ASX 200 shares are already up 5.6% in the new financial year.

This is significant given the lacklustre growth rate of 2.8% over FY26 (total return, including, dividends was 7%).

Among the 11 market sectors today, materials is in the lead, up 1.4%, while utilities is the laggard, down 0.7%.

Meanwhile, brokers have indicated continuing confidence in several ASX 200 shares this week.

Let's check out some renewed buy ratings.

Life360 Inc (ASX: 360)

The Life360 share price is $29.18, down 1.2% today and down 26% over 12 months. 

Bell Potter renewed its buy rating on the ASX 200 tech share on Tuesday.

The broker has a 12-month price target of $35.

This suggests a potential 20% upside ahead.

BHP Group Ltd (ASX: BHP)

The BHP share price is $62.92, up 0.6% today and up 58% over 12 months.

Morgan Stanley reaffirmed its buy rating on the market's largest ASX 200 mining share today.

The broker has a 12-month target of $67, which suggests a potential 6% upside ahead.

Capricorn Metals Ltd (ASX: CMM)

The Capricorn Metals share price is $14.70, up 3.6% today and up 50% over 12 months. 

Bell Potter reiterated its buy rating on Monday after reviewing the miner's June quarter report.

The broker increased its 12-month target on the ASX 200 gold share from $16.70 to $17.80.

This suggests a potential 21% upside ahead.

Analyst David Coates said:

CMM is run by a management team that has an excellent track record of delivery.

CMM is a sector leading gold producer, unhedged and debt free. It is fully funded to grow production from ~120kozpa to +400kozpa from two gold mines in WA.

National Australia Bank Ltd (ASX: NAB)

The NAB share price is $42.78, up 0.6% today and up 10% over 12 months. 

UBS reaffirmed its buy rating on the ASX 200 bank share with a 12-month price target of $50 this week.

This suggests a potential 17% upside ahead.

Droneshield Ltd (ASX: DRO)

The Droneshield share price is $2.30, up 5% today and down 44% over 12 months. 

Canaccord Genuity renewed its buy rating on Droneshield shares with a $2.80 target this week.

This suggests a potential 22% upside ahead.

South32 Ltd (ASX: S32)

The South32 share price is $4.83, down 1% today and up 63% over 12 months. 

Morgan Stanley renewed its buy rating on South32 shares this week.

The broker raised its 12-month price target from $4.75 to $4.80.

This suggests the ASX 200 mining share is already fully valued.

Qantas Airways Ltd (ASX: QAN)

The Qantas share price is $10.66, up 0.5% today and down 4% over 12 months. 

Jefferies renewed its buy call on the ASX 200 airline share on Tuesday.

The broker has an $11.91 target, suggesting a 12% upside from here.

Breville Group Ltd (ASX: BRG)

The Breville share price is $35.02, up 2.3% today and up 6% over 12 months. 

Citi reiterated its buy rating on the ASX 200 consumer discretionary share this week.

The broker has a price target of $39.85, implying a potential 14% upside ahead.

The post 8 ASX 200 shares with renewed buy ratings this week appeared first on The Motley Fool Australia.

Its dividend will naturally attract plenty of attention, but I think there are even more reasons to take a closer look at the bank today.

Here are three reasons I would be comfortable investing $10,000 in NAB shares.

An attractive fully franked dividend

NAB's dividend is of course one of the main reasons I would consider investing today.

According to CommSec consensus estimates, the bank is expected to pay fully franked dividends of $1.70 per share in FY26 and $1.72 per share in FY27. At a share price of around $42.53, that represents a forward dividend yield of roughly 4% in both years, before the potential benefit of franking credits.

This means that a $10,000 investment, which would buy approximately 235 shares before brokerage, could generate close to $400 in annual cash dividends.

NAB share price valuation looks fair

NAB shares have performed strongly over the past few years, so I would still want to make sure I was paying a sensible price.

Based on the current share price and consensus forecasts, NAB is trading on a PE ratio of approximately 17.5 times FY26 earnings and 16.8 times FY27 earnings.

I think that is a fair valuation for a major Australian bank offering attractive fully franked income and modest earnings growth.

The shares could still come under pressure if bad debts rise, interest margins weaken, or competition intensifies.

However, I would be comfortable accepting those risks at the current valuation. NAB does not need spectacular earnings growth to produce a solid return if it can maintain its dividend and gradually increase profits over time.

Business banking provides another growth avenue

NAB's position in business banking is probably the strongest reason I would choose it over some of its major rivals.

Australian business lending increased by 5.6% during the first half of FY26, with the bank gaining market share across both small and medium-sized enterprises and the wider business lending market. Business and private banking cash earnings also rose by 12.3% compared with the prior corresponding period.

I like this because the Australian retail banking market remains highly competitive, particularly in home loans, and recent changes to negative gearing and higher interest rates could weigh on the housing market. NAB's business franchise gives it another way to grow without relying as heavily on mortgage lending.

NAB still has plenty of exposure to Australian households and housing. But its strength in business banking provides an additional earnings engine that I believe could become increasingly valuable.

Foolish takeaway

I would be comfortable investing $10,000 in NAB shares at current levels.

The bank can provide income today while still offering some potential for earnings and dividend growth. Its business banking position also gives NAB a valuable point of difference in a difficult retail banking environment.

I think it could be the type of investment that quietly delivers solid returns over many years.

The post 3 reasons I'd invest $10,000 in NAB shares today appeared first on The Motley Fool Australia.

Your superannuation offers the opportunity to receive concessional tax treatment, and you get the chance to grow your balance through the power of compounding.

Once you retire and move into the pension phase, your super can also provide a regular stream of passive income.

But how much superannuation do you need to accumulate to generate a passive income high enough to live comfortably on? 

Here's a breakdown, using a target of $8,000 a month in passive income as an example.

How much do I need in my superannuation to get a $8,000 monthly passive income?

First you need to work out what $8,000 per month translates to over the year.

So, $8,000 x 12 = $96,000.

Then you'll need to divide your annual passive income ($96,000) by the dividend yield of your overall portfolio. 

For example, $96,000 ÷ 3% = $3.2 million (that's the superannuation portfolio size you'd need).

The trick is that the answer varies significantly depending on the dividend yield of your portfolio.

For example, a superannuation portfolio with a dividend yield of around 6% only needs to be around half the size of one with a dividend yield of around 3% to generate the same level of passive income.

Ok, so what balance do I need for a portfolio yielding 4%, 5% and 6%?

Say your overall portfolio has a slightly higher dividend yield of around 4%, you'll need a balance of around $2.4 million to earn the same $96,000 per year (equivalent to $8,000 per month) in passive income. That looks like: $96,000 ÷ 4% = $2.4 million.

Then, if the yield of your portfolio is around 5%, your superannuation balance would need to be closer to $1.9 million to earn the same dividend income.

