S&P/ASX 200 Index (ASX: XJO) shares are up 0.3% to 8,692.5 points on Monday.

The market fell to a 15-week low last week as bond yields soared and expectations of an interest rate rise increased.

The Reserve Bank of Australia will announce its next cash rate decision tomorrow at 2:30pm.

Meanwhile, if you’re looking for buy-the-dip inspiration, experts say these ASX stocks have big potential upside.

Zip Co Ltd (ASX: ZIP)

The Zip share price is $2, up 0.76% on Monday.

Over the past month, this ASX 200 financial share has fallen 21%.

UBS renewed its buy rating on Zip shares with a 12-month price target of $4.70.

This suggests a potential 135% upside ahead.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is $2.08, down 3.7% today.

Over the past month, this ASX healthcare share has fallen 16%.

Bell Potter has a buy recommendation on Mesoblast shares with a $4.45 target.

This implies the Mesoblast share price could double over the next 12 months.

Analyst John Hester issued an updated note following news of the T-Cell Proliferation Inhibition Assay (TIBA).

He said:

Mesoblast has announced FDA approval of an additional potency assay for Ryoncil.

MSB had not previously disclosed the development of this assay, however, it collaborated with the FDA on the project.

The assay will be equally applicable to the manufacture of rexlemestrocel-L.

MSB has extensive IP around both Ryoncil and Rexlemestrocel-L (aka Revascor).

Ryoncil carries Orphan Drug Designation and long life patents.

The development of the new TIBA assay further extends the moat around future revenues.

Xero Ltd (ASX: XRO)

The Xero share price is $57.79, up 0.75% today. 

Over the past month, this ASX 200 tech share has fallen 33%.

UBS renewed its buy rating on Xero shares with a $127 target.

This suggests a potential 120% upside ahead.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is $31.91, up 1.85% today.

Over the past month, this ASX 200 tech share has fallen 21%.

UBS has a buy rating with a $56 target on WiseTech shares.

This suggests a potential 75% upside ahead.

Ramelius Resources Ltd (ASX: RMS)

The Ramelius Resources share price is $3.82, down 1.29% today.

Over the past month, this ASX 200 gold mining share has edged 4% lower.

Canaccord Genuity upgraded Ramelius Resources shares to a buy call with a $6.15 target.

This indicates potential capital gains of 61% over the next year. 

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price is $161.81, up 0.5% today. 

This ASX 200 healthcare share has fallen 11% over the past month.

Citi renewed its buy rating on Pro Medicus shares with a $225 target.

This implies potential capital growth of 39% over the next year.

The post 6 ASX shares set to soar 39% to 135% appeared first on The Motley Fool Australia.

More reading

• How much could the Xero share price rise in the next year?
• Buy, hold, sell: Xero, South32, Woodside shares
• Could Mesoblast shares rise over 100% in 12 months?
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has positions in Zip Co. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owning Fortescue Ltd (ASX: FMG) shares has been a very rewarding experience when it comes to passive income over the last several years. It has delivered huge dividends thanks to the strength of the iron ore price.

Fortescue is now one of the purest ways to invest for exposure to the iron ore industry. These days, BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) both have large copper operations, which gives investors useful diversification.

Nearly all of Fortescue’s value is related to iron ore, and the upcoming dividends will be quite dependent on what happens with the resource price.

We’re going to take a look at what’s forecast for the FY27 Fortescue dividend.

Dividend projection

In FY26, the company reported revenue growth of 9% to US$17 billion, underlying operating profit (EBITDA) rose 9% to US$8.6 billion, operating cash flow improved 6% to US$6.8 billion, free cash flow jumped 25% to US$3.2 billion, underlying net profit after tax (NPAT) grew 3% to US$3.46 billion, and in Australian dollar terms, underlying earnings per share (EPS) only declined by 2% to A$1.66.

That led to the business reducing its annual dividend per Fortescue share by 2% to A$1.08, while keeping the dividend payout ratio at 65%.

The forecast on Commsec suggests a significant decline in the earnings and dividend in the 2027 financial year.

That projection shows EPS could drop to $1.32, which is expected to lead to a fall in the dividend. The estimate on Commsec suggests the annual payout could reduce to 84.6 cents per share, a cut of 22% compared to the FY26 level.

That projected amount suggests the business could pay a dividend yield of 5.2% excluding franking credits and 7.4% including franking credits.

What would a $6,000 investment in Fortescue shares unlock in dividends?

The Fortescue share price is now a lot cheaper, it has dropped 26% this year. When share prices fall, the dividend yield gets a boost. So, prospective investors could still get an appealing dividend yield due to the decline in the Fortescue share price.

Buying $6,000 of the ASX mining share would allow an investor to buy 366 Fortescue shares, with a little bit of change left. If Fortescue does pay that projected amount of 84.6 cents, then it would create $309.64 dividend cash and $442.34 overall income, including franking credits.

