On Friday, Argo Global Listed Infrastructure Ltd (ASX: ALI) reported a full-year profit of $39.5 million for FY26, with a record fully franked dividend yield of 5.6%.

What did Argo Infrastructure report?

• Net profit after tax (NPAT): $39.5 million (down from $52.2m in FY25)
• Total assets: $529 million (up from $476m in FY25)
• Fully franked full-year dividends: 10.0 cents per share (a record high; up from 9.5c last year)
• Dividend yield: 5.6% (including franking)
• Portfolio performance: +13% (vs infrastructure index +9.5% and ASX 200 Accum. +6.1%)
• Total shareholder return: +19.2% for the year to 30 June 2026

What else do investors need to know?

Argo Infrastructure delivered its 17th consecutive fully franked dividend, bringing total dividends paid to shareholders since the company’s 2015 inception to 77.25 cents per share. The company’s diversified approach, managed by global specialist Cohen & Steers, has consistently outperformed across multiple timeframes.

AI-driven demand for data centres has spurred growth among holdings like Entergy, which gained 38% this year after securing a major power supply contract with Google. Exposure to utilities supporting technology giants such as Meta and Microsoft also contributed positively to returns.

What did Argo Infrastructure management say?

Managing Director Jason Beddow said:

We’re pleased that our global infrastructure portfolio not only delivered strong returns but continues to provide diversification and income for our shareholders, particularly in a year marked by volatility and rapid technological change.

What’s next for Argo Infrastructure?

Looking ahead, Argo Infrastructure expects the global listed infrastructure sector to remain resilient, underpinned by persistent demand for energy, especially from data centre expansion and digitalisation trends. While geopolitical and regulatory risks remain, the company sees ongoing opportunity in electric utilities and gas distribution.

Longer term, the board is optimistic that private investment in infrastructure, particularly connected to the rise in AI and cloud computing, will be essential as governments alone cannot meet soaring capital expenditure needs.

Argo Infrastructure share price snapshot

Over the past 12 months, Argo Infrastructure shares have risen 9%, outpacing the All Ordinaries Index (ASX: XAO), which is flat over the same period.

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The post Argo Infrastructure FY26 earnings: Record dividend 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 positions in and has recommended Alphabet, Amazon, and Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, and Microsoft. 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.

On Friday, Energy Resources of Australia (ASX: ERA) revealed a half-year net loss after tax of $214 million, with revenue falling 21% to $25 million.

What did Energy Resources of Australia report?

• Revenue from ordinary activities down 21% to $25.0 million (HY25: $31.5 million)
• Net loss after tax widened significantly to $214.1 million (HY25: $35.4 million loss)
• Operating cash outflow of $97.4 million (HY25: $99.8 million outflow)
• Rehabilitation costs incurred of $101 million (HY25: $106 million)
• Rehabilitation provision increased by $134 million to $2.44 billion
• No interim dividend declared for the half-year

What else do investors need to know?

Energy Resources of Australia (ERA) continues to focus on the rehabilitation of its former Ranger mine, located within the culturally and environmentally sensitive Kakadu National Park. The company’s financial result was weighed down by an increase in rehabilitation provision costs, in particular from revisions to the Pit 3 capping methodology, which extended the closure timeline and expected costs.

At 30 June 2026, ERA held $1.07 billion in cash, term deposits, and security receivables, including $573 million in a Trust Fund controlled by the Commonwealth. ERA confirmed it has no debt. ERA’s shares have been suspended from trading since 15 June 2026, as majority owner Rio Tinto Ltd (ASX: RIO) pursues compulsory acquisition of the remaining shares. The acquisition timeline is delayed pending court appeal outcomes.

What’s next for Energy Resources of Australia?

ERA’s strategic priority remains the comprehensive rehabilitation of the Ranger Project Area, aiming for its potential reintegration into Kakadu National Park. Management now expects its funding reserves to cover rehabilitation out to late 2027, extending beyond the previous estimate.

Further studies and reforecasts are underway, especially after recent changes in Pit 3 capping methodology led to increased costs and an extended schedule. Additional funding will likely be necessary by Q4 2027 to meet the company’s rehabilitation obligations. ERA continues to work with government and stakeholders to ensure regulatory compliance and sustainable closure outcomes.

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The post Energy Resources of Australia: Loss widens on higher rehabilitation costs 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.

The share Rural Funds Group (ASX: RFF) looks like an excellent ASX stock to buy to me because it’s significantly undervalued.

Rural Funds is a real estate investment trust (REIT) that owns farmland across a number of sectors including cattle, almonds, macadamias, vineyards and cropping.

In a period when the RBA interest rate has increased multiple times, I think the market is underappreciating the business, presenting an opportunity to invest.

Let’s take a look at why I’m so interested in investing.

Significant discount

One of the main ways to value a REIT is to look at the net asset value (NAV) – that includes the value of property, the debt, the cash and so on. Rural Funds regularly reports its adjusted NAV to take into account the market value of its water entitlements.

If the unit price of the REIT is significantly below the NAV, then that means we can buy exposure to its portfolio of assets at a compelling discount.

Rural Funds reported that its adjusted NAV was $3.22 at the end of FY26, representing a 4.5% year-over-year increase, driven by property revaluations and the value of its interest rate swaps.

We’d have to pay a lot more to go and buy the farms today in our own names. With Rural Funds, we can buy exposure at a much lower price.

Currently, the Rural Funds unit price is trading at a 35% discount to its stated value.

Resilient distribution

Even if the market doesn’t recognise the value of the business by sending the Rural Funds unit price higher any time soon, we can benefit by getting a sizeable distribution yield. The yield is much larger now than it would be if the Rural Funds unit price was trading at parity with its adjusted NAV.

Its distribution history is pleasing. Rural Funds grew its distribution every year between FY14 and FY22 and has since been maintained despite higher interest rates.

The business has provided guidance that it will pay an annual distribution of 11.73 cents per unit again in FY27, representing a distribution payout ratio of 100%.

At that level, it offers a distribution yield of 5.6%.

I think the business can deliver rising payouts in the coming years because of the ASX stock’s organic rental growth.

Pleasing rental income

I think every business worth investing in needs to have organic drivers that can increase its value over time.

There are two aspects that are helping increase its rental income.

More than half of its rental income is linked to CPI inflation, while another 29% is growing annually at a fixed rate. Regular rental growth is a compelling element, in my opinion.

Another driver is development investing at the farms. Some of the investments help increase the productivity of the farm, while other investments are turning some farms to other crop types for better, more economic use.

I think Rural Funds will pay larger dividends in the coming years.

The post Why I’m planning to buy this cheap ASX stock next! appeared first on The Motley Fool Australia.

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