Tag: Stock pick

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.

More reading

• Should I invest $2,000 in the VAS ETF?
• Are Rio Tinto or BHP shares a better buy right now?
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• Is this ASX mining giant quietly setting up its next big move?
• What $10,000 invested in BHP shares could become in 10 years

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.

QBE Insurance Group Ltd (ASX: QBE) shares closed on Monday trading for $20.56 apiece.

This sees shares in the S&P/ASX 200 Index (ASX: XJO) insurance giant up 3.9% in 2026, outpacing the 1.8% year to date loss posted by the benchmark index.

Longer-term, QBE shares are down 0.8% over 12 months. Though that’s doesn’t include the two partly franked dividends totalling $1.048 a share that the insurer paid (or shortly will pay) eligible stockholders over this time. QBE trades on a partly franked trailing dividend yield of 5.1%.

And looking ahead, Baker Young’s Toby Grimm believes QBE represents appealing value today (courtesy of The Bull).

Here’s why.

Should you buy QBE shares today?

“QBE offers attractive value at this stage of the cycle,” Grimm said.

The first reason he’s bullish on QBE shares is the company’s expectation beating results in calendar year 2025.

“In February, the global insurer reported better-than-forecast earnings growth of 23% in full year 2025, driven by a solid 7% increase in policy sales and relatively low claims rates,” he said.

As for the second reason he has a buy rating on the ASX 200 insurer, Grimm said, “With favourable operating conditions likely to persist into full year 2026, we see compelling financial sector value at around 11.5 times projected earnings and a dividend yield of 5%.”

Then there’s the diversified exposure that QBE shares offer.

According to Grimm:

Insurance is inherently risky and industry feedback suggests competition is increasing, which may limit further premium increases in coming years. However, QBE offers unparalleled geographical diversification among Australian insurers, which helps reduce earnings volatility.

Grimm concluded, “We’re comfortable accumulating the stock at current levels as an attractively valued, well diversified financial exposure.”

What’s the latest from the ASX 200 insurance stock?

QBE released its full year 2025 results on 20 February.

Atop the 23% year-on-year earnings growth that Grimm mentioned above, QBE achieved a 21% increase in statutory net profit after tax (NPAT) to US$2.16 billion.

That saw management boost the final dividend by 23.8% from the 2024 final payout to 78 cents a share.

“QBE delivered strong performance in 2025, exceeding our financial plan for the year,” QBE CEO Andrew Horton said on the day.

Looking ahead, Horton added, “Profitability remains attractive across the majority of lines and the year ahead appears constructive for further growth, and a continuation of solid returns.”

As for that increasing competition that Grimm mentioned, Horton said, “While competition has increased in some classes, QBE remains committed to our long-term strategy, underwriting discipline, and sustaining strong performance.”

QBE shares closed up 7.1% on the day of the 2025 results release.

The post 3 reasons to buy QBE shares today appeared first on The Motley Fool Australia.

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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.

I’m excited about the potential behind Australian stocks looking to go global with their growth.

Australia is a great country to do business in, but with less than 30 million people in Australia it’s important to recognise there are other continents with much larger addressable markets to target.

I’m excited about the potential of the following Australian stocks. I expect both will be positions in my portfolio this year – I’m already a shareholder of the hotel software business I’m about to outline.  

Sigma Healthcare Ltd (ASX: SIG)

Sigma owns three different brands in Australia – Chemist Warehouse, Amcal and Discount Drug Stores. It’s also one of the largest wholesalers in Australia. It also has Chemist Warehouse locations in New Zealand, Ireland, Dubai and China. I’m hopeful the business can expand to other international locations in the coming years.

The core Australian Chemist Warehouse (CW) business is performing strongly, with CW-branded store sales up 17.2% in the FY26 half-year result. This helped Sigma’s revenue climb 14.9% to $5.5 billion, with normalised operating profit (EBIT) rising 18.7% to $582.9 million, normalised net profit increasing 19.2% to $392 million.

