This unpredictable end to the Australian trading week came after a mostly negative morning up on the American markets.

The Dow Jones Industrial Average Index (DJX: .DJI) almost exactly matched the ASX's performance today, rising 0.022%.

However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared far worse, copping a nasty 2.6% drop.

Let's return to ASX shares now and check out what was going on amongst the various ASX sectors today.

Winners and losers

There were plenty of both red and green sectors this session.

Leading the former were gold shares. The All Ordinaries Gold Index (ASX: XGD) had a shocker today, crashing 5.56%.

Broader mining stocks also had a day to forget, with the S&P/ASX 200 Materials Index (ASX: XMJ) tanking 3.85%.

Tech shares were a little better. The S&P/ASX 200 Information Technology Index (ASX: XIJ) still retreated 0.92%, though.

Real estate investment trusts (REITs) couldn't quite hold water either, as you can see from the S&P/ASX 200 A-REIT Index (ASX: XPJ)'s 0.54% dive.

Energy stocks had another rough one. The S&P/ASX 200 Energy Index (ASX: XEJ) dipped 0.4% lower this Friday.

That's it for the red sectors though, so let's get to the greens.

Leading the charge higher today were consumer discretionary shares, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) soaring 2.58% higher.

Financial stocks had a day to remember, too. The S&P/ASX 200 Financials Index (ASX: XFJ) saw its value spike 2.21% this session.

Communications shares were in demand as well, evidenced by the S&P/ASX 200 Communication Services Index (ASX: XTJ)'s 1.15% surge.

Utilities shares also ran hot. The S&P/ASX 200 Utilities Index (ASX: XUJ) ended the day 0.82% higher than where it started.

Healthcare stocks had a nice time, with the S&P/ASX 200 Healthcare Index (ASX: XHJ) getting bumped up by 0.69%.

Consumer staples shares came next. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) saw 0.1% added to its total.

Finally, industrial stocks scraped home with a win, illustrated by the S&P/ASX 200 Industrials Index (ASX: XNJ)'s 0.1% uptick.

Top 10 ASX 200 shares countdown

Our final top stock of the week was furniture retailer Nick Scali Ltd (ASX: NCK). Nick Scali shares shot up 5.15% this Friday to close the week at $12.65 each.

There wasn't any news from the company today, so this looks like a rebound following the 15% drop we saw yesterday.

Here's the rest of today's best:

Enjoy the weekend!

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

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

I think I'd approach ASX share picking a little differently.

I'd want businesses I could trust to keep making progress without me watching every announcement or share price movement. Strong market positions, capable management, and long-term growth opportunities would be especially important.

I'd also want variety. Even a great company can have a difficult year, so I wouldn't want the entire portfolio relying on the same industry.

With that in mind, these are the 10 ASX shares I'd choose.

Commonwealth Bank of Australia (ASX: CBA)

I'd start with Commonwealth Bank because I like how firmly established it is in everyday Australian life.

Millions of customers rely on the bank to receive their wages, pay bills, manage savings, and finance their homes. Once people have built their financial lives around a bank, switching can be a considerable undertaking.

That gives CBA a valuable base of long-standing customer relationships.

I also like how seriously the bank takes technology. Its digital services make banking convenient for customers while helping it handle enormous transaction volumes efficiently.

I think that investment could help defend its market position as financial services continue changing.

Of course, CBA isn't immune to problems. Higher borrowing costs can put pressure on households, an economic downturn could increase bad debts, and the shares often trade at a premium valuation.

But if I weren't allowed to check my portfolio until next October, CBA is the kind of business I'd feel comfortable owning.

I think CBA would be a great starting point, but some of the other nine ASX shares could be even more important to the portfolio's success.

Here's what else would make my list.

Goodman Group (ASX: GMG)

Goodman would give me exposure to the growing demand for industrial properties and data centres.

What I particularly like is that the company has spent years building relationships with major customers and securing well-located development sites.

Those advantages are increasingly valuable as businesses look for facilities with reliable electricity access, particularly for data centres.

Developing these properties requires considerable planning and investment, so I wouldn't expect progress to happen overnight.

I'd be happy checking Goodman's development pipeline once a year and seeing how its projects were progressing towards completion and generating income.

BHP Group Ltd (ASX: BHP)

Mining giant BHP earns a place because I like its ability to plan decades ahead.

Building a major mine requires enormous investment, technical expertise, and infrastructure. BHP already owns assets that would be extremely difficult for competitors to replicate.

It also has opportunities to extract more value from existing operations, including its expanding copper business in South Australia.

Commodity prices will fluctuate, sometimes sharply. But I wouldn't want to make investment decisions based on every movement in iron ore or copper prices.

I'd be more interested in whether BHP was keeping costs competitive, maintaining financial strength, and making sensible investments.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is a company I'd trust to make sensible decisions while I wasn't watching.

Bunnings, Kmart, and Officeworks have strong positions in familiar retail markets, but I think the bigger advantage is the group's approach to managing capital.

It can invest in businesses that are performing well, improve weaker operations, and pursue new opportunities when they make sense.

I like having a management team that can adjust its priorities as conditions change, rather than relying on a single growth strategy.

That's a valuable quality when you're leaving investment decisions in the company's hands.

Coles Group Ltd (ASX: COL)

I'd want at least one business providing something households need almost every week.

Coles fits that description. Its supermarkets benefit from regular grocery demand, and its investments in automated distribution could help improve efficiency over time.

What I'd be looking for is steady progress in controlling costs, improving its operations, and keeping customers coming through the doors.

I think Coles has the scale and established network to remain a major part of Australian retailing, making it a reassuring addition to a portfolio I'd rarely check.

Macquarie Group Ltd (ASX: MQG)

Macquarie would add a different kind of financial business to CBA.

Its operations span infrastructure, asset management, banking, and commodities markets, giving it opportunities to invest and generate earnings internationally.

Large investment transactions don't necessarily happen when analysts expect them to, and a quieter period doesn't automatically mean the business is struggling.

I'd rather assess how Macquarie was developing its businesses and investing capital over a full year than worry about the timing of individual transactions.

Sigma Healthcare Ltd (ASX: SIG)

Sigma is another ASX share I'd be happy leaving to get on with its growth plans.

Following its merger with Chemist Warehouse, it has become a major force in Australian pharmacy retailing and pharmaceutical distribution.

What I like is that management has a clear opportunity to grow the business by opening more stores, expanding internationally, and making the combined operations more efficient.

I think an annual review would suit this investment well. I'd want to see whether Sigma was expanding its store network, improving profitability, and delivering the savings expected from the merger.

Those developments would tell me much more about its progress than short-term share price movements.

REA Group Ltd (ASX: REA)

REA is an ASX share I'd want in my portfolio because of its powerful position in Australia's property market.

Its realestate.com.au platform brings together property buyers, sellers, and agents.

Agents want to advertise where buyers are looking, while buyers visit because that's where so many properties are listed. That creates an advantage that I think would be extremely difficult for a competitor to overcome.

Property market conditions will influence advertising activity, but REA has an established audience and opportunities to develop additional services around it.

I like that the business can continue building on a market position it already owns.

Breville Group Ltd (ASX: BRG)

Breville has built a strong reputation for premium coffee machines, particularly in North America and Europe.

What I like is that the company has a clear path to further international growth. It can expand into new markets, reach more customers in existing ones, and introduce products that build on its established reputation.

I wouldn't feel the need to follow every product launch or monthly sales trend.

Checking once a year to see whether Breville was growing its international presence and strengthening its brand would be enough for me.

ResMed Inc (ASX: RMD)

I'd round out my portfolio with ResMed, an ASX share I think has a particularly dependable source of long-term demand.

Millions of people around the world are living with undiagnosed sleep apnoea, and I expect more of them to seek treatment as awareness and diagnosis improve.

ResMed already has a leading position in this market, supported by its established medical technology and relationships with healthcare providers.

I like that its growth doesn't depend on predicting the next big trend. The need for effective sleep apnoea treatment is already there, and I think ResMed is well placed to help more patients each year.

That's the kind of business I'd feel comfortable checking in on annually.

Foolish takeaway

I wouldn't expect these 10 shares to outperform every year, and I'd still want to review their investment cases during my annual check.

But I like the thought of owning businesses with established strengths and management teams capable of making good decisions without my constant attention.

