Tag: Stock pick

Retiring with a $1 million share portfolio might sound ambitious, but from the perspective of a 40-year-old, it is far more achievable than many people realise.

The key ingredients are time, consistency, and a willingness to let compounding work its magic.

Let’s assume you are 40 today, have $10,000 ready to invest, and are prepared to think long term.

Starting with $10,000 at age 40

At 40, your biggest advantage is time. With 25 to 30 years until a typical retirement age, even modest, disciplined investing can snowball into something substantial.

If that initial $10,000 is invested into a diversified ASX share portfolio and earns a long-term average return of 10% per annum, it would grow to around $110,000 after 25 years, even if you never added another dollar. That alone won’t get you to $1 million, but it shows how powerful time can be.

The real magic happens when you combine that growth with regular contributions.

Consistent investing

To turn a $10,000 starting balance into a $1 million ASX share portfolio, ongoing investing in ASX shares is essential. This doesn’t require huge sacrifices, just consistency.

For example, starting with $10,000 and then investing $750 per month would grow into approximately $1 million over 25 years with a 10% average total annual return.

I believe this demonstrates that time in the market is more important than by trying to pick the perfect stock.

But which ASX shares should you buy? Let’s dig deeper into that.

What to invest in

From a 40-year-old’s perspective, the focus should be on growth rather than income. Dividends are a bonus, but the priority is owning high-quality ASX shares and/or exchange traded funds (ETFs) that can compound earnings for decades.

A sensible approach is to build a diversified portfolio that includes leading Australian shares, broad-market ETFs, and some global exposure. This reduces reliance on any single business or sector and helps smooth returns over time.

This might mean quality ASX shares like Macquarie Group Ltd (ASX: MQG) or ResMed Inc. (ASX: RMD), or ETFs such as the Betashares Nasdaq 100 ETF (ASX: NDQ) and the Vanguard Msci Index International Shares ETF (ASX: VGS).

Reinvesting dividends rather than spending them is also crucial in the accumulation phase. It may feel boring, but it significantly accelerates compounding.

Staying the course

One of the biggest risks to not reaching a $1 million portfolio is not market crashes, but investor behaviour. Over a 20 to 25-year period, there will be recessions, bear markets, and periods where investing feels uncomfortable.

From the perspective of a long-term investor, these moments are not threats but opportunities. Continuing to invest during downturns often leads to better outcomes, as new money is deployed when valuations are lower.

Overall, patience and discipline matter far more than timing the market perfectly.

Foolish takeaway

From age 40, retiring with a $1 million ASX share portfolio is not about luck. It is about starting early enough, investing consistently, and giving compounding the time it needs to work.

The post How to retire with a $1 million ASX share portfolio appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares to buy for passive income in 2026
• Happy New Year: Here are two ASX stocks to watch going into 2026
• 10 excellent ASX ETFs to buy in 2026
• These were the best-performing ASX 200 shares in December
• The top ASX growth stocks that could rebound in 2026 after a brutal year

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF, Macquarie Group, and ResMed. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF, Macquarie Group, and ResMed. 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 Judo Capital Holdings Ltd (ASX: JDO) share price is in focus today after the bank reported its gross loans and advances hit approximately $13.4 billion as of 31 December 2025, showing continued growth during the first half of FY26.

What did Judo Capital report?

• Gross loans and advances (GLAs) reached ~$13.4 billion as at 31 December 2025
• Growth consistent with management’s expectations and guidance
• On track for FY26 GLA guidance of $14.2–$14.7 billion
• Profit before tax guidance for FY26 maintained at $180–$190 million (FY25: $125.6 million)
• Full half-year results (1H26) due 17 February 2026

What else do investors need to know?

Judo continues to focus its growth on relationship-based lending to small and medium-sized enterprises (SMEs), which has helped the bank maintain good business momentum and customer engagement. Management noted that monthly loan growth can vary, but the overall pace remains disciplined as Judo targets sustainable economic outcomes.

The update highlights Judo’s confidence in delivering significant operating leverage over the coming year. With the 1H26 results announcement set for mid-February, investors will be keen to see how growth and profitability targets are progressing, especially considering uncertain economic conditions.

