Despite extensive volatility, both the All Ordinaries Index (ASX: XAO) and S&P/ASX 200 Index (ASX: XJO) are relatively flat for the year to date.

What's important for investors to understand is that, while market volatility is uncomfortable, it is normal.

In fact, investors who manage to stay disciplined during periods of uncertainty often see some of their best long-term returns.

The trick is knowing how to manage volatile market conditions when they arise.

Here are five tips to help weather the storm.

1. Focus on the business, not the share price

Navigating a volatile ASX share market requires focusing on resilient, fundamentally strong companies

Oracle of Omaha Warren Buffett once famously said that "Charlie and I are not stock-pickers; we are business-pickers". 

The idea is, investors make smarter investing decisions when they focus on the business, not the share price. That means looking for ASX shares that can handle volatility, rather than looking for the next cheap stock.

These would be defensive assets and blue-chip stocks with strong balance sheets and stable earnings. 

For example, Telstra Group Ltd (ASX: TLS) is a classic defensive asset. Regardless of how severe inflation or the cost of living gets, connectivity and telecommunications will remain a high priority for most Australians. That means the business can perform steadily, regardless of what stage of the economic cycle we're in. 

Transurban Group (ASX: TCL) is another high-grade defensive ASX stock means the toll road operator is able to generate a resilient cash flow regardless of the economic conditions. 

2. Avoid emotional decisions

Surviving volatile ASX shares markets couldn't be possible if investors react with a knee-jerk decision to every market swing.

This includes panic selling after a sharp fall, or buying into a low-quality stock just because it looks cheap. 

Waiting too long to buy back in is another emotional error that investors make. That's because by the time things feel safe again, markets may have recovered.

3. Think about the long-term

Many investors forget that short-term volatility doesn't necessarily affect long-term growth.

For these investors, it would be helpful to focus on the long-term goals of your investments during uncertain periods and block out the short-term market noise.

Resilient investors which can ride short-term fluctuations could be rewarded with positive returns further down the road, especially if they've picked a good-quality business.

When markets become choppy, it can be tempting to sell up to avoid further losses. But this could also mean locking losses unnecessarily. 

A better approach is usually to stay calm and stick to the plan. 

4. Focus on diversity

Diversifying ASX share market investments across and within a range of different sectors and businesses is the simplest way to spread risk.

That's because returns from different assets are rarely affected by (and react to) the same headwinds at the same time.

Australian investors should avoid relying solely on Australian large-cap stocks. Instead, spread capital across different sectors and consider global exposures to dilute domestic risks even further.

5. Keep an eye out for opportunities

Volatile ASX share markets often present once-in-a-blue-moon investment opportunities. 

Rather than keeping a low profile when sentiment is low, and buying back in when markets are rebounding, investors should look for the perfect opportunity.

Ideally, investors should look to buy high-quality assets at a discount when other investors panic and sell, and pull back or sell when market overconfidence drives share prices to unrealistic heights.

The post 5 tips to navigate ASX share market volatility appeared first on The Motley Fool Australia.

Amid a highly volatile market, brokers downgraded several ASX 200 shares this week.

Let's take a look at their new ratings and 12-month share price targets for six ASX 200 stocks.

CSL Ltd (ASX: CSL)

The CSL share price is $96, up 3.7% today.

The market's biggest ASX 200 healthcare company has lost 44% of its valuation in the calendar year to date (YTD).

Jefferies downgraded CSL shares to a hold rating and slashed its price target from $195 to $108.

This still implies a potential 12% upside ahead.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is $39.77, down 0.9% on Friday.

Over the past six months, this ASX 200 tech share has fallen 46%.

WiseTech Global is no longer the market's biggest tech company. It handed over the reins to Xero Ltd (ASX: XRO) last month.

JP Morgan downgraded WiseTech shares to a hold rating with a $40 target this week.

This suggests the stock is already fully valued.

Telstra Group Ltd (ASX: TLS)

The Telstra share price is $4.95, down 0.3% today.

The ASX 200 telco share has fallen 9% over the past month.

Macquarie downgraded Telstra shares to a hold rating this week.

The broker shaved its 12-month price target from $5.64 to $5.57.

This suggests just a 2% potential upside left in the year ahead.

Capricorn Metals Ltd (ASX: CMM)

The Capricorn Metals share price is $12.90, down 3.2% today.

This ASX 200 gold mining share has fallen 11% YTD.

Goldman Sachs downgraded Capricorn Metals shares to a hold rating on Thursday.

The broker lowered its 12-month target from $17.60 to $16.90.

This still implies a healthy potential upside of 29% ahead.

Find out why the gold price has fallen since the Iran war began here.

IGO Ltd (ASX: IGO)

The IGO share price is $8.96, down 3.2% today.

This ASX 200 lithium share has risen 9% YTD.

JP Morgan downgraded IGO shares to a hold rating this week.

However, the broker lifted its 12-month price target from $8.50 to $9.50.

This indicates capital gains of 7% over the next year. 

Harvey Norman Holdings Ltd (ASX: HVN) 

The Harvey Norman share price is $4.43, up 0.8% on Friday.

This ASX 200 consumer discretionary share has taken a big tumble in 2026.

The furniture retailer has lost 37% of its valuation YTD.

Macquarie downgraded Harvey Norman shares to a hold rating this week.

The broker slashed its price target from $6.60 to $4.50.

This suggests potential capital growth of just 2% over the next year. 

The post 6 ASX 200 shares downgraded by analysts this week appeared first on The Motley Fool Australia.

If you are, it could be worth considering the three ASX dividend shares in this article.

Here's what you need to know about them:

Amcor plc (ASX: AMC)

The first ASX dividend share to look at is Amcor. It is a global packaging business that serves customers across food, beverage, healthcare, personal care, and other consumer categories.