For a 6% yielding portfolio, you'd need a balance of closer to $1.6 million to earn the same amount.

And so on…

Note that most ASX dividend shares pay dividends on a semi-annual or yearly basis. This means that while you could target the equivalent of $8,000 per month in passive income, you won't actually receive the money on a month-by-month basis, but instead in a lump sum.

What ASX shares can I buy that yield 3-6%?

There are a huge number of ASX dividend shares available for superannuation investment. 

Here are some of my favourites.

For ASX shares yielding around 3% I'd pick large-cap blue-chips like BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), Woolworths Group Ltd (ASX: WOW), or Macquarie Group Ltd (ASX: MQG).

ASX shares yielding around 4% would be something like banking giants National Australia Bank Ltd (ASX: NAB) or ANZ Group Holdings Ltd (ASX: ANZ), Telstra Group Ltd (ASX: TLS), or Nick Scali Ltd (ASX: NCK).

For 5% yielding ASX shares, my picks would be Woodside Energy Group Ltd (ASX: WDS), Sonic Healthcare Ltd (ASX: SHL), TPG Telecom Ltd (ASX: TPG) or Servcorp Ltd (ASX: SRV).

And then for 6% yielding options, I'd opt for something like Metcash Ltd (ASX: MTS), Origin Energy Ltd (ASX: ORG), or Dexus (ASX: DXS).

The post How much superannuation is needed to target $8,000 per month in passive income? appeared first on The Motley Fool Australia.

ASX bank stocks are generally considered cyclical, rather than traditional defensive shares. But large-scale banking majors like NAB also have some defensive qualities.

What makes NAB stand out from the other banks is that it earns a large portion of its revenue from loans and deposits. This means it is able to create a steady stream of net income.  

The bank also has exposure to business banking and holds a leading market position in Australian business and SME banking. This, combined with home lending, means NAB has a more diversified earnings base than other banking majors that lean heavily into residential mortgages.

And this is great news for its investors looking for passive income.

Like its peers, NAB is also huge in scale. It is the fourth-largest company on the Australian sharemarket, by market capitalisation, and the third-largest Australian bank.

What's the latest from NAB shares?

At the time of writing, NAB shares are trading for $42.68 a piece. That's around 1% increase for the year-to-date, and 12% higher than 12 months ago.

NAB shares surged to an all-time high of $49.10 in February this year but quickly crashed back down. The impressive thing is that NAB shares have now rebounded around 20% from when the shares reached an annual low in June. 

NAB's share price recovery is one thing, but what does the bank's passive income look like?

Let's break it down.

What is NAB forecast to pay shareholders in FY27?

NAB has been paying regular dividends to shareholders since 2003.

The bank usually pays two fully-franked dividend payments per year, in July and December. 

NAB paid its shareholders an interim dividend of 85 cents per share, fully franked, last month.

Based on the latest forecasts, the bank is expected to pay a total dividend of $1.70 per share in FY26 (ending 30th September). 

NAB is then forecast to pay $1.72 per share in FY27. 

At the time of writing, that translates to a forward dividend yield of around 

Based on the current share price of $37.86, that translates to a forward dividend yield of nearly 4% for FY26. For FY27, the dividend yield is just over 4%. 

How many NAB shares do I need to buy to generate $10,000 in passive income from dividends?

At the time of writing, NAB shares are trading for $42.68 a piece. 

Assuming NAB pays the expected $1.70 per share dividend in FY26, investors would need to buy around 5,882 shares in order to earn around $10,000 per year in passive income.

To earn the same amount in FY27, assuming the bank pays the forecasted $1.72 per share dividend, investors would need to buy around 5,813 shares to earn roughly the same amount.

What will that cost me?

Using the current trading price of $42.69.

That means, in order to buy the 5,882 NAB shares needed for a $10,000 annual passive income in FY26, you would need to invest around $251,100.

For the same level of passive income in FY27, investors would need to spend around $249,000 on NAB shares.

It's not a small investment, but it's one that could pay off over the long term.

And in the meantime, you'd earn a regular passive income from NAB dividends, while also benefiting from any share price increase.

And remember, you don't have to invest the full amount at once. You can slowly build your investment over time and let compounding do the rest.

The post How many NAB shares do I need to buy to generate $10,000 in passive income in FY27? appeared first on The Motley Fool Australia.

The three companies below offer attractive forecast dividend yields, although each supports its payments in a different way.

Here are my top Australian passive income picks for August.

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman is my first passive income pick. I like it because it earns money from more than selling furniture, electronics, and appliances.

The company also generates income from its Australian franchise network, overseas stores, and substantial property portfolio. I think this gives the dividend a broader foundation than investors might initially expect from a retailer.

Its property assets generate rental income and strengthen the balance sheet, while the franchise model allows Harvey Norman to benefit from sales across its network without operating every Australian store itself.

Consumer spending can still affect earnings, particularly when households become more cautious. However, Harvey Norman's different sources of income should help it continue producing substantial cash flow across the economic cycle.

According to consensus estimates, the company is expected to pay fully franked dividends of 31 cents per share in both FY26 and FY27.

With Harvey Norman shares trading around $4.96, that represents a forecast dividend yield of approximately 6.25% before the potential benefit of franking credits.

I think that is an attractive level of passive income from a business with retail, franchising, and property operations.

National Australia Bank Ltd (ASX: NAB)

NAB is another ASX income share I would be happy to consider this month.

I particularly like its strong position in Australian business banking. This gives NAB exposure to companies across a wide range of industries and provides another source of earnings alongside home lending and personal banking.

Business customers can also have deeper relationships with their bank through lending, deposits, payments, and other financial services. I believe this could help NAB continue generating the profits needed to support its dividend over time.

Speaking of which, the bank is expected to pay a fully franked dividend of $1.70 per share in FY26, according to CommSec consensus estimates. At a share price of around $42.85, that would provide a forecast yield of approximately 4%.

The market then expects the dividend to rise slightly to $1.72 per share in FY27, suggesting analysts believe NAB can continue growing its payouts.

Bad debts, competition, and changes in interest rates can all affect bank earnings. Even so, NAB's business banking strength and fully franked dividend make it one of my preferred ASX passive income shares.

APA Group (ASX: APA)

APA is my final passive income pick for August.

The company owns pipelines, electricity transmission links, gas storage facilities, and generation assets that play an important role in Australia's energy system.

Many of these assets earn regulated or contracted revenue, which can make APA's cash flow more predictable than the earnings of a company directly exposed to commodity prices.

I also believe Australia will need continued investment in energy infrastructure as electricity demand grows and the energy system becomes more complex. New projects could provide APA with additional cash flow to support gradual distribution growth.

Consensus estimates are for APA to pay distributions of 58 cents per security in FY26 and 59 cents in FY27.

At the current price of around $10.30, those forecasts represent dividend yields of approximately 5.6% and 5.7%, respectively.

