Small businesses can be just as good of an investment as a large business, perhaps an even better one, mainly due to their long-term earnings growth potential.

I'm optimistic that the following businesses have a very positive future.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is one of the largest operators of funerals and crematoria in Australia and New Zealand.

It's a morbid industry, but it's an important one for society. Sadly, the sector does see a certain level of demand each year. As the saying goes, there are two things certain in life – death and taxes.

Due to Australia's growing and ageing population, the number of deaths per year is expected to grow in the coming years, which gives the business ultra-long-term tailwinds.

Death volumes are expected to increase by an average of 2.9% between 2026 to 2035 and then grow by a further 2.4% from 2036 to 2045. New Zealand is also expected to long-term growth, though not quite as strong.

Inflation is another useful boost for the ASX All Ords stock's revenue because it helps boost the average revenue per funeral. Propel Funeral Partners reported that its compound annual growth rate (CAGR) has been 2.8% since FY15, though it was faster during the inflationary period earlier this decade.

I think this company's net profit can steadily grow over the long-term, making the recent decline an appealing time to buy, in my view.

Siteminder Ltd (ASX: SDR)

Siteminder is another ASX All Ords stock that I'm bullish about over the long-term because of its growth rate and plans for the future.

The business provides software to hotels around the world to help them run their operations and generate more revenue for their rooms over the course of a year.

The ASX All Ords stock has a goal of growing its revenue by 30% per year, which is a tremendous rate of compounding if it can achieve that goal. The business is offering new modules to clients to help them be even better at generating revenue from the software (such as analysis of data), including an offering that enables Siteminder to automatically adjust room prices for the hotel.

The company is currently growing revenue at a growth rate that's in mid-20% range and I think the market is underestimating at how much it could grow in the next few years.

Additionally, the company's operating profit (EBITDA) margins and cash flow margins are growing, particularly as it is now generating positive figures in those two areas (it has been in the minus but improving in previous years).

With the Siteminder share price down more than 60% in the past six months, I think this is a great time to invest.

The post 2 excellent ASX All Ords stocks I'd buy today appeared first on The Motley Fool Australia.

That's the view of analysts at Bell Potter, who are tipping market-beating returns over the next 12 months.

Which ASX 300 stock?

The stock that Bell Potter is recommending to clients is Propel Funeral Partners Ltd (ASX: PFP).

It is the second largest provider of funeral, cemetery, crematoria, and related services in the ANZ market.

Bell Potter notes that the company has a strong presence in regional areas and an emerging metropolitan presence.

While the ASX 300 stock underperformed expectations during the first half, the broker believes that better times are coming, especially given the weaker comparable period it is about to cycle. It explains:

PFP's recent 1H26 result from saw revenue led misses given the weaker than expected average revenue per funeral (ARPF) vs market expectations and BPe. However good cost control saw broadly similar EBITDA margins vs pcp. While no guidance was provided for FY26, a -3% in comparable volumes in the pcp (2H25) including a material contraction in 3Q26 and upcoming favourable demographics arising from the ageing of the baby boomer population were reiterated as catalysts for 2H26 and ahead.

The M&A pipeline was noted as conducive, in addition to PFP's ~10% collective ANZ market share, while the funding facility of $275m was refinanced ahead of expiry on more attractive terms (maturity in Oct-29).

Should you invest?

According to the note, Bell Potter sees plenty of value on offer here despite trimming its valuation.

This morning, the broker has retained its buy rating on the ASX 300 stock with a lowered price target of $5.00 (from $5.90).

Based on its current share price of $4.14, this implies potential upside of 21% for investors over the next 12 months.

In addition, Bell Potter is expecting an attractive 3.4% fully franked dividend yield over the 12 months, which boosts the total potential return to almost 25%.

Commenting on its buy recommendation, the broker said:

Our Price Target decreases ~15% to $5.00/share given our earnings changes and as we factor in a higher risk-free rate within our DCF valuation. With ~$135m debt capacity together with long maturity, we expect M&A activity to be supported by a healthy pipeline. As a less discretionary exposure within our Consumer Discretionary sector coverage, we remain optimistic on both PFP's underlying business & acquisition opportunity and see M&A as driving overall revenue growth above midsingle digit organic revenue growth.

Within the underlying business, we see relatively less challenging comps in 2H26 as PFP cycles organic volume declines (particularly in Feb-Apr), while we expect the demographic tailwinds from an ageing baby boomer population to be a sizable catalyst from 2026 onwards. We see the trading update in May as a potential catalyst. We also view the freehold property portfolio valued at cost less depreciation of ~$246m as a strong hedge to the net gearing level of 2.3x.

The post This ASX 300 stock could deliver a 25% return appeared first on The Motley Fool Australia.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to edge lower

The Australian share market looks set to edge lower on Friday following a relatively poor night in the United States. According to the latest SPI futures, the ASX 200 is expected to open 1 point lower this morning. In late trade on Wall Street, the Dow Jones is down 0.45%, the S&P 500 is down 0.3% and the Nasdaq is down 0.3%.

Oil prices fall

It could be a subdued finish to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.9% to US$94.52 a barrel and the Brent crude oil price is down 0.8% to US$106.53 a barrel. Oil prices fell after Israel revealed plans to help reopen the Strait of Hormuz.

Premier Investments results

Premier Investments Ltd (ASX: PMV) shares will be on watch today when the retailer releases its half-year results. The team at UBS believes the Smiggle and Peter Alexander owner will report Premier Retail sales of $460 million and net profit after tax of $99.3 million for the half. This is expected to be driven largely by a strong performance from the Peter Alexander brand, offsetting a weak performance from Smiggle.

