The S&P/ASX 200 Index (ASX: XJO) is back in the green on Monday as investors take a slightly calmer view of the Middle East.

At the time of writing, the benchmark index is up 0.22% to 8,783 points.

It was a stronger move earlier in the day, with the ASX 200 rising as high as 8,822 points before giving back a large part of its morning gain.

The gains came after reports that the United States and Iran have agreed to pause recent attacks and return to talks over the Strait of Hormuz.

Oil prices are still higher, with crude trading around US$70.03 a barrel, up 1.16%.

US futures are also pointing higher, giving local investors a better lead after a choppy finish to last week.

Here are some of the ASX 200 shares helping keep the market in positive territory today.

Banks and healthcare shares lift the index

The big four banks are doing a fair bit of the work today.

Commonwealth Bank of Australia (ASX: CBA) shares are up 0.73% to $163.21, while National Australia Bank Ltd (ASX: NAB) shares are up 0.88% to $37.84.

Westpac Banking Corp (ASX: WBC) shares are also higher, rising 0.34% to $35.26, and ANZ Group Holdings Ltd (ASX: ANZ) shares are up 0.03% to $35.05.

Healthcare shares are giving the market another boost after a rough patch for parts of the sector.

CSL Ltd (ASX: CSL) shares are up 1.23% to $116.28, while Pro Medicus Ltd (ASX: PME) shares are 2.99% higher at $194.53.

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) shares are also trading higher, rising 1.60% to $32.075.

Aristocrat Leisure Ltd (ASX: ALL) is another large-cap name helping the index, with its shares up 3.19% to $60.56.

But there are still plenty of losers

Even with the ASX 200 higher, there are still some large-cap shares holding it back.

Transurban Group (ASX: TCL) shares are down 4.55% to $14.69, making it one of the bigger drags on the index today.

BHP Group Ltd (ASX: BHP) shares are down 0.09% to $58.94, while Rio Tinto Ltd (ASX: RIO) shares are down 1.20% to $171.55.

Northern Star Resources Ltd (ASX: NST) shares are also under pressure, falling 1.89% to $20.20.

On the other hand, Fortescue Ltd (ASX: FMG) shares are moving the other way, rising 1% to $19.26.

What investors are watching now

Today’s move is a welcome lift for the ASX 200, but the index is still up just 0.8% since the start of 2026.

The next test is whether the ASX 200 can hold onto its gain into the close.

If the banks and healthcare stocks keep pushing higher, the market should have a better chance of finishing in positive territory.

The post ASX 200 rebounds as Middle East fears cool appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 CSL and Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended BHP Group, CSL, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

My portfolio is heavily weighted towards ASX dividend shares that can provide a mixture of dividends and capital growth. I like both types of returns because I can become wealthier over time through a rising portfolio value, while experiencing larger dividend payouts and benefiting my bank account. That cash can be put towards more shares or life expenses.

The three ASX dividend shares I’m going to highlight are ones that have a track record of growing their payouts and I expect further growth in the coming years.

MFF Capital Investments Ltd (ASX: MFF)

MFF Capital is best known as a listed investment company (LIC), though it recently acquired a funds management business, giving it an operational element.

The ASX dividend share has a portfolio focused on strong, global businesses with great competitive advantages and have the potential to grow profit in the long-term. Its biggest positions are currently Alphabet, Amazon, Mastercard and Visa.

Its high-quality portfolio picks have led to the MFF portfolio delivering strong investment returns over the last five, 10 and 15 years. This has allowed the business to build an impressive profit reserve, allowing it to pay large and growing dividends.

The company’s regular annual dividend has increased each year since FY18 and it expects to grow its annual dividend in FY26 by 23.5% to 21 cents per share. That’s a current grossed-up dividend yield of 5.9%, including franking credits.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is another impressive investment business that has been listed for more than 120 years.

The investment house has a portfolio spread across a variety of assets that are largely uncorrelated and can provide Soul Patts with defensive and diversified cash flow, which is what funds Soul Patts’ impressive and growing dividends.

