Tag: Stock pick

Long term wealth rarely comes from trading in and out of the share market.

More often, it comes from owning great assets, adding to them regularly, and letting time and compounding do the heavy lifting.

That’s the beauty of exchange traded funds (ETFs). They take the guesswork out of investing, give you instant diversification, and allow small, consistent contributions to snowball into something meaningful over the years.

Investing $200 a month, for example, can grow into almost $150,000 over 20 years at a 10% average annual return. Double the contribution and you more than double the outcome. That’s the power of compounding.

But picking the right ASX ETFs matters. Some simply track the market, while others give you targeted exposure to high-quality stocks that have a track record of outperformance.

With that in mind, here are three funds that could quietly make you rich over time.

Betashares Australian Quality ETF (ASX: AQLT)

The Betashares Australian Quality ETF focuses on local stocks with strong balance sheets, reliable earnings, and resilient cash flows. These are the exact traits that investors want during uncertain periods. After all, quality as a factor has historically beaten the broader market because high-quality businesses tend to survive downturns better and grow faster in recoveries.

Current holdings include names like CSL Ltd (ASX: CSL), Wesfarmers Ltd (ASX: WES), and ResMed Inc. (ASX: RMD). These are stocks with deep competitive advantages, strong management teams, and long runways for growth.

For investors who want Australian exposure without relying heavily on the big banks or miners, this fund provides a cleaner, higher-quality way to compound wealth over time. It was named as one to consider buying by the team at Betashares.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF could be another top pick for buy and hold investors. It gives investors exposure to companies with wide economic moats. These are businesses with strong pricing power, loyal customers, high switching costs, or unique intellectual property.

Its portfolio includes global standouts such as Adobe (NASDAQ: ADBE), Walt Disney (NYSE: DIS), and Nike (NYSE: NKE). These companies aren’t just leaders in their industries, they dominate them.

In addition, it looks for these high-quality businesses that are good value and doesn’t pay over the odds to own them. This gives patient investors both growth potential and downside protection. That is the formula long-term wealth is built on.

iShares S&P 500 ETF (ASX: IVV)

It is hard to go past the iShares S&P 500 ETF. The US market has delivered decades of superior returns, fuelled by world-changing companies across technology, healthcare, consumer goods, and financials.

Through this ASX ETF, Australian investors get exposure to giants like Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), JPMorgan (NYSE: JPM), and Home Depot (NYSE: HD), all through a single ASX trade.

For investors with a long time horizon and a belief in the resilience of the US economy, it is one of the most straightforward ways to build wealth steadily.

The post 3 ASX ETFs that could quietly make you rich appeared first on The Motley Fool Australia.

More reading

• The ultimate ASX ETF portfolio for beginners in 2026
• How to invest your first $1,000 in the share market the smart way
• Could this undervalued ASX stock be your ticket to millionaire status?
• 3 high-quality ASX ETFs to buy in December
• Which of the most popular ASX ETFs has brought the best returns this year?

JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in CSL, Nike, ResMed, VanEck Morningstar Wide Moat ETF, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Apple, CSL, Home Depot, JPMorgan Chase, Microsoft, Nike, Nvidia, ResMed, Walt Disney, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft, long January 2028 $330 calls on Adobe, short January 2026 $405 calls on Microsoft, and short January 2028 $340 calls on Adobe. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Adobe, Apple, CSL, Microsoft, Nike, Nvidia, VanEck Morningstar Wide Moat ETF, Walt Disney, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I’m a big believer that long-term investing is the best way to think about putting money into ASX shares.

Allowing compounding to work its magic for a longer period of time is more likely to deliver good wealth-building.

There are not that many ASX share investments that I’d be willing to invest in today for the next decade. However, the two I’m about to highlight are ones I’ve invested my own money into with the intention of holding them for at least the next 10 years.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of the best software businesses on the ASX, in my view. The enterprise resource planning (ERP) technology it provides is used by businesses, government agencies, local councils and universities.

Its software is clearly resonating with subscribers because it has a very low customer loss rate each year and it regularly wins new subscribers.

The UK is a key market for future growth which, like Australia, has businesses, government agencies, local councils and universities. In FY25, it won key London boroughs of Islington and Greenwich from global incumbent competitors.

