Most Aussie investors are on the hunt for ASX 200 shares that will soar in value. But when it comes to my kids, I'm not chasing the next big winner.
I want them to hold good quality ASX shares that can stand the test of time. That's high-quality businesses with strong fundamentals, a competitive advantage and maybe even a steady passive income.
Here are the ASX 200 shares I'd be happy for my kids to own for the next 20 years.
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Wesfarmers Ltd (ASX: WES)
Wesfarmers is a premier blue-chip Australian stock with a well-established and financially sound history of reliable growth and stability.
The retail giant has a huge and highly diversified exposure across multiple industries and sectors. It owns and operates major everyday brands including Bunnings, Kmart, Target, and Officeworks. It also has operations across health and wellbeing, industrials, chemicals, energy, and even more.
Over the past 12 months, the ASX 200 shares have climbed around 1% to $89.50 at the time of writing.
But quick returns aren't my goal. Wesfarmers may not be a growth stock, but it generally and steadily trends upward over time. And a company of this size isn't going anywhere.
The best part is that, thanks to its sheer size and market dominance, it has been able to pay its shareholders a regular fully-franked dividend dating back to 2004.
The conglomerate most recently paid its shareholders a fully-franked interim dividend of $1.02 per share in March. And as the company's earnings climb, its payout is expected to rise too. Wesfarmers is expected to pay an annual $2.13 dividend per share for FY26. Based on the current share price, that translates to a forward dividend yield of around 2.4% for FY26.
Origin Energy Ltd (ASX: ORG)
Unlike Wesfarmers, Origin is a defensive stock. This means the company is generally resilient to sharemarket volatility and global uncertainty. After all, energy is an essential service. People won't stop powering their homes because the purse strings have tightened. Australians will always need power.
And Origin's assets operate under long-term contracts, often with rising income, which gives it another strong defensive quality.
The ASX 200 company's shares are a great option for passive income because they generate substantial cash flows, especially when energy prices are elevated. This means Origin can then pay high yields to shareholders.
In the first half of FY26, Origin Energy paid its investors 30 cents per share, fully franked. The business is forecast to pay an annual 61 cent per share dividend for FY26. Using the $10.91 share price at the time of writing, this translates to a forward yield of around 5.6%, including franking credits, at the time of writing.
TechnologyOne Ltd (ASX: TNE)
TechnologyOne is an entirely different type of ASX 200 stock again. It's not cyclical or defensive, but it's shares do have the potential to give strong growth and good compounding benefits over the long term.
The business is aggressively expanding and is heavily focused on growing its Software-as-a-Service (SaaS) annual recurring revenue and scaling its enterprise solutions internationally.
The company provides enterprise software to customers which include councils, universities, government agencies, and large businesses. It also has a cloud-based software model which generates recurring revenue. It has a sticky subscriber base because, once customers adopt its software, switching is costly and disruptive.
The ASX 200 business also has the potential for a long runway for growth as more customers migrate to its platform.
What's better is that it looks like TechnologyOne is one of few tech companies which actually benefits from (AI) product development, rather than challenging it.
The company pays a small dividend to its shareholders too, dating back to 2004. It most recently paid an interim 8 cents per unit dividend, 75% franked, in June. Using the $33.12 share price at the time of writing, that implies a yield of around 0.5%.