Gold price sinks

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a poor finish to the week after the gold price sank overnight. According to CNBC, the gold futures price is down 5.15% to US$4,642.8 an ounce. Inflation and higher interest rate concerns weighed on the precious metal.

Buy Propel shares

Propel Funeral Partners Ltd (ASX: PFP) shares could be in the buy zone according to Bell Potter. This morning, the broker has reaffirmed its buy rating with a trimmed price target of $5.00. It said: "Within the underlying business, we see relatively less challenging comps in 2H26 as PFP cycles organic volume declines (particularly in Feb-Apr), while we expect the demographic tailwinds from an ageing baby boomer population to be a sizable catalyst from 2026 onwards. We see the trading update in May as a potential catalyst. We also view the freehold property portfolio valued at cost less depreciation of ~$246m as a strong hedge to the net gearing level of 2.3x."

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

Inflation and interest rates seem to be on the rise in 2026, meaning that the market has sent the share prices of some businesses down quite noticeably.

Being able to buy an investment at a lower price means getting a higher dividend yield and increasing the potential long-term capital gains.

With the lower share prices in mind, I'm calling out the following names as attractive buys.

Charter Hall Long WALE REIT (ASX: CLW)

This is a real estate investment trust (REIT) that owns a wide range of properties including government properties (such as Geoscience Australia), pubs, grocery and distribution, data centres and telecommunications, service stations, food manufacturing, waste and recycling, and plenty more.

The ASX dividend share has seen its share price decline by around 20% in the past year, despite ongoing rental income growth. Around half of the property portfolio has CPI-linked rental increases with the rest having fixed annual increases.

It reported having net tangible assets (NTA) of $4.68 at 31 December 2025, suggesting there's a significant valuation discount for investors, which is partly why the ASX dividend share's yield is so high.

The business is expecting to pay an annual distribution per unit of 25.5 cents in FY26, which translates into a distribution yield of approximately 7%, at the time of writing.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second largest funeral provider in Australia. It also has 41 cremation facilities and nine cemeteries.

The business is a beneficiary of Australia's ageing and growing population, giving the business ultra-long-term morbid tailwinds. Unfortunately, the number of deaths in Australia is expected to increase by an average of 2.9% per year from 2026 to 2035 and then increase 2.4% per year from 2026 to 2045.

It's steadily making acquisitions over the years to boost its scale and geographic presence, while also benefiting from organic growth of the average revenue per funeral. I'm expecting these tailwinds to boost its bottom line in the coming years, allowing the ASX dividend share to hike its dividend.

Its last two declared payments come to a grossed-up dividend yield of 4.9%, including franking credits, at the time of writing. The Propel share price has dropped 14% in the past month at the time of writing.

JB Hi-Fi Ltd (ASX: JBH)

JB Hi-Fi is Australia's leading electronics retailer and it also has a growing position in appliance and other house-related items. It has three other businesses – JB Hi-Fi New Zealand, The Good Guys and E&S.

The ASX dividend share has increased its payout almost every year over the last 15 years, which is an impressive record for an ASX retail share. I'd describe the business as one of the best retailers on the ASX and I expect this performance to continue.

However, the JB Hi-Fi share price has fallen around 30% in the past six months, despite a good FY26 half-year result and ongoing sales growth in the second half of FY26. The HY26 dividend was hiked by 23.5%.

The last two declared dividends from the business come to a grossed-up dividend yield of 7.4%, including franking credits, at the time of writing.

The post 3 top ASX dividend share buys for passive income in March appeared first on The Motley Fool Australia.

In order to receive a dividend, you must own the ASX share before its ex-dividend date.

Here is a sample of the large number of ASX All Ords shares with ex-dividend dates next week.

ASX All Ords shares about to go ex-dividend

Which companies will we hear from today?

The big one today is the half-yearly report from supermarket network Coles Group Ltd (ASX: COL).

Woolworths shares ripped this week after the ASX All Ords consumer staples giant reported a 16% profit lift to $859 million for 1H FY26.

We'll also hear from TPG Telecom Ltd (ASX: TPG), Michael Hill International Ltd (ASX: MHJ), and Pexa Group Ltd (ASX: PXA).

The latest report from The Star Entertainment Group Ltd (ASX: SGR) will also be interesting, as investors seek further news on the turnaround plan for the beleaguered casino operator.

Yesterday, Star Entertainment shares bounced on news of a debt refinancing deal, including extra liquidity to fund the turnaround plan.

The post 35 ASX All Ords shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

It's usually a lot easier growing a $500 million business into a $1 billion business than going from $50 billion to $100 billion.

The two businesses I want to highlight are both among the leaders in Australia at what they do and have plans for more long-term earnings growth.

Beacon Lighting Group Ltd (ASX: BLX)

Beacon Lighting has a national store network that sells lighting to consumers. It also has a commercial segment and an international segment.

There were a few positives from the recent FY26 half-year result. Total sales rose by 3.2%, company store comparative sales increased by 0.4%, international sales increased 13.5% and trade sales grew 12.6%.

However, operating expenses increased by 4.3% and this meant operating profit (EBIT) declined 5.5% and net profit dropped 6%.

I think there is a strong outlook for the company, with a possible increase from 130 stores at the end of HY26 to up to 217 stores over the long-term. The ASX All Ords stock continues to grow its commercial sales and market share.

If international sales continue to grow faster than total sales, then that segment will become a larger and more influential segment of the business. The rest of the world is a large addressable market, so there is a long growth runway here.

