Saying that, I am also an investor who loves to buy shares at the kind of steep discounts that we do tend to see during a stock market correction or crash. As such, I do tend to keep some money on the sidelines for that time that the inevitable market crash rolls around.

Now, I, along with everyone else on the planet, have no idea when the next market crash will arrive. For all I know, it could be in 2026 or in 2036.

But I do know the companies that I will attempt to load the boat with when that crash does come. 

My stock market crash buy list for 2026

When the market goes through a period defined by intense fear, I usually try to prioritise companies that tend to trade at lofty valuations. That's because it is often the only time you can buy shares of these companies at reasonable prices. 

As such, I would have my eye firmly on two ASX tech shares in the next crash. Those are TechnologyOne Ltd (ASX: TNE) and Pro Medicus Ltd (ASX: PME).

Both of these companies are growing at exceptional rates, with high levels of free cash flow and compelling growth runways. As a result, it is normal for both TechnologyOne and Pro Medicus to trade with expensive price tags. But if there is a buying window to snatch up these stocks at a bargain price, I'll be trying hard to climb through it.

I would also be looking to buy more shares of Washington H. SouL Pattinson and Co Ltd (ASX: SOL). As I've long documented, Soul Patts is one of my top ASX investments, and any chance to buy more shares of this market-beater at low prices would (at least in my view) do wonders for my long-term wealth.

I wouldn't stop at the ASX, though. These days, stock market crashes are global events. And I will be turning to the US markets when the next one happens as well. Some of the stocks I would be looking forward to loading up on include Costco Wholesale Corp (NASDAQ: COST), Mastercard Inc (NYSE: MA), McDonald's Corp (NYSE: MCD) and Meta Platforms Inc (NASDAQ: META). These are all top-quality companies that (with the possible exception of Meta) never seem to go on sale. If they did, I would be there with as much cash as I could muster.

The post Here's my buy list if the stock market crashes in 2026 appeared first on The Motley Fool Australia.

• Washington H. Soul Pattinson and Co Ltd (ASX: SOL)
• REA Group Ltd (ASX: REA)
• MFF Capital Investments Ltd (ASX: MFF)
• Wesfarmers Ltd (ASX: WES)
• TechnologyOne Ltd (ASX: TNE)

My US picks were:

• Amazon.com Inc (NASDAQ: AMZN)
• Doulingo Inc (NASDAQ: DUOL)
• S&P Global Inc (NYSE: SPGI)
• Costco Wholesale Corp (NASDAQ: COST)
• Mastercard Inc (NYSE: MA)

Obviously, not much has changed in a week, and I would still love to own more of all ten of these companies in 12 months' time.

But we're not stopping wth those stocks. Today, let's discuss ten more stocks that I think anyone can buy today to start 2026 off on a strong note. We'll once again do five ASX shares and five US stocks.

5 top ASX shares to kick off 2026 with a bang

I love consumer staples companies, and Coles Group Ltd (ASX: COL) is one of my favourites here on the ASX. Coles is a strong dividend payer with a defensive and mature earnings base that can provide protection against both recessions and inflation. It will, in my view, be around for decades to come.

Telstra Group Ltd (ASX: TLS) is another veteran ASX stock I like for 2026. Its dominance of the defensive mobile and internet markets gives it a strong moat and, thus, a reliable dividend. This company's fully-franked payouts are historically some of the best on the ASX.

Turning to a faster-growing company now, Xero Ltd (ASX: XRO) is another top stock looking interesting as we start the new year. Xero has a remarkably sticky product in its cloud-based accounting software. Consumers seem willing to keep paying those monthly fees to use Xero's platform. The company's growth plans are very exciting too.

JB Hi-Fi Ltd (ASX: JBH) is our fourth pick of the day. JB has proven itself to be one of the ASX's best retailers, having savvily evolved from selling hi-fi products to becoming an all-out electronics and appliances retailer over the past two decades. Customers love JB's distinctive marketing tactics and innovative store layouts. With JB having a rare lacklustre year in 2025, this one is looking tempting as we start 2026.

Our final ASX stock worth discussing today is more left-field. It is the gold miner Newmont Corporation (ASX: NEM). Normally, I shy away from more speculative investments like Newmont. But Newmont can be viewed as an insurance policy of sorts. If 2026 produces geopolitical or economic uncertainty on the global stage, Newmont could benefit from a rush to the 'safe haven' of gold. If some experts are to be believed, it could have another bumper year in 2026.

5 top US stocks to check out too

When I named Mastercard as one of my top US picks last week, it was partly due to my conviction that contactless and electronic payments are in the middle of a powerful long-term tailwind. That's why I am also happy to own and spruik Mastercard's arch-rival Visa Inc (NYSE: V). Visa is the largest payments company in the world, and is an extraordinarily profitable stock. However, I think its best days lie ahead.

We can say the same for Magnificent Seven winner Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL). Google-owner Alphabet owns several of the world's best businesses. These include Google Search, YouTube, Google Cloud, and AI-platform Gemini. I'm also excited about the company's self-driving division.

I would be happy to own Alphabet's Magnificent 7 sibling, Microsoft Corp (NASDAQ: MSFT), too. Buying Microsoft stock means buying a share in Windows, Office, Xbox, Teams, Activision Blizzard, LinkedIn, and many other leading digital products and services that Microsoft owns. I rest my case.

Netflix Inc (NASDAQ: NFLX) is another winner that I think will keep on winning. If Netflix manages to acquire the assets of Warner Bros Discovery Inc (NASDAQ: WBD) this year, it will own one of the most extensive and valuable collections of intellectual property on the planet. Even if it doesn't, Netflix owns a service that is well on its way to becoming an internationally recognised household essential.

Our final stock is a simple one that we all know and may love. McDonald's Corporation (NYSE: MCD) is one of the most resilient businesses in existence. Its brand is universally recognised, having transcended into popular culture decades ago. As an inflation and recession-resistant stock, I'd be happy to buy more McDonald's this January.

The post My 10 top stocks to buy to start the New Year off right appeared first on The Motley Fool Australia.

Across the Pacific, the United States is home to many stocks that would supplement an ASX retirement portfolio very well. Although those stocks don't offer franking credits, they more than make up for it with unmatchable market dominance, and in some cases, incredible dividend track records.

Let's dive into three.

Three US dividend stocks to boost an ASX retirement portfolio

Procter & Gamble Inc (NYSE: PG)

Procter & Gamble isn't a household name in Australia. However, it is the company behind a plethora of household brands that are likely in your cupboards right now. These span from Fairy dishwashing liquid and Oral-B toothpaste to Gillette razors and Pantene shampoo.