If I could only look at my portfolio once every 12 months, these are the companies I'd trust to get on with the job.

The post If I could only check my ASX portfolio once a year, these are the 10 shares I'd own appeared first on The Motley Fool Australia.

The shares are up around 1% for the day, to $80.63 at the time of writing.

The increase means the conglomerate's shares have now rebounded around 12% from their latest low of $72.29 recorded in mid-September.

They're still down around 1% year to date and are trading around 11% below levels seen this time last year.

It's been a volatile ride for Wesfarmers shares in 2026. The shares have suffered two significant crashes. One in February after the company posted its first-half FY26 results, and again in mid-August, when it posted its full-year FY26 update.

The latest full-year update two months ago was good on the surface, and the conglomerate saw strong performance across its major Bunnings and Kmart divisions. These included a 3.4% increase in revenue, to $47.3 million, and a 7.3% increase in EBIT. But statutory NPAT fell 1.8% to $2.8 million including significant items, or was up 8.3% excluding them.

Wesfarmers' result came in slightly ahead of the market's $47.1 billion forecast for revenue, and was in line with expectations for NPAT.

What spooked investors is that management flagged concerns about increasing operating costs, labour cost pressures, and softer reading momentum heading into FY27.

Wesfarmers expected higher capital expenditure of $1.3 to $1.5 billion for FY27, particularly to support lithium production, store refurbishments, supply chain upgrades, and the start of a new joint venture in modular residential construction.

What has caused the latest rebound?

There isn't any specific price-sensitive news out of the company to explain why its shares have been rebounding since mid-September.

It's most likely that after a huge 20% crash during the six weeks from early August to mid-September, investors shifted their view on the share price value. It's likely that savvy investors realised the stock had become oversold and was trading well below fair value.

Retail shares have also benefitted from a boost in confidence following the latest softer-than-expected Australian employment data. This has eased fears about a further interest rate hike, and eased pressure on household budgets, which is great news for retail businesses like Wesfarmers.

Can Wesfarmers shares keep climbing higher?

Sentiment is still very mixed on the outlook for the conglomerate over the next 12 months.

Market Index data shows the majority of brokers have a sell rating. The $75.58 average target price implies around a 6% downside over the next 12 months.

TradingView data presents slightly more positive forecasts. Half of the 16 analysts have a strong sell rating on Wesfarmers shares. But another three rate the stock as a hold, and five more have a buy/strong buy rating.

The average target price is a little higher, at $76.59, but that still implies a downside of around 5% at the time of writing.

But the gap between the maximum and minimum target prices is huge. Some expect the shares to drop another 19% to just $65 over the next 12 months. Others think Wesfarmers shares have the potential to jump 10% higher to $89 each, at the time of writing.

The post Wesfarmers shares rebound 11%: Can they keep climbing? appeared first on The Motley Fool Australia.

Woolworths shares are up 55.8% on a 12-month basis, while Coles shares have risen just 4.5%.

So, is Coles poised to catch up over the next 12 months?

Broker has run the numbers on the ASX retailers

The Jarden analyst team examined the retailers and came to a conclusion as to which one of the major supermarket operators represents the best value from a shareholder perspective.

The broker has just finalised its 15^th fast-moving consumer goods survey, which points to 2% sector growth over the next six months, with Woolworths tipped to be the top performer again.

Jarden said themes over the past 12 months have remained consistent, with suppliers ceding terms to retailers, and shoppers increasingly seeking out promotions.

The broker said:

The results support stronger margins for COL and WOW, which could suggest some upside to FY27/28 forecasts for 10 basis points of expansion. We leave forecasts unchanged, with the view that WOW's investment in below the line, momentum from Ooshies and customer offer reset opportunity leave it well placed to maintain momentum. Overall we believe retailers are extracting better terms and looking to put this into price. The question is whether this will flow through into margins? We would argue consensus assumes WOW can maintain stronger top-line, with neither COL or WOW banking margin.

Woolworths Chief Executive Officer Amanda Barwell said recently while announcing the company's full year results that they had had a "pleasing" start to the year supported by the strong performance of the Disney Ooshies collectibles program.

She added:

Customers are expected to remain value-focused in the year ahead and we are committed to limiting the impact of rising costs through low and dependable prices. Wage growth is also expected to remain elevated by historical standards reflecting the current year's annual wage increase of 4.75% in Australia and progressive changes to pay for our 18 and 19-year-old retail team members. These cost pressures challenge us to be even more efficient, leveraging technology to be more productive in order to reinvest back into the business for our customers.

Woolworths edges out its rival

Jarden has an overweight rating on Woolworths shares. Its price target is $42, which sits slightly above the current price of $41.74.

It has a neutral rating Coles shares. Its price target is $22.80, which sits below the current share price of $24.22.

Among other retailers, Jarden has overweight ratings on Wesfarmers Ltd (ASX: WES) and Metcash Ltd (ASX: MTS), and a buy rating on Sigma Healthcare Ltd (ASX: SIG).

The post Which ASX retailer is a better buy, Coles or Woolworths? appeared first on The Motley Fool Australia.

In a rapidly changing world, I think there are a few things that customers will always want – good products at great prices. Wesfarmers can provide that through its two leading businesses, hardware store Bunnings and general retailer Kmart.

Both businesses are excellent performers for Wesfarmers, generating returns on capital (ROC) of around 70%. Wesfarmers earns a return on equity (ROE) of more than 30%, which is pleasingly high for a retailer.

Bunnings and Kmart continue to invest in themselves and unlock more growth. For example, there are now Anko stores in the Philippines, while in recent-ish times Bunnings acquired Beaumont Tiles and expanded its pet and auto care ranges.

Another significant advantage to Wesfarmers' operating model is how it's willing to buy some businesses and sell others. Recent investments include lithium mining and healthcare businesses. In five years, there could be additional names within the Wesfarmers portfolio.

With how the business aims to grow its dividend over time in line with profit and cash flow, the future looks bright for owners of Wesfarmers shares. Let's see what analysts expect for the company's dividend in FY27, since that's the next dividend investors will receive.

FY27 passive income projection

In the 2026 financial year, Wesfarmers grew its annual dividend per share by 7.8% to $2.22.

Analysts expect the company's dividend could increase again in FY27 after a number of years of consistent growth.

Wesfarmers says it focuses on providing shareholders with a satisfactory return and is committed to efficient capital management.

According to the projection on CMC Invest, Wesfarmers is forecast to hike its annual dividend per share by 7.9% to $2.395.

That projection translates into a potential dividend yield of 3% excluding franking credits and 4.3% including franking credits for FY27.

To unlock $2,000 of passive income, an investor would need 836 Wesfarmers shares if we're just thinking about the dividend cash. Including franking credits as part of the income would mean needing 585 Wesfarmers shares.  

Is this a good time to invest in Wesfarmers shares?

I'm not sure that Wesfarmers would ever trade at a truly low price. It's a high-quality company with leading retail businesses primed to deliver low-cost products, which could be very appealing during economically uncertain times.

According to CMC Invest, there have been 10 broker ratings on the business within the last three months, with four of those ratings being a buy, two being a hold, and four being a sell.

If I had to hold one major ASX blue-chip share over the long term, Wesfarmers would be the one I'd choose because of its ability to adjust its portfolio.

But other, smaller ASX shares could be even more appealing opportunities.

The post How much must I invest in Wesfarmers shares to earn $2,000 of passive income? appeared first on The Motley Fool Australia.

After all, I believe some of the best investment returns come from owning quality businesses and giving them time to compound their earnings.

With that in mind, here are three ASX shares I would happily buy and hold until 2036.

ResMed Inc. (ASX: RMD)

The first ASX share I would consider is ResMed.

ResMed has spent decades improving the treatment of sleep apnoea, building a business that extends well beyond simply selling medical devices.

Its ongoing investment in product development has made treatment more comfortable and convenient for patients, while its software helps healthcare providers monitor how effectively that treatment is working.

I believe this focus on innovation has been instrumental in establishing ResMed's market-leading position, and there is still considerable room for growth.

After all, an estimated 1 billion people around the world suffer from sleep apnoea, with the vast majority undiagnosed.

With its financial strength, established market position, and commitment to innovation, I think ResMed has an excellent chance of becoming a significantly larger business over the next decade.

TechnologyOne Ltd (ASX: TNE)

Another ASX share I would buy and hold for a decade is TechnologyOne.