What did Judo Capital Holdings management say?

Judo Capital CEO Chris Bayliss said:

We are pleased to have delivered strong loan growth in the first half of FY26, in line with our expectations. Our relationship-led value proposition continues to resonate with SME customers, and we are seeing good momentum across our business.

While our monthly growth can vary, we continue to manage our overall pace of lending growth while also achieving sustainable economics. We remain on track to achieve our existing FY26 GLA guidance of $14.2b to $14.7b.

Judo will demonstrate significant operating leverage in FY26, and we remain on track to achieve our existing guidance for Profit Before Tax of between $180m to $190m, up from $125.6m in FY25.

What’s next for Judo Capital?

Judo is aiming to achieve total loans and advances of $14.2–$14.7 billion in FY26 while also boosting profit before tax to up to $190 million. The bank says it is demonstrating operating leverage, suggesting improved efficiency as the business grows in size.

Investors can look forward to more detail when Judo releases its 1H26 results on 17 February 2026. The company’s progress on these milestones—and how it navigates the SME lending environment—will be key areas to watch in the coming months.

Judo Capital share price snapshot

Over the past 12 months, Judo Capital shares have declined 7%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Judo Capital’s loan book tops $13.4bn in FY26 update appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Real estate and property ownership is synonymous with Australian values, both investing and in life. 

However, the harsh reality is that owning real estate still comes with significant barriers for many Aussies. 

First and foremost, the traditional 20% deposit for a home in Australia means you need a seriously full savings account. 

Data shows the median house price in Australia sits at roughly $980,343, according to Cotality data.

That means to comfortably buy the average house, you need almost $200,000 in savings. 

Luckily, investing in the stock market comes with a much lower barrier to entry. 

So for Aussies looking for exposure to the real estate market without the lofty price tag, one option to consider is real estate shares. 

Rather than a physical house or apartment, you can invest in companies that typically own or manage income-producing properties such as shopping centres, offices, industrial warehouses, or residential developments. 

These are called REITs. 

How did real estate stocks perform last year?

ASX real estate stocks performed modestly in 2025. 

The S&P/ASX 200 Real Estate Index (ASX: XRE) rose about 5% last year. 

This was slightly below the ASX 200 benchmark index which rose roughly 6.3%. 

Like any sector, there were individual ASX real estate stocks that rose, while others lost significant ground. 

There are a couple that had down years that may have now fallen into the value range. 

Two in particular that could be worth monitoring in 2026 are DigiCo Infrastructure REIT (ASX: DGT) and Lendlease Group (ASX: LLC). 

Is there value for these real estate stocks?

DigiCo Infrastructure REIT (ASX: DGT) is one of the ASX real estate stocks that fell the furthest in the sector last year. 

The company is a diversified owner, operator and developer of data centres, with a global portfolio. 

Its stock price fell more than 37% last year. 

However, from December 18 it recovered almost 18% following its AGM.

I think this real estate stock could be set to benefit from future AI tailwinds. 

Artificial intelligence – especially large-scale generative models and cloud-based AI services – requires massive amounts of compute power, storage, connectivity, and cooling infrastructure to run efficiently. This infrastructure is largely housed in data centres, which is the main focus of DigiCo. 

Macquarie seems to agree there is upside, with the broker tipping more than 50% upside from last year’s closing price. 

The broker has a $4.16 a share 12-month price target. 

A second real estate stock that could be trading below fair value is Lendlease Group (ASX: LLC). 

Its share price fell more than 16% last year. 

However it ended the year with positive momentum on the back of a major contract win.

Furthermore, it seems poised for future growth with fundamentals turning a corner in FY25. 

TradingView has a 12-month price target of approximately $6.45, which is roughly 24% higher than current levels.

The post Two ASX real estate stocks to watch in 2026 appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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• 5 magnificent ASX stocks that can make you richer in 2026
• Lendlease unveils $400m TRX sale and FY26 capital recycling update

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.

If starting an investing journey in 2026 was your new year’s resolution, welcome to The Motley Fool! 

Understandably, there can be plenty of information when it comes to investing in shares. 

But to simplify things, one strategy is to buy ASX ETFs. 

Why invest in an ASX ETF?

