The good news is that ASX exchange traded funds (ETFs) can be a simple and effective way to do this. Some provide diversification, regular distributions, and exposure to income-producing assets without the need to pick individual stocks.

With that in mind, here are three ASX ETFs that could be excellent options for income-focused investors.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first ASX ETF that income investors may want to consider is the Vanguard Australian Shares High Yield ETF.

This fund focuses on high-dividend-paying ASX shares, many of which are household names. It typically includes exposure to major banks like Westpac Banking Corporation (ASX: WBC), miners like BHP Group Ltd (ASX: BHP), and other established businesses with strong cash flows.

One of the key attractions of the fund is its income potential. The Australian market is well known for its generous dividends, and this ETF captures that effectively.

On top of this, many of the dividends are fully franked, which can enhance after-tax returns for local investors.

While there will still be some volatility, the Vanguard Australian Shares High Yield ETF offers a straightforward way to build a core income position with exposure to reliable dividend payers.

BetaShares Global Royalties ETF (ASX: ROYL)

Another ASX ETF that could be worth considering is the BetaShares Global Royalties ETF.

This fund takes a very different approach to income. Instead of relying on traditional dividends, it invests in companies that earn royalties.

These businesses generate revenue by taking a percentage of sales from assets such as natural resources, intellectual property, and infrastructure. This can lead to highly predictable and scalable income streams.

Because royalty companies often have lower operating costs and limited capital requirements, a larger portion of their revenue can be returned to investors.

This makes the BetaShares Global Royalties ETF an interesting option for those looking to diversify their income sources beyond traditional sectors like banks and utilities.

It was recently recommended by an analyst, as we covered here.

BetaShares S&P Australian Shares High Yield ETF (ASX: HYLD)

A third ASX ETF that income investors could consider is the BetaShares S&P Australian Shares High Yield ETF.

This fund focuses on Australian companies with high dividend yields, providing exposure to a broad range of income-generating businesses across the local market.

This includes sectors such as financials, resources, and industrials, which have historically been strong dividend payers.

What makes the BetaShares S&P Australian Shares High Yield ETF appealing is its focus on maximising yield while maintaining diversification. It complements the Vanguard Australian Shares High Yield ETF by offering an alternative approach to capturing income from the Australian share market.

For investors seeking to build a portfolio centred on dividends, this ASX ETF could play an important supporting role.

This fund was recently recommended by analysts at BetaShares.

The post 3 excellent ASX ETFs for income investors to buy appeared first on The Motley Fool Australia.

But here's the truth: your first investments don't need to be complicated.

What you want are businesses that are easy to understand, financially strong, and spread across different sectors. That way, you're building a solid foundation from day one.

Here are five ASX heavyweights that tick those boxes.

Commonwealth Bank of Australia (ASX: CBA)

If you want simplicity, start with a bank.

Commonwealth Bank is Australia's largest bank and a dominant force in mortgages and retail banking. It generates consistent profits, pays reliable dividends, and benefits from its scale and brand strength.

It's not the fastest grower, but it's steady. For beginners, that stability can be invaluable.

CSL Ltd (ASX: CSL)

CSL gives you exposure to global healthcare, a sector with long-term tailwinds.

The company develops and delivers life-saving therapies, with operations spanning the world. It's a high-quality business with strong margins and a history of growth.

This ASX healthcare share can be volatile at times, but its long-term track record speaks for itself.

Wesfarmers Ltd (ASX: WES)

ASX share Wesfarmers is all about diversification.

From Bunnings to Kmart and Officeworks, this ASX share owns a portfolio of well-known retail and industrial businesses. That mix helps smooth earnings and reduces reliance on any single segment.

It's a simple way to get exposure to multiple parts of the economy in one stock.

BHP Group Ltd (ASX: BHP)

Want exposure to global resources? This $275 billion ASX share is the go-to.

As one of the world's largest miners, BHP produces essential commodities like iron ore and copper. These materials underpin infrastructure, construction, and the energy transition.

It's cyclical, meaning earnings can rise and fall with commodity prices, but over time, it has delivered strong returns and dividends.

Transurban Group (ASX: TCL)

For something more defensive, Transurban offers a different angle.

It owns and operates toll roads across Australia and North America. These assets generate steady, predictable cash flow as people continue to commute and transport goods.

That makes it appealing for investors seeking more stability and income.

Foolish Takeaway

These five ASX shares won't all shoot the lights out overnight.

But that's not the point. They're established, resilient, and operate across banking, healthcare, retail, resources, and infrastructure. Together, they offer a strong starting mix for any new investor.

Because when you're just starting out, building a solid base matters far more than chasing the next big thing.

The post Just starting out? These 5 ASX shares could be the perfect first buy appeared first on The Motley Fool Australia.

The latest uptick means the shares are now up 32% for the year-to-date and have soared an impressive 67% higher over the past 12 months.

ASX 200 mining shares went on a rollercoaster ride over the March quarter. Commodity prices rocketed in January, sending South32 higher. In fact, South32 was one of the best performers on the ASX 200 index in January. 

The miner benefited from a perfect storm of strong central bank buying, falling US interest rates, and dwindling expectations for the US dollar. These all drove investors to safe-haven commodities like gold, silver, and copper. 

But it all changed when the war between the US and Iran escalated in late-February. An injection of fear about rising oil prices, energy costs, and supply quickly cooled the mining sector in March. 

While most ASX mining shares have since recovered some of their losses, South32 is streaking ahead. Compared to its mining peers BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO) and Fortescue Ltd (ASX: FMG), South32 shares have outperformed over the past month, year-to-date and past 12 months.

Why is the South32 share price racing ahead?

South32 mines and produces commodities, including bauxite, aluminium, copper, silver, lead, zinc, nickel, manganese, and metallurgical coal, so it has been well-positioned to absorb the uptick in demand across several minerals and metals.

Unlike BHP, Rio Tinto, and Fortescue, it is not heavily tied to iron or and benefits from diversity across other metals and minerals. 

Because of this diversity, the miner has been able to post some strong financial results, solid production figures and shown it has great momentum.

