Consumer staples shares weren't far behind, surging 7.62%.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) rose 2.07% to 8,804 points by Friday's close.

Experts are now predicting an eventual cut for interest rates due to crumbling consumer confidence and low GDP growth.

Consumer sentiment fell in May to one of its weakest levels ever in the 50-year history of the benchmark monthly survey.

Softer-than-expected inflation also enhances the case for rates to be kept on hold or cut at some point.

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

On Friday, the ASX 200 rallied 1.98% after US President Donald Trump said a peace deal with Iran could be reached this weekend.

This would likely lead to the reopening of the Strait of Hormuz, a vital shipping route that carries 20% of the world's oil and gas.

The ongoing oil shock has contributed to resurgent inflation and three interest rate increases in Australia this year.

The Reserve Bank will announce the next interest rate decision on Tuesday.

It may seem counterintuitive that signs of economic weakness boosted ASX 200 retail shares last week.

But remember, share markets tend to look six to 12 months into the future.

Thus, economic weakness today is pushing retail stocks up as investors anticipate a greater likelihood of interest rate cuts.

Let's see how some individual retail stocks performed last week.

Consumer discretionary shares led the ASX sectors last week

The Wesfarmers Ltd (ASX: WES) share price leapt 9.55% over the short trading week to finish at $86.47.

Shares in gaming technology company Aristocrat Leisure Ltd (ASX: ALL) rose 5.07% to $53.91.

The Lottery Corporation Ltd (ASX: TLC) share price soared 8.81% to $5.68.

The Light & Wonder Inc (ASX: LNW) share price ripped 9.8% higher to $127.26.

JB Hi-Fi Ltd (ASX: JBH) shares ascended 7.6% to finish the week at $77.24.

The Harvey Norman Holdings Ltd (ASX: HVN) share price increased 7.88% to $4.79.

Temple & Webster Group Ltd (ASX: TPW) shares soared 13.09% to $5.27.

The Nick Scali Limited (ASX: NCK) share price rocketed 11.71% to $15.46.

Eagers Automotive Ltd (ASX: APE) shares rose 7.06% to $22.29.

The Super Retail Group Ltd (ASX: SUL) share price lifted 8.39% to $12.27.

Lovisa Holdings Ltd (ASX: LOV) shares surged 8.66% to $22.20 apiece.

ASX 200 travel share Flight Centre Travel Group Ltd (ASX: FLT) edged 0.36% higher to $11.07.

The Guzman Y Gomez Ltd (ASX: GYG) share price lifted 3.63% to $19.40.

ASX 200 market sector snapshot

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

Over the shortened trading week:

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

Well, the three shares in this article could be looking cheap after significant pullbacks.

Here's what you need to know about them:

Collins Foods Ltd (ASX: CKF)

The first ASX 200 share to look at is Collins Foods.

The KFC restaurant operator's shares are down approximately 20% this year, which has left it looking much cheaper than it did not long ago.

Collins Foods is not the kind of business that grabs attention like a high-growth technology stock. It operates in quick-service restaurants, where convenience, brand strength, and repeat customer behaviour are important.

Its core KFC operations give it exposure to one of the most recognised food brands in the world. That can be valuable during tougher economic periods, when consumers may still want affordable takeaway options but become more selective about bigger discretionary purchases.

Bell Potter is bullish on Collins Foods and has a buy rating and $10.80 price target on it.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX 200 share that looks cheap after a selloff is Lovisa.

Its shares are down approximately 37% over the past 12 months, which is a sharp fall for a company that has delivered extraordinary growth over the long term.

Lovisa's story is not just about selling affordable jewellery. It is about a retail model that can be rolled out across many countries with relatively small-format stores, fast product rotation, and a brand that appeals to fashion-conscious shoppers.

That gives the company a very different growth profile from many local retailers. Its opportunity is global, and management has already shown it can open stores across multiple regions.

Morgans thinks the company has a bright future. It recently put a buy rating and $32.50 price target on its shares.

ResMed Inc. (ASX: RMD)

A third ASX 200 share to consider is ResMed.

The sleep treatment company's shares are down almost 30% over the past 12 months, which is a notable pullback for a global healthcare leader.

ResMed's products sit in an area of healthcare that is still underpenetrated. Sleep apnoea remains widely undiagnosed, despite its links to fatigue, cardiovascular risk, and broader health outcomes.

That gives the company a long-term demand driver that is not tied to the economic cycle in the same way as retail or housing. People may delay some purchases when money is tight, but healthcare needs do not disappear.

Ord Minnett is a big fan of the company. Last week, it put a buy rating and $38.35 price target on its shares

The post 3 cheap ASX 200 shares to buy with $5,000 appeared first on The Motley Fool Australia.

Passive income received in superannuation in the retirement portion of life could be tax-free. Isn't that appealing?

Readers may be wondering how much an investor would need to receive a large amount of dividends each year. Let's take a look at the required amount for that goal.

$9,000 of passive income each month from superannuation

Getting $9,000 per month would be $108,000 each year. That'd be a very satisfactory amount for most Australians and could fund a comfortable lifestyle.

How large the nest egg needs to be to receive $108,000 per year essentially boils down to what the portfolio yield is.

For example, if someone's portfolio had an average dividend yield of 5%, they'd need a $2.16 million portfolio.

But, if the average dividend yield was 7.5%, an investor would need a $1.44 million portfolio.

If the average dividend yield were 3%, then an investor would require a portfolio size of $3.6 million.

