If you are hunting outsized returns, then it could be worth checking out the ASX 200 shares in this article.

That’s because last week analysts put buy ratings on them with price targets offering major upside potential. Here’s what they are recommending:

Megaport Ltd (ASX: MP1)

The team at Morgans has responded positively to news that Megaport’s Latitude business has won a series of large contracts.

The broker has retained its buy rating on the ASX 200 share with an improved price target of $15.50. Based on its current share price, this implies potential upside of almost 20% for investors over the next 12 months.

Commenting on its buy recommendation, Morgans said:

MP1 has announced a series of large contract wins which are financially and strategically significant. MP1 will use its globally unique communications platform to connect servers and GPU clusters in numerous DCs across the US. DC power constraints are a growing issue and MP1 was uniquely able to stitch together multiple sites to provide consolidated inference solutions. We update our forecasts to reflect recent contract wins, lifting our TP to $15.50 per share. We retain a BUY recommendation.

Temple & Webster Group Ltd (ASX: TPW)

Over at Bell Potter, its analysts remain positive on this online furniture retailer.

Last week, the broker retained its buy rating on Temple & Webster’s shares with a reduced price target of $7.00. Based on its current share price, this implies potential upside of almost 40% for investors between now and this time next year.

Bell Potter highlights that its shares are back down to levels not seen since 2022. However, this time around its valuation is significantly more attractive. As a result, it thinks it could be a good long-term pick for patient investors. It said:

With the continuous decline in the share price, we have seen the name back at the levels of the last profit optimisation cycle in CY22 however trading at a more attractive EV/Sales multiple (0.8x in May-26 vs 1.4x in Aug-22, on BPe).

While our estimates continue to factor in some downside risk to current company expectations/consensus, we see long term valuation support in a high-quality e-commerce retailer with range, pricing/scale advantages, AI/data capability backed by a strong balance sheet (~$160m cash, BPe) to take up inorganic growth opportunities. Other catalysts remain as potential for removal from the S&P/ASX 200 Index at the Jun rebalance and the leadership transition in Jul.

The post These ASX 200 shares could rise 20% to 40% appeared first on The Motley Fool Australia.

More reading

• I’d buy these 3 ASX shares before the next market rally
• 10 ASX shares given buy ratings this week
• Brokers name 3 ASX shares to buy right now
• 7 ASX shares with strengthened buy ratings this week
• These ASX 200 shares have been smashed. I think patient investors should pay attention

Motley Fool contributor James Mickleboro has positions in Megaport and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport and Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Doubling your money in a year is the kind of result most investors only dream about.

Yet three ASX-listed companies have done exactly that over the past twelve months, each driven by powerful tailwinds that may continue providing.

The question for investors today is whether the best is behind them or whether three is still room for growth.

Electro Optic Systems Holdings Ltd (ASX: EOS)

Few ASX stocks have had a more dramatic twelve months than Electro Optic Systems Holdings.

The defence and space technology company has risen more than 450% over the past year, transforming from a little-known ASX all-ords stock into one of the most talked-about names in Australian defence investing.

EOS develops and manufactures remote weapon systems, high energy laser weapons, and counter-drone solutions for governments and defence forces around the world.

The company signed $424 million worth of contracts during FY2025, compared to just $70 million in FY2024, including a $125 million high energy laser weapon export contract that was the world’s first of its kind.

In Q1 2026, EOS reported cash receipts of $72.6 million, up $49.9 million on the same period a year earlier.

The company’s combined order book now sits at $726 million, and its pending acquisition of the MARSS group business adds a further dimension to its counter-drone capability.

Bell Potter retains a buy rating on the stock, stating:

EOS is positioned as a market leader in C-UAS solutions, particularly in directed energy, and is leveraged to increasing budget allocations to C-UAS technologies. Through both its kinetic and directed energy solutions, EOS has a long runway for growth.

Cobram Estate Olives Ltd (ASX: CBO)

Cobram Estate Olives is not the kind of stock you expect to find in a list of the ASX’s biggest annual performers.