In five years, I'm expecting the business to be a materially large and more profitable business. It could be smart to invest while economic conditions and investor confidence are low.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second-largest funeral operator in Australia. It has a very defensive set of earnings because, sadly, there is a certain level of demand for its services each year. It's a morbid idea, but it provides an essential service.

Death volumes are expected to slowly but steadily rise over the next decade because of Australia's ageing and growing population, giving the ASX All Ords stock a useful tailwind.

Additionally, its average revenue per funeral is growing at roughly the speed of inflation over the years. Again, that's not an incredibly strong growth rate but it provides a decent growth boost for revenue.

A growing number of funerals combined with the average funeral delivering more revenue, should lead to a rising top line. Added to that, the business is occasionally making bolt-on acquisitions to boost its market share, geographic spread and scale.

In five years, I believe the business will be making more revenue, have a larger market share, generate more profit and pay a larger dividend. After dropping 10% in the last year, at the time of writing, I think this could be the right time to invest at the current Propel share price.

The post 2 excellent ASX All Ords stocks I'd buy today appeared first on The Motley Fool Australia.

Ideally, we don't want to trigger any capital gains tax (CGT) events if we don't need to, because that can mean handing over money to the ATO unnecessarily, disrupting the compounding potential of the portfolio.

I'm going to talk about two ASX shares that I've long-admired. I'm expecting rising profits and dividends from them over the long-term.

Australian Ethical Investment Ltd (ASX: AEF)

Australian Ethical describes itself as one of Australia's leading ethical investment managers. It aims to provide investors with investment management products that align with their values and provide long-term, risk-adjusted returns.

One of the main reasons why I think this business is such a compelling fund manager is because it provides customers with a superannuation option. This is compelling due to the consistent contributions that Aussies make to their superannuation, giving the company regular net inflows.

In the update to 31 December 2025, the company reported that it finished the period with funds under management (FUM) of $14.1 billion, with the business experiencing $0.11 billion of net inflows in its superannuation segment.

The company has been working on delivering efficiencies and scalability, which will hopefully help its margins in the coming years.

The ASX share has also pointed out that it continues to be recognised for its leadership in ethical investing, winning Money Magazine's 2026 best of the best awards for the best ESG superannuation product and best ESG pension product.

The forecast on CMC Invest suggests the business could pay an annual dividend per share in FY26, which would be a grossed-up dividend yield of 5.9%, including franking credits (at the time of writing).

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second-largest funeral operator in New Zealand and Australia. At the last count, it has 208 locations, including 41 cremation facilities and nine cemeteries.

One of the main tailwinds for the business is that death volumes are expected to increase in the coming years because of a growing and ageing population.

According to Propel, Australian death volumes are expected to increase by an average of 2.8% per year between 2025 to 2035 and 2.4% per year between 2036 to 2045. In New Zealand, death volumes are expected to increase by 2% per year between 2026 to 2035 and then 1.8% between 2036 to 2045.

The ASX share had a market share of 9% in 2024, compared to InvoCare's 21% market share. There is room for the company to expand its position in ANZ with both organic growth and acquisitions.

In the first quarter of FY26, the company delivered 3% growth of both revenue and operating profit (EBITDA) year-over-year. It benefited from a 2.7% rise of the average revenue per funeral and a 1% increase in funeral volumes.

According to the forecast on CMC Invest, it's expected to pay an annual dividend per share of 15.5 cents in FY27, which would be a grossed-up dividend yield of 4.5%, including franking credits (at the time of writing).

The post 2 ASX shares that I rate as buys for both growth and dividends appeared first on The Motley Fool Australia.

Large declines don't happen without a reason. They are usually sparked because the market thinks the company's future earnings power is being reduced.

In this case, it seems that many investors believe future earnings may not be as strong as previously expected.

In this case, there are heightened fears that artificial intelligence (AI) may be able to challenge existing business models, particularly ones that utilise technology to deliver their service.

So, in this circumstance, it could be an idea to look at ASX defensive shares.

Why ASX defensive shares could make sense right now

If fast-growing businesses aren't expected to see as much profit generation, then perhaps it could be a good idea to look at names that could deliver reliable earnings. If profit can grow as expected, then this could help provide support for the share price and perhaps even enable a higher share price if investors are looking for a safe haven.

Additionally, some ASX defensive shares may be viewed as ideas for passive income. The stable earnings can also help provide stable and growing dividends from those sorts of businesses.

Which reliable businesses I'd look at

There are a few different areas of the market that I think could provide investors with underlying earnings stability over the long-term. Of course, there can be no guarantee share prices won't be volatile in the short-term – that is just what happens with the share market occasionally.

Real estate investment trusts (REITs) are a good sector because of how they can generate resilient defensive rental income and pay distributions to investors. I'd invest in businesses like Centuria Industrial REIT (ASX: CIP), Charter Hall Long WALE REIT (ASX: CLW) and Rural Funds Group (ASX: RFF).

Businesses involved in providing essential services to their customers could be useful ASX defensive share buys. I'm thinking of names like Telstra Group Ltd (ASX: TLS), APA Group (ASX: APA) and Propel Funeral Partners Ltd (ASX: PFP).

Defensive food businesses could be smart buys – we all need to eat. I'm thinking of names like Coles Group Ltd (ASX: COL) and Rivco Australia Ltd (ASX: RIV).

Finally, diversified businesses with defensive cash flow generation could also be smart long-term choices, such as Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and Wesfarmers Ltd (ASX: WES).

I think most, if not all, of the above businesses are capable of growing their earnings over the long-term, even if AI affects the tech sector.