It is also winning subscribers in the education sector, including TasTAFE.

The business reports that customers continue to adopt more TechnologyOne products and modules as they embrace its “enterprise vision and the consequent substantial efficiencies and productivity gains.”

The ASX share is aiming to reach total annual recurring revenue (ARR) of $1 billion by FY30, compared to $554.6 million at the end of FY25. I think the ARR could rise even further beyond FY30.

It aims to deliver a net revenue retention (NRR) of 115% each year, implying 15% revenue growth from the existing client base each year. This level of growth helps the business double its revenue every five years.

TechnologyOne is also expecting to grow its profit before tax (PBT) margins in the coming years, despite investing heavily in research and development (R&D) to unlock more growth.

The TechnologyOne share price is valued at 51x FY27’s estimated earnings, according to the forecast on Commsec.

Guzman Y Gomez Ltd (ASX: GYG)

GYG is a Mexican food restaurant with big plans for how many locations it wants to have in the coming years.

At the end of the first quarter of FY26, it had 227 Australian restaurants, of which 84 were corporate and 143 were franchised. Excitingly, the business has a goal of reaching 1,000 Australian restaurants within 20 years.

The ASX share is expecting to open 32 new restaurants during FY26 in Australia and I’m expecting plenty more over the next decade.

In the coming years, the international division could also be an integral part of the company’s earnings and total network. At the end of the FY26 first quarter, it had 22 Singapore locations, five Japan restaurants and seven US locations.

GYG is growing sales strongly. The first quarter of FY26 saw 17.4% Australian network sales growth to $305.5 million, 29.2% Asian network sales growth to $20.8 million and 65.4% US network sales growth to $4.3 million.

With growing scale, I’m optimistic the business can deliver rising profit margins alongside the growing network sales.

According to the forecast on Commsec, the business is valued at 46x FY28’s estimated earnings, at the time of writing.

The post 2 ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

More reading

• How to build a $100,000 ASX share portfolio starting at zero
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• 2 ASX giants to buy for decades of growth and dividends
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• 3 explosive ASX ETFs to buy and hold

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

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The stock market hasn’t been the same since OpenAI unleashed ChatGPT to the public three years ago. As of Dec. 4, the S&P 500 (SNPINDEX: ^GSPC) market index has posted a 75% total return since then. The tech-heavy Nasdaq-100 index gained a dividend-adjusted 118% over the same period.

But the kings of artificial intelligence (AI) are soaring far above these not-so-pedestrian returns. AI chip champion Nvidia (NASDAQ: NVDA) is up more than tenfold and AI platform master Palantir Technologies (NASDAQ: PLTR) more than doubled Nvidia’s stellar gains:

PLTR Total Return Level data by YCharts

But past performance is never a guarantee of future results. What matters to today’s investors is a fundamentally different question — which AI stock is the better investment for new money today?

When AI valuations go orbital

Let’s address the elephant in the room, or the rocket ship in the stratosphere directly above Wall Street. Palantir’s stock has gone absolutely parabolic in 2025, trading at roughly 109 times trailing revenue. That triple-digit figure is not a typo. For context, even during the dot-com bubble’s wildest moments, most high-flyers topped out around 50 times sales.

Nvidia, meanwhile, has seen its valuation actually compress even as its business keeps breaking records. At about 24 times revenue, it’s still priced for perfection. However, compared to Palantir, Nvidia’s stock price looks almost reasonable.

Mind you, Nvidia is already absolutely massive and it should be harder to keep the hypergrowth going from an annual revenue base of $187 billion. Palantir’s trailing-12-month sales look minuscule in comparison, stopping at $3.9 billion. The law of large numbers says that Nvidia’s sales growth must slow down at some point. Meanwhile, Palantir’s long-term value is limited by its focus on the smaller market of government contracts. The company is pushing into commercial contracts too, but how many businesses need military-style data analytics?

The political cycle wild card

Palantir’s recent surge coincides suspiciously with a favorable shift in the federal spending environment. The company’s government revenue, while growing at a respectable 40% year over year, suddenly seems poised for acceleration as Washington embraces AI-powered defense and intelligence applications.