In January, the miner announced that it had exceeded expectations for first-half production. Alumina production was up 3% in the first half. Meanwhile, aluminium production was up 2%, zinc up 13%, and manganese up 58%. Overall, the company's results were ahead of consensus. 

Later in February the diversified miner reported a 29% jump in profit and 16% increase in underlying earnings.

Can the shares keep climbing?

If this momentum continues, alongside a continued uptick of commodity demand and prices, I think the South32 share price could continue to outpace BHP, Rio Tinto and Fortescue in 2026.

TradingView data shows that the majority of brokers (12 out of 16) have a buy or strong buy rating on South32 shares. Another three have a hold rating and one rates the shares as a sell.

The average target price of $4.93 implies a potential 6% upside at the time of writing. But some brokers are more bullish and are tipping the share price to jump another 18% to $5.51.

The post Up 67% in a year! The red-hot South32 share price is smashing BHP, Rio and Fortescue appeared first on The Motley Fool Australia.

Over the past three weeks, BHP shares have clawed its way back to $53.98 at the time of writing, capping off a remarkable 52% gain over the past 12 months.

So, has the easy money already been made? Or is there still an opportunity for investors willing to dig deeper?

Let's start with the positives — and there are plenty.

Exposure to copper

BHP remains one of the world's lowest-cost producers. That's a huge advantage in a sector where margins can swing wildly. When commodity prices fall, high-cost operators feel the squeeze first. BHP, by contrast, has the scale and efficiency to stay profitable through the cycle.

Then there's its exposure to future-facing commodities. Copper, in particular, stands out. As electrification accelerates and the global energy transition gathers pace, demand for copper is expected to surge. The mining giant is well positioned to benefit from that structural tailwind.

Layer on a strong balance sheet and reliable cash generation, and it's clear why BHP continues to appeal to long-term investors. This is a business built to endure — and potentially thrive — through volatility.

Highly reliant on China

But let's not ignore the risks.

BHP is deeply cyclical. Its fortunes are closely tied to global growth and especially to China. If economic activity slows or Chinese demand weakens, commodity prices could slide further. That would put pressure on earnings and, by extension, the BHP share price.

There are also external pressures to watch. Geopolitical tensions, fluctuating energy costs, and rising labour expenses all have the potential to chip away at margins.

What do the experts think?

According to TradingView data, sentiment is mixed but still leans cautiously positive. Eleven analysts currently rate BHP shares as a hold, while seven have buy or strong buy recommendations. Two analysts sit on the bearish side with sell ratings.

The average 12-month price target comes in at $52.44, slightly below current levels. That implies a modest 2.9% downside. That suggests the market sees limited short-term upside after the recent rebound.

However, the bulls aren't backing down. The most optimistic forecast tips BHP shares could climb to $65.82, representing a potential gain of around 22% from here.

Meanwhile, analysts at Morgans round out the picture with a hold rating of their own. They remain positive on the company's long-term outlook but aren't quite convinced it's a screaming buy right now.

BHP is a diversified mining company producing iron ore, copper, nickel, metallurgical coal and potash. First half revenue in fiscal year 2026 grew 11 per cent on the prior corresponding period and profit after tax was up 28 per cent. The fully franked interim dividend of US73 cents a share was up 46 per cent and ahead of consensus. BHP's fundamentals position it to play a recovery in China's subdued growth. Capital expenditure cycles and copper growth provide a compelling reason to retain BHP as a core position in portfolios.

Foolish Takeaway

BHP shares may have pulled back from their highs, but the core investment case remains intact. For investors willing to ride out the commodity cycle, this could be a dip worth watching closely, even if patience is required.

The post Missed BHP shares' massive run? Here's what could happen next appeared first on The Motley Fool Australia.

These are not the only opportunities in the market, but they are two I could have on my shopping list next week.

BHP Group Ltd (ASX: BHP)

BHP is one of those businesses that I think could play an important role in a long-term portfolio.

What stands out to me is its exposure to future-facing commodities.

Copper, in particular, is becoming increasingly important. Electrification, renewable energy, and infrastructure investment all rely heavily on it. If those trends continue, I think demand for copper could remain strong for many years.

That matters because copper is now a major earnings driver for BHP, not just a side business.

On top of that, the company still benefits from its iron ore operations, which continue to generate significant cash flow. While iron ore prices can be volatile, this part of the business provides the financial strength that allows BHP to invest in future growth.

The Jansen potash project is another piece of that story. It adds exposure to global agriculture, which is supported by long-term trends like population growth and food demand. It is not something that will drive earnings overnight, but over time it could become a meaningful contributor.

I also think it is important not to overlook the income side. BHP's dividends can help smooth returns during weaker periods, which is valuable when markets are uncertain.

For me, it is that combination of current cash flow, future-facing commodities, and income that makes BHP appealing.

DroneShield Ltd (ASX: DRO)

DroneShield sits at the other end of the spectrum. This is a higher-growth, higher-volatility business operating in an emerging industry, and it is likely to behave very differently to a company like BHP.

What I find compelling is the direction of travel. The use of drones is increasing rapidly, both in military and civilian settings. That creates a growing need for technologies that can detect, track, and respond to those threats.

DroneShield is positioned directly within that theme.

I think this is an area that is still developing. Governments and organisations are only just beginning to build out their counter-drone capabilities, which suggests the opportunity could expand over time.

Of course, it will not be a smooth journey. Revenue can be lumpy, contracts can take time to materialise, and sentiment can shift quickly. That is part of investing in an emerging growth company.

But for me, that is also where the upside can come from.

If the company continues to win contracts and scale its technology, I think there is potential for strong growth over the long term.

Foolish takeaway

BHP and DroneShield are very different businesses, and I think that is part of the appeal.

One offers scale, cash flow, and exposure to global commodities. The other provides access to a developing technology theme with significant growth potential.

For me, it is not about choosing one over the other. It is about recognising that both can play a role, depending on how you think about risk, time horizon, and long-term opportunity.

The post Why I'd buy BHP and DroneShield shares next week appeared first on The Motley Fool Australia.

But dividend investing is not just about income. When done well, it can also be a powerful way to build wealth over time.

More than just passive income

At its simplest, dividend investing involves buying shares in companies that return a portion of their profits to shareholders.