Its products may not grab headlines, but they sit inside supply chains that consumers interact with every day. From medicine packaging to food containers and household products, Amcor plays a quiet but important role in getting essential goods onto shelves safely and efficiently.

That gives the business a defensive quality. Demand can still move with economic conditions and customer volumes, but packaging tied to everyday products is less exposed than many discretionary categories.

Amcor shares are forecast to provide dividend yields around 7% in both FY 2026 and FY 2027.

Telstra Group Ltd (ASX: TLS)

Another ASX dividend share that could be worth a look in June is Telstra.

Its position in Australian telecommunications gives Telstra a strong base for income investors. Its mobile network remains a major competitive advantage, particularly as households and businesses continue using more data.

Connectivity has become essential infrastructure. People may cut back on travel, entertainment, or big-ticket purchases when budgets are tight, but phone and internet services are much harder to live without.

That defensive demand is a key reason Telstra remains popular with dividend investors. The company also has a clearer structure than it did in the past, with management focused on mobile, network quality, enterprise services, and cost control.

Telstra shares are forecast to offer dividend yields around 4.2% this year and next.

Woolworths Group Ltd (ASX: WOW)

A third ASX dividend share for income investors to consider is Woolworths.

It is of course one of Australia's most important consumer businesses. Its supermarkets are used by millions of shoppers each week, giving the company a central role in household spending.

The grocery sector is not without challenges. Competition can be intense, costs are rising, and regulatory scrutiny remains a risk.

Even so, Woolworths has advantages that are difficult to replicate. Its store network, supply chain, digital capabilities, loyalty program, and brand recognition give it a strong position in a market where scale matters. This makes Woolworths a useful defensive income option.

Woolworths shares are expected to offer dividend yields of 2.8% and 3.2% in FY 2026 and FY 2027, respectively.

The post Why Telstra and these defensive ASX dividend shares could be top buys appeared first on The Motley Fool Australia.

Defensive stocks are companies whose earnings tend to remain relatively steady throughout times of economic instability. They typically operate in "non-discretionary" industries where demand remains relatively stable even when consumer confidence dips. 

Their stable nature means they can help reduce the volatility of an overall investment portfolio.

This is particularly important during the current economic climate, where geopolitical tensions, stubbornly high inflation, and erratic sentiment are causing some ASX stocks to fluctuate wildly in value.

Here are three excellent ASX defensive stocks I'd have in my portfolio to weather the next storm.

Telstra Group Ltd (ASX: TLS)

Telstra is a dominant Australian telecommunications company. 

It owns and operates the nation's largest mobile network and is a major fixed-line internet provider. Mobile phone and internet services are not considered daily necessities but rather discretionary items, which makes Telstra a classic ASX defensive stock.

The company is well-positioned to record a stable revenue and earnings, regardless of the stage of the economic cycle or how the ASX is faring overall.

Telstra's defensive nature also means it can pay shareholders a consistent, reliable passive income. 

The telco's most recent dividend was paid out in March. Shareholders were given an interim dividend of 10.5 cents per share, 90.48% franked. 

For FY26, Telstra is forecast to pay a total dividend of 21 cents (up from 19 cents in FY25). This translates to a forward dividend yield of around 4.1% excluding franking credits, at the time of writing. 

Wesfarmers Ltd (ASX: WES)

Wesfarmers is a leading Australian blue-chip company. At the time of writing, the business is the 7th largest company listed on the ASX with a market cap of around $90 billion. 

The company is well-established and financially sound with a history of reliable growth and stability. 

It's this stability and consistent long-term net profit growth that make the company a fantastic ASX defensive stock. It also means Wesfarmers is able to pay a reliable and consistent passive income to shareholders.

Wesfarmers' most recent dividend payment was handed out to investors in February. The Kmart and Bunnings owner paid a fully-franked interim dividend of $1.02 per share, up 7.4%.

For FY26, the ASX defensive stock is expected to pay a total $2.13 dividend per unit, which translates to a forward dividend yield of around 2.7% at the time of writing.

Transurban Group (ASX: TCL)

Transurban is a global infrastructure business that builds and operates major urban toll road networks, tunnels, and bridges. It operates 22 assets across Australia, the US, and Canada.

It is widely considered a high-grade defensive ASX dividend stock. 

That's because roads are an essential service. Even in the event of a downturn, people still need to travel to work or transport goods and services. Transurban's toll roads typically have stable traffic volumes year-round, which means the business enjoys resilient cash flow regardless of economic conditions. 

Another bonus is that most of its toll roads are on an annual contract. This means Transurban is able to increase its toll prices each year in line with rising inflation.

In February, the toll road operator paid an interim dividend of 34 cents per share, unfranked, to its shareholders.

For FY26, the company has forecast a distribution of 69 cents per security, which implies a forward dividend yield of around 4.6%, at the time of writing.

The post 3 ASX defensive stocks to buy while sharemarkets are volatile appeared first on The Motley Fool Australia.

Australia's benchmark index has experienced volatility in 2026. 

This has been due to several headwinds including inflation, interest rate hikes and global conflict. 

At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is essentially flat for the year to date.

The case for defensive shares

With market volatility continuing to rattle investors in 2026, defensive ASX shares are once again proving their worth. 

Companies operating in essential sectors such as consumer staples, utilities, and telecommunications tend to generate relatively stable earnings regardless of economic conditions. 

This makes them attractive when growth stocks are under pressure. 

While defensive shares may not deliver the market's biggest gains during bull runs, their ability to preserve capital, maintain reliable cash flows, and often pay consistent dividends can provide valuable stability during uncertain periods. 

For long-term investors, the recent market weakness could present an opportunity to accumulate high-quality defensive businesses at more attractive valuations while positioning a portfolio to better withstand further volatility.

Here are three examples of defensive shares that have held steady in 2026 and outperformed the ASX 200. 

Woolworths Group Ltd (ASX: WOW)

Woolworths shares are a popular defensive option amongst investors. 

