Best Shares to Buy Right Now in Australia: A Deep Dive Into 10 Major ASX Companies

The Australian Securities Exchange (ASX) offers investors numerous opportunities across different sectors. If you’re exploring the best shares to buy right now in Australia, understanding the key players across energy, finance, and materials can help guide your investment strategy.

Banking Sector Dominance: The Big Four

Commonwealth Bank (CBA) maintains its position as a financial powerhouse with a market cap of AU$168.40 billion. The institution reported interim cash net profit of AU$6.73 billion in H1, with net interest income climbing 19% and an interim dividend of AU$2.73 per share. Despite analyst concerns suggesting a “Moderate Sell” rating with a AU$91.14 consensus target, CBA’s scale and market reach remain formidable.

National Australia Bank (NAB), valued at AU$89.99 billion, delivered Full Year 2022 results showing revenue growth of 8.9% to AU$18.4 billion and net income rising 9.4% to AU$7.06 billion. The fully franked final dividend of AU$0.78 per share reflects the bank’s commitment to shareholders, though Wall Street consensus leans toward a “Hold” position.

Westpac Banking Corp (WBC) trades at AU$78.11 billion in market value and offers fully-franked dividend yields of 5.65%. FY2022 performance showed net income increasing 4.3% to AU$5.69 billion despite a 12% revenue decline, while earnings per share exceeded predictions by 13%.

ANZ Group Holdings rounds out the banking quartet at AU$72.71 billion. The company reported 9.3% revenue growth to AU$19.7 billion and 16% net income growth to AU$7.14 billion in FY2022. With projected net interest income increases of AU$2.02 billion in FY23 and AU$4.30 billion in FY25, dividend potential appears attractive. Citi rates ANZ as a “Buy” with forecasted fully franked dividends of AU$2.23 per share in FY2023.

Materials and Mining: Commodity Exposure

BHP Group Limited (ASX: BHP), valued at AU$312.91 billion, represents the heavyweight in the materials sector. The company produces iron ore, copper, nickel, coal, potash, and petroleum, with a P/E multiple of 8.72x and six-month gains exceeding 18.83%. Three-year revenue growth stands at 14.2% with a net margin near 46%. Consistent dividend payments over 13 years, currently at AU$4.74 per share quarterly, provide a dividend yield of 8.43%. CLSA upgraded the stock to “Outperform” with an AU$46.50 price target.

Fortescue Metals Group (FMG), commanding AU$69.31 billion in market cap, functions as the world’s most cost-effective iron ore producer. The company is transitioning toward green energy through Fortescue Future Industries, focusing on green hydrogen, ammonia, and electric batteries. While FY results showed revenue and earnings declines compared to prior years, FFI projects position the company for long-term growth potential.

Energy Sector Strength

Woodside Energy Group (WDS) achieved remarkable 2022 performance with AU$65.94 billion market value. Net profit surged 228% to AU$8.740 billion, operating revenue climbed 142% to AU$22.591 billion, and cash flow increased 132% to AU$11.841 million. The fully-franked dividend reached AU$3.40 per share for the full year, supporting a current dividend yield exceeding 10.79%. Citi forecasts dividend yields of 7.7%, 7.5%, and 6.5% for the next three financial years.

Specialized Companies: Biotech and Diversified

CSL Limited (AU$145.61 billion) operates as an Australian biotech specialist in plasma-based therapies, vaccines, and pharmaceuticals across over 30 countries. H1 FY23 revenue increased 19% to AU$9.68 billion with an interim dividend of AU$1.44 per share. Wall Street consensus rates CSL as “Strong Buy” with a 12-month price target of AU$335.86, suggesting potential 11.53% upside.

Macquarie Group (AU$70.59 billion), the global financial services entity, reported H1 2023 net profit of AU$2,305 million, up 13% YoY. An interim dividend of AU$3.00 per share (40% franked) maintained a 50% payout ratio while preserving a group capital surplus of AU$12.2 billion. Despite recent share price declines, the company’s diversified operations position it favorably for long-term growth.

Wesfarmers (AU$59.07 billion) owns Bunnings, a dominant home improvement retailer with over 110,000 products and 507 trading locations. H1 2022 revenue reached AU$22.558 billion with free cash flow of AU$1.365 billion. The company’s diversified operations and capacity to invest in new ventures make it worthy of consideration for growth-oriented portfolios.

Investment Essentials for ASX Success

Before committing capital to Australian equities, establish a solid foundation:

Educational Groundwork: Understand how to evaluate companies beyond headline numbers. Research industry dynamics, competitive positioning, and macroeconomic influences on different sectors.

Strategic Planning: Define your investment horizon, risk tolerance, and financial objectives. Align your stock selection with a coherent portfolio strategy rather than ad-hoc decisions.

Risk Distribution: Avoid concentration in single names or sectors. Allocating capital across materials, banking, energy, and specialized sectors reduces vulnerability to sector-specific downturns.

Due Diligence: Examine balance sheets, cash flow statements, management quality, and competitive advantages. Look beyond current valuations to understand sustainable earning power.

Emotional Discipline: Market volatility is inevitable. Maintain your strategic approach and resist panic selling or euphoric buying driven by short-term price movements.

Expert Guidance: Novice investors benefit from professional advisors who provide market context and help align portfolio decisions with personal financial circumstances.

Final Considerations

The Australian stock market offers exposure to globally competitive businesses across essential sectors. The best shares to buy right now in Australia depend on individual risk profiles, time horizons, and financial objectives. While the companies highlighted above represent significant market constituents with proven track records, investing always carries inherent risks. Thorough research, disciplined strategy, and ongoing portfolio management remain essential for long-term wealth accumulation. Consider consulting with financial professionals to ensure your investment approach aligns with your personal circumstances and goals.