Tag: Stock pick

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

The list of corporations with a market capitalization of $1 trillion is short — but what about those that have hit $5 trillion? It’s hardly a list, as it’s composed of just one company, Nvidia.

However, several others aren’t too far behind. One of them is Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), the parent company of Google, which has a current market cap of $3.4 trillion. Will it be the next to hit $5 trillion? 

The case for Alphabet

Alphabet isn’t the corporation closest to the $5 trillion mark. Other than Nvidia, which has already achieved that milestone but is currently worth less than that, Microsoft and Apple are both ahead. The former has a market capitalization of $3.7 trillion, while the latter is valued at $3.9 trillion.

It’s also worth mentioning Amazon, which is currently trailing at $2.4 trillion. However, it may be able to catch up, provided it gains significant market value while its peers decline over the next couple of years.

There are good reasons to believe Alphabet could perform at least as well as Amazon for the foreseeable future. Both are leaders in the cloud computing market. Amazon has a larger market share, but Alphabet is growing sales in that division more quickly.

The rest of their businesses put Alphabet squarely in the lead for one reason — margins.

AMZN Revenue (Quarterly) data by YCharts.

Amazon generates higher sales, but Alphabet has higher profits and higher margins. Meanwhile, Alphabet still reigns supreme in search, despite challenges from artificial intelligence (AI) chatbots.

The company has made changes to address this issue, including an AI overview and an AI mode within its renowned search engine. Furthermore, Alphabet eliminated a major risk this year and avoided the worst outcome — that of losing its Chrome browser, a crucial part of its advertising empire — in its antitrust lawsuit. In my view, Alphabet has enough momentum to stay ahead of Amazon in the next couple of years.

What about Apple? Despite the iPhone maker’s recent better-than-expected financial results, it’s still facing significant threats.

The tariff situation is constantly evolving, and more news on that front could negatively impact Apple’s stock price, as it still manufactures most of its products in China, a country President Trump has targeted with tariffs. Alphabet is also already cashing in on its AI strategy, whereas Apple has been lagging behind its similarly sized tech peers.

Alphabet’s AI offerings through its cloud division, including its AI overviews and AI mode, as well as algorithms that increase engagement on YouTube — leading to higher ad revenue — are all important tailwinds for the company. So Alphabet could perform much better than Apple and beat the iPhone maker to a $5 trillion valuation.

What about Microsoft? Both companies are thriving in the cloud and AI spaces. Microsoft arguably has an edge over Alphabet in both. However, Alphabet appears more reasonably valued when considering traditional valuation metrics.

GOOG Price-to-Earnings Ratio (Forward) data by YCharts.

That’s one reason Alphabet could overtake even Microsoft to become the next $5 trillion company.

The more important question

Of course, outcomes are always hard to predict. A lot could happen in the next 12 months (or so) that would disrupt Alphabet’s path to a $5 trillion market cap, and one of its peers could get there before.

Will Alphabet perform well enough in the next couple of years to be the next company to reach this goal? That’s less important than determining whether the stock is worth holding for long-term investors, regardless of what happens in the short term. In that department, Alphabet looks like a great pick. It’s a leader in several industries, boasting massive growth prospects in digital advertising, cloud computing, AI, and streaming.

The tech giant also has a hand in innovative and potentially disruptive new sectors, such as self-driving vehicles. Further, Alphabet benefits from a strong competitive advantage, thanks to its brand name, switching costs in cloud computing, and network effects in internet search.

After eliminating a major antitrust threat, the company’s prospects look stronger than ever. All things considered, Alphabet appears to be a buy, even if it doesn’t become the next $5 trillion company. 

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

The post Will Alphabet be the world’s next $5 trillion stock? 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

• Warren Buffett is selling Apple and piling into this “Magnificent Seven” stock trading at a fraction of Tesla’s valuation
• The best ASX ETFs to buy and hold for 20 years
• Billionaire Warren Buffett sold 74% of Berkshire’s stake in Apple and has piled more than $4 billion into a “Magnificent” stock that’s up over 11,000% since its IPO
• Warren Buffett’s Berkshire Hathaway just bought one of my favorite stocks. Is it time to pile in?
• Warren Buffett’s Berkshire quietly took a position in Alphabet. Is it the best AI bet right now?