The enterprise software provider supplies essential systems to universities, councils, government organisations, and businesses.

Once customers adopt its software, switching to a competitor can be expensive and disruptive, helping TechnologyOne retain customers and generate recurring revenue.

And with organisations continuing to move their operations to the cloud, I believe there is plenty more growth to come.

At the end of March, TechnologyOne reported annual recurring revenue of $598 million. Management is now targeting more than $1 billion by FY 2030.

In light of this, I think TechnologyOne has the potential to continue growing strongly well beyond that target.

Wesfarmers Ltd (ASX: WES)

A final ASX share I would be happy to own for the next decade is Wesfarmers.

One of the reasons I have so much confidence in this company is its ability to adapt to changing consumer habits while continuing to grow its businesses.

Kmart is a good example. It has established itself as a destination for affordable everyday products, which has helped it win customers and grow its market share.

Meanwhile, Bunnings continues to strengthen its position in the home improvement market, with opportunities to grow sales among both DIY customers and professional tradespeople.

And with its healthcare division expanding, Wesfarmers is developing another business that could make a meaningful contribution to earnings in the years ahead.

Overall, I believe Wesfarmers has the financial strength, experience, and growth opportunities to keep delivering for shareholders well beyond 2036.

The post 3 ASX shares I'd buy and hold for the next 10 years appeared first on The Motley Fool Australia.

Superannuation is a great tool to save towards retirement. But what if someone wants to retire earlier than that? I think it'd be a good idea to invest outside of superannuation too.

Taxation can be an important factor, but every household has a different income and different tax situation, so I won't talk about that side of things. I'm just going to look at how Australian investors can unlock gross passive income of $90,000 a year and retire by 57.

Regularly save and invest

Having cash to invest doesn't just appear out of nowhere. Australians need to set some money aside, assuming their budget has the room to do so after paying for the essentials.

Essentially, we need to spend less than we earn and invest the difference. Of course, it's a good idea to make sure we enjoy life during that period of wealth accumulation – life is not just about the money.

Every household has different finances, so it's up to each Australian adult to figure out what they can save.

Investing those savings makes a big difference to how much the wealth grows to. For example, putting $1,000 per month under the mattress will turn into $120,000 after ten years.

If someone else invested $1,000 per month in the share market and it returned an average of 10% per year, it'd be worth $191,249 after a decade. After two decades of doing that, the balance would become $687,300. After three decades, it becomes an incredible $1.97 million.

Therefore, someone who's 27 could start today and potentially have $1.97 million by 57 and retire.

Figure out what sort of investments to make

There are a number of ways for Australians and invest to build their wealth.

One of the simplest ways to build wealth is to invest in exchange-traded funds (ETFs) that give investors exposure to quality businesses from around the world, which I believe have a higher chance of delivering solid compounding earnings growth.

Some of my top choices for that investment exposure include Vanguard MSCI Index International Shares ETF (ASX: VGS), VanEck MSCI International Quality ETF (ASX: QUAL), Betashares Global Quality Leaders ETF (ASX: QLTY) and Global X S&P World EX Australia Garp ETF (ASX: GARP).

There are certain Australian companies that I also think could be excellent contenders to grow wealth over the long-term including Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES) and L1 Global Long Short Fund Ltd (ASX: GLS).

The yield influences the portfolio size needed

The portfolio balance required to generate $90,000 per year depends on the dividend yield of the portfolio.

For example, if someone had a $2 million portfolio, it'd require a dividend yield of 4.5% to make $90,000 of annual passive income.

If the dividend yield was 3%, the portfolio would need to be $3 million in size.

With a dividend yield of 6%, the Aussie investor would need $1.5 million.

By choosing the right investments and regularly saving, an average Aussie can build a good amount of wealth and retire.

The post How much do I need to retire on $90,000 a year at 57? appeared first on The Motley Fool Australia.

Naturally, dividend income would be important. After all, having regular payments arriving in your bank account could make retirement much more enjoyable.

But I wouldn't simply look for the shares with the biggest dividend yields.

Retirement could last 20 or 30 years, and I would want to own businesses that have a reasonable chance of growing their earnings and dividends over that time.

I would also favour established companies with strong market positions, dependable cash flows, and businesses that I can see remaining relevant for decades.

With that in mind, here are five ASX shares that would make my shortlist.

APA Group (ASX: APA)

The first ASX share I would consider is APA Group.

I think infrastructure businesses can be particularly well suited to a retirement portfolio, especially when they own assets that customers depend on and cannot easily replace.

APA certainly fits that description. The company operates an extensive network of gas pipelines, processing facilities, storage assets, and electricity transmission infrastructure across Australia.

Many of its customers rely on this infrastructure to keep their own operations running, which helps APA secure long-term agreements and generate relatively predictable cash flows.

And that is the sort of business I would want supporting my retirement income.

While APA has significant investments to make as Australia's energy requirements change, it already has an established asset base generating substantial cash.

In FY 2026, the company delivered underlying EBITDA growth of 8.3% and increased its annual distribution to 58 cents per security. Management expects another increase to 59 cents in FY 2027, which will mark its 23rd annual increase in a row.

Looking ahead, APA has a substantial development pipeline that could keep earnings and dividend growth going for a long time to come.

APA gives me a good starting point, but I would want more than energy infrastructure supporting my retirement income.

The other four companies bring different strengths to the portfolio, including some with excellent dividend growth potential.

So, let's look at why I think they could be worth owning for the next 20 or 30 years.

Telstra Group Ltd (ASX: TLS)

Another ASX share I would put on my retirement shortlist is Telstra.

I don't expect Telstra to become a spectacular growth company, but that isn't really what I'm looking for here.

What I like is that telecommunications has become an essential part of everyday life, and Telstra has a leading position in the Australian market.

Millions of customers pay for mobile and internet services every month, giving the company a recurring source of revenue.

Telstra has also demonstrated that it can increase prices while continuing to grow its mobile subscribers.

This has helped support earnings and dividend growth, with the company lifting its annual dividend by 10.5% to 21 cents per share in FY 2026.

And thanks to its Connected Future 30 strategy, I think Telstra could continue providing shareholders with a useful combination of income and modest earnings growth.

Transurban Group (ASX: TCL)

I would also want some exposure to transport infrastructure, which is where Transurban comes in.

The company owns and operates major toll roads across Australia and North America.

What I like about Transurban is the potential for its existing assets to become more valuable as cities grow.

Building major roads through established urban areas is extremely difficult and expensive. That puts Transurban in a strong position where it already operates important routes.

And with many of its concessions allowing tolls to increase over time, the company has opportunities to grow revenue without needing traffic volumes to rise significantly every year.

That could be particularly valuable during retirement, when inflation can gradually reduce the purchasing power of your income.

Transurban is expecting to pay distributions of 72 cents per security in FY 2027, up from 69 cents in FY 2026.

Overall, I think its long-lived assets and potential for growing distributions make it a strong candidate for a retirement portfolio.

Wesfarmers Ltd (ASX: WES)

Another ASX share I would be very comfortable owning over a long retirement is Wesfarmers.

I have a lot of respect for the company and the way it has been managed over the years.

It owns some excellent retail brands, including Bunnings, Kmart, and Officeworks, while also operating in healthcare and industrial markets.

But I think one of Wesfarmers' greatest strengths is its ability to make sensible decisions about where to invest its money.

Management has demonstrated a willingness to expand successful businesses, develop new opportunities, and exit investments that no longer justify their place in the group.

That approach has helped Wesfarmers deliver excellent long-term returns to shareholders.

And the company continues to perform well, with underlying net profit increasing 8.3% in FY 2026.

I wouldn't necessarily expect Wesfarmers to offer the biggest dividend yield on my shortlist. However, I think its earnings growth potential and disciplined management could allow dividends to increase considerably over a lengthy retirement.

Woolworths Group Ltd (ASX: WOW)

A final ASX share I would consider is Woolworths.

I think the supermarket giant has many of the qualities I would want in a retirement investment.

Its supermarkets serve millions of Australians every week, generating substantial revenue from products that households need regardless of economic conditions.

And after a challenging period, Woolworths is showing signs of being back on track.

Its Australian Food division reported an 8.5% increase in EBIT in FY 2026, demonstrating the progress being made in improving profitability.

