At the time of writing, the ASX 200 is down 0.49% to 8,686 points.

The index has moved between early weakness and selective buying, showing that the market is still struggling for direction.

The result is a choppy session where a few strong pockets are being offset by wider weakness across the market.

Let's take a closer look at what is moving the ASX 200 today.

Retail stocks feel the wage pressure

Retail stocks are under pressure today after the Fair Work Commission handed down its latest wage decision.

Minimum award wages will increase by 4.75% from 1 July, while the national minimum wage will rise to $26.44 an hour, or $1,004.90 a week.

The decision affects around 2.8 million workers, so it is good news for Australians dealing with higher living costs.

The share market, however, is focused on what the wage rise means for company costs.

Retailers are already dealing with cautious shoppers and rising costs, so today's wage decision adds another cost for investors to factor in.

Businesses with large store networks and distribution teams are the ones most exposed, because even small cost increases can become significant across the group.

That concern appears to be weighing on several consumer stocks today.

Woolworths Group Ltd (ASX: WOW) shares are down 1.6% to $34.50, while Coles Group Ltd (ASX: COL) shares have slipped 0.7% to $21.55.

Wesfarmers Ltd (ASX: WES) is also weaker, with its shares down 1% to $78.89. JB Hi-Fi Ltd (ASX: JBH) has fallen 4% to $72.09, while Harvey Norman Holdings Ltd (ASX: HVN) is also down 1% to $4.54.

Economic data adds another concern

There is also some caution around the broader economy after the latest trade numbers.

ABS data showed Australia recorded a seasonally adjusted goods trade deficit of $1.84 billion in March.

It was the first monthly goods trade deficit since December 2017.

Imports jumped 14.1%, helped by a surge in data processing equipment, while exports fell 2.7%.

The Australian reported that Australia's broader net trade position is expected to weigh on March quarter GDP, with imports of data centre equipment playing a major role.

At the same time, today's wage decision has kept inflation and interest rates in focus.

Reuters reported some economists expect the wage rise could add inflation pressure, giving the RBA another issue to weigh closely.

Tech keeps the market from looking worse

Tech shares are helping limit the damage today, even though the broader ASX 200 is still trading lower.

Xero Ltd (ASX: XRO) shares are up 6.25% to $86.01, while WiseTech Global Ltd (ASX: WTC) shares are 5.98% higher at $41.49.

Those gains are helping offset some of the weakness elsewhere across the market.

The buying follows another strong session for AI-linked stocks in the US, where Nvidia shares rose after unveiling its latest AI-focused products.

That has flowed through to parts of the local tech sector, even though the wider market is still struggling.

The S&P/ASX 200 Resources Index (ASX: XJR) is also lending some support, with the sector up 0.58%.

Northern Star Resources Ltd (ASX: NST) is one of the standout moves, with its shares up 13.37% to $20.99.

The gold miner is rallying after reports that Elliott Investment Management has built a stake and is pushing for change.

The post Why's the ASX 200 falling today despite another tech rally? appeared first on The Motley Fool Australia.

It isn't hard to understand why. They can offer predictable interest payments and capital stability, which can be useful for conservative investors.

But ASX dividend shares can offer something term deposits cannot: the potential for growing income and capital growth over time.

There are risks, of course, and dividends are never guaranteed. But for investors comfortable with share market volatility, the three ASX dividend shares below could be worth a closer look.

Harvey Norman Holdings Ltd (ASX: HVN)

The first ASX dividend share to look at is Harvey Norman.

The retail giant has been part of the Australian market for decades and remains one of the country's best-known consumer brands. Its stores sell furniture, bedding, electronics, appliances, and other household products.

Retail conditions can be tough when interest rates are high and households are watching their spending. But Harvey Norman has been through plenty of cycles before.

The company also has something that sets it apart from many retailers: a large property portfolio. This gives the business another layer of asset backing and adds depth to the investment case.

Harvey Norman shares are expected to offer a 6.75% dividend yield in FY 2027.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that could be worth a look is HomeCo Daily Needs REIT.

This property trust owns convenience-based assets focused on the things people use regularly. Its portfolio includes daily needs centres, large-format retail, health and services properties, and other convenience-focused locations.

This gives it a different profile from shopping centres that rely heavily on fashion, luxury goods, or discretionary spending.

Tenants such as supermarkets, pharmacies, medical services, childcare operators, and household goods retailers can provide a more resilient rental base. That can be useful when the economic outlook is uncertain.

HomeCo Daily Needs REIT is expected to provide income investors with a 7% dividend yield in FY 2027.

Transurban Group (ASX: TCL)

A final ASX dividend share to consider instead of term deposits is Transurban.

The toll road operator owns major transport assets in Australia and North America. These roads are hard to replicate and often form critical parts of city transport networks.

This gives Transurban exposure to long-term population growth, urban congestion, and essential travel routes. Revenue can also be supported by contracted toll increases across parts of its network.

A 4.15% dividend yield is expected from Transurban shares in FY 2027.

The post Forget term deposits and buy these ASX dividend shares in June appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) rose 0.86% amid volatile trading to 8,731.7 points by Friday's close.

There was a strong 1.62% rally on Friday on fresh hopes of an imminent deal between the US and Iran.

Meanwhile, softer-than-expected inflation data on Wednesday quelled fears of further interest rate hikes ahead.

Annual headline inflation fell to 4.2% in April, down from 4.6% in March, according to the Australian Bureau of Statistics.

That's why consumer discretionary shares outperformed their peers last week.

Let's take a look at some individual stock price movements.

Consumer discretionary shares led the ASX sectors last week

The Wesfarmers Ltd (ASX: WES) share price lifted 6.84% over the week to finish at $79.79.

The Lottery Corporation Ltd (ASX: TLC) share price rose 4.43% to $5.42.

The Light & Wonder Inc (ASX: LNW) share price ascended 1.68% to $116.73.

JB Hi-Fi Ltd (ASX: JBH) shares rose by 2.45% to finish the week at $74.49.

Shares in furniture retailer Harvey Norman Holdings Ltd (ASX: HVN) lifted 5.01% to $4.61.

Super Retail Group Ltd (ASX: SUL) shares rose 5.77% to $11.73 apiece.

Lovisa Holdings Ltd (ASX: LOV) shares increased 6.08% to close at $23.22.

ASX 200 travel stock Flight Centre Travel Group Ltd (ASX: FLT) ripped 9.08% to $10.93 per share.

Shares in Premier Investments Limited (ASX: PMV) zoomed 7% higher to $12.53.