APA must carefully manage its debt while funding new infrastructure projects. However, I think its essential assets and relatively predictable revenue make the forecast income attractive.

Foolish takeaway

Harvey Norman, NAB, and APA each offer an appealing source of passive income.

Harvey Norman provides the highest forecast yield, NAB offers fully franked bank dividends, and APA's distributions are supported by energy infrastructure.

I think all three could be attractive ASX income shares to consider in August.

The post My top Australian passive income picks this month appeared first on The Motley Fool Australia.

The Reserve Bank of Australia hands down its next decision at 2:30pm on 11 August, and the day after that, Commonwealth Bank of Australia (ASX: CBA) opens the sector's full-year results season.

Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and ANZ Group Holdings Ltd (ASX: ANZ) all run September year ends, which makes the RBA call the first real catalyst for ASX bank shares of the period.

What the RBA decision could mean for ASX bank shares

The cash rate currently sits at 4.35%, following three increases through 2026 that not many people were forecasting a year ago.

In its latest move, the Reserve Bank left the rate on hold in June while it assessed the response to those earlier rises. Most economists expect the same again.

CommBank's own economics team expects the cash rate to remain at 4.35% through 2026 and does not forecast cuts until 2027.

A hold would be the path of least resistance for the sector. It removes near-term uncertainty without adding fresh pressure to household budgets, which is exactly what a lender wants heading into results.

There is also a second date worth marking beyond the RBA meeting itself.

CBA will release its FY26 result and final dividend on 12 August, with the shares scheduled to trade ex-dividend on 19 August and payment due on or about 29 September.

Why higher rates don't automatically help ASX bank shares

There is a common assumption that rate rises are unambiguously good for the banks.

The reality is messier. Higher rates do lift the return banks earn on deposits they hold at low or zero interest.

But savers respond by shifting money into term deposits and high-interest accounts, and that behaviour claws back much of the initial benefit.

The margin data from the latest half-year results bears this out. NAB's net interest margin rose three basis points to 1.81% over the half, whilst Westpac's fell three basis points to 1.89% on the same basis.

ANZ reported a group margin of 1.53% across the half. Management has flagged a bias to the upside in margins (excluding Markets) next period.

The bigger risk is as follows.

Westpac carries the heaviest mortgage exposure of the four, with roughly 69% of its loan book in residential lending.

Higher rates eventually feed through to arrears, and the full effect of this year's tightening has not yet arrived.

What brokers are saying

Analysts are unusually divided on the sector right now.

Morgan Stanley holds sell ratings on CBA, NAB and Westpac shares, and its CBA target of $125 implied around 26% downside when the note landed in July.

Jefferies is similarly cautious, with a sell rating and a $144.40 target on the same stock.

Broader consensus data has also shown sell or hold ratings dominating across the majors for much of the year.

Not everyone is bearish, though.

Citi has a buy rating and a $39.25 price target on ANZ, which has been the analyst favourite among the majors for much of 2026.

Australian banks also remain exceptionally well capitalised by global standards, and their fully franked dividends continue to appeal to income investors in lower tax brackets.

None of those arguments require earnings to accelerate, which is a large part of their appeal to conservative investors.

Foolish takeaway

The 11 August decision matters less for what it does to margins next quarter, and far more for what it signals about the path into 2027.

A hold, followed by a solid CBA result on 12 August, would validate the bulls.

Another hike would sharpen the credit quality debate that the bears have been pressing all year.

Long-term investors in ASX bank shares should watch the arrears line as closely as the cash rate itself, because that is where this cycle will ultimately be decided.

The post The RBA meets on 11 August. What could this mean for ASX bank shares? appeared first on The Motley Fool Australia.

Starting with the weakest outperformer, ANZ Group Holdings Ltd (ASX: ANZ) shares closed on 30 June trading for $35.35. When the closing bell sounded on 31 July, shares were changing hands for $37.31 apiece.

That saw this ASX 200 bank stock up 5.5% over the month just past.

Commonwealth Bank of Australia (ASX: CBA) shares also enjoyed a strong July.

CBA shares closed out June trading for $164.62 each and finished off July at $177.53. That put the CBA share price up 7.8% for the month.

Turning to Westpac Banking Corp (ASX: WBC), Westpac shares closed June at $35.21 and closed July trading for $37.87, putting the Westpac share price up 7.6%.

And the best performer among the big four Aussie banks in July was National Australia Bank Ltd (ASX: NAB).

On 30 June, NAB shares closed the day trading for $37.86. On 31 July, shares closed at $41.33 apiece. This saw the NAB share price up an impressive 9.2% in July.

Why did the ASX 200 bank stocks outperform in July?

There was no major price-sensitive news released from any of the big four Aussie banks in the month just gone.

However, ASX 200 bank stocks look to have caught some macroeconomic tailwinds.

First, they enjoyed a collective boost over the month amid ongoing global market uncertainty, which drove a broader investor rotation into quality, defensive shares.

The banks will also have benefited from increased expectations that interest rates may have topped out. That could drive both a revival in loan demand and lower bad debts over the months ahead.

ANZ completes acquisition as CBA narrows gap with BHP

ANZ did catch headlines on 31 July, after the ASX 200 bank stock announced it had completed its acquisition of merchant payments business Worldline Australia Pty Ltd.

The ASX 200 bank stock had previously reported that it had agreed to acquire Worldline S.A's 51% share in the business for an enterprise value of $89 million (on a 51% basis).

Management noted, "The acquisition aligns to the ANZ 2030 strategy, strengthening our direct relationship with our customers and reinforcing the bank's position as the transactional bank of choice."

CBA also caught investor attention in the latter week of July, as the bank's outperformance saw it narrow the gap with BHP Group Ltd (ASX: BHP) for the biggest ASX stock crown.

On 27 July, CBA had a market cap of around $292.9 billion, or just $12.2 billion shy of BHP's $305.1 billion valuation.

The post Why ASX 200 bank stocks including CBA and NAB shares smashed the benchmark in July appeared first on The Motley Fool Australia.

Shareholders can thank the large profits that NAB makes from lending to businesses and households for enabling the company to pay stable and growing dividends this decade following the pain of the COVID-impacted year of 2020.

Even during an economic downturn, NAB is likely to remain a solid dividend payer because consumers are likely to prioritise repaying their loans over discretionary spending.

Of course, dividends are not guaranteed to be paid, but NAB has scale benefits that most other ASX bank shares do not have.

Analysts think the bank is set to increase the payout in FY27.

NAB dividend projection for FY27

According to the projection on Commsec, the business is forecast to pay an annual dividend per share of $1.70 in the 2026 financial year. That translates into a dividend yield of 4.1%, or 5.9% including the franking credits.

I want to give some insight into where the NAB dividend is expected to be in FY26 before we see what might happen in FY27.

According to the projection on Commsec, the business is projected to grow its annual dividend per share by 1.2% year-over-year in FY27 to $1.72 per NAB share.