It goes without saying that these are some of the most well-known household names on the planet. And they are all made by this dominant multinational.

Procter & Gamble can also boast one of the best income track records in the world. This US dividend stock has increased its annual dividend every year for 69 consecutive years. That's a feat unheard of on the ASX. If that doesn't make this stock a contender for a retirement portfolio, I don't know what would.

McDonald's Corp (NYSE: MCD)

Next up, we have a company that needs no introduction. McDonald's is one of the most recognisable brands across the world, with only a handful of countries not hosting at least one set of golden arches.

McDonald's pioneered the fast-food business model, and 70 years later, it remains a leader in its space. This company is particularly valuable as a dividend share, given McDonald's recession-resistant nature and top-notch real estate portfolio. Those characteristics make for a good start if we are looking for a dividend stock to fund a long retirement.

But McDonald's also offers a stellar dividend track record. Although it's not quite on the level of Procter & Gamble, this company has increased its dividends for 48 consecutive years.

Microsoft Corporation (NASDAQ: MSFT)

Finally, we have a company that is not well-known as a dividend payer. Even so, Microsoft has been paying out dividends for decades and has been increasing them at a rapid clip to boot. Although it currently trades on a yield well below 1%, its last dividend increase represented a 10.67% boost over what shareholders received over the previous quarter.

Furthermore, its average annual increase over the past five years has been 10.23%.

If Microsoft maintains this rate (which is arguably likely, given its continuing profit growth), this US stock could become a valuable addition to a retirement portfolio, particularly for those with decades of retirement ahead of them.

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That's understandable. After all, property investing is the great Australian obsession. And the franking credits that ASX shares pay out are particularly lucrative for retirees and anyone who has their superannuation fund in pension phase.

However, I think it is a mistake for anyone with an SMSF to ignore what is on offer over on the US stock market.

The United States houses some of, if not most of, the best companies in the world. Having a slice of that action working towards your retirement can only be a good thing. At least in my view. So today, let's talk about five US stocks that I think anyone with an SMSF needs in their portfolios.

5 US stocks to consider for an SMSF

Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL)

First up, we have the Google-owner Alphabet. Everyone knows the dominance of the Google Search engine, one of the most popular tools on the internet. This simple gateway underpins this company's globally-dominant advertising business, and underpins many of Alphabet's other products, including Google Maps and the Chrome browser.

Alphabet's investment in artificial intelligence (AI), including through its popular Gemini platform, is, in my view, setting the company up well for continued dominance.

Mastercard Inc (NYSE: MA)

Mastercard is another well-known name that I think will be a valuable addition to any SMSF. As almost all Australians would know, the world is transitioning away from cash payments and towards electronic funds transfers.

Mastercard is a direct beneficiary of this, with its shares delivering breakneck returns for years now. With many emerging markets still in the infancy of this trend, I think Mastercard is poised to enjoy several decades of strong growth.

Microsoft Corporation (NASDAQ: MSFT)

Back to another member of the 'Magnificent 7' now, Microsoft is another company that I think is primed for continued success. This technology giant's strength comes from its diversity.

For one, its popular Windows and Office platforms continue to see enduring success. But Microsoft is also emerging as an AI leader thanks to Copilot. Additionally, it is also a gaming heavyweight, thanks to its Xbox line and recent acquisition of Activision-Blizzard. In my view, Microsoft is an educated bet on the future, and worthy of a place in any SMSF.

Procter & Gamble Inc (NYSE: PG)

Turning to a slightly more 'boring' company, at least in the eyes of many, we have consumer staples titan Procter & Gamble. This stock is the name behind many famous household brands. These include Pantene, Old Spice, Gillette, Oral-B and Fairy.

The beauty of these products is that people tend to buy them in all economic conditions. That makes Procter & Gamble a very defensive US stock for an SMSF. Given that defensiveness is a trait valued by many retirees, this company is arguably a perfect fit for their retirement funds.

McDonald's Corporation (NYSE: MCD)

We could make a very similar argument for our final SMSF stock – the world-famous McDonald's. McDonald's has been a pioneer and market leader in fast food ever since its inception in the 1950s.

Today, it is one of the most recognised brands on the planet and owns what could arguably be described as the world's best property portfolio. Despite its relatively long history, this company continues to innovate and attract legions of customers, who tend to flock through the Golden Arches regardless of what the overall economy is doing.

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Not to mention a myriad of ASX and US stocks.

This has been fantastic for anyone already invested in these assets. But it complicates matters for those who have money on the sidelines, ready to invest. Many, if not most, high-quality businesses on both the ASX 200 and the S&P 500 are now trading at levels that most experts might call elevated.

Commonwealth Bank of Australia (ASX: CBA) is arguably the local poster child for this problem. However, we have seen shares ranging from National Australia Bank Ltd (ASX: NAB) and Telstra Group Ltd (ASX: TLS) to Coles Group Ltd (ASX: COL) and Wesfarmers Ltd (ASX: WES) climb to previously unseen heights and valuations in 2025.

Ditto with S&P 500 stocks like Nvidia Corp (NASDAQ: NVDA), Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B), Microsoft Corporation (NASDAQ: MSFT), and Amazon.com Inc (NASDAQ: AMZN).

So if I had $5,000 to invest in assets today, where would I turn to?

S&P 500? How I would invest $5,000 today

To start with, I would still happily buy broad-market index funds, such as the iShares S&P 500 ETF (ASX: IVV) or the Vanguard Australian Shares Index ETF (ASX: VAS). These investments, which represent entire stock markets, are still expensive by historical standards.

But I believe buying small chunks of them at regular intervals using a dollar-cost averaging strategy is a sound way to navigate the current investing environment. Saying that, anyone who likes the sound of this strategy has to commit to a plan. It doesn't work effectively if you only buy shares when you feel comfortable about investing.

As Warren Buffett once said, "Keep buying it through thick and thin, and especially through thin".

Aside from index funds, I still think there are stocks out there, on both the S&P 500 and the ASX 200, that present good value. Investors need to do their homework to find them, though.

Yesterday, I discussed a few S&P 500 stocks that I think still represent compelling buying opportunities at current valuations. Those included Google-owner Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), Coca-Cola Co (NYSE: KO), Visa Inc (NYSE: V), McDonald's Corp (NYSE: MCD), and McCormick & Company Inc (NYSE: MKC).

Here on the ASX, the VanEck Morningstar Wide Moat ETF (ASX: MOAT) and MFF Capital Investments Ltd (ASX: MFF) still look interesting. As does Woolworths Group Ltd (ASX: WOW) for the long-term investor.