There are thousands of companies available to investors on the ASX. 

You can invest in these companies by purchasing shares. 

The goal is for the value of these shares to rise over time, as the company grows, generates more profit etc. 

However it can be difficult to decide which company to invest in.

But with an ASX ETF, you can gain exposure to a basket of shares with just one trade. 

So rather than picking and choosing individual stocks, an ASX ETF combines multiple – sometimes hundred of companies into one basket. 

So if you want to buy shares in 100 companies, you can actually do this at once, rather than 100 individual trades. 

The value of diversification

Diversifying your portfolio simply means not putting all your eggs in one basket. 

Here in Australia, the 200 largest companies are called the S&P/ASX 200 Index (ASX: XJO). 

Tracking this index gives us an idea of how the Australian stock market is performing relative to years past, and other countries. 

For example, in 2025, this index increased by 6.26%. 

So if someone had $1,000 invested in an ASX ETF that moves in line with the ASX 200, it would have risen by roughly $1,062.60. 

So approximately a $62 profit. 

Historically, this return in 2025 was slightly below the average performance of the ASX 200 which has returned roughly 9-10%. 

An ASX ETF that has exposure to all top 200 companies is an example of diversification because it gives exposure to more than just one company. 

If one company performs poorly, losses can be offset by others that perform well. 

This theory can be taken even further. 

For example, there are years the ASX 200 performs poorly, like in 2022, the ASX 200 lost more than 5%. 

The benefit of diversification is that while the Australian market may decline, companies elsewhere can gain value over the same period. 

Starting a portfolio with 2 ASX ETFs

So taking into consideration these fundamental principles, there is a strong portfolio new investors can access with just two trades. 

The first ASX ETF a new investor might consider is iShares Core S&P/ASX 200 ETF (ASX: IOZ). 

The fund aims to provide investors with the performance of the S&P/ASX 200. 

As discussed earlier, this index is the 200 largest companies in Australia by market capitalisation. 

A great compliment to this fund is the iShares MSCI World ex Australia Quality ETF (ASX:IQLT). 

It is made up of almost 300 companies outside of Australia. 

These are large and mid-cap developed markets companies outside Australia, chosen because of higher profitability, lower leverage, consistent earnings growth. 

It includes some of the largest companies in the world like Meta Platforms (NASDAQ: META) and Apple (NASDAQ: AAPL). 

These two funds can be a great starting point for a new investor, to gain access to historically well-performing companies both here in Australia and abroad. 

The post How to build a beginner portfolio in 2026 with just two ASX ETFs appeared first on The Motley Fool Australia.

More reading

• Did the ASX 200, NASDAQ 100, or S&P 500 perform better this year?
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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.

Soaring commodity prices made ASX 200 materials shares the best performers of the 11 market sectors in 2025.

Scores of ASX 200 mining shares benefited from rip-roaring metals and minerals prices, particularly gold, silver, copper, and lithium.

Strong central bank buying, falling interest rates, and less trust in the US dollar is supporting record gold and silver prices today.

Meanwhile, the green energy transition is showing up in raised demand for copper, lithium, and silver, which is used in solar panels.

Let’s take a look at the best performing metals and minerals of 2025, and some of the ASX mining shares that ripped as a result.

12 best performing commodities of 2025

Here are the 12 strongest commodities for price growth based on Trading Economics data.

Rank	Metal or mineral	Commodity price rise in 2025
1	Silver	147%
2	Platinum	125%
3	Cobalt	120%
4	Sulfur	116%
5	Rhodium	101%
6	Palladium	83%
7	Gold	65%
8	Lithium	58%
9	Neodymium	51%
10	Tin	44%
11	Copper	42%
12	Aluminium	17%

ASX mining shares riding the commodities wave

ASX gold shares ripped in 2025, with Pantoro Gold Ltd (ASX: PNR) the best performer of the ASX 200, up 220%.

Resolute Mining Ltd (ASX: RSG) shares soared 206% and Regis Resources Ltd (ASX: RRL) stock leapt 196%.

Among the gold large-caps, Northern Star Resources Ltd (ASX: NST) shares rocketed 73%, Evolution Mining Ltd (ASX: EVN) jumped 164%, and Newmont Corporation CDI (ASX: NEM) increased 152%.