I was particularly pleased to see that international growth accelerated, with retail network sales increasing by 24.5% year-over-year.

Comparing its international store networks between HY26 and the end of FY25, it grew its New Zealand store network by nine to a total of 70, Ireland stores grew by three to 17 and the Dubai network was flat at two. It’s expecting to open 11 stores internationally in the second half of FY26.

In China, the business is focusing on profitable online sales and plans to shut the physical store network by FY29.

With increasing operating leverage, growing store networks and an ageing and growing Australian population, there are multiple earnings tailwinds overall for the Australian stock.

According to the forecast on CMC Invest, the Sigma Healthcare share price is valued at 30x FY28’s estimated earnings.

Siteminder Ltd (ASX: SDR)

Siteminder is a leading ASX tech share that provides software to thousands of hotels around the world to help them with their operations and maximise their room revenue with distribution and room pricing.

The Australian stock has built its market share over the years thanks to its offering’s appeal, with the current focus being on larger hotels.

One of the most pleasing things about investing in this business today is that after falling close to 60% since October 2025, its revenue has continued growing strongly.

I like how the business has a target of revenue growth of 30% and it’s working hard to generate that growth from new and existing clients, partly by offering more advanced software modules.

In the FY26 half-year result, the business grew its revenue by 25.5% to $131.1 million, while the adjusted operating profit (EBITDA) more than doubled to $12.3 million.

With growing average revenue per user (ARPU), a growing list of hotel clients and rising profit margins, this Australian stock has a very exciting future ahead, in my view.

The post 2 strong Australian stocks to buy now with $6,000 appeared first on The Motley Fool Australia.

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

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decline. The benchmark index fell 0.4% to 8,583.4 points.

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

ASX 200 set to rebound

The Australian share market looks set for a good session on Tuesday following a decent start to the week in the US. According to the latest SPI futures, the ASX 200 is poised to open the day 43 points or 0.5% higher. In late trade on Wall Street, the Dow Jones is up 0.8%, the S&P 500 is up 0.95%, and the Nasdaq is 1.1% higher.

Oil prices sink

It could be a poor session for ASX 200 energy shares Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 4.75% to US$93.89 a barrel and the Brent crude oil price is down 2.7% to US$100.31 a barrel. This was driven by news that Donald Trump is pressuring allies to protect tankers in the Strait of Hormuz.

RBA meeting

Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) shares will be on watch on Tuesday when the Reserve Bank of Australia (RBA) makes its decision on interest rates. According to the latest cash rate futures, the market is pricing in a 71% probability of the RBA lifting the cash rate by 25 basis points to 4.1%.

Gold price softens

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a subdued session on Tuesday after the gold price softened overnight. According to CNBC, the gold futures price is down 0.85% to US$5,019.4 an ounce. Inflation fears have been weighing on the precious metal.

ASX 200 shares going ex-div

A number of ASX 200 shares are going ex-dividend today and could trade lower. This includes job listings company Seek Ltd (ASX: SEK), plumbing parts company Reece Ltd (ASX: REH), and debt collector Credit Corp Ltd (ASX: CCP). With respect to Seek, it will be rewarding its shareholders with a fully franked 27 cents per share interim dividend on 1 April.

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

More reading

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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 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 I had $3,000 ready to invest in the share market today, I would focus on buying shares that I believe can grow earnings per share steadily over many years.

With that in mind, here are three ASX growth shares I would happily buy and hold.

Catapult Sports Ltd (ASX: CAT)

Catapult is a sports technology company that provides performance analytics and wearable technology used by professional sports teams around the world.

Its platform helps teams track player performance, analyse training loads, and reduce injury risk. What I like about this business is that once teams integrate the technology into their operations, it tends to become a core part of how they manage athletes.

The company now works with thousands of teams across major global leagues such as the AFL, NFL, NBA, and EPL, and the data-driven nature of modern sport means demand for performance analytics continues to grow.

