Tag: Stock pick

Two ASX industrials stocks that have had a strong 12 months are SKS Technologies Group Ltd (ASX: SKS) and Tasmea Ltd (ASX: TEA). 

These ASX industrials companies rose by 2.45% and 9.6% yesterday respectively following half-year results.

Here’s what both companies reported. 

SKS Technologies Group Ltd (ASX: SKS) 

The company develops and distributes technology products. It provides audiovisual products & solutions and electrical and communications cabling for commercial, retail, health, defence and education markets.

For the half year to 31 December 2025, it reported: 

• A 52.5% increase on pcp in net profit after tax (NPAT) to $8.81 million
• EBITDA of $14.02 million, up 42.9% on pcp
• An earnings per share increase of 49.6%
• A 3.5 cents per share fully franked interim dividend.

Investors reacted positively to this result, with the share price climbing 2.45%. 

It is now up 16.6% year to date and 120% over the last 12 months. 

Tasmea Ltd (ASX: TEA)

Tasmea is a skilled services company. 

It provides essential maintenance, engineering, and specialised project services and solutions across the following four service streams to the mining and resources; oil and gas; waste and water; power and renewable energy; and defence and infrastructure industries.

Yesterday, it reported its H1 FY26 Results.

This included: 

• Revenue A$400.5m, increase of 62.4% on A$246.7m in H1 FY25
• Underlying EBIT A$44.3m, increase of 35.8% on A$32.6m in H1 FY25
• Underlying NPAT A$26.5m, increase of 31.8% on A$20.1m in H1 FY25
• Interim fully franked dividend of 6.0 cents per share, up 20% on 5.0 cents in H1 FY25.

Investors gobbled up shares in this ASX industrials stock following this announcement. 

Its share price is now up 31.5% over the last year. 

What did Morgans have to say about these ASX Industrials stocks?

Following these results, Morgans provided updated guidance. 

For SKS Technologies, the broker said NPAT and PBT margins, net cash generation, and the interim dividend all beat expectations. 

We upgrade our FY26-28F EPS forecasts by +19%/+15%/+14% based on SKS’ recent FY26 revenue & improved margin guidance. Our blended DCF/P/E-based price target lifts to $5.10/sh (from $4.25). This sees SKS now trading with a TSR of ~15%, we therefore move to an ACCUMULATE rating.

From yesterday’s closing price of $4.60, this revised price target indicates a further upside of 10.87%. 

Meanwhile, for ASX industrials stock Tasmea, the team at Morgans said 1H26 was modestly below its expectations. 

Strong performances in Civil (EBIT +92% YoY) and Electrical (+29% YoY) were encouraging, though these gains were more than offset by softer earnings in the seemingly lumpy Mechanical segment (-24% YoY).

The broker lowered its price target to $5.25 (previously $5.40). 

From yesterday’s closing price, that indicates an upside of approximately 35%. 

The post How does Morgans view these soaring ASX industrials stocks following earnings results appeared first on The Motley Fool Australia.

More reading

• Why Amcor, Lovisa, Regal Partners, and SKS shares are pushing higher today
• This ASX 300 stock is jumping 13% on earnings guidance upgrade

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

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was on form and stormed higher. The benchmark index rose 1.15% to 9,128.3 points.

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

ASX 200 set to rise again

The Australian share market looks set for a good session on Thursday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 60 points or 0.65% higher this morning. In late trade in the United States, the Dow Jones is up 0.65%, the S&P 500 is up 0.85% and the Nasdaq is up 1.3%.

NextDC results

Nextdc Ltd (ASX: NXT) shares will be on watch today after the data centre operator released its half-year results. The company reported a 13% increase in net revenue to $189.2 million and a 9% rise in underlying EBITDA to $115.3 million. Looking ahead, management has reaffirmed its FY 2026 guidance for revenue of $390 million to $400 million and underlying EBITDA of $230 million to $240 million. NextDC’s CEO, Craig Scroggie, said: “NEXTDC remains on track to deliver another record financial performance in FY26 on the back of exceptional sales and strong financial performance in 1H26. With total liquidity of A$4.2 billion, record forward order book and record sales pipeline, the Company remains in an outstanding position to take advantage of further customer growth opportunities.”