As one of Australia's supermarket giants, it sells essential products that consumers continue to buy regardless of economic conditions. 

This resilience helps support relatively stable revenue and cash flow, making Woolworths a popular choice for investors seeking stability during periods of market volatility.

This has been on full display this year, as Woolworths shares have risen almost 20% year to date. 

Telstra Group Ltd (ASX: TLS)

Telstra is often viewed as a defensive stock because it provides essential telecommunications services that households and businesses rely on regardless of economic conditions. 

Its recurring revenue from mobile, internet, and infrastructure services helps support relatively stable cash flows even during periods of market volatility.

So far in 2026, it has been able to shake some of the broader market sell-offs and rise just over 5%. 

It also provides some volatility relief through its historically high dividend yield, which can also provide passive income during down periods of capital growth. 

Transurban Group (ASX: TCL)

Finally, Transurban Group is considered defensive because it operates toll roads that generate predictable, usage-based revenue from essential commuter and freight traffic. 

Its long-term concession agreements and inflation-linked pricing features further enhance the stability and visibility of its cash flows through economic cycles.

The company has seen its share price rise 6% so far year to date, outperforming the broader ASX 200. 

The post Which defensive shares are outperforming the ASX 200 appeared first on The Motley Fool Australia.

They are owned for yield, not growth, and they tend to move slowly in both directions.

TPG Telecom Ltd (ASX: TPG) has offered investors rather less stability than the sector's reputation might suggest, with shares down 30% over the past twelve months.

But this week's Investor Day contained a commitment that income investors specifically should pay close attention to.

What TPG said at its Investor Day

TPG Telecom held its annual Analyst and Investor Day on Tuesday 3 June 2026.

The company presented a first-half 2026 trading update alongside its medium-term strategic direction.

TPG delivered two important messages for income investors.

First, mobile service revenue continues to grow strongly. The company forecasts 70,000 to 80,000 new mobile subscribers in the first half of FY2026. EBITDA growth is also expected to outpace revenue growth as the company's cost discipline takes hold.

Second, and most importantly for dividend investors, management confirmed that dividend growth is expected to continue in line with sustainable profit and cash flow growth.

This is a meaningful upgrade to the dividend policy from prior years when capital was being prioritised for debt reduction.

The financial transformation behind the dividend commitment

The dividend growth commitment is credible because of the financial transformation underpinning.

In FY2025, TPG's operating free cash flow almost doubled to $1.91 billion. This was a dramatic improvement from prior years when heavy capital expenditure on the mobile network consumed the bulk of cash generation.

Net bank borrowings fell from $4.1 billion to $1.361 billion over the same period, dramatically reducing the financial risk that had previously constrained dividend capacity.

Total FY2025 dividends paid were $0.18 per share, franked at 30%.

Management is now guiding for FY2026 EBITDA of $1.665 billion to $1.735 billion and capital expenditure of approximately $750 million.

This combination implies continued strong free cash flow generation and growing capacity to lift the dividend.

The current yield picture

At the current TPG share price, the trailing dividend yield sits at approximately 4.9% on a partially franked basis.

This yield does not compare unfavourably to the big four banks, particularly ANZ Group Holdings Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC), which carry their own earnings risks in the current high-rate environment.

Furthermore, the partially franked dividend does carry some franking credit value for Australian taxpayers. This should improve their effective after-tax yield above the headline figure.

The key question for income investors is not the current yield but the trajectory.

A business with nearly doubling free cash flow, dramatically lower debt, and a new dividend growth policy is precisely the setup from which reliable income growth tends to emerge over a three to five-year horizon.

The risks worth knowing

TPG's broadband subscriber base has been declining as the company shifts focus toward mobile and away from legacy fixed-line services.

This transition has created some revenue headwinds in the near term that management is working to offset through cost reduction and mobile subscriber growth.

The company also flagged that spectrum renewal costs from 2028 represent a capital expenditure risk that will need to be managed carefully.

Competition from Telstra (ASX: TLS) and Optus in the mobile market remains intense, and any meaningful loss of mobile market share would directly threaten the earnings trajectory that underpins the new dividend policy.

Foolish takeaway

TPG shares have underperformed the market significantly over the past year.

That underperformance has created a more attractive entry point for income investors than has been available in some time.

A dividend growth commitment backed by nearly doubling free cash flow and dramatically reduced debt is not something to overlook.

For patient income investors comfortable with a telco turnaround story, TPG shares deserve serious consideration.

The post TPG Telecom just raised its dividend. Here's what that means for income investors appeared first on The Motley Fool Australia.

When households are under pressure, business confidence is mixed, and interest rates remain a key focus, income investors need to be selective, especially for a retirement portfolio.

With that in mind, here are three strong ASX dividend shares that could be top options for retirees right now.

APA Group (ASX: APA)

The first ASX dividend share to look at is APA Group.

APA sits behind a large part of Australia's energy system. Its pipelines, storage assets, processing facilities, and power infrastructure help connect energy supply with demand across the country.

That gives the business a useful role in a period of economic uncertainty. Energy security remains important whether the economy is strong or weak. Households, businesses, manufacturers, and utilities all need reliable energy infrastructure to keep operating.

APA is also positioned in a part of the market where long-life assets matter. Pipelines and related infrastructure are not easy to replicate, and that can support more predictable cash flows than many cyclical sectors.

The market is forecasting a 5.7% dividend yield from APA shares in FY 2027.

HomeCo Daily Needs REIT (ASX: HDN)

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

This property trust is focused on retail and services assets that sit close to everyday spending. Its centres are built around categories such as supermarkets, pharmacies, medical services, childcare, large-format retail, and other regular-use tenants.

That matters when the economy is uncertain. Consumers may delay big-ticket purchases or cut back on discretionary spending, but many daily needs categories remain part of normal household life.