Yet the premium olive oil producer has risen more than 100% over the past twelve months, as a combination of record harvests, surging global olive oil prices, and a transformative US acquisition reshaped the investment case.

Cobram owns the Cobram Estate and Red Island brands, which together account for approximately half of the olive oil market share in Australian supermarkets by value.

The company is also Australia’s largest vertically integrated olive farmer, operating extensive groves and mills in both Victoria and California.

In December 2025, Cobram shares surged 17% in a single session after Ord Minnett upgraded its recommendation to buy following the announced acquisition of California Olive Ranch, describing the deal as 9% EPS accretive from FY2027 and a major step toward scaling the company’s US business.

The acquisition expands Cobram’s US footprint significantly, with a 27% increase in olive oil supply and a combined brand portfolio that positions it as one of the largest premium olive oil companies in the United States.

Cobram’s earnings have grown at an average annual rate of 30.6% over the past five years, well ahead of the broader food sector, and revenue has grown at an average of 14.5% per year over the same period.

The FY2026 full-year result is due in August 2026, and management has guided that the second half will be materially positive, driven by the recognition of fair value adjustments from the Australian harvest.

Weebit Nano Ltd (ASX: WBT)

Weebit Nano is the most speculative of the three stocks in this article, but also the one with arguably the most transformative potential.

The Adelaide-based semiconductor company has risen more than 310% over the past twelve months, hitting its highest share price since 2023 this week as a series of major commercial milestones accelerated investor interest.

Weebit develops and licenses Resistive Random-Access Memory technology, known as ReRAM, a next-generation semiconductor memory solution that is faster, more energy efficient, and more reliable than traditional Flash memory.

The technology addresses a growing bottleneck in AI, IoT, automotive, and industrial applications where traditional memory cannot keep pace with processing demands.

In May 2026, two of Weebit’s product customers successfully taped out chip designs using its ReRAM module, meaning those designs have been released to manufacturing.

One customer has already produced a functional prototype.

This represents one of three key 2026 targets Weebit set at its 2025 Annual General Meeting, and its achievement has materially de-risked the commercialisation pathway.

The company completed a strongly supported $102 million capital raise in May, with institutional and retail investors backing the business at $4.05 per share, a strong signal of market confidence in the technology roadmap.

Weebit’s licensing model, which generates high-margin royalty revenue without the overhead of physical manufacturing, means that as more chip designers adopt its ReRAM module, the revenue potential scales rapidly with limited incremental cost.

Foolish takeaway

EOS, Cobram Estate, and Weebit Nano have each doubled or more from very different starting points and for very different reasons.

EOS rides the global defence spending wave.

Cobram capitalises on the shift toward premium olive oil consumption and expanding US scale.

Weebit sits at the frontier of next-generation semiconductor memory at precisely the moment AI is creating insatiable demand for better, faster, and more efficient memory solutions.

All three carry meaningful risks, and none is suitable for investors who cannot tolerate volatility.

But for those with a long-time horizon and an appetite for high-conviction ideas, all three deserve serious attention.

The post 3 ASX shares that have doubled in the last year and could keep climbing appeared first on The Motley Fool Australia.

More reading

• 7 ASX shares with strengthened buy ratings this week
• Are these ASX shares a buy, hold or sell after jumping 8% or more?
• Up 300% in a year, this ASX tech stock just hit its highest level since 2023
• Here’s why this ASX defence stock is charging higher today
• Why EOS, Newmont, Webjet, and WIA Gold shares are tumbling today

Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When I think about what type of ASX shares I want to own, I’m drawn to ones I could own for the long-term.

While the recently announced tax changes are not ideal for share investors, capital gains tax changes may not necessarily have a major negative impact if we don’t sell any investments on a short-term holding basis, and instead allow the inflation indexation to become meaningful.