This income can be used to fund lifestyle expenses or, importantly, reinvested to accelerate portfolio growth.

That reinvestment is where things get interesting. By using dividends to buy more ASX shares, investors can benefit from compounding. Over time, this can lead to a snowball effect, where both capital and income grow together.

The power of reliability

One of the key advantages of dividend investing is the focus on established, profitable businesses.

Companies that consistently pay dividends are often those with strong cash flows, resilient business models, and disciplined management teams. These characteristics can make them more stable during periods of market volatility.

In Australia, sectors such as banking, supermarkets, infrastructure, and telecommunications have traditionally been strong dividend payers. These businesses provide essential services, which helps support earnings even when economic conditions are challenging.

Franking credits

A unique feature of dividend investing in Australia is the benefit of franking credits.

Fully franked dividends come with a tax credit for the corporate tax already paid by the company. For many investors, particularly retirees, this can significantly increase the effective yield of their investments.

This system makes Australian dividend shares especially attractive compared to international markets, where similar tax advantages may not exist.

Not all dividends are created equal

While high dividend yields can be tempting, they are not always a sign of quality.

In some cases, an unusually high dividend yield may reflect underlying problems within a company. If earnings are under pressure, dividends may be cut, which can also lead to share price declines.

That is why it is important to look beyond the headline yield. Factors such as payout ratios, earnings growth, and balance sheet strength can provide a better indication of whether a dividend is sustainable.

Balancing income and growth

A common misconception is that dividend investing means sacrificing growth. In reality, many of the best dividend-paying companies also deliver steady earnings expansion over time.

This creates a powerful combination. Investors receive regular income while also benefiting from capital appreciation.

By blending reliable dividend payers with companies that have the potential to grow their distributions over time, it is possible to build a portfolio that supports both current income and future wealth.

A long-term strategy

Like any investment approach, dividend investing requires patience.

Markets will fluctuate, and dividend payments may vary from year to year. But over the long run, owning high-quality businesses that generate consistent cash flow can provide both stability and growth.

For investors seeking a straightforward and proven way to build wealth, dividend investing remains a strategy well worth considering.

The post Why ASX dividend investing still works for building long-term wealth appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed yesterday trading for $54.56. In late morning trade on Friday, shares are swapping hands for $54.11 each, down 0.8%.

For some context, the ASX 200 is down 0.5% at this same time.

That's today's price action for you.

Now, here's how the Aussie mining giant is tapping into the artificial intelligence (AI) revolution to help streamline its operations and boost annual revenue.

How AI is helping support BHP shares

The rapid advancement of AI is transforming businesses around the world.

And BHP is no exception.

Among the unique ways that the technology is helping to support BHP shares is by keeping a virtual eye on the feedstock zooming along BHP's conveyor belts and into the miner's crushers.

While cameras have long been employed to try to spot oversized or otherwise unsuitable rocks from breaking a conveyor belt of jamming a crusher, AI is taking things to the next level.

As The Australian Financial Review reports, BHP has already installed dozens of cameras to watch over its iron ore carrying conveyor belts and crushers, with around 50 intended to be in place by July.

"Tearing a conveyor or blocking a crusher, that is two of our highest consequence, highest risk things from a safety perspective," BHP chief technical officer Johan van Jaarsveld said.

According to van Jaarsveld (quoted by the AFR):

We try to run WA iron ore as close to 100% capacity as possible, so every time you break down, you are losing tonnes that could have been on a ship.

It is watching a video feed, and it can, in a split second, recognise when something is off. It takes about 40 metres or 50 metres to stop the conveyor belt, so the quicker you can make that decision to get the object off, or to intervene, [the better].

As for the impact on BHP shares, van Jaarsveld estimated that the improved early detection of unsuitable ore has already increased the miner's iron ore revenue by some $50 million over the past year.

And those saving are likely to increase over time.

He noted:

Over time, it can obviously get smarter as things get detected, and it learns what is working and what is not working. That recognition and decision time has been brought down significantly from what it was 10 or 15 years ago.

Van Jaarsveld added that this deployment of AI technology hasn't seen BHP reduce its workforce.

"We haven't seen this really reduce the number of people … and generally on the technology side, it tends to add some roles.," he said.

With today's intraday dip factored in, BHP shares remain up 50.5% since this time last year, not including dividends.

The post Buying BHP shares? Here's how AI is boosting the mining giant's revenue appeared first on The Motley Fool Australia.

What did Monadelphous report?

• New contracts and extensions valued at around $145 million in total
• Secured a Rio Tinto construction project at Paraburdoo iron ore mine in WA
• Two-year extension to Olympic Dam maintenance contract with BHP in SA
• Two-year extension and expanded scope at Queensland Alumina Limited in QLD
• New construction contract with Harmony Gold at Hidden Valley Gold Mine, PNG

What else do investors need to know?

Monadelphous' work for Rio Tinto at Paraburdoo involves installing a new dust collector and ventilation system for coarse ore stockpile tunnels, with completion expected in early 2027. The company's relationship with BHP has also been extended, covering mechanical and electrical maintenance, planned shutdowns, and project services at Olympic Dam.

At Queensland Alumina in Gladstone, Monadelphous has secured both a contract extension and expanded responsibilities, now including demolition and power generation activities. The company's expertise in the sector is reinforced by more than 30 years of service at this site.

What's next for Monadelphous?

Looking ahead, Monadelphous plans to deliver on these newly awarded and extended contracts while continuing to grow its presence in resources, energy, and infrastructure markets. The company remains focused on leveraging its long-standing client relationships and diversified capabilities to pursue further opportunities, both domestically and internationally.

Monadelphous share price snapshot

Over the past 12 months, Monadelphous shares have risen 100%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 16% over the same period.

View Original Announcement

The post Monadelphous wins $145m of new and renewed resources sector contracts appeared first on The Motley Fool Australia.

The S&P/ASX 200 Materials Index (ASX: XMJ) tumbled 21% between 27 February and 23 March before a sharp recovery began.

Since then, materials shares have jumped 18% as investors refocus on the positive long-term outlook for Australian mining.

