On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a disappointing session and dropped into the red. The benchmark index fell 0.75% to 8,660.9 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set for a better session on Friday despite a mixed night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 19 points or 0.2% higher this morning. On Wall Street, the Dow Jones was up 0.1%, but the S&P 500 fell 0.45% and the Nasdaq dropped 1.25%.

Oil prices charge higher

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS)could have a good finish to the week after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2.75% to US$90.71 a barrel and the Brent crude oil price is up 3.15% to US$103.36 a barrel. This follows reports that Iran is stepping up attacks on tankers.

Fortescue shares downgraded

The Fortescue Ltd (ASX: FMG) share price could be heading lower even after hitting a new 52-week low on Thursday. This morning, Morgans has downgraded the iron ore giant’s shares to a trim rating with a new price target of $15.40. It said: “We have long argued that investing material capital in near-term loss-making projects (magnetite and new energy) has not diversified Fortescue, and has instead left group earnings more exposed to the iron ore price. Magnetite adds more iron ore exposure but at a higher cost, while new energy investment, and US$0.9-1.3bn of FY27 decarbonisation spend, are funded from hematite cash flow. This dynamic is starting to show in the numbers. Fortescue flagged that net debt rose US$1.9bn in 1Q27, equal to the final dividend (US$1.0bn) plus quarterly capex (US$0.9bn), implying negative FCF for the quarter.”

Gold price rises

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a decent finish to the week after the gold price rose overnight. According to CNBC, the gold futures price is up 0.45% to US$4,159.6 an ounce. The gold price rebounded from a two-month low as investors weighed the Federal Reserve’s uncertain interest rate path.

Buy Mesoblast shares

Bell Potter thinks Mesoblast Ltd (ASX: MSB) shares are undervalued at current levels. This morning, the broker has retained its buy rating and $4.45 price target on the biotech company’s shares. It said: “MSB remains an enigma for most Australian long only institutions, despite having achieved multiple clinical trial successes, product approvals and revenues likely to exceed US$200m in FY27. We expect this information gap will close over the coming year as the company delivers on additional wins in the clinic.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Fortescue posts September 2026 quarterly earnings update
• NextDC, Generation Development, Fortescue shares hit 52-week low. Can they rebound?
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. 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.

Real estate investment trusts can be a good investment if you’re looking for stability and predictable income streams, but that’s not to say they’re without risk.

Two of the trusts I’m looking at today suffered major shocks over the past year, but they’ve had some good news over the past week, which has shored up investor confidence.

Let’s look at how they’re expected to perform on the dividend front going forward.

HealthCo Healthcare and Wellness REIT (ASX: HCW)

This real estate trust was caught up in the failure of private hospital operator Healthscope, which went into receivership in May, casting doubts over the income streams from hospitals owned by the trust.

The good news is that the Healthscope hospitals were able to continue operating, albeit split up among several new owners.

Healthco announced just this week that binding agreements had been finalised for the 10 final Healthscope hospitals owned by itself and the associated Unlisted Healthcare Fund, which led the company to reinstate its dividend payments.

Healthco is aiming to pay 6 cents per share in dividends over the full year, which equates to an 8% dividend yield at the share price of 74.75 cents at the time of writing.

Macquarie predicts this strong dividend stream will continue through FY29, when it will be 8.7%, and the broker also has a price target of $1.10 on Healthco shares, up from 88 cents as a result of the Healthscope resolution.

The broker said the company is trading at a steep discount to its $1.35 net tangible asset backing.

Arena REIT (ASX: ARF)

Arena also had some hiccups over the past year, with childcare operator Edge Early Learning Centre placed in administration, casting doubt on lease payments from that portfolio.

Arena said this week that the administrator of Edge had entered into an agreement with Goodstart Early Learning for the acquisition of 31 early learning centre businesses operated by Edge.

The proposed transaction includes services at 20 of the 27 centres owned by Arena and occupied by Edge, and Arena said it was still being paid rent for all 27 centres.

Arena shares have added almost 25% over the week to be changing hands for $2.48 at the time of writing.