With its enormous store network, strong brands, and established customer relationships, I believe Woolworths is well positioned to keep growing earnings and dividends over the long term.

Of course, with its shares now trading near record highs, investors are paying a premium for that quality.

But for someone building a retirement portfolio with a 20- or 30-year investment horizon, I think Woolworths could still be an excellent company to have on their shortlist.

Final word

Of course, I wouldn't necessarily limit an actual retirement portfolio to just five ASX shares.

I would want greater diversification, potentially including international investments and some cash or defensive assets.

But if I were narrowing down the ASX to a handful of companies capable of supporting my retirement income for many years, these five would certainly deserve a place on my shortlist.

The post If I could only buy 5 ASX shares for retirement, these would make my shortlist appeared first on The Motley Fool Australia.

3 things to look for in a retirement stock

Firstly, it needs to demonstrate some signs of possessing what legendary investor Warren Buffett would call a wide economic moat. This concept refers to an intrinsic competitive advantage that a company can possess, which it can use to fend off its competitors and keep its customers coming back. That could be a price advantage, a powerful and trusted brand, or offering a good or service that customers find difficult to avoid using.

Secondly, it needs to have a strong and resilient earnings base. The world is an ever-changing and unpredictable place. As an investor, we need to be as confident as we possibly can that a company we invest our hard-earned dollars into will be able to make its crust in all kinds of economic weather. After all, if a retirement is to last for two, three, or even four decades, it must be funded by companies that can navigate whatever the world can throw in their way.

Thirdly, a company must be able to pay a reliable and meaningful dividend, preferably with full franking credits attached. When the rubber hits the road on our retirement, retirement stocks need to be able to pay us an income. We can never know for sure what kind of dividend a company will pay in the future. But it's my belief that what it has paid in the past is one of the best indicators of what to expect going forward.

So, now that we have our three criteria unpacked, let's talk about five retirement stocks that I think check all three boxes.

Coles Group Ltd (ASX: COL)

First up, we have the grocery giant Coles. Almost all readers would be familiar with this company thanks to its dominant network of eponymous supermarkets across the country. Coles also owns the Liquorland chain of bottle shops.

Coles clearly checks all three of our selection criteria. Starting off, it arguably possesses two moats: a well-known and trusted brand, as well as a clear price advantage when it comes to food and household essentials. Most people would assume that their local Coles store is one of the cheapest places to do the weekly grocery shop, and that the products that Coles sells can't be purchased at a meaningfully lower price elsewhere.

It also has one of the most resilient earnings bases on the ASX. We all need to stock our households with food and essentials on a regular basis. That is irrespective of whether the economy is booming or busting, or whether inflation is high or low. As such, it is pretty clear that Coles will have customers walking through the door no matter the economic weather outside.

Coles also has an exceptional dividend track record. It has paid a reliable dividend every six months since it first hit the ASX in its own right back in late 2018. What's more, Coles has managed to increase its annual dividend total every single year since then too. Given this company's payouts also tend to come with full franking credits attached, I think this could be a great retirement stock.

Transurban Group (ASX: TCL)

Next, let's talk Transurban. This is a company that any motorist in Sydney or Melbourne, and perhaps in Brisbane too, would be intimately familiar with. It owns the vast majority of this nation's tolled arterial roads. This in itself is enough to tick our first box. A toll road network is, by definition, a form of moat, given that customers find it difficult to avoid using. This moat is widened by the fact that Transurban often enjoys exclusive, decades-long contracts which allow it to increase its tolls by at least the rate of inflation.

That bleeds into our second retirement stock criteria too. This exclusive right to roll some of the country's most vital road corridors gives Transurban a highly defensive earnings base. Sure, it may see some reduced traffic if there is a severe recession. But given we will always need to get to work, and move goods around our cities, Transurban is a solid choice for a retirement stock, in my view.

This plays out in the company's dividend history. Transurban has a staircase-like pattern of delivering dividend increases over the past two decades, with the only major hiccups coming in COVID-ravaged 2020 and 2021.

Telstra Group Ltd (ASX: TLS)

Our third retirement stock to discuss is Telstra. This telco is another household name, thanks to its long history as Australia's major telecommunications provider. Not only does Telstra continue to benefit from this powerful brand association, it also enjoys another form of moat. This company's mobile network is almost universally regarded as the best in Australia, covering many rural and regional areas that its competitors don't.

This means that many customers have no choice but to use Telstra for their mobile connectivity.

Telstra's nature as a telco provider also grants it a defensive earnings base. Fixed-line and mobile internet connectivity are vital, essential services in today's modern world. If times do get tougher, consumers will arguably pull back on spending on many other things before they will cut back on their internet and phone use. That makes Telstra a fantastic stock for investors looking for a stable retirement investment.

Let's talk cash now, though. Telstra is one of the ASX's most famous dividend payers. It has always paid out a strong dividend, which usually comes with at least some franking credits attached. Telstra has been growing its annual payouts every year for many years now as well.

Commonwealth Bank of Australia (ASX: CBA)

Our penultimate retirement stock today is yet another company most Australians would be familiar with. Commonwealth Bank of Australia is, without question, our strongest and best-run bank. Like Telstra, it has a history as a government-owned company, which gives CBA a lot of legacy brand goodwill.

That forms part of CBA's moat, which is supplemented by its status as our largest bank, lending CBA strength and scale.

However, CommBank is probably our least resilient stock on this list. Banks are notoriously vulnerable to economic shocks, given the crucial role they play in providing credit in the economy. CBA has cut its dividend in the past when the economy has been under pressure. Saying that, this bank's payouts have always bounced back quickly and have gone on to hit new heights. Over the cycle, CommBank should provide a healthy stream of fully-franked dividend income, and thus, makes for a valuable retirement stock.

Wesfarmers Ltd (ASX: WES)

Our fifth and final retirement stock is not exactly a household name. However, the plethora of successful Australian companies that it runs most certainly are. Wesfarmers is the sprawling industrial and retailing conglomerate behind Bunnings Warehouse, OfficeWorks, Target, and Kmart. The company also owns a range of other businesses, which span from fertiliser and chemical manufacturing to healthcare and mining.

These high-quality individual businesses stitch together to form a formidable moat that surrounds Wesfarmers' earnings base. The company has so many fingers in so many pies that it tends to survive just fine when economic conditions are tough, and thrive when optimism returns.

Wesfarmers has a long history of looking after its shareholders. The company has delivered above-market returns for decades, coming from both capital growth and a rising dividend.

Wesfarmers has always paid a reliable dividend, which usually comes with full franking credits attached. 2026 was the sixth year in a row that investors have enjoyed an annual dividend pay hike. Given this ASX share's long-term focus and diverse earnings base, I think it can be called the perfect retirement stock.

The post I look for 3 things in a retirement stock. These 5 shares have them all appeared first on The Motley Fool Australia.

That is something I think investors should keep in mind, particularly when looking at some of the market's biggest and most popular names.

I've compared five ASX shares that have earned strong reputations over many years and each has qualities that could justify a place in a long-term portfolio.

The question is whether those qualities are already reflected in their share prices.

I've looked at their competitive positions, earnings outlooks, financial strength, and valuations before deciding which I would buy today and which I would rather leave on my watchlist.

Here's what I found.

BHP Group Ltd (ASX: BHP)

I have no trouble seeing why BHP deserves its reputation as one of the best ASX mining shares.

Its copper operations are becoming increasingly important, and I think this is an excellent place to be positioned for the long term.

Copper is needed for everything from electricity networks and renewable energy to data centres and industrial equipment. Increasing demand, combined with the difficulty of developing major new mines, could support attractive prices over time.

BHP also has the assets, experience, and financial resources to invest in additional production without relying entirely on the success of a single project.

In FY 2026, copper overtook iron ore as its biggest earnings contributor, demonstrating how the business is changing.

My hesitation is the share price. After a rise of around 40% over the past 12 months, I think a lot of the good news is already reflected in BHP's valuation. That leaves me seeing BHP shares as roughly fair value rather than an obvious bargain.

In light of this, I would prefer to wait for a pullback before considering a purchase.

And as I worked through the other four companies, I found myself reaching a similar conclusion with several of them. They are excellent businesses, but their share prices don't necessarily offer enough value to make me want to buy today.

However, there was one exception. It is a company that I believe has a significant growth opportunity ahead of it, and unlike the others, its valuation still looks reasonable.

