Owning National Australia Bank Ltd (ASX: NAB) shares has usually been a very useful choice for dividends over the years. Experts think the ASX bank share could continue to deliver pleasing passive income.

As an already-huge bank, the company does not have rapid growth prospects. The ASX bank share is able to send a lot of its profit each year to investors because there are not many places for the bank to invest for a good return. This results in a relatively low price/earnings (P/E) ratio.

Therefore, the business is able to support a generous dividend payout ratio for shareholders.

So, let’s look at projections on how generous the bank may be.

FY26

We’re more than halfway through the NAB 2026 financial year, which ends in September 2026, rather than June.

The ASX bank share has already told investors about its FY26 half-year result, which saw the bank report statutory net profit of $2.75 billion and underlying cash earnings of $3.6 billion. That represents 0.1% growth year-over-year and 2.3% growth half over half.

The bank reported that its growth was driven by its business and private banking segment, which delivered 9.9% cash earnings growth to $1.85 billion, thanks to lending volume growth, broadly stable margins and improved markets and fee income.

Within that result, NAB decided to maintain its dividend per share at 85 cents. That’s understandable considering underlying cash profit moved very little.

One of the biggest problems for the ASX bank share was its credit impairment charge of $706 million, partially as a result of potential stress related to the Middle East conflict.

In terms of the potential dividend for the 2026 financial year, the forecast on Commsec suggests the ASX bank share could pay an annual payout of $1.70 in FY26. That translates into a possible grossed-up dividend yield of 6.4%, including franking credits, at the time of writing.

That’s a solid level of passive income compared to many other passive income options, in my opinion.

FY27

The next financial year could be particularly interesting for investors, considering all of the global impacts on the economy and how interest rate changes could impact profitability.

According to the forecast on Commsec, the business could deliver a slightly higher annual dividend per share of $1.72. That translates into a potential grossed-up dividend yield of 6.5%, including franking credits, at the time of writing.

The projections also suggest the bank could deliver higher earnings per share (EPS) in both FY26 and FY27. The forecasts would put the NAB share price at under 15x FY27’s estimated earnings, at the time of writing, according to Commsec.

The collation of analyst opinions on NAB shares suggests there are currently two buy ratings, five sell ratings and nine hold ratings on the business.

Therefore, there could be better opportunities out there than NAB shares.

The post Here’s the dividend forecast out to 2027 for NAB shares 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.

Some ASX shares are forecast to deliver significant returns within the next year, so they could be great ones to look at.

Of course, an analyst’s projection is not a guarantee of returns. But, if an expert (or experts) believes the business is severely undervalued, then the company could be a market-beater.

Let’s look at two ASX shares that may materially outperform the S&P/ASX 200 Index (ASX: XJO) in the year ahead.

Resmed CDI (ASX: RMD)

Resmed is one of the world leaders when it comes to sleep apnea and CPAP (continuous positive airway pressure) machines.

According to CMC Invest, there have been nine ratings on the business within the last three months, with eight of them being a buy.

A price target is the analyst’s way of telling investors where they think the share price will trade in a year from the time of the investment call. The average price target of those nine ratings is $41.27, suggesting a possible rise of 55% over the next 12 months.

The Resmed share price has dropped 26% during 2026 to date, making it look much better value. That decline has led to the business looking much better value, despite ongoing strength of its financials.

In the FY26 third quarter, the ASX share reported revenue growth of 11% to $1.4 billion, with the gross profit margin improving 290 basis points (2.90%) to 62.2% and operating net profit growing 17% to $499.8 million.

IDP Education Ltd (ASX: IEL)

IDP Education describes itself as a global leader in international student placement and a co-owner of the world’s most popular “high-stakes” English language test, IELTS. It partners with universities and institutions across Australia, Canada, Ireland, New Zealand, the UK and the US.

According to CMC Invest, there have been five ratings on the business within the last three months, with four of those being a buy and one being a sell. The average price target is $4.12, which implies a possible rise of 61% over the next 12 months.

With how the IDP Education share price is down 55% this year, the business looks very attractive, according to analysts.

Despite the headwinds the global industry is facing, the ASX share recently announced a pleasing update.

It said it expects the FY26 adjusted operating profit (EBIT) to be approximately $122 million, with a strong yield performance and cost reduction mitigating the impact of market conditions.

IDP Education thinks its cost base can be reduced by a net $30 million in FY26, ahead of the $25 million target that was previously announced.

The ASX share also expected an on-market share buyback program of up to $50 million, which reflects its “robust balance sheet and strong cash generation”.

According to the forecast on CMC Invest, IDP Education shares are now valued at less than 12x FY26’s estimated earnings, with earnings growth forecast to rise 7% in FY27 and 27% in FY28.

The post 2 ASX shares tipped to grow 50% or more in the next 12 months 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 positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When an ASX share is rated as a buy, it’s interesting. When there are numerous buy ratings, that suggests there could be a compelling opportunity for investors.

While having the backing of multiple analysts does not automatically mean there will be strong returns, I think it certainly suggests to take a closer look.

Let’s consider two of the most-backed ASX shares Aussies can buy right now.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre is one of Australia’s largest travel agency businesses. It also has a presence internationally, as well as a corporate travel segment.

According to CMC Invest, there have been 10 ratings on the business within the last three months. Of those 10 ratings, nine of them were buys and one was a hold.

A price target can be very informative of how undervalued analysts think a business is, it says where the expert believes the share price will be trading in 12 months from the time of the investment call.

Currently, of those 10 analyst ratings, the average price target is $14.37. At the time of writing, that implies a possible rise of more than 20% over the next year.

The company recently updated its FY26 guidance amid the conflict-driven headwinds for international leisure travel.

It now expects underlying profit before tax (PBT) to be between $275 million to $295 million, this is lower than the previous guidance of between $310 million to $345 million, though the mid-point of the guidance is approximately the same as FY25’s figure.

The ASX share also announced it was launching a $200 million share buyback, which increases the value of each remaining share, by increasing earnings per share (EPS) and other per-share statistics.

Qantas Airways Ltd (ASX: QAN)

Another ASX share that is heavily rated by analysts is the ASX transport share Qantas, Australia’s leading airline.

The Middle East conflict has also been a headwind for the business, which impacted both long haul travel and increased fuel costs.

According to CMC Invest, within the last three months, there have been 11 ratings, with all of those being a buy.

The average price target on the airline is $10.94, which suggests a possible rise of 9% over the next year from where it is at the time of writing.

The latest update came from the business in mid-April where it said that fuel costs for the second half of FY26 are estimated to be between $3.1 billion to $3.3 billion.

It also noted that it continued to see strong demand for international travel to Europe as customers sought alternative routes. Qantas said it expected unit revenue growth in the second half of around 5%, with price rises helping offset the higher costs.

With fuel seemingly starting to flow out of the Strait of Hormuz again, this could help Qantas’ earnings in the medium-term and I think it bodes well for the ASX share.

The post 2 ASX shares highly recommended to buy: Experts 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 recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.