The initial reaction to Telix Pharmaceuticals Ltd (ASX: TLX)’s announcement of a $3.3 billion merger with German company ITM appears lukewarm, with its shares falling more than 6%.

Building a nuclear medicine powerhouse

The Australian company said in a statement to the ASX that it would pay ITM shareholders an upfront payment of US$1.65 billion, with additional contingent payments of US$700 million.

ITM, Telix said, is the world’s leading supplier of therapeutic radioisotopes and the only producer of globally-scaled, commercial-grade lutetium-77.

Telix said regarding the deal:

The merger will further strengthen Telix’s leadership as a vertically integrated radiopharmaceutical company with the capabilities required to develop, manufacture and deliver innovative treatments to patients globally. The combined organisation will be uniquely positioned as a radiopharmaceutical industry leader, differentiated by a world-class scaled isotope manufacturing business with a validated global distribution network, a market-leading commercial precision medicine platform and the industry’s most extensive therapeutic radiopharmaceutical pipeline.

Telix said ITM grew at a compound annual rate of 40% from 2021 to 2025 and generated US$273 million in revenue in 2025.

Telix added that the global market for radioisotopes was growing, with the nuclear medicine market expected to be worth US$34 billion by 2034.

Telix Managing Director Dr Christian Behrenbruch said:

This merger positions Telix at the forefront of the consolidation that is occurring as the industry matures. ITM is the leader in radioisotope production, with deep scientific expertise and a track record of value-adding innovation. We have enjoyed a close working relationship with ITM for many years and there is strong management alignment for the rationale behind this transaction. By combining our complementary strengths, we will create a company with commercial scale, world-leading supply and the most exciting theranostic drug portfolio in the sector.

Telix shares were 6.1% lower on the news at $16.77.

Brokers bullish on Telix Pharmaceuticals shares

Morgan Stanley recently valued the company at $23 per share following the US Food & Drug Administration approving Telix’s new drug, Pixclara, an amino acid positron emission tomography (PET) drug for imaging gliomas (brain cancer).

RBC Capital Markets also released a research note at the time, valuing the company at $19.

RBC estimated the total addressable market for Pixclara’s current use to be US$140 to US$160 million per year.

The broker added:

Assuming a penetration rate of ~60% in FY35, we estimate Pixclara’s first indication would be valued at $0.56/share with further upside potential of $0.62/share if Pixclara achieves ~80% penetration. If the company is successful in securing approval to expand Pixclara’s indication to include brain metastases, we estimate this could potentially add as much as ~$3.85/share to our price target.

The post Why are Telix Pharmaceuticals shares on the slide today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has positions in Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telstra Group Ltd (ASX: TLS) has long been a popular choice with Australian income investors.

The telecommunications giant provides essential services to millions of households and businesses, while regularly returning cash to shareholders.

At around $4.86 today, would I buy Telstra shares for passive income?

Why Telstra suits an income portfolio

I think Telstra has several characteristics that work well for investors looking for regular income.

Mobile and internet services have become a normal part of household and business spending. Customers still need connectivity when economic conditions weaken, which gives Telstra a relatively dependable source of revenue.

The company also holds a strong position in Australian mobile.

Its network reaches across the country, and continued investment should help Telstra maintain the quality and coverage that customers expect.

For an income investor, I like having the dividend supported by a business selling services people use every day.

Telstra is not immune to competition or rising costs, but I think its position provides a solid foundation for shareholder returns.

What income could investors receive?

Telstra has also made growing shareholder returns part of its longer-term plans.

Consensus estimates point to fully-franked dividends of 22 cents per share in FY27 and 22.5 cents per share in FY28.

At a Telstra share price of $4.86, those forecasts translate into prospective dividend yields of approximately 4.5% and 4.6%, respectively.

That is a healthy level of income in my view, particularly with franking credits potentially increasing the value of those dividends for eligible Australian investors.

While the forecast increase from 22 cents to 22.5 cents is fairly modest, I am comfortable with that.

For passive income, I would rather see the dividend gradually increase alongside the business than depend on an unusually high yield that may prove difficult to sustain.