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

For investors chasing reliable passive income, the Australian share market remains one of the best places in the world to look.

Plenty of homegrown ASX shares deliver consistent earnings, strong cash flow, and fully franked dividends.

If you are looking to build or top up an income-focused portfolio, here are five ASX dividend shares that could be worth considering:

Adairs Ltd (ASX: ADH)

Adairs is one of Australia’s leading homewares retailers. It has returned to form recently following a difficult retail cycle. With improved inventory management, stronger online performance and cost efficiencies flowing through, the business now sits in a healthier financial position. As consumer sentiment gradually improves, Adairs’ margin profile and cash generation should benefit, supporting its fully franked dividend. It currently trades with an estimated forward dividend yield of 6.8%.

BHP Group Ltd (ASX: BHP)

BHP is one of the most dependable dividend payers on the ASX. Its world-class mining assets generate enormous free cash flow through the cycle, allowing the company to continue rewarding shareholders even when commodity prices soften. Analysts expect BHP to maintain strong fully franked distributions over the coming years thanks to its low-cost operations and robust balance sheet. For example, the consensus estimate is for a 3.9% dividend yield in FY 2026.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to look at is Coles. It is a favourite among defensive income investors, and for good reason. This supermarket giant generates consistent earnings through all economic conditions, supported by steady demand for essential goods. In addition, its focus on automation, cost efficiencies, and private-label expansion is helping push margins higher, which bodes well for its future dividends. The market is expecting a fully franked 3.5% dividend yield this year.

Dicker Data Ltd (ASX: DDR)

Dicker Data is an IT hardware and software distributor with a long track record of steady revenue growth, resilient margins, and rising dividends. Its relationships with top-tier technology vendors, along with its focus on recurring product demand, have helped support consistent cash flow. As digital infrastructure spending remains strong across the corporate sector, Dicker Data is positioned to continue rewarding shareholders with fully franked dividends. It currently trades with an estimated forward dividend yield of 4.6%.

Telstra Group Ltd (ASX: TLS)

Finally, Telstra could be a core holding for income-focused investors. With strong demand for mobile services, expanding 5G adoption, and ongoing improvements to network efficiency, Telstra continues to deliver stable earnings. Management has outlined plans to lift dividends gradually through its Connected Future 30 strategy, supported by recurring cash flow from mobile, enterprise and infrastructure businesses. This is expected to underpin a 4.1% fully franked dividend yield in FY 2026.

The post Buy Telstra and these ASX dividend shares for passive income appeared first on The Motley Fool Australia.

More reading

• Revealed: BHP and 4 other ASX 200 mining stocks rank among top global copper producers
• These 2 ASX 300 shares are bargain buys
• Forget term deposits! I’d buy these two ASX 200 shares instead
• Best buy for dividends today: Coles or Woolworths shares?
• Why is the BHP share price lifting today?

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 Adairs. The Motley Fool Australia has positions in and has recommended Adairs, Dicker Data, and Telstra 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.

Copper is one of the most important metals of the modern era.

It is used almost everywhere thanks to its durability, corrosion resistance, and strong thermal and electrical conductivity.

Such traits make the metal a key cog in construction, power grids, transportation, household appliances, and consumer electronics.

And as the world electrifies, the strategic importance of copper is rising.

Electric vehicles (EVs) require about four times more copper than conventional internal combustion engine vehicles.

And AI data centres depend heavily on the metal for power distribution and cooling.

Together, these factors point to a strong long-term growth profile for global copper demand.

In turn, some of the world’s largest mining companies have been growing their exposure to copper over the past few years.

These include ASX 200 mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO).

But which ASX 200 mining stocks rank amongst the biggest copper producers globally?

Recent analysis from industry expert Benchmark Mineral Intelligence has revealed the world’s top 25 copper miners, based on production during the third quarter of 2026.