HomeCo Daily Needs REIT therefore offers a different type of property exposure from trusts that depend heavily on office demand or fashion-focused shopping centres.

Overall, the trust's tenant mix and convenience-based assets could make its rental income more resilient than many parts of the property market.

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

Telstra Group Ltd (ASX: TLS)

A third ASX dividend share to consider is Telstra.

Telstra's strength is its position in essential connectivity. Its mobile network, fixed-line services, and enterprise products help support how Australians communicate, work, bank, shop, and access digital services.

That makes the telco giant less exposed to some of the pressures facing more discretionary sectors. Consumers may reduce spending elsewhere, but phone and data services have become hard to cut from household and business budgets.

Telstra has also become a simpler business in recent years, with management focused on mobile leadership, cost control, and improving returns from its core operations.

Competition remains a risk, but in an uncertain economy, a dominant telecommunications business with defensive earnings can still be highly valuable.

The market is expecting Telstra to pay a 21.5 cents per share fully franked dividend in FY 2027. This represents a forward dividend yield of approximately 4.1%.

The post 3 strong ASX dividend shares for retirees to buy appeared first on The Motley Fool Australia.

The global oil shock continued, with the Strait of Hormuz remaining effectively closed with scores of oil tankers stranded.

The Reserve Bank of Australia raised interest rates for a third time in 2026 last month due to resurgent inflation.

Softer-than-expected inflation data and 18,600 job losses in April suggest the RBA is unlikely to raise rates again this month.

The market expects the RBA to keep interest rates on hold at 4.35% on 16 June.

Changes to capital gains tax (CGT) proposed in the Federal Budget shocked some investors last month.

The 50% CGT discount for assets held for more than a year will be replaced by cost-base indexation and a minimum 30% CGT rate from 1 July 2027.

Existing investments in ASX shares and property will be grandfathered.

That means the 50% CGT discount will continue to apply to gains accrued before 1 July 2027 on those assets.

After 1 July 2027, cost base indexation will apply for future gains on those existing investments.

There is one exception under the changes. Investors who buy new properties will be able to choose between the two CGT methods.

Private wealth and investment advisory firm, Medallion Financial Group, says the changes may encourage more focus on yield.

For example, investors may prefer to accumulate more franked ASX dividend shares over growth investments.

Drew Meredith, a principal adviser at Wattle Partners, provides 5 tips for investors considering topping up their dividend stocks.

Most bought ASX shares in May

The following ASX shares and ETFs were the most bought by investors using the Bell Direct trading platform last month.

The rankings are based on order of net value of buy orders, minus sell orders, placed by Bell Direct clients.

Given the number of experts discussing the enhanced appeal of dividends under the CGT changes, it's interesting to see the market's largest ASX dividend ETF at the top of the buy list.

Source: Bell Direct

Most sold ASX shares last month

Source: Bell Direct

The post Top 10 ASX shares bought and sold by investors in May appeared first on The Motley Fool Australia.

As Australia's largest telco, it's in a strong position to continuing increasing subscription prices for Australians. While this may be a headwind for subscriber growth, it's certainly a tailwind for margins and the average revenue per user (ARPU).

Let's take a look at what analysts think could happen with Telstra's earnings in the years ahead considering how that could influence the Telstra share price.

FY26

We've already seen the Telstra FY26 half-year result, which included a number of positives.

In the first-half of FY26, mobile ARPU grew by 5.1% and mobile service revenue grew by 5.6%. Overall mobile income rose by 4% to $5.8 billion and operating profit (EBITDA) grew 4% to $2.7 billion.

The company's overall total income rose 0.2% to $11.8 billion, operating profit (EBITDA) grew 4.7% to $4.4 billion, EBIT climbed 9.2% to $2 billion and earnings per share (EPS) increased 11.2% to 9.9 cents. Cash EPS grew 19.7% to 14 cents. This helped fund a 10.5% rise of the dividend per share to 10.5 cents.

According to the projection on CMC Invest, Telstra is projected to generate EPS of 20.4 cents in FY26.

That means the ASX telco share is now valued at 25x FY26's estimated earnings.

FY27

The company's net profit is expected to increase in the subsequent financial year – earnings growth would be very supportive for the Telstra share price in that year.

In the 2027 financial year, Telstra is forecast to make EPS of 22.1 cents, which would represent year-over-year growth of 8.3%. I think most ASX blue-chip businesses would be happy with that level of growth.

At the time of writing, that forecast equates to the Telstra share price being valued at 23x FY27's estimated earnings.

FY28

The final year of this series of projections is for the 2028 financial year.

According to the forecast on CMC Invest, the business is projected to generate EPS of 23.4 cents. That would represent year-over-year growth of 5.9%, which I'd describe as solid considering it would come after previous years of growth.

Using the Telstra share price at the time of writing, it's valued at 22x FY28's estimated earnings.

Is this a good time to invest at the current Telstra share price?

Analysts generally don't seem to think the ASX telco share is going to do much in the shorter-term. According to CMC Invest, there are currently four hold ratings and one buy rating. Those five ratings have an average price target of $5.21.

There could be a better pick than Telstra at the current value.

The post Here's the earnings forecast out to 2028 for Telstra shares appeared first on The Motley Fool Australia.

I do not expect them to be exciting every year. I want businesses with strong market positions, reliable demand, and the ability to keep paying income through different parts of the cycle.

Three ASX dividend shares I would buy and hold are named in this article.

Telstra Group Ltd (ASX: TLS)

The first defensive ASX dividend share I like is Telstra.

Telstra owns essential telecommunications infrastructure and provides mobile, internet, and connectivity services to millions of Australians.

That gives it a defensive quality I find attractive. People may cut back on some discretionary spending when budgets are tight, but mobile and internet access are close to essential for households and businesses.

I also like Telstra's mobile network position. The company has invested heavily in its network over many years, and that remains a key competitive advantage.