There could still be some growth

I would not view Telstra shares purely as a dividend investment.

The company’s Connected Future 30 strategy is targeting growth in cash earnings through to FY30, which could give management more capacity to invest in the network and increase shareholder returns over time.

Mobile remains important, but Telstra also has opportunities across enterprise connectivity, infrastructure, and other telecommunications services.

I am not expecting spectacular growth from a company of Telstra’s size.

But a combination of modest earnings growth and regular dividends could still produce worthwhile total returns over a long holding period.

What would I watch?

Competition is one area I would keep an eye on.

Telstra needs to continue investing heavily in its network while ensuring customers see enough value to remain with the company.

Capital expenditure is also substantial in telecommunications, so strong revenue does not automatically translate into money available for dividends.

Still, I think Telstra’s scale and recurring customer demand put it in a good position to manage those requirements.

Foolish takeaway

Yes, I would buy Telstra shares for passive income.

At $4.86, forecast dividends of 22 cents and 22.5 cents per share offer prospective yields of around 4.5% to 4.6%, with full franking expected.

I also like that the income comes from an essential-services business with the potential to keep growing earnings gradually over time.

For investors looking for a combination of regular income and relative stability, I think Telstra remains one of the ASX shares worth considering.

The post Should I buy Telstra shares for passive income? appeared first on The Motley Fool Australia.

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

Three popular S&P/ASX 200 Index (ASX: XJO) gold stocks are catching investor interest today following some big updates.

One is charging ahead of the 0.2% losses posted by the ASX 200 in morning trade on Monday, while the other two are trailing that performance.

Here’s what’s happening.

ASX 200 gold stock Resolute Mining Ltd (ASX: RSG)

Resolute Mining shares are down 5% today, trading for $1.29 apiece.

The West African-focused ASX 200 gold stock is making headlines following an update on its Syama Gold Mine, located in Mali.

Resolute reported that production at Syama has remained below plan due to the challenging operating environment in Mali. This is impacting performance across underground mining, open-pit mining, and sulphide processing at the project.

The miner revised its 2026 gold production forecast for Syama to 150,000 to 160,000 ounces at an all-in sustaining cost (AISC) of $2,300 to $2,400 per ounce.

With Resolute Mining’s other assets remaining on track, the company now expects its total gold 2026 production to be 205,000 ounces to 225,000 ounces at an AISC of $2,250 to $2,350 per ounce.

Resolute Mining CEO Chris Eger said:

While the near-term impact at Syama is disappointing, the broader business remains supported by a strong gold price environment and disciplined cost management. These actions will enable us to continue generating positive returns and build a stronger platform for operational performance in 2027.

Bellevue Gold Ltd (ASX: BGL)

Bellevue Gold shares are down 1.2%, trading for $1.60 each.

This comes after the ASX 200 gold stock released an exploration update and its annual Resource and Reserve statement for its owned Bellevue Gold Project, located in Western Australia.

Bellevue said that exploration drilling will form an important element of its renewed growth strategy, with exploration set to “substantially increase” in FY 2027.

The miner also revealed that the Bellevue Gold Project now has an Indicated and Inferred Resource of 2.7 million ounces at 8.6 grams per tonne gold. That compares to 3.1Moz at 8.9g/t gold last year.

Which brings us to…

Ramelius Resources Ltd (ASX: RMS)

The third ASX 200 gold stock turning heads today is Ramelius Resources. And unlike the other two Aussie gold miners, Ramelius Resources shares are leaping higher, up 4.9% and trading for $3.76 apiece.

This follows the release of the gold miner’s FY 2027 production forecast and four-year outlook.

Investors are reacting positively to Ramelius’ FY 2027 gold production guidance of 205,000 to 225,000 ounces of gold at an AISC of $2,150 to $2,350 per ounce.

And management increased the miner’s FY 2030 gold production target by 11% to 560,000 to 610,000 ounces at an AISC of $2,100 to $2,400 per ounce.

The post 3 ASX 200 gold stocks turning heads on big news today appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.