ASX silver shares also shot the lights out, with Andean Silver (ASX: ASL) lifting 200% and Silver Mines Ltd (ASX: SVL) leaping 182%.

The Sun Silver Ltd (ASX: SS1) share price rose 213% while Unico Silver Ltd (ASX: USL) shares jumped 346%.

ASX lithium shares soared in 2H CY25 after lithium prices began a long-awaited recovering in July after three years of weakness.

The PLS Group Ltd (ASX: PLS) share price rose 93% while lithium and nickel producer IGO Ltd (ASX: IGO) lifted 72%.

Core Lithium Ltd (ASX: CXO) shares leapt 206%.

ASX copper shares also bounced, with the market’s largest pure-play copper miner, Sandfire Resources Ltd (ASX: SFR), soaring 93%.

Capstone Copper Corp CDI (ASX: CSC) shares lifted 55%.

The iron ore price finished the year at US$107.13 per tonne, up 6.48%.

All three of the major iron ore producers rose over the year.

The BHP Group Ltd (ASX: BHP) share price increased 15% while Fortescue Ltd (ASX: FMG) shares lifted 21%.

The Rio Tinto Ltd (ASX: RIO) share price increased 25%.

The post 12 best performing commodities of 2025 appeared first on The Motley Fool Australia.

More reading

• Here’s what I think investors in Northern Star shares can look forward to in 2026
• Is it too late to buy these two highflying ASX gold stocks?
• 5 things to watch on the ASX 200 on Friday
• Gold stars: 5 best ASX 200 gold shares of 2025
• Best and worst performing ASX 200 sectors of 2025

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

The Northern Star Resources Ltd (ASX: NST) share price has delivered a standout year for investors in 2025. The gold miner’s shares are up around 73% over the year, comfortably outperforming the broader S&P/ASX 200 Index (ASX: XJO).

After such a strong run, attention is now turning to what comes next for Northern Star shares in 2026.

Let’s take a closer look.

A strong finish to 2025

Several factors helped drive Northern Star’s share price higher over the past year.

The biggest tailwind has been the gold price rally, with gold climbing to around US$4,500 per ounce and hitting record highs during 2025. That strength flowed directly through to earnings and cash flow across the business.

Operationally, the company continued to deliver solid production across its portfolio, while keeping a close eye on costs. This helped support margins despite inflation pushing costs higher across the sector.

Importantly for income investors, Northern Star also increased its returns to shareholders. For FY25, the company declared a total dividend of 55 cents per share, made up of a 25-cent interim dividend and a 30-cent final dividend.

That marked the company’s largest dividend payout to date and highlighted the strength of its balance sheet.

What brokers are saying about Northern Star

Broker sentiment toward Northern Star remains positive heading into 2026, despite expectations cooling after the strong share price rally.

Several major brokers lifted their price targets during the second half of the year. Citi raised its target price by 17% to $28.10, while UBS cut its target by 2.1% to $27.60. Ord Minnett is slightly more conservative, with its target sitting around $27.00.

With Northern Star shares last trading at $26.73, brokers see some modest upside remaining.

Key things to watch in 2026

There are a few important themes investors should keep an eye on this year.

Gold prices

Gold remains the single biggest driver of Northern Star’s performance. If prices stay elevated, earnings and dividends should remain well supported.

Growth projects

The company continues to advance several major assets, including the Kalgoorlie Super Pit and longer-term growth options. Any positive updates on production growth or mine life extensions could support investor sentiment.

Dividend sustainability

After paying 55 cents per share in FY25, investors will watch closely whether Northern Star can maintain or grow dividends.

Foolish takeaway

Northern Star’s 2025 performance will be hard to repeat, but the company enters 2026 from a position of strength.

With solid assets, a strong balance sheet and reliable dividends, Northern Star shares remain well placed for long-term gold investors.

The post Here’s what I think investors in Northern Star shares can look forward to in 2026 appeared first on The Motley Fool Australia.

More reading

• 12 best performing commodities of 2025
• 5 things to watch on the ASX 200 on Friday
• Gold stars: 5 best ASX 200 gold shares of 2025
• These were the worst performing ASX 200 shares in 2025
• These were the best performing ASX 200 shares in 2025

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.