Oil prices mixed

ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch on Thursday after oil prices traded mixed overnight. According to Bloomberg, the WTI crude oil price is down 0.2% to US$65.52 a barrel and the Brent crude oil price is up 0.25% to US$70.94 a barrel. This mixed performance was driven by news of a large US inventory build, which was offset by concerns over supply.

Buy WiseTech shares

WiseTech Global Ltd (ASX: WTC) shares are good value according to analysts at Bell Potter. This morning, the broker has retained its buy rating on the logistics software company’s shares with a trimmed price target of $83.75 (from $87.50). It said: “The key potential catalyst is the release of the FY26 result in August where, firstly, we expect the guidance to be met and, secondly, expect FY27 guidance to be provided. The latter has the potential to positively surprise given it will provide some visibility around the expected cost savings from the headcount reduction and likely show the company is well on track to return to an EBITDA margin of 50% or more in the next two to three years.”

Gold price rises again

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session on Thursday after the gold price stormed higher again overnight. According to CNBC, the gold futures price is up 1% to US$5,226.4 an ounce. This was driven by increased safe haven demand due to tariff and geopolitical risks.

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

More reading

• Are Tabcorp shares a buy after soaring 24% following its half-year result?
• Are WiseTech shares a buy, hold or sell after announcing 2,000 job cuts?
• Are Domino’s shares a buy, sell or hold after its half-year result?
• NEXTDC reports 1H26 earnings and upbeat outlook
• Here are the top 10 ASX 200 shares today

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

ASX All Ords gold stock Aurum Resources Ltd (ASX: AUE) has smashed the returns delivered by the All Ordinaries Index (ASX: XAO) over the past year.

Aurum shares closed up 2.1% on Wednesday, trading for 74 cents apiece.

That puts the Aurum Resources share price up a jaw dropping 172% since this time last year, racing ahead of the 10% 12-month returns posted by the benchmark index.

As you’d expect, the ASX All Ords gold stock has enjoyed strong tailwinds from the surging gold price. On Wednesday, the yellow metal was trading for US$5,189 per ounce. That sees the gold price up more than 78% in a year.

But Aurum has hardly been sitting idle, achieving a series of regulatory and exploratory successes Aurum at its flagship Boundiali Gold Project, located in Cote d’Ivoire. The project consists of seven neighbouring exploration tenements extending across some 75 kilometres.

Why the ASX All Ords gold stock could keep charging higher

If you think you’ve missed the boat on this one, the analysts at Canaccord Genuity would disagree, with the broker expecting the Aurum share price could more than double again from current levels.

In a research report released in 16 February, Canaccord advised investors to tune into any upcoming potential news flow from the ASX All Ords gold stock.

Canaccord noted:

With ~$40m cash at 31 December 2025, AUE is fully funded for an aggressive 130,000m drilling program across Boundiali and Napie project in 2026, in our view.

Potential catalysts this quarter include updated resources for both projects and completion of the Boundiali open-pit PFS, positioning the company for a potential DFS transition later in 2026 while continuing regional exploration and discovery drilling.

What’s happening with Aurum’s Boundiali Gold Project?

Just one week later, on Monday 23 February, the ASX All Ords gold stock reported a 49% increase (more than 450,000 ounces) in Indicated Resources at Boundiali to 1.37 million ounces of gold. This saw the total Boundiali Mineral Resource Estimate (MRE) increase to 3.03 million ounces of gold.

Aurum Resources said the upgrade provides “a robust foundation for Boundiali’s upcoming PFS”. The gold miner noted that on a consolidated basis, its Group Resource now stands at 3.90 million ounces of gold. That includes the 870,000 ounces from the Napie Gold Project. The MRE update for Napie was said to be on track for delivery this quarter.