This does not mean Telstra is risk-free. Competition, regulation, capital spending, and technology shifts can all affect the business. But I think its earnings base is more resilient than many other ASX shares.

For income investors, Telstra's fully franked dividends are a major attraction. The dividend yield may not always be the highest on the market, but I think the combination of income, franking, and defensive demand makes it a strong dividend holding.

Coles Group Ltd (ASX: COL)

Another ASX dividend share I would buy and hold is Coles.

Supermarkets are not immune from pressure. Costs can rise, competition can be intense, and shoppers are always looking for value.

But food and household essentials are still repeat-purchase categories. That gives Coles a level of demand resilience that many businesses do not have.

I also think Coles has several ways to keep improving over time. Private label, loyalty, online grocery, supply chain investment, and store productivity can all help the business defend margins and serve customers more efficiently.

In an uncertain economy, I think value becomes even more important. Coles has the scale and brand strength to compete for household spending while still generating cash flow.

Transurban Group (ASX: TCL)

The third ASX dividend share I would consider is Transurban.

Transurban owns toll road assets in major urban areas. These are long-life infrastructure assets that can generate cash flow over many years.

I like the toll road model because it is linked to transport demand, population growth, and urban congestion. Traffic can move around in the short term, but over long periods, well-located road networks can remain highly valuable and support growing distributions.

There are risks. The company carries debt, and higher interest rates can affect infrastructure valuations. Traffic levels, regulation, project costs, and political pressure can also influence returns.

But I think Transurban still has attractive defensive qualities. Its assets are difficult to replicate, and its income profile can appeal to investors looking beyond traditional bank dividends.

Foolish takeaway

Defensive dividend shares do not need to be exciting to be useful.

For a long-term income portfolio, I think the key is owning businesses that can keep generating cash even when the economic backdrop becomes less friendly. These three ASX shares are exposed to different parts of everyday life, which is what makes the mix appealing to me.

They will not remove risk from a portfolio, and dividends are never guaranteed. But for investors wanting income, resilience, and a little more balance, I think they could be shares worth holding for years.

The post 3 defensive ASX dividend shares I'd buy and hold appeared first on The Motley Fool Australia.

Dividends have always been a major drawcard for investing in the Australian stock market. However, the run that the S&P/ASX 200 Index (ASX: XJO) has been on over the past two years or so has had the less desirable effect of lowering the dividend yields available from many popular ASX dividend stocks. Before 2020, for example, it would have been rare to see Commonwealth Bank of Australia (ASX: CBA) shares on a yield under 4%. Ditto with Telstra Group Ltd (ASX: TLS) or even Coles Group Ltd (ASX: COL). These days, it's rare to see these stocks get close to 4%.

At the same time, interest rates have climbed to levels Australians haven't seen for 15 years. The zero-rate world of COVID is most certainly behind us.

So dividend yields are down, and 'safe' cash investment interest rates are up. That leaves the passive income investors on the ASX in quite the pickle.

Where to invest for passive income in 2026?

Well, that's the $64,000 question. There are a few factors investors need to contemplate before finding the solution that works for them.

The first, and arguably most important, of these factors is risk tolerance. Many passive income investors, particularly retirees, wish to preserve their capital as a priority. If that is the case, then having the majority of one's investable capital invested in safe cash assets like term deposits is arguably a sound strategy. A few years ago, term deposits would get you 1% or 2% if you were lucky. But with the cash rate now at 4.35% (and perhaps set to rise even further), term deposits, or even savings accounts, with interest rates approaching 5.5%, are not uncommon.

Getting a 5.5% yield that comes with a government guarantee of capital protection (there are conditions to that) is certainly not something to turn one's nose up at. Particularly if capital protection is a major concern.

Saying that, term deposits are still term deposits. For one, they don't come with that added bonus of franking credits. The value of a fully franked dividend can push the grossed-up yield of a dividend stock from 3.5% to 5%. For another, just as they allow no downside risk, there's no potential for capital returns either. Despite inevitable volatility, a good ASX dividend stock can be expected to appreciate in value over time, while spinning off dividend income. A term deposit's capital, in contrast, will never appreciate.

The price of safety

That's the other factor passive income investors need to accommodate. ASX shares have always outperformed cash investments over long periods of time, as the data has always shown. Investors need to accept that the price of capital protection is lower returns, even if interest rates are relatively high.

Of course, for some passive income investors, that protection is worth forgoing the potential of higher returns. But that won't be optimal for all investors. At the end of the day, each passive income seeker needs to weigh up their own goals and tolerances, and decide which investment (or combination) is the right fit for them and their personal circumstances.

The post Passive income investors: Term deposits or ASX dividend stocks in 2026? appeared first on The Motley Fool Australia.

But which shares could be top buys?

Three that could be among the best for income investors to buy in June are named below. Here's what you need to know about them:

APA Group (ASX: APA)

The first ASX dividend share to look at is APA Group.

It is one of Australia's most important energy infrastructure businesses. Its network of gas pipelines, processing facilities, storage assets, and energy infrastructure helps move energy around the country.

This gives the company a very different profile from many traditional dividend shares. APA is not relying on shoppers spending more or miners enjoying high commodity prices. A large part of its business is linked to the need for reliable energy infrastructure.

That can make its cash flows more resilient than those of many cyclical companies. It also helps explain why APA has long been popular with income investors.

The market is forecasting a 5.7% dividend yield from APA Group shares in FY 2027.

Telstra Group Ltd (ASX: TLS)

Another ASX dividend share that could be a best buy is Telstra.

The telco giant has become a cleaner and more focused business in recent years. It still owns the country's largest mobile network, and that remains a very powerful asset.

Mobile connectivity is not a discretionary luxury for most households or businesses. Phones, data, networks, and digital services are now essential parts of everyday life.

This gives Telstra an earnings base that can be more defensive than many other sectors. The company also has room to benefit from ongoing demand for mobile data, business connectivity, and network quality.

