PLS Group Ltd (ASX: PLS) shares are a popular option for investors looking for exposure to the lithium industry.

However, if you are looking for outsized returns, Bell Potter thinks the ASX lithium stock in this article could be the one to buy.

Which ASX lithium stock?

The stock that Bell Potter is tipping to rocket is lithium miner Liontown Ltd (ASX: LTR).

The broker highlights that Liontown has announced plans to expand Kathleen Valley Spodumene Concentrate production capacity. It commented:

LTR has announced a positive Final Investment Decision to expand Kathleen Valley Spodumene Concentrate (5.4% Li2O) production capacity to around 780ktpa from FY30 (currently ~500ktpa). The expansion capital cost is estimated at $389m, including the $60-70m early works previously communicated in FY27 guidance. The expansion capital will be spent over FY27-29 with a step-change in production from FY30. 

At normalised expanded production rates, targeted unit costs are $840-920/t (US$610-670/t) SC and annual sustaining capital $90-100m. LTR also reiterated FY27 production and unit cost guidance and Kathleen Valley remains on track to reach 2.8Mtpa mining and processing by mid-2027. FY27 capex guidance is now $435-495m (previously $320-370m), which incorporates the expansion capital.

While this expansion comes at a cost, Bell Potter appears pleased with the plans. It said:

LTR’s expansion was within our capital cost estimate and is extremely efficient compared with the expansions of peer lithium producers. Wesfarmers (ASX: WES, not rated) recently announced Mt Holland expansion FID which adds 380ktpa SC capacity for gross capex of $1.3-1.4b. PLS Group’s (ASX: PLS, Hold TP$5.20/sh) P2000 expansion will also likely be highly capital intensive. LTR expect to fund the expansion from cash ($561m at 30 June 2026) and cash flows from operations. 

We have incorporated LTR’s expansion metrics, resulting in EPS changes: FY27 -8%; FY28 -18%; and FY29 -17%. The key adjustment to our model being a step-change in production from FY30 compared with our previous assumption of more incremental expansions over FY28-29.

Big potential returns

According to the note, Bell Potter has retained its buy rating on the ASX lithium stock with a trimmed price target of $1.70 (from $1.90).

Based on its current share price of 93 cents, this implies potential upside of more than 80% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

LTR’s EV is lagging the recent recovery in lithium markets and expected tight supplydemand fundamentals. When LTR was trading at its current EV in October 2025, SC6 prices were US$820/t and net debt was $274m. Since then, the Kathleen Valley underground ramp-up has been further de-risked and spot SC6 prices are above US$1,700/t. While we expect lithium markets will be volatile, market fundamentals remain strong. Over FY27, LTR will continue to ramp up and de-risk Kathleen Valley, a highly strategic asset in terms of scale, long project life and location in a tier-one mining jurisdiction

The post Forget PLS, this ASX lithium stock could rise 80% appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Liontown Resources approves $389m Kathleen Valley lithium expansion
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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 positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

October is here, which could make now a good time to look at where fresh money could go next.

ASX exchange traded funds (ETFs) can make that decision easier by providing exposure to a collection of companies in one trade.

Here are five that could be worth considering this month.

Betashares S&P/ASX Australian Technology ETF (ASX: ATEC)

The Betashares S&P/ASX Australian Technology ETF could be a good option for investors who want exposure to Australia’s technology sector.

This fund invests across locally listed businesses involved in software, online marketplaces, payments, data, and other digital services.

Australia does not have a technology sector on the same scale as the United States, but it has still produced some impressive global businesses like WiseTech Global Ltd (ASX: WTC).

That makes this fund a simple way to back local innovation without having to decide which individual technology company will perform best.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF remains one of the simplest ways for Australian investors to access the US market.

It owns 500 large American companies spanning technology, healthcare, financial services, industrials, consumer goods, and more. This includes Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Visa (NYSE: V).

What stands out is how many of these businesses operate well beyond the United States.

Their products and services are used around the world, giving investors exposure to global earnings through a single fund.

Betashares Global Quality Leaders ETF (ASX: QLTY)

The Betashares Global Quality Leaders ETF takes a more selective approach.

Rather than simply owning the largest companies, it focuses on businesses with characteristics such as strong profitability, healthy balance sheets, and relatively stable earnings.

That can be a very good thing. When economic conditions become more difficult, financially strong companies are often better placed to keep investing, protect margins, and take advantage of opportunities.