“This MRE update represents a significant milestone at our Boundiali Gold Project,” Aurum managing director Caigen Wang said.

Wang noted:

This follows an aggressive infill drilling campaign that successfully converted a large portion of our inventory into this higher confidence category, providing the robust foundation required for our upcoming economic studies.

Canaccord has a speculative buy rating on the ASX All Ords gold stock with a price target of $1.50 per share. That’s more than 100% above Wednesday’s closing price.

The post Up 172% in a year, why this surging ASX All Ords gold stock is forecast to more than double investors’ money again appeared first on The Motley Fool Australia.

More reading

• 3 unmissable Aussie stocks to buy before they pop
• Are Tabcorp shares a buy after soaring 24% following its half-year result?
• 3 ASX dividend shares I would buy with $3,000
• How to invest like Warren Buffett using ASX ETFs
• How high could Woolworths shares rise in 2026?

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

WiseTech Global Ltd (ASX: WTC) shares have been hotly covered this year. The shipping and logistics management software company has seen its share price fall significantly amidst the heavy tech sell-off. 

Its share price fell 37% to start 2026. 

Technology shares have been caught up in heavy scrutiny as investors have exited the sector due to AI fears.

However on Wednesday, WiseTech shares roared back to life with an 11% gain on the back of earnings results. 

So is this the start of a rebound or a false alarm?

Let’s unpack the results. 

Accelerated AI transformation 

For 1H26, the company reported total revenue growth in 1H26 of 76% to $672.0 million (1H25: $381.0 million). This was driven by the acquisition of e2open and continued growth in CargoWise. 

CargoWise revenue grew 12% on 1H25 to $372.4 million, including $6.6 million from FY25 M&A and a $3.7 million FX tailwind.

Organically, CargoWise revenue grew by 9% on 1H25 or $30.4 million.

It seems that WiseTech management were well-aware of investor fears coming into 2026. This was addressed in the company’s 1H26 report. 

The company said WiseTech is undergoing a deep AI transformation, as AI continues to be embedded across its software for customers and internal operations. 

2,000 WiseTech jobs to be cut

According to the release, this will accelerate productivity, automation and decision-making across the industry’s complex, regulated workflows.

WiseTech announced the next phase of their efficiency program, starting in the second half of FY26 and continuing into FY27, expecting to reduce teams – initially product & development and customer service across the company, including e2open, by up to 50% in terms of headcount. 

As part of WiseTech’s long-term strategic focus on higher-margin recurring revenue, and WiseTech’s commitment to building a higher-performance culture, this program will likely result in a reduction of approximately 2,000 roles in FY26 and into FY27.

What does this mean?

Essentially, AI disruption will potentially lead to 2,000 jobs being cut in the company. This equates to almost 30% of WiseTech staff losing their jobs. 

Speaking on the cuts, WiseTech Chief Executive Officer Zubin Appoo said: 

Software development has experienced its most significant shift in decades. I am prepared to say this clearly: the era of manually writing code as the core act of engineering is over. 

AI amplifies the productivity of our expertise in logistics and trade, the rich datasets that WiseTech holds, and the network advantage that we have built over 30 years. And it allows us to move faster from ideas to real customer value through the efficiencies it brings in software development and product creation.

What is Bell Potter’s view?

Following the release, the team at Bell Potter issued updated guidance on WiseTech shares. 

The broker downgraded its price target on WiseTech shares, but maintains a buy recommendation on valuation grounds. 

The broker now has a 12 month price target of $83.75 (previously $87.50). 

From it’s current share price, this indicates an upside of roughly 75%. 

Foolish takeaway

Heavy job cuts can often set off alarm bells for investors.

However in this case, it seems to be the latest example of the global shift towards AI automation.

After heavy sell-offs in the tech sector, this seems to be WiseTech’s move to address these concerns.

It isn’t the first company to do so.

Last month, Amazon cut 16,000 jobs in a similar move to streamline operations.