Some ASX 200 retail shares did not follow the broader sector trend last week.

Eagers Automotive Ltd (ASX: APE) shares fell 2.61% to $20.89 apiece.

The Guzman Y Gomez Ltd (ASX: GYG) share price eased 0.76% to $19.66.

Shares in gaming technology company Aristocrat Leisure Ltd (ASX: ALL) dipped 0.63% to $50.10.

The Breville Group Ltd (ASX: BRG) share price moderated 0.21% to $28.94.

ASX 200 market sector snapshot

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

Over the five trading days:

The post Why did ASX 200 retail shares lead the market last week? appeared first on The Motley Fool Australia.

Its shares are down 35% since the start of the year.

That is understandable. Big-ticket retail has been under pressure, consumers have been cautious, and investors have had plenty of other dividend shares to choose from.

But I think Harvey Norman could be a better buy than it looks at first glance.

At the current share price of $4.54, the stock offers a combination of income, value, and recovery potential that could appeal to patient investors.

A large fully franked yield

The first attraction is the dividend. According to CommSec, the consensus estimate is for Harvey Norman to pay dividends per share of 31 cents in FY26 and 31 cents again in FY27.

Based on the current share price, that represents a forward dividend yield of approximately 6.8%.

That is a large yield, and it is expected to be fully franked.

For Australian income investors, franking credits can make a meaningful difference to the after-tax return, depending on personal circumstances.

Of course, dividends are not guaranteed. Harvey Norman is exposed to the consumer cycle, and earnings can move around when shoppers pull back on furniture, appliances, electronics, and homewares.

But the forecast income is a clear reason I think the stock deserves attention.

The valuation looks reasonable

The second attraction is valuation. CommSec's consensus estimates are for earnings per share of 38.5 cents in FY26 and 39 cents in FY27.

At $4.54, that puts Harvey Norman on a forward price-to-earnings ratio of around 12 times.

That does not scream deep bargain on its own, but I think it looks reasonable for a business with a well-known brand, global operations, and a large property portfolio.

The property side of Harvey Norman is important. This is not just a retailer renting every store and hoping for strong sales. The company has meaningful property backing, which gives the investment case another layer.

A consumer recovery could help

The third reason I think Harvey Norman is interesting is the potential for better conditions ahead.

When households feel stretched, big-ticket purchases are easy to delay. A new lounge, fridge, computer, or bedroom suite can wait.

But delayed demand does not disappear forever. If interest rates ease, housing turnover improves, or consumer confidence lifts, Harvey Norman could benefit from a better retail backdrop.

The company does not need the economy to boom for sentiment to improve. Even a shift from very cautious to slightly more confident could help.

Foolish takeaway

Harvey Norman is not a fashionable ASX 200 dividend share right now, and that may be part of the opportunity.

The yield is attractive, the valuation looks undemanding, and the business has more going for it than the current share price may suggest.

This is still a cyclical retailer, so patience is required. But for investors looking for fully franked income with recovery potential, I think Harvey Norman is worth a closer look.

The post Could this unloved ASX 200 dividend share be a better buy than it looks? appeared first on The Motley Fool Australia.

But two of the best could be in this article according to analysts at Bell Potter.

Here's what the broker is recommending to clients right now:

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman could be an ASX dividend share to buy for income according to Bell Potter.

The retail giant has a well-known brand, a large store network, and exposure to furniture, electronics, appliances, bedding, and other household categories. It also has a major property portfolio, which gives the business an additional layer that many retailers do not have.

Trading conditions have not been easy for discretionary retailers. Higher interest rates, cost of living pressures, and weaker consumer confidence are weighing on spending.

Nevertheless, Bell Potter is positive on its outlook and believes it is still positioned to grow its dividend.

It is forecasting fully franked dividends of 29.8 cents per share in FY 2026 and 33.5 cents per share in FY 2027. Based on its current share price, this would mean dividend yields of 6.7% and 7.6%, respectively.

The broker has a buy rating and $6.70 price target on Harvey Norman's shares.

Rural Funds Group (ASX: RFF)

Rural Funds is another ASX dividend share that could be a top pick for income investors.

It owns a diversified portfolio of agricultural assets, including properties used for cattle, almonds, macadamias, vineyards, and cropping. These assets are leased to operators, giving Rural Funds a rental income stream rather than direct exposure to day-to-day farming operations.

This structure can make its earnings profile more predictable than many traditional agricultural businesses. Long leases, contracted rental income, and exposure to real assets are all features that may suit investors looking for income.

Another positive is that Rural Funds provides exposure to farmland, which is an asset class that can benefit from long-term demand for food, productive land, and agricultural infrastructure.

It is not without risk. Interest rates, asset valuations, seasonal conditions, and tenant performance can all influence sentiment toward the stock. But for investors comfortable with the agricultural property sector, Rural Funds offers something different from the usual bank, telco, and resources dividend names.

Bell Potter is forecasting dividends per share of 11.7 cents in both FY 2026 and FY 2027. Based on its current share price of $1.98, this would mean dividend yields of approximately 6%.

The broker currently has a buy rating and $2.50 price target on its shares.

The post Buy these ASX dividend shares with 6%+ yields appeared first on The Motley Fool Australia.

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

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

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

Quality healthcare at lower prices

One area I would be looking at closely is healthcare.

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

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

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

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

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

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

Fallen growth shares

I would also be looking at selected ASX growth shares.

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

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

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

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

Consumer shares with recovery potential

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

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

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

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

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

Foolish takeaway

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

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

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

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

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

It is the equivalent of $1,000 a week, which is enough to make a meaningful difference to an investor's lifestyle, retirement plans, or financial flexibility.

But the important point is that this sort of income stream is unlikely to come from chasing the highest yields on the market. A more realistic approach is to build patiently, focus on quality, reinvest where possible, and let compounding do its work over many years.

The number investors need

Let's start with the income target.

If an investor wants $52,000 a year from ASX dividend shares and assumes an average dividend yield of 5%, they would need a portfolio worth approximately $1.04 million.

That is a large number, but it gives investors something concrete to work towards.

How compounding can help

The journey to a seven-figure portfolio becomes more achievable when investors use time and compounding to their advantage.

If an investor can achieve an average annual total return of 10%, including capital growth and dividends, their money could grow significantly over long periods. This return is broadly in line with long-term share market averages, but it is not guaranteed.

Based on a 10% annual return, an investment of $1,000 per month into ASX shares would turn into over $1 million in around 23 years.

But it is worth remembering that some years will be strong, while others will be painful. That is why discipline matters.

What could go into the portfolio?