At the time of writing, that potential payout translates into a dividend yield of 4.2%, or 6% including franking credits.

What would be needed for $1,000 of passive income?

The prospects seem good for shareholders to get a bigger payout in FY27, though that's not guaranteed, of course.

If an investor wants $1,000 of passive income from the ASX bank share in FY27, they'd need 582 NAB shares. At the time of writing, that would cost approximately $24,000.

If we include franking credits in the income goal, an investor would only need 407 NAB shares to generate $1,000 in annual dividends. At the time of writing, this would only cost $16,800.

Is this a good time to invest in NAB shares?

I'd say NAB is one of the best ASX bank shares around. However, at the time of writing, it has risen 16% since June 2026, so it's not as good value as it was.

According to CMC Invest, the average price target from nine recent analyst ratings is $38.56. That suggests those analysts collectively believe the stock could drop by more than 6% in the next year, so there could be even better opportunities at more attractive valuations.

The post How much must I invest in NAB shares to earn a $1,000 passive income in 2027? appeared first on The Motley Fool Australia.

Three of the big four carry sell ratings from at least one major broker.

The fourth has a buy rating and a premium price target compared to its current price.

With Commonwealth Bank of Australia (ASX: CBA) reporting on 12 August, the debate about the sector's potential is only going to get more heated.

The bear case against ASX bank shares

The bears are not questioning the quality of these businesses. They are more so questioning the price.

Morgan Stanley has sell ratings on CBA, National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC).

The broker's CBA target of $125 implied around 26% downside when the note landed in July.

Its NAB and Westpac targets of $34.50 and $31.50 implied 13% to 14% downside.

Jefferies is similarly cautious, holding a sell rating and a $144.40 target on CBA.

The bears all have roughly the same argument

CBA trades on the richest earnings multiple of any major Australian bank, in a market that is both mature and intensely competitive.

Westpac carries the heaviest mortgage exposure of the four, with roughly 69% of its loan book in residential lending.

With the cash rate at 4.35% following three increases through 2026, that risk has heightened.

Higher rates eventually feed through to arrears, and the full effect of this year's tightening has not arrived yet.

The wider point is that these are mature businesses in a mature market, and paying a premium multiple for low single-digit earnings growth leaves very little margin for error.

The bull case for ASX bank shares

Not everyone is bearish on ASX bank shares.

Citi has a buy rating and a $39.25 price target on ANZ Group Holdings Ltd (ASX: ANZ).

That implied roughly 9% upside when the note was published.

ANZ has been the analyst favourite among the majors for much of 2026.

The bank has confirmed it achieved 49% of its $800 million gross cost-savings target for FY26, cost discipline being one of the few levers available when revenue growth is hard to find.

The wider bull case rests on three things.

Australian banks remain exceptionally well capitalised by global standards.

Their fully franked dividends still appeal to income investors, particularly those in lower tax brackets.

And a higher cash rate, while a credit risk over time, also supports net interest margins in the near term.

None of those arguments require earnings to accelerate, which is a large part of their appeal to conservative investors.

What to watch in August

CBA will release its FY26 result and final dividend on 12 August. Its shares are scheduled to trade ex-dividend on 19 August, with payment on or about 29 September.

Bank results rarely surprise on revenue, so the interesting detail will likely be buried in the provisioning and expense lines.

Margins, cost growth and any commentary on credit quality may matter more than the headline profit figure.

Foolish takeaway

The split among brokers is really a disagreement about valuation, not about business quality.

Nobody disputes that these companies are profitable, well-run, systemically important institutions. The argument is more so whether current prices leave any room for something to go wrong.

For income investors already holding ASX bank shares, franked dividends remain a key attraction.

But for anyone considering fresh capital, the bear case deserves serious consideration.

August results will give both camps a great deal more to work with.

The post Brokers are split on the big four ASX bank shares. Here's the case for and against appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) was up over the month of July.

What's more, reporting season is about to kick off in earnest, which sharpens the focus on broker calls right now.

National Australia Bank Ltd (ASX: NAB), Lynas Rare Earths Ltd (ASX: LYC), and Domino's Pizza Enterprises Ltd (ASX: DMP) all attracted analyst attention.

Let's see why.

Three ASX shares brokers are backing

NAB

NAB shares are down this year.

Despite this, UBS renewed its buy rating with a 12-month price target of $50, implying roughly 20% upside from current levels.

The broker has pointed to an improving net interest margin as the reason the earlier sell-off went too far.

NAB is also the cheapest of the major banks on forward earnings, and its business banking franchise remains the standout asset in the sector.

Lynas

Canaccord Genuity reiterated its buy rating on Lynas shares with a $21 price target.

That points to more than 50% potential upside.

Lynas remains the only significant producer of separated heavy rare earths outside China, which sits at the core of the investment case.

Demand from electric vehicle motors, defence procurement, and wind turbines continues to underpin pricing.

Domino's

Domino's has also attracted attention from brokers in the lead-up to its earnings.

UBS renewed its buy rating but trimmed the price target from $22 to $21.

The broker's caution is understandable given the volatility in this name over recent years.

The business has been deliberately trading short-term sales for stronger long-term franchisee economics. This should reward shareholders in the longer term, although short-term issues may persist.

Did these ASX shares perform in the last earnings period?

NAB reported its first-half FY26 result on 4 May.

Cash earnings were $3,558 million excluding the impact of a software capitalisation policy change, on revenue growth of 3.1%. Net interest margin rose three basis points to 1.81%, and the interim dividend came in at 85 cents per share.

Statutory net profit fell to $2,750 million after a $949 million post-tax notable item.

Lynas posted record June quarter sales revenue of $288.9 million, up 70% on the prior corresponding period.

The average selling price hit a record $98.20 per kilogram, and closing cash finished at $1.2 billion.

Production was the sore point, with NdPr output falling to 1,857 tonnes on ore quality issues at Mount Weld.

Domino's reaffirmed preliminary unaudited underlying net profit after tax of $118 million to $122 million for FY26.

Free cash flow surged to roughly $164 million, a $116.6 million improvement on the prior year.

Offsetting that, the company flagged $259 million of balance sheet write-downs, of which about $246 million is non-cash.

Same-store sales fell 4.1% across the group, though rolling 12-month franchisee EBITDA improved 11.3% in constant currency.

Domino's audited full-year result is due on 26 August.

Foolish Takeaway

These three ASX shares are backed by brokers for very different reasons.

NAB is the valuation call, Lynas is the strategic supply call, and Domino's is the turnaround call.

Each stock carries its own distinct risk.

NAB faces deposit competition and slowing credit growth, Lynas has to prove it can lift production reliably, and Domino's needs its incoming chief executive to deliver.

Investors should know that price targets are a guide rather than a guarantee, and 12 months is a very short horizon in investing.

The post Brokers name 3 ASX shares to buy in August appeared first on The Motley Fool Australia.