Meantime on The Bull this week, experts have revealed their ratings on three ASX 200 mining shares.

Let's take a look.

BHP Group Ltd (ASX: BHP)

The BHP share price closed at $54.56 on Thursday, up 0.06%.

The market's largest ASX 200 mining share is 59% higher over 12 months.

However, strong momentum was not enough to keep BHP shares immune from the Iran war sell-off.

The BHP share price dropped from a record high of $59.39 on 3 March to a low of $46.06 on 23 March.

With BHP stock now rebounding, Michael Gable from Fairmont Equities gives it a hold rating.

The commodities bull market has only just started, in my view.

As a global mining giant, BHP generally appeals to investors looking to increase exposure in the resources sector.

BHP's share price has retreated to a major support level since the start of the war in Iran.

I'm confident the stock should bounce from these levels.

BHP's diversification makes it a safer bet for investors to ride the commodities bull market.

Capstone Copper Corp CDI (ASX: CSC)

Capstone Copper shares finished yesterday's session at $12.10, down 2.81%.

The ASX 200 copper mining share has almost doubled over the past 12 months, up 97%.

Mitch Belichovski from Morgans Financial has a buy rating on Capstone Copper shares.

Belichovski said:

CSC is one of a limited number of pure play copper names listed on the ASX.

Copper production growth differentiates CSC from its peers.

Growth is driven by a combination of near term and longer dated brownfield and greenfield projects, alongside a declining cost profile.

CSC was recently trading on a modest price-earnings ratio in 2026 and offers good value at these price levels.

South32 Ltd (ASX: S32)

The South32 share price closed at $4.58 yesterday, up 0.22%.

Mark Elzayed from Investor Pulse has a hold rating on South32 shares.

He said South32 was navigating a complex portfolio transition along with operational challenges.

He noted that the company put an aluminium smelter in Mozambique into care and maintenance last month.

However, Elzayed said South32's 1H FY26 results were encouraging.

Underlying EBITDA of $US1.1 billion was up 9 per cent on the prior corresponding period.

Underlying earnings of $US435 million grew 16 per cent, supported by higher base and precious metals prices.

Copper and zinc production remained strong, highlighted by a 28 per cent increase in underground ore reserves at Cannington.

The ASX 200 mining share has soared 43% over six months and is 28% higher in the year to date.

He concluded:

From a valuation and technical standpoint, we see S32 as fairly valued following a strong rally earlier this year.

The stock is consolidating, with technical indicators appearing neutral, and we view it as a wait and see opportunity.

The post Buy, hold, or sell? South32, Capstone Copper, and BHP shares appeared first on The Motley Fool Australia.

In afternoon trade on Wednesday, the ASX 200 is up 2.6% as investors digest news of a two-week ceasefire in the Iran war.

And the copper miners are charging ahead of those gains. That's because a resolution in the Middle East conflict would reduce the forecast pressure on global growth and, accordingly, increase forecast demand for crucial industrial metals like copper.

Indeed, since the outbreak of the war at the end of February, the copper price has fallen by almost 8% to US$12,313 per tonne. Mind you, that's still up 41% since this time last year.

And with investors hopeful that the war could be nearing an end, here's how these three leading ASX 200 copper stocks are tracking today and over the past 12 months:

• BHP Group Ltd (ASX: BHP) shares are up 3.6% today at $54.84 and up 55.0% in 12 months
• Sandfire Resources Ltd (ASX: SFR) shares are up 10.5% today at $18.26 and up 108.3% in 12 months
• Capstone Copper Corp (ASX: CSC) shares are up 9.2% today at $12.46 and up 85.4% in 12 months

While Sandfire Resources and Canadian-based Capstone Copper are relatively pure play copper stocks, you may be surprised to see BHP shares on this list.

But when BHP reported its half-year results (H1 FY 2026) in February, investors learned that at US$8 billion, copper contributed more than half the miner's earnings for the six months, surpassing iron ore for the first time.

For the full 2026 financial year, BHP expects to produce between 1.9 million and 2.0 million tonnes of the red metal.

ASX 200 copper stocks facing 'near-term risks'

When it comes to the US and Israeli war with Iran, investors would do well not to be overly exuberant amid the early ceasefire news.

"Investors shouldn't mistake this pause for a resolution," eToro market analyst Josh Gilbert said.

"A two-week ceasefire window is welcome news for risk assets broadly, but the reality is we've seen patterns like this before, and the underlying uncertainty can persist," he added.

And ASX 200 copper stocks like BHP and Sandfire could prove particularly vulnerable to a prolonged conflict in the Middle East.

That's according to the analysts at Goldman Sachs, who warn of potentially slumping global demand for the red metal, should the war persist (courtesy of The Australian Financial Review).

According to Goldman Sachs:

We see the near-term risks as skewed to the downside if strait flows remain disrupted for longer than our base case, which would keep energy prices higher for longer and likely slow global economic growth.

And the big one-year share price gains posted by BHP and its rival ASX 200 copper stocks may have been partly driven by overvalued global copper prices.

Goldman Sachs noted:

The copper price continues to trade well above our 2026 fair value estimate of about US$11,100 … which would fall below US$11,000 under our economists' severely adverse scenario of a 1.2 percentage point hit to global GDP growth from the energy price spike.

Our fair value estimate takes into account price support from the ex-US market balance and adds a 25% probability of broad strategic copper stockpiling. This means that the copper price is not being supported at the current level by fundamentals, making it vulnerable to another move lower should the economic outlook deteriorate and investors de-risk.

Stay tuned!

The post Why surging ASX 200 copper stocks like Sandfire and BHP shares are 'vulnerable' appeared first on The Motley Fool Australia.

But after rising 50% over the past 12 months, is it too late to invest in the mining giant?

Let's see what three analysts are saying courtesy of The Bull. Here's what you need to know:

What are analysts saying about BHP shares?

Fairmont Equities currently rates BHP as a hold.

Although it believes the commodities bull market is only just beginning and sees BHP as a safe bet, it appears to be waiting for a more attractive entry point. It said:

The commodities bull market has only just started, in my view. As a global mining giant, BHP generally appeals to investors looking to increase exposure in the resources sector. BHP's share price has retreated to a major support level since the start of the war in Iran. I'm confident the stock should bounce from these levels. BHP's diversification makes it a safer bet for investors to ride the commodities bull market.

