Coal prices have been back in focus over the past few weeks, and to be frank, the move has been pretty hard to miss.

According to Trading Economics, coal finished last week at around US$144 per tonne.

That leaves the commodity almost 11% higher over the past month and around 39% above where it was a year ago.

The other thing worth looking at is demand.

Global coal consumption is heading for another record in 2026, despite huge amounts of money being spent on renewable energy around the world.

And coal still generates more electricity than any other individual source.

So, why is it having such a strong run again?

Why are coal prices climbing again?

A lot of it comes back to what’s happening in global energy markets.

The war in the Middle East has disrupted LNG shipments through the Strait of Hormuz and pushed gas prices higher.

Virtually no coal travels through Hormuz, but that hasn’t stopped coal from benefiting.

This is because when gas gets too expensive, some power generators will use more coal instead.

According to the IEA, demand has picked up across China, Japan, South Korea, and parts of Europe.

Supply has tightened a bit as well, with China stepping up mine safety checks and Indonesia cutting its 2026 production target.

The world is burning more coal than ever

The demand numbers are pretty eye-opening as well.

The IEA now expects global coal consumption to rise 1.2% to a record 8.94 billion tonnes in 2026.

That’s quite a turnaround, considering it was previously expecting demand to fall this year.

China is still by far the biggest user, with demand expected to come in at around 5 billion tonnes.

India isn’t exactly slowing down either.

Coal consumption there is forecast to rise 4.2% to around 1.35 billion tonnes this year.

Between them, China and India will consume more than 70% of the world’s coal.

Coal is still important

This is probably the part that gets overlooked the most.

In 2025, coal provided around 34% of global electricity generation, making it the largest individual source of power worldwide.

Natural gas was a distant second at around 21%.

Yes, renewables are growing quickly and are expected to overtake coal-fired generation during 2026.

But coal isn’t disappearing anytime soon.

The IEA still expects it to remain the world’s largest single source of electricity through 2030.

At the same time, worldwide electricity demand is forecast to grow 3.6% this year and another 3.8% in 2027.

The post Coal is still the king of global power. Here’s why 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.

The Sonic Healthcare Ltd (ASX: SHL) share price has fallen by more than 18% since 19 August 2026, which is a hefty drop for an ASX healthcare share in a short time. When businesses fall that much, it’s worthwhile considering an investment.

Sonic Healthcare is a global pathology business with a presence across a number of countries, including Australia, Germany, the US, the UK, Switzerland, and New Zealand.

Let’s take a look at whether this is a good time to buy or not.

Defensive earnings

There’s a lot of uncertainty for the global economy at the moment, with rising interest rates, stronger inflation, AI uncertainties, and so on.

Healthcare is one of those industries, in my view, that have defensive earnings. We don’t choose when to get sick, so there’s fairly consistent demand year to year. Most people also place their health as a high priority compared to many other spending categories.

But higher interest rates are a headwind for most share prices, including defensive names. Still, I believe Sonic Healthcare’s financials can continue growing.

In FY26, revenue rose 13% to $10.9 billion, underlying operating profit (EBITDA) grew 11% to $1.9 billion, operating profit (EBITDA) rose 9% to $1.88 billion, underlying net profit rose 17% to $621 million, and statutory net profit grew 18% to $608 million.

Statutory earnings per share (EPS) grew 15% to $1.23.

Assuming the same exchange rate as FY26, EBITDA is predicted to grow to between $1.95 billion and $2.03 billion, excluding back office IT systems transformation costs of around A$30 million.

In the longer term, according to CommSec, analysts think earnings in FY28 and FY29 could grow.

With a mixture of organic growth (from tailwinds like an ageing population) and the occasional bolt-on acquisition, the future looks promising for profit growth.

The dividend yield

Sonic Healthcare has an impressive history of dividends. There have only been a couple of times over the last 35 years when the business didn’t increase its payout (it was maintained instead), and I expect that to continue in the years ahead.

The FY26 annual dividend was increased by 0.9% to $1.08. Future earnings growth is expected to support achieving of the target dividend payout ratio of between 70% to 80% of net profit.

The FY26 payout translates into a 7.2% dividend yield, including franking credits, at the time of writing. That’s a very attractive yield, in my view.

Is the Sonic Healthcare share price cheap?

At the time of writing, the Sonic Healthcare share price is trading on a price-earnings (P/E) ratio of less than 16.

I think this is a great time to invest in the business, as I don’t expect the outlook to remain as uncertain forever. Therefore, a temporary sell-off could be a long-term opportunity. Even if the P/E ratio doesn’t increase, future earnings growth (and large dividends) can help drive shareholder returns.

The post Down more than 18% in a month with a 7% yield, are Sonic Healthcare shares too cheap to ignore? 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 Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Ingenia Communities Ltd (ASX: INA) share price is in focus after the company rejected a revised takeover proposal, stating it undervalues the business. Warburg Pincus increased its non-binding indicative offer to $5.05 cash per stapled security, up from $4.75, but Ingenia’s board concluded the proposal is not in the best interests of its securityholders.

What did Ingenia Communities report?

• Received a revised, non-binding indicative takeover offer at $5.05 per stapled security
• Offer followed a prior bid at $4.75 per security
• Ingenia Board, supported by independent financial and legal advice, rejected the new proposal
• The proposal was conditional on due diligence and regulatory approvals
• Ingenia’s market capitalisation stands at approximately $1.7 billion

What else do investors need to know?

Ingenia’s board engaged financial adviser Greenhill, a Mizuho affiliate, and external legal counsel, showing its commitment to a careful and thorough assessment of offers. The board remains open to alternative proposals that offer compelling value and serve the best interests of securityholders.

The company continues to focus on delivering its strategic plan. Securityholders are advised that no action is required regarding the revised offer and Ingenia remains committed to growth through acquisition and development.

What’s next for Ingenia Communities?

Ingenia will keep executing its current strategy, which aims to deliver long-term value for securityholders. The board indicated confidence in the company’s direction and growth path, and will continue to consider any future proposals that adequately reflect Ingenia’s value.

The company operates 96 communities and has a strong platform for ongoing expansion, focused on Australia’s growing seniors’ market.

Ingenia Communities share price snapshot

Over the past 12 months, Ingenia shares have declined 22%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 1% over the same period.

View Original Announcement

The post Ingenia Communities rejects revised $5.05 takeover offer 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.