On Monday, the S&P/ASX 200 Index (ASX: XJO) had a strong start to the week. The benchmark index rose 0.75% to 8,783.2 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 to rise

The Australian share market looks set to edge higher on Tuesday following a mixed start to the week in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 9 points or 0.1% higher. On Wall Street, the Dow Jones rose 0.4%, but the S&P 500 edged 0.05% lower and the Nasdaq dropped 0.45%.

Buy GenusPlus shares

Bell Potter thinks GenusPlus Group Ltd (ASX: GNP) shares could offer major upside potential. This morning, in response to news of an acquisition, the broker has retained its buy rating and $12.80 price target on the infrastructure services provider’s shares. It said: “We view the UCG deal as strategic. The UCG acquisition will fast-track GNP’s multimarket growth strategy across the Communications, Transmission, Wind, Rail and Gas sectors. The UCG acquisition also provides a platform to extend GNP’s existing construction and maintenance capabilities in New Zealand.”

Oil prices rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good day after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.5% to US$93.21 a barrel and the Brent crude oil price is up 1.25% to US$106.02 a barrel. Concerns over attacks on Saudi Arabian airports were partly to blame for the rise.

Dividends being paid

Today is payday for the shareholders of a number of ASX 200 shares. This includes steel manufacturer BlueScope Steel Ltd (ASX: BSL), investment platform provider Hub24 Ltd (ASX: HUB), and gold miner Ramelius Resources Ltd (ASX: RMS). BlueScope will be paying its shareholders a 135 cents per share dividend.

Gold price falls

ASX 200 gold shares Genesis Minerals Ltd (ASX: GMD) and Capricorn Metals Ltd (ASX: CMM) could have a subdued session on Tuesday after the gold price edged lower overnight. According to CNBC, the gold futures price is down 0.55% to US$4,193.6 an ounce. A stronger US dollar and inflation concerns weighed on the gold price.

The post 5 things to watch on the ASX 200 on Tuesday 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 positions in and has recommended GenusPlus Group. The Motley Fool Australia has recommended GenusPlus Group and Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

AGL Energy Ltd (ASX: AGL) and Origin Energy Ltd (ASX: ORG) have both had a pretty lacklustre past 12 months from a share price perspective, but you could argue they earn their place in a long-term portfolio given their decent dividend yields.

Macquarie has just released new research reports on each and has a slight preference for one over the other.

Let’s start by having a look at what they’re saying about AGL Energy shares, which they have an underperform rating on.

Challenging energy markets

The broker said in its new research note that the fundamentals for AGL remain challenging, with negligible growth in demand across the national electricity market, noting that AGL’s coal fleet generation was down 12% in New South Wales and 15% in Victoria.

Macquarie is predicting power price declines in FY27 and said, “Without volatility, profitability for not only the assets like batteries but also gas plants will come under pressure as arbitrage and trading revenue shrinks”.

Macquarie added:

AGL remains in an FY28 downgrade cycle. Recent improvements in power prices may moderate the pace, but it remains material. Volatility remains low due to battery penetration and weather conditions, and without it, battery earnings will also be lower.

Macquarie has a 12-month price target of $8.10 on AGL shares compared to $8.51 at the time of writing.

They are predicting a 5.8% dividend yield this financial year, then dropping to 3.6%, then 2.8%.

AGL is valued at $5.7 billion.

Origin the better of the two

Meanwhile, the broker has a neutral rating on Origin Energy shares.

They said the first quarter of FY27 appeared to have been a strong one for LNG production from the APLNG plant in Queensland and added that strength in the oil price was also a tailwind.

They said:

Oil price remains a positive for ORG … with the result being FY27 average should be ~US$100/bbl which translates to a revenue outcome nearly as good as the peak year of FY23. The strength of the cashflow in FY27 we think should be able support a sustained increase in ORG dividend to at least $0.62 per share.

Macquarie said Origin would be impacted by the higher cost of coal, while gas might also be a surprise source of weakness.

They added:

APLNG is providing ample cashflow, electricity market looking a little better, but this is framed within the context of a weak FY28. Upside is El Niño weather pattern creates volatility, re-igniting cap prices and gas/battery earnings. Risk remains that the oversupply in electricity market prevails, lasting until FY30.

Macquarie has a price target of $11.10 on Origin shares compared with $11.26 at the time of writing.

Macquarie is predicting a 5.7% dividend yield this financial year, which they expect to moderate to 5.5% next year.

Origin is valued at $19.6 billion.

The post Which does Macquarie prefer out of AGL and Origin? appeared first on The Motley Fool Australia.

More reading

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• How much superannuation do I need to generate $100,000 per year in passive income?
• AGL, Cochlear, WiseTech shares: Buy, hold, sell
• How much passive income can I earn from a $950,000 superannuation balance?
• Here are the top 10 ASX 200 shares today

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.

Owners of Westpac Banking Corp (ASX: WBC) shares normally receive a pleasing level of dividend income each year. 2027 could be another rewarding year for the ASX bank share.

The largest Australian banks usually have generous dividend payout ratios, partly because they don’t have many places to invest profit generated at a strong return. Plus, plenty of individual investors are looking for passive income (including the franking credits).

Let’s take a look at what the ASX bank share is forecast to pay in 2027.

Dividend forecast for Westpac shares

The company’s dividend has grown in most of the years this decade and I’m sure shareholders are hoping for another increase in 2026.

The ASX bank share is facing economic volatility amid an elevated cost-of-living and higher interest rates. It’ll be interesting to see how Westpac’s financials handle the current situation.

We haven’t seen the 2026 financial year annual dividend yet because the ASX bank share’s FY26 only just finished at the end of September 2026, so we’ll find out what those numbers are in the next few weeks when it reports.

According to the projection on CMC Invest, owners of Westpac shares are forecast to see a $1.55 dividend per share related to FY26.

Pleasingly, analysts are expecting a larger dividend for investors in the 2027 financial year. According to the forecast on CMC Invest, the business is forecast to grow its annual dividend by 1.6% to $1.575.

At the time of writing, that translates into a dividend yield of 4.7% excluding franking credits and 6.7% including franking credits. That’s a solid dividend yield compared to the S&P/ASX 300 Index (ASX: XKO), which has a dividend yield of just over 3% (excluding franking credits).

If someone were to invest $6,000 in Westpac shares, they would unlock sizeable passive income, according to the projections.

At the time of writing, an investor would be able to buy 177 Westpac shares (with a little bit of cash left).

Excluding franking credits, 177 shares of the bank could deliver $278.78 of dividend cash. Including franking credits, it could be $398.25 of grossed-up dividend income.

Is this a good time to invest in Westpac shares?

According to CMC Invest, there have been eight ratings on the business. Of those ratings, one was a buy, two were a hold and five ratings were a sell. The average price target of those eight analysts is $34.23, suggesting a rise of around 1% over the next year (at the time of writing).

Therefore, it’s not cheap and may not deliver market-beating returns. But, it could still deliver solid passive income.

The post If I buy $6,000 of Westpac shares, how much dividend income will I receive in 2027? appeared first on The Motley Fool Australia.

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• If I invest $10,000 in ANZ shares, what passive income could I receive in FY27?

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 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.