Telix Pharmaceuticals Ltd (ASX: TLX) shares got smashed on Monday, plunging 12% to $15.76 after a blockbuster merger announcement. Zoom out, though, and the nuclear healthcare stock is still up 40% year to date — though that gain has shrunk to just 12% over 12 months.

So did the market overreact, or is this the start of something worse?

The deal

Here’s the short version: Telix just agreed to buy Germany’s ITM, one of the biggest players in radioisotope production, for US$1.65 billion.

And Telix isn’t paying with cash. It’s paying with shares – 105.8 million of them, worth about US$1.25 billion. On top of that, it’s taking on US$302 million of ITM’s debt, plus another US$96 million in transaction costs and management payouts.

That’s not all. Telix could end up paying a further US$700 million down the track. That will depend on how ITM’s cancer drug ITM-11 performs — up to US$250 million if it clears FDA approval across three indications, and up to US$450 million if sales blow past US$150 million by 2030.

Once the dust settles, current Telix shareholders will own about 76% of the combined company. ITM’s shareholders will get the other 24%.

Why the market panicked

In plain terms: Telix just diluted itself, big time. Issuing 105.8 million new Telix shares is a serious jump in shares on issue, and that’s really what was crushing the price on Monday. Not doubts about the strategy itself.

The deal still needs shareholder approval at a meeting expected in November, which adds a layer of ‘wait and see’. And the combined company’s 2026 revenue guidance of just over US$1.3 billion isn’t exactly blowing anyone away relative to the price tag. So investors are left weighing genuine strategic upside against real, near-term dilution.

CEO Christian Behrenbruch made the case for why it’s worth it:

ITM is the leader in radioisotope production, with deep scientific expertise and a track record of value-adding innovation. 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.

What do brokers think?

Brokers, for the most part, aren’t panicking. Five of the latest broker ratings are a buy — Canaccord Genuity, Citi, JPMorgan, UBS and Jarden, while RBC Capital is the lone hold.

Where they disagree is on price. Targets range from $19 all the way to $31, suggesting upsides between 21% and 97%. Canaccord just lifted its target to $30.25, Citi sits at $31 and JPMorgan is at $25.58. Jarden nudged up to $21, while UBS trimmed its target to $22 but kept its buy rating intact.

Foolish takeaway

Every one of those price targets sits well above where Telix shares trade today. Brokers clearly like the story, but they just can’t agree on the price tag.

The real test isn’t whether the ITM deal makes strategic sense. It probably does. It’s whether Telix can actually integrate a US$1.65 billion acquisition, hit ITM-11’s regulatory milestones, and prove the dilution was worth it.

Until then, this drop looks more like nerves than a verdict.

The post Telix shares just crashed 12% on merger news. Time to buy the dip? appeared first on The Motley Fool Australia.

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JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Marc Van Dinther 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 JPMorgan Chase and 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.

BHP Group Ltd (ASX: BHP) shares have handed investors some fantastic gains over the past 12 months.

On Monday, shares in the S&P/ASX 200 Index (ASX: XJO) mining giant were trading for $60.71 apiece. That sees the share price up an impressive 51.7% since this time last year, smashing the ASX 200’s 0.9% 12-month loss.

And that’s not including the two fully-franked interim dividends BHP paid out over this time.

Amid rising revenue and profits, BHP’s FY 2026 dividend payouts, totalling $2.419 a share, were up 41.6% from FY 2025. If you owned BHP shares at market close on 2 September, you can expect to see the final FY 2026 passive income payout hit your bank account this Wednesday, 23 September.

At Monday’s prices, BHP shares trade on a fully-franked trailing dividend yield of 4%.

So, after this stellar 12-month run, is the Aussie mining giant still a good buy today?

BHP shares: Buy, hold, or sell?

Catapult Wealth’s Dylan Evans recently analysed the outlook for the booming miner, which now counts as the biggest stock by market cap on the ASX (courtesy of The Bull).

“The global miner’s full year results were impressive, with the company increasing revenue and profit,” he said.

Evans noted:

Growth was driven by the copper division, which is now the primary revenue generator for BHP. As a result, future earnings will be influenced by the copper price, but the price should be underpinned by several long-term themes, including electrification and growing digital infrastructure.

But, following on the strong one-year run, Evans issued a hold recommendation on BHP shares for now.

“BHP is a core holding. However, the share price has risen substantially in the past 12 months to the point where it can appear expensive,” he concluded.

What’s the latest copper news from the ASX 200 mining stock?

As Evans mentioned above, FY 2026 marked the first year in which copper surpassed iron ore in driving BHP’s earnings and supporting BHP’s share price growth.

Commenting on its copper operations, the ASX 200 mining stock noted:

Spot copper prices on average were 26% higher in FY26, with H2 FY26 experiencing increases of nearly 40% as copper moved to >US$13,000/t (US$5.90/lb). The copper price continues to be supported by strong fundamentals on the demand and supply side, driven by a compelling narrative for copper-intensive sectors, particularly electrification and data centres and the risk of future supply deficits.