There are plenty of options when it comes to aiming for these sorts of yields. I'll point to a few ASX shares below. I have invested in a number of the names below to create a diversified, strong portfolio with a good yield and still have compelling growth prospects.  

Which ASX dividend shares I'd buy

There isn't one right answer when it comes to investing for passive income in superannuation.

But it's true that a business with a lower dividend yield may be investing more of its earnings back into itself to drive more growth for shareholders.

Some of the impressive businesses with a lower dividend yield include Lovisa Holdings Ltd (ASX: LOV), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and Wesfarmers Ltd (ASX: WES). I expect pleasing compounding of the dividend payout over the next three to five years.

Some of the compelling ASX dividend shares with a dividend yield of around 5% are names like exchange-traded fund (ETF) WCM Quality Global Growth Fund (ASX: WCMQ), listed investment company (LIC) Long Short Fund Ltd (ASX: LSF) and industrial real estate investment trust (REIT) Centuria Industrial REIT (ASX: CIP).

Turning to the higher-yield options I'd consider, names that spring to mind include WCM Global Growth Ltd (ASX: WQG), Future Generation Australia Ltd (ASX: FGX), Future Generation Global Ltd (ASX: FGG) and WAM Microcap Ltd (ASX: WMI).

The post How much is needed in superannuation to target a $9,000 monthly passive income? 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.

That's why I think it's a good idea for investors to look at businesses that have a long and impressive growth runway.

In my view, two of the ASX shares that could outperform the S&P/ASX 200 Index (ASX: XJO) over the next decade are the ones below.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a fast-growing affordable jewellery retailer that focuses on younger shoppers with appealing products.

The ASX retail share's main growth tactic is to add more stores to its global network. In the FY26 half-year result, the company reported that between the end of FY25 and the end of the FY26 half-year period, it added 65 more stores, a rise of 6.3%.

Of those 65 locations, some of the highlights included four more stores in Australia, four in South Africa, 14 more in the UK, nine more in Germany, eight more in the US and nine more in Canada.

In my view, those core markets offer significant growth potential for Lovisa over the next decade.

I'm optimistic about how many more global stores the company can add in the next decade, particularly in countries where it has a small presence at this stage for the population size of the market, such as China, Vietnam, Spain, Poland, Canada and even the US.

In the HY26 report, the company reported more than 20% growth for its core revenue and net profit, which is an excellent rate of progress. I'm also hopeful its new business (initially in the UK) called Jewells can become a meaningful contributor in future years.

According to the forecast on CMC Invest, the business is projected to generate earnings per share (EPS) of $1.23 in FY28. That puts the ASX share's valuation at the time of writing at less than 19x FY28's estimated earnings.

Global X S&P World Ex Australia GARP ETF (ASX: GARP)

This exchange-traded fund (ETF) offers number of positives for investors.

For example, it invests in 250 global companies that have 'growth at a reasonable price' (GARP) characteristics.

The businesses in the portfolio need to have good growth with both strong sales and earnings growth.

They need to be good value, with an attractive price/earnings (P/E) ratio.

Finally, these businesses need to display quality, which is measured by the financial leverage and the return on equity (ROE).

By putting these elements together, that's a powerful combination for potential returns.

Offering great businesses at appealing value could lead to market-beating returns in the long-term and outperform many other ASX shares.

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

Passive income received in superannuation during the retirement phase has a good chance of being tax-free. How great is that?

So, the question is, how much would it take to receive a sizeable amount of dividends each year? Let's take a look.

$3,000 of passive income each month from superannuation

Receiving $3,000 equates to $36,000 per year. That's not a gigantic amount, but it could be enough to be an essential part of a retiree's finances.

How large the nest egg needs to be to receive $36,000 per year is largely related to what the portfolio yield is.

For example, if someone's portfolio had an average dividend yield of 3.6%, then they'd need a $1 million portfolio to receive $36,000.

But, if the portfolio average dividend yield was actually 7.2%, then an investor would only need a $500,000 portfolio.

If the portfolio had a 4.8% dividend yield then an invest would need a portfolio value of $750,000.

There are plenty of options when it comes to aiming for these sorts of yields, so I'll highlight a few names below. For my own portfolio, I have invested in a mix of names to create a strong dividend portfolio.

Which ASX dividend shares I'd buy

If an investor is targeting a relatively low (3.6%) passive income yield in superannuation, or outside of superannuation, then I'd consider names like investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Kmart and Bunnings owner Wesfarmers Ltd (ASX: WES), global jewellery business Lovisa Holdings Ltd (ASX: LOV) and funeral provider Propel Funeral Partners Ltd (ASX: PFP).

Among the mid-range yield (around 5%) names, I appreciate listed investment company (LIC) L1 Long Short Fund Ltd (ASX: LSF), industrial property owner Centuria Industrial REIT (ASX: CIP), farmland landlord Rural Funds Group (ASX: RFF), telco Telstra Group Ltd (ASX: TLS) and quality global shares-focused exchange-traded fund (ETF) WCM Quality Global Growth Fund (ASX: WCMQ).

Some of the higher-yield (more than 7%) names that I like include LICs WCM Global Growth Ltd (ASX: WQG), MFF Capital Investments Ltd (ASX: MFF), WAM Microcap Ltd (ASX: WMI), and diversified property landlord Charter Hall Long WALE REIT (ASX: CLW).  

The post How much is needed in superannuation to target a $3,000 monthly passive income? appeared first on The Motley Fool Australia.

Lovisa sells affordable jewellery across numerous markets through its global network of stores. At the end of the FY26 half-year result, it had 1,089 stores.