Below, we present the five ASX 200 mining stocks that made the list.

BHP shares take gold

According to Benchmark’s analysis, BHP was the world’s biggest copper miner in the third quarter of the year.

The Big Australian stood at the top of the podium after producing nearly 500,000 tonnes of the metal during the period.

American outfit Freeport-McMoRan Inc (NYSE: FCX) claimed silver with 414,000 tonnes, and Chilean state-owned miner Codelco took bronze with about 304,000 tonnes.

4 other ASX 200 mining stocks make the list

Rio Tinto captured seventh spot on the coveted list after churning out 204,000 tonnes of copper during the quarter.

However, no other ASX 200 mining stocks finished in the top ten.

Pure-play copper miner Capstone Copper Corp CDI (ASX: CSC) was the next best ASX 200 mining stock, finishing in 18th place.

The Canadian-based outfit produced a touch over 55,000 tonnes of the metal from its portfolio of assets in the Americas.

Somewhat surprisingly, Newmont Corporation CDI (ASX: NEM) also made the list as the world’s 20^th largest copper miner.

To elaborate, the company is best known for being the number one gold producer on the planet.

However, it also churned out 35,000 tonnes of copper during the quarter.

Sandfire Resources Ltd (ASX: SFR) was the final ASX 200 mining stock to rank amongst the world’s leading copper miners.

It produced more than 24,000 tonnes of the metal to take 24^th spot.

Copper price overview

The copper price has rallied by more than 20% in 2025, climbing to about US$10,700 per tonne at the time of writing

For comparison, the All Ordinaries Index (ASX: XAO) has lifted by around 3.8% during the same timeframe.

However, some analysts are forecasting even stronger gains ahead.

For instance, JPMorgan Chase & Co (NYSE: JPM) believes that a widening global supply deficit could drive copper prices to US$12,000 per tonne by the first quarter of next year.

The post Revealed: BHP and 4 other ASX 200 mining stocks rank among top global copper producers appeared first on The Motley Fool Australia.

More reading

• Buy Telstra and these ASX dividend shares for passive income
• Why is the BHP share price lifting today?
• 5 things to watch on the ASX 200 on Monday
• Invested in ASX mining shares? Expert recommends diversity over iron ore concentration
• Buy BHP and this blue chip ASX dividend share

JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Bart Bogacz 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 JPMorgan Chase. 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.

With the year drawing to a close, December can be a great time to reassess your portfolio.

Markets have been choppy because of interest rate uncertainty and ongoing volatility in global tech, but this also means some high-quality exchange traded funds (ETFs) are now trading at appealing levels ahead of the final month of the year.

As a result, if you have $10,000 ready to put to work before 2026 arrives, here are five ASX ETFs well worth considering.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Cybersecurity continues to be one of the fastest-growing global industries, and the BetaShares Global Cybersecurity ETF gives investors direct exposure to the stocks leading that charge. Its portfolio includes major names such as CrowdStrike (NASDAQ: CRWD) and Palo Alto Networks (NASDAQ: PANW), and Fortinet (NASDAQ: FTNT), which are benefiting from surging demand for cloud security, AI-driven threat detection, and enterprise protection. With cyberattacks rising globally, this ASX ETF taps into a long-duration megatrend that should continue powering ahead into the 2030s.

BetaShares India Quality ETF (ASX: IIND)

Another ASX ETF to look at is the BetaShares India Quality ETF. It focuses specifically on high-quality Indian companies with strong fundamentals across technology, finance, consumer goods and infrastructure. Holdings such as Infosys (NYSE: INFY), HDFC Bank (NSEI: HDFCBANK), and Tata Consultancy Services (NSEI: TCS) are positioned to benefit from rising incomes, urbanisation, digital adoption, and ongoing economic reform. For investors wanting exposure to a modernising, fast-expanding emerging market, this fund could be worth a look. Analysts at Betashares recently named it as one to consider buying.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF is designed for investors who want exposure to US companies with sustainable competitive advantages. These are the kind of businesses that can protect profits, widen margins and compound value over long periods. Its holdings change periodically but currently include giants like Adobe (NASDAQ: ADBE), Walt Disney (NYSE: DIS), and Nike (NYSE: NKE).

