Tag: Stock pick

ASX 200 consumer staples shares outperformed the 10 other market sectors last week, rising 2.9%.

This is the second time in a month that the defensive sector has led the market.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) edged 0.3% higher to finish the week at 8,657 points.

The market whipsawed last week as the war in Iran dragged on and depressing economic data was released.

US President Donald Trump said he called off strikes on Iran after Persian Gulf leaders assured him of an acceptable deal in the works.

However, on Friday, reports emerged of Iran and Oman working together to create a permanent toll system for the Strait of Hormuz.

The Strait, through which about a fifth of the world’s oil and gas is shipped, runs between the two nations and remains effectively closed.

Meanwhile in Australia, the market was surprised by a fall in employment in April that pushed the unemployment rate up to 4.5%.

Additionally, the latest monthly consumer sentiment index rose just 3.5% off the extreme low recorded last month.

Matthew Hassan, Head of Australian Macro-Forecasting at Westpac Banking Corp (ASX: WBC), commented:

… consumers remain deeply pessimistic.

Forward views are clearly still being weighed down by uncertainty around global energy supply with the Strait of Hormuz still effectively shut.

However, rate rise fears are also in the mix.

Fierce debate also broke out last week over how proposed capital gains tax (CGT) changes may disincentivise start-ups in Australia.

Amid volatile trading conditions, ASX 200 investors upped their exposure to defensive consumer staples shares.

Let’s take a look at the impact.

Consumer staples shares led the ASX sectors last week

The Woolworths Group Ltd (ASX: WOW) share price rose 5.15% to finish at $34.68 per share on Friday.

The Coles Group Ltd (ASX: COL) share price rose 3.17% to $21.47.

IGA network owner Metcash Ltd (ASX: MTS) lifted 3.39% to $3.05 per share.

Endeavour Group Ltd (ASX: EDV) shares fell 0.65% to $3.08.

The A2 Milk Company Ltd (ASX: A2M) share price tumbled 7.67% to $5.66.

ASX 200 wine share Treasury Wine Estates Ltd (ASX: TWE) increased 5.88% to $4.50.

The Bega Cheese Ltd (ASX: BGA) share price rose 0.37% to $5.39.

Almond food producer Select Harvests Ltd (ASX: SHV) ascended 6.65% to $3.85 per share.

ASX 200 agricultural share Graincorp Ltd (ASX: GNC) decreased 8.64% to $4.76.

Elders Ltd (ASX: ELD) shares tanked 18.33% to $5.88 after the company released its 1H FY26 numbers last week.

The Australian Agricultural Company Ltd (ASX: AAC) share price rose 2.27% to $1.35.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Consumer Staples (ASX: XSJ)	2.9%
Energy (ASX: XEJ)	2.58%
Financials (ASX: XFJ)	2.13%
Consumer Discretionary (ASX: XDJ)	1.32%
Healthcare (ASX: XHJ)	1.32%
Information Technology (ASX: XIJ)	(0.87%)
Materials (ASX: XMJ)	(1.29%)
A-REIT (ASX: XPJ)	(1.43%)
Industrials (ASX: XNJ)	(2.24%)
Communication (ASX: XTJ)	(2.37%)
Utilities (ASX: XUJ)	(3.65%)

The post ASX 200 consumer staples shares outperformed again last week appeared first on The Motley Fool Australia.

More reading

• Why Coles shares could be a smart buy in an uncertain market
• 10 ASX shares given buy ratings this week
• How to turn $500 a month into $500,000 with ASX shares
• How to build a $52,000 annual passive income
• Here are the top 10 ASX 200 shares today

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

On Friday, Guzman y Gomez (ASX: GYG) announced that it would exit the US market. At first glance, that might sound like bad news. After all, the United States is one of the world’s largest fast-food markets, and leaving it reduces GYG’s total addressable market (TAM).