A passive income portfolio should not rely on one sector doing all the work.

Telstra Group Ltd (ASX: TLS), for example, is often viewed as a defensive dividend option because of its essential telecommunications infrastructure, large customer base, and recurring earnings profile.

Infrastructure names can also have a role to play. APA Group (ASX: APA) owns energy infrastructure assets, while Transurban Group (ASX: TCL) provides exposure to toll roads. Both operate in areas where long-term demand and contracted or regulated revenue streams can support income.

Investors may also look at real asset exposure through Rural Funds Group (ASX: RFF), which owns agricultural properties leased to operators. This gives the portfolio a different source of income from banks, retailers, or infrastructure shares.

Consumer-facing names can add another layer. Woolworths Group Ltd (ASX: WOW) has defensive qualities through grocery retailing, while Harvey Norman Holdings Ltd (ASX: HVN) offers exposure to retail, property, and dividends, though its earnings can be more cyclical.

The goal is not to own every income share available. It is to build a diversified group of reliable dividend payers that can support both income and long-term capital growth.

Foolish takeaway

A $52,000 annual passive income will not happen quickly for most investors.

But the formula is not complicated. Keep adding capital, reinvest dividends, diversify across quality ASX income shares, and then let time and compounding do the hard work.

The post How to build a $52,000 annual passive income appeared first on The Motley Fool Australia.

The most concerning factor for consumer discretionary retailers right now is falling consumer sentiment.

And it's no surprise that Aussies are feeling pessimistic and tightening their purse strings.

What's bringing consumers down?

The Reserve Bank has raised interest rates three times this year amid resurgent inflation exacerbated by the global oil shock.

The Westpac–Melbourne Institute Consumer Sentiment Index fell to an "extreme low" of 80.1 in April due to the Iran war.

That was the worst result since the pandemic, and there was only a small uptick of 3.5% this month.

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

Despite a small improvement, consumers remain deeply pessimistic.

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

However, rate rise fears are also in the mix.

Hassan said consumers expect variable home loan rates to rise further.

Even with three hikes already done this year, 85% of consumers still expect mortgage rates to increase further over the next 12 months.

That is closer to 90% across consumers with a mortgage.

Impact of the Federal Budget

Hassan said the personal impact of the Federal Budget for consumers was "very mixed", according to this month's survey.

Key announcements included proposed changes to capital gains tax (CGT) on all assets, including property, shares, and businesses.

Hassan said:

Among 'baby boomers' and 'Generation X', those expecting to be worse off outnumbered those expecting to benefit by 30–36% compared with a gap of just 9% for 'Millennials' and small net positive spread (+1%) among 'Generation Z' (or 'zoomers').

This week, the market was also surprised by weaker-than-expected jobs data, with unemployment lifting from 4.3% to 4.5%.

Commonwealth Bank of Australia (ASX: CBA) Senior Economist Ashwin Clarke was expecting employment to rise by 15,000 people.

Instead, employment decreased by 18,600 people in April.

Broker cuts price targets on 5 ASX retail shares

All of this factored into broker Jefferies slashing its 12-month share price target on ASX retail share Nick Scali Ltd (ASX: NCK) today.

The Nick Scali share price is $13.38, down 2.3% today and down 43% in the calendar year to date (YTD).

Jefferies downgraded Nick Scali shares from buy to hold and cut its target by 44% to $14 per share.

Analyst Michael Simotas forecasts lower profits ahead due to poor consumer sentiment and headwinds for the property market.

Even before the proposed CGT changes, the Australian property market had already begun to weaken on higher interest rates.

Latest data from Cotality shows a 0.6% fall in property values in Sydney and Melbourne in April and no growth in Canberra.

Last week, Sydney's preliminary clearance rate fell 6% to 49.2%, the weakest result since the early COVID period in April 2020.

Simotas said his profit forecast downgrades for the ASX retail share were due to "operating deleverage in Australia, New Zealand and U.K. due to softening macroeconomic conditions and given Nick Scali's sales are strongly correlated to housing market".

Simotas cut his FY26 net profit forecast by 8%, and said he has cut forecasts for future years by up to 30%.

Other ASX retail shares with slashed price targets

Jefferies cut its share price targets on several other ASX retail shares today.

These include fellow furniture retailer, Harvey Norman Holdings Ltd (ASX: HVN).

The Harvey Norman share price is $4.37, down 1.5% on Friday and down 38% YTD.

Jefferies downgraded its 12-month price target for this ASX retail share by 27% to $4.40 per share.

Jefferies also cut its price target on ASX travel retail share Webjet Group Ltd (ASX: WJL) by 38% to 40 cents per share.

The Webjet share price is currently 47 cents, down 2.1% today and down 47% YTD.

Wesfarmers and JB Hi-Fi shares receive price target reductions

Jefferies cut its 12-month target for Wesfarmers Ltd (ASX: WES) shares by 5.9% to $72.

The Wesfarmers share price is $74.71, down 0.1% today and down 8.6% YTD.

ASX electronics retail share JB Hi-Fi Ltd (ASX: JBH) also attracted a 6% price target cut to $75.

The JB Hi-Fi share price is $73.18, up 1.7% on Friday and down 24% YTD.

The following chart shows the share price percentage falls for these 5 ASX retail shares.

The post 5 ASX retail shares whose 12-month price targets just got slashed appeared first on The Motley Fool Australia.

Many Australian companies have a long history of paying dividends, and that can make the share market useful for investors who want regular cash flow as well as long-term capital growth.

Of course, dividends are never guaranteed. Companies can cut, pause, or reduce payouts if profits come under pressure. But with a diversified portfolio of quality ASX dividend shares, I think investors can build a useful income stream over time.

Start with the passive income goal

Aiming for $500 a month in passive income means targeting $6,000 a year.

The amount required to generate that income depends on the dividend yield achieved.

For this example, I am going to use a 4% dividend yield. I think that is a sensible starting point because it does not require investors to chase the highest-yielding shares on the market.

A 6% or 7% yield can look attractive, but it can also be a warning sign that the market is worried about the sustainability of the dividend. A 4% target gives investors more room to focus on quality, diversification, and dividend sustainability.

What the maths says

At a 4% dividend yield, an investor would need a portfolio worth around $150,000 to generate $6,000 a year in passive income.

That works out to roughly $500 a month.

That is a large number, but I do not think it should discourage investors. It can be built gradually through regular investing, reinvesting dividends, and allowing the portfolio to grow over time.

What could the portfolio include?

I would want a $150,000 income portfolio to be spread across different parts of the ASX.