The post Is this the right time to invest in ASX defensive shares? appeared first on The Motley Fool Australia.

Some of the ASX tech shares are trading much cheaper than they were at the start of 2025. But, I'm going to highlight other investments today.

I'm optimistic that over ten years, both of the below ideas can outperform the S&P/ASX 200 Index (ASX: XJO).

Propel Funeral Partners Ltd (ASX: PFP)

This a morbid idea, but it's one that comes with ultra-long-term tailwinds.

Sadly, there are a certain number of funerals required each year, giving the business a very defensive set of earnings. As the saying goes, there are only two things certain in life – death and taxes.

Due to Australia's growing and ageing population, the business has significant tailwinds for demand in the coming decade or two.

According to Propel, the number of deaths is expected to increase in Australia by an average of 2.8% per year between 2025 to 2035 and then grow by 2.4% between 2036 to 2045. In other words, the company is expected to benefit from that tailwind for at least the next 20 years.

On top of that, the business is seeing its average revenue per funeral increase, which is helping offset inflation impacts. Between FY15 and FY25, the company saw its average revenue per funeral increase at an average of 3.1% per year. It has also made the occasional acquisition to boost its geographic presence.

Overall, I think the ASX share is likely to see rising earnings over time, which should provide a compelling tailwind for a higher Propel Funeral Partners share price.

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

This leading exchange-traded fund (ETF) gives investors exposure to some of the best businesses in the world, in my view.

The fund goes through a selection process to find businesses that could generate growth at a reasonable price (GARP). There are three different core factors it uses to identify great companies.

First, growth. It looks at the three-year sales per share growth and earnings per share (EPS) growth.

Second, value. The GARP ETF considers the earnings to price ratio, which is another way of calculating the price to earnings (P/E) ratio.

Third, quality. The fund looks at how much debt these businesses have (meaning debt levels) as well as the return on equity (ROE).

Overall, it has 250 companies spread across multiple countries and sectors, giving it good diversification. I'm calling this an ASX share because we can buy it on the ASX and it's invested in shares.

Past performance is not a guarantee of future performance, but the index this fund tracks has outperformed the global share market return over the past year, three years and five years.

It seems like a fund of great businesses trading at reasonable prices.

The post 2 compelling ASX shares I'd buy in a heartbeat appeared first on The Motley Fool Australia.

When businesses have a strong revenue growth outlook, they could deliver a lot of earnings expansion.

Both of the businesses have good tailwinds and I'm optimistic they can deliver good returns for long-term shareholders. I'd happily buy them with $5,000 (or more).

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second-largest provider of 'death care services' in Australia and New Zealand. It currently has 208 locations, including 41 cremation facilities and nine cemeteries.

Australia's growing and ageing tailwinds are likely to help deliver revenue growth for the business. Death volumes are expected to increase by 2.8% per year from 2025 to 2035 and then grow by 2.4% per year between 2036 to 2045.

That's not the strongest growth rate around, but there are two other things that can help drive the Australian stock's long-term success. Inflation is a powerful force to help drive its top line too – average revenue per funeral grew at a compound annual growth rate (CAGR) between FY15 and FY25.

The final tactic that Propel is utilising is acquisitions, which is helping expand its geographic presence and boost its scale.

According to the forecast on CMC Markets, the Propel share price is valued at 28x FY26's estimated earnings.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is one of the most compelling retail Australian stocks, in my view.

Its business model is impressive – the company sells a huge number of furniture and homeware products through a drop shipping model where products are sent directly to customers by suppliers, reducing the need to hold inventory, allowing for a larger product range. It's also capital-light, unlocking strong cash flow generation.

It also has a growing range of home improvement products, as well as trade and commercials 'solutions'.

The Australian stock's recent trade update showed growth was slower than expected, but I think this is the right time to invest at a much lower valuation. It's down 26% in the last month.

In FY26 to 20 November 2025, revenue grew by 18% year-over-year, with continuing market share growth. Home improvement revenue rose 40%, which bodes well for the future as it becomes a larger slice of the pie.

The company is steadily growing toward $1 billion of annual sales, which could bring benefits such as operating leverage and a larger marketing budget.

Temple & Webster is seeing fixed costs as a percentage of revenue decline over time – it reached 10.6% in FY25, down from 11.3% in FY24. Profit margins are also being boosted by AI and tech tools.

With ongoing adoption of online shopping and the recent expansion to New Zealand, the Australian stock still has a very promising future, in my opinion.

The post 2 strong Australian stocks to buy now with $5,000! appeared first on The Motley Fool Australia.

I'm a fan of receiving a solid dividend yield from an investment, but I'd also want to know that they can provide growth for investors over time as well.

Rising dividend payments are a good sign that the company is growing its underlying value, which is typically demonstrated through rising earnings.

Plus, larger payouts mean our finances benefit from higher profits. With that in mind, the two businesses below look compelling for both defensive earnings and rising dividends.

Centuria Industrial REIT (ASX: CIP)

This ASX 300 share describes itself as Australia's largest domestic pure play industrial real estate investment trust (REIT). It owns industrial assets across Australian cities, with a quality and diverse tenant base.

Rental earnings are typically defensive and I think industrial properties are even more defensive than sectors like office buildings or shopping centres. Plus, the Centuria Industrial REIT's tenants are signed on for relatively long leases, with a weighted average lease expiry (WALE) of around seven years.