In regards to valuations moving forward, it seems Bell Potter is more focussed on the current share price opportunity more than management decisions, as the broker sees WiseTech shares as a value play.

The post Are WiseTech shares a buy, hold or sell after announcing 2,000 job cuts? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 3 beaten-down ASX 200 stocks tipped to rocket over 100% higher 
• Why Accent, DroneShield, WiseTech Global, and Woolworths shares are racing higher
• WiseTech shares jump 7% on its half-year results
• WiseTech Global FY26 earnings: Robust revenue growth, AI strategy in focus

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

Most investors spend a lot of time looking for the next big winner. They scan headlines, chase upgrades, and wait for breakouts.

But one simple habit has quietly built far more wealth for long-term ASX investors than stock picking ever has. It is consistency.

The power of steady investing

Imagine investing $1,000 every month into high-quality ASX shares and earning an average 10% annual return over time. That is not guaranteed, but it is broadly in line with long-term share market returns.

After 10 years, you would have invested $120,000. At a 10% annual return, the portfolio could be worth around $200,000.

After 20 years, total contributions of $240,000 could grow to roughly $725,000. Then after 30 years, $360,000 invested over time could become more than $2 million.

The biggest driver in that equation is not timing. It is time.

What does consistency look like?

Consistency does not mean buying random ASX shares each month. It means steadily allocating capital to businesses with strong long-term growth potential.

That could include shares such as ResMed Inc. (ASX: RMD), which benefits from long-term healthcare demand, or REA Group Ltd (ASX: REA), which has entrenched dominance in online property listings, or Macquarie Group Ltd (ASX: MQG), which has built a global infrastructure and asset management platform.

For investors who prefer broader exposure, exchange traded funds (ETFs) like the iShares S&P 500 ETF (ASX: IVV) or the VanEck Morningstar Wide Moat ETF (ASX: MOAT) can provide diversified access to high-quality global businesses.

The key is not which specific name you choose. It is sticking with the habit.

Why most investors struggle

In many respects, the challenge is emotional. When markets fall, investing feels uncomfortable. When markets rise sharply, it feels tempting to wait for a pullback.

But long-term wealth is often built by investing through both.

Markets will have corrections. Growth stocks will sell off. Headlines will look scary from time to time. Yet over decades, quality ASX shares tend to expand earnings and reward patient shareholders.

Foolish takeaway

There is nothing exciting about investing the same amount every month.

But by removing emotion, ignoring noise, and committing to a steady plan, investors give compounding the time it needs to do its job. Over years and decades, those small, repeated decisions can snowball into life-changing sums with ASX shares.

The post How to build serious wealth with ASX shares appeared first on The Motley Fool Australia.

More reading

• The easiest way to get rich and retire a millionaire with ASX shares
• Why I would buy ResMed and these quality blue chips now
• 3 ASX ETFs for beginner investors to buy in March
• The sleep easy ETF portfolio to survive market crashes
• Where to invest $10,000 in ASX 200 shares in March

Motley Fool contributor James Mickleboro has positions in REA Group, ResMed, and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, ResMed, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Macquarie Group and ResMed. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Commonwealth Bank of Australia (ASX: CBA) share price closed just 0.1% higher on Wednesday afternoon, at $178.68 a piece. The banking giant’s shares have enjoyed an incredible rally over the past five weeks.

After dropping to a low of $147.22 on the 21st of January, the CBA share price has surged 21.36%. 

The shares are now 10.9% higher for the year-to-date and 15.82% higher over the year.

What pushed the CBA share price higher in 2026?

CBA posted its half-year results in mid-January. The bank revealed a 6% increase in cash net profit to $5,445 million. It also lifted its interim dividend by 4% to $2.35 per share. 

At the time, CBA’s CEO, Matt Comyn said that economic growth strengthened during the half, “driven by increases in consumer demand and rising investment in AI and energy infrastructure”.

Investors were thrilled with the results, and the share price rallied over 12% within 48 hours. 