But interestingly, investors appeared to see things differently. GYG shares rallied 9.57% on the day and finished the week up around 17%.

So why would the market react positively to a company walking away from such a large opportunity?

The US is a brutally competitive market

One reason is that the US is an incredibly competitive market, especially for Mexican food. GYG wasn’t just competing against small independent restaurants. It was up against giant, deeply entrenched players like Chipotle, Taco Bell, Qdoba, and countless other regional chains.

Breaking into a market like that requires enormous scale, marketing spend, operational capability, and a genuine competitive edge. Without those advantages, international expansion can quickly become a drain on capital and management attention.

In that sense, exiting the US may actually prevent a much larger destruction of shareholder value down the track.

A sign of management discipline

The move may also say something positive about management. One of the hardest things for leaders to do is admit when something isn’t working. Companies can easily fall into the trap of chasing sunk costs or sticking with strategies simply because they sounded exciting initially when they committed to pursuing them.

GYG’s decision suggests that its management may be willing to change course when the data points in another direction. That kind of discipline and self-evaluation is important but often underrated.

Refocusing on the core business

Importantly, the exit could also allow GYG to focus more heavily on its core markets, where the brand is stronger, and the economics may be more attractive.

Rather than pursuing aggressive global expansion, management may now be prioritising profitable growth, operational execution, and returns on capital. That trade-off between growth and profitability is becoming increasingly important in today’s market environment.

GYG now expects to open 32 restaurants in Australia and increase this segment’s EBITDA by 29%.

Bigger doesn’t always mean better

There’s also a broader investing lesson here. A large TAM alone doesn’t guarantee success. What matters more is whether a company has a genuine competitive advantage within that market.

A smaller opportunity where a company has real brand strength and operational advantages can sometimes be far more valuable than a massive market filled with fierce competition.

Foolish bottom line

Of course, the jury is still out. Leaving the US doesn’t automatically make GYG a better business, and investors will still want to see strong execution in its remaining markets.

But for now, the market seems to believe that disciplined focus may be worth more than chasing growth for growth’s sake.

The post Why Guzman Y Gomez leaving the US might actually be bullish appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Appen, Guzman Y Gomez, Monadelphous, and PMET shares are racing higher today
• 4 ASX 200 stocks rocketing higher this week
• 4 ASX shares scoring upgraded ratings this week
• Why is everyone talking about Guzman Y Gomez, Tuas and Appen shares on Friday?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Chipotle Mexican Grill. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: short June 2026 $36 calls on Chipotle Mexican Grill. The Motley Fool Australia has recommended Chipotle Mexican Grill. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

National Australia Bank Ltd (ASX: NAB) shares may be one of the most popular ASX dividend options because of the company’s perceived stability and dividend yield.

The ASX bank share usually has a higher dividend yield than competitors like Commonwealth Bank of Australia (ASX: CBA) and Macquarie Group Ltd (ASX: MQG), and a similar yield to names like Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ).

The NAB dividend has significantly increased since the COVID-19 pandemic headwinds of 2020.

Its recent FY26 half-year result was another example of the ASX bank share’s stability and ability to provide reliable dividends.

In that result, NAB maintained its payout per share at 85 cents per share following underlying cash earnings of $3.6 billion, up 0.1% year-over-year and up 2.3% half-over-half.

In this article, we’re going to look at the annual FY27 dividend, which will be paid in 2027.

2027 dividend project for owners of NAB shares

According to the projection on CMC Invest, the ASX bank share is projected to pay an annual dividend per share of $1.71 in the 2027 financial year. That would be slightly higher than the $1.70 per share projected for FY26.

At the time of writing, this forecast translates into a FY27 dividend yield of 4.6% excluding franking credits and a grossed-up dividend yield of 6.6% including franking credits.

If someone were to invest $8,000 in NAB, they would be able to buy 216 NAB shares (with a little bit of money left over).