Arena has previously guided to dividends per share of not less than 18 cents for FY27, which would constitute a dividend yield of 7.3%.

Centuria Office REIT (ASX: COF)

Centuria is forecasting dividends of 9 cents per share in FY27, which, at the time of writing, equates to a dividend yield of 10.8%.

The company’s portfolio includes 18 assets worth $1.8 billion, which had 91% occupancy last year.

COF Fund Manager Belinda Cheung said recently the focus for the current year would be on “maintaining high portfolio occupancy, improving portfolio weighted average lease expiry by addressing near-to medium-term expiries while curating a quality portfolio of modern, sustainable office assets”.  

The post 3 ASX real estate investment trusts paying a dividend yield of more than 7% appeared first on The Motley Fool Australia.

More reading

• Macquarie tips an 8% dividend yield and 46% share price gain for this stock
• Here are the top 10 ASX 200 shares today
• Arena REIT shares in focus as Edge Early Learning lease update issued
• Here are the top 10 ASX 200 shares today
• 6 ASX REITs just hit 52-week lows. Do any brokers say buy?

Motley Fool contributor Cameron England 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 Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX dividend stock Future Generation Australia Ltd (ASX: FGX) is one of my favourite ideas as a high-yield passive income option. On top of that, it’s providing growing dividend payments too. I think it’s a true dividend winner.

Future Generation Australia is a listed investment company (LIC) that invests quite differently from many other LICs.

A typical LIC will usually invest in a portfolio of ASX shares or international shares. This ASX dividend stock operates in a way that adds significant diversification and lower volatility.

Significant diversification

Future Generation Australia invests with a fund-of-funds strategy. It’s invested in the funds of 16 different fund managers, including L1 Group Ltd (ASX: L1G), Vinva, Firetrail, Smallco, Eley Griffiths, and TenCap.

By investing in these funds, the ASX dividend stock’s portfolio is less concentrated on the largest businesses on the ASX than the weightings of the S&P/ASX 300 Index (ASX: XKO).

In other words, Future Generation Australia is much more focused on smaller, faster-growing businesses that could help provide better returns over time.

Additionally, these fund managers don’t charge any management fees to Future Generation Australia for a special reason.

Philanthropic nature

All of the fund managers involved work on a pro bono basis so that the ASX dividend stock can donate 1% of its net assets to charities focused on young Australians.

Some of the current recipients of donations include Australian Children’s Music Foundation, Lighthouse, Mirabel Foundation, Giant Steps, and Raise.

Since inception, Future Generation Australia has donated $54.9 million and each year that figure becomes larger. The LIC is making an important contribution to Australia’s next generation, and I’m glad I’m a shareholder.

Great dividends

There are two reasons why I think this LIC is so appealing for dividends.

First, it offers a very compelling dividend yield. It has provided guidance that it will pay an annual dividend per share of 7.6 cents in FY26.

At the time of writing, that translates into a grossed-up dividend yield of 8.3%, including franking credits.

The second reason to really like the business is that its dividend is consistently growing. It has grown every year since 2015, providing more than a decade of consistent payout increases.

It expects to hike its annual dividend by 5.6% for FY26, which would mean the dividend will have grown by 90% since 2015.

$4,000 investment in the ASX dividend stock

I think now is a good time to invest with the FY26 half-year dividend to go ex-dividend (and be paid) in November.

At the time of writing, an investor can buy 3,065 Future Generation Australia shares with a $4,000 investment, which I think is a solid investment choice.

But it’s not the only ASX share I’d buy for returns right now.

The post $4,000 buys 3,065 shares in an impressively reliable ASX dividend stock appeared first on The Motley Fool Australia.

More reading

• How much do I need to retire on $85,000 a year at 50?
• 2 ASX shares with dividend yields above 8%
• How much do I need to retire on $75,000 a year at 45?
• $3,000 buys 2,325 shares in an impressively reliable ASX dividend stock
• 2 ASX passive income share ideas I’d use to generate $200 a month in 2027

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia and L1 Group. 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.