Tag: Stock pick

In times of volatility it can be prudent for investors to shift portfolio allocation towards defensive options.

Defensive investing is often ideal during periods of market volatility because it prioritises stability, and risk management over aggressive growth. 

When markets fluctuate sharply due to economic uncertainty, geopolitical events, or shifting interest rates, defensive strategies focus on assets that tend to remain resilient – such as high-quality dividend stocks, essential consumer goods companies, and other sectors with steady demand. 

These investments typically experience smaller price swings and provide more predictable income, helping investors reduce the impact of sudden downturns. 

By emphasising consistency and financial strength, defensive investing allows portfolios to weather turbulent markets while maintaining the flexibility to pursue growth opportunities once conditions stabilise. 

For investors aiming to minimise volatility in their portfolios, here are three ASX ETFs to consider. 

VanEck Ftse Global Infrastructure (Hedged) ETF (ASX: IFRA)

IFRA gives investors exposure to a diversified portfolio of infrastructure securities listed on exchanges in developed markets around the world.

At the time of writing, it includes 134 holdings. 

The fund tracks the FTSE Global Core Infrastructure Index and primarily invests in utilities, energy infrastructure, and transportation assets around the world. 

It is currency-hedged to the Australian dollar and carries a management fee of approximately 0.20%.

It may attract defensive investors because infrastructure companies operate under long-term contracts or regulated revenue frameworks, which can make their income streams more predictable and their cash flows generally more stable than those of typical equities. 

The fund has risen almost 10% this year amidst wider global volatility. 

iShares Edge Msci Australia Minimum Volatility ETF (ASX: MVOL)

This ASX ETF aims to provide investors with the performance of the MSCI Australia IMI Select Minimum Volatility (AUD) Index. 

The index is designed to measure the performance of Australian equities that, in aggregate, have lower volatility characteristics relative to the broader Australian equity market.

According to iShares, minimum volatility strategies aim to lose less than the broad market during downturns. 

It includes exposure to companies providing essential services like Telstra Group Ltd (ASX: TLS) and Transurban Group (ASX: TCL). 

At the time of writing, it includes 105 holdings with its largest sector exposure being to: 

• Financials (30.84%)
• Materials (18.50%)
• Industrials (12.06%)
• Communication (7.22%)
• Consumer Staples (7.21%)

iShares MSCI World ex Australia Minimum Volatility ETF (ASX:WVOL)

As the name suggests, this fund uses the same strategy as the previous fund. However this ASX ETF has a global focus rather than Australia. 

The fund aims to provide investors with the performance of the MSCI World ex Australia Minimum Volatility (AUD) Index, before fees and expenses. 

The index is designed to measure the performance of developed market equities that, in the aggregate, have lower volatility characteristics relative to the broader global developed equity markets.

The post Looking to defend your portfolio from volatility? – 3 great ASX ETFs to consider appeared first on The Motley Fool Australia.

More reading

• 71% chance of RBA hike? These ASX dividend shares still beat rising interest rates
• 3 legendary ASX dividend shares worth a closer look
• 3 ASX dividend shares I’d buy instead of Westpac
• How to assess company debt as a new ASX share investor
• How I’d start building an ASX retirement portfolio today

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

Northern Star Resources Ltd (ASX: NST) shares have endured an awful past week of trading. 

Last Friday, the ASX 200 gold stock fell more than 18%. 

This was followed up by a 5.3% drop on Monday.

Holders of Northern Star shares would be feeling the pinch after such a horror run. 

However, brokers are now adjusting their outlooks and suggesting it could be a buy-low opportunity. 

Why did Northern Star shares crash?

Northern Star Resources is a global-scale Australian gold producer with projects in Australia and North America.

Investors were exiting their positions in the gold producer in the last couple of days after the company released an operational update.

The company’s operational update indicates it may fall short of the lower end of its full-year production guidance, with operational challenges affecting performance so far in FY26.

It has now downgraded gold sales twice in FY26 and the three times since FY25. 

Northern Star reported total gold sales of 220,000 ounces for January and February 2026, while FY26 production is now expected to exceed 1.50 million ounces, lower than previously guided. 