But here’s the risk nobody’s talking about: government contracts follow political cycles. What happens if spending priorities shift after the 2026 midterms? What if the regulatory environment becomes less friendly to aggressive data analytics? Palantir’s commercial business is growing faster at 54%, but government contracts still represent nearly half of revenue. That’s a lot of exposure to political winds that can change direction every two years (with sharper shifts around the four-year presidential election cycle).

Nvidia faces its own unique challenge — its biggest customers are becoming its biggest competitors. Amazon, Alphabet, and Microsoft are all developing custom AI chips while still buying billions worth of Nvidia’s GPUs. It’s like selling weapons to armies that are simultaneously building their own armories. Nvidia can maintain this delicate balance, but it requires constant innovation and careful relationship management.

“Less overvalued” wins by default

I can’t believe I’m writing this, but at current prices, Nvidia is the better buy — and that’s despite my concerns about customer competition and a still-rich valuation. Here’s why:

• Valuation sanity: OK, “sanity” is a stretch but at 24x sales vs. 109x, Nvidia’s premium is at least loosely grounded in financial reality.
• Proven moat: CUDA’s ecosystem lock-in is real and tested, while Palantir’s competitive advantages remain harder to quantify.
• Diversification: Nvidia sells to everyone in AI; Palantir’s concentration in government and large enterprises limits its addressable target market.
• Profit machine: Nvidia’s 57% net margin vs. Palantir’s 20% shows who’s actually printing money today.

But here’s the real takeaway: Both stocks are priced for a perfect AI future that may not materialize as smoothly as bulls expect. Palantir needs flawless execution and continued government AI spending to justify its valuation. Nvidia needs to fend off increasingly capable competitors while maintaining its innovation edge. Both might actually succeed in the long run, but it won’t be easy. 

For investors seeking AI exposure today, the smartest move might be looking elsewhere in the ecosystem — perhaps at the hyperscalers building AI services, semiconductor equipment makers enabling the whole industry, or even “boring” companies successfully implementing AI to improve their operations. Sometimes the best investment isn’t choosing between two expensive options — but finding a completely different third path.

So, if forced to pick between these two AI titans, I’d reluctantly choose Nvidia. But I reduced my Nvidia exposure in 2025, converting some of my AI-boom paper gains into cash profits.

My highest-conviction call in this duel is simple: Neither stock really offers a compelling risk/reward balance for new money at December 2025 prices. The AI revolution is real, but that doesn’t mean every AI stock is a buy at any price.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Better artificial intelligence stock: Palantir Technologies vs. Nvidia appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

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• How to invest your first $1,000 in the share market the smart way
• Prediction: This AI stock will be the most surprising winner of 2026
• 3 ASX ETFs I’d buy right now to build wealth
• Here’s why Nvidia still is a multimillionaire-maker

Anders Bylund has positions in Alphabet, Amazon, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Looking to buy a few, or even seven, ASX mining shares to slip into your Christmas stockings?

Then Macquarie Group Ltd (ASX: MQG) has some new stock upgrades for you.

In the broker’s latest Commodities Update report, it notes that for 2026:

In the short term (CY26) we are overweight Gold (Au) with a 22% increase to CY26 price to US$4,225/Oz; we are 8% above VA consensus. Our Spodumene prices are 15%/20% below consensus/spot for CY26, but we note our med-long prices are 15% above consensus.

We are even-weight (within 5% of consensus) on Iron Ore (Fe), Met-Coal, Aluminium (Al), Thermal Coal and Nickel (Ni) in CY26E, but note our Fe and Thermal outlooks weaken over time.

Here’s what that all boils down to for these seven upgraded ASX mining stocks.

From underperform to neutral

Two large-cap ASX mining shares just earned upgrades from an underperform rating to neutral.

The broker noted that Mineral Resources Ltd (ASX: MIN) shares were raised to neutral, with the diversified S&P/ASX 200 Index (ASX: XJO) miner seeing “large EPS changes in FY26/27 as iron ore and lithium prices are materially raised”.

With Macquarie’s bullish outlook on the gold price, ASX 200 gold stock West African Resources Ltd (ASX: WAF) also earned an upgrade to neutral.