BHP reported a 48% year-on-year increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) from its copper division to US$18.2 billion. That saw copper production contribute 54% of BHP’s total underlying EBITDA in FY 2026.

The post Up 52% and paying dividends: Are BHP shares a buy, hold, or sell 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Origin Energy vs AGL Energy shares: Which is better for income investors?

Choosing between Origin Energy Ltd (ASX: ORG) and AGL Energy Ltd (ASX: AGL) is a classic income investor’s dilemma. Both are household names powering millions of Australian homes and businesses, with long histories and significant roles in the nation’s energy mix. If you’re seeking reliable, fully franked dividends and are keen to understand which business stands out in the current market, here’s what I found as I weighed up the two.

The case for Origin Energy

Origin Energy is one of Australia’s largest integrated energy companies, spanning electricity generation, natural gas supply, renewables, and retailing energy to homes and businesses. Alongside a strong presence across Australia, it also has operations in the Pacific and PNG. Origin’s company profile points to a diverse energy mix and a focus on both traditional and renewable energy sources.

Looking at the numbers, a few strengths pop out for income investors:

• A market capitalisation of $20.23 billion signals a large, stable business.
• A healthy 5.07% dividend yield, with the all-important 100% franking, means eligible shareholders receive the full tax credit benefit.
• A recent dividend per share of $0.60 is supported by an earnings per share figure of $0.912 and a P/E ratio of 12.97, indicating solid earnings coverage for those dividends.

Origin has a history of consistent, fully franked dividends. In 2023, 100% franking returned after a period of lower or nil franking seen in previous years. Its year-to-date return is also up 8.2%, providing a hint of positive sentiment.

The case for AGL Energy

AGL Energy is one of Australia’s oldest and most well-known energy brands, with operations dating back to 1837. Today, it generates, trades, and retails electricity and gas, with assets ranging from coal and gas generation to wind farms and hydro. Its retail business is a major player in both residential and business power markets.

Some notable figures for AGL right now:

• Market cap is $5.64 billion; much smaller than Origin, but still within the ASX100.
• Dividend yield sits at 6.00% – even higher than Origin’s – and likewise is now 100% franked.
• Despite paying a slightly lower dividend per share than Origin ($0.52 vs $0.60), AGL’s earnings per share is a solid $1.122. Its P/E ratio is 7.42, which is lower than Origin’s.

AGL’s dividend history has been more volatile in terms of franking — recently, franking has flipped back to 100% for the 2026 payments after several years of unfranked dividends. Its share price, however, has struggled year-to-date, down 5.2%.

Valuation comparison

Here’s how two stack up on key valuation and dividend numbers:

Metric	Origin Energy	AGL Energy
Market Cap	$20.23 billion	$5.64 billion
P/E Ratio	12.97	7.42
Dividend Yield	5.07% (100% franked)	6.00% (100% franked)
Dividend per Share	$0.60	$0.52
Earnings per Share	0.912	1.122
YTD Return	8.2%	-5.2%

Both companies now offer fully franked dividends, but AGL nudges ahead on yield. Origin, though, commands a premium on size and has outperformed AGL sharply over the year. Also, note: While AGL’s EPS is higher, its P/E is much lower than Origin’s, suggesting the market is less optimistic about its future growth or is factoring in other risks.

Recent share price performance

For the fortnight ending 17 September 2026, both Origin and AGL saw modest day-to-day moves:

• Origin shares finished at $11.74 on 17 Sep 2026, climbing from $11.57 on 11 Sep (a 1.5% rise), with a YTD return of 8.2%.
• AGL shares ended at $8.39 on 17 Sep 2026, down from $8.40 on 11 Sep (virtually flat), and have fallen 5.2% year-to-date.
• Over this period, Origin showed steadier resilience and mild upward bias, while AGL shares have softened both short-term and YTD.

Which is the better buy?

Looking at the numbers, I’m leaning toward Origin Energy as the better bet for income-focused investors. The reasons? While AGL offers a slightly higher dividend yield (6.0% vs 5.1%), I’m encouraged by Origin’s combination of steadier share price gains, greater market heft, and a fully franked, consistently paid dividend that looks well-covered by earnings. AGL’s low P/E might tempt value hunters, but its negative year-to-date return and bounce-back to full franking only very recently leave me a bit cautious on dividend reliability.

Importantly, both companies now pay 100% franked dividends, and both earnings and dividend payout levels look sustainable at present. But if I had to pick one to tuck away for dividend income and sleep soundly, my choice today would be Origin Energy — a larger flagbearer showing better price momentum and a reliable, franked payout for income seekers.

The post Origin Energy vs AGL Energy: Which ASX dividend stock is better for income? appeared first on The Motley Fool Australia.

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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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. 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.