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Last Friday night (our time), the S&P 500 hit yet another new all-time record high, this one 6,532.65 points. It's just the latest high in a year that has seen dozens of new records for this index.

As the S&P 500 tracks the largest 500 companies listed on the US markets, it's a useful proxy for the entire American stock market.

Although new highs for indexes like the S&P 500 are fantastic for investors who already have substantial sums invested in stocks, it can make life difficult for those investors who have cash sitting on the sidelines, waiting to be useful.

As most ASX investors would know, it's been harder and harder to find quality ASX shares on our local markets trading at attractive pricing. But what about the US markets? Are there still American stocks that might provide value for ASX investors even with the S&P 500 at all-time highs?

Where to find value on the S&P 500 right now

Firstly, ASX investors shouldn't just assume that all of the S&P 500's 'Magnificent 7' tech giants are overvalued, just because they've been on a tear for the past few months (or years).

For example, Google-owner Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) has rallied a significant 19.2% over just the past month. Yet it still trades on a price-to-earnings (P/E) ratio of 25.4.

That's pretty cheap in my view, seeing as Alphabet reported quarterly year-on-year revenue growth of 14% to US$96.4 billion back in July, as well as a 20% spike in net income to US$28.2 billion.

Compare Alphabet's P/E ratio to, say, Telstra Group Ltd (ASX: TLS) or Wesfarmers Ltd (ASX: WES), which are today trading at P/E ratios of 25.5 and 35.5, respectively, and Alphabet looks like a pretty compelling US stock right now.

As a side note, both Microsoft Corporation (NASDAQ: MSFT) and Amazon.com Inc (NASDAQ: AMZN) stock are also trading at a similar earnings multiple to that of Wesfarmers, despite recently posting far better growth numbers.

More US stocks that look interesting at current prices

Another S&P 500 stalwart that I think offers fair value today is Visa Inc (NYSE: V). This company is the most dominant provider of electronic and cashless payments around the world. In July, it posted a 14% year-on-year rise in quarterly revenues to US$10.2 billion and a 19% rise in net income to US$5.8 billion.

Many investors, including myself, expect Visa to continue to enjoy a long growth runway for years to come, thanks to the ongoing global transition to cashless payments.

Visa currently trades on a P/E ratio of 33.5, which again looks pretty compelling compared to what ASX shares are currently offering.

Other stocks that offer decent value to ASX investors right now include Coca-Cola Co (NYSE: KO), McDonald's Corp (NYSE: MCD), and spice stock McCormick & Company Inc (NYSE: MKC).

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The US is, quite simply and indisputably, home to most of the best companies in the world. Think about the goods and services we all use on a daily basis in the workplace. Whether it be Microsoft's Office, Teams or Windows, Adobe's Photoshop or Alphabet's Google Search or YouTube, these products are at the forefront of workplace productivity. And they are all owned by US stocks. It's a similar story at home. Chances are, most readers have some Colgate toothpaste, Gillette razors, Fairy dishwashing liquid or Coca-Cola sitting on a shelf somewhere as we speak.

ASX shares are great, but it is the US markets that really offer investors a chance to own a slice of the best businesses in the world. At least in my view.

So with that in mind, here are ten US stocks that I would buy for my self-managed superannuation fund (if I had one, that is) today.

10 US stocks I would pick for a superannuation fund today

Starting off, let's go for Microsoft Corporation (NASDAQ: MSFT), Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), and Amazon.com Inc (NASDAQ: AMZN). These three members of the 'Magnificent 7' are all dominant in their own spaces. Microsoft has an impressive array of workplace software, which we touched on above. Together with LinkedIn, they form an indispensable part of many workplaces today, which I don't see changing anytime soon. Additionally, it has a large presence in the gaming space with its Xbox brand.

We could say the same for Alphabet. It's hard to overstate how valuable Google Search is to everyday work and life. With a near monopoly on the global search market, Alphabet is a tried-and-true winner at this point. YouTube is also incredibly popular, as is the Gemini AI platform and Google Cloud.

E-commerce titan Amazon is also a sure bet for a superannuation fund in my view. Amazon is globally dominant, with its sprawling online marketplace offering an ever-increasing range of products. This company is also a leader in backend cloud services through its AWS platform, which makes up an increasingly large portion of the company's profits. Amazon is the only company on this list that doesn't pay a dividend. But I think it will start soon, which is enough to get it on this list.

Adding some more US tech stocks 

Continuing the 'Magnificent 7' tech theme, I think NVIDIA Corporation (NASDAQ: NVDA) is another stock worthy of inclusion in a super fund. Nvidia has the potential to grow at an impressive pace, despite its US$4 trillion size. Being the leader in chip and artificial intelligence hardware is a license to print money in 2025, and Nvidia has proven it can do so.

Moving outside the Magnificent 7 now, let's talk about Mastercard Inc (NYSE: MA). Mastercard is one of those companies that doesn't make headlines too often, but has still been growing at a healthy pace for many years now. The global shift to cashless payments continues to march on, and Mastercard is a prime beneficiary of this. This is a phenomenal 'set-and-forget' stock to buy for a super fund.

Some consumer staples stocks for a super fund

As is our next company, the famous Coca-Cola Co (NYSE: KO). Coke is one of the most successful companies of all time, and given the sheer volume of drinks that it continues to sell, it looks set to remain so. People simply love Coca-Cola, as well as Sprite, Fanta, Mother and the myriad of other drinks in this company's stable. 

One of Coca-Cola's most famous backers is the legendary Warren Buffett, whose company, Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B) is our next stock. Although Berkshire is famous for its massive historical returns, there is an elephant in the room – Buffett's impending retirement. Although the 95-year-old will step down from Berkshire at the end of this year, I think Buffett has set the company up for generations of success, thanks to Berkshire's massive portfolio of high-quality businesses.

Another company that Buffett has invested in before is Procter & Gamble Inc (NYSE: PG), which is our next US stock worth discussing.

Brand power

This company is the business behind the Gillette and Fairy names we discussed earlier, as well as other popular household brands like Oral-B, Tide, Pantene, Old Spice and Vicks. These products are all life essentials, and their brands command a lot of goodwill and trust right around the world. I can't think of better attributes that a US stock can offer a superannuation fund.

Continuing with the consumer staples theme, Walmart Inc (NYSE: WMT) is another US stock that would do well in a super fund. Walmart is a dominant supermarket chain in the United States, with a growing international presence, too. It has enduring popularity amongst consumers thanks to its highly competitive prices. 