Brokers are expecting Telstra to pay a 21.5 cents per share fully franked dividend in FY 2027. This represents a forward dividend yield of 4.1%.

Transurban Group (ASX: TCL)

A third ASX dividend share to consider is Transurban.

Transurban owns and operates toll road assets in major cities across Australia and North America. These roads are difficult to replicate and often sit on critical transport corridors.

That matters because traffic volumes can recover over time as populations grow, cities expand, and commuters return to key routes. Toll increases linked to contracts or inflation can also support revenue growth.

The market expects this to underpin a 4.1% dividend yield in FY 2027.

The post 3 of the best ASX dividend shares to buy in June appeared first on The Motley Fool Australia.

They have since fallen 6%.

That kind of reversal after a strong run tends to unsettle investors.

But is the selling a warning sign, or simply a natural pause after an extended rally?

The answer matters, because Telstra has become one of the more widely held defensive stocks on the ASX in 2026.

What happened

The pullback started when investors began locking in gains after the share price spiked to a multi-year high early last week.

That profit-taking was then accelerated when a flurry of brokers downgraded their outlooks on the stock.

Most notably, Shaw and Partners named Telstra as a sell this week, stating:

Telstra is currently trading at elevated levels, in our view, with its defensive appeal pushing the share price higher. We believe its limited growth potential and narrowing dividend yield make the risk-reward less attractive at current prices.

The bull case is still intact

The bear case on Telstra is primarily about valuation, not the business itself.

And the business itself continues to perform well.

Telstra shares are up 7% year to date and 10% higher than this time last year, even after this week's pullback.

The company's mobile division remains the dominant force in Australian telecommunications, with pricing power and subscriber growth continuing to support revenue.

The $1.25 billion on-market share buyback announced earlier this month is a signal of management's confidence in the business at current prices.

In the first half of FY2026, Telstra delivered mobile services revenue growth of 5.6% and group cash EBIT growth of 14%, confirming the underlying momentum is real.

Analysts forecast a full-year FY2026 dividend of 21 cents per share, representing a 10% increase on FY2025, with UBS forecasting further dividend increases through to FY2030.

The valuation debate

The crux of the bear argument is that Telstra now trades at a premium to its historical average, with its defensive qualities fully priced in.

Brokers have an average price target of $5.33, implying a slight downside from current levels.

That is a tight spread between current price and consensus target, which limits the upside case for new buyers.

Furthermore, the defensive premium that Telstra commands could come under pressure if interest rates stay elevated, as higher rates make income from term deposits and bonds more competitive relative to dividend stocks.

That dynamic is one reason Shaw and Partners cited the narrowing dividend yield as a concern.

Foolish takeaway

The 6% pullback in Telstra shares does not signal anything fundamentally wrong with the business.

The mobile franchise is strong, the dividend is growing, and the buyback shows board confidence.

What the selloff does reflect is a valuation that had run ahead of the underlying growth rate.

For long-term income investors already holding Telstra, there is little reason to panic.

For new investors considering entry, the current pullback has created a marginally better starting point than last week.

The post Why are Telstra shares falling and should investors be concerned? appeared first on The Motley Fool Australia.

A large dividend yield can look attractive on paper, but it is not much use if the payout is under pressure or the business is too cyclical for comfort.

I prefer ASX dividend shares with strong market positions, repeat demand, and the ability to keep generating cash through different economic conditions.

Two shares I think fit that description are named in this article.

Telstra Group Ltd (ASX: TLS)

Telstra is not the fastest-growing business on the ASX, but I think it can be a very useful income share.

The company provides mobile, internet, and connectivity services to households, businesses, and governments across Australia. These services have become essential for daily life.

That gives Telstra a defensive quality I like. People can delay buying a new sofa, an overseas holiday, or a new appliance. They are much less likely to cancel their mobile or internet connection unless they really need to. For businesses, connectivity is even more important.

Telstra's mobile network is also a key advantage. The company has invested heavily over many years, and its network quality remains a major part of its competitive position.

There are risks. Competition can affect pricing. Regulation can affect returns. Technology keeps changing, and maintaining a leading network requires ongoing investment. But I think Telstra has a more resilient earnings base than many ASX shares.

For dividend investors, the franked income is a major attraction. The dividend yield may not always be the biggest on the ASX, but I think Telstra offers a good mix of income, defensive demand, and long-term relevance.

Woolworths Group Ltd (ASX: WOW)

Woolworths is another ASX dividend share I would be happy to buy and hold.

Supermarkets can look boring, but that can be a good thing for an income portfolio.

Food and household essentials are repeat-purchase categories. Households may trade down, buy more private label products, or search harder for specials when budgets are tight. But they still need to buy groceries.

That gives Woolworths a level of demand resilience that many businesses do not have.

I also like that the company has several ways to improve over time. Loyalty, online grocery, supply chain investment, private label, and better store productivity can all support the business.

There are risks to consider. The supermarket sector is competitive, and Woolworths must keep proving value to shoppers. Costs can rise, theft can increase, and margins are always watched closely. But Woolworths has scale, a trusted brand, and a central place in household spending.

I think that makes it a sensible defensive holding for income investors.

Foolish takeaway

Dividend shares do not need to be exciting to be useful.

In fact, I think some of the best income holdings are the ones investors can understand quickly and hold patiently.

Telstra and Woolworths both serve everyday needs and have a steadier foundation than many businesses. For investors building passive income over time, that kind of reliability is worth paying attention to.

The post 2 ASX dividend shares I'd buy for reliable passive income appeared first on The Motley Fool Australia.

But not all dividend shares are created equal. The best income options usually have dependable earnings, strong market positions, and the ability to keep rewarding shareholders through different market conditions.

With that in mind, here are three ASX dividend shares that are rated as buys by analysts and could be worth a closer look.