The banks could play a role. Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and ANZ Group Holdings Ltd (ASX: ANZ) have long been popular dividend shares for Australian investors.

I would be careful not to overload the portfolio with banks, but they can provide franked dividends and exposure to large, profitable financial institutions.

Miners could also help with income. BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) can pay large dividends when commodity markets are favourable.

The important thing to remember is that mining dividends can be cyclical. Iron ore, copper, and other commodity prices can move sharply, so I would not treat those payouts as fixed.

Retailers and REITs

Retailers can add another income source.

Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL), and Harvey Norman Holdings Ltd (ASX: HVN) all offer different types of consumer exposure.

Some are more defensive, such as supermarkets. Others are more cyclical, such as household goods retail. Combining them carefully can help spread risk.

I would also consider real estate investment trusts.

HomeCo Daily Needs REIT (ASX: HDN), Charter Hall Long WALE REIT (ASX: CLW), and Scentre Group (ASX: SCG) can provide property-backed income. REITs can be sensitive to interest rates, but they can also offer attractive distributions from portfolios of income-producing assets.

Foolish Takeaway

To generate $500 a month in passive income from ASX shares at a 4% dividend yield, an investor would need about $150,000 invested.

That income will not be perfectly smooth, and dividends can change from year to year. But I think the goal is achievable with patience and a diversified portfolio.

For me, the key would be spreading the money across banks, miners, retailers, and REITs rather than relying too heavily on one sector.

A 4% yield target is not the most aggressive approach, but I think it gives investors a better chance of building income that is more sustainable over time.

The post How much do I need to invest in ASX shares for $500 a month of passive income? appeared first on The Motley Fool Australia.

Shares in Wesfarmers Ltd (ASX: WES) have fallen 1.9% to $71.24, while Harvey Norman Holdings Ltd (ASX: HVN) shares have dropped 2.5% to $4.36 at the time of writing.

The declines add to an already painful year for shareholders. Wesfarmers shares are now down roughly 12% year to date, while Harvey Norman has plunged 36%.

So, is this weakness creating a buying opportunity, or could the sell-off continue?

Wesfarmers: Diversification reduces risk

Wesfarmers remains one of the ASX's most respected retail and industrial businesses, with major exposure to Bunnings, Kmart, and Officeworks.

Despite its quality reputation, investors have become increasingly cautious on ASX retail stocks amid concerns around slowing consumer spending, elevated interest rates, and ongoing cost pressures.

Higher labour expenses, weaker discretionary spending and softer housing activity have all weighed on sentiment toward the retail sector in 2026. Valuation concerns may also be limiting enthusiasm for Wesfarmers shares after years of strong performance.

Still, the company retains several important strengths. Wesfarmers owns some of Australia's most dominant retail brands and has a long history of disciplined capital allocation, earnings growth, and fully-franked dividends. Its diversified business model also helps reduce risk compared with pure-play retailers.

Even so, analyst sentiment on the $80 billion ASX retail stock currently appears cautious. According to TradingView data, 14 out of 16 brokers rate Wesfarmers shares as either a hold or a sell.

Analyst forecasts currently imply an average 12-month price target of $76.88, roughly 8% above current levels. The most bullish analyst valuation is $100 per share, implying upside of around 40%, while the most bearish target suggests an additional 7% downside.

That widespread highlights uncertainty around the consumer outlook and future earnings growth.

Harvey Norman: Weak housing, spending slowdown

Harvey Norman shares have fallen even harder as investors reassess the outlook for household spending and housing-linked retail demand.

The ASX retail stock remains highly exposed to discretionary consumer purchases, particularly furniture, electronics, and home-related spending categories. That creates risk when households face rising mortgage costs and economic uncertainty.

Housing market softness has also pressured sentiment, with slower renovation activity potentially impacting sales momentum.

However, Harvey Norman still has several qualities attracting long-term investors. The company maintains a strong balance sheet, valuable property assets, and an established retail footprint across Australia and overseas markets.

Importantly, Harvey Norman has historically delivered attractive dividend yields, which may appeal to income-focused investors despite recent share price weakness.

While current headwinds may continue pressuring the stock in the near term, some investors could view the recent sell-off as a potential long-term value opportunity.

According to TradingView analyst forecasts, Harvey Norman shares are currently trading roughly 30% below estimated fair value.

Still, prospective investors should recognise that any recovery is unlikely to happen quickly. Consumer spending conditions remain uncertain, and retail sentiment could remain fragile until interest rate pressures begin to ease more meaningfully.

The post Major ASX retail stocks sink to year lows: Time to buy? appeared first on The Motley Fool Australia.

• CSL Ltd (ASX: CSL) are down 57% in the past 12 months and are trading at $101
• Harvey Norman Holdings Ltd (ASX: HVN) have fallen 17% to $4.46
• Wesfarmers Ltd (ASX: WES) have dropped 9% to $72.56. 

When well-known equities fall to yearly lows, many investors may consider buying in at the discount.

However there's no guarantee that these stocks won't fall even further. 

Here is the latest commentary from experts on these ASX 200 shares hitting fresh 52-week lows. 

CSL endures historical crash

CSL shares were making headlines yesterday as the company opened the week by crashing 16%. 

As Aaron Teboneras reported yesterday, the crash flirted with the company's biggest one-day loss on record. 

The drop came after CSL lowered its FY26 outlook, now expecting FY26 revenue of about US$15.2 billion. 

The company also expects NPATA of about US$3.1 billion, excluding restructuring costs and impairments.

That is a drop from FY25, when CSL reported revenue of US$15.6 billion and profit of US$3.3 billion on a constant currency basis.

Following yesterday's crash, CSL shares have now hit a new 52-week low, and are down 57% from a year ago. 

Ambitious investors may want to buy the dip, but continued guidance cuts have proven there is no guarantee the ASX 200 company has hit rock bottom. 

UBS recently placed a price target of $205 on CSL shares, however this was before the most recent guidance cut. 

Interest rates weigh on Harvey Norman 

As the RBA has ramped up interest rates this year, discretionary shares such as Harvey Norman have struggled. 

When mortgage repayments and loan costs rise, households often delay discretionary purchases, which can lower sales growth for the company.

Higher borrowing costs can reduce consumer spending on big-ticket household items like furniture, electronics, and appliances – all key items sold by the retailer. 

Harvey Norman shares are now hovering close to 52-week lows, down 36% year to date. 

While these headwinds are likely to persist in the short term, investors with a long-term outlook may be considering this stock, especially for its historically strong dividend yield.