In my opinion, it is highly likely that Walmart will continue to be the first choice of many Americans when it comes to stocking their households. As such, it's a company that I regard as a rock-solid, buy-and-hold investment.

Finally, let's talk about a company we all know and may or may not love. McDonald's Corp (NYSE: MCD) is one of the most famous brands in the world, and is available almost anywhere in the world. Its logo and products have become part of popular culture, and remain enormously popular wherever you go. That makes this US stock a great buy for investors worried about inflation, recessions or other kinds of economic problems.

The post 10 US dividend stocks I'd buy for a superannuation fund today appeared first on The Motley Fool Australia.

And while it is possible, the reality is that a single $100 investment will take a long time to turn into $1,000. Even with strong compounding, it could take decades for a one-off $100 to grow into a ten-bagger.

But there is a smarter way to grow wealth. By consistently investing $100 every month, you could smash through the $1,000 milestone and begin building real wealth over time.

The power of regular investing

If you invest $100 each month into the share market and earn an average annual return of 10% (in line with historical share market averages, but not guaranteed), you would grow your portfolio to just over $20,000 in 10 years.

That's a massive leap on the original target, with compounding doing the heavy lifting as your returns generate more returns. In other words, the $1,000 target becomes a stepping stone, not the finish line.

How to get started with $100

The good news is you don't need to be wealthy to start. Low-cost micro investing apps, like Pocket from Commonwealth Bank of Australia (ASX: CBA), make it possible to begin with as little as $50 per trade. That means everyday Australians can start building an investment portfolio straight from their smartphone.

And when it comes to what to buy, simple, diversified exchange-traded funds (ETFs) are often the best option for beginners.

One option is the Betashares Nasdaq 100 ETF (ASX: NDQ), which gives you exposure to global tech leaders such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA).

For broader global coverage, the iShares Global 100 ETF (ASX: IOO) holds blue-chip companies across multiple industries, including Tencent Holdings (SEHK: 700), LVMH Moet Hennessy Louis Vuitton (FRA: MOH), and McDonalds (NYSE: MCD).

And for those wanting exposure to the Australian market, the iShares Core S&P/ASX 200 ETF (ASX: IOZ) is a low-cost way to invest in the country's 200 largest companies, such as BHP Group Ltd (ASX: BHP), Telstra Group Ltd (ASX: TLS), and Westpac Banking Corp (ASX: WBC).

Foolish takeaway

Turning $100 into $1,000 won't happen overnight. But by consistently investing $100 a month into high-quality ETFs, you could achieve that milestone quickly and keep going far beyond it.

With micro investing apps lowering the barriers to entry, there has never been an easier time for everyday Australians to start their investing journey. The key is to start small, stay consistent, and let compounding work its magic.

The post How to turn $100 into $1,000 by investing appeared first on The Motley Fool Australia.

US stocks may not offer the large upfront dividend yields and franking credits that their ASX counterparts can. However, that doesn't mean they are useless when it comes to dividends. There are many things to love about American companies in this regard.

For one, they tend to pay dividends every quarter, rather than the six-month interval that we are used to. For another, many US stocks boast dividend increase streaks that would make an ASX share blush. To illustrate, there are more than 50 US stocks that have a 50-year-and-counting streak of delivering annual dividend pay rises.

Here on the ASX, we only have one that has hit 27 to date.

 So with this in mind, here are three US stocks that I own for dividend income.

Three US stocks that I bought for big dividend income

McDonald's Corporation (NYSE: MCD)

McDonald's is a company that needs no introduction in Australia, despite its absence from the ASX. Its logo and products are ubiquitous in popular culture.

 McDonald's isn't quite at a 50-year streak with its payouts just yet. But it's pretty darn close at 48. This company has grown its shareholder payouts by about 7.3% per annum over the past five years.

For me, McDonald's is one of those businesses that will always do well. As such, I keep its shares in my portfolio what the hope, and expectation, that those dividends will keep increasing for at least another 48 years.

Alphabet Inc (NASDAQ: GOOGL)

Next up is Alphabet, the owner of Google.

Now, Alphabet doesn't quite have the same level of dividend prowess that McDonald's can boast of. In fact, it only paid out its inaugural dividend last year, despite having the capacity to do so for more than a decade prior to that.

Even so, it has hit the ground running, delivering a 5% increase to its quarterly dividend in 2025. Given Google's complete domination of the Search category around the world, as well as Alphabet's other ventures, including YouTube, Gemini and Waymo, I have complete confidence that this stock will be a dividend powerhouse one day.

Procter & Gamble Inc (NYSE: PG)

Our final US stock for today might seem a little boring. But in the world of dividend investing, I think boring is usually good.

You might not have heard of Procter & Gamble. But you almost certainly have some of this company's products in your house as we speak. This company owns a stable of popular household brands. These range from Tide laundry powder and Pantene shampoo to Fairy dishwashing liquid and Gillette razors.

These brands are all household staples, and have stood the test of time. That makes them, in my view at least, almost impervious to economic shocks like inflation and recessions.

This is evident in Procter & Gamble's dividend track record. This US stock has grown its annual dividend for a whopping 68 years in a row. Over the past five years, that growth has averaged 6.07% per annum, well above the rate of inflation. Again, this is a stock that I am happy just to have in my portfolio for the rest of my life.

The post I own McDonald's and these US stocks for big dividend income appeared first on The Motley Fool Australia.

Exchange-traded funds (ETFs) make this approach even easier by providing instant exposure to hundreds — sometimes thousands — of companies in a single trade.

If you want to keep your investing simple but effective in 2025 and beyond, the three ASX ETFs listed below could form the backbone of a stress-free, growth-focused portfolio. They are as follows:

iShares S&P 500 ETF (ASX: IVV)

For most Australians, global diversification starts with the United States. The iShares S&P 500 ETF tracks the S&P 500 index, giving investors easy access to 500 of America's largest companies. This includes tech titans like Microsoft (NASDAQ: MSFT) and Nvidia (NASDAQ: NVDA), as well as household names like Coca-Cola (NYSE: KO), Starbucks (NASDAQ: SBUX), and McDonalds (NYSE: MCD).

The US market has historically delivered strong returns, and the iShares S&P 500 ETF offers a low-cost way to tap into that growth while benefiting from the stability of blue-chip names across technology, healthcare, consumer staples, and financials.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Another ASX ETF that makes investing simple is the Betashares Global Quality Leaders ETF. It focuses on global stocks with strong balance sheets, high profitability, and consistent earnings growth. These are the kind of businesses that often outperform over the long term. It currently includes stocks like Visa (NYSE: V), a payments leader with recurring revenues, and Johnson & Johnson (NYSE: JNJ), a global consumer staple brand with enduring demand.

