Broking house Morgans has released new research reports on two companies, which it says will increase in value by almost a third over the next 12 months.

Let’s see who they like.

Nufarm Ltd (ASX: NUF)

Morgans writes in its research note on the food sector that conditions are ripening for soft commodities to perform well, with two “genuine supply shocks” hitting the sector.

The broker said world food prices rose for a third straight month in August, heading close to a four-year high, but still 17% below the March 2022 peak.

Part of the reason includes Russia and Ukraine attacking each other’s Black Sea ports, with Russian exports at their lowest since 2016, and Ukraine’s at a 16-year low, Morgans said.

Also impacting prices were drought conditions which had affected wheat output globally, “and there appears near-certain odds on El Niño running through to February 2027”.

Morgans said Nufarm was their top pick in the agricultural sector.

They added:

The new management team continues to turn the business around and are ungearing the balance sheet, with the focus on quality of earnings. 1H26 came in at the upper end of guidance, setting up strong FY26 EBITDA growth on normal seasonal conditions. Investor Days on 28-29 September are the next catalyst.

Morgans has a $4.15 price target on Nufarm shares compared to $3.16 at the time of writing.

If achieved, this would be a 31.3% return. Nufarm is valued at $1.25 billion.

SGH Ltd (ASX: SGH)

Morgans has actually downgraded its price target for SGH shares, but is still predicting a 31.3% return.

The downgrade has come about as a result of SGH’s 30% shareholding in Beach Energy Ltd (ASX: BPT) and negative earnings revisions from Beach in a report in early August.

Morgans said:

SGH is an industrial compounder with a decade-long record of EBIT growth, underpinned by three market-leading businesses exposed to durable Australian thematics: 1) mining production (WesTrac), 2) infrastructure/construction (Boral, Coates), and 3) Transitional Energy. The key investment thesis rests on continued margin improvement at Boral, operating leverage across a largely fixed-cost industrial asset base, and disciplined capital recycling at a 15% return on capital employed hurdle.

Morgans said that with the balance sheet deleveraging, debt capacity was rebuilding for another potential acquisition.

Morgans has a buy rating on SGH shares with a price target of $48, down from $50.

SGH is valued at $14.9 billion. Beach Energy shares are currently 25.2% lower over a 12-month period.

The post Morgans tips both of these ASX shares to rise 31% appeared first on The Motley Fool Australia.

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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 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.

There are plenty of ASX dividend shares that could help investors build a passive income stream.

But which ones could be worth buying now?

Let’s take a look at three shares that could offer attractive income in the coming years.

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to consider is Accent Group.

It is a major footwear and apparel retailer with brands including The Athlete’s Foot, Platypus, Hype DC, and Stylerunner. It also has exposure to well-known international footwear brands such as Skechers.

Accent has been battling difficult retail conditions, which have weighed heavily on earnings and its share price.

However, the company has a strong position in the Australian footwear market and a large store network that could benefit when consumer spending improves.

As a result, income investors may want to consider buying Accent shares while sentiment is weak and potentially benefit from a recovery in earnings and dividends.

Morgans is expecting a fully franked 4.9 cents per share dividend in FY 2027. Based on its current share price of 69 cents, this equates to a dividend yield of 7.1%.

Cedar Woods Properties Ltd (ASX: CWP)

Another ASX dividend share that could be worth considering is Cedar Woods Properties.

The property developer has a portfolio of residential communities, apartments, townhouses, and commercial developments across Australia.

What makes Cedar Woods attractive is its exposure to the country’s ongoing need for housing.

Population growth, housing shortages, and demand for well-located communities could support the company’s development pipeline for many years.

Cedar Woods also has a long history of returning profits to shareholders through dividends.

The team at Bell Potter expects this trend to continue. It has forecast a fully franked FY 2027 dividend of 44 cents per share. Based on its current share price of $6.49, this would mean a forward dividend yield of approximately 6.8%.

Woolworths Group Ltd (ASX: WOW)

A final ASX dividend share to look at is Woolworths.

The supermarket giant offers a different type of income opportunity to the first two companies.

Its yield is lower, but its earnings are supported by one of the most defensive industries in the country.

Australians need to buy groceries regardless of what is happening with interest rates, employment, or consumer confidence. This gives Woolworths a relatively dependable revenue base.

For investors seeking passive income from a mature, cash-generating business, Woolworths could be a strong option.

Morgans is forecasting a fully franked dividend of $1.08 per share in FY 2027. This represents a dividend yield of approximately 2.8%.

The post Why these ASX dividend shares could be buys for passive income appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Accent Group and Woolworths Group. 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 Accent Group and Cedar Woods Properties. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I like to make regular, smaller investments in my portfolio to build up positions in ASX dividend shares that I’m bullish about. MFF Capital Investments Ltd (ASX: MFF) was the latest investment I made, with a $1,100 purchase.

I invested last week, when the price was a bit lower. But, when I talk about the dividend yield below, I’ll look at the yield at the time of writing.

I’m buying ASX dividend shares like MFF because of the investment exposure they provide as well as the compelling dividend payouts. One day, I’d love for my dividend income to be able to cover the core spending essentials in my life.

With that goal in mind, MFF looks like a leading contender for that purpose.

Strong dividend income

Let’s start with the passive income payments.

Over the past five years, the investment business has grown its six-monthly dividends at a compound annual growth rate (CAGR) of 26%.

It intends to grow its FY27 first-half dividend by another 20% to 12 cents per share and I expect the FY27 final dividend will be increased by 18% to 13 cents per share.

If the ASX dividend share does deliver on those expectations, the annual dividend per share would be 25 cents. That’s a FY27 grossed-up dividend yield of 6.6%, including franking credits.

That’s just the starting dividend yield – if it continues growing the payouts, then the dividend yield could quickly grow to more than 7%, then 8% and so on over the coming years.

Impressive investment process

A big factor in funding such a pleasing dividend history has been its investment performance.

Over the five years to 30 June 2026, its post-tax net tangible assets (NTA) has grown at an average of 14%.

With its portfolio, its goal is to build lasting wealth for shareholders through ownership of a portfolio of advantaged businesses.

Its investment mandate is unconstrained – it’s not limited to certain sectors, geographic markets or size of business. This flexibility allows the MFF to “adapt to changing investment market conditions and pursue opportunities that it identifies as offering attractive risk-adjusted investment returns”.

Currently, some of its biggest holdings include Mastercard, Alphabet, Visa, Bank of America, Amazon and Microsoft.

Capital growth

With those impressive investment returns, the business has only paid out part of its profits as dividends. The retained amounts can compound for investors, which is a key tailwind for the MFF share price.

Over the past five years, MFF shares have risen by 84%. I think it’ll continue rising in the long-term, though I’m not expecting the next five years to be as strong as the last five years, particularly with how it needs to fund its rising dividends.

But, as an ASX dividend share, it ticks the boxes of what I’m looking for.

The post Why I just invested $1,100 in this ASX dividend share appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Mff Capital 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 positions in and has recommended Mff Capital Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.