What else?

Over at Investor Pulse, its team also rates BHP shares as a hold this week.

It highlights that the Big Australian is currently trading in line with historical enterprise value-to-earnings multiples. As a result, investors may want to wait for a pullback before opening up a position. It said:

The company remains a global resources powerhouse, increasingly focused on future-facing commodities, such as copper and potash. The first half result in fiscal year 2026 highlights a robust performance across its portfolio. Iron ore continues to deliver strong cash flow, but copper has become the standout performer, contributing about 51 per cent of total earnings.

Copper production guidance has been upgraded to between 1.9 million tonnes and 2 million tonnes following record output at its Escondida operation and various South Australian assets. Valuation metrics indicate that BHP was recently trading in line with historical enterprise value-to-earnings multiples, reflecting solid fundamentals and current commodity price expectations.

Finally, analysts at Morgans complete the trifecta and also rate BHP shares as a hold this week.

While very positive on the mining giant, it isn't quite enough for a buy rating at this stage. The broker said:

BHP is a diversified mining company producing iron ore, copper, nickel, metallurgical coal and potash. First half revenue in fiscal year 2026 grew 11 per cent on the prior corresponding period and profit after tax was up 28 per cent. The fully franked interim dividend of US73 cents a share was up 46 per cent and ahead of consensus. BHP's fundamentals position it to play a recovery in China's subdued growth. Capital expenditure cycles and copper growth provide a compelling reason to retain BHP as a core position in portfolios.

The post 3 analysts give their verdict on BHP shares appeared first on The Motley Fool Australia.

Nine of the 11 ASX 200 market sectors are higher, with tech shares in the lead, up 4%, followed by materials, up 2.1%.

It appears investors are looking for value after a prolonged tech sector downturn and a sell-off in mining shares last month.

Here are three ASX 200 shares with buy recommendations from the experts.

All three are the leading stocks of their respective sectors by market capitalisation.

CSL Ltd (ASX: CSL)

CSL is the largest ASX 200 healthcare share with a market cap of $67.4 billion.

Healthcare shares have been in a sector rout due to currency changes, US tariffs, and higher labour and cost pressures.

The S&P/ASX 200 Health Care Index (ASX: XHJ) has fallen 27% over six months.

On Tuesday, the CSL share price is $140.82, up 1.4%.

CSL shares have halved in value over the past two years, and recently hit an eight-year low of $133.35.

Disappointing results, a company restructure, and lower global vaccination rates have weighed on the stock.

However, UBS sees value here, maintaining a buy recommendation on CSL shares with a 12-month target of $235.

BHP Group Ltd (ASX: BHP)

BHP is the largest stock in the ASX 200 materials sector with a market cap of $260 billion.

ASX mining shares were the worst hit by the war in Iran.

Over the first three weeks of March, the S&P/ASX 200 Materials Index (ASX: XMJ) tumbled 21%.

The BHP share price dropped from a record high of $59.39 on 3 March to a low of $46.06 on 23 March.

Today, the BHP share price is $52.62, up 2.7%.

Morgan Stanley has a buy rating on the ASX 200 mining giant with a share price target of $56.

WiseTech Global Ltd (ASX: WTC)

Wisetech is the largest ASX 200 tech share with a market cap of $13 billion.

Portfolio managers Tim Riordan and Michael Teran from Blackwattle describe Wisetech as one of the market's highest quality companies.

That's despite the Wisetech share price more than halving over the past six months.

Wisetech has faced several issues and has also fallen amid a broader tech sector rout driven by artificial intelligence (AI) fears.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) has deteriorated 45% over six months.

However, Riordan and Teran recommend that investors buy the dip on Wisetech shares.

They comment:

We are excited about the FY27 and beyond outlook and see WTC as one of the few technology companies pivoting in the face of AI disruption risk.

We believe this makes a significant long-term, compounding growth profile and highly attractive Risk/Reward makes the current share price selloff a significant investment opportunity.

The post ASX 200 sector leaders to buy amid today's market rally appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed on Thursday trading for $51.23. In morning trade on Tuesday, shares are changing hands for $52.92 apiece, up 3.3%.

That sees the share price up an impressive 53.1% over the past 12 months. And that's not including the $1.958 in fully-franked dividends BHP paid out over the full year. If we add those back in, then the accumulated value of BHP shares has surged 58.8% since 7 April 2025.

Atop its own operational successes, the miner has enjoyed a resilient iron ore price. The industrial metal is trading at around US$107 per tonne today, up from US$99 per tonne a year ago.

Then there's copper. At US$12,360 per tonne, the copper price is up 42% since this time last year.

Which brings us back to our headline question…

Are BHP shares still a good buy now?

For a deeper dive into this million-dollar question, we defer to three investing experts who ran their slide rules over the mining giant late last week (courtesy of The Bull).

"The commodities bull market has only just started, in my view," said Fairmont Equities' Michael Gable.

"As a global mining giant, BHP generally appeals to investors looking to increase exposure in the resources sector," he added.

And Gable noted that BHP shares remain down 12% since closing at $59.25 on 2 March.

Summing up his hold recommendation on the ASX 200 mining stock he said:

BHP's share price has retreated to a major support level since the start of the war in Iran. I'm confident the stock should bounce from these levels. BHP's diversification makes it a safer bet for investors to ride the commodities bull market.

Morgans Financial's Mitch Belichovski also has a current hold recommendation on BHP shares.

"BHP is a diversified mining company producing iron ore, copper, nickel, metallurgical coal and potash," he said.

Belichovski added:

First half revenue in fiscal year 2026 grew 11% on the prior corresponding period and profit after tax was up 28%. The fully franked interim dividend of US73 cents a share was up 46% and ahead of consensus.

BHP's fundamentals position it to play a recovery in China's subdued growth. Capital expenditure cycles and copper growth provide a compelling reason to retain BHP as a core position in portfolios.

And another hold…

Also issuing a hold recommendation on BHP shares this week is Investor Pulse's Mark Elzayed.