Analysts forecasts via TradingView indicate the current price is 28% below fair value, however prospective investors should be aware this likely won't be an overnight turnaround. 

Inflation showing up on supermarket shelves

Part of the reason the RBA raised the cash rate for a third consecutive time was due to inflation.

The Consumer Price Index (CPI) rose from 3.7% over the 12 months to February to 4.6% in March, according to the Bureau of Statistics.

This has weighed on retail shares like Wesfarmers, which owns Bunnings, Kmart, Priceline, and Officeworks. 

Its share price is now down 18% since February, and sits close to a 52-week low. 

However targets from experts indicate it is hovering close to fair value. 

14 analyst forecasts via TradingView have an average one year target price of $76.88 on Wesfarmers shares. 

This is roughly 5% above current levels. 

The post What are experts saying about these shares hitting 52-week lows  appeared first on The Motley Fool Australia.

Australia's annual headline inflation rate rose to 4.6% in the 12 months to March, up from 3.7% in February, with fuel a major driver of the increase.

For investors, this creates a simple problem. Cash sitting in the bank needs to work harder just to maintain purchasing power.

That is why I think these ASX income stocks with forecast dividend yields above 8% could be worth considering.

GQG Partners Inc (ASX: GQG)

The first ASX income stock I would look at is GQG Partners.

GQG is a global investment manager, which makes it very different from a typical ASX dividend share.

Its earnings are tied to funds under management, investment performance, market conditions, and client flows. That means the dividend is not risk-free. A weak period for markets or fund flows could put pressure on profits and payouts.

But I think GQG has a few qualities that make it appealing for income investors.

It has a capital-light model, global reach, and exposure to institutional and wholesale investors around the world. If markets remain supportive and the company continues to attract or retain client money, it has the potential to generate strong cash flows.

According to CommSec, consensus estimates show that GQG is forecast to offer a dividend yield of around 12% in both FY26 and FY27.

That puts it well ahead of the current inflation rate and gives investors a potentially attractive income stream while they wait for long-term growth.

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman is another ASX income stock I think could help investors fight inflation.

The retailer has been out of favour at times because discretionary spending can be sensitive to interest rates, housing turnover, and consumer confidence.

But I think Harvey Norman is more interesting than a simple retail story.

It has a well-known brand, a large store network, offshore operations, and a significant property-backed element to the business. That property exposure gives it a different feel from many other retailers.

There are risks. If households remain under pressure from rising fuel costs, higher mortgage repayments, and cost-of-living concerns, spending on furniture, electronics, and appliances could be uneven.

But for investors focused on income, the valuation and yield are the attraction.

Consensus estimates point to Harvey Norman offering a dividend yield of around 8.5% in both FY26 and FY27.

While no dividend forecast is ever guaranteed, this is a business that has been through plenty of cycles before and continued to reward shareholders.

Foolish takeaway

Inflation at 4.6% changes the income conversation.

A 4% yield may no longer feel like enough for investors trying to protect their purchasing power.

That is why I think GQG Partners and Harvey Norman are worth a closer look. Both offer forecast yields above 8% in FY26 and FY27, based on consensus estimates.

Combined, I think they could help income investors fight inflation.

The post I'd buy these ASX income stocks to beat inflation appeared first on The Motley Fool Australia.

For me, the starting point is not asking which share has the biggest dividend yield today. It is asking what kind of portfolio could still be paying income years from now.

How I would approach it

If I were trying to build $1,000 a month from the ASX, I would think about the portfolio in layers.

The first layer would be reliable dividend payers. These are the companies I would expect to keep paying through different market conditions.

That could include names like Telstra Group Ltd (ASX: TLS), Transurban Group (ASX: TCL), Woolworths Group Ltd (ASX: WOW), and Commonwealth Bank of Australia (ASX: CBA). They all have different risks, but they also sit in parts of the economy that people use regularly: communications, toll roads, groceries, and banking.

I think that kind of everyday relevance is useful when building an income portfolio.

Add some higher-yield exposure carefully

The second layer would be higher-yield shares or income-focused ETFs.

This is where investors might look at stocks such as HomeCo Daily Needs REIT (ASX: HDN) or Harvey Norman Holdings Ltd (ASX: HVN), depending on valuation and outlook.

An ETF such as Vanguard Australian Shares High Yield ETF (ASX: VHY) could also help spread the risk across a wider basket of dividend-paying companies.

I would be careful here. A high yield can be attractive, but it can also signal pressure on the business or a dividend that may not be sustainable.

That is why I would prefer a mix rather than relying too heavily on one or two generous dividend payers.

Use growth to fund future income

The third layer is the one I think investors often overlook.

To build a serious passive income stream, I would want some capital growth as well.

A portfolio that only focuses on income from day one might grow too slowly. By including some businesses with the ability to lift earnings and dividends over time, the income target can become easier to reach.

That could include quality compounders such as Wesfarmers Ltd (ASX: WES), Goodman Group (ASX: GMG), or even a broad ETF such as the Vanguard MSCI Index International Shares ETF (ASX: VGS).

These may not provide the highest income today, but they can help the portfolio become larger over time. A larger portfolio can then produce more income later.

What size portfolio is needed?

The maths depends on yield. A portfolio yielding 4% would need around $300,000 to generate $12,000 a year, or $1,000 a month.

At a 5% yield, the required portfolio falls to $240,000.

At 6%, it falls again to $200,000.

Personally, I would be cautious about building the whole plan around a 6% yield. I think a more balanced target of 4% to 5% is healthier because it leaves room for quality and diversification.

Foolish takeaway

For me, building a $1,000 a month passive income from the ASX is about building a layered portfolio: reliable dividend payers, some carefully chosen higher-yield exposure, and enough growth to keep pushing the portfolio forward.

Done patiently, with reinvested dividends and regular additions, I believe the ASX can be a powerful place to build a meaningful second income over time.

The post How to build a $1,000 a month passive income from the ASX appeared first on The Motley Fool Australia.

That starts with a simple question: How much income is needed each year, and what dividend yield could realistically deliver it?

Start with the annual income target

The first step is turning the monthly target into an annual number.

A retirement income of $5,000 per month means $60,000 per year.

From there, the amount needed depends on the dividend yield I can achieve.

A portfolio yielding 4% would require more capital, but it may also allow investors to focus on higher-quality ASX dividend shares with more room for growth.

A portfolio yielding 6% would require less capital, but I would be careful. A higher yield can be attractive, but it can also signal that the market is worried about the sustainability of the dividend.

That is why I think the right answer sits somewhere in the middle.