There are a number of reasons why the ASX dividend share is a compelling buy for both passive income and total returns.

Growing dividend

Every income investor probably wants to know what the dividend yield is for this business. I'll get to that soon, but I believe it's more important to see that the business is growing its dividend.

To me, dividend growth suggests the business isn't likely to give investors a passive income cut – those dividend payouts could be essential for someone's personal finances. A rising (sustainable) dividend also suggests that the company's earnings are headed in the right direction.

In the FY26 half-year result, Lovisa's board of directors decided to increase the interim dividend per share by 6% to 53 cents. In 2023, the interim dividend was 38 cents per share and in 2019 it was 18 cents per share.

I'm not sure how big the dividend will be in a few years' time, but the forecast on CMC Invest suggests the business could pay an annual dividend per share of $1.12 in FY28. At the current Lovisa share price, that translates into a dividend yield of 6.1%, including franking credits.

Global expansion

One of the main reasons to like Lovisa so much is that it's delivering rapid growth of its global store network in numerous markets. Some of the places it's in include Australia, New Zealand, Malaysia, China, Vietnam, South Africa, the UK, the USA, France, Germany, Spain, and plenty more.

Store expansion is a key driver of the ASX dividend share's financials. The HY26 store count reached 1,089, up 6.3% half over half and up 15.5% year over year. This helped Lovisa revenue rise 22.7% year over year and net profit increase 21.5%.

As long as the company's comparable store sales growth remains positive over time, I believe its global expansion will turn out successfully. In HY26, comparable store sales growth was 2.2.%, showing the benefit of scaling up.

Rising margins

Some businesses don't see much growth in their margins as they expand.

Lovisa is investing heavily in growth, so I'm not expecting every single result to have a higher profit margin.

The ASX dividend share reported in the HY26 result a gross profit margin of 82.9%, which has increased in each half-year result going back to FY21 when it was 77.2%. This is a strong tailwind for operating profit (EBIT) and net profit margin improvements.

By FY30, I think the business will be significantly more profitable and pay a larger dividend. At this lower price, I think it's a great price to buy.

The post 1 ASX dividend share down 48% I'd buy right now appeared first on The Motley Fool Australia.

But I think the three ASX growth shares in this article have the potential to grow at a rate that could support a doubling in under seven years.

That would need a return of just over 10% per year. Here's why I think they could achieve this.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is one of the more interesting global retail growth stories on the ASX.

The jewellery retailer has already expanded into more than 50 markets, but I do not think the store rollout opportunity is finished. In fact, that is the main reason I think the business could still have a lot of growth ahead.

Lovisa's model is attractive because it is simple, repeatable, and relatively capital-light compared with many larger-format retailers. It sells affordable fashion jewellery, has small stores, and can take the format into many different shopping centres and markets around the world.

It opened 85 new stores in the first half of FY26, with strong growth across Europe and the Americas.

Importantly, it achieved this with an attractive margin profile. Lovisa reported an underlying gross margin of 82.9% in the half. That gives the business a lot of room to invest in growth while still producing strong profitability.

There are risks. Retail execution matters, consumer spending can weaken, and international expansion is never easy. But if Lovisa can keep opening profitable stores and improving performance in existing markets, I think the business could be materially larger by the early 2030s.

Breville Group Ltd (ASX: BRG)

Breville is another ASX growth share I think has the right ingredients to outperform.

This is not just an appliance business. I think of Breville as a premium global consumer brand built around product quality, design, and the at-home coffee trend.

Coffee remains a major part of the growth story. Many consumers are still willing to spend on better machines, grinders, and accessories if it improves their daily routine. Breville has built a strong position in that market, particularly with its espresso machine range.

The company's record first-half performance was driven by double-digit revenue growth led by coffee. While tariffs have created pressure, Breville has been working through production diversification, pricing, and distribution mix to reduce the impact.

This is not a risk-free story either. Currency, tariffs, freight, consumer weakness, and competition can all affect earnings. But I think Breville has the kind of brand strength and global runway that could support strong long-term compounding if management keeps executing well.

Netwealth Group Ltd (ASX: NWL)

Netwealth is the third ASX growth share I think could double in under seven years.

The wealth platform business benefits from a powerful long-term trend. Financial advice is becoming more complex, and advisers need efficient platforms to manage client portfolios, reporting, administration, managed accounts, and investment options.

Netwealth has built a strong position as an independent platform, and its recent quarterly update showed the momentum is still there.

Total funds under administration reached $125.8 billion at the end of March, up 20.9% on the prior corresponding period. The company also reported $4 billion of net flows for the quarter, which helped offset weaker market movements.

That tells me the platform is still winning support from advisers and clients, even during volatile markets.

The key risk for me is valuation. High-quality platform businesses often trade on demanding multiples, so earnings need to keep growing. Competition from other platforms also remains a factor.

But if Netwealth can keep winning flows, adding accounts, and increasing platform scale, I think the long-term opportunity remains attractive.

Foolish Takeaway

I would not buy these ASX growth shares expecting a smooth ride. Lovisa depends on retail execution, Breville is exposed to global consumer demand, and Netwealth needs to keep attracting adviser flows in a competitive market.

But I think all three have genuine growth runways.

A doubling in under seven years is a high bar, but it does not require miracles. It requires strong businesses to compound faster than 10% per annum. In my view, these three ASX shares have enough quality, market opportunity, and growth potential to make that outcome possible.

The post 3 ASX growth shares I think can double in under 7 years appeared first on The Motley Fool Australia.