Let’s dive into why I view the two ASX share investments below as appealing options for an ultra-long-term holding.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is one of the largest funeral providers in Australia and New Zealand. It also has 41 cremation facilities and nine cemeteries. The business can deliver long-term revenue growth thanks to three key tailwinds.

Firstly, Australia’s long-term ageing demographics are, morbidly, leading to increasing demand for the business and industry as a whole.

According to Propel, death volumes are expected to rise by an average of 2.9% per year between 2026 to 2035 and then 2.4% per annum from 2036 to 2045. This can help the company’s revenue for the next two decades.

Another tailwind for revenue is rising funeral costs. While this isn’t likely to help profit rocket higher, it can help offset rising costs over time. Since FY15, the average revenue per funeral has increased at a compound annual growth rate (CAGR) of around 2.8%.

The third way the company is expanding its market share is through acquisitions. In the first-half of FY26, it made two acquisitions that come with a combined revenue of $4 million across six locations.

Over time, I expect the ASX share’s profit margins to rise thanks to its larger scale.

iShares Global 100 ETF (ASX: IOO)

The other investment I want to tell you about is this exchange-traded fund (ETF), which invests in 100 of the largest global businesses. These are multinational, blue-chip companies that are very important to the global share market.

They can come from whichever country they’re listed in – it’s not a market-specific ETF. Countries with an allocation of more than 1% of the fund include the US (80.1%), the UK (4.2%), Switzerland (3%), Germany (2.6%), France (2.2%), South Korea (2%), Japan (1.8%) and the Netherlands (1.6%).

Unsurprisingly, some of the largest positions include Nvidia, Apple, Microsoft, Amazon.com, Alphabet and Broadcom.

The 100 largest businesses in the world are likely to become more profitable as time goes on thanks to their scale benefits and market power, so I think this is an attractive group of businesses to own. Some businesses in the fund may change over time as new names rise and older names fade. This isn’t an ASX share exactly, but it is listed on the ASX so that we can buy exposure to shares.

Past performance is not a guarantee of future performance, but the IOO ETF has returned an average of 17.4% per year over the five years to April 2026. I believe the global growth of the companies inside the portfolio are very compelling for further long-term returns.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Propel Funeral Partners. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was another busy week for Australia’s top brokers. This has led to a number of broker notes being released.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Bega Cheese Ltd (ASX: BGA)

According to a note out of Morgan Stanley, its analysts have initiated coverage on this diversified food company’s shares with an overweight rating and $6.70 price target. Morgan Stanley thinks that Bega Cheese shares are good value at current levels. The broker highlights the undemanding valuation multiple its shares trade on and the company’s positive earnings growth outlook. For example, it believes Bega Cheese could grow its earnings per share at an average of 20% per annum between FY 2025 and FY 2028. This is being supported by increased protein consumption, cost savings, and optimisations. The Bega Cheese share price ended the week at $5.39.

Paladin Energy Ltd (ASX: PDN)

A note out of Morgans reveals that its analysts have put a buy rating and $13.05 price target on this uranium producer’s shares. Morgans thinks the uranium industry’s outlook is very positive. It highlights that low prices over the past couple of decades means that supply of the chemical element is struggling to keep up with demand. So, with reactor demand increasing, Morgans is expecting there to be a structural supply deficit. This could be good news for uranium prices. It notes that China has a large number of reactors under construction and the US is targeting a significant increase in nuclear energy output over the next two decades. For Paladin Energy, given the quality of its assets, Morgans believes the company is well-placed to benefit from these trends. The Paladin Energy share price was fetching $11.07 at Friday’s close.

Regis Resources Ltd (ASX: RRL)

Analysts at Macquarie have retained their outperform rating and $9.50 price target on this gold miner’s shares. According to the note, the broker is positive on the company’s plan to merge with fellow gold miner Vault Minerals Ltd (ASX: VAU). Macquarie believes the combination of the two miners has the potential to become the second-largest Australian gold miner with significant production capacity. And while the broker acknowledges that there will be no operational synergies, it points out that there will be tax benefits and a potentially lower cost of capital. The Regis Resources share price ended the week at $6.35.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• ASX 200 consumer staples shares outperformed again last week
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• This ASX uranium stock is jumping 7% today as brokers see more upside
• Morgan Stanley names 3 ASX shares to buy

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are plenty of ASX exchange traded funds (ETFs) that look attractive right now.