Macquarie expects these five ASX mining shares to outperform

Turning to the Aussie mining stocks Macquarie expects to outperform in 2026, ASX 200 coal miner Whitehaven Coal Ltd (ASX: WHC) was raised from neutral to outperform.

Macquarie said:

WHC remains our preferred coal exposure, which benefits from an expanded earnings multiple from 4.0x to 5.0x due to a recent tightening of the spread against peers (BHP/RIO, etc).

In the diversified ASX mining share space, Macquarie said “We prefer Rio Tinto Ltd (ASX: RIO) to BHP Group Ltd (ASX: BHP) and prefer South32 Limited (ASX: S32) outright.”

The broker upgraded South32 to outperform “given prospects of an improved returns outlook and a favourable catalyst backdrop”.

And three ASX gold stocks join the outperforming list.

Macquarie raised Newmont Corp (ASX: NEM) to outperform, stating:

We switch our large-cap preference from NST to NEM, due to its relatively attractive valuation (P/NPV of 0.9x vs NST at 1.1x) and underperformance over the last three months with NEM +21% and NST +36%.

Ora Banda Mining Ltd (ASX: OBM) also earned an upgrade to outperform.

Macquarie noted:

We still expect gold to trade at historically high levels in the near-term while also being held back by an upturn in global growth and a monetary policy easing cycle that falls short of market expectations.

And stating, “we remain overweight gold”, Macquarie also raised ASX mining share Resolute Mining Ltd (ASX: RSG) to an outperform rating.

Happy Christmas stock shopping!

The post 7 ASX mining shares to buy for Christmas amid upgrades from Macquarie appeared first on The Motley Fool Australia.

More reading

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• After smashing 50 record highs in 2025, what’s ahead for the gold price and ASX gold shares like Northern Star in 2026?
• Why Andean Silver, Boss Energy, Chalice Mining, and Rio Tinto shares are falling today
• Should we be paying more attention to these two rocketing ASX small-cap mining stocks?
• BHP shares surge 8% on their way to reclaiming the No. 1 title from CBA

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.

There are lots of ASX dividend shares to choose from on the local market.

To narrow things down, let’s take a look at two that Bell Potter thinks are among the best to buy in December.

Here’s what the broker is saying about them:

Harvey Norman Holdings Ltd (ASX: HVN)

This leading household goods retailer could be one of the best ASX dividend shares to buy now according to Bell Potter.

It highlights that the company is one of the most diversified retailers in terms of both categories and regions, while also benefitting from its significant property portfolio. It commented:

Despite the strong re-rate in the name, HVN trades at ~2.0x market capitalisation to freehold property value as Australia’s single largest owner in large format retail with a global portfolio surpassing $4.5b and collectively owning ~40% of their stores (franchised in Australia and company operated offshore). This sees our view that of the 1-year forward ~19x P/E multiple as justified considering the multiple catalysts near/mid-term.

Bell Potter has a buy rating and $8.30 price target on its shares.

As for income, the broker is forecasting fully franked dividends of 30.9 cents per share in FY 2026 and then 35.3 cents per share in FY 2027. Based on its current share price of $7.32, this would mean dividend yields of 4.2% and 4.8%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share that has been rated as a best buy by Bell Potter is Universal Store.

It is a leading youth focused apparel, footwear, and accessories retailer with around ~85 stores under its flagship Universal Store brand. It is also expanding its presence with stand-alone formats for its private label brands Perfect Stranger and Thrills stores.

Bell Potter thinks its shares are undervalued, especially given its positive growth outlook. It said:

At ~18x FY26e P/E (BPe), we see UNI trading at a discount to the ASX300 peer group and see the multiple justified by the distinctive growth traits supporting consistent outperformance in a challenging category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution.

While catalysts associated with further interest rate cuts for Australia in CY25 are not imminent post the third rate cut in August, we continue to see the youth customer prioritising on-trend streetwear and expect UNI to benefit with their leading position.

The broker has a buy rating and $10.50 price target on its shares.

With respect to dividends, Bell Potter is forecasting fully franked payouts of 37.3 cents per share in FY 2026 and then 41.4 cents per share in FY 2027. Based on its current share price of $8.41, this would mean dividend yields of 4.4% and 4.9%, respectively.