That does not mean share prices will rise in a straight line. They never do. But the right companies can use time to their advantage.

Here are three amazing ASX growth shares that could fit that mould.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa has turned a simple retail concept into a global rollout story.

The company sells affordable fashion jewellery through a store model that can be replicated across many markets.

Its appeal is the combination of global store growth and disciplined retailing. The business has already shown that its model can travel, and there are still large markets where its presence remains relatively small.

Fashion retail is not without risk. Consumer spending can soften and trends can shift. But Lovisa has a track record of moving quickly, keeping its ranges fresh, and maintaining a clear customer proposition.

If management continues to execute on its international expansion, this could be an ASX share with a very long runway for growth.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is one of the rare ASX technology companies that has built a world-class niche.

Its Visage platform helps hospitals manage and view medical images with speed and efficiency. That matters because medical imaging is becoming more data-heavy, while health systems are under pressure to improve productivity.

This ASX growth share is solving a real problem. Radiologists, who are in short supply, are dealing with larger scan files, rising workloads, and growing demand for faster results. Visage helps address this by making imaging workflows more efficient.

Pro Medicus has built a strong position in the United States, where major hospital networks can sign long-term contracts and expand usage over time. Once embedded, the software becomes a critical part of clinical operations.

Its valuation is often demanding, but the business quality is hard to ignore. With healthcare data volumes continuing to grow, Pro Medicus arguably remains one of the ASX's most compelling long-term growth stories.

Xero Ltd (ASX: XRO)

Xero is building around one of the most important workflows for small businesses: money.

Its cloud platform helps businesses manage accounting, payroll, invoicing, payments, and financial information. Once a business is running on Xero, the software can become deeply embedded in daily operations.

That creates a powerful base for long-term growth. Xero can add more customers, expand in larger markets, and increase the value of each subscriber by adding new services.

The company's opportunity in the United States remains particularly important. It is a large market, and Xero's position there is still much smaller than in Australia, New Zealand, and the UK.

The good news is that recent updates show that Xero is gaining traction there. If it can build on this, then the future could be very bright for this ASX growth share.

The post 3 amazing ASX growth shares to buy and hold forever appeared first on The Motley Fool Australia.

Consumer confidence has slumped toward historic lows as higher interest rates and cost-of-living pressures squeeze household spending. Unsurprisingly, retail share prices have taken a heavy hit.

Shares in Temple & Webster Group Ltd (ASX: TPW) fell another 6% on Wednesday to $4.98 after briefly touching a fresh 52-week low of $4.54 earlier in the session. Meanwhile, Lovisa Holdings Ltd (ASX: LOV) dropped 1.3% for the day and continues hovering near yearly lows.

Zooming out, the damage looks even more severe. Temple & Webster shares are down around 64% year to date, while Lovisa has fallen approximately 27%.

So, are these ASX retail stocks becoming bargain buys?

Temple & Webster: runway for expansion

Investors aggressively sold Temple & Webster shares on Wednesday after the online furniture retailer released FY26 guidance that appears to have disappointed the market.

The company expects FY26 revenue between $665 million and $675 million, representing growth of roughly 11% to 12% compared to the prior corresponding period. EBITDA guidance sits between $20 million and $22 million, implying growth of around 6% to 17%.

While those figures still point to expansion, investors likely hoped for stronger earnings momentum given the company's historical growth profile.

The broader retail environment also remains difficult. Consumer spending continues facing pressure from elevated interest rates, while housing activity has remained uneven across Australia. At the same time, investors have become far less willing to pay premium valuations for online retail growth businesses.

Still, Temple & Webster may retain a compelling long-term opportunity. Furniture, homewares and home improvement remain enormous retail categories, and the company still controls only a relatively small share of the overall market. That leaves significant runway for future expansion if spending continues shifting online over time.

Importantly, after collapsing roughly 82% from its all-time-high, a large amount of bad news may already be reflected in the share price.

For patient long-term investors, the ASX retail stock could become increasingly interesting at these lower levels.

Lovisa Holdings: global fast-fashion footprint

Lovisa tells a different but equally volatile retail story. The $2.5 billion ASX retail stock has built a global fast-fashion jewellery empire through rapid product turnover and quick responses to changing consumer trends. Its ability to adapt quickly has been one of the company's greatest strengths.

But the bigger attraction remains international expansion. Lovisa has aggressively rolled out stores across Europe, the US and Asia, creating a substantial long-term growth runway if execution remains strong. That global footprint continues separating Lovisa from many smaller domestic retail competitors.

However, investors have become increasingly cautious. Cost inflation, weaker consumer spending and concerns around profit margins have all weighed heavily on sentiment. Retail businesses remain highly sensitive to economic conditions, and Lovisa is not immune to those pressures.

Still, if consumer confidence eventually improves and global store expansion continues delivering results, the recent weakness in Lovisa shares may start looking far more attractive in hindsight.

According to TradingView 8 out of 15 the analysts covering the ASX retail stock rate it a buy or strong buy. The average 12-month price target is set at roughly $30, which points to a 38% upside.

The post These ASX retail stocks are near 52-week lows, are they bargain buys? appeared first on The Motley Fool Australia.

Investing for passive income in superannuation makes a lot of sense because of the low tax rate.

It's important to remember that the net income we receive from our investments is what we receive after taxes. An Australian working full-time could end up losing a third of their passive income to tax.

Therefore, investing in superannuation is a much more appealing prospect. Super has a lower tax rate in the accumulation phase compared to normal individual tax rates for a full-time earner. In retirement, the tax rate could be 0%.

