The Best ASX Shares to Buy Now in September in 2025

September is often seen as a turning point for investors. Earnings season has finished, global headlines are shifting, and new opportunities are starting to appear. In 2025, the ASX is trading near record highs, attracting interest from both local and overseas investors. But the market isn’t without challenges—valuations are stretched, profit margins are under pressure, and earnings growth is harder to find. In times like these, success comes from focusing on companies with the strength, dividends, and growth potential to truly stand out. The key is knowing where to look and which shares can deliver solid returns in the months ahead.

Why Invest in ASX Shares in 2025?

Australian shares in 2025 are supported by a strong local economy and steady interest from global investors. The ASX remains a unique market because it offers a combination of income generation, resource exposure, and defensive stability. While Wall Street dominates global headlines, Australian shares are increasingly attracting international investors seeking alternatives to U.S. equities. According to Reuters, the S&P/ASX 200 gained 3.1% in the first quarter of 2025, outperforming many global peers, and saw consistent inflows from funds looking to diversify away from U.S. political risk and European sluggishness.

Domestically, the backbone of the ASX has been supported by strong performances in financials, consumer staples, and infrastructure. Dividend yields remain some of the highest among developed markets, a factor that appeals not only to retirees but also to institutions searching for predictable returns in uncertain times. Add to this Australia’s role as a commodity powerhouse, supplying iron ore, LNG, lithium, and gold to Asia, and the investment case strengthens further. Investors aren’t just buying into companies; they’re buying into Australia’s unique positioning in the global economy. The real challenge is identifying which companies best combine resilience with growth.

Current Market Trends in Australia

The ASX landscape in September 2025 reflects a curious paradox: equity prices are surging, yet earnings are showing signs of fatigue. The ASX 200 reached a record high above 9,000 points in late August, fuelled largely by dovish commentary from the U.S. Federal Reserve. However, analysts have warned that such gains may be liquidity-driven rather than earnings-backed. In fact, profit margins across many sectors are shrinking as input costs rise and consumer demand softens.

Valuations provide further reason for caution. With the ASX 200 trading at a price-to-earnings ratio above 20 (compared with a long-term average of ~14–15), valuations are stretched and leave little room for earnings disappointment. This is compounded by analysts' warnings that corporate earnings growth remains uneven in 2025, with some sectors under pressure from margin contraction while others continue to post solid profit gains. Such a backdrop forces investors to be more selective, favouring defensive sectors like healthcare, telecommunications, and consumer staples, where earnings quality tends to be more reliable.

We also note the role of macroeconomic policy. The Reserve Bank of Australia’s rate cuts are beginning to flow into consumer sentiment, with companies such as Wesfarmers reporting a rebound in spending across its retail chains. Meanwhile, the reporting season has highlighted recurring themes of disciplined capital allocation, investment in AI and digital infrastructure, and a focus on productivity gains. For investors, these trends suggest that while risks are present, opportunities exist for companies that manage costs effectively and position themselves in sectors with durable demand.

How to Identify the Best ASX Shares to Buy Now

Choosing the right shares in 2025 requires a balance between fundamental analysis and an appreciation of market psychology. It suggests that investors should focus on companies that demonstrate strong underlying earnings, manageable debt levels, and a proven record of returning capital to shareholders. In a high-valuation market, paying attention to price-to-earnings ratios and comparing them to both peers and historical averages is essential. A company may look attractive on momentum, but without sustainable cash flow or dividend coverage, its valuation could prove fragile.

Dividend stability is another key filter. Many investors rely on the ASX for income, making the sustainability of dividends critical. This means looking beyond headline yields to payout ratios, balance sheet strength, and the resilience of the company’s business model. For example, retailers with diversified supply chains and strong customer loyalty are better placed to weather consumption cycles.

Sector dynamics also play a significant role. In 2025, healthcare, telecommunications, and select technology names are benefiting from structural trends, while resource companies offer leverage to any recovery in Chinese demand. Finally, investors should weigh management quality. Companies with experienced leadership, disciplined capital allocation, and transparent strategies are far better positioned to deliver consistent long-term value.

5 Best ASX Shares to Buy Now in 2025

Commonwealth Bank of Australia (ASX: CBA)

Commonwealth Bank (ASX: CBA) remains the benchmark for Australia’s financial sector and continues to be a core holding for many portfolios. Despite margin pressures across the banking industry, CBA has maintained its competitive edge through disciplined cost management, a dominant retail banking footprint, and investment in digital innovation. The bank’s strong capital position underpins its ability to deliver steady dividends, which remain attractive in a high-valuation environment. With net interest margins stabilising and credit quality holding up better than expected, CBA offers investors a mix of stability and reliable income. It may not deliver rapid growth, but for those seeking defensive exposure and consistent shareholder returns, CBA remains one of the most dependable ASX stocks in 2025.

Wesfarmers Limited (ASX: WES)

Wesfarmers (ASX: WES) has reinforced its reputation as one of Australia’s most resilient conglomerates. In FY25, it reported a net profit of $2.65 billion and announced a $1.7 billion capital return, underlining its commitment to delivering value back to shareholders. The strength of Bunnings and Kmart has been crucial, with both businesses benefiting from improved consumer sentiment following recent RBA rate cuts. Beyond retail, Wesfarmers’ exposure to chemicals, fertilisers and industrials provides balance and diversification across economic cycles. This breadth, combined with disciplined capital management, makes Wesfarmers a strong choice for investors seeking both growth and reliable dividends. Its adaptability and proven leadership ensure it remains one of the top ASX picks this year.