With those 216 NAB shares, investors could receive $369.36 of cash and $527.66 overall, including the franking credits, in FY27.

Is this a good time to invest in the ASX bank share?

According to CMC Invest, there have been nine recent rating calls on the business in the last three months.

Of those nine, four of them were a sell, three of them were a hold and two were a sell. So, the investment professionals are slightly more negative than positive about the appeal of the company’s valuation right now.

The average price target of those nine ratings is $38.74. That means, collectively, those analysts are predicting the NAB share price could rise by around 5% within the next year.

Earlier this year, the NAB share price was almost at $50 – it has fallen heavily since then, making it a lot cheaper. But, analysts don’t think it will regain much ground in the near-term.

For now, there seem to be more compelling ASX shares out there to buy.

The post If I invest $8,000 in NAB shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

More reading

• Thinking about dividend yields? Here’s how much the top 10 ASX 200 shares pay
• Here’s a 9% ASX dividend stock to consider for a monthly passive income
• ANZ, Westpac, NAB and CBA shares: Analysts rate 2 a hold, and 2 a sell
• Are CBA, Westpac, NAB and ANZ shares heading for more pain?
• Which big four ASX bank stock is the best buy right now?

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

If you’d bought $10,000 worth of Rio Tinto Ltd (ASX: RIO), Fortescue Ltd (ASX: FMG) and BHP Group Ltd (ASX: BHP) shares five years ago, which investment would have delivered the best returns?

It’s a question I was asked this past week.

And one I didn’t have a ready answer for.

So, I did a little digging into how the S&P/ASX 200 Index (ASX: XJO) mining giants have performed since mid-May 2021.

Here’s what I found, bearing in mind that the S&P/ASX 200 Gross Total Return Index (ASX: XJT) – which includes all cash dividends reinvested on the ex-dividend date – is up 49.2% over the past five years.

(*Note, all price figures are as at late morning trade on Friday, 22 May. Calculations are made assuming a full $10,000 invested in each ASX 200 mining stock.)

Rio Tinto, Fortescue, or BHP shares?

In no particular order, we’ll kick off with Rio Tinto.

Five years ago, on 21 May 2021, you could have picked up Rio Tinto shares for $122.12 apiece. On Friday, those same shares were changing hands for $184.48.

That represents a gain of 51.1%.

But let’s not forget those all-important dividends.

If you bought and held onto those Rio Tinto shares for the past five years, you’d have received the last 10 fully-franked dividend payouts.

According to my trusty calculator, that equates to a total dividend payout of $40.09 a share.

If we add that back into Friday’s share price, then the accumulated value of the Rio Tinto shares you bought five years ago comes out to $224.57 a share, or a gain of 83.9%.

That would have seen your $10,000 investment grow to $18,389 today, with potential tax benefits from those franking credits.

Turning to BHP, five years ago, the Aussie mining giant was trading for $42.52 a share. On Friday, BHP shares were swapping hands for $59.82 each, for a five-year gain of 40.1%.

As for those fully-franked BHP dividends, since 21 May 2021, you have seen 10 of those passive income payouts land in your bank account, totalling $14.92 a share.

Adding that back into BHP’s recent share price, the accumulated value of those BHP shares is now worth $74.74 each. That’s a gain of 75.8%. And it would have grown your $10,000 investment into $17,578 today.

Finally, five years ago, Fortescue shares were trading for $22.30. On Friday, shares were trading for $21.63. That’s a loss of 3%, without counting the dividends.

Now, if we add in the last 10 fully-franked dividend payouts, totalling $9.62 a share, then the accumulated value of Fortescue shares bought on 21 May 2021 is now worth $31.25 each.

Demonstrating the importance of those dividend payments, that equates to a gain of 40.1%, or enough to turn your $10,000 investment into $14,013 today.

And the winner is…

Rio Tinto shares narrowly edge out BHP shares as the better investment over the past five years, with Fortescue coming in a distant third.