The business is benefiting from solid rental growth – in FY25, it delivered like-for-like net operating income (NOI) growth of 5.8%. It's benefiting from low vacancy rates across Australian cities thanks to Australia's rising population, increasing e-commerce adoption, data centre requirements and other areas of demand.

The ASX 300 share is expecting to grow its operating earnings (FFO) per unit by up to 6% in FY26, helping fund distribution growth of 3% to 16.8 cents per unit. That translates into a potential distribution yield of 4.75%.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second largest funeral provider in Australia and New Zealand. At the last count, it had 205 locations, including 41 cremation facilities and nine cemeteries.

As the saying goes, there are only two things certain in life – death and taxes. And we can't invest in the Australian Taxation Office (ATO).

Sadly, as morbid as it is, there are a number of funerals required each year and that's expected to increase in the coming years.

According to Propel, death volumes are expected to increase by 2.8% per annum from 2025 to 2035 and 2.4% per annum between 2036 to 2045. In New Zealand, death volumes are expected to increase 1.9% per annum between 2025 to 2035 and then rise 1.8% per annum between 2036 to 2045.

Combined with a rising average revenue per funeral (which has increased at a compound annual growth rate (CAGR) of 3.1% since FY15), I think Propel's operating earnings and dividend are likely to rise in the coming years.

In FY25, the business paid an annual dividend per share of 14.4 cents, so its trailing grossed-up dividend yield is 4.1%, including franking credits. That's a solid starting point, in my view, and the ASX 300 share could deliver much more growth in the coming years.

The post Want to build up income? I believe these 2 ASX 300 shares are a buy appeared first on The Motley Fool Australia.

I'm not going to talk about the biggest businesses in Australia like Westpac Banking Corp (ASX: WBC) or National Australia Bank Ltd (ASX: NAB) because they're already huge businesses and have relatively slow growth prospects.

Instead, I'll highlight businesses I believe have the potential to grow earnings faster than the major banks or miners over the longer-term. Let's get into it.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store says it owns a portfolio of premium youth fashion brands. Its businesses include Universal Store, Perfect Stranger and CTC (under the THRILLS and Worship brands). It has more than 112 physical stores across Australia, as well as its online channels.

The company's strategy is to grow and develop its brands and retail formats to deliver a "carefully curated selection of on-trend apparel products to a target 16-to-35 year-old fashion focused customer."

Universal Store delivered pleasing growth in FY25, with group sales of $333.3 million (up 15.5%) year-over-year. The Universal Store sales rose 15% to $280.9 million with like-for-like sales growth of 13%. Perfect Stranger sales increased by 83.1% to $25.5 million and like-for-like sales increased by 25.5%.

Its product range is clearly resonating with customers, with strong growth last financial year, and group sales were up 17.2% in the seven weeks to 17 August 2025. The company has good momentum and plans to open between 11 to 17 new stores across the business.

In FY25, its underlying net profit after tax grew by 15.2% year-over-year and this helped fund an 8.5% higher dividend per share of 35.5 cents. At the time of writing, the business offers a grossed-up dividend yield of 6%, including franking credits.

I'm expecting Perfect Stranger to help drive the company to higher, strong earnings growth and dividends.  

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second-largest funeral provider in Australia and New Zealand. It has just over 200 locations, including 41 cremation facilities and nine cemeteries.

The business is exposed to unfortunate but strong tailwinds because there is an increasing number of deaths. The number of deaths is the most significant driver of revenue for the industry.

Propel notes that Australian death volumes are forecast to increase by 2.8% per year between 2025 to 2035 and then rise at a pace of 2.4% between 2036 to 2045.

On top of that, Propel is experiencing a rising average revenue per funeral, which saw comparable growth of 2.3% in FY25, in line with inflation.

I think both the funeral volumes and the average revenue per funeral are likely to rise in the coming years, helping the dividends and growth.

It currently has a grossed-up dividend yield of 4.1%, including franking credits.

The post 2 ASX shares that I think are buys for both growth and dividends appeared first on The Motley Fool Australia.

But, I wouldn't just buy anything and hold it for a long time, I'd only want to own investments that I believe could deliver earnings growth for an extended period of time.

Regular earnings growth should help deliver relatively good capital growth in a less volatile way than some cyclical industries. That's why the below two investments look compelling to me.

Propel Funerals Partners Ltd (ASX: PFP)

Propel is the second largest funeral operator in Australia and New Zealand. As morbid as it sounds, I think there are three key reasons to like the business.

Firstly, I'd say it has very defensive earnings. Sadly, there is a certain volume of funerals that occur each year. Plus, the price of funerals is generally rising alongside inflation, so the company has a solid organic tailwind for its top line and bottom line.

The main reason why I think it's a great long-term buy is the fact that it's exposed to the tailwind of rising projected deaths. Propel says that death volumes are expected to increase by 2.8% per year between 2025 to 2035 and then grow by another 2.4% per year between 2036 to 2045. While there may be slight variances to the growth rate some years, there are clear tailwinds for the business.

Over the long-term, I'm expecting the ASX share's operating profit margins to rise over time thanks to operating leverage.

Betashares Global Quality Leaders ETF (ASX: QLTY)

The QLTY ETF is one of the most appealing exchange-traded funds (ETFs), in my view.

I think every Australian would benefit from having good international shares in their portfolio because of the diversification and quality businesses. I'm calling this fund an ASX share because it's about investing in shares and we can buy it on the ASX.

This fund aims to invest in the highest-quality businesses from across the world. Not investing in the 'average' businesses has helped the ASX ETF deliver strong long-term returns. Past performance is not a guarantee of future returns, but it has delivered an average return of 14.5% per year since it was started in November 2018.

