Telstra Group Ltd (ASX: TLS) and Woodside Energy Group Ltd (ASX: WDS) shares have both been strong investments to hold in 2026.
Currently trading for $5.37, Telstra shares are up 10.2% year to date. And that's not including the 10.5 cent per share partly franked dividend the S&P/ASX 200 Index (ASX: XJO) telco paid eligible stockholders on 27 March.
Woodside shares have enjoyed an even stronger run of late. At time of writing on Monday, shares in the ASX 200 oil and gas giant are changing hands for $30.90 each, up 30.6% this calendar year.
Atop those capital gains, Woodside also paid out a fully franked 83.5 cent per share dividend on 27 March.
To put this performance in perspective, the ASX 200 is down 0.4% so far in 2026.
But following on this strong run, and with market dynamics potentially becoming more difficult, Shaw and Partners' Jed Richards believes the time has come to sell both of these blue-chip ASX stocks (courtesy of The Bull).
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Time to take profits on Woodside shares?
"Woodside has benefited from elevated oil and gas prices driven by geopolitical tensions in the Middle East," Richards said. "However, in our view, the share price strength appears largely macro driven rather than based on underlying company improvements."
Indeed, the Brent crude oil spiked from US$72 per barrel on 27 February, the day prior to the onset of the Iran war, to trade at more than US$118 per barrel on 29 April. Brent crude is currently fetching US$99 per barrel amid hopes that a peace deal is within reach.
Summarising his sell recommendation on Woodside shares, Richards said:
Given Middle East tensions are expected to ease over time, energy prices could soften and reduce earnings support. The stock now appears fully valued.
In response to share price gains, it makes sense to lock in profits and re-allocate the proceeds to opportunities with stronger growth outlooks.
Are Telstra shares a sell?
Atop recommending exiting Woodside shares, Richards also believes Telstra shares could struggle to outperform over the coming months following its recent run higher.
"Telstra is currently trading at elevated levels, in our view, with its defensive appeal pushing the share price higher," he said. "However, underlying growth remains limited, and the dividend yield is becoming less attractive as the share price rises."
Telstra shares currently trade on a 3.7% partly franked trailing dividend yield.
Explaining his sell recommendation, Richards concluded:
Recent updates show steady but low growth across its core business segments, according to our analysis. Valuations are now stretched and the risk-reward balance is less compelling.
The shares have risen from $3.89 on February 10, 2025 to trade at $5.45 on May 21, 2026. We would be inclined to take a profit at these levels.