Brokers have indicated continuing confidence in several ASX 200 shares this week.

Let's take a look.

National Australia Bank Ltd (ASX: NAB)

The NAB share price is $41.47, up 0.7% today and up 8% over 12 months. 

UBS renewed its buy rating on the ASX 200 bank share with a 12-month price target of $50 today.

This suggests a potential 20% upside ahead.

Liontown Ltd (ASX: LTR)

The Liontown share price is $1.01, down 8.9% today and up 23% over 12 months. 

Morgans reiterated its buy rating on the ASX 200 mining share today.

The broker cut its 12-month price target from $1.70 to $1.40.

This implies potential capital gains of almost 40% ahead.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is $57.73, up 3.8% today and up 88% over 12 months. 

Mineral Resources was among the 5 best ASX 200 mining shares of FY26 for share price growth.

Bell Potter reaffirmed its buy rating on Mineral Resources shares today.

The broker cut its price target from $83 to $75, suggesting almost 30% upside ahead.

Genesis Minerals Ltd (ASX: GMD)

The Genesis Minerals share price is $5.65, down 5.7% today and up 48% over 12 months. 

Bell Potter renewed its buy rating on the ASX 200 gold share on Thursday.

The broker reduced its 12-month target from $9.75 to $9.20.

This implies a potential 65% lift over the next year.

Droneshield Ltd (ASX: DRO)

The Droneshield share price is $1.81, up 0.8% today and down 43% over 12 months. 

Bell Potter renewed its buy rating on Droneshield shares with a $2.50 target this week.

This suggests a potential near-40% upside ahead.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The Electro Optic Systems share price is $6.26, down 6% today and up 105% over 12 months. 

Canaccord Genuity reiterated its buy rating on the ASX 200 industrial share on Wednesday.

The broker adjusted its price target from $14 to $14.20.

This implies a potential 125% upside ahead.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas Rare Earths share price is $13.83, down 1.9% today and up 29% over 12 months. 

Canaccord Genuity reiterated its buy rating yesterday with a price target of $21.

This implies potential capital gains of more than 50% ahead.

Domino's Pizza Enterprises Ltd (ASX: DMP)

The Domino's Pizza share price is $19.84, up 10% today and up 7% over 12 months. 

Dominos released an FY26 earnings update and balance sheet review yesterday.

The company said preliminary unaudited underlying net profit after tax (NPAT) was expected to be between $118 million and $122 million, consistent with previous guidance.

UBS renewed its buy rating on the ASX 200 consumer discretionary share.

The broker cut its 12-month price target from $22 to $21.

This implies potential capital growth of 5% over the next year.

The post 8 ASX 200 shares with strengthened buy ratings this week appeared first on The Motley Fool Australia.

It could cover everyday expenses, make retirement more comfortable, or provide the freedom to spend less time working.

Very few people will begin with enough money to generate that income straight away. I think the more realistic path is to build wealth first, give compounding time to work, and gradually turn that capital into a dependable income stream.

Here are three ways I would approach it.

Build capital from scratch

For investors starting with little or no money invested, I would initially focus on growing the value of the portfolio.

Regular contributions could be directed towards quality blue-chip shares and businesses capable of increasing earnings over many years.

Commonwealth Bank of Australia (ASX: CBA) could provide exposure to a leading bank with a strong deposit franchise, digital capabilities, and fully franked dividends.

Macquarie Group Ltd (ASX: MQG) could add long-term growth through its global operations across asset management, infrastructure, commodities, banking, and investment markets.

I would also consider healthcare companies such as ResMed Inc. (ASX: RMD), which has recurring demand for masks, accessories, and software alongside sales of sleep apnoea devices.

The early dividends could be reinvested to buy more shares, while regular contributions continue increasing the portfolio balance.

I think the main priority at this stage should be total return rather than chasing the highest income. Once the portfolio becomes large enough, some growth holdings could be retained while new money is gradually directed towards stronger dividend payers.

Focus on dependable dividend growth

If I already had a sizeable amount ready to invest, I would be drawn to established companies with dependable dividends and a good chance of increasing those payments over time.

A portfolio worth around $1.25 million with an average dividend yield of 4% could generate approximately $50,000 per year before tax.

CBA could again have a place in this approach, although its starting yield may be lower than other income shares.

Woolworths Group Ltd (ASX: WOW) could provide relatively defensive earnings because grocery demand continues through changing economic conditions. Its dividends may also grow if sales, margins, and cash generation improve over time.

I think accepting a lower starting yield can make sense when the underlying businesses are financially strong and capable of producing a larger income stream in future years.

Seek a higher starting income

A portfolio worth around $1 million and yielding 5% could also produce $50,000 annually.

National Australia Bank Ltd (ASX: NAB) could contribute fully franked dividends supported by its banking operations and leading position in business banking.

Telstra Group Ltd (ASX: TLS) may provide steadier demand because mobile and internet services remain part of everyday life for households and businesses.

APA Group (ASX: APA) could add income from energy infrastructure assets, while selected real estate investment trusts may offer another source of distributions.

I would still avoid choosing shares only because their yields look high. A large payout provides little comfort if earnings weaken and the dividend is later reduced.

The balance sheet, cash generation, and outlook for future payouts would guide my decisions.

Foolish takeaway

I think building a $50,000 passive income will look different depending on where an investor begins.

Someone starting from scratch may spend years concentrating on capital growth, regular contributions, and reinvested dividends before shifting towards income.

Investors with more capital already available may be able to focus immediately on dependable dividend shares or pursue a somewhat higher starting yield.

Whichever path is chosen, I think patience and dividend quality should be more important than reaching the goal as quickly as possible.

The post 3 simple ways to build a $50,000 passive income from ASX shares appeared first on The Motley Fool Australia.

If you can invest wisely, it helps you build wealth for later on in life. And in the meantime, you benefit from low tax rates and long-term compounding.

But what can that passive income actually look like?

Let's break down how much you could earn every single year from a $600,000 superannuation balance.

What passive income can I earn off a $600,000 superannuation balance?

The easiest way to calculate your passive income is by multiplying your total superannuation balance by the overall dividend yield of your portfolio.

The tricky part is that the answer varies widely depending on what dividend yield you pick.

For example, $600,000 x 3% = $18,000 per year in dividend payments.

But if your portfolio has a slightly higher dividend yield of around 4%, your passive income will be higher. That's because $600,000 x 4% = $24,000 per year in dividend payments. 

Raise it again to 5%, and you could earn $30,0000 every year in dividend payments off the same superannuation balance ($600,000 x 5% = $ 30,000).

At a 6% yield, you could earn an annual passive income closer to $36,000 and at 7% that could be even higher, at around $42,000.

And so on… 

As your dividend yield increases, the passive income you can earn off your $600,000 superannuation balance also increases.  

These figures are based on cash dividends before any tax or franking credit benefits.

