• If I invest $5,000 in Flight Centre shares, what passive income could I earn in FY27?

    Smiling woman taking a video through a plane window with her phone.

    Flight Centre Travel Group Ltd (ASX: FLT) shares closed the day around 1% lower on Wednesday, at $10.12 a piece.

    The shares have now fallen around 33% so far in 2026 and they’re roughly 15% lower than 12 months ago.

    The company has faced several headwinds as conflict in the Middle East continues to disrupt global travel plans. Its latest FY26 result was also weaker than expected, including a decline in underlying profit before tax which came in around 2% below market expectations. Its leisure division missed consensus by about 8%.

    The company also expects travel to be subdued through the first half of FY27 while the conflict still goes unresolved. Flight Centre expects corporate earnings to be more heavily weighted toward the second half, with first-half profit likely to come in below last year.

    But the good news about the ASX travel stock is it offers investors more than just capital gains. It also dishes out a steady passive income stream by way of divided payments.

    What makes Flight Centre shares an attractive passive income option?

    The business is large in scale, with a huge global reach across both corporate and leisure travel segments. 

    The company’s strong position in the global corporate travel market means it is able to earn a diverse but consistent earnings stream which it can then pass on to shareholders.

    How many Flight Centre shares can I buy with $5,000?

    Using the $10.12 share price at the time of writing, a $5,000 investment will buy approximately 494 shares.

    What dividend does the travel company pay its shareholders?

    Flight Centre has a history of paying fully franked dividends twice per year, dating back to 2004.

    But there was an exception during the Covid-19 pandemic years. Flight Centre did not pay dividends in 2020, 2021, or 2022 due to widespread lockdowns, closed international and domestic borders, and limited travel. 

    The company resumed its dividend payments in 2023.

    Flight Centre is expected to pay its shareholders a final FY26 fully-franked 30-cent dividend on Friday. This brings the FY26 total dividend to 42 cents per share.

    At the time of writing, that translates to a dividend yield of around 4.1% for the year.

    According to Commsec data, the travel company is expected to pay 48 cents per share in FY27. It is then forecasted to pay 52.3 cents per share in FY28, and 56.5 cents per share in FY29.

    Using the share price at the time of writing, that translates to forward dividend yields of around 4.7%, 5.2%, and 5.6% respectively.

    Ok, so what could I earn off a $5,000 investment in FY27?

    If Flight Centre pays shareholders the expected 48-cent fully-franked dividend in FY27, then a $5,000 investment (or 494 shares) would generate around $237.12 in FY27.

    Assuming the company then pays the 52.3 cent and 56.5 cent dividend forecasted for FY28 and FY29, investors could earn a passive income of around $258.36 and $279.11 off the same $5,000 investment.

    The post If I invest $5,000 in Flight Centre shares, what passive income could I earn in FY27? appeared first on The Motley Fool Australia.

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    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 recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Centuria Industrial REIT earnings: Leasing momentum and guidance reaffirmed

    House models with REIT written on one.

    The Centuria Industrial REIT (ASX: CIP) share price was in focus after the trust announced about 25,000sqm in new lease agreements for Q1 FY27, with an average re-leasing spread of 31%. Management also reaffirmed full-year FFO guidance and highlighted progress on sustainability and data centre initiatives.

    What did Centuria Industrial REIT report?

    • Approximately 25,000sqm of new leasing agreed in the first quarter of FY27
    • Average re-leasing spreads of 31% year to date
    • Divestment of 22 Hawkins Crescent, Bundamba for $34.25 million, matching book value
    • Continued progress on data centre strategy and renewable energy partnership
    • FY27 FFO guidance reaffirmed at 18.8-19.2 cpu (up to 5.5% above FY26)
    • Distribution guidance of 17.3 cpu (3% above FY26), to be paid quarterly

    What else do investors need to know?

    Centuria Industrial REIT’s recent leasing activity builds on strong FY26 volumes, giving it a good runway for further earnings growth. Around 17% of the portfolio remains under-rented, with more than half of leases expiring in the next three years currently below market rents.

    The sale of the Bundamba property to an owner-occupier removes a potential vacancy risk and supports the trust’s strategy of focusing on smaller, well-located industrial assets. About 40% of divestments since FY25 have been to owner-occupiers, helping support valuations in a challenging market.

    On the sustainability front, the trust’s partnership with Energy Bay could unlock additional income from rooftop solar and supports CIP’s target of zero scope 2 emissions by 2028. The trust also improved its GRESB benchmark score to 74.5 for 2026.

    What did Centuria Industrial REIT management say?

    Grant Nichols, CIP Fund Manager and Centuria Head of Listed Funds, said:

    During the quarter, CIP continued its active portfolio management, delivering leasing outcomes across c.25,000sqm of GLA, building on the near-record leasing volumes achieved in FY26. These strong leasing results contribute to strong NOI growth and tangible FFO growth across CIP’s portfolio.

    What’s next for Centuria Industrial REIT?

    Management is pressing ahead with its data centre strategy, with a pipeline of more than 250MW of potential power capacity and opportunities to convert suitable industrial assets over time. While major data centre developments are expected from FY28 and beyond, this dual-track approach offers promise for long-term value.

    Centuria reaffirmed its FY27 FFO and distribution guidance, and aims to capitalise on the significant embedded value across the portfolio through ongoing leasing, asset repositioning, and capital management.

    Centuria Industrial REIT share price snapshot

    Over the past 12 months, Centuria Industrial REIT shares have declined 19%, trailing the S&P/ASX 200 Index (ASX: XJO), which has fallen 3% over the same period.