Vanguard Australian Shares Index ETF (ASX: VAS)

If you want simple, broad exposure to the Australian share market, the Vanguard Australian Shares Index ETF remains the easiest and most cost-effective way to get it. This fund tracks the largest companies on the ASX, including Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and CSL Ltd (ASX: CSL). It could work well as a core portfolio holding for those wanting long-term stability, broad diversification and franked dividend exposure.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

For investors who value income more than growth, the Vanguard Australian Shares High Yield ETF could be worth a shout. It focuses on Australian shares with higher-than-average dividend yields, providing a steady stream of franked distributions. With holdings like Westpac Banking Corp (ASX: WBC), Fortescue Ltd (ASX: FMG) and Wesfarmers Ltd (ASX: WES), the Vanguard Australian Shares High Yield ETF gives investors a simple way to boost the cash-generating side of their portfolio heading into the new year.

The post 5 ASX ETFs to buy with $10,000 in December appeared first on The Motley Fool Australia.

More reading

• 5 excellent ASX ETFs to buy in December
• 3 ASX ETFs for smart investors to buy with $2,500
• The best ASX ETFs to buy and hold for 20 years
• How to make $50,000 of passive income a year from ASX shares
• 2 ASX shares to buy and hold for the next decade

Motley Fool contributor James Mickleboro has positions in CSL, Nike, VanEck Morningstar Wide Moat ETF, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, BetaShares Global Cybersecurity ETF, CSL, CrowdStrike, Fortinet, Nike, Walt Disney, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended HDFC Bank and Palo Alto Networks and has recommended the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool Australia has recommended Adobe, BHP Group, CSL, CrowdStrike, Nike, VanEck Morningstar Wide Moat ETF, Vanguard Australian Shares High Yield ETF, Walt Disney, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The All Ordinaries Index (ASX: XAO) has gained 16.96% since its April lows, but this ASX All Ords stock has raced ahead of those gains.

The fast-rising company in question is Peter Warren Automotive Holdings Limited (ASX: PWR).

Shares in the automotive dealership group closed flat on Monday, trading for $1.875 apiece.

Investors who bought the ASX All Ords stock for $1.27 a share at market close on 9 April will be sitting on gains of 47.6% today.

Taking a step back, Peter Warren shares are up 7.76% over 12 months. The stock also trades on a fully franked 3% trailing dividend yield.

Looking ahead, Matthew Nicholas, deputy portfolio manager of 1851 Capital’s emerging companies fund, believes the company is well-placed to outperform in the year ahead (courtesy of The Australian Financial Review).

Here’s why.

ASX All Ords stock in the sweet spot

“Car dealers have been great to invest in over the past 12 months,” Nicholas said.

He pointed to Eagers Automotive Ltd (ASX: APE), whose share price has rocketed 159.66% since this time last year. Eagers Automotive shares also trade on a 2.5% fully franked trailing dividend yield.

But following on that stellar run, Nicholas expressed concerns over Eagers’ elevated price-to-earnings (P/E) ratio, unlike ASX All Ords stock Peter Warren.

According to Nicholas:

AP Eagers has been the poster child, with the stock more than doubling yet is now trading on a lofty 25 times PE and confirming its status as the most expensive car dealer in the globe. On the flipside, Peter Warren Auto has been somewhat stranded and trades at 13 times.

Commenting on why he’s bullish on Peter Warren Auto, he noted:

Since listing in 2021, Peter Warren has faced a series of headwinds as the economy slowed as the central bank hiked interest rates. With a customer base firmly entrenched in the “mortgage belt”, those headwinds are now tailwinds which is why the company is a later-cycle beneficiary than the rest of the listed dealers.

Then there’s the rapid growth of Chinese EVs.

“Furthermore, it’s beefing up its presence in the Chinese electronic vehicle brands, which will continue to take market share,” Nicholas concluded.

What’s ahead for Peter Warren shares?