Results were impacted by weaker-than-planned milling performance at KCGM and reduced mining productivity at Jundee. 

At KCGM, open-pit high-grade ore mined averaged 1.6g/t during the first two months of 2026. 

The KCGM mill expansion project remains on track, with commissioning targeted for early FY27.

What are brokers saying?

While it’s been bad news for holders of Northern Resources shares, recent broker notes suggest it could be an attractive entry point for future investors. 

The share price has now crashed 35% since the start of March. 

It closed yesterday at $20.58 per share. 

Bell Potter did note it was very disappointed to see the company downgrade its FY 2026 guidance for a second time last week.

It said the disappointing downgrade is likely to remain as a significant overhang for the stock over the next 12-18 months until the ramp up of the upgraded mill at KCGM commences. We see potential positives from asset rationalisation, given the high capital and operating costs at the likes of Jundee and Thunderbox.

However the broker retained its buy rating and $35.00 price target. 

From yesterday’s closing price, that indicates an upside of approximately 70%. 

Similarly, the team at Morgans released fresh analysis following the recent crash. 

The broker downgraded its forecasts for KCGM (FY26, FY27) and Yandal (FY26 and beyond) until operations demonstrate a period of stability. 

It also downgraded its price target for Northern Star shares to $30.00ps (previously $35.00). 

Our BUY rating is maintained, we note valuation strength is derived from the long-term growth profile rather than near-term earnings.

This updated target from Morgans still indicates a potential upside of 45.77%. 

The post Northern Star Resources shares crash 22% in 2 days – These brokers say buy the dip appeared first on The Motley Fool Australia.

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• Leading brokers name 3 ASX shares to buy today
• What Bell Potter is saying about this fallen ASX 200 gold giant
• Northern Star Resources shares just crashed – time to buy the dip?
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• Why CAR Group, Immutep, Northern Star, and Syrah Resources shares are sinking today

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

The Reserve Bank of Australia (RBA) could soon raise interest rates again as rising oil prices threaten to push inflation higher.

According to The Australian, policymakers are increasingly concerned about the recent spike in global energy prices. Officials fear the move could keep inflation above the central bank’s target for longer.

Here’s what investors need to know.

Oil surge complicates inflation outlook

Oil prices have climbed rapidly in recent weeks amid the escalating war in the Middle East. Disruptions around key shipping routes, particularly the Strait of Hormuz, have raised concerns about global supply.

Energy costs play a major role in inflation. When oil prices rise, transport, manufacturing, and goods prices often follow.

This creates what economists call ‘second round inflation effects’, where higher energy costs spread through the broader economy.

According to comments from Andrew Hauser, inflation risks remain skewed to the upside.

Hauser recently noted that oil trading above US$100 per barrel could present a genuine challenge for policymakers trying to bring inflation back toward the RBA’s target band of 2% to 3%.

Even before the latest energy shock, forecasts suggested inflation could remain above the midpoint of the target range until mid-2028.

Strong economy giving RBA room to move

Another reason the central bank may tighten policy again is the resilience of Australia’s economy.

The unemployment rate remains relatively low at around 4.1%, which suggests the labour market is still tight.

At the same time, surveys show consumer inflation expectations are beginning to rise again.

With the economy still holding up, some economists believe the RBA may feel it has room to lift the cash rate further if inflation pressures continue to build.

Money markets are now pricing in a strong chance of another 25-basis point rate hike.

However, policymakers remain cautious about tightening too aggressively.

RBA governor Michele Bullock has previously warned that the board is mindful of the risks of pushing rates too high and damaging economic growth.

What it could mean for the ASX

Interest rate expectations often have a major influence on share markets.

Higher rates typically weigh on sectors such as property, consumer discretionary companies, and businesses carrying large amounts of debt.

Banks can sometimes benefit from higher interest rates through improved lending margins, although slower economic activity may offset some of those gains.

If the RBA raises rates again today, investors could see increased volatility across the S&P/ASX 200 Index(ASX: XJO).

At the same time, the surge in oil prices may support Australian energy producers if the rally continues.