Of the five ASX shares I compared, it is the one I would be buying today.

So, let's take a closer look at the remaining four shares and why one stands out from the rest.

Commonwealth Bank of Australia (ASX: CBA)

CBA is an outstanding bank. I don't think many investors would seriously dispute that.

It has a strong market position, a huge deposit base, and a history of generating impressive returns for shareholders.

It also enjoys considerable support from retail investors, institutions, and superannuation funds, which helps explain why its shares have continued to command a premium to the other major banks.

For example, based on consensus estimates, CBA shares are trading at around 22 times FY 2027 earnings.

That is a demanding multiple for a mature bank, particularly with interest rates rising again. Higher rates could put pressure on borrowers, while competition for deposits and lending could weigh on margins.

I expect CBA to remain a great business. I just don't see enough potential return to justify buying its shares today.

CSL Ltd (ASX: CSL)

CSL is a company I have enormous respect for and would happily own in a long-term portfolio.

It has built an outstanding global healthcare business, particularly in plasma therapies, where its scale and expertise give it a strong competitive position.

And despite its recent difficulties, I still believe CSL has a bright future ahead of it.

However, I think the best opportunity to buy this ASX share was when it was trading around $90 earlier this year.

At that price, investors were getting a high-quality business at a bargain valuation. Since then, CSL shares have more than doubled, and I think they now look fairly valued.

There is also still some uncertainty surrounding the company, particularly with its leadership and efforts to improve operational performance.

I remain positive on CSL's long-term prospects, but after such a strong recovery in its share price, I don't see enough value to justify buying today. For me, CSL is a hold rather than a buy.

Wesfarmers Ltd (ASX: WES)

If I were ranking these companies purely on management quality and capital allocation, Wesfarmers would be near the top.

The company has built an excellent collection of businesses, with Bunnings and Kmart particularly good examples of brands that Australians keep returning to.

I've also been impressed by management's willingness to invest in new opportunities, change direction, and exit businesses when the economics don't stack up.

That discipline has helped Wesfarmers create substantial shareholder wealth over time.

And it is still delivering. Underlying net profit increased 8.3% in FY 2026, demonstrating that its businesses can continue making progress even when households are watching their spending.

However, investors have generally been willing to pay a premium for this consistency. Even after pulling back from its highs, Wesfarmers trades at around 30 times earnings.

I think the company will continue performing well, but at that valuation, much of its future growth could already be reflected in the share price.

For that reason, I would prefer to wait for a more appealing entry point.

ResMed Inc (ASX: RMD)

That leaves ResMed, which I think is one of the best ASX shares to buy today.

ResMed makes devices and masks used to treat sleep apnoea, a condition affecting millions of people around the world.

What I like is that its growth doesn't depend on creating demand for something people don't need.

A huge number of sleep apnoea sufferers remain undiagnosed or untreated. As awareness and diagnosis improve, more people could start using ResMed's products.

And patients don't just buy a machine and disappear. Masks and related supplies need replacing, providing an ongoing source of revenue alongside sales to new patients.

The company's latest results show how well the business is performing. FY 2026 revenue increased 10% to US$5.7 billion, while free cash flow reached US$1.6 billion. That gives ResMed the financial capacity to develop new products, expand internationally, and reward shareholders.

Yet despite these qualities, its valuation looks reasonable to me, with ResMed shares trading at around 19 times forward earnings.

I think this makes it a great example of quality at a reasonable price, or QARP.

ResMed isn't without competition or regulatory risks, and its growth won't be perfectly smooth. But of these five ASX shares, I think it offers the best combination of business quality, long-term earnings potential, and a valuation that leaves room for attractive shareholder returns.

That makes it my top pick today.

The post I compared 5 of the ASX's best shares. Here's which one I'd buy today appeared first on The Motley Fool Australia.

It sits above the $630,000 balance that the Association of Superannuation Funds of Australia (ASFA) thinks every Australian needs for a comfortable retirement, and below the asset cut-off point for a part Age Pension payment.

This amount of money means you'll be able to live well when you decide to stop working. But if you invest that money wisely, it could also generate an additional passive income that'll turn a comfortable retirement lifestyle into an affluent one. 

Think frequent travel, luxury property, and flexible discretionary spending.

So, how much passive income can you earn off a $700,000 superannuation balance?

And what ASX shares could you invest in?

Let's take a look.

The calculation

There is a straightforward calculation to work out what passive income a $700,000 passive income could generate.

If you multiply your total superannuation balance by the overall dividend yield of your portfolio, it'll give you the passive income you could generate.

The answer changes depending on your dividend yield, which helps you identify what you need to invest in to earn the income you want. 

Generally, as your yield goes up, the passive income you can earn off the same balance also increases.

How much could I earn off a 2% to 3% yielding superannuation portfolio?

A 2% yielding portfolio is at the lowest end of the scale. Off a $700,000 superannuation balance, you'd generate around $14,000 in passive income. That's because $700,000 x 2% = $14,000 in dividend payments.

It's not a huge amount, but the benefit of a super low yielding portfolio is that this would generally be focused on traditional and reliable blue-chip shares rather than towards high-growth ASX stocks.

Think Woolworths Group Ltd (ASX: WOW), Macquarie Group Ltd (ASX: MQG), and even CSL Ltd (ASX: CSL). These shares are each huge in scale, have a long history of paying dividends to shareholders, and they yield somewhere in the 2% to 2.5% range, at the time of writing.

On a 3% yielding portfolio, you could earn a little more, at closer to $21,000 per year in dividend income, off the same balance.

Stocks around the 3% level typically offer investors a balance between a moderate, reliable passive income, and some capital growth potential.

Think Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and Wesfarmers Ltd (ASX: WES). These powerhouses all offer a yield of around 3% to 3.5% at the time of writing.

What about a 4% to 5% yielding superannuation portfolio?

If your superannuation portfolio yields closer to 4% or 5%, you could earn even more, at closer to $28,000 or $35,000 per year in passive income, respectively.

This is often considered by investors as the "sweet spot" between stability and growth. Companies in this bracket are typically large-scale blue chips, major banks, or defensive infrastructure shares. 

For example, Rio Tinto Ltd (ASX: RIO), Medibank Private Ltd (ASX: MPL), National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ), Westpac Banking Corp (ASX: WBC), Deterra Royalties Ltd (ASX: DRR), Transurban Group (ASX: TCL), and Telstra Group Ltd (ASX: TLS) all yield around this bracket, at the time of writing.

What about higher yielding ASX shares, around the 6% to 8% level?

It's possible to earn even more if your superannuation investment portfolio is high yield, but this comes with a lot more risk. Investors would need to accept lower growth, or potentially even share price declines, in place of a higher passive income.

There are still plenty of options around this level, though.

Some examples are Harvey Norman Holdings Ltd (ASX: HVN), Premier Investments Ltd (ASX: PMV), or Nick Scali Ltd (ASX: NCK). 

Real Estate Investment Trusts (REITS) also typically offer a higher yield thanks to their predictable rental income. Such as, Charter Hall Long WALE REIT (ASX: CLW), Waypoint REIT Ltd (ASX: WPR), and HomeCo Daily Needs REIT (ASX: HDN).

The post How much passive income can I earn off a $700,000 superannuation balance? appeared first on The Motley Fool Australia.

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

Let's take a look.

Xero Ltd (ASX: XRO)

The Xero share price is $59.98, down 2.5% today and down 61% over 12 months. 

Philippe Bui from Medallion Financial Group has a buy rating on this ASX 200 tech share. 

Bui said: 

Operating revenue grew 31 per cent in full year 2026 when compared to the prior corresponding period. Adjusted EBITDA rose 18 per cent, demonstrating continuing growth alongside investment in its US expansion.

The Melio acquisition in the US broadens its offering across accounting and payments, creating opportunities to deepen customer relationships.

We believe its recurring revenue model, established accounting network and growing product suite support an attractive long term investment case.

Integration costs and competition remain risks, but we favour buying for sustained international growth.

Ansell Ltd (ASX: ANN)

The Ansell share price is $45.49, up 0.7% today and up 40% over 12 months. 

Tom Fairchild from Lazarus Capital Partners has a hold rating on this ASX 200 healthcare share. 

Fairchild said: 

Ansell is a global leader in safety solutions, making protective gloves and clothing for industrial and health care customers.