"The company remains a global resources powerhouse, increasingly focused on future-facing commodities, such as copper and potash," he said. "The first half result in fiscal year 2026 highlights a robust performance across its portfolio."

Elzayed sounded particularly bullish on BHP's increasing copper production. He noted:

Iron ore continues to deliver strong cash flow, but copper has become the standout performer, contributing about 51% of total earnings. Copper production guidance has been upgraded to between 1.9 million tonnes and 2 million tonnes following record output at its Escondida operation and various South Australian assets.

Elzayed concluded:

Valuation metrics indicate that BHP was recently trading in line with historical enterprise value-to-earnings multiples, reflecting solid fundamentals and current commodity price expectations.

The post Up 59% in a year, should you still buy BHP shares today? appeared first on The Motley Fool Australia.

Markets have pulled back, potentially creating opportunities to pick up shares in quality companies at a discount to what people were willing to pay only recently.

Here are three popular ASX shares that I'd buy this month.

BHP Group Ltd (ASX: BHP)

When I look at BHP, I see a company that is closely tied to some of the biggest long-term trends in the global economy.

Copper demand is one of the clearest examples. Electrification, renewable energy, and infrastructure all require large amounts of copper, and I think that demand could remain strong for many years.

BHP also offers exposure to iron ore, which continues to underpin its earnings today, as well as longer-term projects like potash that could diversify future growth.

What makes BHP appealing to me right now is the balance. It is not just a growth story. It is also an income-generating business that can return capital to shareholders through the cycle.

In a market where uncertainty is rising again, I think that combination of income and long-term exposure to global demand is hard to ignore.

Commonwealth Bank of Australia (ASX: CBA)

Commonwealth Bank is often described as expensive. And I think that is fair.

But I also think there is a reason it continues to trade at a premium. CBA has consistently delivered strong returns, supported by its scale, brand strength, and leading position in the Australian banking system.

Even in a higher interest rate environment, it has shown an ability to maintain margins and generate reliable earnings.

For me, this is less about finding a bargain and more about owning quality. If I were building or adding to a long-term portfolio in April, I would still consider CBA shares because of its consistency and resilience.

It may not be the fastest grower, but it is one of the most dependable.

DroneShield Ltd (ASX: DRO)

DroneShield sits at the opposite end of the spectrum. This is not a mature, steady business. It is a company operating in a rapidly evolving industry with significant potential.

What stands out to me is how quickly the business has scaled. In FY25, the company delivered around $260 million in revenue, roughly four times higher than the previous year, while also achieving profitability.

At the same time, its sales pipeline has grown to around $2.3 billion across nearly 300 deals, which suggests a large opportunity set ahead.

I also find the broader industry backdrop compelling. Counter-drone technology is still in its early stages, with adoption across both military and civilian markets expected to expand over time. The company itself points to a very large addressable market and increasing global demand for these solutions.

Of course, this kind of growth story comes with more risk.

But I think that is part of the appeal. In a diversified portfolio, DroneShield shares could provide exposure to a theme that is very different from traditional sectors.

Foolish takeaway

I think combining these types of ASX shares in a portfolio can make a lot of sense for long-term investors.

BHP offers exposure to global growth and commodities, CBA provides stability and income, and DroneShield brings higher-risk, higher-potential growth tied to a rapidly evolving industry.

The post Why I think BHP, CBA, and DroneShield shares are buys in April appeared first on The Motley Fool Australia.

Shares have dropped 13.5% over the past month, rattling confidence. But zoom out, and the picture looks very different. BHP shares are still up 12.5% year to date and an impressive 32% over the past 12 months.

To put it in perspective, the S&P/ASX 200 Index (ASX: XJO) climbed just 8% in the same period.

So, what's going on — and is this dip a buying opportunity?

Squeezed margins

Recent weakness looks largely macro-driven.

Global tensions, particularly ongoing conflict in the Middle East, have pushed energy prices higher and fueled broader market uncertainty. Rising fuel costs can squeeze margins for miners, while investor jitters tend to hit cyclical stocks like BHP shares harder.

At the same time, commodity prices — especially iron ore — have been volatile. Since iron ore is BHP's key earnings driver, even small price swings can have an outsized impact on sentiment.

Put simply, the sell-off says more about the environment than the business itself.

Future facing commodities

And that business still has serious strengths.

BHP remains one of the world's lowest-cost producers, giving it a major advantage during downturns. It also has exposure to future-facing commodities like copper, which is expected to benefit from electrification and the global energy transition.

Add in a strong balance sheet and consistent cash generation, and BHP shares are well-positioned to weather volatility.

But there are risks.

BHP is highly cyclical. If global growth slows or China's demand weakens, commodity prices could fall further — dragging earnings with them. There's also ongoing exposure to geopolitical risks and cost pressures, particularly from energy and labour.

What experts think?

Blackwattle Investment Partners recently highlighted several ASX mining stocks in its monthly newsletter, noting it expects BHP shares to continue outperforming the market, adding:

BHP continues to extract value from its portfolio, announcing the sell down of Antamina's silver-stream for US$4.3bn while maintaining their (BHP's) exposure to the Copper, Zinc and Lead at the mine.

BHP has identified a further US$4b of potential value to be unlocked from within their portfolio which should continue to see BHP outperform the market.

BHP called out ex China, European demand picking up, US remains steady and India continues to grow, and we believe given tight supply and fundamental demand for commodities keeps BHP well placed to benefit moving forward.

What next for BHP shares?

According to TradingView data, sentiment is mixed but still leans positive. Eleven analysts rate BHP as a hold, seven as a buy or strong buy, and two have sell ratings.

The average 12-month price target sits at $54.31 — implying modest upside of around 6% from current levels.

But the bulls see more.

The most optimistic forecast tips BHP could climb to $70.37 — a potential gain of 37%.

The bottom line? BHP shares have pulled back, but the long-term story hasn't changed. For investors willing to ride the commodity cycle, this dip could be worth a closer look.

The post BHP shares just dropped — is this your chance to buy the dip? appeared first on The Motley Fool Australia.