It has achieved that return by ensuring the businesses have a strong combined ranking across four characteristics – a high return on equity (ROE), high profitability, low leverage and earnings stability. I think many great businesses today are likely to stay strong for a long time, and this fund will adjust its portfolio if some businesses are no longer of sufficiently high quality. This means it could be a great investment for decades to come.

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

Propel is the second largest funeral operator in Australia and New Zealand. It has just over 200 locations, including 41 cremation facilities and nine cemeteries.

It's quite a morbid idea, but I think it has compelling attributes, so let's get into it.

Solid starting dividend yield

For a business to be counted as a good ASX dividend share in my books, I believe it needs to offer a good dividend yield. Simply paying a dividend isn't enough, in my view.

While this company doesn't have a huge dividend yield like some ASX mining shares or ASX retail shares, I think it's a good starting point considering how defensive the business is – sadly, a certain number of deaths occur each year.

Based on the company's FY25 dividend payout of 14.4 cents, it has a grossed-up dividend yield of 4.1%, including franking credits. That's comparable to any 12-month term deposit, in my view.

Plus, I'm expecting the payout to grow significantly as the years go by, thanks to the power of compounding.

Compelling long-term tailwinds

The business is significantly exposed to long-term tailwinds. Australia's population is growing and ageing, which results in forecasts that there will be an increasing number of deaths in the coming years.

Propel says that the number of deaths is the most significant driver of revenue in the 'death care' industry.

The ASX dividend share points out that the number of deaths in Australia grew by an average of 1.2% per year between 1990 and 2024. Death volumes are expected to increase at a rate of 2.8% per year between 2025 to 2035 and then grow by 2.4% between 2036 to 2045. In other words, annual death volumes are expected (on average) to rise every year for the next 20 years.

As one of the largest players in the industry, it's well-positioned to benefit from these tailwinds. Additionally, it makes acquisitions every so often to expand its geographic presence and boost scale.  

Pleasing financial growth

But, the business isn't just benefiting from the growth of funeral volumes. Inflation is also helping drive the top line.

When the company announced its FY25 result, it also gave a trading update for July 2025, which revealed a record month of revenue, exceeding $21.5 million. It saw seasonally stronger funeral volumes, but it also experienced average revenue per funeral growth of 2.7%, year-over-year.

While rampant inflation has calmed, the company is still seeing an increase in revenue per funeral, which is a bonus for its financials and can help drive the bottom line.

Over the long-term, I think the ASX dividend share's revenue, net profit and dividend can steadily climb.

There are few ASX dividend shares I'm as confident in their long-term growth as Propel, which is why I think it could be a good buy for income-focused Australians.

The post An ASX dividend stalwart every Australian should consider buying appeared first on The Motley Fool Australia.

For example, listed below is one ASX All Ords stock that Macquarie Group Ltd (ASX: MQG) believes could deliver big returns over the next 12 months.

Which ASX All Ords stock?

The stock that is getting a big thumbs up from Macquarie is Propel Funeral Partners Ltd (ASX: PFP).

As you might have guessed from its name, it is a funerals company that owns and operates funeral homes, cemeteries, and crematoria.

Macquarie was pleased with the company's "solid" performance in FY 2025 and its strong start to the new financial year. In respect to its results, the broker highlights that the ASX All Ords stock outperformed its guidance. It said:

FY25 result slightly ahead of guidance. Revenue of $226m beat guidance for $220-225m, with UEBITDA of $56.2m also ahead of $54-56m guidance. Given industry volume contracted ~3% in 2H25, this was a solid result.

Looking to FY 2026, the broker highlights that Propel had a record month in July. And while no guidance has been given for the year ahead, Macquarie is feeling confident. Especially given the prospect of earnings accretive acquisitions. It adds:

FY26 off to a good start. Jul'25 revenue was a record month, exceeding $21.5m. This reflected 1) seasonally stronger funeral volume; 2) ARPF growth of +2.7% YoY; and 3) contributions from acquisitions. PFP has not provided quantitative FY26 guidance, however we expect 1) organic death volume should return to ABS/StatsNZ forecast trends (+2-3% pa); and 2) ARPF growth should be broadly in line with inflation (+2-4% pa). Upside likely exists to our forecasts from potential acquisitions.

Time to buy

According to the note, Macquarie has retained its outperform rating on the ASX All Ords stock with an improved price target of $5.80 (from $5.66).

Based on its current share price of $5.05, this implies potential upside of 15% for investors over the next 12 months.

But the returns won't stop there. The broker expects dividend yields of 2.8% in FY 2026 and then 3.1% in FY 2027. This boosts the total potential 12-month return to approximately 18%.

Commenting on its recommendation, Macquarie said:

Retain outperform. Long-term fundamentals remain attractive, with M&A continuing to represent material earnings upside.

Valuation: TP +2.5% to $5.80 ($5.66 prior) as minor earnings cuts offset by 1) val roll fwd; and 2) moving to the mid-point of our 14-16x NTM EV/ EBITDA range. We value PFP on a 50:50 blended DCF and 16x NTM EV/ EBITDA multiple.

The post Macquarie tips almost 20% return for this ASX All Ords stock appeared first on The Motley Fool Australia.

We don't necessarily need to own an investment forever, but I think owning for longer periods of time is a good idea because it gives us more of an opportunity for an investment to work out positively.

There are some investments I couldn't commit to owning for the long-term. But, there are others that I could see myself owning for a long time to come. I normally mention a business like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) in an article like this, but there are three others I'll highlight.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is a morbid idea, but I think it's one of the most interesting businesses on the ASX for a long-term buy. It's a funeral provider, the second largest in Australia and New Zealand.