For investors who want international exposure with a quality tilt, this fund could be a strong option.

Betashares Global Cybersecurity ETF (ASX: HACK)

Another ASX ETF to consider is the Betashares Global Cybersecurity ETF. 

It gives investors exposure to companies protecting the digital economy. That includes businesses involved in network security, cloud protection, identity management, endpoint security, and threat detection.

Cybersecurity spending is becoming harder for companies to avoid. As businesses use more cloud software, artificial intelligence, online payments, and connected systems, the cost of a security failure can become enormous.

That could support demand for the companies held by this fund for many years.

Betashares Australian Quality ETF (ASX: AQLT)

Finally, the Betashares Australian Quality ETF could suit investors wanting local shares without simply following the biggest companies in the market.

The fund looks for Australian shares with stronger profitability, healthier balance sheets, and more stable earnings.

This means its portfolio is shaped by financial quality rather than company size alone.

That could be attractive for investors who want Australian exposure but would prefer something different from a traditional index fund dominated by banks and miners.

The post 5 excellent ASX ETFs to buy in October appeared first on The Motley Fool Australia.

More reading

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• How much must I invest in IVV ETF shares to earn a $1,000 passive income in 2027?
• Own US ETFs like IVV or NDQ? Here’s why your dividends are so low
• Invested in ASX IVV or other iShares ETFs? Here’s your next dividend
• 10 top ASX ETFs to watch in 2027

Motley Fool contributor James Mickleboro has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Global Cybersecurity ETF, Nvidia, Visa, WiseTech Global, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Apple, Nvidia, Visa, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Fortescue Ltd (ASX: FMG) shares have faced some strong headwinds over the past six months.

The shares are now just shy of a 52-week low, at $16.27 a piece. For the year-to-date they’re down around 27%.

The shares have tumbled around 21% since early April, at the time of writing, driven by a sharp drop off in iron ore prices over the same period.

According to Trading Economics, iron ore spiked to a two-year high of around US$111 per tonne in mid-May, before crashing to around US$94 per tonne in early August. Since then, it has risen slightly, but the metal is still around US$96 per tonne at the time of writing.

Ongoing conflict in the Middle East has also put downward pressure on shares, driven by concerns about rising costs, oil costs and supply, and general market uncertainty.

But it’s not all bad news.

Fortescue shares can offer investors more than just share price growth. The miner can also offer attractive passive income.

What makes Fortescue an attractive passive income player?

The miner generates a substantial cash flow from its large iron ore operations and it is able to return a significant portion of its profits to shareholders through regular dividends.

Fortescue is also actively diversifying its business beyond iron ore and into other markets, such as copper and renewable energy, which could reduce its reliance on iron ore over the long term and strengthen its bottom line.

But exactly what sort of passive income could you get from a $10,000 investment into Fortescue shares?

Let’s take a look.

How many Fortescue shares can I buy with $10,000?

Using the $16.27 share price at the time of writing, $10,000 will buy around 614 shares.

What dividend does the miner pay its shareholders?

The ASX iron ore miner pays its shareholders two fully-franked dividends every year, in March and September. The miner has a policy of returning 50% to 80% of its net profit after tax to shareholders as dividends.

Fortescue paid its most recent dividend to shareholders in late-September. The final 46 cent fully-franked dividend, combined with the 62 cent fully-franked dividend paid out in March, brings the miner’s total FY26 dividend to $1.08 per share. 

That translates to a dividend yield of around 6.6% at the time of writing.

Current forecasts suggest the company’s total dividend per share could fall to 86.4 cents in FY27, driven by lower iron ore prices. 

Based on the current share price, that translates to a forward dividend yield of around 5.3% for FY27.

What passive income can I earn off a $10,000 investment in Fortescue shares?

If the mining giant pays the forecasted 86.4 cent dividend in FY27, then a $10,000 investment (or 614 shares) will generate around $530 in passive income. 

The post If I invest $10,000 in Fortescue shares, how much passive income could I earn in FY27? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Fortescue, Westpac, CSL shares
• If I buy $6,000 of Fortescue shares, how much dividend income will I receive?
• How much do I need in ASX dividend shares to receive $15,000 passive income per year?
• Fortescue vs Wesfarmers: Which ASX share is better for passive income in 2026?
• What do brokers tip for Fortescue shares over the next 12 months?

Motley Fool contributor Samantha Menzies 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.