What the numbers look like

At a 4% dividend yield, an investor would need a portfolio of $1.5 million to generate $60,000 per year.

With an average 5% dividend yield, the required portfolio falls to $1.2 million.

And at a 6% dividend yield, it falls again to $1 million.

On paper, the 6% option looks tempting. But I would not want to build an entire retirement plan around chasing the highest yields available.

The danger is that a portfolio becomes too concentrated in riskier income shares. If one or two dividends are cut, the whole income plan can be thrown off.

Why I would target 5%

For me, a 5% yield feels like a more balanced target.

It is high enough to generate a meaningful income stream, but not so high that investors need to rely only on the most stretched dividend yields in the market.

A portfolio targeting 5% could include a mix of higher-yielding shares, more defensive income names, and dividend-focused ETFs.

For example, HomeCo Daily Needs REIT (ASX: HDN) could provide exposure to daily-needs property income, and Harvey Norman Holdings Ltd (ASX: HVN) could add a higher-yielding retail and property-backed income angle. 

The Vanguard Australian Shares High Yield ETF (ASX: VHY) could also help by spreading the exposure across a basket of dividend-paying ASX shares.

I would not rely on only those holdings. A retirement portfolio should be broader than that. But I think names like these show how a 5% yield target could be realistic with careful selection.

Do not forget dividend growth

Today's income is only part of the story.

In retirement, I would want some dividend growth as well. Inflation can slowly reduce the purchasing power of $5,000 per month, so a portfolio that can lift its income over time is valuable.

That is where a mix matters.

Some ASX dividend shares may provide a higher yield now. Others may offer a lower starting yield but better long-term dividend growth. Combining both could make the income stream more resilient.

Foolish Takeaway

Based on a 5% dividend yield, an investor would need around $1.2 million in ASX dividend shares to target $5,000 per month in retirement income.

That is a large number, but I think it is best viewed as a long-term destination rather than a starting point.

By investing consistently, reinvesting dividends before retirement, and building a diversified portfolio, investors can gradually move closer to that goal.

The post How much do I need to invest in ASX dividend shares for a retirement income of $5,000 per month? appeared first on The Motley Fool Australia.

The Australian dollar has actually been on a tear of late. It was only in April of 2025 that the local currency dropped to a COVID-era low of about 60 US cents. That was thanks to the subsequently-walked-back-and-then-declared-illegal 'liberation day' tariff announcement from the US President Donald Trump.

Today, just over a year later, things look quite different. It was only in late January that the Aussie dollar crossed 70 US cents for the first time since early 2023. Over the past week, we saw the Aussie hit, and then exceed, 72 US cents. Today, one Australian dollar will buy you about 72.5 US cents at the time of writing. That's the highest level the Aussie has traded at against the Greenback in almost exactly four years.

Many Australians only check the Aussie dollar exchange rate when they're about to book an international holiday. But our dollar's value is a vitally important economic catalyst, one that can have huge impacts on a variety of ASX shares. Let's dig into how that works.

To put it simply, a rising Aussie dollar makes exports more expensive for companies that send goods overseas, and makes importing goods from overseas into Australia cheaper, provided all other things remain equal.

Which ASX shares benefit from a higher Aussie dollar?

As such, the biggest losers from a higher Aussie dollar are arguably mining companies, as well as energy companies. Stocks like BHP Group Ltd (ASX: BHP), Woodside Energy Group Ltd (ASX: WDS), Northern Star Resources Ltd (ASX: NST) and Whitehaven Coal Ltd (ASX: WHC) are forced to sell their iron ore, oil, gold and coal in US dollars on the international market. If our dollar rises in value, these companies will receive fewer Aussie dollars when they bring the US dollars they receive upon the sale of their commodities back home to the ASX.

Any other ASX share that sends goods or services to countries beyond our shores, or brings back foreign currencies to the ASX, is also in the firing line. That might include Cochlear Ltd (ASX: COH) and CSL Ltd (ASX: CSL), for example.

But what about winners from a higher dollar? Well, we have those too. As you can probably gather, any country that imports goods to resell to Australians will benefit from a higher dollar. Some names that come to mind include Wesfarmers Ltd (ASX: WES), JB Hi-Fi Ltd (ASX: JBH), Harvey Norman Holdings Ltd (ASX: HVN) and Ampol Ltd (ASX: ALD).

Wesfarmers imports most of the goods sold at its retailers, like Kmart, OfficeWorks, Target, and Bunnings, from their country of manufacture, which is typically China. It would be a similar story with JB and Harvey Norman's televisions and appliances, or Ampol's imported fuels.

Unfortunately, the closure of the Strait of Hormuz is probably dampening, if not eliminating, the benefits of our higher dollar for these stocks right now. But whenever the Strait reopens, these stocks will feel the full benefits of a rising Aussie dollar. That's assuming the dollar stays where it is, or keeps going higher, of course.

The post The Aussie dollar just hit a 4-year high. Which ASX shares will benefit? appeared first on The Motley Fool Australia.

That changes the income conversation.

If an investor has a very low tolerance for risk, I think term deposits may be the better option right now. They offer a known return, no share market volatility, and very little effort.

But for investors with a normal tolerance for risk, I still think ASX dividend stocks can make a lot of sense.

The reason is simple. Term deposits may offer income, but they do not offer capital growth. Good dividend shares can potentially provide both.

Below are three stocks I would consider buying for income even as interest rates rise.

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman is the kind of ASX dividend stock that may divide opinion in a higher-rate environment.

Retailers can be sensitive to household budgets, and rising interest rates can put pressure on discretionary spending. I would not ignore that risk.

But I also think Harvey Norman has a few qualities that make it interesting for income investors.

It has a long history as one of Australia's best-known retail brands, with exposure to furniture, electrical goods, appliances, and home-related spending. It also has a valuable property-backed model, which gives the business an asset base that many retailers do not have.

For me, this is not just a simple retail yield story. It is a business with scale, brand recognition, and a history of returning cash to shareholders.

The dividend can move around with earnings, so I would not treat it like a term deposit. But if investors are willing to accept some volatility, I think Harvey Norman could still play a useful role in an income portfolio.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT is another dividend option I would consider.

What I like here is the nature of its property exposure.

The REIT owns convenience-focused and daily-needs assets, with tenants that often sit in categories such as supermarkets, healthcare, large-format retail, and essential services.

That kind of tenant mix is useful when the economy becomes more uncertain.

Higher interest rates can be a headwind for property trusts because debt costs can rise and investors can compare yields more closely with cash and term deposits.