The post Invested $10,000 in Rio Tinto, Fortescue or BHP shares 5 years ago? Guess which one has gained the most appeared first on The Motley Fool Australia.

More reading

• Thinking about dividend yields? Here’s how much the top 10 ASX 200 shares pay
• How big will the BHP dividend be in 2027?
• Why Appen, Guzman Y Gomez, Monadelphous, and PMET shares are racing higher today
• Up 72% in a year, Monadelphous just scored another win
• Buying Rio Tinto shares? Here’s the yield you’ll get today

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

I’ll kick off this article by saying I did not buy $10,000 worth of this booming S&P/ASX 200 Index (ASX: XJO) gold stock three years ago.

Or even $100 worth.

But I wish I had!

The outshining Aussie gold miner in question is Ora Banda Mining Ltd (ASX: OBM).

Ora Banda Mining shares leaping ahead of the pack

Three years ago, on 26 May 2023, I could have picked up Ora Banda shares for just 13 cents each.

Of course, back then it wasn’t an ASX 200 gold stock yet. With its share price and market cap swelling, Ora Banda only joined the ASX 200 in December 2025 as part of the S&P Dow Jones Indices quarterly rebalance.

In either case, three years ago, I could have bought 76,923 shares with my $10,000 investment.

Now, in late afternoon trade on Friday, the Ora Banda share price stands at $1.32.

Meaning those 76,923 shares I bought just three years ago are now worth a jaw-dropping $101, 538, representing a gain of 915.4%.

For some context, the ASX 200 has gained 20.9% over this same time.

If only I could get that darn time machine working!

What’s been sending the ASX 200 gold stock rocketing?

The first tailwind we should acknowledge is the surging gold price. Trading for US$4,527 per ounce on Friday, the gold price is up 133% over the last three years, according to data from Bloomberg.

Indeed, this sees the S&P/ASX All Ordinaries Gold Index (ASX: XGD) up 139.6% since 26 May 2023.

But Ora Banda Mining shares have left those gains in the dust.

That’s been driven by the miner’s strong growth metrics.

At its half-year results (H1 FY 2026), the ASX 200 gold stock reported record revenues of $336.3 million, up 80% year on year.

And earnings before interest, taxes, depreciation and amortisation (EBITDA) were up by 106% from H1 FY 2025 to $173.2 million.

The strong performance was driven by record half-year gold sales of 62,583 ounces, up 31% year on year.

On the bottom line, Ora Banda reported a net profit after tax (NPAT) of $96.3 million, up 89%.

And, just this week, the ASX 200 gold stock updated the market on its ‘Drive to 300’ initiative. This is the miner’s plan to double gold production over the next three years, though management noted that this goal may not be achieved.

Ora Banda managing director Luke Creagh noted:

This doubling of production is currently expected to be capable of being internally funded and has the potential to add material value and position Ora Banda as a long-term sustainable gold business.

The post If I’d invested $10,000 in this ASX 200 gold stock 3 years ago I’d have $101,538 today! appeared first on The Motley Fool Australia.

More reading

• Macquarie says this mid-tier ASX gold miner can pile on more than 25%
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• Up 120% since July, guess which ASX 200 gold stock is charging higher again on Monday
• Here are the top 10 ASX 200 shares today
• How ASX 200 gold stocks like Newmont, Evolution Mining and Northern Star shares have their shine back today

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.

Warren Buffett has a famous approach to market fear. When others are panicking, he looks for opportunity.

I think that is a useful mindset for ASX investors right now. There are plenty of risks in the market, from higher interest rates and weaker consumer spending to geopolitical uncertainty and questions around company earnings.

But there are also a number of high-quality ASX shares trading well below where they were not long ago.

That is why I think this could be a good time to be greedy, selectively.

Quality healthcare at lower prices

One area I would be looking at closely is healthcare.

