2 ASX 200 Shares to Buy, 2 to Sell This Month

By Azon Vault On May 5, 2026

Navigating the ASX 200 can feel overwhelming, especially when monthly market shifts upend even the most stable long-term picks. This month, I’ve narrowed down two high-conviction ASX 200 shares worth adding to your portfolio, and two I’d offload immediately to free up capital for better opportunities.

Note: This content is for informational purposes only and does not constitute financial advice. Always conduct your own due diligence or consult a licensed financial advisor before making investment decisions.

2 ASX 200 Shares to Buy This Month

These two picks balance near-term earnings catalysts with long-term secular growth trends, making them ideal additions to a diversified ASX 200 portfolio.

1. Commonwealth Bank of Australia (CBA.AX)

CBA remains a standout buy in the ASX 200 this month, thanks to its consistent earnings outperformance and market-leading position in Australian retail banking.

It offers a 4.2% fully franked dividend yield, well above the ASX 200 average of 3.1%.
Rising net interest margins amid a stable Reserve Bank of Australia rate environment add near-term earnings upside.
Its industry-leading digital banking platform drives higher customer retention than smaller banking peers.

With a price-to-earnings ratio of 18.2x, it trades at a slight premium to peers, but its consistent profit growth justifies the valuation.

2. BHP Group (BHP.AX)

BHP is my second ASX 200 buy pick, offering exposure to both income and long-term growth tied to the global energy transition.

Its portfolio has heavy exposure to copper, a critical metal for electric vehicles and renewable energy infrastructure, with demand set to double by 2030.
A net cash balance sheet gives BHP flexibility to maintain its 5.1% dividend yield even amid short-term iron ore price volatility.
Recent acquisitions in the nickel sector further strengthen its position in the battery metals supply chain.

BHP’s diversified commodity mix also hedges against downturns in any single resource sector, making it a lower-risk play than pure-play miners.

2 ASX 200 Shares to Sell This Month

These two ASX 200 shares have seen their near-term catalysts fade, with valuation and fundamental headwinds making them prime candidates to offload this month.

1. Domino’s Pizza Enterprises (DMP.AX)

Domino’s tops my ASX 200 sell list this month, as post-pandemic growth momentum stalls amid rising cost pressures.

Global same-store sales growth slumped to 1.2% in its latest quarter, well below pre-pandemic averages of 5-7%.
Rising labour, ingredient, and delivery costs are squeezing profit margins, with no near-term relief in sight.
Heavy exposure to slowing European consumer markets, where discretionary spending is falling amid cost-of-living pressures.

Its forward price-to-earnings ratio of 24.5x is far too high for a business with single-digit growth, leaving plenty of downside.

2. Qantas Airways (QAN.AX)

Qantas is the second ASX 200 share I’d sell this month, as post-pandemic recovery momentum gives way to mounting headwinds.

Ongoing regulatory scrutiny over delayed customer refunds and flight cancellations has damaged its brand reputation.
Persistent labour disputes and surging jet fuel prices are eroding profit margins, with no resolution in sight for union negotiations.
Its current valuation of 22x forward earnings is stretched relative to international airline peers trading at 15-18x.

With limited near-term catalysts to justify its premium valuation, Qantas is likely to underperform the broader ASX 200 in the coming months.

Final Thoughts

Monthly portfolio rebalancing doesn’t require overhauling your entire ASX 200 holdings. Swapping underperforming picks like Domino’s and Qantas for high-conviction buys like Commonwealth Bank and BHP can help you capture near-term upside while reducing exposure to unnecessary risk.

As always, align your picks with your personal risk tolerance, investment horizon, and financial goals. Small, targeted adjustments to your ASX 200 portfolio can add up to significant outperformance over time.