But I think the quality of the underlying rental income is important too. HomeCo Daily Needs REIT ticks this box with its 99% occupancy and high-quality tenant base that includes Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW). 

Cedar Woods Properties Ltd (ASX: CWP)

Cedar Woods is the more cyclical ASX dividend stock pick of the three, but I think it is also one of the more interesting.

The company develops residential communities and housing projects across Australia. Rising interest rates can weigh on buyer confidence, and Cedar Woods itself recently noted that sales and enquiry activity had softened recently, reflecting lower consumer confidence, rising rates, and the Middle East conflict.

But I think the bigger picture remains compelling. Australia still has a significant housing shortage, and Cedar Woods highlighted that this structural shortfall is expected to continue supporting sales volumes, while noting it will take many years to address.

The latest update also showed robust demand, with 9,663 enquiries in the third quarter, the highest quarterly result in the company's history. It also recorded 442 gross sales, its second strongest quarter on record.

Just as importantly, Cedar Woods reported record presales of more than $788 million, with over 80% of forecast FY27 revenue already presold. For me, that provides useful visibility.

This is still a property developer, so I would not call it defensive. But I do think Cedar Woods offers income investors exposure to a powerful long-term housing theme, with the potential for dividends and capital growth if it keeps executing.

Foolish takeaway

Rising interest rates make term deposits more attractive, particularly for investors who want certainty.

But I do not think they remove the case for ASX dividend stocks. For investors who can handle some market risk, I think Harvey Norman, HomeCo Daily Needs REIT, and Cedar Woods could still be worth considering.

They each offer income potential, but also something term deposits cannot provide: the chance of capital growth over time.

The post Why I'd still buy these ASX dividend stocks as interest rates rise appeared first on The Motley Fool Australia.

The US and Iran launched missile strikes against each other in the Strait of Hormuz overnight as the US tried to restore shipping.

Meanwhile, the Reserve Bank of Australia (RBA) raised interest rates for a third consecutive time to 4.35% today due to rising inflation.

In a statement, the RBA said:

Inflation picked up materially in the second half of 2025, and information since the beginning of this year confirms that some of this increase reflected greater capacity pressures.

In addition, the conflict in the Middle East has resulted in sharply higher fuel and related commodity prices, which are already adding to inflation.

There are early signs that many firms experiencing cost pressures are looking to increase prices of their goods and services.

The Brent crude oil price hit a four-year high earlier today as the market becomes increasingly pessimistic that the war will end soon.

Economists are warning that oil shocks have a long-tail economic impact, and the RBA appears acutely aware of the upside risk to CPI.

Today, four of the 11 market sectors finished in the red, with energy in the lead, up 0.89%, while financials lagged, down 0.5%.

Scores of ASX 200 shares hit fresh 52-week lows today.

They included former market darling CSL Ltd (ASX: CSL) and retail stalwart Wesfarmers Ltd (ASX: WES) shares.

Let's take a look.

CSL Ltd (ASX: CSL)

The CSL share price hit a 9-year low of $122.48 today.

The ASX 200 healthcare giant has lost half its value over the past 12 months.

Company issues have compounded the impact of a broader ASX 200 healthcare sector rout due to many global headwinds.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price reached a 52-week low of $71.31 today.

The market's largest ASX 200 consumer discretionary share is down 9% over 12 months.

Consumer sentiment is crumbling in Australia today.

Last month, the consumer sentiment index recorded its biggest fall since the beginning of the pandemic five years ago.

Amcor Ltd (ASX: AMC)

The Amcor share price hit a 12-year low of $51.42 today, and is down 28% over 12 months.

Endeavour Group Ltd (ASX: EDV)

The Endeavour share price fell to a record low of $3.13 today, and is down 22% over 12 months.

Harvey Norman Holdings Ltd (ASX: HVN)

The Harvey Norman share price hit a 52-week low of $4.39 today.

Stock in the ASX 200 furniture retailer has tumbled 15% over 12 months.

Ansell Ltd (ASX: ANN)

The Ansell share price dropped to a 2-year low of $25.35 today, and is down 18% over 12 months.

Super Retail Group Ltd (ASX: SUL)

The Super Retail share price hit a 3-year low of $11.47 on Tuesday, and is down 12% over 12 months.

Austal Ltd (ASX: ASB)

Austal shares fell to a 52-week low of $4.01 today.

The ASX 200 industrial share has fallen 21% over 12 months.

ARB Corporation Ltd (ASX: ARB)

The ARB Corporation share price hit a 52-week low of $17.89 today, and is down 43% over 12 months.

Nick Scali Ltd (ASX: NCK)

The Nick Scali share price hit a 52-week low of $14.03, and has cooled 18% over 12 months.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price hit a 2-and-a-half-year low of $5.29 today.

This ASX 200 retail share has lost 69% of its market capitalisation in 12 months.

Inghams Group Ltd (ASX: ING)

The Inghams share price descended to a 52-week low of $1.71 today.

The ASX 200 consumer staples share has fallen 51% over 12 months.

Centuria Office REIT (ASX: COF)

Centuria shares dipped to a 52-week low of 92 cents today.

The ASX 200 real estate investment trust (REIT) has decreased 26% over 12 months.

Accent Group Ltd (ASX: AX1)

Accent shares hit a 13-year low of 51 cents, and are down 72% over 12 months.

Adairs Ltd (ASX: ADH)

The Adairs share price hit a 52-week low of $1.25, and is down 51% over 12 months.

The post CSL and Wesfarmers among scores of ASX shares hitting fresh 52-week lows appeared first on The Motley Fool Australia.

The Australian share market has seen widespread selling across most sectors and weak investor sentiment. The ASX 200 is also reacting to a mixed start in US sharemarkets this week.

The softer market has also seen some ASX 200 shares fall to fresh 52-week lows.

Here are four of them.

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH)

Fisher & Paykel shares are down another 0.24% this morning to a new 52-week low of $29.18 a piece. The slump means the respiratory designer and manufacturer's share price is now 10% lower year to date and 9% lower than this time last year. There hasn't been any price-sensitive news out of the company recently to explain the decline, so it's most likely the result of a continued sector-wide sell-off of ASX healthcare shares. TradingView data suggests brokers are still bullish for the ASX 200 company's shares, with the majority holding a buy or strong buy rating on the stock. Brokers tip an average 20% upside to $34.86 over the next 12 months.

