Fortescue Ltd (ASX: FMG) shares have faced some strong headwinds over the past six months.

The shares are now just shy of a 52-week low, at $16.27 a piece. For the year-to-date they’re down around 27%.

The shares have tumbled around 21% since early April, at the time of writing, driven by a sharp drop off in iron ore prices over the same period.

According to Trading Economics, iron ore spiked to a two-year high of around US$111 per tonne in mid-May, before crashing to around US$94 per tonne in early August. Since then, it has risen slightly, but the metal is still around US$96 per tonne at the time of writing.

Ongoing conflict in the Middle East has also put downward pressure on shares, driven by concerns about rising costs, oil costs and supply, and general market uncertainty.

But it’s not all bad news.

Fortescue shares can offer investors more than just share price growth. The miner can also offer attractive passive income.

What makes Fortescue an attractive passive income player?

The miner generates a substantial cash flow from its large iron ore operations and it is able to return a significant portion of its profits to shareholders through regular dividends.

Fortescue is also actively diversifying its business beyond iron ore and into other markets, such as copper and renewable energy, which could reduce its reliance on iron ore over the long term and strengthen its bottom line.

But exactly what sort of passive income could you get from a $10,000 investment into Fortescue shares?

Let’s take a look.

How many Fortescue shares can I buy with $10,000?

Using the $16.27 share price at the time of writing, $10,000 will buy around 614 shares.

What dividend does the miner pay its shareholders?

The ASX iron ore miner pays its shareholders two fully-franked dividends every year, in March and September. The miner has a policy of returning 50% to 80% of its net profit after tax to shareholders as dividends.

Fortescue paid its most recent dividend to shareholders in late-September. The final 46 cent fully-franked dividend, combined with the 62 cent fully-franked dividend paid out in March, brings the miner’s total FY26 dividend to $1.08 per share. 

That translates to a dividend yield of around 6.6% at the time of writing.

Current forecasts suggest the company’s total dividend per share could fall to 86.4 cents in FY27, driven by lower iron ore prices. 

Based on the current share price, that translates to a forward dividend yield of around 5.3% for FY27.

What passive income can I earn off a $10,000 investment in Fortescue shares?

If the mining giant pays the forecasted 86.4 cent dividend in FY27, then a $10,000 investment (or 614 shares) will generate around $530 in passive income. 

The post If I invest $10,000 in Fortescue shares, how much passive income could I earn in FY27? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Fortescue, Westpac, CSL shares
• If I buy $6,000 of Fortescue shares, how much dividend income will I receive?
• How much do I need in ASX dividend shares to receive $15,000 passive income per year?
• 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?

Motley Fool contributor Samantha Menzies 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.

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was on form and edged higher. The benchmark index rose 0.9% to 8,789.3 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to fall

It looks set to be a poor start to the month for Australian investors following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 48 points or 0.55% lower this morning. In the United States, the Dow Jones fell 0.85%, the S&P 500 dropped 0.25%, but the Nasdaq rose 0.25%.

ASX 200 shares paying dividends

A number of ASX 200 shares are rewarding their shareholders with dividends on Thursday. This includes diversified food company Bega Cheese Ltd (ASX: BGA), appliance manufacturer Breville Group Ltd (ASX: BRG), drinks giant Endeavour Group Ltd (ASX: EDV), and job listings leader Seek Ltd (ASX: SEK). The latter is paying 25 cents per share to shareholders.

Oil prices rise

ASX 200 energy shares including Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) could have a decent session after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 1.1% to US$90.35 a barrel and the Brent crude oil price is up 0.9% to US$103.50 a barrel. Doubts over US-Iran peace talks were behind the rise.

Buy Liontown shares

Liontown Ltd (ASX: LTR) shares are undervalued according to Bell Potter. This morning, the broker has retained its buy rating on the lithium miner’s shares with a trimmed price target of $1.70. It said: “LTR’s EV is lagging the recent recovery in lithium markets and expected tight supplydemand fundamentals. When LTR was trading at its current EV in October 2025, SC6 prices were US$820/t and net debt was $274m. Since then, the Kathleen Valley underground ramp-up has been further de-risked and spot SC6 prices are above US$1,700/t. While we expect lithium markets will be volatile, market fundamentals remain strong. Over FY27, LTR will continue to ramp up and de-risk Kathleen Valley, a highly strategic asset in terms of scale, long project life and location in a tier-one mining jurisdiction.”

Gold price edges higher

It could be a positive day for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price edged higher overnight. According to CNBC, the gold futures price is up 0.2% to US$4,189.5 an ounce. Cooler inflation data boosted the precious metal.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why has the ASX 200 jumped to its highest level in 3 weeks?
• Why are Northern Star shares rocketing 8% on Wednesday?
• Expert names Woodside and CSL shares as top buys today
• Liontown Resources approves $389m Kathleen Valley lithium expansion

Motley Fool contributor James Mickleboro has positions in Endeavour Group and Woodside Energy Group Ltd. 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.

Adairs vs Temple & Webster Group shares: Which retailer is better in October?