This fund isn't just about growth — it is also about resilience. By filtering for quality metrics, the Betashares Global Quality Leaders ETF helps investors avoid weaker companies that might struggle in tougher markets. This ASX ETF was recently named as one to consider buying by the team at Betashares.

Betashares Nasdaq 100 ETF (ASX: NDQ)

If you're seeking growth, then the Betashares Nasdaq 100 ETF is hard to ignore. It offers exposure to 100 of the largest non-financial companies on the Nasdaq. This captures the heart of the global technology sector.

Alongside Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN), it includes innovative names like Broadcom (NASDAQ: AVGO), a key player in the semiconductor and networking space. With artificial intelligence and digital transformation reshaping industries, the Betashares Nasdaq 100 ETF provides a simple way to ride some of the biggest secular growth trends in the global economy.

The post 3 strong ASX ETFs to buy for simple investing appeared first on The Motley Fool Australia.

But the good news is, with just $1,000, you can begin building wealth through the share market — and the ASX is a great place to start.

Here's how to put that $1,000 to work and start your investing journey the smart way.

Starting with ASX shares

It is always important to understand why you are investing.

That's because knowing your objective will help shape your strategy. For most people starting out, long-term growth is the name of the game — and that means focusing on quality and consistency over short-term wins.

Consider ETFs

If you're new to the market, picking individual stocks can feel overwhelming. That's where exchange traded funds (ETFs) come in. These investment vehicles let you buy a basket of shares in one go, giving you instant diversification.

For example, the Vanguard Australian Shares Index ETF (ASX: VAS) gives you exposure to the top 300 shares on the ASX, including household names like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).

Whereas investors wanting international exposure could turn to the iShares S&P 500 ETF (ASX: IVV). It lets you invest in 500 of the largest companies in the US. This includes iconic companies like Apple (NASDAQ: AAPL), McDonald's (NYSE: MCD), Microsoft (NASDAQ: MSFT), Nike (NYSE: NKE), Starbucks (NASDAQ: SBUX), and Tesla (NASDAQ: TSLA).

Think long term

The most important part of investing with a small amount? Getting started and staying the course.

Investing $1,000 won't make you rich overnight — but it can build momentum. Over time, those initial dollars can grow through compounding returns, especially if you keep adding to your investments consistently.

Even adding $100 or $200 a month can snowball into significant wealth over time.

For example, starting with $1,000 and then adding $200 per month would turn into almost $43,000 in 10 years if you averaged a 10% per annum total return. Keep doing for another decade and your wealth would balloon to over $150,000.

And while 10% per annum returns are of course not guaranteed, they are in line with historical averages.

Foolish takeaway

Starting with $1,000 might not seem like much, but it's more than enough to begin your investing journey. Focus on diversification and quality, and remember: the goal isn't to time the market — it is time in the market that counts.

With patience and a long-term mindset, that first $1,000 could be the foundation of something much bigger.

The post How to become rich with ASX shares starting with just $1,000 appeared first on The Motley Fool Australia.

According to CNBC's Berkshire portfolio tracker, Buffett, as of 31 March, has US$347.7 billion in cash and cash-equivalent investments ready to go at Berkshire. That cash pile is worth more than the combined public stock portfolio of Berkshire right now (although not if combined with its private, unlisted investments). It's also the highest cash position Berkshire has ever had. Not a bad problem to have, all things considered.

But let's move from the factual to the hypothetical. If I had a cash pile as large as Warren Buffett's, what would I spend it on?

Well, apart from a nice house and perhaps a vintage Aston Martin DB5, I would, of course, buy stocks.

The ASX shares I would buy with Buffett's cash pile

I would be happy to spend a large chunk of the pile on a simple index fund tracking ASX shares, probably the Vanguard Australian Shares Index ETF (ASX: VAS). This exchange-traded fund (ETF) offers investors exposure to the largest 300 shares listed on the ASX, weighted by market capitalisation.

This is a great hands-off investment that will likely grow in line with the broader Australian economy over time, which I find appealing as a cornerstone investment.

Following VAS, I would then opt for some additional ASX shares that balance a supply of reliable dividends with some of the ASX's most exciting growth stocks.

For dividends, I would choose a mixture of Washington H. Soul Pattinson and Co Ltd (ASX: SOL), Coles Group Ltd (ASX: COL), Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), and National Australia Bank Ltd (ASX: NAB). These companies all have a strong history of providing hefty and steadily rising dividends, which is a trait Buffett himself often looks for.

I would add investments in TechnologyOne Ltd (ASX: TNE), REA Group Ltd (ASX: REA), and Xero Ltd (ASX: XRO) for some growth exposure too.

Never bet against America

But I wouldn't just stick with ASX shares. Warren Buffett himself has expressed his belief that the US markets, and the companies that reside on them, are the world's best. As such, I would probably invest more of that enormous cash pile into US stocks than those on the ASX.

My top priorities would be the companies that are leaders in their fields and have a long history of delivering for shareholders. I would start with the magnificent seven stalwarts Amazon.com Inc (NASDAQ: AMZN), Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), and Microsoft Corporation (NASDAQ: MSFT). I think these names are the best that the US currently has to offer, and have long growth runways still ahead of them.

Then, I would add quality names like Mastercard Inc (NYSE: MA), Netflix Inc (NASDAQ: NFLX), American Express Inc (NYSE: AXP), and Costco Wholesale Corp (NASDAQ: COST).

Perhaps I would also consider Caterpillar Inc (NYSE: CAT), McDonald's Corporation (NYSE: MCD), and Procter & Gamble Inc (NYSE: PG).

With these stocks, which range from growth engine companies like Mastercard to consumer staples fortresses like Procter & Gamble, I think I would have a portfolio that could look after my family's financial interests for the rest of my days.

Shame about the lack of a Buffett-style cash pile, though.

.

The post If I had a big cash pile like Warren Buffett, here's how I'd spend it in 2025 appeared first on The Motley Fool Australia.

There are officially 11 different sectors that an ASX share can be classified into. Those 11 sectors are:

• Energy
• Materials
• Indistrials
• Consumer staples
• Consumer discretionary
• Healthcare
• Fiancials
• Information Technology
• Communication services
• Utilities
• Real Estate

Some investors break down these sectors even further. For example, it is common for investors to extract gold stocks from broader materials (or mining) shares, as gold companies tend to dance to the beat of a different drum. But on the whole, these chosen 11 sectors divvy up the ASX quite effectively.