To narrow things down, let's see what analysts are saying about three popular shares, courtesy of The Bull. Here's what they are recommending:

Aristocrat Leisure Ltd (ASX: ALL)

The team at Morgans is positive on this gaming technology company and has named its shares as a buy.

The broker believes that its shares are attractively priced at current levels given its strong track record of growth. It said:

Aristocrat Leisure designs, develops and distributes gaming content, platforms and systems. It offers high quality recurring earnings from generating real money online gaming opportunities. An under geared balance sheet provides options for acquisitions, and ALL is a capital light business with strong cash conversion. The company is trading well below historical levels. The stock is attractively valued given its track record of proven earnings growth.

BHP Group Ltd (ASX: BHP)

Over at Fairmont Equities, it has named BHP shares as a hold this week.

While it believes a commodities bull market is only just beginning and BHP is a safe bet, it isn't quite recommending the Big Australian as a buy just yet. It commented:

The commodities bull market has only just started, in my view. As a global mining giant, BHP generally appeals to investors looking to increase exposure in the resources sector. BHP's share price has retreated to a major support level since the start of the war in Iran. I'm confident the stock should bounce from these levels. BHP's diversification makes it a safer bet for investors to ride the commodities bull market.

Woodside Energy Group Ltd (ASX: WDS)

Fairmont Equities has also named Woodside shares as a hold this week.

While it was a buyer of Woodside shares before the US-Iran conflict, it isn't adding to its holding at current levels following a strong share price rise. It said:

We were buying this major oil and gas producer prior to the conflict in Iran in response to looming supply issues. Investors have been underweight in the energy sector. As the world increasingly focuses on tightening energy supplies, we expect investors will start adding the most liquid and blue chip energy stocks to their portfolios. The largest on the ASX is Woodside Energy. The share price recently pushed beyond several major technical levels, which is a positive sign from a charting point of view.

The post Buy, hold, sell: Aristocrat, BHP, and Woodside shares  appeared first on The Motley Fool Australia.

Some of the most popular ASX ETFs have dropped significantly since the beginning of the conflict in the Middle East.

This kind of sell-off can set off alarm bells for holders of these funds. 

However, it's always worth remembering that over the long-term, these funds have come out ahead. 

This has been consistent for heavy sell-offs like in March 2020 and April 2025. 

In fact, a report from Betashares points out that markets take on average 109 days to recover from geopolitical shocks. 

Of course, perfectly timing the bottom of any cycle is near impossible. 

However this data from Betashares reinforces that for investors with a long-term focus, the current fall could be just a blip on the radar.

Here are three that could be worth considering after falling to start 2026. 

BetaShares Australia 200 ETF (ASX: A200)

As the name suggests, this ASX ETF tracks the performance of the S&P/ASX 200 Index (ASX: XJO). 

This index comprises 200 of the largest companies by market capitalisation listed on the ASX.

It includes strong weightings towards blue-chip companies like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA).

This ASX ETF is one of the most popular amongst investors for its simple and low-cost tracking of the Australian market. 

The fund is down roughly 7% in the last month. 

However, it has delivered an average annualised return of almost 9% in the last 5 years. 

BetaShares NASDAQ 100 ETF (ASX: NDQ)

This ASX ETF aims to track the NASDAQ-100 Index (NASDAQ: NDX)

This index comprises 100 of the largest non-financial companies listed on the Nasdaq market, and includes many companies that are at the forefront of the new economy.

It includes companies like Nvidia Corp (NASDAQ: NVDA) and Apple Inc. (NASDAQ: AAPL). 

It can attract investors looking for established companies with growth potential. 

Since the start of 2026, it has fallen more than 9%. 

However, in the last 5 years it has averaged an impressive 15% return per annum. 

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This ETF is the most popular internationally focussed fund listed on the ASX. 

Compared to the other two funds mentioned above, this fund is much more diversified, including almost 1,300 underlying holdings. 

Geographically, this is weighted towards the United States (71%).

It has fallen roughly 7% so far in 2026. 

This dip may attract investors with a long-term outlook, as the fund has delivered annualised returns of nearly 15% per year over the last 5 years. 

The post Why now could be the time to buy these popular ASX ETFs appeared first on The Motley Fool Australia.

Interestingly, the ASX 200 is one of the most concentrated developed-market indices on the planet.

According to VanEck, the top 5 securities account for 33% of Australia's benchmark index. 

This means that when these companies rise or fall, they can heavily influence the broader performance of the ASX 200. 

In the month of March, the ASX 200 index fell almost 8%. 

This was the largest single-month fall in some time, heavily influenced by the conflict in the Middle East. 

Let's look at how some of the largest blue-chip shares performed during this month.

Commonwealth Bank of Australia (ASX: CBA)

CBA is Australia's largest company and largest bank.

The performance of CBA shares strongly influences many other equities, including financial and ASX 200 tracking ETFs.

Out of the big four bank shares, CBA was the best to own during the month of March. 

CBA shares finished trading in February at $174.62 and finished March at $167.70 each. 

In total, that was a 4.0% fall in March, significantly outperforming the 7.8% loss posted by the benchmark index.

The Motley Fool's Bronwyn Allen reported last week that CBA has drawn bull rally predictions from experts recently. 

The report suggested CBA shares could rally to as high as $190 each. 

This suggests that the recent pull back could be an attractive entry point for those seeking exposure to the blue-chip stock. 

BHP Group Ltd (ASX: BHP)

BHP is Australia's largest blue-chip mining company, and is among the world's top producers of major commodities including iron ore, copper, and metallurgical coal.

It was hit hard during the month of March, falling approximately 15%. 

The blue-chip company remains up 12% year to date, and has drawn positive outlooks from experts following March's sell-off. 

Remo Greco from Sanlam Private Wealth has a buy rating on BHP shares.

In a note (via The Bull), he said the current volatility presents investors with an opportunity to buy this global miner at attractive prices.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is Australia's largest blue-chip consumer discretionary company.

Its subsidiaries include household names such as Bunnings Warehouse, Kmart Australia, Officeworks, Priceline, and more.

Wesfarmers shares also underperformed across the month of March, falling approximately 9%. 

Despite this fallback, Wesfarmers remains a strong defensive option for investors expecting more volatility this year. 

