Stock Pick

  • 2 ASX lithium shares to buy with 38% to 120% upside

    A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.

    The lithium industry has been sold off recently in response to falling lithium prices.

    But it isn’t all doom and gloom.

    Even after factoring in weaker than expected prices, Bell Potter believes the two ASX lithium shares in this article could be seriously undervalued and positioned to deliver big returns.

    Here’s what the broker is recommending:

    Liontown Ltd (ASX: LTR)

    Speaking about its lithium price expectations, Bell Potter said:

    We have marked-to-market our lithium price estimates for the recent quarter and downgraded our near-term outlook, in line with recent price weakness. Spodumene Concentrate 6% Li2O CFR China (Fastmarkets) averaged US$2,107/t in the September 2026 quarter (BP est. US$2,500/t); spot prices are US$1,562/t. We now factor in SC6 prices of US$1,777/t in FY27 (-21% on prior estimate of US$2,250/t) and US$1,750/t in FY28 (-7% on prior estimate of US$1,875/t).

    While this has led to significant reductions in the broker’s earnings estimates, Liontown remains its preferred ASX lithium share to buy now. 

    As a result, it has reaffirmed its buy rating with a trimmed price target of $1.60 (from $1.70). Based on its current share price of 71.5 cents, this implies potential upside of approximately 120% over the next 12 months.

    Commenting on its buy recommendation, the broker said:

    LTR is our preferred lithium exposure. We expect a value re-rate as the Kathleen Valley ramp-up and expansion are progressively derisked over the forecast period. On recent share price weakness, LTR is trading on an EV last seen in mid-2025 when SC6 prices were around US$650/t and the company’s balance sheet was materially weaker. Spot prices are now over 2.5x this level and LTR is in a net cash position.

    Mineral Resources Ltd (ASX: MIN)

    Another ASX lithium share that could offer major upside is Mineral Resources.

    Once again, Bell Potter has made meaningful reductions in its earnings estimates to reflect weaker lithium prices, which has had a knock-on effect to its valuation.

    Nevertheless, the broker feels that Mineral Resources shares are very good value at current levels.

    According to the note, it has retained its buy rating with a trimmed price target of $63.00 (from $75.00). Based on its current share price of $45.81, this implies potential upside of approximately 38% for investors over the next 12 months. It also expects a modest 1% dividend yield in FY 2027.

    Commenting on Mineral Resources, Bell Potter said:

    Completion of the US$765m MIN-POSCO lithium transaction is expected in the current half, and will accelerate balance sheet deleveraging paired with strong cash flows from iron ore and lithium operations. MIN’s mining services platform delivers a stable earnings stream that is expected to expand with internal and third-party volume growth. The company is strongly positioned to execute its next phase of growth, having reinstated dividends.

    The post 2 ASX lithium shares to buy with 38% to 120% upside 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.

  • 2 top ASX blue-chip shares to buy according to experts

    Two colleagues looking at a graph and comparing share prices.

    Fund managers are always on the hunt for ASX blue-chip shares or smaller stocks that could produce good returns. Sometimes, those experts pick out a very compelling idea.

    We’re going to look at two picks from the portfolio of WAM Leaders Ltd (ASX: WLE) that look like strong ideas today.

    WAM Leaders is a listed investment company (LIC) that actively invests in Australian stocks at the larger end of the ASX’s market capitalisation list.

    Let’s look at the two ASX blue-chip shares that WAM Leaders recently highlighted.

    Ramsay Health Care Ltd (ASX: RHC)

    The fund manager highlighted that last month, the Ramsay Health Care share price rose by 8.6% as investors responded positively to improving momentum in its Australian hospitals business and the progress on the proposed separation of Ramsay Sante, its European operations.

    WAM Leaders said that the proposed separation of Ramsay Sante is expected to simplify the group and increase management’s focus on the core Australian business.

    The investment team said Ramsay’s operational improvement initiatives continue to gain traction, supported by growth in activity, improved operating theatre utilisation, and ongoing cost efficiencies.

    In September 2026, Ramsay Health Care also completed the acquisition of National Capital Private Hospital and submitted proposals to the Federal Government advocating for broader reform of the private hospital sector.