When the ASX All Ords stock released its FY 2025 results on 21 August, management noted, “Our business foundations include $229 million in owned property, low net debt of $46.7 million and a great team of professionals with deep automotive experience.”

Looking to the year ahead, management said:

In FY26 we will execute our strategy, focusing on innovation as a key enabler of our long-term competitiveness, living our customer-centric culture, driving best in class operational performance, while continuing to pursue opportunistic acquisitions.

The new car market is expected to remain highly competitive with new brands competing for market share. However, we expect to grow higher margin service lines in parts, service, finance, insurance and aftermarket. As we continue to manage our costs and inventory, we expect to grow our earnings in FY26.

The post Up 48% since April, why this rebounding ASX All Ords stock could keep racing higher in 2026 appeared first on The Motley Fool Australia.

More reading

• 5 ASX ETFs to buy with $10,000 in December
• 5 things to watch on the ASX 200 on Tuesday
• These 2 ASX 300 shares are bargain buys
• An ASX dividend stalwart every Australian should consider buying
• Forget term deposits! I’d buy these two ASX 200 shares instead

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Monday, the S&P/ASX 200 Index (ASX: XJO) roared back to life and recorded a strong gain. The benchmark index rose 1.3% to 8,525.1 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set to rise on Tuesday following a strong start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 27 points or 0.3% higher. In late trade in the United States, the Dow Jones is up 0.5%, the S&P 500 is 1.5% higher, and the Nasdaq has jumped 2.6%.

Web Travel half year results

Web Travel Group Ltd (ASX: WEB) shares will be on watch today when the travel technology company releases its half year results. The WebBeds owner is guiding to first half bookings of 5.07 million, total transaction value (TTV) of $3.17 billion, and a TTV margin of 6.2% to 6.4%. Management has also previously revealed that it is targeting record EBITDA for the full year.

Oil prices rise

It could be a good session for ASX 200 energy shares including Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 1.4% to US$58.87 a barrel and the Brent crude oil price is up 1.3% to US$63.39 a barrel. Rate cut optimism appears to have given prices a boost.

Hold Lovisa shares

Lovisa Holdings Ltd (ASX: LOV) shares are a fairly valued according to analysts at Bell Potter. This morning, the broker retained its hold rating on the fashion jewellery retailer’s shares with a reduced price target of $33.50. It said: “Along with our earnings revisions, we reduce our target P/E multiple to ~32x (prev. 38x) on FY27e to reflect the de-rating in LOV/broader peer group and our relative expectations for growth within our coverage. We highly rate LOV’s strong gross margin outlook, long term store opportunity upside, further prospects arising from changes in the competitive dynamics in US/UK/South Africa, together with strong execution and leadership.”

Gold price climbs

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a strong session on Tuesday after the gold price pushed higher overnight. According to CNBC, the gold futures price is up 0.9% to US$4,115.6 an ounce. Traders were buying gold after the US dollar weakened on increased Fed rate cut bets.

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

More reading

• Here are the top 10 ASX 200 shares today
• Leading brokers name 3 ASX shares to buy today
• 2 great ASX 200 blue-chip shares I’d buy right now
• What’s driving a 9% divergence in ASX 200 consumer staples vs. discretionary shares?
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has positions in Lovisa and Web Travel Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 300 Index (ASX: XKO) shares that have been sold off could be turnaround opportunities due to the low expectations placed on them at the current valuation.

Some names in the retail sector have experienced significant declines recently, as trading updates were not as good as expected.

There’s no guarantee that disappointment in the latest update will mean a positive surprise in the next one. However, on a three- or five-year view, I think there are some names capable of recovering substantially from their current position, such as the following two.

Accent Group Ltd (ASX: AX1)

Accent owns several retail brands, including The Athlete’s Foot, Nude Lucy, Stylerunner and Platypus. It also sells various global shoe brands, including Vans, Ugg, Skechers and Hoka. The business has also started opening Sports Direct stores in Australia.