Most investors have a preference for which companies they like to invest in. Today, let's discuss the two that I personally gravitate towards and why.

Which ASX sectors do I like to buy stocks from?

ASX consumer staples shares

First up, we have the consumer staples sector. Consumer staples shares are companies that tend to sell goods and services that we need, rather than want, to buy. These include food, drinks, and other household essentials. They also include companies that produce or sell alcohol and tobacco.

The ASX's two most prominent consumer staples shares are Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW). But the likes of Bega Cheese Ltd (ASX: BGA), Endeavour Group Ltd (ASX: EDV), and Metcash Ltd (ASX: MTS) are also popular.

As the name implies, consumer staples companies tend to have highly defensive cash flows and dividends that are relatively protected against cyclical economic problems like inflation and recessions. It's for this reason that I like to invest in these companies at the right prices. In my personal portfolio, you'll find Endeavour, as well as a few US consumer staples stocks like McDonald's, Procter & Gamble, and Coca-Cola.

Technology shares

Information technology shares, or tech stocks for short, are another sector I like to trawl for my next investment. This may be a tad cliched, but it's still my belief that the most innovative, exciting companies on the ASX are currently in this sector. Think of names like TechnologyOne Ltd (ASX: TNE), Xero Ltd (ASX: XRO), WiseTech Global Ltd (ASX: WTC), and Block Inc (ASX: XYZ).

Tech stocks have a unique advantage on the ASX in that they can often scale at rates that are impossible for companies in other sectors. To illustrate, let's take Xero's accounting software. This software might be expensive to develop. But once it's ready for market, it doesn't cost Xero much to sell it.

If the company sells 20% more subscriptions in a given year, its costs of doing business will barely rise, allowing all of that extra revenue to flow straight to the bottom line. Contrast that with, say, a car company, whose costs are directly proportional to how many vehicles it manufactures.

Unfortunately, there aren't too many ASX tech shares in my portfolio at present, as I haven't been able to buy the stocks I'd like to at the right prices lately. However, I do own a few US tech shares, including Microsoft, Alphabet, Duolingo, and Netflix.

The post My 2 favourite ASX sectors to invest in appeared first on The Motley Fool Australia.

Well, I've cooked up a contrarian take. Despite a statutory net loss of $13.7 million (deepening from $2.3 million in FY23), the company still pulled off an exceptional feat based on one area that isn't getting the air time I believe it deserves.

Sure, the bottom line may not look glamorous. Fortunately, thanks to its initial public offering (IPO), GYG flexes $294.5 million of cash and term deposits. So, some short-term losses are not fatal for a company in its situation.

What matters most right now is GYG's growth in the quick-service restaurant (QSR) industry.

Shrinking appetite for takeaway

Restrictive interest rates are taking a toll on takeout spending.

Fast-food heavyweight McDonald's Corp (NYSE: MCD) revealed its second-quarter results last month, showing a decline in sales year-on-year. The slowdown was described as a byproduct of a more cost-conscious consumer, with CEO Chris Kempczinski saying:

You are seeing consumers being much more discretionary as they treat restaurants. You're seeing that the consumer is eating at home more often; you're seeing more deal-seeking from the consumer. And you're seeing, I think, a trade down even within either units per transaction or within mix.

All of those things for us are indicators that the consumer across a number of these markets is being very discriminating.

If we narrow in on Australia, the Australian Bureau of Statistics reported a 0.2% decline in takeaway food services spending in June. Evidently, people are cutting back on the cheeky fast-food feed. Yet, GYG is powering ahead in its first ASX report.

GYG grew network sales by 26% in FY24. On a comparable (or same-store) sales growth basis, the increase was 8.1% year-on-year.

For context, Domino's Pizza Enterprises Ltd (ASX: DMP) same-store growth was 2.8%. Similarly, KFC and Taco Bell operator Collins Food Ltd (ASX: CKF) posted a 3.8% increase in same-store sales.

Assuming demand is falling with people spending less on takeaway, GYG's strong growth would suggest the Mexican outlet is taking market share. That's a major plus if it can hold onto it as fast-food spending eventually returns to growth.

What's the downside to GYG's ASX result?

There is still some gristle in Guzman y Gomez's full-year report.

One could argue the company was able to expand its same-store sales beyond its peers because GYG is wearing higher costs and not passing it onto consumers. As a result, the company reported a statutory loss compared to a small profit in FY23.

If that were the case, the market share gains might only be temporary. Eventually, GYG will need its prices to be high enough to generate reasonable returns on capital.

I still won't add Guzman y Gomez to my portfolio for now. However, today's result has certainly gained my attention and respect. A few more solid results showing continued execution and I might just bite.

The post Why GYG's first ASX results are genuinely impressive appeared first on The Motley Fool Australia.

Analysts at ANZ Group Holdings Ltd (ASX: ANZ) are tipping the US Fed to raise rates at a meeting later this week.

The S&P 500 Index (SP: .INX) slid 1.3% overnight, the Dow Jones Industrial Average (DJX: .DJI)slipped 0.77% and the Nasdaq Composite Index (NASDAQ: .IXIC) slipped 1.96% on Monday, US time.

What's ahead?

ANZ highlighted it is a "big week for both central banks and US equities" in a research report released this morning.

Among the US stocks due to report earnings are Apple Inc (NASDAQ: AAPL), Meta Platforms Inc (NASDAQ: META), Caterpillar Inc (NYSE: CAT), McDonald's Corp (NYSE: MCD), General Motors Company (NYSE: GM), United Parcel Service Inc (NYSE: UPS) and Alphabet Inc Class A (NASDAQ: GOOGL).

ANZ senior economist Felicity Emmett said these earnings announcements will provide a "micro overview of the macro economy". She added:

Investors bought into the 'soft landing' view in early 2023, despite the prospect of what could still be a bumpy ride for activity as the lagged effects of last year's interest rates front-loading and still-high inflation bite. 

Meanwhile, the United States Federal Open Market Committee (FOMC) is due to announce an interest rate decision on Thursday morning, Sydney time. ANZ is forecasting a 0.25% rate rise.

Commenting on this outlook, ANZ's Emmett said:

We expect a 25bp rate rise and anticipate that the Fed will caution against an early pause in the tightening cycle and certainly give the notion of cuts no rein.

Risk appetite could be vulnerable to a correction.

US stock market snapshot

Meta shares fell 3% on Monday and have shed 53% in the last year.

Apple Inc (NASDAQ: AAPL) shares lost 2% on Monday and have slid 18% in the last year.

Alphabet shares slid 2.74% on Monday and have tumbled 28% in the past year.