CSL Ltd (ASX: CSL) has had a brutal year, and investor confidence has been badly damaged. The company has disappointed the market, and it needs to prove that earnings growth can become more reliable again.

But I still think CSL owns valuable healthcare assets across plasma therapies, vaccines, and specialist medicines. These are global businesses linked to real medical demand, not short-term consumer trends.

At today’s much lower share price, I think investors may be getting a rare chance to buy CSL while expectations are very low.

I also think ResMed Inc. (ASX: RMD) looks interesting after its own selloff.

ResMed is a global leader in sleep apnoea treatment, with devices, masks, accessories, and software that support patients and healthcare providers. I like its high-margin, recurring revenue characteristics. Once a patient is in therapy, there can be ongoing demand for masks, cushions, and other supplies.

There are concerns around possible drug competition in sleep apnoea, but I think the market may be underestimating the durability of ResMed’s position.

Fallen growth shares

I would also be looking at selected ASX growth shares.

WiseTech Global Ltd (ASX: WTC) has fallen heavily from its highs, but I still think the long-term opportunity is compelling.

Global trade is complicated. Freight forwarders and logistics companies deal with customs, compliance, documentation, routing, warehousing, and cross-border regulation. WiseTech’s software sits inside those workflows.

That is exactly the kind of position I like in a technology business. If the software becomes deeply embedded, it can be difficult for customers to replace.

The stock still carries risks around valuation, acquisitions, execution, and investor sentiment. But after such a large fall, I think the market may be offering long-term investors a better entry point.

Consumer shares with recovery potential

Some consumer-facing ASX shares also look interesting after major declines.

Harvey Norman Holdings Ltd (ASX: HVN) is exposed to a difficult retail environment, with households under pressure and big-ticket spending under strain. But I think the business still has valuable retail brands, property assets, and a history of rewarding shareholders with dividends.

Accent Group Ltd (ASX: AX1) is another beaten-up name that could appeal to patient investors. Footwear and apparel spending can be cyclical, but Accent owns a broad portfolio of banners and brands across sport, lifestyle, and youth fashion.

If consumer confidence improves over time, I think the recovery potential could be meaningful.

Finally, Amcor plc (ASX: AMC) could offer a different kind of cheap ASX share. Packaging may not be exciting, but it is used across food, beverages, healthcare, and consumer goods. I like the defensive nature of that demand, especially when the share price is out of favour.

Foolish takeaway

Being greedy does not mean buying every ASX share that has fallen. Some selloffs are deserved, and some businesses will not recover the way investors hope.

But I think Buffett’s broader lesson still applies. Fear can create better prices for investors who are willing to think beyond the next few months.

CSL, ResMed, WiseTech, Harvey Norman, Accent, and Amcor are all facing different challenges. That is why they are cheaper today.

For me, the opportunity is in separating temporary disappointment from permanent damage. When good businesses are priced as though the future is much darker than it may prove to be, I think patient investors should be ready to act.

The post I’d listen to Warren Buffett and load up on cheap ASX shares appeared first on The Motley Fool Australia.

More reading

• I’d buy these 3 ASX shares before the next market rally
• How to turn $500 a month into $500,000 with ASX shares
• How to build a $52,000 annual passive income
• 5 ASX retail shares whose 12-month price targets just got slashed
• Could this boring ASX 200 dividend share be a strong buy for its big yield?

Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, ResMed, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Amcor Plc, Harvey Norman, ResMed, and WiseTech Global. The Motley Fool Australia has recommended Accent Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Uncertain markets can make investors overthink things.

Inflation, interest rates, consumer pressure, and global risks all create noise. But sometimes the best ASX shares to own are the ones with simple, durable demand behind them.

That is why I think Coles Group Ltd (ASX: COL) shares could be a smart buy today.

A business people keep using

Coles is not an exciting growth stock. It sells groceries, household products, and everyday essentials through one of Australia’s largest supermarket networks.

But I think that is why it can be useful in a portfolio.