The trading update for FY26 did not impress the market. While total group-owned sales were up 3.7%, like-for-like sales were down 0.4% and the gross profit margin for FY26 year to date was down 160 basis points (1.60%) compared to the prior year. Operating profit (EBIT) is expected to be in the range of $85 million to $95 million for FY26.

The ASX 300 share has a number of initiatives to deliver growth, including opening 50 Sports Direct stores over the next six years, rolling out dozens of stores for the other brands (including Stylerunner and the highly profitable Nude Lucy), buying back The Athlete’s Foot stores from franchisees and growing new distributed brands.

According to the forecast from UBS, the Accent share price is valued at under 11x FY27’s estimated earnings after falling close to 30% in a month.

The weaker performance is disappointing, but I believe it can bounce back from this level and potentially surprise investors.

Adairs Ltd (ASX: ADH)

Adairs is a furniture and homewares business which sells items through three different brands – Adairs, Mocka and Focus on Furniture.

The Adairs share price has fallen by more than 30% since 19 September 2025, making it appear to be a better value proposition if there’s a recovery in the medium term. I believe that’s possible following the rate cuts by the RBA and the end of high inflation.

The ASX 300 stock’s update was also not exciting – it downgraded its sales expectations to a range of $319.5 million to $331.5 million, down from the previous range of $324.5 million to $336.5 million. The gross profit margin guidance was narrowed to between 59% to 59.5%.

I’m hopeful of a recovery in consumer spending overall, but Adairs is working on plans to improve, which could be more impactful.  

It wants to reduce Adairs’ inventory and cut the item count by 10%, maximise key sales periods, enhance the Linen Lover membership value, launch new store formats and upgrade its technology.

The ASX 300 share wants Focus on Furniture to be Australia’s favourite furniture retailer by improving product quality and stock availability, expanding the choice of fabrics and colours, be faster to market with on-trend furniture, it’s offering customers flexible payment options, it’ll open dozens of more stores and accelerate store upgrades.

Finally, with the Mocka business, it wants to build brand awareness, expand the range and open a physical store trial in Australia.

According to the forecast from UBS, Adairs is trading at 8x FY27’s estimated earnings.

The post These 2 ASX 300 shares are bargain buys appeared first on The Motley Fool Australia.

More reading

• Why Accent Group, EOS, Mayne Pharma, and Pilbara Minerals shares are falling today
• What’s Morgans’ view on Accent Group shares after Friday’s sell off?
• What’s driving a 9% divergence in ASX 200 consumer staples vs. discretionary shares?
• Why Accent, DroneShield, Lovisa, and Pilbara Minerals shares are sinking today
• Why is this ASX 300 stock crashing 18% today?

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

The ASX dividend stalwart Wesfarmers Ltd (ASX: WES) should be one of the top contenders for most passive income investors.

There are three key factors I look for in dividend-paying businesses – a strong dividend yield, a rising dividend payout, and growing earnings.

Wesfarmers is the parent company of a number of businesses, including Officeworks, Kmart, Bunnings, chemicals, energy and fertiliser (WesCEF), industrial and safety, and more.

The company has been a steady presence on the ASX for many years, giving shareholders stability. Let’s run through the three elements of the ASX dividend stalwart’s appeal.

Dividend yield

For investors seeking a good level of dividend income in year one, I think Wesfarmers ticks the box.  

The business is predicted to pay an annual dividend per share of $2.17 in FY26, according to the forecast on CMC Markets. At the time of writing, this translates into a grossed-up dividend yield of 3.9%, including franking credits.

That’s certainly not the biggest payout around, but there’s more to consider about an ASX dividend share than just its dividend yield. For example, can its payouts match/exceed inflation, and can it grow profit to justify a higher Wesfarmers share price?

Rising payout from the ASX dividend stalwart

Wesfarmers has a track record of growing its payout most years, which is pleasing for investors wanting a portion of the profits each year.

On its website, the company states its goal for rising payouts:

With a focus on generating strong cash flows and maintaining balance sheet strength, the group aims to deliver satisfactory returns to shareholders through improving returns on invested capital.