Some offer exposure to artificial intelligence. Others focus on cybersecurity, defence, dividends, or emerging markets.

But if I had to choose just one ETF to buy and hold for the next decade, I would keep things simple.

My pick would likely be the Vanguard MSCI Index International Shares ETF (ASX: VGS).

Why this ASX ETF stands out

This popular fund gives investors exposure to a large portfolio of international shares across developed markets.

That includes companies listed in the United States, Europe, Japan, Canada, and other major global economies. In one ASX trade, investors can access over one thousand businesses across many sectors.

The Australian share market is relatively concentrated. Banks and resources companies make up a large part of the local index, which can leave investors heavily exposed to a small number of sectors.

The Vanguard MSCI Index International Shares ETF helps solve that problem.

Its holdings include global leaders such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and NVIDIA (NASDAQ: NVDA), as well as companies across healthcare, consumer goods, financials, industrials, and communications.

A simple way to go global

The strength of this ASX ETF is that investors do not need to predict which country or sector will win over the next 10 years.

If US technology companies continue to dominate, this fund has exposure to them. If European healthcare or Japanese industrial companies perform well, the fund has exposure there too.

That broad reach makes it useful as a long-term holding.

It is also a much simpler approach than trying to buy individual overseas shares, manage currency conversions, or follow dozens of offshore companies.

Why I’d hold it for a decade

A 10-year holding period rewards patience and diversification.

There will almost certainly be market falls along the way. Some regions will disappoint. Some sectors will go through weak periods. But a fund like the Vanguard MSCI Index International Shares ETF spreads risk across a wide range of companies and economies.

But it is worth remembering that this does not make it a risk-free investment. Share markets can be volatile, and international shares will move with global conditions.

But for investors wanting a straightforward way to participate in global growth, this ASX ETF is hard to overlook.

It offers scale, diversification, global market exposure, and a simple structure. That combination is why, if I could buy only one ASX ETF for the next decade, it would be very high on my list.

The post If I could buy only one ASX ETF for the next 10 years, this could be it appeared first on The Motley Fool Australia.

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• Could this ASX ETF be the easiest way to invest in AI?
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• 2 of the best ASX ETFs to buy and hold

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, and Nvidia. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

MFF Capital Investments Ltd (ASX: MFF) is one of my favourite picks for dividend income, and I regularly put my money where my mouth is by adding to my position.

It offers everything that I want in an investment for my household’s finances – a good dividend yield, dividend growth, capital growth and some diversification benefits.

I’ve made it one of the biggest positions in my portfolio, and I’m very optimistic that it will continue to provide me with what I’m looking for. This week, I decided to invest another $2,000.

Diversification

I’m not looking for excessive diversification, but I like owning different investments that can perform well and do so through different investment exposures. Relying on a few businesses or one sector to deliver all our returns could be a mistake.

MFF aims to own very high-quality businesses at good prices, as it benefits from the portfolio’s earnings growth.

Some of MFF’s current largest holdings include Alphabet, Mastercard, Amazon, Visa, Bank of America, Meta Platforms, American Express and plenty of others.

It’s this investment strategy that has allowed the business to deliver an average total shareholder return (TSR) of 15.9% per year over the prior five years. I think the listed investment company (LIC) is worth owning on a long-term basis.

Good dividend income plus growth

As a LIC, the board of directors is able to declare the size of the dividend, which is excellent for investors who want steady dividend income.

MFF has built such a large profit reserve that the business is able to deliver a sizeable and growing dividend each year.