The post RBA tipped to lift interest rates again as oil surge fuels inflation fears appeared first on The Motley Fool Australia.

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

The Reserve Bank of Australia (RBA) will hand down its latest interest rate decision later today.

According to the latest cash rate futures, the market is currently pricing in a 71% probability that the central bank will lift the cash rate by 25 basis points to 4.1%.

Higher interest rates can make income-focused investments such as term deposits more attractive. However, a number of ASX dividend shares continue to offer dividend yields comfortably above the current cash rate while also providing the potential for capital growth.

Here are three dividend shares that could still be worth considering.

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX dividend share that could be worth a closer look is HomeCo Daily Needs REIT.

This real estate investment trust owns a portfolio of convenience-based retail properties across Australia. These include shopping centres and large-format retail locations anchored by tenants such as supermarkets, liquor stores, and other essential retailers.

Because these types of businesses tend to generate consistent customer traffic regardless of economic conditions, the trust benefits from relatively stable rental income and very high occupancy rates.

Importantly for income investors, HomeCo Daily Needs REIT is known for offering an attractive distribution yield that sits comfortably above current interest rates.

The company is guiding to a dividend of 8.6 cents per share in FY 2026. Based on its current share price of $1.22, this would mean a dividend yield of 7%.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that could be worth considering is Rural Funds Group.

The agricultural real estate investment trust owns a diversified portfolio of farming assets across Australia. These include properties used for almonds, cattle, vineyards, macadamias, and cropping.

Rather than operating the farms directly, the trust leases these assets to agricultural operators under long-term agreements. This provides a stable and predictable rental income stream that supports its distributions to investors.

Agricultural land can also benefit from long-term structural trends such as rising global food demand and limited supply of productive farmland.

Combined with a distribution yield that sits well above the current cash rate, Rural Funds Group could remain an attractive income option.

Rural Funds expects to pay shareholders an 11.7 cents per share dividend in FY 2026. Based on its current share price of $2.10, this equates to a dividend yield of 5.6%.

Transurban Group (ASX: TCL)

A final ASX dividend share that could be worth a look is Transurban Group.

This infrastructure giant owns and operates major toll roads across Australia and North America. These assets play a critical role in major transport networks and typically generate steady traffic volumes over time.

Its portfolio includes CityLink in Melbourne, Cross City Tunnel in Sydney, the Logan Motorway in Brisbane, and 95 Express Lanes in the United States.

One of Transurban’s key advantages is the long-term nature of its toll road concessions. Many of its assets operate under agreements that run for decades, providing strong visibility over future revenue.

Transurban is guiding to a 69 cents per share dividend for FY 2026. Based on its current share price of $14.32, this would mean a dividend yield of 4.8%.

With a yield that sits comfortably above the current cash rate and infrastructure assets that generate reliable cash flows, Transurban could be a compelling option for investors seeking income.

The post 71% chance of RBA hike? These ASX dividend shares still beat rising interest rates appeared first on The Motley Fool Australia.

More reading

• Looking to defend your portfolio from volatility? – 3 great ASX ETFs to consider
• Why this ASX REIT is a retiree’s dream
• How to assess company debt as a new ASX share investor
• How I’d start building an ASX retirement portfolio today
• Growth, value, dividends: 1 ASX stock in each category to buy immediately

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 Transurban Group. The Motley Fool Australia has positions in and has recommended Rural Funds Group and Transurban Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many investors’ portfolios have been on a rollercoaster this month. This volatility has been influenced by the developing conflict in the Middle East. 

A new report from VanEck has shed light on the sectors that may hold up in this current environment. 

Global energy fragility 

According to VanEck, The Middle East crisis has reinforced how fragile global energy security is, particularly given Iran’s role in oil production and the Strait of Hormuz chokepoint. 

As a result, investors are wondering how best to position themselves for the turmoil.

VanEck said we may be moving from a short-lived shock to a conflict that could last months, disrupting crude oil and LNG supply and affecting the energy system’s core infrastructure, transport, production, and refining.

We think gold, defence, commodities and quality are structurally positioned for this environment.

Gold still a safe-haven 

VanEck said gold is supported by central bank accumulation, fiscal deterioration and geopolitical uncertainty.