The uplift has been great news for the banking major, which suffered overall weakness late last year (along with the majority of the banking sector) with share price declines across the board. 

Somber sentiment meant many investors weren’t expecting any type of recovery this year. In fact, many expected a significant share price crash.

But the thing is, since rocketing after its results, the CBA share price has remained relatively flat. Over the past two weeks the shares have fallen 0.03%. 

Which begs the question, is the party finally over for the CBA share price?

According to the experts, the answer is….yes. 

It looks like the only way for the CBA share price to move from here is downwards.

TradingView data shows that 14 out of 16 analysts have a sell or strong sell rating on CBA shares. Another two have a hold rating.

The average target price is $131.20 which implies a 26.57% downside at the close of the ASX on Wednesday. Although some think the shares could sink 12.92% and others think they could crash a far more significant 49.63% over the same period.

The post Is the party over for the CBA share price? appeared first on The Motley Fool Australia.

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

Domino’s Pizza Enterprises Ltd (ASX: DMP) shares crashed on Wednesday. At the close of the ASX, the fast-food pizza chain’s shares had fallen 11.08% to $19.27 a piece. 

It was the worst-performing S&P/ASX 200 Index (ASX: XJO) stock for the day.

The decline comes off the back of the company’s FY26 half-year result, which it posted ahead of the market open on Wednesday morning.

The drop means the shares are now down 11.68% for the year-to-date and 33.3% lower over the past 12 months.

What spooked investors?

The fast food operator posted a 1.6% decline in network sales for the six months to the 31st of December 2025. 

But the good news is that the business swung back to profit and delivered modest growth in underlying earnings. This signals that Domino’s turnaround strategy is gaining traction. 

Domino’s underlying earnings before interest and tax (EBIT) reached $101.5 million, up 1.0% on the prior corresponding period (pcp).

The company said it took deliberate steps to improve its franchise partner profitability during the six-month period. It did this by reducing heavy discounting and resetting store pricing. This impacted short-term volumes but will help strengthen operational foundations. 

The company’s new leadership team, including the announced appointment of a new group CEO, is now focused on disciplined execution and supporting franchise partners through cost-saving and simplification initiatives.

But the reset-style results didn’t sit well with the market. Investors were spooked and it saw many offload their stock. Which in turn, sent the share price crashing.

Is this a buying opportunity for Domino’s shares, or time to sell up?

Some brokers have recently pulled or adjusted their position on the stock. But that now the results have been published, we could see some brokers confirm or adjust their outlook on Domino’s shares in coming days.

At the time of writing, after the ASX close on Wednesday, analysts are still on the fence about the outlook for Domino’s shares this year.

TradingView data shows that out of 14 analysts, five have a buy or strong buy rating, four have a hold rating, and five have a sell or strong sell rating.

Just a week ago there were 17 analyst ratings, and six of them were a hold.

The latest data shows that the average target price is now a little higher at $21.46. This implies 11.38% potential upside at the time of writing.

But some analysts think the shares could rise 55.68% to $30 a piece. Meanwhile, others think they should sink another 32.54% to $13.00.

The post Are Domino’s shares a buy, sell or hold after its half-year result? appeared first on The Motley Fool Australia.

More reading

• NEXTDC reports 1H26 earnings and upbeat outlook
• Here are the top 10 ASX 200 shares today
• Domino’s Pizza shares tumble 16% after reset-style results
• Why Domino’s, Flight Centre, Mader, and Paragon Care shares are falling today
• Huge news: ASX 200 hits new record high

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

Last night after market, NextDC Ltd (ASX: NXT) posted a its 1H26 earnings result, with net revenue up 13% to $189.2 million and underlying EBITDA rising 9% to $115.3 million.

What did NEXTDC report?