Due to the ageing demographics of Australia, the total number of deaths is expected to increase at a compound annual growth rate (CAGR) of 2.6% between 2025 to 2030. This growth rate could accelerate in the next decade, with a CAGR of 2.9% between 2031 to 2040.

While that's not incredible growth, it's a solid rate when added to the regular inflation of funeral prices and potential acquisitions the business is likely to see in the coming years.

With the operating leverage for an Australian stock like this, I'm expecting its operating profit margins to steadily climb over time, which could help push the Propel share price and dividend upwards.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is already one of the oldest businesses on the ASX and I think it will be around for a very long time to come.

My confidence is partly based on the fact that its operating model allows it to invest in new sectors, unlocking growth avenues. Some of the recent areas it has invested for growth include healthcare and lithium mining, which is quite different to its core competency of retail.

I think this Australian stock owns two of the best retailers in Australia – Bunnings and Kmart. They generate high returns on capital (ROC), are clear leaders in their subsectors and continue to invest for growth.

I'm optimistic Wesfarmers has a compelling long-term future if it continues expanding its best businesses and tries to unlock other ways to grow earnings.

Rural Funds Group (ASX: RFF)

I think this real estate investment trust (REIT) is one of the most Australian stocks out there – agriculture is a very important industry for the Australian economy.

However, farming can be a volatile and cyclical industry, so leasing farms could be a safer and more consistent way to make returns from the sector.

Rural Funds owns farms across the country, including cattle, almonds, vineyards and macadamias.

I like that the business can decide to invest in whichever farms it thinks are the best to deliver long-term returns. Farmland has been an important asset for thousands of years, so I think the underlying assets have a good future.

The Australian stock continues to trade at a very sizeable double-digit discount to its adjusted net asset value (NAV) – the underlying value of the business (including farm values, water entitlements and loans). I also think it's a great option for passive income with a distribution yield of around 6%.

The post ASX today: 3 Australian stocks to buy and hold for life appeared first on The Motley Fool Australia.

When business earnings are increasing, it makes it clear that the price/earnings (P/E) ratio is lower and more attractive.

Of course, it's not guaranteed that some companies are going to achieve net profit growth every year. But, if the company is exposed to long-term tailwinds or has significant growth plans, then regular profit growth is more likely to happen.

It's certainly possible that the share prices of the below businesses could drop during reporting season or the following months. However, I believe they're attractive for the price and the expansion I'm expecting.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second-largest funeral operator in Australia and New Zealand. It has more than 200 locations, including 41 cremation facilities and nine cemeteries.

The Propel share price is down by approximately 20% from the August 2024 high.

The ASX 300 share has done a good job at expanding its market share over the past decade, largely through acquisitions. But, its operating net profit is also growing thanks to demographic tailwinds and a rising average price per funeral.

Australia's population is growing and ageing, adding to the demand for Propel's services. According to the company, the total number of deaths is expected to rise at a compound annual growth rate (CAGR) of 2.6% between 2025 to 2030 and then 2.9% between 2031 to 2040.

Not only are funeral volumes growing, but the average revenue per funeral has increased at a CAGR since FY15, helping offset the impacts of the inflation of costs. In the FY25 first half period, the revenue rose 12% and operating net profit increased 21.1% – this demonstrates pleasing operating leverage.

I think the ASX 300 share will be generating a lot more net profit than it is today, so I'd be happy to buy Propel shares today at the lowest price.  

Guzman Y Gomez Ltd (ASX: GYG)

Mexican food business GYG is the other business I want to highlight. It has a network of more than 200 restaurants in Australia, as well as small but growing networks in Japan, Singapore and the US.

The ASX 300 share is growing at a rapid pace thanks to both growth at its existing network as well as adding more restaurants. In the third quarter of FY25, total network sales grew 23.6% to $289.5 million, with combined comparable sales growth of 11.1% for Australia, Singapore and Japan.

I'm not expecting tech-like returns from GYG, but if it can continue growing network sales at a double-digit pace, I believe it could deliver pleasing performance when combined with scale benefits and rising profit margins.

There isn't a clear growth ceiling for the business yet, in my view, as it can expand to countries like the UK and Canada.

I think the company is set up to perform well in the coming years, even if there is volatility in the short-term. I believe its profit generation will be much higher in the coming years, making the 35% decline in the last six months more appealing.

The post Why I think these ASX 300 shares are steals appeared first on The Motley Fool Australia.

There are other ASX shares that appeal to me because they offer even more defensive earnings and/or better growth potential.

Woolworths is best known as a supermarket retailer, but it also has a number of other businesses, including BIG W, PETstock, and foodservice (for commercial customers like restaurants).

The high inflation period between FY22 and FY24 saw Woolworths' sales accelerate, and that helped the company's bottom line, too. But inflation has now calmed, and Woolworths is now cutting its prices (and probably hurting the margins too). It can still grow over the long term, but there are other ASX defensive stocks I would rather buy first, like the two below.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second largest funeral provider in Australia and New Zealand. As the saying goes, there's only two things certain in life – death and taxes. And we can't invest in the Australian Taxation Office (ATO).

The company's revenue is benefiting from both funeral volume growth and an increase in the average revenue per funeral.

Australia's growing and ageing population is expected to lead to a steady increase in funeral volumes in the coming years. It's a morbid idea, but it does have long-term tailwinds.