Which ASX shares should I invest my superannuation in if I want to earn $24,000 per year in passive income?

A 4% yielding portfolio of this size would earn around $24,000 per year in passive income. There are plenty of high-quality ASX shares around this level.

Some of my favourites include Telstra Group Ltd (ASX: TLS) and banking giants National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC). Cedar Woods Properties Ltd (ASX: CWP) and Mff Capital Investments (ASX: MFF) also yield around the 4% level at the time of writing.

And, which ASX shares will earn me $48,000 per year in passive income?

To earn $48,000 per year in passive income from a $600,000 superannuation balance, your portfolio will need to yield around 8%.

It's on the high side, and of course, the higher the yield, the more risk the portfolio carries. But it's still achievable.

If you're wanting to focus on high yield ASX shares I'd look at listed investment trusts (LIT)'s like the Metrics Master Income Trust (ASX: MXT) or the Metrics Income Opportunities Trust (ASX: MOT). These both target a return of 7-10%, and currently yield around 8%.

Exchange-traded funds are another good option for high yield investments. Such as the Betashares S&P Australian Shares High Yield ETF (ASX: HYLD) or the Global X S&P/ASX 200 Covered Call ETF (ASX: AYLD). These both yield in the 8-9% range at the time of writing.

The post How much passive income could I earn from a $600,000 superannuation balance? appeared first on The Motley Fool Australia.

To help sort the proverbial wheat from the chaff, let's go over three ASX dividend stocks I would buy today if I were building a portfolio focused on steady dividends.

3 ASX dividend stocks to buy for reliable income

Telstra Group Ltd (ASX: TLS)

First up, we have the telco Telstra. Telstra has long enjoyed a reputation as one of the ASX's most popular dividend shares, and for good reason. In its decades of life on the stock market, this company has almost always provided investors with relatively large and fully franked payouts.

These have tended to come rain, hail or shine, helped by Telstra's inherent defensive qualities. This ASX dividend stock's first payout of 2026 came in at 19.5 cents per share, steady on last year's equivalent payout. At current pricing, Telstra shares are trading on a dividend yield of about 4%.

Wesfarmers Ltd (ASX: WES)

Next up, we have another blue chip ASX dividend stock in Wesfarmers. This conglomerate has its fingers in many pies, but is most well-known for its flagship retailers like Bunnings, Officeworks and Kmart. Wesfarmers rarely trades at a price that makes its dividend yield stand out. To illustrate, Wesfarmers shares currently sport a yield of 2.4% or so.

But what makes this company attractive, at least in my view, is its solid history. Wesfarmers has been doling out steady dividends for decades, and hasn't cut its payouts in living memory (excepting the spin-off of Coles Group Ltd (ASX: COL) last decade). If you're building an income portfolio, you can't go wrong with Wesfarmers.

National Australia Bank Ltd (ASX: NAB)

Last but not least, let's talk NAB. Like its peers in the banking space, NAB is well-known as a formidable ASX dividend stock. It has been funding fat and fully franked dividends for decades, and is relied upon as a source of income for countless investors. It is also a major pillar of the Australian economy, which could offer some comfort to investors as well.

I like NAB as its business model isn't as mortgage-heavy as some of its peers. Not to mention the fact that it also trades at a more reasonable valuation than other banks. Right now, NAB shares are trading on a decent dividend yield of 4.13%, which comes fully franked too.

The post I'd buy these 3 ASX dividend stocks for dependable income appeared first on The Motley Fool Australia.

Overall, ASX 200 bank shares have climbed over the past month, though they have yet to rebound to the bumper levels seen earlier this year. 

Slower economic growth, moderating inflation data, and expectations of interest rate cuts later in the year have all helped improve investor sentiment.

Other sectors, such as industrials, materials, and utilities, have tumbled lower, while weaker commodity prices have also pulled down the gold and mining sector. 

The shift saw an increase in investors rotating into more defensive, income-generating sectors such as financials.

However, concerns about overinflated prices, mortgage competition, and slowing credit growth kept share price growth subdued.

What happened to the ASX 200 big four major banks in July?

Australia's banking sector is dominated by the big four banks: Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), and ANZ Group Holdings Ltd (ASX: ANZ).  

Together, they make up around a quarter of the S&P/ASX 200 Index (ASX: XJO) by market capitalisation. 

At the time of writing, with only a couple more days left of the month, CBA shares are up around 0.2% for the day and changing hands at $176.34 a piece. The ASX 200 major bank's shares are also around 8% higher over the past month. 

NAB shares are also trending higher on Tuesday morning, up around 0.2% to $41.01 a piece, at the time of writing. NAB shares have risen around 8% over the past month.

ANZ shares are also up 0.2% for the day so far, at $36.94. Over the past month, the bank stock has also climbed higher, up around 5%.

Meanwhile, Westpac shares have dipped slightly into the red this morning, down around 0.1% to $37.66 a piece. But over the past month, the shares have risen around 7%.

What about the mid-tier banks?

Bendigo and Adelaide Bank Ltd (ASX: BEN) shares are up around 0.5% on Tuesday morning, to $11.06 a piece. Over the month, the shares are also up around 6%.

It's a similar story for Bank of Queensland Ltd (ASX: BOQ) shares. They have climbed around 0.5% in early morning trade, to $6.51 a piece. The ASX bank stock is also up roughly 4% over the month. 

But Macquarie Group Ltd (ASX: MQG) shares have fallen into the red on Tuesday morning, down roughly 1.5% to $254.72. Over the month, the bank was the worst-performing ASX bank stock, although the shares still climbed by around 2% higher.

Which ASX bank shares are a buy for August?

While Macquarie shares are technically the slowest performer so far this July, brokers are very bullish about the outlook over the next 12 months. TradingView data shows the majority have a buy rating on the investment bank's shares, and the $262.77 average target price implies a potential 3% upside ahead.

Which ones are rated a sell?

Brokers still rate CBA shares as a strong sell. The latest $125.51 target price on TradingView now implies a potential 29% downside ahead for investors, at the time of writing. 

The majority also have a sell rating on Westpac shares. The latest $33.35 average target price now implies a potential 12% downside, according to TradingView data.

BOQ shares are also expected to fall over the next 12 months. Most brokers rate the ASX bank as a sell, and the $60.81 average target price on TradingView now implies a 7% downside ahead.

Which ASX bank shares do brokers rate as a hold?

Then there are the ASX 200 bank shares that analysts are on the fence about.

TradingView data shows brokers are divided between a buy and sell rating on ANZ shares. The $34.91 target price, however, implies a potential 6% downside at the time of writing.

The data also shows that the majority have a hold rating on NAB shares. The average $37.94 target price on the ASX bank stock also implies a potential downside of around 7% at the time of writing.

Bendigo shares are also tipped to fall by around 6% to an average target price of $10.44.

The post Are ASX bank shares a buy in August? appeared first on The Motley Fool Australia.