Woolworths Group (ASX: WOW)

Woolworths (ASX: WOW) stands out in 2025 as one of the safest havens for investors navigating an uncertain market. As a leading supermarket operator, its earnings are supported by consistent demand for everyday essentials, a defensive characteristic that has attracted significant institutional inflows. The company’s reliable cash flow and strong dividend track record make it a natural choice for income-focused portfolios. Woolworths is also investing heavily in its online platform and supply chain upgrades, ensuring it stays competitive in a fast-changing retail landscape. While its growth prospects are steady rather than spectacular, the predictability of earnings and defensive positioning make WOW a cornerstone holding for long-term investors.

Qantas Airways (ASX: QAN)

Qantas (ASX: QAN) has surprised many by continuing to deliver strong profits in a challenging aviation environment. In FY25, the airline posted a $2.39 billion profit, its second-highest on record, while also rewarding investors with a dividend. This resilience reflects not only robust travel demand but also management’s focus on cost control and efficiency. Expansion projects such as “Project Sunrise” are set to strengthen Qantas’ global reach, with ultra-long-haul routes positioning it as a unique international player. While airline stocks carry cyclical risk, Qantas has proven its ability to generate shareholder value even in volatile conditions. For investors seeking a blend of growth and income, QAN represents one of the more compelling opportunities on the ASX.

CSL Limited (ASX: CSL)

CSL (ASX: CSL) continues to be one of the ASX’s premier healthcare names and a global leader in biotechnology. Its plasma therapies, vaccines and expanding R&D pipeline ensure strong long-term earnings growth, with FY25 results reaffirming its ability to deliver consistent performance. The healthcare sector is particularly attractive in 2025, as analysts highlight its defensive qualities in an environment of stretched valuations across other industries. CSL’s heavy reinvestment into research keeps its competitive moat wide, while international expansion provides additional growth drivers. Although the stock typically trades at a premium valuation, investors are willing to pay up for its resilience and global scale. CSL remains a high-quality choice for those looking to balance defensive exposure with strong long-term growth potential.

 

The Risks of Investing in ASX Stocks in 2025

No investment comes without risk, and in 2025, the ASX faces several challenges investors must weigh carefully. The most immediate is valuation risk. With the market trading well above historical averages, even modest earnings misses could spark sharp corrections. High multiples mean investors are paying more for less growth, which narrows upside potential.

Earnings pressure is also uneven across sectors. While companies such as CSL and Qantas have delivered solid FY25 profit growth, others in resources, retail, and energy are facing tighter margins due to rising costs, softer consumer demand, and volatile commodity prices. This divergence highlights the importance of sector selection.

Global factors add another layer of uncertainty. Shifts in U.S. monetary and trade policy, along with questions around the strength of China’s stimulus measures, have already introduced volatility into global markets. For Australia, heavily reliant on commodity exports to Asia, any slowdown in Chinese demand remains a key risk.

In this environment, diversification is the strongest defence. Balancing defensive dividend stocks with carefully chosen growth opportunities allows investors to reduce downside exposure while still capturing upside potential. Maintaining this balance is more important in 2025 than in most years.

 

How to Start Investing in ASX Stocks

For new investors, entering the market may seem daunting, but the practical steps are straightforward. The first step is to open an account with a broker that provides access to ASX-listed shares. Most modern platforms also offer research tools, analyst recommendations, and educational resources, which can be invaluable when building your first portfolio.

Once the account is open, the next step is to define a strategy. Investors should ask themselves: Am I seeking income through dividends, growth through capital gains, or a combination of both? This clarity helps shape stock selection. For example, someone seeking a steady income may prioritise consumer staples and banks, while a growth-focused investor might allocate more to technology and healthcare innovators.

A watchlist of prospective stocks is crucial. Monitoring these companies through earnings reports, ex-dividend dates, and broader macroeconomic trends can provide the insights needed to make timely decisions. Importantly, investing should not be a set-and-forget exercise. Regular portfolio reviews, rebalancing across sectors, and adapting to changing conditions ensure that investments remain aligned with long-term goals.

FAQs

Why are analysts cautious about banks in 2025?

Despite strong dividends, banks face margin pressures as interest spreads narrow. Elevated valuations make them more vulnerable to profit downgrades, leading analysts to prefer healthcare and telecoms.

Should I consider gold and mining stocks now?

Gold has attracted safe-haven inflows, while iron ore and lithium depend heavily on Chinese demand. These sectors offer upside, but volatility remains high. Investors should treat them as part of a diversified allocation.

Can dividends remain reliable in this environment?

Yes, but selectivity matters. Companies like Wesfarmers and Woolworths continue to demonstrate robust dividend policies supported by resilient cash flow. Investors should focus on businesses with consistent earnings to support payouts.

Are small-cap growth stocks worth the risk?

Emerging names in technology or uranium can deliver spectacular gains, but they carry equally high risks. Small-cap technology or uranium names can deliver strong gains, but carry equally high risks. A small allocation may suit investors with higher risk tolerance.

How should I balance my portfolio?

A defensive tilt remains prudent: holding 40–50% in dividend-paying defensives, 20–30% in financials and industrials, and 10–20% in growth or resource stocks gives a balanced risk-return profile.