Australians shopping for homewares and furniture are often choosing between Adairs Ltd (ASX: ADH) and Temple & Webster Group Ltd (ASX: TPW). That makes their shares equally interesting for investors keen on the retail sector, especially as both names are now staples in bedding, furniture, and décor. So, if you’re weighing up Adairs vs Temple & Webster Group shares right now, let’s unpack their standout differences to see which might be the pick heading into October.

The case for Adairs

Adairs is a well-known bricks-and-mortar and online homewares retailer in Australia and New Zealand. With a presence in more than 170 stores (as suggested by its company profile) plus a solid e-commerce platform, Adairs offers everything from bedding and towels to lighting, furniture, nursery gear, and pet products. Its brands — Adairs, Mocka, and Focus on Furniture — give it a broad reach across budget and mid-market segments.

What’s striking about Adairs in this snapshot is its dividend profile. The company’s dividend yield sits at 8.91%, and all its dividends are fully franked — an appealing feature for Aussie investors who prefer those tax credits. Notably, the dividend per share for the most recent period was $0.12, with payments historically consistent and fully franked.

However, Adairs shows an earnings per share (EPS) of -0.222, putting it in negative earnings territory based on the figures provided. Its market cap stands at $229.52 million, with a P/E ratio of 14.33 (though with negative EPS, this may reflect alternative earnings metrics).

Year to date, Adairs’ shares are down 20.4%, which suggests a softer period for sentiment or profit, but could also potentially offer value for turnaround seekers.

The case for Temple & Webster

Temple & Webster is Australia’s leading online-only destination for furniture and homewares — it doesn’t operate physical stores. With a whopping range of over 200,000 products and “more than a million” Aussie subscribers (according to its most recent company profile), Temple & Webster has carved out a reputation for variety and e-commerce convenience. Its private label, Milan Direct, sits alongside curated branded pieces that cover office, living, lighting, wall art, and more.

Temple & Webster’s fundamentals show a market cap of $490.66 million, making it more than twice the size of Adairs by that measure. It is solidly profitable per the supplied EPS of 0.064. It’s worth noting, though, that Temple & Webster pays no dividend and has no franking, meaning investors are relying purely on share price appreciation for returns.

However, the P/E ratio is an eye-popping 121.04 — a figure that jumps off the page, and seems based on positive underlying earnings, though it may factor in forward or adjusted metrics given the EPS. Year to date, the company has suffered a very sharp fall of 69.3%, suggesting the market is penalising it for stalling growth or stretched valuation.

Valuation comparison

Here’s how the two line up on the most relevant valuation and shareholder return data:

Metric	Adairs	Temple & Webster
Market Cap	$229.52 million	$490.66 million
P/E Ratio	14.33	121.04
Earnings per Share	-0.222	0.064
Dividend Yield	8.91%	0.00%
Dividend Franking	100%	–
Year to Date Return	-20.4%	-69.3%

Note: Adairs Ltd’s P/E ratio is positive despite a negative EPS, which suggests the reported ratio may be based on an underlying or forecasted earnings figure not directly shown here.

Temple & Webster’s P/E, on the other hand, is exceptionally high, typical of fast-growth tech or online retailers — but only justifiable if growth resumes.

Recent share price performance

Comparing recent share price action up to September 2026:

• Adairs closed at $1.29 on 28 Sep 2026, down 0.78% for the day, and sunk 20.4% for the year to date.
• Temple & Webster Group closed at $4.21 on 28 Sep 2026, up a modest 0.24% for the day, but a whopping 69.3% lower year to date.

Both retailers have copped a battering, but Temple & Webster’s share price decline has been far steeper over 2026 so far.

Which is the better buy?

Both these retailers face tough market conditions, but if I had to choose in October, my pick would be Adairs. Here’s why:

Adairs offers a substantial, fully franked dividend yield near 9%, which softens the blow of recent price falls and provides steady income. Even as its share price has slipped this year, that yield looks enticing, especially compared with Temple & Webster’s zero dividend.

Temple & Webster still promises online growth and is much larger by market cap, but its P/E ratio is well over 120 — a level I can’t justify based on its current growth and the fact its shares have cratered nearly 70% this year. The lack of a dividend and severe negative momentum make it hard to see an immediate turnaround.

Both may recover if consumer sentiment improves, but for now, I’d lean towards Adairs as a better income and relative value play for October, especially if you’re after returns you can bank on regardless of what the share price does next.

The post Adairs vs Temple & Webster: Which ASX retail stock wins for October? appeared first on The Motley Fool Australia.

More reading

• Where I’d invest in ASX shares after the recent RBA rate rise
• This ASX retail stock is sliding today after a surprise CEO exit
• Temple & Webster vs Nick Scali: Which furniture share is better?
• Treasury Wine Estates vs Temple & Webster: Which beaten down ASX stock is better value?
• 3 ASX shares down 40% to 80% I’d buy on the cheap

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 Adairs and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Adairs. The Motley Fool Australia has recommended Temple & Webster 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.