Cedar Woods Properties Ltd (ASX: CWP)

Cedar Woods Properties is an ASX dividend share that could appeal to income investors.

The property developer has a diversified portfolio of residential communities, townhouses, apartments, and commercial projects across Australia. This gives it exposure to long-term demand for housing, particularly in markets where population growth and housing shortages remain important themes.

Bell Potter is bullish and expects Cedar Woods to pay dividends of 38 cents per share in FY 2026 and 41 cents per share in FY 2027. Based on its current share price of $6.84, this represents dividend yields of 5.5% and 6%, respectively.

The broker has a buy rating and $9.65 price target on its shares.

Lottery Corporation Ltd (ASX: TLC)

Another ASX dividend share that could be a top pick is Lottery Corporation.

It operates lotteries and Keno across Australia, giving it exposure to a highly cash-generative and relatively defensive form of consumer spending. While jackpot activity can influence short-term performance, lotteries have historically shown resilience through different economic conditions.

That defensive profile can be attractive for income investors. The company benefits from well-known brands, large customer reach, and exclusive or long-dated licences in key markets. These characteristics can support strong cash generation, which is important for dividends.

The team at UBS believes this will underpin fully franked dividends of 17 cents per share in FY 2026 and then 21 cents per share in FY 2027. Based on its current share price of $5.34, this would mean dividend yields of 3.2% and 3.9%, respectively.

UBS has a buy rating and $6.35 price target on its shares.

Telstra Group Ltd (ASX: TLS)

Telstra remains one of the most popular ASX dividend shares for income investors and it isn't hard to see why.

The telco giant has a defensive earnings profile, supported by millions of mobile, broadband, and enterprise customers across Australia. Its services are essential for households and businesses, which gives the company a level of resilience that many other businesses do not have.

The mobile division is the key growth driver. Telstra has the largest mobile network in Australia and continues to benefit from strong demand for data, connectivity, price increases, and premium network coverage. This has been supporting steady earnings growth and cash flow generation.

Morgan Stanley expects this to lead to franked dividends of 20 cents per share in FY 2026 and then 21 cents per share in FY 2027. Based on its current share price of $5.23, this represents dividend yields of 3.8% and 4%, respectively.

The broker has an overweight rating and $5.40 price target on its shares.

The post Why Telstra and these ASX dividend shares could be top buys for income appeared first on The Motley Fool Australia.

The latest slump means the shares have now tumbled nearly 6% from a multi-year high recorded last week.

Why are the shares now cooling? Have Telstra shares now reached a ceiling, or is there potential for more upside ahead?

What happened to Telstra shares this week?

It looks like the downturn started when investors began taking their gains off the table after the share price spiked on Tuesday last week. 

This was accelerated when a flurry of brokers downgraded their outlooks on the stock. There have also been headwinds from broad softening in defensive shares, including telcos, and valuation concerns after Telstra's strong price rally.

Another headline which has weighed on sentiment this week is Telstra's latest job cuts announcement. The company announced on Tuesday that it is planning to cut around 11 jobs as part of a technology division restructure under new CEO Vicki Brady. 

The restructure collapses several of Telstra's internal technology and infrastructure teams into two new divisions.

The latest headcount cut follows the telco's announcement earlier this year that it would axe up to 650 roles as part of a restructuring and AI-driven efficiency programs.

Are the shares a buy, sell or hold?

Market Index data shows brokers still rate the telco's shares as a buy, and they tip an average 1% upside to $5.32 over the next 12 months, at the time of writing. 

Sentiment looks a little different over on TradingView. Of 15 ratings, only 3 have a strong buy stance, and another 12 have a hold rating on Telstra shares. The average $5.26 target price is just two cents above the current trading level.

Jed Richards from Shaw and Partners gives Telstra shares a sell rating. He thinks that the stock is currently trading at elevated levels with its defensive appeal pushing the share price higher. 

He warns that underlying growth is limited and the dividend yield is becoming less attractive as the share price rises.

Elsewhere, analysts at Catapult Wealth also recently highlighted that while mobile price rises are expected to support Telstra's revenue growth this year, there is uncertainty around spectrum license fees, which could remain a medium-term headwind for the company.

The post Telstra shares fall 6% from a multi-year high: What happened, and is it time to sell up? appeared first on The Motley Fool Australia.

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

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

$3,000 of passive income each month from superannuation

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

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

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

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

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

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

Which ASX dividend shares I'd buy

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

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

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

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

There are thousands of companies, daily market moves, broker opinions, dividend forecasts, interest rate headlines, and economic data points.

But I think the best starting point is much simpler.

A beginner does not need to know everything on day one. The goal is to build a sensible process, buy quality assets, and let time do some of the heavy lifting.

Start with the purpose

The first question I would ask is: What am I investing for?

Some investors want long-term growth. Others want passive income. Some want a mix of both.

That answer can shape the types of ASX shares that make sense.

For long-term growth, I would focus on companies with strong market positions and room to expand. For income, I would look for businesses with reliable earnings and dividends that appear sustainable.

A beginner could also use exchange-traded funds (ETFs) to get started, but individual ASX shares can play an important role if chosen carefully.

Keep the first few choices simple

When starting out, I think it is worth looking at businesses that are easy to understand.

Wesfarmers Ltd (ASX: WES) is one example. The group owns brands that reach across everyday Australian spending, including Bunnings, Kmart, Officeworks, and Priceline. It also has exposure to industrial earnings and lithium through Mt Holland.

That mix gives investors exposure to several parts of the economy in one company.

Telstra Group Ltd (ASX: TLS) is another ASX share I think beginners could understand quickly. Mobile and internet services are part of daily life, giving the company a defensive advantage. The dividend can also appeal to investors wanting income.

For healthcare exposure, ResMed Inc (ASX: RMD) could be worth considering. It is a global sleep health business with devices, masks, accessories, and software. I like that it has a recurring revenue element because patients often need replacement products over time.