Macquarie has run the ruler over the banks ahead of the upcoming reporting season, and it's fair to say, from a share price point of view, they're not expecting too many positive surprises.

Broadly, the Macquarie analysts said they were expecting "solid" results for the second half of the year, but there were storm clouds on the horizon.

As they said:

Revenue guidance and commentary are likely to be on the softer side, given the material slowing in lending growth and increase in mortgage competition. We expect this will see a greater focus on cost management in FY27-28. In particular, we will be closely watching for commentary on recent lending application trends and competition, any signs of deteriorating credit quality, and updated costs guidance as banks seek to offset the challenging revenue environment. We maintain our underweight stance on the sector with ANZ and NAB our preferred exposures.

Now let's see what they're saying about each bank.

ANZ Group Holdings Ltd (ASX: ANZ)

Macquarie has a neutral rating on ANZ and said they are more positive than consensus estimates for the bank, driven by its stronger balance sheet.

That said, they saw a downside risk to earnings from higher impairments in the second half.

They added:

Looking further ahead, we forecast 2% and 7% downside risks to pre-provision consensus earnings in FY27E and FY28E, respectively. This is largely driven by weaker margin trends as ANZ competes for both mortgage and deposits and aligns savings rates following SUN integration.

Macquarie has a $32.50 price target on ANZ shares.

Commonwealth Bank of Australia (ASX: CBA)

Macquarie said while CBA's elevated valuation "arguably leaves it most exposed to the housing downturn, we expect its earnings to be the most resilient of the major banks''.

Despite this, they have an underperform rating on the stock and a $111 price target.

Macquarie said the bank might surprise on the upside with its second-half results, but they expected its dividend to be increased by just 5 cents to $2.65, given the challenging macro outlook.

National Australia Bank Ltd (ASX: NAB)

Macquarie has a neutral rating on NAB, saying that, like its peers, there will be headwinds from lower volumes and increased competition.

They added:

While NAB has successfully demonstrated progress in deposit gathering, and strengthening its proprietary channel, the weaker macro outlook and NAB's higher SME exposure would likely keep the market focused on credit quality in the near term.

Macquarie has a price target of $39 on NAB shares.

Westpac Banking Corp (ASX: WBC)

Macquarie has an underperform rating on Westpac shares and a price target of $30.

They said there was downside risk in FY27 and FY28, driven by weaker margins and higher expenses.

They said the bank looked overvalued at current levels, as it was trading on similar metrics to NAB while offering lower returns.

The post Macquarie's verdict on the ASX banks: buy, sell or hold? appeared first on The Motley Fool Australia.

I would want businesses capable of supporting their payouts through different conditions, while still giving shareholders some opportunity for capital growth.

Here are three ASX shares I think could provide that balance.

National Australia Bank Ltd (ASX: NAB)

NAB would give the portfolio exposure to one of Australia's largest financial institutions and a steady stream of fully franked dividends.

The bank's leading position in business banking is the main reason I would choose it over some of its peers. I believe this side of the banking industry will fare better in the current environment of higher interest rates and a weakening housing market.

At a share price of around $40.39, the income also looks attractive.

According to CommSec consensus estimates, NAB is forecast to pay dividends per share of $1.70 in FY26 and $1.72 in FY27.

That represents forward dividend yields of approximately 4.2% and 4.3%, before any benefit from franking credits.

Telstra Group Ltd (ASX: TLS)

Telstra would add a more defensive source of income.

Mobile and internet services have become deeply connected to how Australians work, communicate, shop, travel, and access entertainment. Households may reduce spending elsewhere when conditions become difficult, but reliable connectivity remains a regular expense.

I particularly like Telstra's position in mobile. Its network coverage, brand, spectrum holdings, and years of investment give the company a strong position in a market where reliability can influence which provider customers choose.

The shares are trading around $4.89.

CommSec forecasts dividends per share of 21 cents in FY26 and 21.5 cents in FY27. That equates to forward dividend yields of around 4.3% and 4.4%.

Rio Tinto Ltd (ASX: RIO)

Rio Tinto would bring more volatility to the portfolio, but it could also provide stronger income when commodity markets are favourable.

The company remains a major iron ore producer, with large, low-cost operations capable of generating substantial cash flow.

It also has growing exposure to copper, which could benefit from investment in electricity networks, renewable energy, data centres, manufacturing, and infrastructure. That gives Rio Tinto more than one route to long-term earnings.

CommSec consensus estimates point to dividends per share of $6.37 in FY26 and $6.62 in FY27.

At around $159.99, those forecasts imply dividend yields of approximately 4.0% and 4.1%.

I think it is worth remembering that mining dividends can move considerably as commodity prices and profits change, so I would expect less consistency than I would from NAB or Telstra.

Foolish takeaway

A passive income portfolio can become vulnerable when every dividend depends on the same economic conditions.

That is why I like combining a major bank, a defensive telecommunications company, and a global miner. Their earnings are influenced by different customers, markets, and demand drivers, which should give the portfolio a broader foundation.

The forecast yields are all around 4%, providing a solid starting income without chasing companies offering payouts that may prove difficult to sustain.

The post Why I'd buy NAB, Telstra, and Rio Tinto shares for a passive income portfolio appeared first on The Motley Fool Australia.

Finding a business I would still be comfortable owning after the next ugly market week is a better test.

The five shares below pass that test for me.

National Australia Bank Ltd (ASX: NAB)

NAB has one advantage I particularly like: its leading position in business banking.

A business customer may use the bank for deposits, payments, lending, working capital, equipment finance, and foreign exchange. Those relationships can deepen as the customer grows, giving NAB more ways to earn revenue than a single mortgage provides.

Business lending and deposits both increased during the first half of FY26, while NAB continued moving simpler customer tasks online. That should give bankers more time to work through the complicated needs where relationships count.

The banking sector remains competitive, but I think NAB combines a good dividend profile with a clear route to steady earnings growth.

Coles Group Ltd (ASX: COL)

Coles earns its place through repeat demand. Australians need groceries and household essentials every week, giving the company a steadier sales base than most retailers enjoy.

I also think Coles is becoming a better digital business. Online shopping is growing quickly, Flybuys provides insight into customer behaviour, and investment in automated distribution and fulfilment could improve efficiency over time.

Supermarkets operate on thin margins, so execution on pricing, availability, and costs remains important. However, I like the combination of defensive demand, dividends, and room for gradual improvement.

For investors who want an ASX 200 share capable of holding up reasonably well when household spending becomes more cautious, Coles looks like a good buy to me.

ResMed Inc (ASX: RMD)

ResMed benefits each time someone moves from living with poor sleep to receiving a diagnosis and beginning treatment.

That opportunity remains substantial because sleep apnoea and other breathing disorders are still widely underdiagnosed.

The company also keeps earning revenue after supplying the first device. Patients require masks, replacement parts, monitoring, and software that can help them stay engaged with therapy.

