
At this time of year, we always enjoy reflecting on which are the worthy Australian quality stocks to invest in for the year 2026.
Currently, the technology sector is brimming with great vitality, so I think it is necessary for us to consider the investment matters in this industry more carefully.
On the contrary, I will focus on analyzing two Australian stocks, which can enable us to access some leading areas of the Australian economy.
Soul Patts, as this business is regularly called, is an investment house that's invested across numerous sectors.
Agriculture and resources are two major elements of the Australian economy – they are also two significant parts of the Aussie stock's investment portfolio. They offer very different profit profiles, giving Soul Patts largely uncorrelated and diversified earnings.
It's also invested in industries such as telecommunications, swimming schools (another activity Australia is known for), financial services, credit, and more.
Soul Patts is already 120 years old; its ability to invest in different sectors can help it thrive for decades to come. There are some businesses I'm less confident about their long-term success, given how the world is changing.
A large portion of the company's earnings comes from operations in Australia, making it a very Aussie stock. I think this business can continue outperforming the S&P/ASX 200 Index (ASX: XJO) over the long term as the investment team adjusts the portfolio accordingly.
As a bonus, it has increased its annual regular payout every year for close to three decades.
There are not many things Australians seemingly care about more than coffee. Breville is one of the world's leading coffee machine businesses with a number of brands including Breville, Sage, Lelit and Baratza. It also has its own coffee bean business called Beanz.
Breville is one of the success stories of the ASX, having expanded into a number of markets in the northern hemisphere, including the US.
It's the scale of its success in the US that has caused volatility in Breville's share price over the last 12 months due to its exposure to US tariff changes. It's down 17.5% in the past year, at the time of writing.
The company is working hard to shift its US-market production out of China and into other countries, such as Mexico. This should help reduce the risk of tariff impacts.
Breville is expanding its growth potential by tapping markets like China and South Korea, where coffee has significant room to grow.
The forecast on Commsec suggests the Aussie stock's earnings per share (EPS) could rise to $1.05 in FY27, putting it at under 30x FY27's estimated earnings.