    The investment team maintains a constructive outlook towards Ramsay Health Care as improving operating performance supports further margin recovery and earnings growth.  

    Ansell Ltd (ASX: ANN)

    Ansell is the other ASX blue-chip share that WAM Leaders highlighted from the LIC portfolio.

    The investment team said that Ansell continued to “re-rate” – the price-earnings (P/E) ratio rose – last month. In September, the Ansell share price rose 11%.

    The company has risen significantly since its August FY26 results, which revealed earnings and FY27 guidance ahead of market expectations.

    WAM said healthcare was the key driver of this result, underpinned by strong growth in the Cleanroom business, although performance benefited in part from customer stocking and the timing of price increases.

    The investment team believe Ansell has managed cost headwinds effectively, including the impact of US tariffs and the Middle East conflict, through disciplined pricing and flexible commercial arrangements.

    In terms of the outlook, management remains focused on its core markets, customers, and brands, particularly in the US. WAM thinks this supports the potential for stronger organic growth and further margin improvement.

    The ASX blue-chip share’s balance sheet also remains in a strong position, according to WAM, providing flexibility for capital management and further investment.

    WAM concluded:               

    Ansell remains a core holding in the investment portfolio, with its improving business mix, robust cost management and balance sheet capacity expected to support the company’s earnings outlook.

    The post 2 top ASX blue-chip shares to buy according to experts 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 recommended Ansell. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • 2 ASX shares with dividend yields above 9%

    Man holding out $50 and $100 notes in his hands, symbolising ex dividend.

    The ASX dividend share space is full of a lot of interesting potential ideas for passive income, including ones with huge dividend yields.

    But, the higher the dividend yield goes, the more careful I am about the choices.

    Some dividend yields are just a mirage. A dividend cut may be coming because profit generation has been affected.

    So, I’m going to talk about two ASX dividend shares that have incredibly high yields but have also displayed reliability.

    Hearts and Minds Investments Ltd (ASX: HM1)

    Listed investment companies (LICs) can be a great option for dividends because they can turn investment returns from a portfolio into dividend payments to shareholders.

    Hearts and Minds is a very different type of LIC to most others. All of the investment professionals involved don’t charge any management fees.

    Each year, Hearts and Minds donates to Australian medical organisations to help fund research, which is a great initiative.

    In terms of the investments, there are two ways that picks are chosen for the portfolio. First, a majority of the portfolio is chosen by a permanent group of fund managers.

    Second, at an annual investment conference, the stock picks are chosen by a number of investment professionals for a minority of the portfolio.

    Overall, it’s a portfolio of best ideas from all of these experts. The portfolio is largely an international stock portfolio, which gives Australians a pleasing level of diversification.

    In terms of the dividend, the last two payments came to 19.5 cents per share. That’s a grossed-up dividend yield of 9.4%, including franking credits, at the time of writing.

    It has steadily increased its payout each year since 2023, which is pleasing amid rising interest rates.

    Shaver Shop Group Ltd (ASX: SSG)

    Shaver Shop is an intriguing ASX dividend share because of its position as an Australian and New Zealand specialty retailer of male and female personal grooming products. It wants to be the market leader in all things related to hair removal.

    There are currently 127 Shaver Shop stores across Australia and New Zealand, selling a wide range of quality brands. It has a number of exclusive products with suppliers.

    Its longer-term growth over the last several years has enabled the business to pay a steady and regularly growing dividend. Since it started paying a dividend in 2017, it has grown its payout most years (with no cuts), though that’s not guaranteed to continue forever.

    In FY26, it maintained its annual dividend per share of 10.3 cents following a 3% rise of sales to $225.1 million and operating profit (EBIT) growth of 1.3% to $22.8 million.

    At the time of writing, the FY26 payout translates into a grossed-up dividend yield of 11.4% (including franking credits), which is a huge yield, but the company trades on a relatively low price-earnings (P/E) ratio.

    If it can expand its store network, sell more exclusive brand products, grow its private brand, and sell more online, the ASX dividend share has a very promising future.

    The post 2 ASX shares with dividend yields above 9% 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 recommended Shaver Shop Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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