The post 2 of the best ASX dividend shares to buy in December appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Harvey Norman. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I believe owning Coles Group Ltd (ASX: COL) shares is a great option for dividends because of both its consistently rising passive income and the size of the dividend yield.

On top of the pleasing dividend, Coles has a defensive earnings base – we all need to eat, of course.

The business has grown its dividend each year since it was listed several years ago, and we’re going to take a look at how large the dividend could grow in the coming years.

FY26

Coles has started FY26 strongly, in the first quarter of FY26, it delivered group total sales revenue of $10.96 billion, representing 3.9% growth – this beat UBS’ expectations.

Broker UBS said that Coles supermarkets are executing strongly and leveraging key investments.

Those investments include Witron automated distributed centres, which are improving product availability in NSW and Queensland. Ocado customer fulfilment centres (CFCs) helped drive 28% online sales growth in the FY26 first quarter.

UBS also pointed out that Coles supermarkets are delivering ongoing promotional effectiveness, which are fewer and better, and product ranging is better (which is increasingly store-led), according to UBS. Both of these advantages have been enabled by the supply chain.

With the effective execution of its strategy, UBS is projecting that the business could decide to pay an annual dividend per share of 79 cents following an increase of the company’s net profit.

If Coles does decide to pay that projected amount, it would mean a grossed-up dividend yield of 5.2%, including franking credits.

FY27

The company could see further dividend growth in the 2027 financial year, thanks to the strength of its revenue and net profit.

UBS is forecasting the business could grow its dividend to a pleasing 93 cents per share in FY27. If that comes true, it would translate into a grossed-up dividend yield of 6.1%, including franking credits, at the current Coles share price.  

FY28

The 2028 financial year could get even better for owners of Coles shares.

In FY28, the board of directors of Coles is projected by UBS to declare an annual dividend per share of 97 cents. If that happens, the business could have a grossed-up dividend yield of 6.3%.

FY29

The broker is projecting that the business could deliver more profit and dividend growth for investors in FY29. UBS is currently suggesting the Coles annual dividend per share could climb to $1.01.

If that happens, Coles would deliver investors a grossed-up dividend yield of 6.6%, including franking credits, using the valuation at the time of writing.

FY30

The final year of this series of projections is expected to see the biggest dividend of all.

UBS forecasts that Coles may deliver investors an annual dividend per share of $1.04. That means the business could provide a grossed-up dividend yield of 6.8%, including franking credits.

The post Here’s the dividend forecast out to 2030 for Coles shares appeared first on The Motley Fool Australia.

More reading

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• 3 ASX blue-chip shares I’d buy with $3,000 right now
• Brokers rate these 3 top ASX shares as buys in December
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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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a number of reasons why ASX blue-chip shares usually make strong investments each year. Stability, strong earnings generation each year and (usually) a good dividend yield together can be very appealing.

I wouldn’t focus purely on the dividend income. I think it’s a good idea for investors to ensure that the target business has a good outlook for earnings growth too, otherwise the dividends may not be reliable, with the share price lacking that organic tailwind.

The two ASX blue-chip shares I’m going to highlight both have strong dividend yields.

Telstra Group Ltd (ASX: TLS)

The Australian telecommunications giant is one of the most impressive names for payouts because of how generous it is with its dividend payout ratio. In recent times, it has paid out close to all of its net profit generation each year, though it has held onto a higher proportion of its cash earnings.

The company has invested significant sums into its spectrum assets and 5G network to ensure that it has the most appealing network for customers. More subscribers mean the business can spread its costs across more users.

We saw this effect in the FY25 result, with mobile revenue climbing 3% and operating profit (EBITDA) climbing 5%.

I’m expecting the company’s EBITDA and net profit margin to slowly rise over the rest of the decade. I’m particularly optimistic this can happen if Telstra can win more broadband customers onto its wireless (5G-powered) offering, which would enable a higher margin from that household (rather the margin going to the NBN).

I think it’s quite likely the ASX blue-chip share will hike its FY26 annual dividend to at least 20 cents per share, which could mean a grossed-up dividend yield of 5.8%, including franking credits. If it paid a dividend of 21 cents per share, it’d be a grossed-up dividend yield of 6%, including franking credits.

