If you are hunting for big potential returns, then it could be a good idea to check out the S&P/ASX 200 index (ASX: XJO) share in this article.

That’s because the team at Bell Potter believes that it could smash the market over the next 12 months.

Which ASX 200 share?

The share that Bell Potter is urging investors to buy is Nickel Industries Ltd (ASX: NIC).

It is an Indonesia-focused vertically integrated nickel producer with production assets across nickel ore mining, Nickel Pig Iron (NPI) production, and nickel Mixed Hydroxide Precipitate (MHP) production. 

Bell Potter notes that low rainfall is impacting its operations. It said:

NIC reported that low rainfall is impacting water supply in Central Sulawesi and interrupting the ramp-up of the 46%-owned Excelsior Nickel Cobalt (ENC) HPAL project. […] Should water supply constraints persist, ENC is expected to run at ~30% of nameplate until water availability normalises. The wet season is late and inherently hard to predict, but normalisation is anticipated by December 2026.

On a positive note, the low rainfall has supported mining and haulage productivity. The broker adds:

Conversely, the dry conditions have supported mining and haulage productivity at the Hengjaya Mine, which achieved 3.1Mwmt of nickel ore sales in July and August, including a record 1.6Mwmt in August 2026. This is tracking ahead of our prior forecast, which we incrementally increase from here, noting the current 14.3Mt RKAB sales permit cap. NIC’s RKEF operations continue unaffected by the water shortage.

Should you invest today?

According to the note, the broker has retained its buy rating and $1.45 price target on the ASX 200 share.

Based on its current share price of 80 cents, this implies potential upside of 81% for investors over the next 12 months.

In addition, a very generous 7.7% dividend yield is forecast in FY 2027, followed by a massive 15.5% dividend yield in FY 2028.

Commenting on its buy recommendation, Bell Potter said:

EPS changes in this report are: CY26: -10%; CY27: 0%; CY28: 0% as we update for a revised production outlook and higher price realisations. NIC is one of the world’s largest listed nickel producers and offers exposure across a range of nickel products and markets. It has a track record of maintaining margins through low nickel prices, benefitting from its diversified product suite and margin exposure across an integrated value chain. We retain our Buy recommendation and TP$1.45/sh.

The post Why this ASX 200 share could rise 80% appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Monday
• This ASX nickel miner could jump 57%, Macquarie says
• 3 ASX mining shares Bell Potter rates a buy
• Strong profit growth shines in Nickel Industries half-year 2026 earnings

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 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.

If you are lucky enough to have $20,000 to invest in the share market, then it could be a good idea to consider some exchange traded funds (ETFs).

But which ones could be worth a closer look? Let’s dig deeper into three ASX ETFs that could be top picks. Here’s what they offer:

iShares S&P 500 ETF (ASX: IVV)

The first ASX ETF to consider is the iShares S&P 500 ETF.

This fund tracks the famous S&P 500 Index, which includes 500 of the largest listed companies in the United States.

That gives investors access to some of the world’s most successful businesses across technology, healthcare, financial services, consumer products, industrials, and other industries.

Among its holdings are the likes of Nvidia (NASDAQ: NVDA), Walmart (NASDAQ: WMT), McDonald’s (NYSE: MCD), and Apple (NASDAQ: AAPL).

This could make it a great way to invest across the US market.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Another ASX ETF that could be worth a closer look is the Betashares Global Quality Leaders ETF.

This fund invests in global companies that demonstrate strong quality characteristics.

That includes businesses with high profitability, healthy balance sheets, and relatively stable earnings.

This could be a sensible approach to long-term investing, particularly in the current environment.

Companies with strong financial positions can often keep investing for growth during difficult economic conditions. They may also be better placed to take advantage of opportunities when weaker competitors are struggling.

The Betashares Global Quality Leaders ETF offers exposure to a portfolio of companies selected for these characteristics across developed markets.