There are plenty of ASX dividend shares out there for passive income investors to choose from.

To narrow things down, let’s look at three excellent options that brokers rate as buys. They are as follows:

Cedar Woods Properties Limited (ASX: CWP)

Bell Potter thinks that Cedar Woods could be an ASX dividend share to buy.

It is one of Australia’s leading property developers with a portfolio that is diversified by geography, price point, and product type.

The broker is positive on Cedar Woods due to it being well-positioned to benefit from Australia’s chronic housing shortage.

It is expecting this to underpin dividends per share of 35 cents in FY 2026 and then 39 cents in FY 2027. Based on its current share price of $8.56, this equates to 4.1% and 4.6% dividend yields, respectively.

Bell Potter has a buy rating and $10.00 price target on its shares.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that gets the thumbs up from analysts is Rural Funds.

It is a property company that owns agricultural assets such as cattle properties, vineyards, and cropping land. These properties are typically leased to high-quality tenants on long agreements with built-in rental increases.

This provides Rural Funds with great visibility on its future earnings and has supported solid earnings and dividend growth over the past decade.

Bell Potter is positive on the company’s outlook. It expects Rural Funds to pay dividends of 11.7 cents per share in both FY 2026 and FY 2027. Based on its current share price of $1.97, this would mean dividend yields of 5.9% for both years.

The broker currently has a buy rating and $2.45 price target on its shares.

Telstra Group Ltd (ASX: TLS)

Telstra could be an ASX dividend share to buy according to analysts. It is of course Australia’s telecoms leader.

It could be an attractive option due to its defensive cash flows, which are generated by its mobile, broadband, and network services. These are the kinds of essential services that Australians rely on every day for connectivity.

In addition, the company recently announced its Connected Future 30 plan, which aims to deliver strong and sustainable long-term earnings.

Macquarie is positive on the company and has an outperform rating and $5.04 price target on its shares.

As for income, the broker is forecasting fully franked dividends of 20 cents per share in FY 2026 and then 21 cents per share in FY 2027. Based on its current share price of $4.87, this would mean dividend yields of 4.1% and 4.3%, respectively.

The post 3 ASX dividend shares to buy for passive income in 2026 appeared first on The Motley Fool Australia.

More reading

• The pros and cons of buying Telstra shares in 2026
• Happy New Year: Here are two ASX stocks to watch going into 2026
• These were the best-performing ASX 200 shares in December
• The top ASX growth stocks that could rebound in 2026 after a brutal year
• Where to invest $10,000 into ASX 200 shares in January 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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group, Rural Funds 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.

ASX 200 financial shares performed well despite a heavy second-half fall for sector leader Commonwealth Bank of Australia (ASX: CBA).

The S&P/ASX 200 Financials Index lifted 7.97% in 2025, with total returns (including dividends) of 12.05%.

By comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) lifted 6.8% and provided total returns of 10.32%.

This made financials the third best performer among the 11 market sectors last year.

Commonwealth Bank of Australia (ASX: CBA), the largest company on the ASX, reached its peak in late June at $192 per share.

After a long run, which began in November 2023 and delivered about 85% capital growth for CBA investors, a correction was inevitable.

CBA shares fell 16% from their high point during the second half of the year to finish at $160.57 apiece on 31 December.

Overall, CBA shares managed a 12-month gain of just under 5%.

This pales in comparison to the capital gains of the financial sector’s top performers.

Let’s take a look at those stocks.

Which ASX 200 financial shares delivered the best capital growth?

1. Generation Development Group Ltd (ASX: GDG)

The Generation Development Group share price rose 66% to finish the year at $5.89 per share.

Generation Development Group is a market leader in retirement and investment solutions, including bonds.

For FY25, the company reported a 191% year-over-year lift in revenue to $141.3 million.

The underlying net profit after tax (NPAT) was $30.2 million, up 170% on FY24.

Macquarie has an outperform rating on this ASX 200 financial share for the new year.

The broker gives Generation Development shares a 12-month price target of $6.70.

2. Challenger Ltd (ASX: CGF)

The Challenger share price lifted 57% to finish the year at $9.41 per share.