According to Propel, the number of deaths is expected to increase at a compound annual growth rate (CAGR) of 2.8% between 2025 and 2035, and then grow by an average of 2.4% annually between 2036 and 2045. So, over time, I'm expecting Propel's funeral volumes to grow, boosted by acquisitions.

The average revenue per funeral has increased at a CAGR of 3.1% between FY15 to the first half of FY25, providing a good offset to inflation.

Thanks to the power of compounding, I think this ASX defensive stock can generate much more profit in five and ten years.

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

I think Soul Patts is one of the most defensive companies because it has a diversified portfolio spread across a wide number of industries.

Some of the sectors in which it invests include telecommunications, resources, industrial property, building products, financial services, credit, agriculture, swimming schools, electrification, funds management, and so on.

It has built its portfolio to be focused on resilient assets that provide defensive cash flow, and most of them are largely uncorrelated from each other.

Its portfolio is growing thanks to the investments themselves growing, and the company also regularly adds to its holdings by making additional asset purchases with excess cash flow (after it has paid its dividend).

Pleasingly, this ASX defensive stock has increased its annual dividend extremely consistently, while Woolworths shareholders have suffered a few declines. Soul Patts has grown its annual ordinary dividend every year for 27 years in a row.

This business currently offers a grossed-up dividend yield of around 3.5%, including franking credits, at the time of writing.

The post Overinvested in Woolworths shares? Here are two alternative ASX defensive stocks I prefer appeared first on The Motley Fool Australia.

Of course, he hasn't actually called me and said I should buy cheap ASX stocks. But, in the current investing environment I think it makes a lot of sense to look at cheap businesses.

The S&P/ASX 200 Index (ASX: XJO) is close to its all-time high. That means that many of the underlying businesses are close to their all-time highs.

Over time, share prices are likely to rise if businesses are growing their profits. But, valuations can become stretched in they run too hard too quickly. The higher price/earnings (P/E) ratios (and other similar metrics) go, the more thoughtful I'd be about which investments I'd buy.

Warren Buffett advice

To me, a cheap ASX share doesn't necessarily mean the businesses with the lowest P/E ratios on the ASX. But, a cheap stock could be one that has fallen recently, if it's trading on a lower P/E ratio or if it's trading at a price that's lower than its net asset value (NAV).

There are a couple of pieces of advice from the Berkshire Hathaway talisman that is really relevant to the current situation.

Buffett said:

It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

Another quote that he has said which I believe is very relevant includes:

Price is what you pay. Value is what you get.

Finally, Warren Buffett has noted how great businesses usually win over the long-term:

Time is the friend of the wonderful company, the energy of the mediocre.

Cheap ASX shares

There are a few businesses I think look very appealing in the current investment market.

Singapore telco Tuas Ltd (ASX: TUA) and Mexican restaurant business Guzman Y Gomez Ltd (ASX: GYG) have been seen their share prices decline, but I believe they have huge growth potential in the coming years with strong progress in existing markets and the potential to grow into new countries.

Propel Funeral Partners Ltd (ASX: PFP) shares are down around 20% since the start of 2025, but it's exposed to the long-term growth tailwinds of Australia's ageing and growing population. This is a buy-the-dip opportunity in my view.

MFF Capital Investments Ltd (ASX: MFF) invests in plenty of the world's highest quality businesses with growth potential and I like the flexibility it has to invest wherever it sees potential. However, it's trading at an approximate discount of 10% to its asset value, making this an appealing time to invest, in my view.

They aren't the only cheap ASX shares out there, but these are some of the main ones I'm focused on right now with Warren Buffett's advice in mind.

The post I'm listening to Warren Buffett and buying cheap ASX shares appeared first on The Motley Fool Australia.

Propel is the second largest private provider of death care services in Australia and New Zealand. It currently operates from 202 locations, including 40 cremation facilities and nine cemeteries.

I think it has very defensive earnings because of the sector that it operates in. But, there's more to it than just ultra-defensive demand. Its bottom line could grow in a number of different ways, each one adding to the growth outlook. So, let's look at those growth avenues.

Volume growth

The ASX small-cap stock is exposed to some of the longest-term tailwinds in the market, which could drive future demand for Propel's services.

According to Propel, a 'death boom' is expected. Death volumes are expected to increase at a compound annual growth rate (CAGR) of 2.6% between 2025 and 2030 and 2.9% between 2031 and 2040.

Having generally steady revenue growth is a very appealing attribute for the business.

Revenue per funeral

The company's revenue could grow faster than the volume growth, thanks to the rising funeral prices.

Propel's average revenue per funeral is growing at roughly the speed of inflation, which is good protection against cost inflation.

Since FY15, the company's average revenue per funeral has increased at a CAGR of 3.1%.

I think ongoing growth here could help the company's profit margins.

Profit margins increasing

While the top line is likely to continue growing in the coming years, I think the bottom line could rise even faster thanks to improving profit margins. Scale benefits are a powerful financial force that I expect will assist the company's net profit line in moving forward. The company is also utilising acquisitions to become larger and grow its geographic footprint.

In the FY25 first half result, the company grew by 12% to $115.2 million, while operating net profit after tax (NPAT) increased 21.1% to $12.2 million.

I'm not expecting the ASX small-cap stock's net profit to grow at almost double the pace of revenue forever. But the HY25 result demonstrated how the company is becoming increasingly profitable for shareholders.

Considering the Propel share price is usually valued by how much profit the business makes, the company's future profit growth seems very promising. I'm also hopeful of a growing dividend if the profit can continue rising.

The post Why I think this ASX small-cap stock is a bargain at $4.74 appeared first on The Motley Fool Australia.