McDonalds shares dropped 0.58% on Monday but have climbed 4.41% in the last 52 weeks.

General Motors shares shed 4.37% on Monday and have slumped 31% in the last year.

Caterpillar shares fell 1.11% on Monday but have soared 29.74% in the past year.

The United Parcel Service share price lost 2.81% on Monday and has slid 12.48% in the last year.

Meanwhile, the S&P 500 Index has shed 11% in the last year, while the Dow Jones has lost 4% in a year and the Nasdaq Composite has shed nearly 20% in the past 12 months.

The post What to watch on the US stock market this week: ANZ appeared first on The Motley Fool Australia.

Such a long and steady track record shows that a company is financially stable and strong enough to fork out such a large volume of cash consistently.

Over on the US markets, there are many dividend aristocrats. Some you might have heard of include Caterpillar Inc (NYSE: CAT), Exxon Mobil Corp (NYSE: XOM), and McDonald's Corp (NYSE: MCD).

What's more, is that the US markets also boast quite a few dividend kings. These fabled royals of the share market have a 50-year streak of annually raising their dividends. This list is a lot smaller but includes Coca-Cola Co (NYSE: KO), Colgate-Palmolive Company (NYSE: CL), and Altria Group Inc (NYSE: MO).

Does the ASX offer any dividend aristocrats?

Unfortunately, here on the ASX, we have no dividend aristocrats by the US definition. Let alone dividend kings.

But we do have a couple of ASX dividend heavyweights that come close. And they are two shares that I think any investor could comfortably buy and hold for the long term.

The first is Brickworks Limited (ASX: BKW). Brickworks is a building and construction materials company. But it also has a few other earning streams, including from its lucrative property business.

Brickworks has a strong dividend track record. It hasn't raised its dividend for 25 consecutive years, so we can't call it an official dividend aristocrat.

But what it does have is a 45-year history of not cutting its dividends. In other words, Brickworks has either maintained or increased its annual dividends every year since 1976. Definity heavyweight material.

Soul Patts: 3 years to go

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

Soul Patts is the closest thing to a dividend aristocrat the ASX has. No, Soul Patts hasn't quite got to 25 years of annual dividend raises. But it has upped its annual dividend every year since 2000. That means it's only three years away from becoming the ASX's first dividend aristocrat.

Soul Patts is a rather interesting company. It functions more as a listed investment company (LIC) than a traditional ASX business, owning large chunks of other ASX shares in a massive investment portfolio.

This it runs for the benefit of its shareholders. Soul Patts' largest holdings include TPG Telecom Ltd (ASX: TPG), New Hope Corporation Limited (ASX: NHC), and Brickworks itself.

But Soul Patts also owns a large and diversified portfolio of ASX 200 shares, thanks to the acquisition of ASX LIC Milton Corporation last year. These include your typical ASX holdings like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA).

Both of these would-be ASX dividend aristocrats have a long history of delivering meaningful returns to their shareholders. And both boast unrivalled dividend records on the ASX, if not yet long enough to qualify for the 'dividend aristocrat' tag.

As such, Soul Pattss and Brickworks are two ASX dividend heavyweights that I would happily buy and hold until retirement and beyond.

The post 2 ASX 200 dividend heavyweights to buy and hold until you retire appeared first on The Motley Fool Australia.

So has this popular ASX ETF really lost almost 95% of its value this week?

The iShares S&P 500 ETF is one of the most widely-held ETFs on the ASX. It's actually the ASX's most popular internationally-based fund. This ETF tracks the S&P 500 Index (SP: .INX), which is the most widely tracked index in the world.

It represents the 500 largest companies on the US markets by market capitalisation. That includes everything from Apple, Microsoft, and Amazon to Exxon Mobil, Coca-Cola, and McDonald's.

So no, this ETF hasn't collapsed by 95% this week. If the US S&P 500 Index was down 95% in one week, we'd certainly all know about it.

Rather, this ETF has just undergone a stock split.

A stock split for the S&P 500 ETF?

A stock split occurs when a company or ETF decides to increase its share (or, in this case, unit) count. It issues new shares (or units) to existing investors, at the same time diluting the value of the existing shares out there.

This has the effect of lowering the share (or unit) price of the company or ETF, but makes up for this by giving away new shares (or units).

This can be done for a number of reasons. But most do so to boost liquidity and to make it easier for investors to buy and sell shares or units.

At the start of this week, one single unit of the iShares S&P 500 ETF would set an investor back almost $600. That makes it a rather unwieldy investment to have to deal with.

This ETF's provider must have thought so too, because back on 23 November, BlackRock announced that the iShares S&P 500 ETF would be undergoing a 15-to-1 stock split.

That means that for every one unit of this ETF, investors now own 15. Concurrently, the unit price of this ETF has just been reduced by a factor of 15.

So if an ASX investor used to own 10 iShares S&P 500 units, worth $5,860, today, they own 150 units, each worth $39.07. Same value, different path to getting there.

So no investor has been left better, or worse off, from this split. It's just a cosmetic change for all intents and purposes.

Is it IVV or IVVDB?

But what's with the new ticker code? Yes, the iShares S&P 500 ETF used to trade under the code 'IVV'. But today, the ETF has seemingly switched to 'IVVDB'. Well, this is a temporary situation.

As we covered last week, part of the stock split process involves the ETF trading under a 'deferred settlement' basis. So today, the 'IVVDB' units represent the deferred settlement units.

This will only be in place until 13 December. That's when the deferred settlement period will have concluded and the ETF reverts to its old 'IVV' code.

The IVVDB units will seamlessly be converted into IVV units when this happens. So if you're desperate to buy the newly-split ETF today, don't let the new code hold you back.

The post Is the iShares S&P 500 ETF (IVV) really down 95% today? appeared first on The Motley Fool Australia.

Skyfii shares are soaring 45.71% at the time of writing and currently trading at 5.1 cents. For perspective, the S&P/ASX 200 Index (ASX: XJO) is climbing 0.4% today.

Let's take a look at why this ASX tech share is rocketing ahead today.

McDonald's deal

Skyfii has signed a deal with McDonald's to supply technology at eight restaurants in the United States.

The three-year contract has a total contract value of $2 million.

Skyfii will provide the fast food chain with real-time restaurant monitoring and analysis technology. This is an industry first, according to Skyfii.

The data from the technology will enable McDonald's to find out how long it takes for a customer to receive their order. Skyfii has partnered with global strategy and research company Halverson Group on this solution.