Since the crisis broke out, gold has risen back above US$5,200/oz on safe-haven demand, and we think it is expected to push further.

According to the report, the structural drivers for gold, central banks accumulating at the fastest pace since Bretton Woods, US fiscal deterioration and the slow unwinding of dollar hegemony were in place before the Middle East conflict. 

The Strait of Hormuz threat, if it materialises, introduces the prospect of an inflationary oil shock on top of an already uncertain rate environment. That combination, geopolitical uncertainty plus inflation risk, is an environment in which gold has historically performed best.

For investors looking to gain exposure to gold shares, options include: 

• Vaneck Gold Bullion ETF (ASX: NUGG)
• VanEck Vectors Gold Miners ETF (ASX: GDX) – gives investors instant access to 92 of the largest and most liquid global gold mining companies.

Defence 

VanEck also noted defence spending was already in a structural upcycle; the conflict has accelerated the long-term repricing of security.

In terms of defence, if investors think long-term yields are near their highs, they could consider layering in duration, at the same time, with short-term rates rising, the yields on floating rate exposures will increase as rates rise. In addition, US Treasuries offer a potential portfolio hedge against risk-off periods and periods of rising rates.

ASX ETFs to consider in this sector include: 

• Vaneck Global Defence Etf (ASX: DFND)
• Betashares Global Defence ETF – Beta Global Defence ETF (ASX: ARMR). 

More information on global defence ETFs can be found here.

Energy and quality 

Furthermore, demand for traditional energy has increased, and investors are once again turning to traditional resources as well as critical minerals for strategic portfolio exposures. 

In terms of quality investing: 

The uncertainty creates volatility and quality companies tend to do relatively well in these environments as investors seek companies with stronger balance sheets and stable earnings.

Real assets also tend to perform relatively well because they provide tangible, consistent cash flows and act as inflation hedges.

For investors seeking energy and quality focussed exposure: 

• VanEck Vectors Msci World Ex Australia Quality ETF (ASX: QUAL)
• VanEck Australian Resources ETF (ASX: MVR)

The post How to position your ASX portfolio in the current environment – Expert appeared first on The Motley Fool Australia.

More reading

• 2 ASX ETFs I’d buy for returns and to sleep well at night
• 3 defensive ASX ETFs to battle through market turmoil
• Where to invest $10,000 into ASX ETFs in March
• Australia’s next great ASX mining boom: Are we already in it?
• If you think global instability will persist, these ASX ETFs might be for you

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.

Investors in their 30s often have one major advantage on their side: time.

With decades before retirement, many investors in this age group can afford to focus on long-term growth opportunities rather than prioritising income today.

This can allow them to invest in sectors and industries that may experience volatility in the short term but have strong long-term potential.

Exchange traded funds (ETFs) can be a simple way to gain exposure to these growth trends while maintaining diversification.

With that in mind, here are three ASX ETFs that could be strong picks for investors in their 30s.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

One ASX ETF that could be worth considering is the BetaShares Asia Technology Tigers ETF.

This fund provides exposure to leading technology companies across Asia, including businesses involved in ecommerce, internet platforms, and digital services.

Its holdings include search giant Baidu (NASDAQ: BIDU), WeChat owner Tencent Holdings (SEHK: 700), and Temu owner PDD Holdings (NASDAQ: PDD).

Many of these companies operate in fast-growing economies with large populations and rapidly expanding digital adoption. As internet usage, online shopping, and digital payments continue to grow across the region, technology platforms could benefit from powerful long-term demand trends.

For investors looking to gain exposure to the growth of Asia’s digital economy, this ETF could be an interesting option.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ASX ETF that could be worth a look is the BetaShares Global Cybersecurity ETF.

Cybersecurity has become a critical industry as businesses, governments, and individuals rely increasingly on digital systems and online services.

As more data is stored online and more infrastructure becomes connected to the internet, protecting networks and information from cyber threats has become essential. This has created strong demand for cybersecurity solutions across the global economy.

By investing in a portfolio of companies that specialise in protecting digital systems and data, this ETF provides investors with easy access to a sector that could experience strong long-term growth.

BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

A final ASX ETF that could be worth considering is the BetaShares Global Robotics and Artificial Intelligence ETF.

This fund focuses on companies involved in robotics, automation, and artificial intelligence such as Nvidia (NASDAQ: NVDA) and ABB Ltd (SWX: ABBN). These technologies are expected to play a major role in shaping the future of industries such as manufacturing, healthcare, logistics, and transportation.

Automation and AI are already being adopted across many sectors to improve efficiency, reduce costs, and unlock new capabilities.

For investors with a long investment horizon, gaining exposure to companies developing these technologies could provide access to one of the most important technological trends of the coming decades.

This fund was recently recommended by analysts at Betashares.

The post 3 ASX ETFs that could be strong picks for investors in their 30s appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Abb, Baidu, BetaShares Global Cybersecurity ETF, Nvidia, and Tencent. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Exchange-traded funds (ETFs) have become one of the simplest and most popular ways to invest in the share market.

It’s clear to see why this is the case. Instead of picking individual shares, investors can buy a single ETF and gain exposure to dozens or even hundreds of businesses at once. 

For investors looking for broad exposure to Australian shares, one of the most favoured options is the Vanguard Australian Shares Index ETF (ASX: VAS).

So if I had $2,000 ready to invest, would I consider putting it into this ETF? Personally, I think it could be a very sensible option.

VAS ETF offers exposure to many of Australia’s biggest shares

One of the biggest advantages of the VAS ETF is diversification.

The ETF tracks the S&P/ASX 300 Index, which means it provides exposure to roughly 300 companies listed on the Australian share market. This includes many of the country’s largest and most established businesses.

Major holdings include companies such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), CSL Ltd (ASX: CSL), and National Australia Bank Ltd (ASX: NAB).

At the same time, the fund also includes smaller companies that many investors might not otherwise own individually. Businesses like TechnologyOne Ltd (ASX: TNE), Lovisa Holdings Ltd (ASX: LOV), and Netwealth Group Ltd (ASX: NWL) are also part of the index.

That mix gives investors exposure to both the stability of large blue chips and the growth potential of smaller companies.

A simple way to back the Australian economy

Another reason I like broad-market ETFs such as the Vanguard Australian Shares Index ETF is that they effectively allow investors to back the long-term growth of the Australian economy.

Over time, companies rise and fall, industries evolve, and new businesses emerge. Because the VAS ETF tracks the index, it naturally adjusts as the market changes. In fact, we are currently in the process of the latest quarterly rebalance.

If one company declines in importance and another grows, the index gradually reflects that shift.

For investors who prefer not to constantly research and select individual ASX shares, this can be an easy way to stay invested in the broader market.

A slightly better entry point after the pullback

Like many parts of the market, the VAS ETF has experienced some volatility recently.

After hitting a record high not long ago, the fund has pulled back roughly 6%.

While that is not a huge decline, it does make the entry point a little more attractive than it was just a few weeks ago.

Long-term investing still matters most

Of course, buying an ETF doesn’t guarantee positive returns in the short term.

The share market will continue to experience periods of volatility, and prices can move both higher and lower in the months ahead.

But historically, long-term investors who remain invested in diversified share portfolios have benefited from the growth of corporate earnings and dividends over time.

The Vanguard Australian Shares Index ETF provides a simple way to capture that long-term trend.

Foolish takeaway

If I had $2,000 to invest and wanted broad exposure to Australian shares, the Vanguard Australian Shares Index ETF could be a very reasonable option.

It provides diversification across hundreds of companies, exposure to both large and smaller businesses, and a simple way to participate in the long-term growth of the Australian share market.

The post Should I invest $2,000 in the VAS ETF? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in CSL, Commonwealth Bank Of Australia, Lovisa, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Lovisa, Netwealth Group, and Technology One. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended BHP Group, CSL, Lovisa, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX dividend shares can play an important role in a long-term portfolio. Companies with strong market positions and steady cash flows are often able to reward shareholders with consistent income year after year.