Its premium brands give it genuine pricing power. In full year 2026, price increases fully offset higher US tariffs and Middle East-driven cost pressures without derailing volumes.

Global sales of $US2.14 billion in full year 2026 were up 5 per cent on an organic constant currency basis.

Adjusted earnings per share of $US1.486 were up 18.5 per cent.

With full year 2027 guidance pointing to further growth on top of a strong balance sheet and an ongoing share buy-back, Ansell looks well placed for inflationary times.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is $77.27, down 0.1% today and down 13% over 12 months. 

Bui has a sell rating on this ASX 200 consumer discretionary share. 

He explained: 

Wesfarmers owns retail giants Bunnings, Kmart and Officeworks among other businesses. Bunnings and Kmart remain strong businesses. However, we regard the valuation of Wesfarmers as demanding.

Fiscal year 2026 underlying earnings per share increased by 8.3 per cent, while the shares were recently trading around 30 times reported earnings. Consequently, this leaves limited room for potentially weaker consumer spending or execution setbacks.

An earnings decline at Officeworks and the ongoing lithium investment add uncertainty outside the core retailers.

We favour reducing exposure and re-allocating capital to opportunities offering a more attractive balance between valuation and growth.

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

Wesfarmers is the company that owns various businesses such as Bunnings, Kmart, Officeworks, Priceline, Target, a chemicals, energy and fertiliser business called WesCEF and other healthcare businesses (such as InstantScripts).

Australia's Age Pension is one of the most generous in the world. The maximum per fortnight that a single person can receive was recently hiked to $1,237.70 per person.

For me, there are two key reasons why I'd prefer Wesfarmers shares to the Age Pension.

The payout is growing faster than inflation

The Age Pension is regularly growing over time, with inflation playing a key role in how fast it increases.

However, the Wesfarmers dividend is growing faster. Therefore, my cash flow could steadily improve beyond the Age Pension if I started with the same income.

In FY26 – the financial year that finished in June 2026 – Wesfarmers' board decided to hike its annual dividend per share by 7.8% to $2.22. That payout growth rate was significantly more than the inflation rate.

Its dividend is projected to increase again in FY27. According to Commsec's forecast, the business is expected to grow its payout by 5.5% in FY27, 6.5% in FY28, and 8.8% in FY29.

Of course, projections are not guaranteed future payments.

Potential for a rising Wesfarmers share price

Another reason I prefer this ASX dividend share is its potential for capital growth. I think it's a good thing to have a strong asset base.

In the past four years, it has risen by 70%, at the time of writing. Past performance is not a guarantee of future returns.

The business has proven that its main businesses are excellent at growing their earnings. In FY26 alone, Bunnings Group (which includes Beaumont Tiles) grew earnings by 5.1%, and Kmart Group grew earnings by 6%. WesCEF grew earnings by 18.5%, but it's significantly smaller than Bunnings and Kmart.

In my view, for two retailers to deliver solid growth in a difficult retail environment is really impressive.

Both Bunnings and Kmart achieve returns on equity (ROC) of close to 70%, while Wesfarmers' overall return on equity (ROE) was 35.5%. The company achieves enormous returns on money invested in certain areas of the business, which, to me, is a stronger indicator that future internal investments can help profit grow.

Over the long-term, profit growth is the best driver for the Wesfarmers share price, so I'd say this business is a solid 'compounder' option.

How many shares it'd take to match the Age Pension

I'm going to focus on the FY27 payout, given that investors have already received the FY26 dividend.

The business is projected to pay an annual dividend per share of $2.34 in FY27. The maximum Age Pension currently annualises to an approximate total of $32,180.

If we exclude franking credits from the income goal, it'd take 13,753 Wesfarmers shares. Including franking credits, it would take 9,627 Wesfarmers shares to match the Age Pension.

But, I wouldn't suggest putting someone's entire investment portfolio into one business. I'd include other quality ASX shares as well.

The post 9,627 shares of Wesfarmers pay an income equal to the Age Pension appeared first on The Motley Fool Australia.

If you're in your sixties and weighing up Wesfarmers Ltd (ASX: WES) against Qantas Airways Ltd (ASX: QAN) shares, you're comparing two iconic names with very different track records and business models. Wesfarmers spans supermarkets to hardware and pharmacies, while Qantas is Australia's airline. With retirement income, steady dividends and relative stability front-of-mind for many, let's spark up the Wesfarmers vs Qantas shares debate for those seeking to balance regular income with resilience.

The case for Wesfarmers

Wesfarmers is one of Australia's largest, longest-standing listed conglomerates. Its household brands include Bunnings, Kmart, Officeworks and Priceline, giving it a retail backbone, plus chemical and fertiliser operations. The group added healthcare in 2022 with the API acquisition, bolstering its "defensive" qualities against economic shocks. As of its company profile, Wesfarmers' portfolio gives it exposure to daily spending habits of Australians from all walks of life.

For investors near or in retirement, several figures stand out:

• Dividend Yield: 2.93%, fully franked – reliable and tax-friendly income.
• P/E Ratio: 29.94 – more of a premium price, reflecting perceived quality and steadiness.
• Dividend track record: Decades of consistent, fully franked payouts. Recent payments have hovered around $2 or more per share each year, often split between interim and final dividends.

Wesfarmers' vast scale ($86.58 billion market cap) and stable business mix could provide peace of mind for retirees who value predictability and steady dividends.

The case for Qantas Airways

Qantas is Australia's flagship airline, with roots stretching back to 1920. Its two main brands, Qantas and Jetstar, connect Australia's dots across domestic and international routes. According to its most recent public description, Qantas prides itself on safety, reliability, and customer service, and it survived the massive turbulence of the COVID-19 pandemic.

Here's what might appeal to a sixty-something investor:

• Dividend Yield: 4.40%, fully franked – higher cash return than Wesfarmers as of the latest data, and strongly tax-effective.
• P/E Ratio: 10.64 – much lower than Wesfarmers, appealing for those looking for value.
• Dividend payments have resumed since 2025, after being paused during the pandemic. The most recent payouts were around 40 cents per share over the past year.

Qantas's business is more cyclical and sensitive to global shocks, but for investors seeking higher income (and comfortable with travel industry risks), it's worth a look.

Valuation comparison

Let's put the numbers side-by-side:

Note: Qantas's reported P/E ratio and EPS numbers align as expected, but be mindful that in airline cycles, earnings can fluctuate more dramatically than for a diversified retailer. Both companies offer fully franked dividends, boosting net yield for many Australian retirees.

Recent share price momentum

Comparing recent share price performance up to 7 October 2026:

• Wesfarmers closed at $76.30, up 0.58% for that day. Year to date, its return stands at -3.7%.
• Qantas closed at $8.87, down 1.33% for the day. Its year-to-date return is -9.6%.

Both shares are in negative territory for 2026 so far, but Wesfarmers has held up a little better than Qantas.

Which is the better buy?

If I had to pick for a 60 year old investor seeking reliable, tax-effective income and peace of mind, I'd lean towards Wesfarmers. Its business diversity, decades-long dividend consistency and defensive exposure across everyday retail sectors tick the classic retiree boxes. Qantas' dividend yield is higher at present, but the airline game is far more turbulent: it paused dividends during COVID, and earnings remain vulnerable to oil prices, wars, and changing travel habits.

While Wesfarmers trades at a much higher P/E (almost 3x Qantas), I see that as reflecting its more stable earnings and longer-term pedigree as a dividend stock. For retirees focused on sleep-at-night investing, my pick would be Wesfarmers – even if it's less exciting on the income front right now. Qantas could appeal if you believe in a strong, sustained post-pandemic recovery and are happy to take on extra risk for extra yield, but it wouldn't be my primary choice for my own nest egg.

The post Wesfarmers vs Qantas: Which ASX share suits a 60-year-old investor? appeared first on The Motley Fool Australia.

Everyday investors looking for reliable, fully franked dividends often land on two household names: Wesfarmers Ltd (ASX: WES) and Coles Group Ltd (ASX: COL) Both are ASX giants with strong brands, defensive business models and long histories of shareholder payouts. But for retirees focused on dependable income and capital stability, which one comes out on top? Here's my break down of Wesfarmers vs Coles Group shares.

The case for Wesfarmers

Wesfarmers is a true blue-chip conglomerate, operating across retail, hardware, office supplies, health and chemicals. With famous brands like Bunnings, Kmart, Officeworks and Priceline under its belt, plus a chemicals and fertilisers division, its earnings are spread across sectors that tend to do well in most economic environments.