It has increased its regular annual dividend each year since FY18. The FY26 annual dividend has been guided at 21 cents per share, translating into a grossed-up dividend yield of 6.1%, including franking credits. The FY26 payout is expected to grow by 23.5% compared to FY25.

MFF has increased its half-year payout by 1 cent per share every six months since October 2023 and I think it’s likely to continue that trend unless there’s a major share market crash (and I’d still expect slight growth if that happened). With the current growth trend, the FY27 payout year-over-year growth could be 19% to 25 cents per share.

I’m guessing the FY27 grossed-up dividend yield, at the time of writing, could be 7.3%, including franking credits. That’d be great dividend income, in my view.

Capital growth

MFF Capital share price growth is not certain, particularly in the short-term, because of potential declines in the share market and changes in what price investors are willing to pay relative to the MFF net tangible assets (NTA) per share.

But, if MFF’s portfolio (both existing and future positions) are able to deliver double-digit returns, then MFF can deliver rising payouts and long-term growth.

Past performance is not a guarantee of future returns, of course. But, at the time of writing, the MFF share price has risen close to 80% in the past five years (along with the dividend payments).

I’m hopeful that MFF can continue to deliver long-term capital growth and dividend growth for my portfolio.

The post Why I just invested $2,000 into this ASX share for dividend income appeared first on The Motley Fool Australia.

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• How to invest $5,000 for passive income in superannuation?

Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, American Express, Mastercard, Meta Platforms, and Visa. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Meta Platforms, Mff Capital Investments, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Artificial intelligence (AI) is one of the biggest investment themes in the world.

The challenge is working out how to invest in it.

Investors can try to pick individual winners, but that is not easy. AI is moving quickly, valuations can change fast, and today’s leader may not be tomorrow’s best performer.

That is why I think the Global X Artificial Intelligence ETF (ASX: GXAI) could be one of the easiest ways to get exposure to this theme.

What does this ASX ETF do?

This exchange traded-fund (ETF) is designed to invest in companies that could benefit from the development and use of artificial intelligence, as well as businesses providing the hardware used for AI and big data analysis. It tracks the Indxx Artificial Intelligence & Big Data Index before fees and expenses.

I like that because AI is not just one thing.

It includes semiconductors, software, data centres, cloud platforms, automation, robotics, cybersecurity, analytics, and digital services. Some companies will build the chips. Others will build the models, software tools, infrastructure, or commercial applications.

This includes SK Hynix, Intel, Broadcom, and Nvidia.

A diversified ETF gives investors a way to own a basket of potential beneficiaries rather than relying on one stock getting everything right.

Why I like it

A key reason I think this fund is that AI is still moving from promise to everyday use.

Businesses are using it to improve productivity, automate tasks, analyse data, support customers, and speed up decision-making. Consumers are also increasingly using AI tools in daily life.

Global X notes that AI is expanding beyond data centres into commercial applications across sectors such as agriculture and healthcare. It also says forecasts point to more than 729 million people using AI tools by 2030, up from 254 million in 2023.

That gives this ASX ETF a broad runway. It is not just a bet on chatbots. It is a bet that AI becomes more deeply embedded across the global economy.

Foolish takeaway

AI could change a lot of industries over the next decade, but investors do not need to know every winner today.

That’s where the GXAI ETF helps. It offers a simple way to back the theme while spreading money across multiple companies involved in AI and big data.

There will be volatility, and I would not expect the ride to be smooth. But for investors who believe AI will keep moving deeper into business, healthcare, manufacturing, software, and everyday life, this ASX ETF could be one of the easiest ways to invest in the opportunity.

The post Could this ASX ETF be the easiest way to invest in AI? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Broadcom, Intel, and Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

For investors who seek regular passive income, ASX infrastructure stock Dalrymple Bay Infrastructure Ltd (ASX: DBI) continues to stand out as one of the best dividend propositions on the ASX.

This week the company delivered a double dose of good news for shareholders.