Charter Hall Long WALE REIT (ASX: CLW)

The other business I want to highlight for its yield is a real estate investment trust (REIT) that owns a diversified portfolio of properties which are, on average, long-term rental leases.

Charter Hall Long WALE REIT has a weighted average lease expiry (WALE) of around nine years, meaning its rental earnings are locked in for the long-term.

The business owns properties in a number of areas including service stations, hotels and pubs, telecommunication exchanges, data centres, distribution centres and more. I like that this lowers the risk of being too exposed to one subsector.

This REIT has lots of blue-chip tenants, which is one of the reasons why it’s able to provide investors with pleasing defensive earnings. Its rental income (on a per-property basis) is growing thanks to regular rental increases that are either fixed or linked to inflation, providing a tailwind or rental profits and the distribution.

Charter Hall Long WALE REIT is expecting to grow its FY26 distribution to 25.5 cents per security, translating into a forward distribution yield of 6.3% thanks to its 100% distribution payout ratio.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

More reading

• The smart way to make a $25,000 passive income from ASX shares
• Invested in Telstra shares? Here are the dividend dates for 2026
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• Brokers name 3 ASX dividend shares to buy in December
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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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Sigma Healthcare Ltd (ASX: SIG) share is slowly slipping toward this year’s record low of $2.74. Monday it lost another 2% to close at $2.79.

In 2025, the $33 billion dollar pharmacy group has lost 5.2% in value and in the past 6 months 10%. To put this in context, the S&P/ASX 200 Index (ASX: XJO) gained 5.4% this year.

The tumble has left some investors are asking: is Sigma Healthcare share a buy-the-dip opportunity?

Short-term headwinds

The slide in the Sigma Healthcare share reflects growing caution around short-term headwinds. Beneath the turbulence, Sigma remains a major player in Australian health care, and there are reasons to believe its long-term outlook still holds promise.

Sigma is a leading Australian pharmaceutical wholesaler and retail group, supplying medicines and healthcare goods to community pharmacies and operating brands such as Amcal, Discount Drug Stores, and Chemist Warehouse.

Rocketing integration expenses

So why has the price of the ASX healthcare share dropped? A major factor has been a steep increase in transaction and integration costs tied to its recent merger with Chemist Warehouse and restructuring efforts. The extra costs weighed on profitability, and the sharp focus on merger expenses put pressure on investor confidence.

Moreover, past operational missteps have left a mark. A poorly executed enterprise resource planning (ERP) rollout a couple of years ago disrupted supply chains. This triggered customer losses and prompted many pharmacies to re-contract with other wholesalers.

That dented market share and eroded trust in execution, forcing Sigma to restructure and simplify its business.

Powerful Chemist Warehouse synergies

Still, the Sigma Healthcare share also has solid strengths. The company’s recent merger with Chemist Warehouse has dramatically expanded Sigma’s scale, bringing together wholesale, distribution and retail under one roof. This model could deliver powerful synergies.

Additionally, the demographics underpinning demand remain favourable. An ageing population combined with rising demand for over the counter and health-related products gives the company a foundation for long-term stability.

On the flip side, risks remain. The steep integration and merger costs have dented earnings in the near term, making Sigma Healthcare shares vulnerable until those investments begin to pay off.

Is Sigma Healthcare share a buy, hold or sell?

Looking ahead, analysts offer a cautious but mixed picture. Some see value now that the shares are near recent lows, noting that the merger gives Sigma a shot at becoming Australia’s leading pharmacy-wholesale-retail group.

Broker’s recommendations span from strong buy to strong sell with an average target price over 12 months at $3.21, representing 15% upside.

UBS currently has a price target of $3.40, implying a potential gain of 18% over the next year. The broker is also expecting the company to pay an annual dividend of 4 cents per share in the 2026 financial year.

Ord Minnett has a buy recommendation on Sigma Healthcare.

The broker recently noted:

SIG has started strongly in fiscal year 2026, with Chemist Warehouse posting double-digit network sales growth and an upgraded synergies target. Furthermore, we continue to expect upside via the international rollout and private label strategies.

The post Is Sigma Healthcare share a healthy buy, after hitting new lows? appeared first on The Motley Fool Australia.

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• 2 top ASX 200 blue-chip shares worth a spot in your portfolio

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 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.