Personally, I like Wesfarmers for its size, diversity and strategic flexibility. Its $86.08 billion market cap makes it one of Australia's largest listed companies, which can help cushion the business during downturns.

Key fundamentals for Wesfarmers:

• Market cap: $86.08 billion
• Dividend yield: 2.94% (fully franked)
• P/E ratio: 29.78
• Recent dividend per share: $2.22, with a strong history of fully franked payments
• Year-to-date return: -4.2%

Wesfarmers has a solid record of paying dividends. It has delivered decades of fully franked payouts, often topping them up with occasional specials. For retirees, that 100% franking can make a big difference come tax time.

The case for Coles

Coles is one of Australia's top supermarket and liquor retailers, with Coles Supermarkets and its bottle shop chains a staple in almost every suburb. While it used to be part of Wesfarmers, Coles was spun out in 2018 and is now very much its own beast.

For conservative, income-focused investors—particularly retirees—Coles' appeal is simple: Food retailing is a defensive sector, and people have to eat whatever the economy is doing.

Notable fundamentals for Coles Group:

• Market cap: $30.75 billion
• Dividend yield: 3.39% (fully franked)
• P/E ratio: 28.33
• Recent dividend per share: $0.74, also fully franked with a stable payout pattern
• Year-to-date return: 10.9%

Coles has consistently paid out fully franked dividends since relisting, and the current yield is a touch higher than Wesfarmers. This direct income edge may appeal to retirees wanting to maximise after-tax income.

Valuation comparison

With both companies in the ASX's top ranks and fully franked dividends on offer, it's worth drilling into their key valuation measures to spot the differences most relevant to retirees:

Wesfarmers trades at a slightly higher P/E than Coles, but both are in the same ballpark. The standout difference for retirees is Coles' higher yield—3.39% versus Wesfarmers' 2.94%—on current prices.

Recent share price momentum

Comparing recent share price momentum up to 6 October:

• As of 6 October 2026, Wesfarmers closed at $75.86, up 0.52% on the day, but its year-to-date return sits at -4.2%.
• As of the same date, Coles closed at $22.88, down 0.52% on the day, but boasts a year-to-date return of +10.9%.

That's a steady outperformance from Coles in 2026 so far, while Wesfarmers has dropped back a touch.

Which is the better buy?

Weighing up Wesfarmers vs Coles, if I were a retiree focused on maximising regular, tax-effective income, I'd lean toward Coles right now. The dividend yield is modestly higher (3.39% vs 2.94%), both are fully franked, and Coles' supermarket focus means cashflows tend to be steady and recession-resistant. Add to that its positive year-to-date share price momentum (despite a few wobbles in the broader market), and Coles looks to be delivering both income and capital stability.

Wesfarmers is more diversified—and in the long run, that can mean more growth potential—but for a retiree's portfolio, I think the steadiness, relative simplicity, and strong current yield of Coles get it over the line for me today.

The post Wesfarmers vs Coles: Which dividend share is better for retirees? appeared first on The Motley Fool Australia.

And the broker's message is clear. Now could be a good time to increase exposure to quality.

Focus on quality ASX shares

Bell Potter notes that the S&P/ASX 200 index (ASX: XJO) has been one of the weaker major equity markets in 2026. But underneath the index, the falls have been much more severe, with a number of quality businesses down more than 20% despite relatively modest changes to earnings expectations.

It believes higher bond yields, subdued economic growth expectations, and concerns around artificial intelligence (AI) disruption have weighed on valuations more than company fundamentals.

This has created an opportunity to upgrade the quality of its portfolio, highlighting Charter Hall Group (ASX: CHC), Washington H. Soul Pattinson and Company Ltd (ASX: SOL), and Wesfarmers Ltd (ASX: WES) as opportunities. It explained:

The portfolio changes reflect a deliberate shift towards businesses with proven management teams, resilient earnings, strong balance sheets and long-term capital allocation credentials. Specifically, Soul Patts and Wesfarmers are proven high-quality capital allocators, providing a solid ballast in a portfolio and worthy of long-term ownership. Charter Hall, on the other hand, offers compelling value at a point when markets appear to be underappreciating the group's long term growth potential.

Bell Potter also notes that it has been positioned for interest rates to remain higher for longer.

However, with that view now becoming more widely accepted and rate-sensitive sectors already de-rating, the broker believes valuations are starting to offer a margin of safety. It said:

Knowing equity markets look forward, we are neutralising our positioning given affected sectors have moved to factor in rate, policy and competitive headwinds, with valuations now representing a margin of safety. Collectively, these changes increase exposure to long-term structural growth, recurring earnings and proven capital allocators which have scope for long term value creation.

The buys

Bell Potter has added Charter Hall to gain exposure to a potential recovery in property capital markets.

The broker highlights the company's $94 billion funds management platform and its exposure to office, industrial, retail, and social infrastructure.

It also likes that Charter Hall is not simply a traditional property owner. Its earnings are driven heavily by managing capital for institutional investors, giving the business a more scalable model. Bell Potter said:

CHC offers exposure to recovering property capital markets, growing institutional allocations to real assets and a high-quality funds management platform, underpinned by solid dividend growth averaging 6% per annum and a strong track record of long-term earnings growth.

Bell Potter is also buying Soul Patts shares, which it describes as Australia's Berkshire Hathaway. It likes the company's permanent capital base and ability to invest across listed shares, private businesses, credit, and real assets.

This gives management flexibility to deploy capital wherever it sees the best opportunities, including during periods of market weakness. It said:

SOL's portfolio is deliberately diversified and increasingly liquid, providing the flexibility to capitalise on opportunities as they arise. The group's strong balance sheet, permanent capital base and extensive deal flow allow it to invest counter-cyclically when others cannot.

Finally, Bell Potter has added Wesfarmers after its shares fell around 20% from their mid-year peak.

The broker believes this has created an opportunity to buy one of Australia's highest-quality companies at a more attractive valuation.

It sees the investment case as extending beyond Bunnings and Kmart, with Wesfarmers also offering exposure to healthcare, lithium, and industrial businesses. Bell Potter said:

WES combines earnings resilience, growth optionality and disciplined capital allocation. Its portfolio spans household spending, housing, industrial demand and healthcare, reducing reliance on any single driver, while market-leading positions at Bunnings and Kmart generate defensive cash flows and healthcare, lithium and industrial technology investments provide additional growth avenues.

The post Why this top broker is buying Charter Hall, Soul Patts, and Wesfarmers shares appeared first on The Motley Fool Australia.

At around $75.86 on Wednesday, the shares are now roughly 20% below their 52-week peak.

That is a meaningful pullback for one of the ASX's best-known blue chips. But has it gone far enough to create a top buying opportunity?

Here is how I see it.

Why I like Wesfarmers

Wesfarmers owns a collection of businesses that already have strong positions in their respective markets.

Bunnings remains the standout for me. Its scale, brand strength, and dominant position in home improvement give Wesfarmers a business that would be extremely difficult to replicate.

Kmart has also become an increasingly important part of the group, with its value-focused offering giving consumers a reason to keep shopping even when household budgets are under pressure.

Officeworks adds another established retail business, while Wesfarmers also has exposure to industrial and other operations.

That mix means the company is not relying on a single product or customer group to drive earnings.

I also like the way Wesfarmers has approached capital allocation over many years. Management has shown a willingness to invest where it sees attractive returns and move away from businesses where the opportunity becomes less compelling.

For a long-term investor, I think that discipline is a major part of what makes Wesfarmers stand out.

The earnings outlook still looks healthy

The recent weakness in the Wesfarmers share price would concern me more if analysts were also expecting profits to fall.

That is not currently the case. Wesfarmers generated earnings per share (EPS) of $2.53 in FY26. Consensus forecasts indicate EPS could increase to $2.72 in FY27, $2.90 in FY28, and $3.11 in FY29.

By FY29, earnings would be around 23% above the FY26 level, which would give the business a reasonable base from which to grow.

The dividend is also expected to move higher alongside earnings. Consensus estimates point to dividends per share of $2.34 in FY27, $2.49 in FY28, and $2.71 in FY29.

For me, that adds another layer to the investment case. Wesfarmers is not just relying on share price appreciation to generate returns.

