The ASX consumer discretionary sector has been hit hard by several headwinds in 2026. 

The sector relies heavily on an economic environment that supports strong household spending, because these companies sell non-essential goods and services. 

Headwinds aplenty 

Success largely depends on household disposable income, employment and wage growth, consumer confidence, interest rates, and the cost of living. 

When incomes rise and borrowing costs are manageable, consumers generally have more capacity to spend, while higher interest rates and weaker real incomes can reduce discretionary purchases.

These factors have weighed heavily against the sector in 2026, pushing many share prices down. 

Because of this, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has fallen over 12% year to date, and over 22% in the last 12 months. 

However, this pressure has created value opportunities that should these headwinds ease in the near future. 

One such stock that has been identified by Ord Minnett is Beacon Lighting Group Ltd (ASX: BLX). 

Its share price is down over 35% year to date.

Company overview

Beacon Lighting engages in the retail of lighting products in Australia and internationally. The company designs, develops, sources, imports, distributes, merchandises, markets, and sells light fittings, ceiling fans, light globes, and electrical accessories products.

According to Ord Minnett, this ASX consumer discretionary stock delivered a solid FY26 result against a volatile macro backdrop, achieving 4Q26 same-store sales growth of 7.1%, with momentum continuing into FY27. 

We believe accelerating sales momentum, a strong pipeline of new stores, a favourable FX swing for margins, and improving returns from its property fund underpins an improved outlook.

Strong growth expected in FY27

According to the broker, Beacon Lighting is expected to return to growth in FY27, supported by several key drivers: 

• Improving underlying sales momentum
• An acceleration in the store rollout program
• Favourable currency movements that are expected to support gross profit margins
• Stronger earnings contributions from the Large Format Property Fund

In combination, these factors are expected to drive an improvement in earnings growth and support a stronger overall financial performance.

Based on this guidance, Ord Minnett has retained its buy recommendation on this ASX consumer discretionary stock. 

It also has a price target of $2.65, indicating 45% upside from current levels. 

BLX continues to execute its long-term strategy of evolving from a traditional lighting retailer into Australia’s leading provider of quality lighting and electrical products for both homeowners and trade professionals. Central to this strategy is increasing trade sales to approximately 50% of revenue, which should enhance revenue diversification, reduce reliance on discretionary consumer spending, and support more resilient earnings growth across the cycle. Overall, BLX remains well-placed to capture upside from any improvement in trading conditions.

The post Ord Minnett thinks this ASX consumer discretionary stock can rise 45% by this time next year appeared first on The Motley Fool Australia.

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• Beacon Lighting Group share price jumps 14%: FY26 profit drops despite higher sales

Motley Fool contributor Aaron Bell 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 Australian Age Pension is one of the most generous in the world and it’s becoming increasingly rewarding. Despite that, there are high-yield ASX dividend stocks I’d rather rely on for income.

The Age Pension rates have recently had a boost. The maximum normal Age Pension for a single person is now $1,237.70 per fortnight. That translates into an annualised approximate $32,180.

I’m going to talk about why I prefer the Dexus Industria REIT (ASX: DXI) over the Age Pension.

High-yield ASX dividend stock

Following interest rate rises and market uncertainty surrounding interest rates, I’d suggest that real estate investment trusts (REITs) are being overlooked by the market as long-term opportunities.

This particular business is an Australian REIT that is invested in high-quality industrial warehouses. At 30 June 2026, its property portfolio was valued at $1.5 billion and is located across major Australian cities, with a goal to provide sustainable income and capital growth for investors.

The business has provided guidance that it will pay a distribution of 16.6 cents per security in FY27, representing a distribution payout ratio of 97.6% – that’s high but sustainable.

The forecast payout translates into a distribution yield of 7%, which is a high and pleasing dividend yield.

To match the annual Age Pension, an investor would need 193,856 units of the REIT.

Rising rental income

One of the main reasons why I think this high-yield ASX dividend stock is so appealing is because it’s experiencing solid rental growth.

In FY26, it saw strong like-for-like portfolio income growth of 5.3%, supported by rental escalations, strong re-leasing spreads of 21.4% (new contracts generating stronger revenue than old rental contracts) and a high occupancy rate of 98.8%.

The high-yield ASX dividend stock suggests that moderating supply supports stronger market fundamentals and the outlook for its existing portfolio. Construction costs are forecast to compound faster than CPI, so its existing $217 million development pipeline offers a hard-to-replicate pathway to growth.

The business has a lot of its revenue linked to CPI, so it can provide long-term impacts of inflation.

Capital growth potential

The final reason I think this option is superior to the Age Pension is that it can provide capital growth, whereas the Age Pension doesn’t.

As rents increase over time, this can provide a boost to the value of the properties and support the Dexus Industria REIT unit price.

During FY26, its net tangible assets (NTA) per security grew 2.4% to $3.42. That means it’s now undervalued by 31% compared to the June 2026 NTA. I think it’s a great time to invest for the long-term.

The post 193,856 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension 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 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.

Nufarm Ltd (ASX: NUF) shares were turning heads yesterday after tumbling 6% in a single session. 

This halted strong momentum from the Australian agricultural chemical and seed technology company. 

Its share price remains up 29% year to date. 

What were investors reacting to?

Nufarm shares fell following the release of an ASX announcement from the company. 

As reported by Aaron Teboneras, Nufarm announced an updated FY26 guidance. 

According to the release, underlying EBITDA is expected to increase approximately 25% on the prior corresponding period. 

For FY26, underlying EBITDA is expected to be between $370 million and $380 million, representing 25% growth at the midpoint compared to FY25. 

Despite these positive numbers, investors were exiting their positions in Nufarm shares. 

It’s possible this is because Nufarm is facing another $90 million to $110 million of restructuring costs, adding to last year’s large statutory loss and raising concerns about ongoing costs and uncertainty.

Although underlying EBITDA is improving, investors want to see whether the restructuring actually leads to sustainable profits and cash flow, rather than repeated one-off charges.

What is Bell Potter’s outlook for Nufarm shares?

Following the fall to $3 a share for Nufarm shares, Bell Potter released updated guidance. 

Ultimately, the broker’s view is positive. 

Bell Potter said Nufarm’s underlying performance is stronger than expected, particularly in Seeds, while the balance sheet is improving and the restructuring is progressing.

Bell Potter expects underlying EBITDA to remain strong and grow from FY26 onward, but NPAT will remain weighed down by largely non-cash restructuring costs, meaning statutory profit may lag the underlying EBITDA improvement.

Buy rating unchanged 

Bell Potter ultimately sees plenty of upside despite the announcement. The broker retained its buy recommendation and raised its price target to $3.90 for Nufarm shares (previously $3.75).

Our Buy rating is unchanged. In FY26e NUF has delivered a result that was consistent with our expectations, while incurring costs related to plant outages that were not expected. The underlying performance looks to be stronger than what is implied at the headline, with material YoY growth in Seeds and the basis of the next leg of cost outs now articulated.

From yesterday’s closing price, this indicates an upside potential of 30%. 

Importantly for investors, Bell Potter isn’t the only broker with a positive view. 

The team at Morgans recently placed a $4.15 price target on Nufarm shares. 

From current levels, this indicates an upside potential of 38%. 

The post What is Bell Potter’s updated view on Nufarm shares after crashing 6% appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Aaron Bell 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.