Challenger’s CEO, Nick Hamilton, says the company built on its strong FY25 performance with a solid first quarter of FY26.

Hamilton said there was “continued momentum in annuity sales” and progress with several strategic initiatives to support future growth.

In 1Q FY26, total life sales totalled $2.5 billion, up 4%.

Fixed term annuity sales rose 29% to $1.1 billion, while lifetime annuity sales lifted 16% to $320 million.

Citi has a buy rating on this ASX 200 financial share with a price target of $10.25.

3. Hub24 Ltd (ASX: HUB)

The Hub24 share price rose by 38% to finish the year at $96.25 per share.

HUB24 operates an investment and superannuation platform.

After the company’s Investor Day in December, Bell Potter retained its buy rating with a slightly lowered target of $125.

The broker noted upside risk to the company’s funds under administration (FUA) guidance as it continues to expand its offering.

However, management also warned of higher expenses with cost growth guidance revised to 18% to 20%.

4. Insignia Financial Ltd (ASX: IFL) 

The Insignia share price ascended 28% to close at $4.56 per share on 31 December.

Insignia is a financial services company.

Last year, two takeover suitors pursued Insignia — Bain Capital Private Equity and CC Capital Partners.

In July, Insignia announced it had entered into a Scheme Implementation Deed with CC Capital for $4.80 per share.

The company is yet to schedule a shareholders’ vote, saying regulatory processes are still underway.

Morgan Stanley has a hold rating on this ASX 200 financial share with a price target of $5.

5. ANZ Group Holdings Ltd (ASX: ANZ)

The ANZ share price rose 27% to close at $36.34 on 31 December.

The ASX 200 bank share reached a new record of $38.93 per share in November.

Morgans has a sell rating on ANZ shares with a price target of $32.57.

The post Top 5 ASX 200 financial shares of 2025 appeared first on The Motley Fool Australia.

More reading

• 2 stocks to help turn $100,000 into $1 million
• Buying ASX shares? Why, and how, you should prepare for higher interest rates in 2026
• My top 5 ASX 200 shares I would buy with $10,000
• Leading brokers name 3 ASX shares to buy today
• Can ANZ shares go any higher after a 28% sizzle in 2025?

Citigroup is an advertising partner of Motley Fool Money. 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 positions in and has recommended Hub24 and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Challenger, Generation Development Group, and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Australian supermarket landscape is dominated by two names – Coles and Woolworths. Not only this, but Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) shares also dominate the consumer staples sector in terms of market share. 

In fact, data from the ACCC shows these two companies combine for 67% of supermarket grocery sales nationally. 

These supermarket giants also make up important parts of many investors’ portfolios. 

But which presents more upside this year? 

Let’s compare the two. 

2025 performance 

Coles and Woolworths shares brought very different returns for investors last year. 

Coles shares rose by approximately 13.5% in 2025. 

Meanwhile, Woolworths shares fell by 3.6%. 

For comparison, the S&P/ASX 200 Index (ASX: XJO) rose 6.26%. 

The S&P/ASX 200 Consumer Staples Index (^AXSJ) fell just over 1%. 

This strong performance from Coles was driven by solid supermarket sales growth and earnings in FY25.

In its full year results presentation, the company said Group EBITDA and EBIT from continuing operations (excluding significant items) increased by 11.0% and 7.5% respectively (normalised) underpinned by strong growth in Supermarkets earnings.

Meanwhile, Woolworths shares slumped on weaker sales results as earnings missed analysts expectations. 

In August, Woolworths shares dropped 12% in a single day following earnings results. 

In August, the company announced: 

• EBIT (FY2025) declined 12.6% to $2.75 billion. 
• Net profit after tax (NPAT) fell 17.1% to $1.39 billion compared with FY2024.
• Final dividend declared at 45 cents per share, fully franked, down 21.1% from the previous year’s final payout.

What are experts tipping for 2026 for Coles and Woolworths shares?

Both of these stocks may appeal to investors looking for defensive options.

Defensive shares can help protect your portfolio during periods of heightened market volatility and economic downturns.