Three well-known ASX companies that have built reputations for dependable payouts are Telstra Group Ltd (ASX: TLS), Washington H. Soul Pattinson and Company Ltd (ASX: SOL), and Medibank Private Ltd (ASX: MPL).

Here’s why these dividend shares might be worth considering.

Telstra Group

Telstra is Australia’s largest telecommunications provider, with millions of mobile, broadband, and enterprise customers across the country.

The ASX dividend share benefits from its dominant market position and essential infrastructure. The telecommunications giant has been investing heavily in 5G infrastructure and digital services while lifting average revenue per user.

Despite its scale, Telstra operates in a highly competitive industry. Rivals such as Optus and TPG Telecom Ltd (ASX: TPG) can pressure pricing.

The company also faces ongoing capital expenditure requirements to maintain and upgrade its network, which can weigh on free cash flow in certain periods.

Telstra has long been popular with income investors thanks to its regular, fully franked dividends.

In its earnings report last month, Telstra lifted its FY2026 interim dividend by 10.5% to 10.5 cents per share. If the ASX dividend share maintains this pace through the rest of the year, shareholders could be on track for a fourth consecutive annual dividend increase.

Telstra shares remain close to their 52-week high at $5.24 at the time of writing. That means the ASX dividend share offers a solid yield of about 4%.

Washington H. Soul Pattinson

Soul Patts is a diversified investment company with stakes across industries including telecommunications, resources, agriculture, and property.

One of the company’s biggest strengths is diversification, which helps smooth earnings through different market cycles.

Another standout feature is its extraordinary dividend history. Remarkably, the ASX dividend share has paid shareholders a dividend every year since listing in 1903, weathering wars, pandemics, and economic crises.

On top of that, Soul Patts has increased its dividend every year since the late 1990s, giving it one of the longest dividend growth streaks on the ASX.

Soul Patts recently delivered a total dividend of about $1.03 per share for FY2025, representing another year of growth.

The stock typically offers a yield around 3% to 4%, with fully franked payments.

Importantly, management prioritises steadily growing dividends over time. This makes it a favourite among long-term income investors.

Medibank Private

Medibank Private is one of Australia’s largest private health insurers, serving millions of members through its Medibank and AHM brands.

Health insurance is generally considered a defensive industry. Demand for healthcare coverage tends to remain stable regardless of economic conditions, supporting reliable revenue streams.

Medibank’s large customer base and recurring premium income also provide predictable cash flow. That supports consistent shareholder returns.

Rising healthcare costs and claims inflation are always a risk, particularly if premium increases fail to keep pace with rising medical expenses. The health insurance sector is also heavily regulated and government policy changes can influence profitability.

Medibank has become a solid income stock. The ASX dividend share targets a payout ratio of around 75% to 85% of underlying profit, helping maintain relatively generous and sustainable dividends.

Broker UBS is expecting dividend growth from the ASX dividend share over the next few years.

The broker forecasts that the annual dividend per share could be 19 cents in FY26. This translates into a potential grossed-up dividend yield of 4.4%, including franking credit.

The post 3 legendary ASX dividend shares worth a closer look appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 shares with eye-catching dividend yields
• 3 ASX dividend shares I’d buy instead of Westpac
• How I’d start building an ASX retirement portfolio today
• A once-in-a-decade chance to earn a supersized passive income from ASX shares?
• What I’d do as a beginner with $50,000 to invest in ASX shares

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

ASX utilities stock Rivco Australia Ltd (ASX: RIV) is in focus today. The team at Bell Potter have just initiated coverage on it, with a positive outlook. 

Company overview

Rivco Australia is provides investors with exposure to the Australian water market.

As of February 2026, Rivco owns 58.8 gigalitres (GL) of water entitlements. These assets are worth about $1.79 per share before tax (or $1.62 per share after tax). Around 80% of the portfolio value is in high-security water rights, mainly located in the Southern connected Murray–Darling Basin.

Rivco makes money in three main ways:

• Leasing its water entitlements to farmers and others (about 53% of its portfolio is currently leased, with an average lease length of 3.2 years).
• Selling extra yearly water allocations in the spot market.
• Selling water entitlements if their market value rises above what Rivco paid for them.