As the business expands internationally and continues to develop new software capabilities, Catapult has the potential to increase both its customer base and revenue per team over time.

Netwealth Group Ltd (ASX: NWL)

Netwealth is one of the standout success stories in Australia’s wealth management platform industry.

The company provides investment administration and portfolio management platforms used by financial advisers. As more Australians accumulate wealth and seek professional advice, demand for high-quality platforms continues to grow.

What has impressed me most about Netwealth over the years is its ability to consistently attract strong inflows from advisers and their clients. The platform has built a reputation for technology, service quality, and innovation.

Because the platform earns fees based largely on funds under administration, Netwealth benefits not only from new client inflows but also from rising markets and additional services over time.

That combination has helped drive strong and growing cash flow, and I believe the long-term opportunity in Australia’s wealth management sector remains significant.

Codan Ltd (ASX: CDA)

Codan is a technology company that designs and manufactures specialised communications equipment and metal detection devices used around the world.

Its communications division supplies high-frequency radio systems used by governments, defence forces, and emergency services operating in remote or challenging environments. These systems are often mission-critical, which helps support steady demand and long-term customer relationships.

One area that I find particularly interesting is Codan’s exposure to the unmanned systems market. Through its DTC division, the company supplies communications technology used in unmanned aerial vehicles and other unmanned systems. As drones and other unmanned platforms become increasingly important for defence, surveillance, and security applications, reliable communications equipment becomes essential.

Codan’s metal detection business also continues to benefit from strong demand from gold prospectors around the world, particularly during periods of elevated gold prices.

With exposure to both specialised communications markets and metal detection, I see Codan as a company with multiple growth drivers that could support long-term expansion.

Foolish takeaway

Finding great growth shares often comes down to identifying businesses that are expanding their reach and building strong positions in their industries.

Catapult, Netwealth, and Codan are three companies that I believe have those characteristics, which is why they are the types of ASX growth shares I would be happy to buy and hold for the long term.

The post 3 ASX growth shares I’d buy and hold with $3,000 appeared first on The Motley Fool Australia.

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

Healthcare shares have been among the biggest fallers on the ASX over the past year. Two of the sector’s biggest names — CSL Ltd (ASX: CSL) and Pro Medicus Ltd (ASX: PME) — have both seen their share prices slump heavily. They declined roughly 40% or more over the past 12 months.

When CSL and Pro Medicus shares fall this far, investors often start asking the same question: is this a buying opportunity, or a sign that more downside is ahead?

Here’s a closer look at both ASX healthcare shares.

CSL: Global plasma leader

CSL is one of Australia’s most successful global healthcare companies. The biotechnology giant specialises in plasma therapies, vaccines, and treatments for rare diseases through divisions such as CSL Behring and Seqirus.

One of the biggest strengths of the $68 billion CSL shares is its dominant position in the global plasma therapies market. The company also has multiple growth drivers. Demand for immunoglobulin therapies continues to rise globally, while its vaccines division provides additional diversification.

CSL’s long history of research and development investment also supports its pipeline of new treatments, which could drive long-term earnings growth.

Despite its strengths, CSL has faced several challenges in recent years. Rising plasma collection costs, setbacks in its research pipeline, and the integration of its Vifor acquisition have weighed on investor sentiment.

There is also growing competition from new therapies targeting similar disease areas. This could eventually affect demand for some of CSL’s core products.

Another factor is investor expectations. As a former ASX market darling, CSL shares historically traded at a premium valuation, making the share price particularly sensitive when growth slows.

UBS thinks that the current valuation is appealing. The broker has maintained a buy rating on CSL shares, with a 12-month price target of $235. This points to a potential upside of 67% from recent levels.

Pro Medicus: Advanced radiology system provider

Pro Medicus is the third largest ASX healthcare stock, behind ResMed and CSL shares. The company develops imaging software used by hospitals and radiology providers around the world.