    View Original Announcement

    The post Centuria Industrial REIT earnings: Leasing momentum and guidance reaffirmed appeared first on The Motley Fool Australia.

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    Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

  • Droneshield vs Xero: Which ASX tech stock is the better buy for a young growth investor?

    A group of young ASX investors sitting around a laptop with an older lady standing behind them explaining how investing works.

    Droneshield vs Xero shares: Which tech stock could deliver better growth for 30-somethings?

    It’s never been more exciting — or more challenging — to weigh up two standout tech names on the ASX. On one hand, we have Droneshield Ltd (ASX: DRO), a smaller but headline-grabbing defence-tech player. On the other is Xero Ltd (ASX: XRO), the established favourite in cloud-based accounting software. For 30-year-old investors eager to back the next wave of tech-driven growth, choosing between these two can feel like picking your favourite child! I’ll break down how their businesses, financials, valuations, and share price momentum stack up to help you decide which, if any, deserves a place in your growth portfolio.

    The case for Droneshield

    Droneshield operates at the cutting edge of counter-drone technology. Its AI-powered hardware and software aim to protect people and critical sites from malicious drone use — think government buildings, airports, and military bases. The company sells products like DroneGun and DroneSentry to customers in Australia, the US, and the UK. According to its most recent public description, Droneshield’s solutions are used by government, military, airports, prisons, and major venues.

    Looking at fundamentals, a few things stand out:

    • Droneshield’s current market cap sits at $1.42 billion, putting it at the smaller end of the tech sector, especially compared to major SaaS peers like Xero.
    • The P/E ratio clocks in at a whopping 433.75 — but with negative earnings per share (-$0.033), I’ll flag right up front that this P/E seems to be based on an adjusted or forward metric, as it’s mathematically inconsistent with the negative EPS.
    • No dividends are being paid, with a Dividend Yield of 0%. That fits its profile as an early-stage, growth-hungry tech company.

    For risk-tolerant investors hoping to back a fast-moving, innovative niche (especially one with plenty of defence sector tailwinds), Droneshield could tick the right boxes. However, its high valuation metrics reflect both its future promise and the market’s hefty expectations.

    The case for Xero

    Founded in New Zealand, Xero has become a powerhouse in online accounting software, focusing on small to medium businesses globally. It earns revenue through recurring monthly subscriptions and is widely recognised for its user-friendly, cloud-first approach. Xero’s leadership in cloud accounting means it enjoys sticky, high-margin revenue and an established brand.

    Drilling into the numbers:

    • Xero boasts a much larger market cap at $10.16 billion, reflecting its status as a dominant player in the SaaS landscape.
    • Its P/E ratio is 49.87. Like Droneshield, though, the EPS figure is negative (-$0.158), again highlighting some inconsistency between reported earnings and the valuation calculation — the P/E is almost certainly using an adjusted or forward measure.
    • Xero doesn’t pay a dividend (Dividend Yield: 0.00%). Its growth strategy leans into reinvestment rather than payouts.

    For investors seeking exposure to a global SaaS business with proven growth and a track record of disrupting traditional accounting, Xero remains a leading candidate.

    Valuation comparison

    Both tech stocks demand steep prices for their growth ambitions — but there’s still daylight between them when you look closer.

    Metric Droneshield Xero
    Market Cap $1.42 billion $10.16 billion
    P/E Ratio 433.75* 49.87*
    Dividend Yield 0.00% 0.00%
    Earnings per share (EPS) -0.033 -0.158
    Year to Date Return -50.3% -47.6%

    *Note: Both companies’ reported P/E ratios may be based on different earnings measures (e.g. underlying or forward earnings) than the negative EPS figures shown, which is why they may appear inconsistent.

    Neither stock currently pays a dividend. Both trade at extremely high earnings multiples, although given their negative EPS, it’s worth noting that these are ‘growth story’ valuations rather than stand-alone profitability.

    Recent share price momentum

    Let’s look at short-term price action up to 13 October 2026:

    • As of 13 Oct 2026, Droneshield closed at $1.53. Its year-to-date return is a harsh -50.3%.
    • Xero, on the same date, last traded at $59.71 (most recent prior day). Its year-to-date return stands at -47.6%.
    • Both have suffered steep falls in 2026, each losing close to half their value in the year to date.
    • Neither company is showing positive short-term momentum — recent trading has been volatile and predominantly negative.

    Which is the better buy?

    For a 30-year-old ASX investor chasing growth, picking between Droneshield and Xero right now is tough — both have huge addressable markets, disruptive tech, and (frankly) battered share prices after a tough 2026.

    If I absolutely had to choose for a multi-year growth seat, my pick would be Xero. Here’s why: Xero enjoys an entrenched global customer base and a proven SaaS model, while Droneshield, though exciting and operating in a hot defence-tech space, is much smaller and still unprofitable. Both share prices have been under the pump lately, but Xero’s scale and recurring revenue stream, plus its industry leadership in cloud accounting, give me greater confidence it can weather volatile periods and recapture long-term growth. Droneshield could certainly deliver massive returns if everything goes right — but for someone in their thirties looking to back growth with a bit less risk, I’d lean toward the blue-chip disruptor over the small-cap spec play.

    The post Droneshield vs Xero: Which ASX tech stock is the better buy for a young growth investor? appeared first on The Motley Fool Australia.

    Wondering where to invest $1,000 right now?

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    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

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    * Returns as of 6 March 2025

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    Motley Fool contributor Laura Stewart 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 DroneShield and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.