I’ve been thinking about a question lately—why are more and more people starting to pay attention to buying stocks in Australia? To be honest, we used to be drawn to U.S. stocks and Taiwan stocks, but with global geopolitics getting so chaotic, Australia has become a safe haven instead.

First, let’s talk about what makes the Australian stock market itself so attractive. Over the past 30+ years, except for the 2020 pandemic year, Australian stocks have basically grown positively every year, with an average annual return of 11.8% and an average dividend yield of 4%. What does that mean? It means you can hold the stocks and collect dividends while not needing to stare at day-to-day stock price moves. Even better, Australia has a tax treaty with Taiwan, and the dividend tax rate is only 10-15%, far lower than the 30% in the U.S. This tax advantage shouldn’t be underestimated.

But the real turning point is in 2025. The Australian government suddenly announced a hydrogen subsidy policy—2 Australian dollars per kilogram—and plans to phase out all coal-fired power plants by 2030. This isn’t just slogans; it’s real money. At the same time, EU carbon tariffs have arrived, and the competition between China and the U.S. is getting even fiercer. Australia’s mineral advantage has been reactivated again. I’ve seen copper mining stocks double. Lithium mining has crashed, but Australian miners have gotten smarter—they’ve started signing long-term contracts with Tesla and BYD rather than trying to compete on price.

When it comes to buying stocks in Australia, the core logic comes down to three things: who the government gives money to, what technology needs to be used, and what big countries are fighting over.

Let’s look at specific targets. FMG makes money from iron ore mining to fund its hydrogen business. It plans to produce 15 million tons of green hydrogen every year by 2030—almost like the Saudi Arabia of hydrogen in the hydrogen industry. BHP is much more steady: iron ore accounts for 65% of its profits, and it also controls the world’s largest copper mine. It has signed a 10-year copper supply contract with Tesla, with a dividend yield of 5.8%—a textbook “there’s a floor in the downside, and upside room remains” stock. Rio Tinto has lighter debt and a dividend yield of 6%, which makes it especially suitable for people chasing high dividends.

In copper, no one can shake Sandfire Resources’ “cost-killer” position. In the Mozambique mining area, the copper grade is 6%, and costs are only 1.5 Australian dollars per pound—far below peers at 2.8 Australian dollars per pound. It has a five-year agreement with Tesla to sell 50% of its production capacity at the LME copper price plus a 10% premium. Copper prices are expected to rise to 12000 Australian dollars per ton—this is a leverage tool.

In the financial sector, Commonwealth Bank of Australia (CBA) has grown its dividends for 28 consecutive years, with a dividend yield of 5.2% and a bad-loan rate of only 0.4%. Whether business conditions are good or bad, and whether war risks are high or low, CBA’s business continues to grow—its risk is frighteningly low.

Healthcare stocks are also worth watching. CSL controls 45% of the world’s plasma collection stations, and its technology costs are 20% lower than those of its competitors. With more than 5 million Australians aged 65 and above, the government’s Medicare budget increases year after year. Companies that can help the government save money can lie back and receive orders. When AI stocks were booming in 2024, healthcare stocks were overlooked, but they started making up ground in 2025.

In retail, Wesfarmers is Australia’s largest retailer. With consumer demand recovering in 2024, retail valuations aren’t as high as AI stocks—less bubble, and safer. Zip, a BNPL company, was hit hard during the interest rate-hike period, falling from 14 to 0.25. But as the rate-cut cycle begins, bad debts decrease and customers increase, and the stock price has already rebounded to 3.1—there’s a chance it could keep moving higher.

There’s also a hidden winner—Goodman Group (GMG). 65% of Australia’s top-tier logistics warehouses are theirs. Big players like Amazon and Coles are lining up to sign long-term leases, with an occupancy rate of 98%. It has grown dividends for 12 consecutive years, with stable net profit margins. Since Q4 2022, the stock price has been rising steadily. Once the rate-cut cycle starts, the cost of capital declines, and the real estate industry benefits clearly.

If you boil down the advantages of buying stocks in Australia, there are really just three points: first, long-term returns are stable—there’s more than 30 years of data to back it up; second, with global geopolitical risks increasing, Australia’s political and economic stability is drawing capital in; third, tax treaties make dividend costs far lower than in the U.S.

From 2025 to now, this game has become more intense than expected. Federal policy is reshaping energy rules, AI computing power is redefining mining valuations, and the retreat of high interest rates is driving asset rotation. The appeal of Australian stocks isn’t just about hedging risks—it’s about earning excess returns amid volatility. Instead of trying to predict the direction of the wind, it’s better to build your investment strategy based on these three logics: who the government gives money to, what technology needs to be used, and what big countries are fighting over. If you haven’t started buying Australian stocks yet, this is actually a pretty good time.