As well as share price appreciation, Wesfarmers seeks to grow dividends over time commensurate with performance in earnings and cash flow. Dependent upon circumstances, capital management decisions may also be taken from time to time where this activity is in shareholders’ interests.

In FY25, the company decided to hike its annual dividend per share by 4% to $2.06. According to projections on CMC Markets, it’s predicted to grow its payout by 5% in FY26 and then by another 10.5% in FY27 to $2.40 per share.

Growing earnings

Wesfarmers is not a high-flying tech stock, but the last six years have shown how Kmart and Bunnings are leaders in Australia, helping grow Wesfarmers’ bottom line. Both businesses have impressed me with their ability to grow market share with their good value products, earning high returns on capital (ROC) for shareholders, and continuing to find new sources of growth.

For example, Bunnings has sought to expand in areas such as pet care and auto care. Kmart has looked to sell its Anko products in overseas markets, such as North America and the Philippines.

I like how the company has the ability to look to new sectors to grow its earnings, such as healthcare and lithium mining. Healthcare is such a large industry, and Wesfarmers can use its scale to succeed in this sector, growing in various areas of that industry (such as pharmacies or digital healthcare).

By FY27, the ASX dividend stalwart is predicted to deliver earnings per share (EPS) of $2.73. That means, at the time of writing, it’s trading at under 30x FY27’s forecast profit.

The post An ASX dividend stalwart every Australian should consider buying appeared first on The Motley Fool Australia.

More reading

• Here’s the dividend yield on Wesfarmers shares right now
• Age Pension worries? 7 income stocks to consider for retirement
• Top Australian stocks to buy right now with $5,000
• I’d buy this ASX dividend stock in any market
• 1 magnificent ASX dividend stock down 15% to buy and hold for decades

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 Wesfarmers. 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.

S&P/ASX 200 Index (ASX: XJO) shares can be more attractive for passive income than a term deposit for a few different reasons.

Stocks can provide a larger dividend yield, payout growth, and hopefully capital growth. Term deposits are limited to the guaranteed income they provide – there’s capital protection but no further potential returns.

Some businesses can deliver stable (and growing) earnings, which provides the tailwind for both dividend and share price growth. The two ASX 200 shares below are appealing options.

Telstra Group Ltd (ASX: TLS)

Telstra is Australia’s leading telecommunications business, with significant advantages over competitors. It has the widest network coverage, the best spectrum assets, the most subscribers, and more.

The company has defensive earnings, in my opinion, due to the fact that many households, businesses, and other organisations seem to place a high importance on having an internet connection.

Telstra has a significant market share of both NBN and mobile connections, giving the business pleasing operating leverage. The more subscribers it has, the more its costs can be spread across those users, enabling a strong profit margin.

The regular growth of subscribers and average revenue per user (ARPU) is helping the company’s bottom line. Further digitalisation of the Australian economy could lead to further improvements in these metrics.

The Telstra mobile division delivered income growth of 3% to $11 billion and operating profit (EBITDA) growth of 5% to $5.3 billion in FY25, helping Telstra’s earnings per share (EPS) climb 3.2% to 19.1 cents and fund a 5.6% rise in the dividend per share to 19 cents.

I think there’s a good chance the ASX 200 share will hike its annual dividend per share again to approximately 20 cents in FY26. At the time of writing, this would be a forward grossed-up dividend yield of 5.9%, including franking credits.

Scentre Group (ASX: SCG)

This ASX 200 share is the owner of the Westfield shopping centres around Australia and New Zealand.

While retail isn’t one of the most resilient areas of the economy, I think rental income is defensive and predictable. Many of the retailers that lease one of the shops need to have a physical space to sell their items; otherwise, they wouldn’t have much of a business.

There isn’t any empty real estate to build another large shopping centre near existing Scentre locations in the city, so the Westfield locations don’t have much competition to worry about. Online shopping is a headwind, but click and collect sales still require the physical store, and Scentre can lease excess space for other activities beyond retail (such as food, entertainment, education, and so on) in the long term.

