Although ASX investors love to buy financial stocks if they are seeking dividend income, most often start and stop with the ASX banks. Whilst the banks are indeed lucrative sources of passive dividend income, there are many other financial stocks that are popular too. Insurance Australia Group Ltd (ASX: IAG) shares are a great example. 

IAG, the insurance company behind popular insurance brands like NRMA, has been listed on the ASX for decades. Over its ASX life, it has built up a solid reputation as a reliable income stock. Heck, even Warren Buffett invested in IAG a few years ago.

IAG shares have enjoyed a happy few months, currently up more than 20% since March. However, the company is also down by about 5% over the past year. 

But let’s dive into just how much IAG shares are offering investors who are searching for dividends today.

IAG shares: How’s that dividend yield looking?

At the time of writing, IAG shares are trading at $8.08 each, down 0.49% for the day thus far. At this price, the insurance stock is trading on a trailing dividend yield of 3.84%.

That comes from IAG’s last two dividend payments. The first of those was the final dividend, worth 19 cents per share, that investors received last September. The second, the interim dividend from March, was worth 12 cents per share. Both payments came partially franked, at 40% and 25% respectively.

That 12-month total of 31 cents per share gives IAG that 3.84% yield at current pricing. 

However, this yield doesn’t mean investors are guaranteed a 3.84% yield going forward. Like all trailing dividend yields, it only reflects what investors have already received in income, not what they might get going forward. We can’t know for sure what kind of dividends IAG will pay out over the next 12 months until the company reveals them. Insurance stocks do tend to be a bit more unpredictable than the average ASX dividend share, too, given the unpredictable nature of their business models. 

In some comfort to IAG investors, though, some ASX brokers are eyeing off IAG at the current price. As my Fool colleague covered late last month, brokers at investment bank Goldman Sachs have recently given IAG shares a ‘buy’ rating, together with a 12-month share price target of $8.60. That would see some decent upside for investors if accurate. But we shall have to wait and see what IAG pulls out of its hat over the rest of the year. 

 

 

 

 

 

 

 

The post Buying IAG shares? Here’s the dividend yield you’ll get today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Goldman Sachs Group. 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.

Judo Capital Holdings Ltd (ASX: JDO) shares are higher on Monday, but the bounce follows a brutal month for shareholders. 

At the time of writing, the Judo share price is up 2.27% to 90 cents. 

Despite the small lift today, the ASX bank stock is still down roughly 37% over the past month and almost 50% in 2026. 

That follows a massive 40% plunge on 25 June after Judo updated the market on its asset quality and trading performance. 

So, why is the stock getting attention again today?

Morgan Stanley wants more answers

According to The Australian, Morgan Stanley analysts have cut their target price on Judo by around 32% to $1.25.

The broker said Judo’s June update hurt confidence in its near-term earnings outlook. 

It also raised questions about its risk appetite, lending standards, broker use, and early risk detection.

Morgan Stanley lowered its earnings per share (EPS) forecasts for Judo by 10% to 22% across FY26 to FY28.

The broker is now forecasting FY27 profit before tax of around $179 million. That is well below Judo’s own FY27 guidance range of $210 million to $220 million. 

The analysts also want more disclosure around Judo’s loan book, particularly its loans to property operators and construction.

The report pointed to $2.7 billion of loans to property operators and $1 billion to construction.

What spooked the market in June

Judo’s update last month showed FY26 cost of risk is now expected to be between $116 million and $122 million.

The company said this was mainly due to higher specific provisions for 3 customer exposures.

FY26 profit before tax is expected to be between $163 million and $169 million, which still represents 30% growth from FY25.

Judo also said it remains on track for its existing FY26 guidance for gross loans and advances, net interest margin, and cost-to-income ratio. 

However, the profit growth isn’t the main issue right now. The focus is on whether the bad loans are isolated.

Keep in mind that Judo is a specialist business lender, not a major retail bank. Its model is built around lending to small and medium-sized businesses, often through relationship bankers.

Hence, when credit quality starts to slip, questions naturally turn to the rest of the book.

Foolish Takeaway

Today’s rise looks more like bargain hunting than a proper recovery. 

The share price has bounced from its recent lows, but Judo still needs to show these credit issues are under control.

The FY26 results in August should give investors a clearer view of the loan book, provisions, margins, and whether management can rebuild confidence. 

Until then, Judo shares may keep getting some support from bargain hunters after the heavy sell-off.

But don’t expect the share price to rally to previous levels just yet. 

The post Judo Bank shares rise despite Morgan Stanley price target cut 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 S&P/ASX 200 Index (ASX: XJO) is slipping on Monday as Friday’s strong rebound loses momentum.

At the time of writing, the ASX 200 is down 0.15% to 8,831 points.

That follows a 1.37% rise on Friday, when the index bounced back from the previous session’s weakness.

The ASX 200 has traded between 8,817.5 points and 8,856.8 points, meaning buyers have stepped in from the morning low.

But the market has struggled to hold those gains, with banks, supermarkets, and resources keeping the index in negative territory.

There are more losers than winners as well, with 116 shares falling, 74 rising, and 10 trading flat.

Let’s take a closer look.

Banks drag the index lower

The banks are doing a fair bit of the damage today.

Commonwealth Bank of Australia (ASX: CBA) shares are down 0.36% to $164.42, while Westpac Banking Corp (ASX: WBC) shares are down 0.83% to $35.395.

ANZ Group Holdings Ltd (ASX: ANZ) shares are also lower, down 0.20% to $35.19, and Macquarie Group Ltd (ASX: MQG) shares are down 0.62% to $250.10.

National Australia Bank Ltd (ASX: NAB) is holding up a little better, with its shares up 0.13% to $38.62.

The supermarkets are adding to the pressure.

Woolworths Group Ltd (ASX: WOW) shares are down 1.28% to $39.27, while Coles Group Ltd (ASX: COL) shares are down 0.67% to $23.125.

Some sectors are still fighting back

Despite the ASX 200 sitting in the red, there are still a few pockets of strength.

Energy shares are giving the market some support, even with oil prices slightly softer.

Woodside Energy Group Ltd (ASX: WDS) shares are up 1.26% to $28.22, while Santos Ltd (ASX: STO) shares are up 2.11% to $7.25.

Healthcare is also helping.

CSL Ltd (ASX: CSL) shares are up 1.15% to $123.21, and ResMed Inc (ASX: RMD) shares are up 1.28% to $30.89.

Gold shares are also drawing interest, with takeover activity giving the sector some extra attention.

Vault Minerals Ltd (ASX: VAU) shares are up 12% to $5.11 after receiving a takeover offer from Genesis Minerals Ltd (ASX: GMD). Genesis shares are down 7.15% to $5.84.

Regis Resources Ltd (ASX: RRL) shares are also higher, up 3.6% to $6.87.

Can the ASX 200 recover?

The ASX 200 isn’t falling heavily, but today’s move still shows how quickly Friday’s rally has faded away.

The market is getting support from energy, healthcare, and gold, but the banks are making it difficult for the index to turn positive.

From here, the ASX 200 probably needs financials to steady and a few more large-cap stocks to join the rebound.

Without that, today may end up looking like a breather after Friday’s strong rally.

 

The post ASX 200 slips as Friday’s rally fades 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 positions in and has recommended CSL, Macquarie Group, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended CSL and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.