But every Australian's tax position is different, so I'm just going to talk about targeting a certain income level, without mentioning tax any further.

How much is needed in superannuation for $5,000 of monthly passive income?

Receiving $5,000 per month of dividends translates into $60,000 annually. I'm sure most Australians would love to receive that level of dividends each year without having to do any ongoing work for it.

A key question is deciding what sort of investments Australians want to own and the dividend yield that comes with them.

A portfolio with a dividend yield of 6% can be half the size of a portfolio with a dividend yield of 3%.

For example, if a portfolio is $1 million in size with a 6% dividend yield, it would create $60,000 of annual passive income. If a portfolio had a dividend yield of 3%, the portfolio would need to be $2 million in size.

If the portfolio had an average dividend yield of 4%, generating an average of $5,000 in monthly passive income would require a portfolio value of $1.5 million.

The final dividend yield we'll look at is 5%. It would take a portfolio value of $1.2 million to unlock $60,000 of annual dividends.

The sorts of ASX dividend shares I'd look at

There is a wide range of ASX dividend shares available for superannuation investments, some of which offer higher yields and others that have lower yields (but could deliver more growth).

Some of the lower-yielding names that I'd look at, which could provide solid dividend growth in the coming years, are: Wesfarmers Ltd (ASX: WES), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), and Lovisa Holdings Ltd (ASX: LOV).

A few mid-range yielding ideas that could provide solid total returns at current valuations include WCM Quality Global Growth Fund (ASX: WCMQ), Telstra Group Ltd (ASX: TLS), Australian Foundation Investment Co Ltd (ASX: AFI), and Centuria Industrial REIT (ASX: CIP).

A few of the higher-yielding names that I'm bullish about for the long-term include WCM Global Growth Ltd (ASX: WQG), Charter Hall Long WALE REIT (ASX: CLW), and Hearts and Minds Investments Ltd (ASX: HM1).

The post How much is needed in superannuation to target a $5,000 monthly passive income? appeared first on The Motley Fool Australia.

I want to focus on two businesses that I think are likely to see their earnings largely unaffected during this difficult period.

If I were looking for long-term investment ideas, the two below are ones I'd heavily consider today.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is fast-growing jewellery business with a sizeable presence in numerous markets including Australia, New Zealand, Singapore, Malaysia, South Africa, the UK, France, Germany, the Netherlands, Poland, Italy, the US and Canada.

One of the main reasons I think Lovisa could perform strongly during this period is because of its target market, which is a relatively young demographic. Rising interest rates is a problem for borrowers, which is a significant chunk of Australians and in citizens Lovisa's other important markets.

But, young shoppers don't usually have a mortgage or other forms of debt, so Lovisa's consumer base may not be as impacted during this period.

The company performed resiliently a few years ago and I'm expecting it to do well again during this period. Plus, the business continues to expand its global store network, giving it the potential to further grow its total sales, even if comparable sales growth for its existing stores may slow (or go negative) in the time being.

In the FY26 half-year result, the business reported its Lovisa store network increased 15.5% to 1,089, underlying revenue grew 22.7% to $498.1 million and net profit after tax (NPAT) rose 20.4% to $109.1 million.

In five years, I think this ASX share will have a much larger store network, stronger scale benefits and pleasingly higher revenue.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is a diversified investment house, with a defensive portfolio, which positions it well for the current situation.

For starters, it has a large investment in ASX energy share New Hope Corporation Ltd (ASX: NHC), which could see higher earnings amid the disrupted energy supply situation in the Middle East.

Soul Patts is also invested in a number of other sectors that could see resilient or growing earnings such as industrial properties, swimming schools, agriculture, telecommunications and credit.

I was impressed by the company's FY26 half-year result. Net cash flow from investments rose 15.4% year-over-year, the pre-tax net asset value (NAV) return was 9.7% and the interim dividend per share was hiked by 9.1%.

On top of that, remember that as an investment house, Soul Patts has the ability to buy (and sell) investments and take advantage of price changes.

Soul Patts has been an effective investment company for many decades and I'm expecting it to continue to perform for many years to come because of its smart investment strategy and its ability to adjust its portfolio.

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I understand that. A fast-growing company may reinvest heavily and pay little income, while a mature dividend stock may offer yield but limited growth.

But I do not think investors always have to choose. Some ASX shares can offer a useful blend of both.

Two that stand out to me today are named below.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is not the highest-yielding stock on the ASX, but I think its approximate 3% dividend yield looks appealing when combined with the quality of the business.

For me, Wesfarmers is a growth and income stock because it has more ways to win than many large companies.

Bunnings remains the obvious powerhouse. It has a strong market position, a trusted brand, and exposure to home improvement spending across both consumer and commercial customers.

But the broader group is what makes Wesfarmers more interesting. Kmart continues to benefit from its value positioning, which I think is particularly useful when households are watching their spending. Officeworks gives exposure to education, small business, and technology spending. Wesfarmers Health is still being reshaped and could become a more meaningful contributor over time.

Then there is the lithium exposure through WesCEF, which adds a very different growth angle.

Overall, I think Wesfarmers shares are a buy because the company has a long record of reinvesting sensibly, improving its businesses, and returning cash to shareholders. That combination is exactly what I like in a long-term holding.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is the higher-growth pick of the two.

The jewellery retailer has built a global rollout model that still looks very powerful to me. It sells affordable fashion jewellery, which gives it a relatively simple product proposition, but the execution is what makes the business stand out.