Analysts are, overall, quite neutral on the business. According to Commsec, there are currently two buy ratings on the business, 10 hold ratings and four sell ratings. Therefore, it looks like other ASX shares could be better opportunities to buy.

The post If I buy $6,000 of Fortescue shares, how much dividend income will I receive? appeared first on The Motley Fool Australia.

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• Fortescue vs Wesfarmers: Which ASX share is better for passive income in 2026?
• What do brokers tip for Fortescue shares over the next 12 months?
• Fortescue vs Commonwealth Bank: Which is best for passive income?
• 3 ASX dividend shares offering gross yields of 8% or more

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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Steadfast Group vs AUB Group shares: Which insurance broker offers better value?

Choosing between Steadfast Group Ltd (ASX: SDF) and AUB Group Ltd (ASX: AUB) can be a tough ask for investors focused on Australia’s bustling insurance broking industry. Both are heavyweights with strong broker networks, proud dividend histories, and a growing international presence. But when it comes to value for your investment dollar, how do these two stack up? Here’s my take, with a focus on the numbers that really set them apart.

The case for Steadfast

Steadfast is the largest general insurance broker network and group of underwriting agencies in Australia and New Zealand, with a footprint spanning more than 430 brokers and around 2,000 offices according to its most recent public description. The company’s reach extends to Singapore, the UK, Germany, and more recently, the United States – thanks to recent acquisitions and the rollout of the ISU Steadfast brand.

Standout fundamentals for Steadfast Group:

• Market capitalisation sits at $6.38 billion, making it the biggest listed player in its patch.
• P/E ratio of 23.58, which is relatively moderate for the sector.
• Dividend yield of 3.66%, fully franked.
• Year to date return of 12.49%, showing positive momentum in a tough market.

Steadfast also offers 100% franking on all dividends, and its payout has steadily increased over recent years based on the data provided. The group acts not just as a broker but a consolidator, directly owning stakes in a host of its network businesses.

The case for AUB

AUB Group is another major insurance services player, boasting a significant broker network across Australia, New Zealand, the US, the UK, and Europe. According to its most recent profile, the AUB network covers more than 570 locations and writes a substantial amount of gross written premium. Like Steadfast, AUB holds equity stakes in partner brokerages and various underwriting agencies.

Key fundamentals for AUB:

• Market cap of $3.63 billion, about half the size of Steadfast.
• P/E ratio of 36.74 – noticeably higher than Steadfast’s.
• 3.41% fully franked dividend yield.
• Year to date return of -3.51%, marking a negative trend so far this year.

AUB also boasts 100% franking and a long, reliable record of dividend payments, with the most recent full-year payout reaching $0.98 per share.

Valuation comparison

Here’s how these two insurance brokers shake out on the key numbers:

Metric	Steadfast Group	AUB Group
Market Cap	$6.38 billion	$3.63 billion
P/E Ratio	23.58	36.74
EPS	0.243	0.782
Dividend Yield	3.66% (100% franked)	3.41% (100% franked)
Dividend per share	$0.21	$0.98
YTD Return	12.5%	-3.5%

A few things stand out: Steadfast trades at a significantly lower P/E ratio than AUB. Both companies’ dividends are fully franked, though AUB pays out a higher absolute amount per share, likely due to its higher share price. The dividend yields are similar, but Steadfast edges slightly higher.

Note: AUB Group’s reported P/E ratio (36.74) and EPS (0.782) suggest a price much higher than the current trading level. Steadfast’s P/E and EPS also don’t exactly align. The disparity could be due to differences in the way the earnings figure is calculated for each ratio (for example, normalised or forward earnings).

Recent share price performance

Comparing recent share price activity up to 24 September 2026:

• Steadfast Group closed at $5.74, up 12.5% for the year to date, with steady, gentle gains through September and limited volatility.
• AUB Group finished at $27.81, down 3.5% YTD, and experienced more price swings, including a notable -3.24% drop on the last trading day.

Which is the better buy?

If I’m focused on value – especially relative to fundamentals and recent performance – my pick would be Steadfast. The company is larger, has positive momentum (up 12.5% YTD), and trades on a much lower P/E ratio than AUB Group. While AUB pays out a larger absolute dividend per share, Steadfast actually offers a higher yield based on the current share price, and both are 100% franked.

I like that Steadfast is not only maintaining but steadily increasing its dividend, and its international expansion appears to be gaining traction. On the flip side, AUB is a high-quality business but, at the time of writing, seems to be priced at a premium and has lagged on recent performance. Unless you have a strong reason to pay up for AUB’s earnings growth or international footprint, I’d lean towards Steadfast as offering better bang for your investment buck right now.

The post Steadfast vs AUB: Which insurance broker offers better value? appeared first on The Motley Fool Australia.

More reading

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• Why these ASX shares are worth watching closely today

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Aub 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 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.