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index fell 0.1% to 8,624.4 points.

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

ASX 200 expected to fall again

The Australian share market looks set to fall on Tuesday following a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 30 points or 0.35% lower. In late trade in the United States, the Dow Jones is down 0.55%, the S&P 500 is 0.5% lower, and the Nasdaq has fallen 0.35%.

Oil prices fall

It could be a poor session for ASX 200 energy shares such as Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 2.1% to US$58.81 a barrel and the Brent crude oil price is down 2.1% to US$62.44 a barrel. This was driven by optimism over the Russia-Ukraine peace deal.

Reserve Bank meeting

All eyes will be on the Reserve Bank of Australia today when it makes a decision on Australian interest rates. According to the ASX 30 Day Interbank Cash Rate Futures December 2025 contract, the market is pricing in only a 3% chance of a rate cut at today’s meeting. The big question, though, is whether the central bank will give hints about whether the cuts are over and hikes are coming in 2026.

Hold Cobram shares

Cobram Estate Olives Ltd (ASX: CBO) shares are a fairly valued according to analysts at Bell Potter. This morning, the broker has reaffirmed its hold rating and $2.90 price target on the olive oil producer’s shares. It said: “There is no change to our Hold rating. While offering ~10% EPS CAGR to FY28e (on a R24M basis), CBO trades at ~32x FY26e EPS (R24MA basis). This multiple vs. growth equation does not stand out as relative value in the sector.”

Gold price falls

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 fell overnight. According to CNBC, the gold futures price is down 0.6% to US$4,216.7 an ounce. Traders appear cautious ahead of the US Federal Reserve’s interest rate decision this week.

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

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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.

ASX bank shares make up an important part of many investors’ portfolios. Surprisingly, it is ANZ Group Holdings (ASX: ANZ) that has brought the best returns amongst the big four banks this year. 

Since the start of the year ANZ shares have risen more than 22%.

For context, the S&P/ASX 200 BANKS (ASX: XBK) is up 8.7% in the same period. 

Why the strong rise?

In January, ANZ shares were trading at roughly $28 and hit a yearly high in November of almost $39. 

That’s an increase of more than 35%. 

This was driven by strong business credit, real estate credit growth and investor mortgage growth. 

However since then, the share price has slid almost 10%. 

Analysts at Macquarie indicate this could be due to early signs of revenue underperformance. 

Is there any upside left for ANZ shares?

After such a strong year, investors may feel they have missed the boat on ANZ shares. 

Sentiment is seemingly mixed amongst experts. 

Yesterday, The Motley Fool’s Samantha Menzies reported that Macquarie has neutral rating on ANZ shares with a target price of $35

This indicates the share price is hovering close to fair value. 

However, Greg Burke, Equity Strategist at Wilsons Advisor/Canaccord Genuity said in November that ANZ shares are comfortably the ‘best value’ bank on all key valuation metrics, while offering the most attractive yield.

ANZ has reset its cost base lower and has a strong capital position. ANZ’s 2030 strategy offers a clear pathway to a structurally lower cost-to-income ratio, an improved ROE, and growth in dividends over time. Recent EPS revisions momentum is another relative appeal vs CBA and NAB.

The sentiment out of the Canaccord Genuity Group last month was that outside of CBA shares, valuations in ASX bank shares are more reasonable. 

When excluding index heavyweight CBA, valuations are more reasonable – especially relative to a fully priced ASX 200. 

On average, the Big 4 ex-CBA trade at a modest discount to the market and sit within their historical relative P/E range (vs the ASX 200), albeit towards the upper end. This suggests bank sector valuations are elevated, but not extreme, outside of CBA.

How have the other big four banks performed?

After a bull run to start the year, Commonwealth Bank of Australia (ASX: CBA) shares have cooled off considerably. 

Australia’s largest bank is now relatively flat across 2025, up just 1.2%. 

National Australia Bank Limited (ASX: NAB) has performed better than CBA, rising approximately 9% since the start of the year. 

The second best performing big four bank share this year has been Westpac Banking Corporation (ASX: WBC). 

Westpac shares have risen 18%. 

The post Up 22% in a year! The red-hot ANZ share price is smashing CBA, Westpac and NAB shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in National Australia Bank. 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.