It was recently recommended by the team at Betashares.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

A final ASX ETF to consider for the $20,000 is the Betashares Global Cash Flow Kings ETF.

This fund focuses on global companies that generate strong free cash flow.

Free cash flow is the money a business has left after paying its operating expenses and capital expenditure.

It can be an important indicator of financial strength. Companies generating significant free cash flow have more flexibility to invest in growth, pay dividends, buy back shares, reduce debt, or make acquisitions.

That can be particularly valuable during periods when economic conditions are challenging.

For investors looking to build wealth over the next decade, it could be an attractive way to back companies with strong underlying financial characteristics. It was also recently recommended by analysts at Betashares.

The post Where to invest $20,000 in ASX ETFs today appeared first on The Motley Fool Australia.

More reading

• Do you invest in ASX managed funds? Here’s something I wish I knew 10 years ago
• 4 most popular ASX ETFs revealed: survey
• How to make $26,000 of passive income from ASX shares
• 5 ASX ETFs to buy and hold forever
• What Warren Buffett can teach Australians about superannuation

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 Apple, Nvidia, Walmart, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Apple, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Argo Investments Ltd (ASX: ARG) has announced it will pay dividends every three months from the start of next year, while also flagging its dividend payments for the year ahead.

Dividend payouts to increase

The listed investment company said it intended to pay four, 10-cent, fully-franked dividends next year, increasing its dividend payments from this year’s 38.5 cents.

Argo’s Managing Director Jason Beddow said the move to quarterly dividends “will provide our shareholders with more regular income to help meet the evolving cash flow needs of many households, while also making Argo more attractive to prospective shareholders”.

Mr Beddow added that the 40-cent dividend payout next year would be another record high for the company.

Argo in FY26 posted a profit of $260.2 million, up from $259.8 million the previous year.

The company said its final dividend “includes a listed investment company (LIC) capital gain component of 5 cents per share, reflecting crystallised gains in the portfolio”.

Argo added:

When Argo realises a capital gain on the sale of a long-term holding in our portfolio, a capital gains tax discount can be passed on to shareholders as though they made the gain themselves. This allows most individuals and self-managed superannuation funds to claim a tax deduction, in addition to the benefit of franking credits. Please note, the LIC capital gain component of this dividend is unaffected by the recent changes to Australia’s capital gains tax (CGT) regime. Argo is engaging with government through our industry association to ensure we maintain our special status as a genuine long-term investor, rather than a trader, so we can continue to provide this benefit to our shareholders.

Trading gains locked in

Major additions to the Argo portfolio over the year included CSL Ltd (ASX: CSL), Amcor Ltd (ASX: AMC), and Megaport Ltd (ASX: MP1).

Sales included Rio Tinto Ltd (ASX: RIO), Reece Ltd (ASX: REH), and Macquarie Group Ltd (ASX: MQG).

Argo said it outperformed the S&P/ASX 200 Index (ASX: XJO) during the year.

The company said:

Argo delivered a full-year return of +8.7% based on net tangible assets (NTA) return after all costs and adjusted for company tax paid, outperforming the Index, which rose +6.1%, without allowing for any costs. The outperformance generated approximately $200 million in additional value for the portfolio. The biggest positive contributors to performance during the financial year were our positions in Rio Tinto, Macquarie Group and Lynas Rare Earths. Our underweight exposure to Commonwealth Bank relative to the Index also boosted returns as the bank’s share price retreated from its lofty valuations, following a sharp sell-off after the May Federal Budget.

Argo said it had outperformed the index over the past five years. The company is valued at $6.91 billion.

The post This outperforming ASX dividend stock will now pay out on a quarterly basis appeared first on The Motley Fool Australia.

More reading

• Starting with $20,000, how to build a portfolio generating $5,000 a year in passive income

Motley Fool contributor Cameron England has positions in CSL and Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, and Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has positions in and has recommended Amcor Plc. 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.