Dalrymple Bay Infrastructure announced an 8.5% lift in distribution guidance and declared a Q1 FY26 distribution of 6.75 cents per stapled security.

The result is that income investors now have greater visibility over their income stream from this ASX infrastructure stock.

And they have reasons to cheer.

What Dalrymple Bay Infrastructure actually does

Dalrymple Bay Infrastructure owns and operates the Dalrymple Bay Coal Terminal, a critical piece of bulk export infrastructure located near Mackay in Queensland.

The terminal is one of the largest metallurgical coal export facilities in the world, with a throughput capacity of 84.2 million tonnes per annum.

Critically, the terminal operates under a regulated access regime, meaning its revenues are not directly exposed to coal prices but are instead set by the Queensland Competition Authority through a pricing framework that allows Dalrymple Bay Infrastructure to recover its costs and earn a regulated return on capital.

In other words, Dalrymple Bay Infrastructure benefits from highly visible cashflows, collecting fees for the use of its infrastructure regardless of commodity price movements.

The distribution update

Dalrymple Bay Infrastructure announced this week that distribution guidance for TY-26/27 has been set at 28.62 cents per stapled security, an 8.5% increase on the prior period.

That increase is supported by an 8.1% rise in the forecast Terminal Infrastructure Charge to approximately $4.02 per tonne for TY 26/27.

This reflects the regulated pricing framework that underpins Dalrymple Bay Infrastructure’s revenue.

The terminal remains fully contracted at 84.2 million tonnes per annum until 30 June 2028.

What’s more, evergreen renewal options provide additional visibility beyond that date.

The company pays distributions on a quarterly basis, in March, June, September, and December.

These distributions are structured as a combination of unfranked dividends and loan note repayments.

This has tax implications that investors should factor into their calculations.

The long-term income track record

Beyond this week’s announcement, the longer-term income track record at Dalrymple Bay Infrastructure is genuinely impressive for a stock of its size.

In FY2025, Dalrymple Bay Infrastructure reported Funds from Operations of $173.3 million, up 10.6%, and grew its annual distribution by nearly 12%.

Furthermore, Dalrymple Bay Infrastructure chairman David Hamill reaffirmed this week that the company targets annual distribution growth of 3% to 7% for the foreseeable future, a commitment that gives income investors a clear framework for modelling future returns.

Dalrymple Bay Infrastructure shares have risen 37% over the past twelve months.

Consequently, investors who bought a year ago have enjoyed strong capital growth on top of the income stream.

What the chairman said

Dalrymple Bay Infrastructure chairman David Hamill summarised the investment proposition clearly at this week’s AGM, stating:

With a low-risk business model and predictable cashflows, DBI is well positioned to deliver growing distributions and sustainable long-term value.

From an income investor’s perspective, this is highly reassuring.

Foolish takeaway

Dalrymple Bay Infrastructure may not a high-growth stock.

However, for investors who prioritise reliable, growing income over capital appreciation, the company offers a rare combination of quarterly distributions, an inflation-linked regulated revenue base, and a long-term growth target.

In a volatile market, that kind of predictability has real value for investors.

The post Why this ASX infrastructure stock could be a great passive income choice appeared first on The Motley Fool Australia.

More reading

• 7 ASX shares with strengthened buy ratings this week
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• Dalrymple Bay Infrastructure lifts distribution guidance and declares Q1 FY26 payout
• Buy, hold, sell: Civmec, LGI, Dalrymple Bay Infrastructure shares

Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investors don’t typically own Qantas Airways Ltd (ASX: QAN) shares for dividend income.

COVID-19 certainly led to some difficulties for the airline sector’s profitability and the Middle East conflict has thrown up a lot of volatility, so it’s no wonder the Qantas share price has noticeably dropped over the last few months.

But, it’s quite possible the Qantas dividend could be significantly stronger than some investors fear amid the jet fuel impacts.

Let’s look at how large the airline’s dividend is predicted to be in the next few years.