Lovisa can open stores in many different markets, keep formats small, and use its buying, merchandising, and pricing model to generate strong returns. That gives the company a long runway if it keeps executing well internationally.

Its first-half results showed total revenue rising 23.3%, supported by store network growth and comparable store sales growth. Lovisa opened 85 new stores during the half and finished the period with 1,095 stores across more than 50 markets.

Importantly for income investors, it also lifted its interim dividend to 53 cents per share, 50% franked. That is why I think Lovisa is so interesting as a growth and income stock.

The dividend yield of around 3.2% is already useful, but the real appeal is that the income could grow over time if the global store rollout continues successfully.

There are risks. Fashion retail can be competitive, consumer spending can shift, and international expansion is never automatic.

But Lovisa's model has already travelled across many markets, and I think that gives investors a reason to stay optimistic.

Foolish takeaway

If I were looking for ASX shares that offer both growth and passive income, Wesfarmers and Lovisa would be high on my list.

They are very different businesses, but both offer dividends today and the potential for a larger business tomorrow.

The post 2 ASX shares I would buy for both growth and passive income today appeared first on The Motley Fool Australia.

If someone has significant money in superannuation, they could unlock $10,000 of monthly passive income (or even more).

I'm sure most people reading this would love for their superannuation to pay them $120,000 per year of passive income.

A key question is how much is needed in superannuation for that level of cash flow.

How much is needed to generate $10,000 monthly passive income?

It'll take a sizeable sum to make that much money, but the exact amount will depend on the size of the dividend yield. The bigger the dividend yield, the less that needs to be invested, though higher yields may not be safer and it could also mean less capital growth.

Nonetheless, there are plenty of appealing options for good dividend yields across the ASX share market, so I'd be very willing to invest in a business that has a dividend yield of 7% or more.

Let's look at three different scenarios. One where the portfolio dividend yield is 4%, one where it's 5.5% and one where it's 7%.  

To make $120,000 of annual passive income from superannuation (or outside super) with a 4% dividend yield, it would require a portfolio value of $3 million.

If the portfolio has a 5.5% dividend yield, then an investor would need a portfolio value of $2.18 million.

Finally, with a dividend yield of 7%, investors would need a portfolio value of $1.71 million.

Which ASX shares I'd buy for dividend

I think there are a number of compelling options that offer different dividend yield levels.

For example, businesses like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES) and Lovisa Holdings Ltd (ASX: LOV) offer a lower but growing dividend yield.

Businesses with a mid-range yield includes Rural Funds Group (ASX: RFF), Centuria Industrial REIT (ASX: CIP), L1 Long Short Fund Ltd (ASX: LSF) and MFF Capital Investments Ltd (ASX: MFF).

The higher-yield options I'd consider include WCM Global Growth Ltd (ASX: WQG), Hearts and Minds Investments Ltd (ASX: HM1), Charter Hall Long WALE REIT (ASX: CLW), Future Generation Australia Ltd (ASX: FGX) and Future Generation Global Ltd (ASX: FGG).

The post How much is needed in superannuation to target $10,000 of monthly passive income? appeared first on The Motley Fool Australia.

The business is best-known as an affordable jewellery retailer across its global Lovisa store network. It also has a start-up business in the UK called Jewells.

I think it's one of the leading retail businesses to watch over the next five years because of how much it could expand its reach.

Global growth aspirations

The business has dramatically expanded over the past decade, with its Lovisa network reaching 1,089 locations as reported in its FY26 half-year result.

Its store new work grew 15.4% on the prior year and 6.3% compared to the previous equivalent half.

Over the 12 months to December 2025, it added at least one store to the following markets: Australia, New Zealand, China, Vietnam, South Africa, Botswana, Zambia, the UK, Ireland, Spain, France, Germany, Belgium, the Netherlands, Poland, Italy, Hungary, UAE, USA, Canada, Mexico and its Middle East and Africa franchise.

Those regions offer the company a huge addressable market and a very long growth runway, making it one of Australia's most compelling shares.

If an ASX share can continue growing at a good pace for a very long time, it can generate great shareholder returns thanks to compounding.

Strong profit growth rate

Lovisa is aiming to grow its earnings over the long-term with its store network expansion, and that's coming through in the numbers.

Excluding the Jewells business, Lovisa reported that in HY26, its revenue soared 22.7% to $498.1 million (with 2.2% comparable store growth) and net profit after tax (NPAT) climbed by 21.5% to $69.6 million.

I think most businesses on the ASX would be delighted to grow underlying net profit by more than 20%. The profit growth rate is a key reason for my view that it's one of Australia's top shares.

Its increasing scale is helping some of its profit margins rise (despite the significant investing in expanding its store network). The core Lovisa business saw gross profit increase by 23.4% and operating profit (EBITDA) rose 24.4%.

According to the forecast on Commsec, the business is valued at 27x FY26's estimated earnings, with expectations that the company's earnings per share (EPS) could increase by 23.8% in FY27.

It looks much better value after falling 44% since August 2025, as the chart below shows.

Dividend cash payments

Shareholders consistently benefit from owning the business due to its growing dividend payments, which is another factor which makes this one of Australia's top shares, in my view.

I think it's good to see that the business is rewarding shareholders because investors aren't purely relying on capital growth to see improvements in their financials.

In the HY26 result, Lovisa decided to hike its payout by 6% to 53 cents per share.

The projection on Commsec suggests the business could increase its payout to approximately 99 cents per share in FY27 and then $1.13 per share in FY28.