Coles and Woolworths shares fall into this category because demand for their products (essential groceries) remains high even during an economic downturn when consumers reduce their overall spending.

On New Years Eve, The Motley Fool’s Samantha Menzies outlined the case for Woolworths shares now presenting value for investors after a weak 2025. 

Meanwhile, Macquarie is still bullish on further share price increases from Coles. 

The broker has an outperform rating and $26.10 price target on its shares. 

This indicates a further upside of more than 21% from today’s opening share price of $21.44. 

Elsewhere, TradingView has a 12 month price target of $23.83, which indicates an upside of approximately 11%. 

The post Are Coles or Woolworths shares a better buy in 2026? appeared first on The Motley Fool Australia.

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

These two ASX dividend shares have a lot in common — and none of it is flashy.

Sonic Healthcare Ltd (ASX: SHL) and Metcash Ltd (ASX: MTS) both offer an attractive dividend yield, trade at prices that still leave room for upside, and operate in businesses that rarely excite the market.

It’s the kind of boring reliability that income investors tend to love.

Here’s why.

Sonic Healthcare Ltd (ASX: SHL)

If you want to kick off 2026 without breaking a sweat, Sonic Healthcare might be the quiet achiever you’re looking for. No hype, no heroics, just a dependable healthcare heavyweight getting back into shape.

Sonic does the dull-but-deadly stuff: pathology and diagnostic imaging. Blood tests, scans and biopsies aren’t glamorous, but essential. And essential businesses tend to keep the lights on regardless of what markets are doing.

After a pandemic-fuelled sugar rush, Sonic’s share price came back to earth as COVID testing revenue faded and costs crept up. Investors lost interest. That’s exactly why this ASX dividend stock is worth another look. Expectations are now realistic, maybe even a little too low.

The long-term tailwinds haven’t gone anywhere. Ageing populations, rising chronic disease and more preventative testing all mean one thing: more samples through Sonic’s labs. You don’t postpone medical tests when times get tough.

Sure, risks remain. Government funding pressure and wage inflation won’t disappear overnight.

According to Bell Potter, the ASX dividend share is a good choice for passive income. The broker forecasts dividends of $1.09 per share in FY 2026 and $1.11 in FY 2027. With Sonic shares currently at $22.61, this would result in a dividend yield of 4.8% and 4.9%.

The broker has assigned a buy rating and a $33.30 price target to the ASX dividend share. Based on the share price at the time of writing, this implies a potential upside of 32% for investors over the next 12 months.

Bell Potter is on the bullish side, as the average 12-month target price is $26.73. However, that still points to 18% upside, and could bring the total gain in 2026 to well over 20%.

Metcash Ltd (ASX: MTS)

Metcash won’t light up your group chat either. No, it’s just a solid business quietly getting on with it.

Metcash is the engine room behind IGA supermarkets, Mitre 10, Home Timber & Hardware and a swathe of independent liquor and foodservice retailers.

The big attraction? The dividend. Metcash has built a reputation as a dependable payer, and with the share price sitting at relatively modest levels, the yield of 5.3% looks especially tempting.

Operationally, the ASX dividend share does defensive well. Groceries, hardware and booze don’t go out of fashion, even when households tighten their belts. Long-standing relationships with independent retailers create sticky revenue, while diversification across business segments helps smooth out bumps.

The catch? Don’t expect fireworks. Growth is steady rather than spectacular, competition is fierce and margins are always under pressure.

UBS projects the ASX dividend share to increase its payout every year between FY25 to FY29. That could be great news for investors focused on passive income.

Early December, the company highlighted that its latest dividend will be worth 8.5 cents per share. It will come fully franked, as the payouts from Metcash tend to do.

Most analysts also predict moderate to strong upside. The average 12-months price target has been set at $3.93, which suggests a share price gain of 19%. That could lift total Metcash earnings, including dividends, close to the 25% mark.  

The post Snap up these reliable ASX dividend shares for income and upside appeared first on The Motley Fool Australia.

More reading

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• Analysts say these 3 Australian shares are buys
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• Buy, hold, sell: Develop Global, Metcash, and Treasury Wine shares
• Time to buy this ASX dividend share now it’s down 14%

Motley Fool contributor Marc Van Dinther 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 Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.