People still need food, cleaning products, toiletries, baby items, pet food, and other staples in almost every economic environment. Shoppers may become more price-conscious, swap brands, or hunt for specials, but grocery demand remains far more reliable than many discretionary categories.

That gives Coles a defensive quality that can be valuable when the broader market is unsettled.

The value focus helps

Cost-of-living pressure is still shaping household behaviour.

I think that plays into the hands of supermarkets that can offer convenience, scale, loyalty programs, private-label products, and regular promotions.

Coles has the size to compete hard on price while still investing in stores, online shopping, supply chain improvements, and customer data.

The supermarket sector is not easy. Competition from Woolworths Group Ltd (ASX: WOW), Aldi, Costco, and independent operators remains intense. Coles also needs to manage wage costs, supplier relationships, logistics, and scrutiny over grocery prices.

But I think a strong supermarket business can still be a very useful long-term holding when managed well.

Income plus resilience

Coles also has appeal as an income share.

Its dividend yield may not be the highest on the ASX, but I think the quality of the earnings base counts for a lot.

A lower-risk dividend from a defensive business can be more attractive than a larger yield from a company with more cyclical earnings.

For investors looking for passive income, Coles could provide regular dividends backed by a business that has a clear role in everyday Australian life.

There is also room for capital growth if the company can keep improving margins, growing online sales, lifting efficiency, and strengthening customer loyalty over time.

A share for the quieter part of a portfolio

I would not buy Coles shares expecting explosive returns.

That is not the point. I would buy it because it can add balance to a portfolio that may already have banks, miners, technology shares, and higher-risk growth stocks.

When markets are strong, Coles may not always lead the way. But when investors become more cautious, businesses with defensive earnings and reliable demand can become more appealing.

That kind of stability can be underrated.

Foolish takeaway

Coles is the type of ASX share that can look a little ordinary at first glance. But ordinary businesses can be very useful when they sell products people need every week.

The supermarket sector will always have competition, cost pressure, and political attention. Those risks should be taken seriously.

Even so, I think Coles has enough scale, brand strength, and defensive demand to make it a strong candidate for long-term investors.

In a market full of uncertainty, a dependable grocery business may be just the sort of share worth owning.

The post Why Coles shares could be a smart buy in an uncertain market appeared first on The Motley Fool Australia.

More reading

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• Why Bapcor, Coles, Graincorp, and Xero shares are tumbling today
• Coles share price ‘down down’ after Federal Court rules shoppers were deceived
• How much do I need to invest in ASX shares for $500 a month of passive income?
• How big will the Coles and Woolworths dividends be in 2027?

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

Market rallies rarely announce themselves in advance.

By the time confidence returns, some of the best opportunities may already have moved. That is why it can be worth looking for quality ASX shares while sentiment is still mixed.

The aim is not to chase the hottest stock of the week. It is to find businesses with strong long-term drivers that could benefit when investors become more willing to back growth again.

Here are three ASX shares I’d be looking at before the next market rally.

Breville Group Ltd (ASX: BRG)

Breville is an ASX share I’d be happy to buy before confidence improves.

The company has built a global premium appliance business with coffee at the centre of its growth story. Its espresso machines have benefited from the shift toward better coffee at home, particularly among consumers willing to pay for quality.

That category gives Breville more than a one-off product sale. Coffee sits in daily routines, and the company has built credibility with consumers who care about performance, design, and consistency.

Breville also has room to grow internationally through its Breville, Sage, Baratza, and Lelit brands. Expansion in the United States, Europe, and newer markets gives the business several levers beyond Australia.

If consumer sentiment improves and premium spending stabilises, Breville could be well placed to keep building on its global growth story.

Megaport Ltd (ASX: MP1)

Megaport is a smaller and more volatile idea, but its market opportunity is significant.