Is the valuation attractive enough?

This is where I would keep expectations sensible. At $75.86, Wesfarmers is trading on a P/E ratio of around 28 times estimated FY27 earnings.

That is still a premium valuation, so I would not describe the shares as cheap simply because they have fallen 20%.

But the picture improves as earnings grow. By FY29, today's price would represent roughly 24 times forecast earnings.

I think that is easier to justify for a business with the quality of Bunnings, the momentum of Kmart, and a strong long-term record of capital allocation.

Foolish takeaway

I think Wesfarmers is becoming a much easier share to buy at around $76.

The valuation still asks investors to pay for quality, so I would not expect a bargain-style return simply because the shares are 20% below their high.

But I think the combination of strong businesses, steady earnings growth, and rising dividends makes today's price look increasingly reasonable.

For me, that is enough to put Wesfarmers back near the top of my ASX buy list.

The post Down 20%: Is the Wesfarmers share price a top buy? appeared first on The Motley Fool Australia.

It also comfortably exceeds what the Association of Superannuation Funds of Australia (ASFA) determines is necessary for a comfortable retirement.

It's a solid amount of money to support a good retirement lifestyle, but there is an additional bonus. A balance as high as $950,000 can also generate a great passive income from ASX dividend shares.

Here's how much you could earn.

What passive income could a $950,000 superannuation balance generate?

To calculate your potential annual passive income, you need to multiply your total superannuation balance by the overall dividend yield of your portfolio.

But obviously, the answer changes depending on what that yield is.

Generally, as your yield goes up, the passive income you can earn off the same balance also increases.

Break it down for me by yield

If your portfolio is low-yielding, at around 3%, you'll be able to earn around $28,500 per year in passive income. That's because $950,000 x 3% = $28,500 in dividend payments.

There are lots of stable options around this level. Investment bank Macquarie Group Ltd (ASX: MQG) yields around 3%, as does banking giant Commonwealth Bank of Australia (ASX: CBA) and conglomerate Wesfarmers Ltd (ASX: WES).

Then, if you increase your yield closer to 4%, you could earn a little more. A $950,000 portfolio could generate around $38,000 per year at this yield.

There are still lots of great options around the 4% level. Think mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO), or telcos like Telstra Group Ltd (ASX: TLS). Some of the other major banks, including National Australia Bank Ltd (ASX: NAB) and ANZ Group Holdings Ltd (ASX: ANZ) also yield around this level at the time of writing.

If you can raise your yield higher towards 5%, your passive income would increase to around $47,500 every year. 

My top 5% yielding ASX shares would be defensive infrastructure companies like Transurban Group Ltd (ASX: TCL) or Dalrymple Bay Infrastructure Ltd (ASX: DBI). 

Raise your portfolio's yield even higher to 6% and you could earn a $57,000 annual dividend income off the same superannuation portfolio. That's a decent passive income!

Around this level, I'd lean towards shares like APA Group Ltd (ASX: APA) or AGL Group Ltd (ASX: AGL). These both have a long history of paying long term reliable dividends to shareholders and they also yield around the 6% level.

Can't I just invest in the highest yield stock I can find so I can earn more off my superannuation balance?

There are dividend shares available which pay much higher yields, some which even exceed over 15%. 

But remember, the general rule is that the higher the yield, the more volatility and risk associated with that stock.

When it comes to ASX dividends, high-yielding shares could be cyclical businesses that fluctuate significantly with market cycles, niche companies with strong cash conversion, or perhaps they have discounted share prices. 

It doesn't mean high-yield shares should be avoided, but instead, they should be part of a diversified portfolio.

The post How much passive income can I earn from a $950,000 superannuation balance? appeared first on The Motley Fool Australia.

But how much passive income could it actually generate?

Let's run the numbers and find out.

What could $100,000 generate?

A reasonable target for an income-focused ASX portfolio could be a dividend yield of around 4% to 5%.

At a 4% yield, a $100,000 portfolio would generate approximately $4,000 in passive income each year.

Increase the yield to 5% and that rises to $5,000 annually. That is before tax and does not include the potential benefit of franking credits.

I wouldn't simply search the ASX for the shares offering the biggest dividend yields, though. Very high yields can sometimes be a warning sign that investors expect the dividend to be reduced.

Instead, I would look for businesses with sustainable cash flows and a reasonable prospect of maintaining or growing their distributions over time.

Infrastructure stocks could play a role. APA Group (ASX: APA), for example, owns energy infrastructure that generates relatively predictable cash flows, while Transurban Group (ASX: TCL) collects toll revenue from major road networks.

Property could provide another source of income. HomeCo Daily Needs REIT (ASX: HDN) owns assets exposed largely to everyday spending and currently offers a higher distribution yield than many traditional blue-chip shares.

These could be mixed with established dividend payers such as Wesfarmers Ltd (ASX: WES), rather than relying too heavily on any individual company or sector.

Another way to use the $100,000

There is also an alternative for investors who don't need the passive income today.

Rather than immediately building a portfolio around dividends, I think there is a strong case for focusing on total returns and allowing the $100,000 to compound for longer.

For example, if $100,000 grew at an average rate of 10% a year with all income reinvested, it could become approximately $260,000 after 10 years.

At a 5% yield, that larger balance could then generate around $13,000 in annual passive income.

After 20 years, the same $100,000 could grow to approximately $670,000 at that return.

A 5% yield on that balance would generate around $33,500 a year.

Of course, a 10% annual return isn't guaranteed.

But I think it shows why investors with time on their side may want to concentrate on growing the portfolio first and worry about maximising passive income later.

The post How much passive income can I make from a $100,000 ASX share portfolio? appeared first on The Motley Fool Australia.

But I think it is worth owning ASX shares that I would still feel comfortable holding if share prices suddenly fell 20% or 30%.

For me, that means looking for strong competitive positions, dependable demand, and businesses that can keep moving forward even when the economic backdrop becomes less friendly.

These are three ASX shares that fit that description.

Cochlear Ltd (ASX: COH)

Cochlear would be one of my first choices. It is a global leader in implantable hearing solutions, operating in a healthcare market where the underlying need does not disappear because economic conditions weaken.

That gives Cochlear a degree of resilience I like.

There is also a long-term growth story behind the defensive qualities. Ageing populations and greater awareness of hearing loss should continue expanding the number of people who could benefit from treatment.

Cochlear also has a strong record of product development, which helps it keep improving the technology available to patients and healthcare professionals.

A market sell-off could still drag Cochlear shares lower. But I would be comfortable looking through that volatility and sticking with the long-term investment case.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is an ASX share that gives me a different kind of confidence.

This conglomerate's portfolio includes businesses such as Bunnings, Kmart, Target, Silk Laser, Priceline, and Officeworks, giving the company exposure to categories that remain important to Australian consumers through different parts of the economic cycle.

I particularly like the strength of Bunnings. Its scale, brand recognition, and position in home improvement make it difficult to replicate, while Kmart has built a strong value proposition that can remain relevant when household budgets are under pressure.

Wesfarmers also has a long history of allocating capital across different businesses and industries. That flexibility is valuable during weaker markets. A strong balance sheet and patient management can create opportunities when other companies are forced to pull back.

For me, that makes Wesfarmers the sort of business I would be happy to keep holding even if sentiment towards the broader market turned sharply negative.

Woolworths Group Ltd (ASX: WOW)

Woolworths would be my third ASX share pick.

Grocery spending is one of the more defensive parts of the economy because households still need food and everyday essentials regardless of what markets are doing.

That gives Woolworths a steady demand base through periods when consumers may be cutting back elsewhere.

Its scale also works in its favour. Woolworths operates one of the country's largest supermarket networks, with the purchasing power, distribution infrastructure, and customer reach that come with that position.

The business still needs to execute well, particularly around pricing, costs, and competition. But if the share market were falling because investors were worried about the economic outlook, Woolworths is the sort of company I would be comfortable continuing to own.

Foolish takeaway

A market downturn would probably send all three share prices lower. That would not automatically make me want to sell them.

What I care about is whether the businesses themselves can keep strengthening while the market works through the turbulence.

Cochlear, Wesfarmers, and Woolworths all give me reasons to believe they could. That is why I would be comfortable owning them before, during, and after the next sell-off.

The post 3 defensive ASX shares I'd buy in a market sell-off appeared first on The Motley Fool Australia.