The flagship of Pro Medicus, Visage imaging platform, is widely regarded as one of the most advanced radiology systems available. As a result, the company signed two key five year contracts last week with a combined minimum value of $40 million.

Pro Medicus also operates a highly scalable software model with extremely strong margins and long-term contracts with large US hospital networks.

Another advantage is the company’s strong balance sheet. Pro Medicus has historically carried little to no debt while continuing to generate strong earnings growth.

The biggest concern for investors is the valuation of the little sister of CSL shares. Even after its sharp share price fall, Pro Medicus has often traded on extremely high earnings multiples, reflecting expectations for years of strong growth.

Because of this premium valuation, even solid financial results can sometimes trigger share price declines if they fail to exceed lofty expectations.

The company also relies on winning large hospital contracts to maintain its growth trajectory, which can lead to periods of volatility if new deals take longer than expected.

However, most analysts are positive on the healthcare stock. TradingView data show that analysts have an average 12-month price target of $218.44. This indicates 65% potential upside at the time of writing.

The post Should you buy CSL and Pro Medicus shares today? appeared first on The Motley Fool Australia.

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

Shares in Eagers Automotive Ltd (ASX: APE) have pulled back sharply in recent weeks. It has left investors wondering whether the once red-hot S&P/ASX 200 Index (ASX: XJO) stock could now be a bargain.

The automotive retailer’s share price has dropped about 18% over the past month and roughly 14% since the start of the year, pushing the stock well below its recent highs.

For a company that has been one of the standout performers in the consumer discretionary sector in recent years, the sudden weakness has caught the market’s attention.

Here’s a closer look at the ASX 200 stock and whether the pullback could represent an opportunity.

BYD as big driver

Part of the decline of this ASX 200 stock reflects profit-taking after a strong rally in 2025. But that’s only part of the reason. The softer start to the year has also been caused by Toyota supply chain issues, which are expected to be resolved in the near term.

Eagers is the largest automotive retail group in Australia. The company owns and operates a large network of new and used motor vehicle dealerships across Australia and New Zealand.

A big driver of Eagers’ success has been electric vehicles, particularly BYD. The ASX 200 stock now operates roughly 80% of BYD dealerships in Australia, giving it unmatched exposure to one of the fastest-growing EV brands in the country.

One of Eagers’ biggest strengths is its scale and market leadership. The company controls about 14% of Australia’s new-vehicle sales. That gives it significant bargaining power with manufacturers and strong brand recognition.

First move in North America

In October, the ASX 200 stock announced a game-changing move, revealing the acquisition of a 65% stake in CanadaOne Auto, one of Canada’s largest dealership groups.

The deal values CanadaOne at around $1.05 billion and marks Eagers’ first expansion into North America. Once completed and approved, Eagers will control 42 dealerships across multiple Canadian provinces.

Cyclical and supply risks

Despite its strengths, Eagers operates in a cyclical sector.

Vehicle sales are closely tied to consumer confidence and economic conditions. If interest rates remain elevated or household budgets come under pressure, new car demand could weaken.

The company is also exposed to supply and demand dynamics in the global auto industry.  

In addition, after several years of strong share price performance, the ASX 200 stock’s valuation has occasionally looked stretched. That makes it vulnerable to pullbacks when market sentiment shifts.

What next for Eagers shares?

Broker sentiment on the ASX stock remains broadly constructive despite the recent share price drop.

Several analysts still view the company as a high-quality operator with a growing dealership network. Bell Potter just upgraded the ASX 200 stock to a buy rating from hold, while slightly trimming its price target to $28.50 from $28.75.

With the shares currently trading at $20.95, the broker’s target suggests potential upside of about 36% over the next 12 months.

And that may not be the full return on offer. Bell Potter is also forecasting a fully franked dividend yield of roughly 3.8% this year. This would lift the potential total return to around 40%.

The post Is this red-hot ASX 200 stock a buy after tumbling 18%? appeared first on The Motley Fool Australia.