In its November update, it said that customer visitation for the 45 weeks to 9 November 2025 was 453 million, up 3.1% year over year. Total annual business partner sales across its portfolio to 30 September 2025 were $29.5 billion, up $760 million. Total business partner sales growth was 3.7%, with specialty sales up 4.4%.

Those are promising sales, which suggest the ASX 200 shares’ rental income can continue to grow, with a reported average specialty rent escalation of 4.4% in the nine months to 30 September 2025. Its portfolio occupancy is very high at 99.8%, up 40 basis points (0.4%) on the same period in 2024.

It expects to grow its 2025 distribution by 3% to 17.72 cents per security, translating into a distribution yield of 4.4%, at the time of writing.

The post Forget term deposits! I’d buy these two ASX 200 shares instead appeared first on The Motley Fool Australia.

More reading

• Age Pension worries? 7 income stocks to consider for retirement
• How to make $50,000 of passive income a year from ASX shares
• Forget CBA shares! Buy these ASX dividend shares instead for passive income
• ASX sell-off accelerates: Is it time to sell shares?
• 3 strong ASX 200 shares to buy for a retirement portfolio

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.

If you’ve been watching the ASX lately, you will know it has been a bruising few months. Fears of an overheating AI boom, shifting interest rate expectations, and slowing consumer demand have sparked a sharp market pullback, the kind that makes even experienced investors a little uneasy.

But it is important to remember that every major selloff in Australian market history has eventually turned into an opportunity.

The GFC, the COVID crash, the late-90s wobble, all of them looked terrifying in the moment, yet long-term investors who stepped in during the panic ended up miles ahead.

And right now, several of Australia’s highest-quality ASX shares have fallen so far from their highs that they are starting to look like potential generational buying opportunities.

Three of them that stand out are named below.

CSL Ltd (ASX: CSL)

Few companies on the ASX have delivered long-term performance like CSL, but 2025 has been a rough year. The biotech leader is trading around 38% below its 52-week high, weighed down by regulatory uncertainty, slower-than-expected margin recovery at its Behring division, and noise around the planned separation of its Seqirus vaccines arm.

Yet none of these issues change CSL’s core strength. It remains one of the world’s most important plasma-based therapy companies, serving a global patient base and backed by decades of scientific expertise. Demand for immunoglobulins and specialty therapies continues to grow, and the company is investing heavily in US plasma collection to boost long-term supply.

CSL has built a reputation on delivering earnings growth through thick and thin. A discount of this size doesn’t come around often, and for patient investors, it could prove to be a rare opportunity.

TechnologyOne Ltd (ASX: TNE)

Despite delivering resilient recurring revenue growth in FY 2025 and expanding its software-as-a-service customer base, the company’s share price is now 31% below its 52-week peak.

TechnologyOne is one of the most dependable tech businesses in the country. Its software is deeply embedded in universities, councils and government departments, and its transition to a pure SaaS model has driven years of earnings upgrades, stronger margins, and recurring revenue. It has also increased its dividend every year for more than a decade, a rarity for a tech company.

And with management believing that it can double in size every five years, this could present one of the most attractive entry points in years.

Xero Ltd (ASX: XRO)

The market’s renewed nerves around global tech have hit Xero hard, sending the cloud accounting star around 40% below its 52-week high. But while its share price has been volatile, the business itself continues to fire.

Xero now serves 4.59 million subscribers and generates NZ$2.7 billion in annualised monthly recurring revenue.

Its focus on improving margins and lifting operating leverage has strengthened its financial position, while new products and deeper platform integration continue to boost customer lifetime value.

And with an estimated total addressable market (TAM) of 100 million businesses, its future looks very bright. This could make now an opportune time to pick up shares for the long term.

The post Is the 2025 ASX share selloff your chance to buy generational bargains? appeared first on The Motley Fool Australia.

More reading

• Should you buy Mesoblast, Paladin Energy, and Xero shares?
• Buy, hold, sell: James Hardie, Reece, and TechnologyOne shares
• 2 great ASX 200 blue-chip shares I’d buy right now
• Top brokers name 3 ASX shares to buy next week
• How to make $50,000 of passive income a year from ASX shares

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