Commenting on the news, Skyfii CEO Wayne Arthur said:

The opportunity to partner with both Halverson Group and McDonald's to create an industry-first solution that solves some critical pain points for such a large and
globally recognised QSR brand is a privilege

What else?

Skyfii also delivered an investor presentation to the market today. Total operating revenue lifted 7% on the prior corresponding period to $5.4 million. Net operating cash flow improved 333% to -$0.9 million.

Skyfii said 75% of its new contract wins are outside the APAC region. Of the deals closed, 79% have been in the last six months.

Looking ahead, the company is expecting to deliver another year of "strong revenue growth".

Skyfii share price snapshot

The Skyfii share price has fallen 46% in the past year, while it has lost 48% in the year to date.

For perspective, the ASX 200 has fallen nearly 7% in a year.

This ASX tech share has a market capitalisation of about $21 billion based on the current share price.

The post Happy deal: The ASX tech share rocketing 46% on a McDonald's agreement appeared first on The Motley Fool Australia.

For example, a retiree may appreciate the high dividends that an ASX bank share like Westpac Banking Corp (ASX: WBC) doles out. But a younger investor might wish to go for something with a bit more of a growth profile.

There's no right way to invest when it comes to shares (although there are many wrong ways).

With all this in mind, let's discuss how I allocate my own share market portfolio. As discussed above, this is what works for me, and my own strengths and weaknesses.

Now, I have many many different holdings across my portfolio. So I won't discuss all of them. But I will touch on some theses and strategies that I tend to follow, and explain why.

ASX shares, dividends and franking credits

So to start with, I own a mix of ASX and US shares. This is for many reasons. I love the franking credits and local knowledge that makes ASX investing so rewarding.

But I also love the currency, geographic and economic diversity that comes from investing in the United States. What's more, most of the best companies in the world call the US home.

My selection process is a rather simple one: I look for quality companies, usually with a strong brand, that have demonstrated competency and resiliency over a long period of time.

Let's start with the ASX shares. So I do like a share that pays dividends, preferably those of the fully franked variety. One of my oldest holdings is Telstra Corporation Ltd (ASX: TLS).

I bought Telstra back in 2018 when it was trading for under $2.80 a share. The market hated it then, but I saw a company with a dominant brand providing an essential service. I continue to hold it today for those same reasons.

Another ASX share that is a long-term favourite of mine is National Australia Bank Ltd (ASX: NAB). NAB doesn't have the pricing premium that Commonwealth Bank of Australia (ASX: CBA) does. But I still think it is one of the best-run ASX banks.

My favourite ASX share, though, is Washington H. Soul Pattinson and Co Ltd (ASX: SOL). I've discussed my love of Soul Patts before. But quite simply, it is a diversified market beater with an unmatched dividend record.

Looking across the pacific for my portfolio

Turning to US shares, and again my preference is strong brands and a proven track record. That's why my US shares include names like Apple, Microsoft, Mastercard, Alphabet, Nike and Amazon.

Tesla Inc (NASDAQ: TSLA) is another company that I own. When I first invested in the electric car maker, it was one of my riskier shares. But I have been delighted to see the company grow in size and scale (not to mention value).

Most of my other US shares are within the consumer staples sector. I love the resilience and stability that these kinds of shares can add to a portfolio, as well as the dividends, of course. Among my favourites are Coca-Cola, Pepsi, Starbucks and McDonald's.

Many of these companies have made a habit of raising their dividend every single year, so I have enjoyed watching my dividend income inch up steadily over the years.

So that's my ASX share portfolio in a nutshell and why I own the companies that I do. As I said, it may not be for everyone. But it works for me and my goals. And I sleep soundly every night. What more could one ask for?

The post Here's how I allocate my ASX share portfolio and why appeared first on The Motley Fool Australia.

The stock market suffered a setback on Tuesday, giving back gains from Monday's session amid renewed fears about what the Federal Reserve might do when it concludes its two-day monetary policy meeting on Wednesday. Losses for the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) amounted to roughly 1%, with small-cap stocks taking relatively larger hits than their large-cap counterparts.

Data source: Yahoo! Finance.

As the stock market becomes more volatile, investors are increasingly appreciating companies that reward them with predictable and growing streams of dividend income. Today, Microsoft (NASDAQ: MSFT) announced that it would boost its quarterly payout to shareholders. The tech giant pays a relatively modest yield, but some other dividend-stock stalwarts are also in line to pay more to their investors in the near future. Read on to learn more about Microsoft as well as three other companies that could give similar rewards to shareholders soon.

A higher payout for Microsoft

Microsoft stock didn't do all that well on Tuesday, losing almost 1% in the regular trading session. However, long-term investors will get a little bit more from  the software giant in the form of higher dividend checks.

Microsoft's board of directors declared a quarterly dividend of $0.68 per share. Shareholders of record as of Nov. 17 will receive the higher payout, which will show up in investors' accounts on Dec. 8. The payout is $0.06 higher than the previous $0.62 per-share quarterly dividend.

With a dividend yield of only about 1%, most investors don't think much about Microsoft as a dividend stock. Yet the company has developed a solid track record of boosting dividend payouts over time, with the latest move making 2022 the 20th straight year in which Microsoft has paid more in annual dividends than in the previous year.

These companies could be next

Many companies have even longer track records than Microsoft in paying higher dividends. For instance, the following three companies typically announce their dividend increases around this time of year:

• Emerson Electric (NYSE: EMR) has an impressive 65-year track record of paying higher dividends to its shareholders. The company's most recent increase came last November when it announced a 2% boost to $0.515 per share on a quarterly basis.
• Fast-food giant McDonald's (NYSE: MCD) made a larger payout boost late last year, increasing quarterly dividends by $0.09 to $1.38 per share. The Golden Arches chain has a 47-year streak of paying higher dividends for long-term shareholders.
• ExxonMobil (NYSE: XOM) has a 40-year dividend-increase streak on the line as it enters the final months of the year. Last year's most recent payout boost added just a single penny to the quarterly payout, with shareholders receiving $0.88 per share each quarter.

There's no guarantee that these companies will follow through with dividend increases. Every year, there are often at least a few long-paying dividend stocks that have to make payout cuts or even suspend their payouts temporarily.

However, all three of these blue chip stocks have strong businesses underlying them, and they've had the ability to weather difficult economic times in the past and still give their shareholders higher payouts over time. At a time when many investors are feeling increasingly uncomfortable with how much the prices of their stocks have fallen, the extra confidence of knowing that they can receive a quarterly check from these companies is especially valuable.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Microsoft just hiked its dividend. Who's next? appeared first on The Motley Fool Australia.