ResMed's latest quarterly revenue increased by 11%, while operating income grew faster than sales. I think that shows the business can keep expanding while improving the economics of each dollar of revenue.

Competition and new treatments need watching, but ResMed's global reach and experience in sleep health give it a strong position.

Goodman Group (ASX: GMG)

Goodman owns something that technology companies increasingly need and cannot create quickly: suitable land with access to substantial amounts of electricity.

That combination has become particularly valuable as demand for data centres rises alongside artificial intelligence and cloud computing.

Data centres made up most of Goodman's development work in progress at the end of the first half. But it doesn't have to do this alone. The company often invests alongside large capital partners, allowing it to pursue more projects while protecting its balance sheet.

Goodman shares carry a premium valuation, so delays involving construction, power, or customer commitments could create volatility.

Nevertheless, I would still buy because its land portfolio, development expertise, and secured power give it a strong position in a market that could grow for many years.

Megaport Ltd (ASX: MP1)

Businesses increasingly use several cloud providers, data centres, and computing environments. Megaport helps connect them through a software-controlled global network.

Customers can establish and adjust connections without waiting for traditional telecommunications infrastructure to be installed. That flexibility could become more valuable as artificial intelligence increases the amount of data moving between computing, storage, and cloud platforms.

The company is currently investing heavily in its next stage of growth, including in compute. This creates execution risk, but I think its global network, recurring revenue base, and early success make that a worthy investment.

Foolish Takeaway

This group of ASX 200 shares would give me several independent paths to long-term returns, including defensive consumer demand, healthcare growth, financial services, and the infrastructure supporting a more digital economy.

The shares will not all perform well at the same time, and I would build positions patiently where valuations look full.

What I like is that each company has a clear reason to earn more five or 10 years from now. That is why I would be comfortable buying all five today.

The post 5 excellent ASX 200 shares I'd buy and hold now appeared first on The Motley Fool Australia.

The optimism that we saw earlier in the week was nowhere to be seen today, with the market staying in the red the entire session. By the time trading wrapped up, the ASX 200 had given up 0.75% of its value. That leaves the index at 8,772.3 points as we head into the weekend.

This rough end to the week for Australian investors comes after an even direr night over on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) was in a mood, falling 0.97%.

It was even worse for the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC), which lost a nasty 2.15%.

But let's get back to the local markets now and see how the different ASX sectors weathered today's rough tides.

Winners and losers

There were only a handful of green sectors today, but more on those in a moment.

Firstly, it was gold shares that took the brunt of today's selling. The All Ordinaries Gold Index (ASX: XGD) had crashed 4.28% by the end of the day.

Tech stocks were hit hard too, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) tanking 3.98%.

We could say the same for mining shares. The S&P/ASX 200 Materials Index (ASX: XMJ) ended up cratering 2.84%.

Communications stocks had a tough one too, as you can see by the S&P/ASX 200 Communication Services Index (ASX: XTJ)'s 1.52% slump.

Real estate investment trusts (REITs) didn't escape the storm. The S&P/ASX 200 A-REIT Index (ASX: XPJ) took a 1.18% dive.

Nor did consumer discretionary shares, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) giving up 1.06%.

Industrial stocks weren't much better. The S&P/ASX 200 Industrials Index (ASX: XNJ) was walked back 1.02%.

There wasn't anything healthy about healthcare shares either, evidenced by the S&P/ASX 200 Healthcare Index (ASX: XHJ)'s 0.95% dip.

Turning to the green sectors now, it was energy stocks that topped today's market. The S&P/ASX 200 Energy Index (ASX: XEJ) roared 0.93% higher.

Financial shares ran relatively hot too, with the S&P/ASX 200 Financials Index (ASX: XFJ) jumping 0.88%.

Utilities stocks were spared as well. The S&P/ASX 200 Utilities Index (ASX: XUJ) bounced up 0.8% this Friday.

Finally, consumer staples shares held their value, illustrated by the S&P/ASX 200 Consumer Staples Index (ASX: XSJ)'s 0.4% rise.

Top 10 ASX 200 shares countdown

Taking out the top spot this Friday was energy stock Karoon Energy Ltd (ASX: KAR). Karoon shares shot up a healthy 10.84% this session to close the week at $1.79 each. There wasn't any news out that explains this, although most energy shares had a day to remember.

Here's the rest of today's best: 

Enjoy the weekend!

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

CBA and the other majors already face a lot of competition from the likes of ING, HSBC, Bank of Queensland Ltd (ASX: BOQ), Bendigo and Adelaide Bank Ltd (ASX: BEN), Pepper Money Ltd (ASX: PPM), Mystate Ltd (ASX: MYS), and AMP Ltd (ASX: AMP).

Perhaps the biggest impact on the big four banks in recent years has been Macquarie Group Ltd (ASX: MQG), which has genuinely become a serious competitor. Macquarie is rapidly capturing market share on both the loans and deposits side of things.

Revolut is a technology-focused UK bank that's already got a valuation that is similar to ANZ Group. According to reporting by the Australian Financial Review, Revolut has recently been granted an Australian banking licence.

Revolut to disrupt the major ASX bank shares?

The AFR reported that Revolut Bank Australia has secured an unrestricted licence from the Australian Prudential Regulation Authority – granted five years after the application.

Revolut reportedly already has 1 million Australian users, with that number doubling each of the last 4 years. Its key offering is a money management app that can make payments, move money between countries, and buy shares.

Customer deposits are now being moved to deposit accounts thanks to the banking licence. Revolut customers will have up to $250,000 of their money protected by the government guarantee.

Revolut can also pay interest on customer savings, while giving itself a better source of funding. The UK bank can also offer personal lending and credit cards.

The AFR reported that Revolut Bank Australia CEO Matt Baxby said:

The natural place to take share is from traditional banks. I don't think there's any question we're providing incremental competition and innovation. It's very difficult for them to play offence. Their natural game is defence because they've got large franchises' revenue streams to protect.

The newspaper also noted that "several major bank executives have privately cited Revolut as being one of the biggest competitors to local lenders."

So, it seems like major ASX bank shares are well aware of the potential competition from Revolut.

Should shareholders of CBA, ANZ, NAB, and Westpac be worried?

I think it could be unwise to completely dismiss what Revolut can achieve. Yes, some of the other smaller, digital banks that have come along have not been able to challenge them. They were too small, with the majors having insurmountable scale advantages.

However, I think it's important to look at how Macquarie has changed the sector. Macquarie was a well-funded business and had the scale to invest heavily, accept a lower margin, and build great tools. Revolut is already a big business, making billions of dollars in profit.

I've already been cautious investing in ASX bank shares for some time, and this gives me another reason to look at other ASX shares.

The post This UK bank plans to disrupt CBA, ANZ, NAB and Westpac appeared first on The Motley Fool Australia.