At the current Lovisa share price, it offers a potential dividend yield of 5.7%, including franking credits, at the time of writing.

These are some powerful factors combining together that could lead to solid returns in the coming years.

The post A rare buying opportunity in 1 of Australia's top shares? appeared first on The Motley Fool Australia.

That often means focusing on Australian shares with scalable models, strong competitive positions, and exposure to long-term trends.

Here are three ASX shares that could fit that profile.

Life360 Inc (ASX: 360)

One Australian share building momentum through scale is Life360 Inc.

This technology company has developed a global platform centred on family connectivity and safety. Its app sits on users' phones and becomes part of their daily routine, which helps drive engagement over time.

Another positive is how the company is expanding beyond its core offering. It is layering in additional services such as driver protection and emergency assistance, creating more opportunities to increase revenue per user.

The size of its user base provides a foundation for this strategy. As more users join the platform, even small improvements in monetisation can have a meaningful impact on earnings.

With engagement already established and additional services being rolled out, Life360 shares offer exposure to a business that is still early in its monetisation journey.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is approaching growth from a different angle.

Instead of relying on a single market, the company is steadily building a global retail footprint. Its store network continues to expand across regions, supported by a fast product cycle that keeps ranges aligned with current trends.

A key part of the model is its ability to execute consistently. New stores are opened at a steady pace, and the company has shown it can translate that expansion into sales growth.

This rollout strategy means growth does not depend on one breakthrough moment. It comes from repeating a model that has already proven effective across multiple markets.

As long as store expansion continues at pace, Lovisa remains closely tied to a strategy that can drive earnings higher over time.

Megaport Ltd (ASX: MP1)

Megaport is an Australian share that offers exposure to the infrastructure behind cloud computing and AI.

Its platform allows businesses to connect to cloud providers and data centres on demand, creating flexibility compared to traditional network solutions.

The company benefits from the ongoing shift toward cloud-based services. As more businesses move workloads online, the need for efficient connectivity continues to grow.

In addition, it recently completed the acquisition of Latitude.sh, which expands its addressable market beyond connectivity into compute.

As cloud adoption continues to build globally, Megaport is positioned to benefit from that increasing demand.

The post What are the best Australian shares to buy now to try and make a million? appeared first on The Motley Fool Australia.

A good number of ASX growth shares have been sold off over the past 12 months and still trade at a deep discount.

While this is disappointing for growth investors, it could have created a very attractive buying opportunity for those with capital to deploy.

With that in mind, here are three ASX growth shares that could be top picks right now:

Lovisa Holdings Ltd (ASX: LOV)

The first ASX growth share that could be a buy is Lovisa.

It is a fast-growing fashion jewellery retailer that is in the middle of an ambitious global expansion. At last count, the company was operating over 1,000 stores across more than 50 markets.

But management isn't settling for that and continues to open new stores across the globe.

Morgans has named Lovisa as one of its top picks in the retail sector, highlighting the company's scalable store model and strong brand appeal.

The broker currently has a buy rating and $36.80 price target on its shares. Based on its current share price, this implies potential upside of 50% over the next 12 months.

TechnologyOne Ltd (ASX: TNE)

Another ASX growth share that could be worth considering is TechnologyOne.

It is a leading developer of enterprise software for governments, universities, and large organisations. These customers tend to be sticky, long-term users, which gives the company a high level of revenue visibility.

Its shift to a software-as-a-service model has been a huge success, delivering consistent annual recurring revenue growth and strong cash generation. But if you thought its growth was coming to an end, think again. Management believes it can double the size of its business every five years.

And while its shares have recovered from their lows, UBS still sees plenty of upside. It currently has a buy rating and $38.70 price target on its shares, which implies potential upside of almost 30%.

WiseTech Global Ltd (ASX: WTC)

A final ASX growth share that could be a top buy is logistics solutions technology company WiseTech Global.

Its CargoWise platform sits at the core of global freight and logistics operations. It is deeply embedded in customers' workflows, with high switching costs and recurring subscription revenue.

Its share price has been pressured by broader tech sector weakness and AI disruption concerns. However, this type of software is very complex and would be very hard for AI to disrupt.

It is for that reason that Bell Potter put a buy rating and $78.75 price target on its shares this week. This suggests that over 70% upside is possible from current levels.

The post 3 stellar ASX growth shares to buy now with 30% to 70% upside appeared first on The Motley Fool Australia.

Among the 11 market sectors, technology is in the lead today, up 0.5%, amid a sharp rally for the sector this month.

The energy sector is the laggard, down 1% today, as the world awaits a second round of talks between the US and Iran.

Meanwhile on the The Bull this week, two experts give us their views on three ASX 200 shares.

Let's check them out.

Aristocrat Leisure Ltd (ASX: ALL)

The Aristocrat share price is $48.61, down 0.6% today and down 24% over the past six months.

Dylan Evans from Catapult Wealth has a buy rating on this ASX 200 gaming share.

Evans said:

Aristocrat's share price has fallen considerably this calendar year, driven partly by the fear of artificial intelligence (AI) competition and currency related issues.

While AI does increase the risk of competition via new entrants, particularly in the online space, the highly regulated nature of the industry provides some protection for Aristocrat.

We believe any risk to Aristocrat's position is overblown, and this weakness presents an opportunity to buy a company with a strong history of earnings growth at the lower end of its historic multiples range.

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price is $24.65, down 0.8% today and down 36% over six months.

A rebound appears underway for this ASX consumer discretionary share.

The Lovisa share price has risen 17% over the past month alone.