It has recently moved to an internal management structure, which should reduce operating costs and management fees going forward.

In the last 12 months, this ASX utilities stock has risen almost 11%. 

This has slightly outperformed the S&P/ASX 200 Index (ASX: XJO) which is up just over 9% in that same span. 

Why this ASX utilities stock is an attractive buy

In a report from Bell Potter yesterday, the broker said over the past decade Southern Murray–Darling Basin entitlements have delivered average annual cash yields of 3.5% p.a. It has also delivered capital returns of 10.0-12.0% p.a. with periods of outperformance tied to permanent cropping development. 

The broker said over the past five years capital returns have been more modest, however, a period of Government buybacks (~160GL over 5yrs and 230GL slatted for purchase) and modest expansion in tree nut planting (+1.3% p.a.) may trigger a return to higher levels of capital growth.

Buy recommendation

Bell Potter has initiated coverage on this ASX utilities stock with a buy recommendation, along with a price target of $1.65. 

From yesterday’s closing price of $1.50, that indicates 10% upside. 

RIV enters FY26 with the highest level of contracted revenue and available allocation in five years supporting a positive near term earnings outlook. In addition, with rising lease rates (+40bp YoY and 5-6% implied yields in current market offers) we see the scope to lift the portfolio return as leasing and re-leasing opportunities emerge (which should emerge as a theme from 2H28e). 

At the asset level, we see the shift in aligning future dividends with operating earnings as potentially moving group strategy to sustain and grow the asset base.

The post Bell Potter just initiated coverage on this ASX utilities stock with a buy recommendation 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 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.

When investors think about passive income on the ASX, the big banks usually get most of the attention.

But Australia’s large mining shares can also play an important role in an income-focused portfolio. Their dividends can fluctuate with commodity cycles, but the scale of their operations and strong cash generation often allow them to return large amounts of capital to shareholders.

That’s why I think BHP Group Ltd (ASX: BHP) shares deserve consideration from investors looking to generate passive income over the long term.

A mining giant that generates enormous cash flow

BHP is one of the largest resources companies in the world, producing commodities that are essential to the global economy.

Its portfolio includes iron ore, copper, and other minerals used in construction, infrastructure, and energy systems. Because of the scale and quality of its operations, the company is capable of generating very large cash flows during favourable commodity cycles.

Those earnings often translate into sizeable dividends for shareholders. While payouts can vary depending on commodity prices, BHP has a long history of returning significant capital to investors.

For income investors who are comfortable with some cyclicality, I think that cash-generating ability is a major attraction.

Copper could become even more important

One reason I think BHP remains compelling for long-term income investors is its growing exposure to copper.

Copper is widely used in electrical systems, renewable energy infrastructure, and electric vehicles. As the global economy electrifies and decarbonises, demand for copper is expected to increase significantly.

BHP already has a major presence in copper production through its large operations in South America. In recent years, copper has become an increasingly important contributor to the company’s earnings.

If long-term demand for copper continues to rise as many analysts expect, BHP could benefit from both higher production and favourable prices over time.

That would support the company’s ability to continue generating strong cash flows and paying dividends.

Potash adds another long-term growth option

Another part of the story that often gets overlooked is BHP’s potash project.

The company is developing the Jansen potash mine in Saskatchewan, Canada, with production expected to begin in the coming years. Once fully ramped up, it is expected to become one of the world’s largest potash operations.

Potash is a key fertiliser ingredient used in agriculture. As the global population grows and food production becomes more important, demand for fertilisers could increase significantly.

For BHP, this project provides exposure to a completely different commodity market that is linked to global food demand rather than industrial activity.

Over time, that diversification could support both earnings stability and long-term growth.

Foolish takeaway

BHP’s dividends may not be perfectly predictable from year to year, but the company’s ability to generate enormous cash flows has made it a major income payer on the ASX for many years.

With growing exposure to copper and a new potash business on the horizon, the company also has several long-term growth drivers.

For investors seeking passive income with exposure to global resources markets, BHP shares could be well worth considering.

The post Should you buy BHP shares for passive income? appeared first on The Motley Fool Australia.

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