The ASX dividend share’s portfolio includes investments across energy, resources, property, swimming schools, agriculture, water entitlements, electrification, credit, financial services, building products and plenty more.

How good are the dividends? It’s the reliability and consistent growth that attracted to me. Its regular annul payout has been hiked every year since 1998. That’s the longest record of consecutive dividend growth on the ASX.

It currently has a grossed-up dividend yield of 3.4%, including franking credits.

L1 Long Short Fund Ltd (ASX: LSF)

This business is another LIC in my portfolio. The ASX dividend share invests quite differently compared to a typical fund manager. It invests in both ASX shares and international shares, through both long-term investing and short-selling.

The ASX dividend share likes to invest in businesses with low price/earnings (P/E) ratios and still deliver good earnings growth. I think the investment team have shown a particular skill at investing at the right times in cyclical and commodity-based businesses.

Past performance is not a guarantee of future returns of course, but the L1 Long Short Fund portfolio return has helped it regularly increase its dividend over the last few years. The portfolio has returned an average of 17% per year over the last five years, though that’s not guaranteed to continue for the next five years.

It’s now paying a quarterly dividend and increasing that payment every quarter. I expect the next four quarterly dividends will come to a grossed-up dividend yield of 4.9%, including franking credits.

I highly rate these three ASX dividend shares and I expect to continue buying more shares over them in the coming years.

The post 3 of the best ASX dividend shares I own for passive income appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund, Mff Capital Investments, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Mastercard, Visa, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Mff Capital Investments and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Karoon Energy Ltd (ASX: KAR) shares are getting some relief on Monday after a painful stretch for the ASX energy stock.

The Karoon share price is up 8.33% to $1.365 after the company updated investors on its Bauna operations in Brazil.

The bounce comes after a rough two weeks. Karoon shares have fallen more than 30% since the company lowered its CY26 production guidance earlier this month, which put pressure on investor confidence.

With Karoon’s market capitalisation sitting just under $1 billion, today’s update appears to have given investors something more positive to focus on.

Karoon restarts key Bauna well

According to the release, production has been restored from the SPS-92 well at Bauna after Karoon replaced its electrical submersible pump.

Karoon said SPS-92 is currently producing around 8,600 barrels of oil per day.

This means that Bauna production has now lifted to roughly 20,500 barrels per day before natural decline.

Karoon could get another lift from PRA-2 as well. Management expects that well to add around 1,000 to 2,000 barrels per day once it is brought back online, with umbilical work already underway.

SPS-92 has been causing problems since August last year, when a partial pump failure cut production by around 4,500 barrels per day.

While getting it back online doesn’t fix everything, it does ease some of the pressure on Karoon’s recent production outlook.

Higher production, higher costs

Karoon said the final cost of the SPS-92 intervention came in higher than first expected.

This was due to extra rig time, wellbore debris, and equipment-related downtime during the work.

As a result, the company has reviewed its 2026 investment expenditure guidance.

Bauna capex is now expected to be between US$89 million and US$97 million. This is up from the previous guidance range of US$61 million to US$74 million.

Total 2026 capex guidance has also increased to between US$178 million and US$202 million. Previously, Karoon was expecting US$150 million to US$183 million.

Management said the spending is expected to support the long-term value of Bauna and stronger operating cash flow in the second-half of 2026.

Can the rebound continue?

Karoon also gave investors another reason to take a second look.

The company announced that it plans to begin a further on-market share buyback from 1 July 2026.

This follows the recent completion of the second phase of its US$75 million buyback program, which was announced last year.

Management said the next phase will be carried out at a measured pace, with the company taking into account market conditions, capital requirements, and future growth projects.

The buyback should provide support after the recent sell-off, with Karoon saying its shares remain significantly undervalued at current levels.

The post Why this ASX energy stock is jumping 8% after a brutal sell-off appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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.