Christopher Watt from Bell Potter has a hold rating on Lovisa shares.

This global fashion and jewellery accessories retailer continues to deliver a strong store roll-out and resilient sales growth, supported by its global expansion strategy.

However, in our view, much of its growth is already reflected in the company's valuation, with execution risk increasing as the store base matures.

While margins remain robust and the brand continues to resonate with consumers, the pace of expansion may moderate over time.

Lovisa remains a high quality retailer, but at current levels, a more balanced risk-return profile justifies a hold rating.

Bendigo and Adelaide Bank Ltd (ASX: BEN)

The Bendigo Bank share price is $11.03, down 0.5% today and up 4% in the year to date.

Watt has a sell rating on this ASX 200 financial share, explaining:

The market responded positively to the company's third quarter trading update for fiscal year 2026.

Unaudited cash earnings were up 7.6 per cent on the first half quarterly average. The net interest margin of 1.98 per cent was up 6 basis points on the second quarter of 2026.

In our view, catalysts to drive improvement from here are limited.

The risk-reward profile lags other peers, so we would be inclined to cash in gains in this volatile environment.

The post Buy, hold, sell: Aristocrat, Lovisa, Bendigo Bank shares appeared first on The Motley Fool Australia.

Breville Group Ltd (ASX: BRG) is quietly building a global premium brand, while Lovisa Holdings Ltd (ASX: LOV) is scaling a fast-fashion jewellery model across the world.

Both growth stocks have faced pressure recently, but their international growth stories could set them up for strong long-term returns.

Breville: Compelling long-term play

Starting with Breville. This ASX stock is often labelled as a kitchen appliance company, but that undersells what's really happening.

Breville has spent years positioning itself as a premium global brand. Its products don't compete on price. Instead, they focus on quality, design, and performance. That strategy has helped it carve out a loyal customer base and expand successfully into key international markets, particularly the US.

As brand recognition grows, so does its ability to scale. This is where the long-term opportunity lies. Building a brand takes time, but once established, it becomes a powerful competitive advantage that's difficult for rivals to replicate.

That brand strength can translate into pricing power, higher margins, and sustained growth over time. It's not a quick win, but it's a compelling long-term play.

Analysts at Morgans are positive on the outlook, maintaining a buy rating and a $40.65 price target on the ASX stock. That suggests a 39% upside at current price levels.

Lovisa: Rapid turnover and trend agility

Then there's Lovisa, which has taken a very different path, but with equally global ambitions.

This $2.5 billion ASX stock has built a fast-fashion jewellery empire, driven by a model that emphasises rapid product turnover and trend responsiveness. Its ability to quickly adapt to changing consumer tastes has been a key driver of success.

The real story, though, is expansion. Lovisa has rolled out stores across Europe, the US, and Asia, and still has a long runway for further growth. This international footprint is what makes the business so appealing over the long term.

However, the market has become more cautious.

Cost inflation, softer consumer spending, and concerns about margins have weighed on sentiment. Retail is highly sensitive to economic conditions, and Lovisa is not immune to those pressures.

That caution is reflected in analyst views. Bell Potter Securities recently retained a hold rating on the ASX stock but cut its price target to $24 from $33.50, a notable downgrade. From current levels, that suggests modest downside in the near term.

Still, short-term challenges don't necessarily derail a long-term growth story. If Lovisa can continue executing its global rollout and maintain its fast-fashion edge, the business could keep expanding well beyond its current footprint.

The post 2 ASX growth stocks to buy now and hold until 2036 appeared first on The Motley Fool Australia.

Quarterly updates, shifting sentiment, and macro noise can dominate the conversation. But some of the most successful investments come from recognising businesses that are quietly building something much bigger over time.

Here are three ASX growth shares that could be doing exactly that.

Breville Group Ltd (ASX: BRG)

The first ASX growth share that stands out is Breville.

At first glance, it is a kitchen appliance company. But that description does not fully capture what is happening beneath the surface.

Breville has been steadily building a global premium brand. Its products are not competing on price. They are competing on quality, design, and performance.

This positioning has allowed the company to expand successfully into international markets. As brand recognition grows, so does its ability to scale.

What makes this interesting is that brand-building takes time. But once established, it can become a powerful competitive advantage that supports long-term growth.

Morgans is a fan of the company and has a buy rating and $40.65 price target on its shares.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX growth share that could be destined for a big future is Lovisa.

The fast-fashion jewellery operator has successfully demonstrated it can replicate its store model across different regions with consistency. New stores are opening globally, and many are reaching profitability quickly.

This creates a repeatable growth engine. And Lovisa is not expanding slowly; it is moving aggressively into new markets, which could significantly increase its footprint over the next decade.

If that rollout continues successfully, the business could look very different in scale over time.

Morgans is also a fan of this one and recently put a buy rating and $36.80 price target on its shares.

Xero Ltd (ASX: XRO)

A final ASX growth share that could be quietly building something significant is Xero.

It has already established itself as a leading cloud accounting platform. But the opportunity may extend well beyond that.

The company is increasingly becoming part of a broader ecosystem that connects small businesses, accountants, and financial services.

This creates multiple pathways for growth through new customers and by offering more services (like AI assistants) to existing ones.

As this ecosystem expands, Xero's role in managing financial workflows could become even more central.

The team at Morgan Stanley is positive on the investment opportunity here. It recently put an overweight rating and $130.00 price target on its shares.

The post Are these the best ASX growth shares to buy and hold for 10 years? appeared first on The Motley Fool Australia.