This ASX share helps businesses connect to cloud providers, data centres, and networks through its on-demand connectivity platform. As companies continue shifting workloads into the cloud, the need for flexible digital infrastructure keeps growing.

Megaport’s recent acquisition of Latitude.sh expands the company beyond connectivity and into compute infrastructure, increasing its addressable market.

That is important because cloud and artificial intelligence demand are not only software stories. They require networks, compute capacity, and infrastructure that can scale quickly.

Megaport still has to execute well. But if it can turn its broader platform into stronger revenue and earnings growth, the share price could have significant upside over the long term.

ResMed Inc (ASX: RMD)

ResMed Inc remains one of the highest-quality healthcare businesses on the ASX.

The company develops devices, masks, and software used to treat sleep apnoea and other breathing-related conditions. These are not discretionary products. They sit in an area of healthcare where diagnosis, treatment, and ongoing patient management is important.

What makes ResMed interesting is the size of the untreated market. Management estimates that there are over 1 billion sufferers of sleep apnoea globally, with the vast majority still undiagnosed. This means demand can continue growing as awareness improves and more patients enter treatment.

The company also benefits from connected devices and digital tools that help patients and healthcare providers manage therapy over time. That gives ResMed a stronger position than a simple medical device manufacturer.

If investors rotate back toward reliable global growth businesses, ResMed could be one of the ASX shares that attracts attention.

The post I’d buy these 3 ASX shares before the next market rally appeared first on The Motley Fool Australia.

More reading

• 10 ASX shares given buy ratings this week
• 7 ASX shares with strengthened buy ratings this week
• 3 ASX growth shares I think can double in under 7 years
•  3 ASX shares that could be future blue chips
• 3 ASX 200 shares I’d buy before the market wakes up

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

Monthly-paying ASX dividend shares are a dream for income-focused investors who want a reliable passive income.

Here are my three top picks, and one of them yields as high as 9.2%.

BetaShares Australian Top 20 Equity Yield Maximiser Fund (ASX: YMAX)

The Betashares YMAX is an ASX-listed exchange-traded fund (ETF) that provides exposure to the 20 largest blue-chip ASX-listed shares.

At the time of writing, the fund is heavily weighted into the financial sector, which accounts for 47% of its allocation. The materials sector is second, accounting for 21.4% of its allocation.

The fund has been paying quarterly dividends to its shareholders since April 2013. But in January, its payment frequency was amended to monthly.

As at 30th April 2026, the YMAX ETF has a 12-month gross distribution yield of 9%, and a 12-month distribution yield of 7.6%. The total 12-month franking level is 41.2%.

The fund most recently paid a $0.047623 per unit dividend to shareholders on Monday this week.

Plato Income Maximiser Ltd (ASX: PL8)

Plato is a listed investment company (LIC) that targets income-focused investors, including retirees, SMSF investors, and other investors seeking a dependable income stream.

The company actively manages a portfolio of mature ASX-listed equities, cash, and listed futures. It mostly focuses on ASX dividend shares with strong dividend payouts, such as major banks, mining giants, and energy firms. 

Metrics Income Opportunities Trust (ASX: MOT)

The Metrics Master Income Trust is an LIT with a diversified portfolio of private credit and related opportunities. 

This means the Trust can give investors direct exposure to private credit investments, which is becoming an increasingly popular asset class for income-focused investors.

It said its investment objective is to provide monthly cash income, preserve investor capital, and manage investment risks. It also seeks to provide upside potential through investments in private credit and other assets. These “other assets” include warrants, options, preference shares, and equity.

The Trust targets a cash yield of 7% per year, with a total target return of 8% to 10% per year. The yield is net of fees and expenses. 

Dividend distributions are paid monthly. The Trust also has a distribution reinvestment plan (DRP), which allows its unitholders to reinvest monthly income distributions.

The ASX dividend share’s latest payout was 1.22 cents per unit in late April. The Fund also paid out 1.09 cents per unit in March, 0.92 cents in February, and 1.22 cents in January. 