Ansell Ltd (ASX: ANN)

Ansell is another ASX 200 healthcare company that makes gloves and other personal protection equipment. Its shares have also been caught up in the widespread ASX healthcare sell-off. At the time of writing, Ansell shares are down 1.06% to $26.24 a piece, marking a 22-month low. Again, brokers are bullish about the outlook for the ASX 200 company's shares. Out of 12 analysts, seven have a hold rating and 5 rate the shares a buy or strong buy. Brokers tip an average 34% upside to $35.18 over the next 12 months. Some think the shares can rocket even further. The maximum $40.45 target price implies a potential 54% upside at the time of writing.

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman shares have hit a fresh 52-week low of $4.47 in Tuesday morning trade. The share price has now crashed 36% for the year to date after the sell-off accelerated in late February. The ASX 200 retail giant has faced strong headwinds over the past year on the back of renewed concerns about rising inflation and how it could impact consumer spending. Tighter household budgets mean Australians are spending less on discretionary items this year. At the same time, after a strong rally in mid-late 2025, it looks like investors quickly took their profits off the table in early 2026. TradingView data shows that analysts are relatively divided about the outlook for the shares, with several neutral ratings, but they mostly agree that the shares are now trading below fair value. The average target price on the ASX 200 retail shares is $5.76, which implies another 29% upside at the time of writing. 

Metcash Ltd (ASX: MTS)

Metcash shares have tumbled another 1.42% in morning trade to a new 52-week low of $2.78 a piece. It also represents the lowest point the shares have fallen to in nearly six years. The IGA network owner's shares have come under pressure following an underwhelming FY26 half-year result in December last year. It continues to face headwinds amid a tough retail environment and dwindling demand in its tobacco and liquor businesses. Analysts are mostly neutral on the outlook for the shares, but they do all agree that there will be some level of upside ahead. The average target price of $3.44 implies a potential 23% upside over the next 12 months, at the time of writing. 

The post These 4 ASX 200 shares have slumped to fresh 52-week lows: Buy, sell or hold? appeared first on The Motley Fool Australia.

The appeal is simple. Instead of relying purely on capital gains, your portfolio can start generating cash along the way.

But how much income can you realistically expect from a $50,000 ASX share portfolio?

Dividend income

Before jumping into numbers, I think it helps to understand what actually drives dividend income.

It comes down to the dividend yield of your portfolio and the types of businesses you own.

Some companies pay very little, choosing to reinvest for growth. Others return a larger portion of their earnings to shareholders. Most sit somewhere in between.

On the ASX, I think aiming for a yield of around 4% to 6% is a reasonable range if you are building a diversified income portfolio. That might include a mix of REITs, retailers, infrastructure assets, and more defensive names.

But the key is not chasing the highest yield available. It is about building something that can keep paying over time.

Building a portfolio that can support income

This is where stock selection starts to matter. For example, higher-yield shares like HomeCo Daily Needs REIT (ASX: HDN) and Harvey Norman Holdings Ltd (ASX: HVN) can help lift the overall income of a portfolio.

HomeCo Daily Needs benefits from steady rental income tied to everyday retail, while Harvey Norman combines retail earnings with a large property portfolio that can support dividends.

Around those, I would still look to include other reliable dividend payers to spread risk and create a more balanced income stream.

That way, you are not relying too heavily on any single company or sector.

So what does that look like in dollar terms?

Using a 5% dividend yield as a guide, a $50,000 portfolio could generate $2,500 per year in dividends.

That works out to roughly $48 per week.

It is not going to replace your income, but it is a meaningful starting point. More importantly, it is something that can grow.

What happens if you keep going?

This is the part I think often gets overlooked.

The first $2,500 is just the base income.

If you reinvest those dividends and continue adding to your portfolio, the income can start to build much faster.

For example, starting with $50,000 and adding $5,000 each year, a portfolio growing at an average of 9% annually could reach around $200,000 over time.

At a 5% yield, that would produce $10,000 per year in passive income.

At that point, it starts to feel much more significant.

Let compounding do the work

The difference between $2,500 and $10,000 does not come from taking more risk.

It comes from time, consistency, and reinvestment.

Each dividend payment buys more ASX shares. Each contribution increases your base. Over time, that creates a compounding effect where the income begins to accelerate.

That is when the strategy really starts to show its value.

Foolish takeaway

A $50,000 ASX share portfolio could generate around $2,500 a year in dividends at a 5% yield.

But I do not think that is the most important part. What matters is what you do next. By reinvesting dividends, adding new money, and staying consistent, that income stream can grow into something much larger over time.

The post How much could a $50,000 ASX share portfolio pay in dividends? appeared first on The Motley Fool Australia.

Using Harvey Norman Holdings Ltd (ASX: HVN) as an example, we can actually put a clear number on that.

How much is the Age Pension?

First, let's confirm the benchmark.

For a single person, the full Age Pension currently totals $1,200.90 per fortnight based on the latest government figures. That works out to $31,223.40 per year.

Now let's see how that compares to dividend income.

Turning an ASX dividend stock into a pension-like income

According to CommSec, Harvey Norman is expected to pay fully franked dividends of 31 cents per share in both FY26 and FY27.

At the time of writing, the Harvey Norman share price is trading at $4.54. This means that it is offering a potential dividend yield of around 6.8%, before franking credits.

To generate $31,223.40 per year from dividends alone, you would need approximately 100,720 shares.

Based on that requirement and its current share price, this implies an investment of roughly $457,269 into the ASX dividend stock.

Why I still think Harvey Norman is worth a look

Of course, income is only part of the story.

Harvey Norman has been sold off heavily in recent months, which is a big reason the dividend yield now looks so attractive. But the underlying business still has a few levers working in its favour.

One is its international expansion. The company continues to open new stores in markets like the UK, Malaysia, and parts of Europe, which provides a pathway for growth beyond Australia.

Another is its property portfolio. Harvey Norman owns a significant amount of retail real estate, which adds a layer of asset backing and long-term value that is easy to overlook.

There is also some support from the broker community. Bell Potter currently has a buy recommendation on the ASX dividend stock with a $6.70 price target. This suggests almost 50% potential upside on top of the income.

Foolish takeaway

If you are trying to replicate the income of the Age Pension using dividends, you would need around 100,720 Harvey Norman shares, or roughly $457,000 at today's price.

That puts into perspective the level of capital required to fully replace a government income stream.

Even so, for investors who are building toward that goal over time, high-yield ASX dividend stocks like Harvey Norman can play a role.

However, income investors should always ensure that they have a balanced and diversified investment portfolio, and not put all their eggs in one basket.

The post 100,720 shares of this high-yield ASX dividend stock pay income equal to the Age Pension appeared first on The Motley Fool Australia.