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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 Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A mix of diversified ASX ETFs, bonds, and quality ASX stocks can be a simple starting point for new investors entering the share market.

With thousands of companies to choose from, constant market noise, and the fear of losing money, getting started can feel overwhelming.

But building wealth through investing doesn’t need to be complicated. A straightforward portfolio of broad ASX ETFs, quality ASX shares, and bonds can help investors build a resilient portfolio that grows over the long term.

Here’s how I’d do it.

Broad market index funds

Step one is to start with broad market ASX ETFs. Exchange-traded funds are one of the easiest ways to gain instant diversification. Rather than trying to pick individual winners from day one, investors can spread their money across hundreds of companies.

A simple starting trio could include the BetaShares Australia 200 ETF (ASX: A200) for exposure to Australia’s blue-chip shares. Then add the Vanguard MSCI International Shares ETF (ASX: VGS) for global diversification, and the iShares MSCI Emerging Markets ETF (ASX: IEM) for access to faster-growing developing economies.

Together, these ASX ETFs provide exposure to thousands of companies across Australia, the US, Europe, and emerging markets. That kind of diversification can reduce risk and smooth returns over time.

High-quality ASX stocks

Once the ASX ETFs and the foundations are in place, investors can begin layering in individual companies with strong competitive advantages and long-term growth potential.

The Australian market is home to several world-class businesses that have delivered impressive shareholder returns over decades.

Companies like CSL Ltd (ASX: CSL), REA Group Ltd (ASX: REA), and Xero Ltd (ASX: XRO) have built powerful market positions and continue expanding globally. Adding a handful of quality growth shares can give a portfolio an extra engine for capital appreciation.

Reliable dividend payers

The next step is to include reliable dividend payers. Income is another important component of long-term investing, especially for Australians who benefit from franking credits.

Well-established businesses such as Wesfarmers Ltd (ASX: WES) and Commonwealth Bank of Australia (ASX: CBA) have long histories of returning cash to shareholders through dividends. Reinvesting those dividends can significantly boost returns through the power of compounding.

Stability through bonds

Then it’s time to add stability through bonds. Shares can be volatile, particularly during market downturns. Bonds can help stabilise a portfolio and reduce overall risk.

One easy way to gain exposure is through bond ASX ETFs such as the Vanguard Australian Fixed Interest Index ETF (ASX: VAF). These funds invest in government and high-quality corporate bonds, providing steady income and typically moving less dramatically than equities.

Having a portion of a portfolio in bonds can provide valuable balance during turbulent markets.

Invest consistently, think long term

Perhaps the most important step is simply sticking with the plan: invest consistently and think long term. Markets will rise and fall, sometimes sharply. But history shows that patient investors who regularly add to their portfolios tend to be rewarded over time.

Rather than trying to time the market, a steady investing habit — such as contributing monthly — can smooth out volatility and build wealth gradually.

In the end, successful investing doesn’t require complex strategies or constant trading. A simple mix of diversified ASX ETFs, quality ASX shares, and stabilising bonds can form a powerful foundation for long-term wealth creation.

The post New to investing? Start with ASX ETFs and quality ASX stocks appeared first on The Motley Fool Australia.

More reading

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• Here are the latest growth forecasts for the CSL share price
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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 CSL, Wesfarmers, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended CSL, Vanguard Msci Index International Shares ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) suffered a sour start to the trading week this Monday, continuing the pessimism we saw for ASX 200 shares for much of last week.

After bouncing around quite a bit in red territory this session, the ASX 200 ended up closing 0.39% lower by the time trading wrapped up today. That leaves the index at 8,583.4 points.

This rather gloomy start to the Australian trading week follows a similarly bearish end to the American trading week on Saturday morning (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) gave up an early lead to finish down 0.26%.

Meanwhile, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was hit even harder, falling 0.93%.

But let’s get back to this week and the local markets now for a checkup on how today’s tough trading conditions affected the different ASX sectors this session.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.