• Net revenue rose 13% year-over year to $189.2 million.
• Total revenue climbed 13% to $231.8 million.
• Underlying EBITDA lifted 9% to $115.3 million.
• Net loss after tax narrowed by 8% to $39.4 million.
• Contracted utilisation surged 137% to 416.6MW, with a forward order book of 296.8MW.
• Capital expenditure reached $1,285 million, up from $1,003 million in the prior period.
• Liquidity stood at $4.2 billion at 31 December 2025.

What else do investors need to know?

NEXTDC is preparing to launch a subordinated notes offering to fund its growing contracted capacity pipeline and optimise its long-term capital structure, subject to market conditions. The company is also exploring a joint venture company (JVCo) structure for future projects, enabling additional capital recycling capacity while retaining operational control.

During the half, NEXTDC secured development approval for S4 Sydney and M4 Melbourne, and increased planned capacity at major sites including M3 Melbourne and S4 Sydney. International expansion continues, with KL1 Kuala Lumpur due to open in 2H26 and work starting on a Tokyo data centre.

What did NEXTDC management say?

Chief Executive Officer and Managing Director Craig Scroggie said:

The step change in the scale of the Company’s activities over the past six months represents the culmination of many years of work to position NEXTDC to capture the unprecedented demand and reflects our reputation for delivering on time and at scale. Our record forward order book is expected to drive a material uplift in revenues and earnings as we deliver this capacity across the period to FY29.

What’s next for NEXTDC?

NEXTDC has lifted its capital expenditure guidance for FY26, now expecting to spend $2.4 billion to $2.7 billion as project timelines accelerate. Revenue and EBITDA guidance remain unchanged at $390–$400 million and $230–$240 million respectively.

Management sees strong demand supporting growth, with a record sales pipeline, ample liquidity, and the forward order book underpinning confidence in delivering another standout year in FY26.

NEXTDC share price snapshot

Over the past 12 months, NEXTDC shares have risen 2%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post NEXTDC reports 1H26 earnings and upbeat outlook appeared first on The Motley Fool Australia.

More reading

• Are Domino’s shares a buy, sell or hold after its half-year result?
• Here are the top 10 ASX 200 shares today
• 3 exciting ASX growth shares to buy now
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• Huge news: ASX 200 hits new record high

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.

Getting rich is an ambition many Australians share. In reality, for most people, it doesn’t come from a lucky trade, a crypto windfall, or picking the next tiny mining explorer. It usually comes from something far less exciting.

Time. Consistency. And ownership of quality assets.

If I had to describe the easiest way to retire a millionaire using ASX shares, it would look something like this.

Step 1: Own productive businesses, not speculation

When you buy ASX shares, you’re buying a slice of a real business.

Companies like Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), BHP Group Ltd (ASX: BHP), or global-facing growth names such as Xero Ltd (ASX: XRO) or ResMed Inc. (ASX: RMD) generate profits, reinvest capital, and pay dividends. Over time, those profits tend to grow.

Their share prices may bounce around daily, but their underlying value is driven by earnings.

I think that’s the mindset shift that matters. You’re not trading a ticker. You’re owning part of an income-producing asset.

Over decades, productive businesses have historically delivered average returns in the high single digits. Let’s assume 9% per year as a long-term average. Some years will be negative. Some will be far higher. But that’s a reasonable planning assumption.

Step 2: Invest every month, no matter what the headlines say

The easiest path is not timing the market. It’s ignoring it.

If you invest a fixed amount every month into quality ASX shares or diversified exchange-traded funds (ETFs), you automatically buy more when prices fall and less when prices rise. That removes emotion from the process.

Let’s say you invest $1,000 per month and achieve a 9% average annual return.

After 25 years, you’d have roughly $1 million. Even investing $500 per month at 9% for 30 years gets you to around $850,000.

There’s no magic. Just maths and discipline.

Most of the heavy lifting comes in the final decade. That’s compounding at work. Early on, growth feels slow. Later, it accelerates in a way that surprises most people.

Step 3: Reinvest dividends and stay patient

One of the advantages of investing in ASX shares is the dividend culture.

