolitical noise, I think this ASX dividend stock looks like a compelling buy to hold for years.

The post 1 Australian dividend stock down 25% to buy now and hold for years appeared first on The Motley Fool Australia.

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