FY26

The 2026 financial year is almost over for Qantas, but we don’t know yet how large the upcoming final dividend will be. That’s likely to be revealed in August during reporting season.

Despite the negative impacts of the Middle East conflict, travel demand remained solid in the airline’s most recent update. This could be essential for the business to deliver a solid dividend payout in the 2026 financial year (and beyond).

According to the projection on CMC Invest, the business is forecast to pay an annual dividend per share of 39.6 cents per share. At the time of writing, that translates into a forecast grossed-up dividend yield of 6.6%, including franking credits.

FY27

Time will tell how long the effects of the Middle East continue for airlines. But, the longer the Strait of Hormuz is shut, the more severe and longer-term the impact could be, particularly if fuel supply and inventory don’t recover soon enough.

According to the projection on CMC Invest, the ASX travel share is forecast to pay an annual dividend per share of 40 cents. At the current Qantas share price, that translates into a grossed-up dividend yield of 6.7%, including franking credits, at the time of writing.

FY28

Owning Qantas shares in FY28 could see the business continue to deliver a rising annual dividend for investors.

The projection on CMC Invest suggests that the Qantas dividend per share could grow to 41.5 cents per share. At the time of writing, that translates into a grossed-up dividend yield of 6.9%, including franking credits.

While that’s not the biggest dividend yield on the ASX, it is certainly a fairly high yield with expectations that the payout can slowly but steadily grow in the next few years.

The Qantas share price may well be undervalued at today’s level, but short-term movements could be heavily impacted by Middle East developments. Therefore, other ASX shares could be even better picks for income.

The post Here’s the dividend forecast out to 2028 for Qantas shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) has long been one of the most popular ASX dividend shares with income investors.

That is easy to understand. CBA is Australia’s largest bank, has a huge mortgage book, a powerful retail banking franchise, and a long history of paying fully franked dividends to shareholders.

For many income investors, this combination has made the bank a core holding over the years. Its earnings are supported by millions of customers, a leading digital banking platform, and exposure to the Australian economy.

The CBA dividend

CBA’s dividend is by no means risk-free. Bank earnings can be influenced by credit growth, bad debts, funding costs, competition, interest rates, and regulatory requirements.

And when a share price runs hard, the dividend yield on offer can become less generous for new buyers.

So, how big could the CBA dividend be in 2027?

Consensus forecasts

Based on current market forecasts, CBA is expected to pay fully franked dividends of $5.15 per share in FY 2026.

After that, the market is expecting the banking giant to lift its dividend to $5.45 per share in FY 2027.

This means that, based on the latest CBA share price of $165.67, investors would be looking at a forward fully franked dividend yield of approximately 3.3% for FY 2027.

For comparison, the FY 2026 forecast dividend of $5.15 per share implies a yield of approximately 3.1%.

These yields are reasonable, particularly once franking credits are included. But they are not especially high compared to what investors have often been able to achieve from the big banks.

That reflects the strength of the CBA share price. When a dividend share trades at a premium valuation, the income return available to new investors naturally comes down.

Investors should also remember that these are only forecasts. If the economy weakens, bad debts rise, or margins come under pressure, CBA’s future dividends could differ from current expectations.

Should you buy CBA shares?

That depends largely on whether investors are prioritising quality, income, or valuation.

There is no question that CBA is a high-quality business. It has the strongest retail banking franchise in the country, a major technology advantage over many rivals, and a track record that has earned it a premium from the market.

The challenge is the price. Unfortunately for would-be buyers, none of the major brokers currently have buy ratings on CBA shares. That suggests many analysts believe the stock is already expensive at current levels.

One of those is Morgan Stanley. Last week, the broker put an underweight rating and $130.00 price target on CBA shares. This implies potential downside of more than 20% from where CBA ended last week.

So, while CBA remains one of the highest-quality dividend shares on the ASX, its forecast FY 2027 yield of approximately 3.3% may not be enough to offset valuation concerns for some investors.

The post How big will the CBA dividend be in 2027? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.