Do not try to be perfect

One of the biggest mistakes beginners can make is waiting for the perfect entry point. The market rarely makes things obvious.

If prices fall, investors worry they will fall further. If prices rise, investors worry they have missed the opportunity.

That is why I recommend investing gradually. A beginner might invest a set amount each month or quarter. This reduces the pressure of trying to time the market and helps build the habit of investing.

Focus on quality and patience

The ASX will always have speculative shares promising huge upside.

Some will succeed, but many (or most) will disappoint.

For a beginner, I think quality should come first. That means strong brands, useful products, recurring revenue, healthy balance sheets, and management teams with a record of execution.

The returns may not be exciting every month. But over many years, owning better businesses can make a huge difference.

Foolish Takeaway

Starting in 2026 requires a first step and a plan that is easy to keep following.

I think beginners can do well by starting with understandable businesses, investing gradually, and giving compounding time to work.

There will be corrections, bad headlines, and moments when cash feels safer. That is part of the journey.

But the investors who keep buying quality through those periods give themselves a real chance of building wealth over time.

The post How to start investing in ASX shares in 2026 appeared first on The Motley Fool Australia.

After all, if you own shares that are likely to fall in value, your portfolio returns will be dragged down along with them.

So, with that in mind, let's look at three ASX shares that analysts have named as sells this week, courtesy of The Bull. Here's what they are bearish on:

Bapcor Ltd (ASX: BAP)

This struggling auto parts retailer has been named as a sell by Investor Pulse.

Given the tough trading conditions that Bapcor is facing, it thinks investors should be focusing on other opportunities. It said:

Bapcor is an aftermarket automotive parts provider in Australia and New Zealand. It operates the Autobarn, Burson and Autopro brands. It reported improving sales from turnaround activities between February and April 2026. However, trading conditions had materially deteriorated since late March 2026 in response to the Middle East conflict and an increase in interest rates. It has reduced fiscal year 2026 earnings guidance on what it provided on February 26, 2026. The company also flagged higher operating costs. The share price remains under pressure. The stock has fallen from $5.22 on July 14, 2025 to trade at 38 cents on May 21, 2026. Better options exist elsewhere, in our view.

 Telstra Group Ltd (ASX: TLS)

Shaw and Partners is bearish on Telstra shares and has named them as a sell this week.

The broker believes its shares are expensive at current levels, especially given its limited growth potential and narrowing dividend yield. It explains:

Telstra is currently trading at elevated levels, in our view, with its defensive appeal pushing the share price higher. However, underlying growth remains limited, and the dividend yield is becoming less attractive as the share price rises. Recent updates show steady but low growth across its core business segments, according to our analysis. Valuations are now stretched and the risk-reward balance is less compelling. The shares have risen from $3.89 on February 10, 2025 to trade at $5.45 on May 21, 2026. We would be inclined to take a profit at these levels.

Woodside Energy Group Ltd (ASX: WDS)

Another ASX share that Shaw and Partners is bearish on this week is energy giant Woodside.

After strong gains were recorded by Woodside shares, the broker thinks investors should be locking in profits and moving onto other opportunities. It said:

Woodside has benefited from elevated oil and gas prices driven by geopolitical tensions in the Middle East. However, in our view, the share price strength appears largely macro driven rather than based on underlying company improvements. Given Middle East tensions are expected to ease over time, energy prices could soften and reduce earnings support. The stock now appears fully valued. In response to share price gains, it makes sense to lock in profits and re-allocate the proceeds to opportunities with stronger growth outlooks.

The post Analysts name 3 ASX shares to sell now appeared first on The Motley Fool Australia.

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

Let's check them out. 

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is $165.12, down 0.3% today and down 4.6% over the past month.

Mark Elzayed from Investor Pulse has a buy rating on the market's biggest bank. 

Elzayed said: 

CBA remains Australia's dominant retail bank. The recent sharp sell-off has created a more attractive entry point for long term investors.

The bank generated unaudited cash net profit after tax of $2.7 billion in the third quarter of fiscal year 2026, up 4 per cent on the prior corresponding period. Lending and deposits continued to grow despite a softer economic backdrop.

CBA also maintains strong capital levels and recently paid a fully franked interim dividend of $2.35 a share for the first half of fiscal year 2026.

The shares fell heavily following housing concerns flowing from the Federal Budget. We see scope for a recovery once sentiment stabilises.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is $75.44, up 1% today and down 8% in the calendar year to date.

Elzayed gives Wesfarmers shares a hold rating.

He explains: 

Wesfarmers is a diversified industrial conglomerate. It owns market leading businesses, including Bunnings, Kmart and Officeworks, generating resilient earnings, even in softer economic conditions.

We believe it makes sense to hold Wesfarmers given it generated net profit after tax of $1.603 billion in the first half of 2026, up 9.3 per cent on the prior corresponding period.

Revenue of $24.2 billion was up 3.1 per cent. Bunnings and Kmart continued delivering strong sales growth.

The group also lifted its fully franked interim divided by 7.4 per cent to $1.02 a share, highlighting confidence in cash generation and balance sheet strength.

Telstra Group Ltd (ASX: TLS)

The Telstra share price is $5.37, down 0.3% today and up 1% over the past month.

Jed Richards from Shaw and Partners gives Telstra shares a sell rating. 

Richards said: 

Telstra is currently trading at elevated levels, in our view, with its defensive appeal pushing the share price higher.

However, underlying growth remains limited, and the dividend yield is becoming less attractive as the share price rises.

Recent updates show steady but low growth across its core business segments, according to our analysis.

Valuations are now stretched and the risk-reward balance is less compelling. We would be inclined to take a profit at theses levels.

The post Buy, hold, sell: Wesfarmers, Telstra, CBA shares appeared first on The Motley Fool Australia.