Many Australian companies pay reliable, often fully franked dividends. If you reinvest those dividends instead of spending them, your portfolio grows faster.

Dividends buy more shares. More shares generate more dividends. That feedback loop becomes powerful over time.

It can be tempting to sell when markets fall or to chase the latest hot sector. But the easiest way to become wealthy is usually the boring way.

Buy quality. Hold through volatility. Add regularly.

Step 4: Avoid the big mistakes

Building wealth isn’t just about what you do. It’s about what you avoid.

Avoid panic selling in downturns, avoid concentrating your entire portfolio in one speculative idea, and avoid stopping contributions because the market feels expensive.

Markets will crash at some point. Unfortunately, that’s guaranteed. What’s also historically true is that they recover.

If you’re investing for 20, 30, or 40 years, short-term volatility becomes background noise.

Foolish takeaway

The easiest way to get rich and retire a millionaire with ASX shares isn’t glamorous.

It’s investing consistently in quality businesses or diversified ETFs, reinvesting dividends, and letting compounding work for decades.

There’s no shortcut. But there is a simple path. And for investors willing to stay the course, that simple path can be incredibly powerful.

The post The easiest way to get rich and retire a millionaire with ASX shares appeared first on The Motley Fool Australia.

More reading

• How to build serious wealth with ASX shares
• Is the party over for the CBA share price?
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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed, Wesfarmers, and Xero. The Motley Fool Australia has positions in and has recommended ResMed and Xero. The Motley Fool Australia has recommended BHP Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Receiving passive income in the form of dividends is one of the best and most tangible ways ASX shares put money back into our pockets. The ASX is full of dividend stocks that will perform this service for investors.

However, not all ASX dividend stocks are equal. The vast majority only pay two dividends per year. Some pay out every quarter, but there are only a handful that will dole out a dividend every single month. The BetaShares S&P Australian Shares High Yield ETF (ASX: HYLD) is one of those.

This income-focused exchange-traded fund (ETF) is a relatively new passive income stock on the ASX. It functions in a manner consistent with most ASX ETFs, holding a portfolio of underlying shares that are managed on behalf of its investors. This portfolio, in HYLD’s case, consists of about 50 ASX dividend stocks. On the most recent data, these included BHP Group Ltd (ASX: BHP), National Australia Bank Ltd (ASX: NAB), Wesfarmers Ltd (ASX: WES), and Telstra Group Ltd (ASX: TLS).

These 50 stocks are selected following ASX-wide screens. These include volatility, a stock’s dividend history, and the stock’s perceived ability to maintain or increase dividends going forward. The fund goes out of its way to avoid dreaded ‘dividend traps’. In this way, this ASX dividend stock aims to deliver higher passive dividend income than the broader market.

The BetaShares S&P Australian Shares High Yield ETF was only listed in August of last year. Even so, HYLD has notched up some pretty impressive achievements since then.

A good ASX start for this passive income ETF

As of 30 January 2026, this ETF has returned a total of 9.43% to investors. That’s well above the 4.02% that the broader S&P/ASX 200 Index (ASX: XJO) has delivered.

HYLD units have also paid out six dividend distributions, each worth 11.92 cents per unit. If this ASX dividend stock continues to pay the same monthly dividend, its shares would have a dividend yield of 4.24% at current pricing.

Now, we can never be certain that any ASX dividend stock will maintain its past dividends into the future. However, given the healthy dividend rises that we have seen this earnings season amongst many of HYLD’s holdings (that includes BHP, Wesfarmers, and Telstra, amongst others), investors arguably have some cause to feel optimistic.

If the HYLD ETF does maintain its monthly dividends going forward, investors can expect to receive approximately $1,700 in passive dividend income annually from a $40,000 investment today. That works out to be roughly $141 every month.

The BetaShares S&P Australian Shares High Yield ETF charges a management fee of 0.25% per annum.

The post Invest $40,000 in this ASX dividend stock for $140 in monthly passive income appeared first on The Motley Fool Australia.

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