The Australian share market has traditionally generated an annual return in the region of 10%.

But investors don’t have to settle for that.

Not when there are ASX 300 shares out there with the potential to deliver outsized returns over the next 12 months.

But which share could be a buy? Bell Potter thinks the one in this article is worth considering.

Which ASX 300 share?

Bell Potter is recommending GenusPlus Group Ltd (ASX: GNP) shares to clients. 

It is an Australian infrastructure services provider specialising in the end-to-end design, construction, and maintenance of electrical transmission networks, substations, battery energy storage systems, and telecommunications infrastructure.

Bell Potter highlights that the ASX 300 share has started FY 2027 in a positive fashion. It said:

GNP has started FY27 on a strong footing with several contract awards. We estimate GNP has converted 10% of its $3.6b FY26 tender pipeline value this financial year so far; the company has averaged a 62% conversion rate over FY23-FY25. Accounting for the recent contract awards, our FY27-28 revenue forecasts are now 5% and 18% uncontracted, respectively, compared with 7% and 24% previously. We make no changes to our forecasts in this report.

One contract is from mining giant Rio Tinto Ltd (ASX: RIO) and is estimated to be worth $55 million. It adds:

GNP has been awarded ~$350m of contracts this financial year to date. Firstly, GNP was contracted to construct the 220kV Millstream Substation expansion in the Pilbara region of WA by Rio Tinto, with the work package valued at ~$55m. Works are scheduled to complete in mid-CY28

Big potential returns

According to the note, the broker has retained its buy rating and $12.80 price target on the ASX 300 share.

Based on its current share price of $9.67, this implies potential upside of 32% for investors over the next 12 months.

Speaking about its buy recommendation, the broker said:

GNP is working through a record tender pipeline valued at $3.6b (as at FY26; up 50% YoY) across the transmission, BESS, rail and wind farm construction markets. GNP’s FY27 PE of 19.1x is undemanding; we see potential for a re-rate towards 22-24x in the near-term, a justified premium to the peer group average. Catalysts to drive this multiple re-rate include: 1) a guidance upgrade (we view the FY27 guidance as conservative); 2) strong conversion of the tender pipeline; and 3) further M&A.

The post Why this ASX 300 share could rise 32% appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 GenusPlus Group. The Motley Fool Australia has recommended GenusPlus Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX dividend stock space is one of the best things about the ASX share market. How good is it to receive regular passive income and an attractive dividend yield?

There are plenty of appealing, dividend-paying businesses on the ASX like Medibank Private Ltd (ASX: MPL), Centuria Industrial REIT (ASX: CIP) and Telstra Group Ltd (ASX: TLS). All of them would be worthy of a spot in a dividend-paying portfolio, in my view.

But, for my own portfolio, there are a few ASX dividend stocks that I’ve backed heavily and I think it’s good to be open about which ASX shares I’m buying, partly because of the dividends being provided.

With that in mind, I’m going to highlight L1 Long Short Fund Ltd (ASX: LSF), my second-largest holding.

Very effective investment strategy

The business invests in ASX shares and, to a lesser degree, global shares.

It invests using a bottom-up, fundamental, research-driven investment approach focused on strict quality and valuation criteria, resulting in an investment style that is value and contrarian biased.

The fund uses both and long and short positions aiming to profit from both rising and falling share prices.

L1 Long Short Fund said in its July 2026 update that it’s focusing on company-specific opportunities where valuation and earnings delivery can drive returns across a range of market environments.

The fund manager believes the portfolio looked well placed, with the medium long position trading on a price/earnings (P/E) ratio of 10, supported by double-digit earnings per share (EPS) growth and modest debt levels.

The listed investment company (LIC) invests quite differently for the S&P/ASX 200 Index (ASX: XJO), giving investors useful exposure to compelling businesses.

Diversification

The ASX share market is largely focused on ASX bank shares and ASX mining shares.

This ASX dividend stock invests in a “highly diversified portfolio of typically 50 – 100 long and short positions”.

L1 Long Short Fund has generated returns for a number of sectors, but the main three have been materials, industrials and communication services, with the next two most profitable sectors being utilities and financials.

As I’ve already mentioned, the LIC is invested across ANZ, North America, Europe and Asia, which is pleasing geographic diversification.

Strong dividend income

As a LIC, the ASX dividend stock can turn investment returns into passive income.

Over the last five years, L1 Long Short Fund’s portfolio has returned an average of 17.1%, which is a strong level of return.

L1 Long Short Fund has grown its annual dividend per share each year since 2021, which is a pleasing and growing dividend streak.

The LIC recently switched to quarterly payments and now increases its dividend every three months.

It hiked its FY26 annual payout by 14.5% to 14.6 cents per share. That translates into a grossed-up dividend yield of 4.3%, including franking credits.

I think the FY27 payout will be at least 16.2 cents per share, representing year-over-year growth of at least 11%. I think the grossed-up dividend yield will be at least 4.8%, including franking credits.

Compelling ASX dividend stock investment

With $3,000, investors could buy 625 shares of the L1 Long Short Fund, unlocking plenty of passive income for shareholders.

I think it pays to take a contrarian view on shares, and this LIC has proven very effective.

In my view, its strategy gives it a great chance to outperform the ASX 200 over the next five years.

The post $3,000 buys 625 shares in an impressively reliable ASX dividend stock appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund. 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.

The Netwealth Group Ltd (ASX: NWL) share price is under the spotlight today after the company announced its subsidiaries have been served with a class action concerning certain First Guardian investment options. Netwealth previously paid around $101 million in compensation to affected members and had already addressed related matters with ASIC.

What did Netwealth report?

• Class action lodged against Netwealth Investments Limited and Netwealth Superannuation Services Pty Ltd concerning First Guardian investment options
• Netwealth has already paid $101 million in compensation to impacted members
• Original issues were subject to a court-enforceable undertaking with ASIC
• Compensation program was completed in January 2026

What else do investors need to know?

Netwealth has confirmed it intends to defend the class action. The company clarified that the matters underlying the claim had been previously addressed in partnership with ASIC, and compensation was paid by January 2026.

The claim does not relate to current platform features or operations. Netwealth’s full range of financial products, services, and technological capabilities remain unaffected, and day-to-day operations are continuing as normal.

What’s next for Netwealth?

Netwealth’s future focus is on defending the claim while maintaining strong governance and customer trust. The company continues to invest in technology, customer support, and governance to ensure its platform and client services remain industry-leading.

Investors can expect updates on the legal proceedings as they progress. Netwealth remains committed to transparent communication and operating in the best interests of its stakeholders.

Netwealth share price snapshot

Over the past 12 months, Netwealth shares have declined 38%, trailing the S&P/ASX 200 Index (ASX: XJO), which has fallen 1% over the same period.

View Original Announcement

The post Netwealth faces class action after compensation payments 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 Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. 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.