Over the past 12 months, Metrics Income Opportunities Trust has paid out 12 dividends totalling 15.92 cents per share (unfranked). This means the LIT has a dividend yield of around 9.2% at the time of writing.

The post 3 ASX dividend shares yielding up to 9%, and with monthly payouts appeared first on The Motley Fool Australia.

More reading

• Here’s a 9% ASX dividend stock to consider for a monthly passive income
• A new monthly ASX dividend ETF just hit the ASX
• Is now the time to turn to high yield dividend shares?
• Build the ultimate retirement portfolio with these 2 monthly ASX dividend stocks

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

Here at The Motley Fool, we believe in long-term, diversified investing principles. One simple way to follow these principles is with ASX ETFs. 

ASX ETFs offer instant diversification in just one trade. 

However more and more thematic funds are becoming available that allow investors to tap into specific sectors. 

This can be extremely effective when certain areas of the market are undervalued. 

Scooping up an ASX ETF in an undervalued sector can pay off big in the long run when markets correct. 

With that in mind, here are three ASX sectors that have struggled recently, making them a prime value play in the long run. 

Healthcare

Healthcare shares have been hit hard in 2026. 

Here on home soil, the S&P/ASX 200 Health Care Index (ASX:XHJ) is down around 30% for the year to date. 

Many healthcare stocks were previously trading at high valuations after years of strong performance, so investors became less willing to pay premium prices as interest rates stayed elevated. 

Higher rates also pushed investors away from growth-oriented healthcare and biotech companies and toward sectors like banks, mining, and energy. 

Some experts are now suggesting the sell-off may have swung too far to the down side, creating a buy-low opportunity for ASX ETFs focussed on this sector. 

These headwinds have pushed down healthcare shares globally, not just here in Australia. 

Some options for investors optimistic on a global long-term rebound include: 

• BetaShares Global Healthcare ETF – Currency Hedged (ASX: DRUG)
• iShares International Equity ETFs – iShares Global Healthcare ETF (ASX: IXJ)
• Vaneck Vectors Global Health Leaders ETF (ASX: HLTH). 

Technology 

ASX technology shares have also been heavily sold off in 2026. 

The S&P/ASX All Technology Index (ASX: XTX) is down around 20% for the year to date. 

ASX technology shares have been pressured by fears that generative AI could disrupt traditional software business models and reduce the value of existing SaaS platforms. 

Investors have been concerned that AI tools and autonomous agents may replace some software functions, weaken pricing power, and force Australian tech companies to spend heavily just to remain competitive against larger global AI players.

However it appears some momentum is beginning to swing back in favour of tech shares.

Targets from brokers are now swinging back towards the optimistic side. 

For investors confident in a long-term rebound, an ASX ETF to consider is Betashares S&P/ASX Australian Technology ETF (ASX: ATEC), which provides exposure to leading ASX-listed companies in a range of tech-related market segments.

Real estate

Finally, real estate shares have also struggled in 2026. 

The S&P/ASX 200 Real Estate Index (ASX: XRE) has dropped around 10% since the start of the year. 

Headwinds have included higher bond yields and interest rates hurting property valuations and REIT financing costs. 

For investors looking to target this undervalued sector, some ASX ETFs to consider include: 

• VanEck Vectors Australian Property ETF (ASX: MVA)
• Vanguard Australian Property Securities Index ETF (ASX: VAP). 

The post ASX ETFs to target this month that focus on undervalued sectors appeared first on The Motley Fool Australia.

More reading

• 3 amazing ASX ETF for beginners to buy and hold
• 3 ASX ETFs that could outperform the ASX in the next 12 months 
• 3 excellent ASX ETFs to buy and hold for 10 years
• Why this BetaShares ETF could be a strong buy for Aussie investors
• ASX tech shares vs. ATEC ETF: How they fared during sector downturn

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.