How to target ASX blue-chip shares

For investors trying to hone in on ASX blue-chip shares, a viable option is the iShares S&P/ASX 20 ETF (ASX: ILC). 

It is designed to track the performance of the 20 largest Australian securities listed on the ASX. 

This includes the three companies listed above, as well as other banking and mining giants. 

It has outperformed Australia's benchmark index so far in 2026, rising 4% compared to a 1.7% fall for the ASX 200. 

The post How did these ASX blue-chip shares perform in March? appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) is currently up 0.5%, with the materials sector today's strongest riser, up 0.8%.

After a 32% surge in CY25, the materials sector managed just a 1.1% gain over 1Q CY26.

This was largely due to the war in Iran creating an ongoing oil shock, which threatens to limit ASX miners' production and earnings.

The materials sector fell 14.1% in March, but a rebound appears underway, with the materials index reversing course last Tuesday.

Blackwattle Investment Partners discussed several ASX mining shares in its recent round of monthly newsletters.

Here's what the fund manager had to say about the market's largest diversified ASX mining share and its biggest lithium producer.

BHP Group Ltd (ASX: BHP)

The BHP share price is $52.88, up 0.6% today.

The market's largest ASX 200 mining share fell 11% over the past month, but is still 38% higher over 12 months.

Blackwattle holds BHP shares in its Large Cap Quality Fund.

Portfolio managers Joe Koh and Elan Miller said BHP delivered a "solid" 1H FY26 result.

Both EBITDA and NPAT were +3% ahead of consensus driven primarily by a strong performance from the Copper division which is now the largest contributor to earnings for BHP (surpassing Iron Ore).

FCF generation was also strong and led to debt repayment and better than expected capital management in the form of dividend.

The managers believe BHP will continue to outperform the market, adding:

BHP continues to extract value from its portfolio, announcing the sell down of Antamina's silver-stream for US$4.3bn while maintaining their (BHP's) exposure to the Copper, Zinc and Lead at the mine.

BHP has identified a further US$4b of potential value to be unlocked from within their portfolio which should continue to see BHP outperform the market.

BHP called out ex China, European demand picking up, US remains steady and India continues to grow, and we believe given tight supply and fundamental demand for commodities keeps BHP well placed to benefit moving forward.

PLS Group Ltd (ASX: PLS)

The PLS Group share price is $5.21, down 1.8% on Thursday.

The market's largest ASX 200 lithium mining share has skyrocketed 238% over the past 12 months.

PLS Group shares have risen alongside a remarkably strong recovery in lithium commodity prices since mid-2025.

The ASX 200 mining share has also benefited from changed global supply/demand dynamics since major producer, Zimbabwe, announced export limits to encourage the development of on-shore downstream processing.

Blackwattle holds PLS Group shares in its Mid Cap Quality portfolio.

Portfolio managers Tim Riordan and Michael Teran said PLS Group operates relatively low-cost, long-life lithium mines.

They note the company's strong balance sheet, which they said provides flexibility and a competitive advantage to indebted peers.

Riordan and Teran said:

We continue to see material upside for PLS as an 'improving quality' business and view PLS as the highest quality, lithium miner on the ASX.

PLS delivered a strong 1H26 result and announced the signing of a 2-year offtake agreement with strong price floors and unlimited
price upside, cementing PLS's position as the go-to lithium spodumene producer.

This has allowed PLS to de-risk the restart of its higher cost Ngungaju spodumene plant, driving significant potential earnings upside in FY27.

PLS is finally seeing the benefits from the P1000 expansion, and PLS is extremely well placed to benefit from any further recovery in lithium prices, with strong operations and significant production growth optionality, allowing for continued shareholder value creation through the cycle.

The post 2 ASX 200 mining shares this fund manager is backing for long-term growth appeared first on The Motley Fool Australia.

All three of the Aussie miners lost ground in the month just past. That came despite a 6% increase in the iron ore price, with the industrial metal ending the month at US$106 per tonne. Copper prices went the other way, however, falling 8% to end March trading for US$12,225 per tonne, according to data from Bloomberg.

Investors will also have been eyeing the impacts from the Iran war. Atop guaranteed higher upcoming fuel costs for the ASX 200 mining shares, they could also potentially be facing diesel supply shortages, which could impact their operations in the months ahead.

Now, as we'll look at below, the three Aussie miners all traded ex-dividend over the month. We'll need to take those passive income payments into account as they'll mitigate the share price declines.

So, how did the ASX 200 mining shares stack up?

I'm glad you asked!

How did the big three ASX 200 mining shares perform in March?

On 27 February, Rio Tinto Ltd (ASX: RIO) shares closed at $167.33. When the closing bell sounded on 31 March, shares were swapping hands for $161.43 apiece. This saw the Rio Tinto share price down 3.5% over the month.

Rio Tinto traded ex-dividend on 5 March. The miner will pay the (rounded) $3.60 a share fully-franked dividend on 16 April. If we add that back into the March closing price, then investors holding Rio Tinto shares over the month will have only lost 1.4%.

Turning to Fortescue Ltd (ASX: FMG), the miner closed out February trading for $21.14 a share and ended March trading for $20.31. This saw the Fortescue share price down 3.9% over the month just past.

Fortescue traded ex-dividend on 2 March. The ASX 200 mining share paid out its fully-franked 62 cents a share dividend on 30 March. Adding that back into the March closing price, and investors holding the stock over the month will have lost a lesser 1.0%.

Trailing the pack in March, we have Australia's biggest mining stock, BHP Group Ltd (ASX: BHP).

BHP shares ended February trading for $58.41 and closed out March trading for $50.39 each. This put the ASX 200 mining share down 13.7%.

BHP traded ex-dividend on 5 March. BHP paid its (rounded) $1.04 a share fully-franked dividend on 26 March. But even after we add that back in, investors holding BHP shares over March will have lost 12.0%.

In March, investors also learned that Brandon Craig will take the reins as BHP's new CEO on 1 July.

The post Buying ASX 200 mining shares? Here's how Rio Tinto, Fortescue and BHP stacked up in March appeared first on The Motley Fool Australia.