ASX small caps can offer strong growth prospects to an investor’s portfolio. 

With global headwinds impacting the ASX 200 this year, it could be an ideal time to allocate capital towards high upside stocks. 

The team at Bell Potter have identified two in particular that fit this criteria. 

Let’s see what the broker is projecting. 

Orthocell Ltd (ASX: OCC)

Orthocell is an Australian-based, commercial-stage regenerative medicine company developing and commercialising collagen-based medical devices and autologous cell therapies for the repair and regeneration of bone and soft tissue.

The company leverages their proprietary collagen processing and manufacturing platform to produce implantable biomaterials designed to support tissue regeneration and functional recovery.

As is commonplace with small-cap shares, it has experienced some volatility in 2026. 

However, Bell Potter has a speculative buy rating on this ASX small-cap, suggesting it could rise by 40% in the next year. 

In a note released yesterday, Bell Potter said June-quarter revenue increased 19% QoQ to a record $3.8m (+36% pcp), reflecting continued strength across the established market.

The broker said the US rollout of Remplir is making good progress. 

The product is now available to around half of the US population through expanded distributor coverage. 

Hospital access is also growing, with approvals in 151 hospitals and more applications still under review. 

In simple terms, more hospitals are buying the company’s nerve repair product Remplir, and more surgeons have started using it. 

However, sales growth has trailed hospital access growth, suggesting many surgeons are still trialling the product and are yet to commit.

Based on this guidance, Bell Potter has a 12-month price target of $1.19 on this ASX small-cap, indicating a 40% upside from current levels. 

Sky Metals Ltd (ASX: SKY)

Another ASX small-cap drawing a speculative buy rating is Sky Metals. 

Sky Metals engages in the acquisition, exploration, and development of mineral resources.

Its share price has rocketed 183% higher year to date, and Bell Potter believes the growth can continue. 

Bell Potter noted that Sky Metals has significantly increased the estimated size of its Tallebung project in New South Wales. 

The updated resource now contains much more tin and tungsten than previously estimated. The company has also identified its first silver resource. 

Much of the resource is now classified with higher confidence, making it more likely to be converted into mineable reserves.

Based on this guidance, the broker has placed a 12-month price target of $0.350 on this ASX small-cap, indicating 37% upside from current levels. 

The post 2 ASX small-caps with 40% upside appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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 recommended Orthocell. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many investors approaching retirement or living off superannuation will be looking for ASX shares that offer strong dividends. 

High dividend stocks can play an important role for investors living off their superannuation. They provide a regular income stream that can help fund retirement expenses without needing to sell down investments. 

This can offer greater stability and reduce the need to sell assets during periods of market weakness.

In Australia, dividend-paying shares can also be attractive due to the benefit of franking credits, which may reduce the tax payable on dividend income and improve after-tax returns, particularly for retirees in a low-tax environment.

The highest dividend yield isn’t always the best bet

High dividend yields can be attractive for retirees seeking income. However, an excessively high yield can sometimes be a warning sign rather than an opportunity. 

A dividend yield rises when a company’s share price falls. This may indicate investors are concerned about weaker earnings, financial stress or the sustainability of future dividend payments. 

Companies offering unusually high yields may be forced to reduce dividends if profits decline, potentially leading to both a loss of income and capital value. 

For retirees relying on their portfolio for regular cash flow, it is important to focus on the quality and consistency of dividends rather than simply chasing the highest yields. 

A sustainable dividend supported by strong cash flows and a healthy balance sheet is generally more valuable than a temporarily elevated yield that may not be maintained.

With that in mind, here are three consistent dividend stocks to consider. 

Wesfarmers Ltd (ASX: WES)

Wesfarmers has delivered a long history of shareholder returns through businesses such as Bunnings Group and other essential retail operations. 

Its diversified earnings base and strong cash generation have supported a relatively dependable dividend stream over time. 

This year, it has also enjoyed considerable capital gains, seeing its share price rise 11% year to date. 

It is currently expected to pay a forward dividend yield of around 2.6% in FY27.

Woolworths Group Ltd (ASX: WOW)

Another great option for retirees looking for consistent passive income is Woolworths Group. 

Woolworths Group is a popular income stock thanks to its defensive supermarket business. It generates reliable cash flow from everyday consumer spending. 

While its dividend yield is lower than many banks, it has a strong history of paying consistent, largely fully franked dividends, alongside the potential for long-term capital growth.

It is expected to offer a fully franked dividend yield of 2.8% in FY27. 

Westpac Banking Corp (ASX: WBC)

Westpac is a popular dividend stock due to its strong position as one of Australia’s major banks and its history of paying attractive dividends. 

Its large customer base, recurring lending income and solid profitability have supported consistent shareholder returns over time. 

While bank earnings can fluctuate with interest rates and the economy, Westpac remains a core income holding for many Australian investors seeking reliable dividends and the potential for long-term capital growth.

It currently offers a generous dividend yield above 4%.

The post 3 of the best ASX dividend stocks to supplement your superannuation appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.

The ASX share market is a wonderful place to find investments that can offer huge passive income. There are a few businesses that offer a dividend yield of more than 10%, which I think can be very compelling.

But there are only a few businesses I’d consider as contenders for buys, given that high dividend yields aren’t necessarily reliable for payouts – some may be in danger of giving investors a significant dividend reduction.

I think the below two ideas can provide investors with a very good dividend yield for the foreseeable future.

Hearts and Minds Investments Ltd (ASX: HM1)

This is a listed investment company (LIC) that has a number of fund managers and investment professionals who contribute investment picks for free. Some of the fund managers are core managers who provide continuing portfolio picks, while a minority of the portfolio is based on picks at an annual investment conference.

The portfolio is full of international shares, so Australian investors are getting diversification with this investment, while also getting an incredible dividend yield.

Hearts and Minds has indicated an intention to increase its half-yearly dividend by 0.5 cents per share. That means the business could pay an annual dividend per share of 20.5 cents in the next 12 months. At the time of writing, that translates into a grossed-up dividend yield of 9.8%, including franking credits.

Its portfolio has returned an average of 10.25% per annum since inception in November 2018 – that’s high enough to pay a good dividend.  

Centuria Office REIT (ASX: COF)

Another ASX share that could be undervalued is this real estate investment trust (REIT) which owns office buildings across a number of markets, giving it diversification.

The business is certainly facing headwinds like work from home and a slowing economy, but it’s priced too cheaply in my opinion considering how much rental income it’s generating.

The ASX share expects to generate funds from operations (FFO) – net rental profit of 11.1 cents per security in FY26 and pay a distribution per security of 10.1 cents. That means it’s trading at just 8x its FY26’s rental profit with a FY26 distribution yield of 11.5%.

The fund manager of Centuria Office REIT, Belinda Cheung, explained the positive long-term outlook for the ASX share after its FY26 third-quarter update:               

Looking ahead, we maintain an optimistic outlook for the Australia metropolitan office markets across the medium term. Diminishing forecast supply has been further impacted by rising rates and inflation and is expected to amplify the significant disconnect between replacement costs and current valuations. The widening gap of economic rents to prevailing market rents not only prohibits feasible office development but provides ample room for current market rents to continue to grow and underpin future valuations, reinforcing the relative value of existing high-quality, well-located office assets.

The post 2 ASX shares with dividend yields above 9.5% appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Hearts And Minds Investments. 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.