Bell Potter has been busy running the rule over a number of ASX 200 shares.

The good news for two of them is that they have just been upgraded to buy ratings on Monday.

Here’s what the broker is recommending to clients:

Capricorn Metals Ltd (ASX: CMM)

The first ASX 200 share that has been upgraded is gold miner Capricorn Metals.

Bell Potter was pleased to see the company complete the Karlawinda Expansion Project on time. It said:

The new circuit is currently processing low grade ore and will transition to run of mine (ROM) grade ore over the next week, lifting to steady state throughput of 6.5Mtpa and a guided 150kozpa run-rate. This delivers the first leg of growth for CMM, lifting production from the KGP’s prior guided run-rate of ~120kozpa.

In response, the broker has upgraded the ASX 200 share to a buy rating with an improved price target of $18.10 (from $18.05). Based on its current share price of $15.40, this implies potential upside of almost 18%.

Commenting on its investment thesis, Bell Potter said:

CMM’s track record of capital efficient project development and operation can result in growth being priced in early and good value entry points to the stock hard to find. The current pullback offers such an entry point, in our view. We make minor upgrades to our FY27 forecasts, but the KGP completion is largely consistent with our expectations. EPS changes in this report are: FY27: +3%, FY28: 0%, FY29: 0%. Our NPV-based valuation lifts incrementally to $18.10/sh. We upgrade our rating to Buy, following a recent pullback in the share price. CMM is unhedged and debt free, fully funded to grow production from ~120kozpa to +400kozpa in FY29.

Codan Ltd (ASX: CDA)

Another ASX 200 share that has been upgraded by Bell Potter is metal detector manufacturer Codan.

According to the note, the broker has upgraded its shares to a buy rating with an improved price target of $60.00 (from $54.00).

Based on its current share price of $52.25, this implies potential upside of 15% for investors over the next 12 months.

Commenting on the upgrade, Bell Potter said:

We lift EBIT +0%/+4%/+8% across FY27/28/29e on higher Unmanned and Minelab Africa revenue and lower corporate costs, partly offset by lower Minelab ROW sales. TP rises on a target EBIT multiple of 45x, up from 40x, partly offset by a higher risk free rate.

We upgrade to Buy from Hold. Notwithstanding potential supply chain constraints in global electronics which CDA is “monitoring”, we expect current rapidly expanding production rates of Group 2 UAS to drive Communications revenue upgrades in 1H27/FY27. CDA trades at 32x EBIT, a full valuation without consensus upgrades.

The post 2 ASX 200 shares just upgraded to buy ratings appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• This ASX 200 share hit an all-time high yesterday. Is the sky the limit?
• Here are the top 10 ASX 200 shares today
• Viva Energy, Codan, AMP shares reach 52-week highs: How much higher can they go?
• Capricorn Metals shares: Karlawinda Expansion Project completes on time

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.

S&P/ASX 200 Index (ASX: XJO) shares are down 2.2% over 12 months.

Last week, the benchmark index fell to a 15-week low amid expectations of an interest rate hike tomorrow.

Some experts say a fifth rate hike for 2026 may be required in November to sufficiently quell inflation.

Meanwhile, Michael Gable from Fairmont Equities reveals new ratings on three ASX 200 stocks (courtesy of The Bull). 

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is up 35% over 12 months. 

Gable has a buy rating on this ASX 200 energy share. 

He commented: 

We turned bullish on crude oil prior to the war in Iran due to a looming imbalance between supply and demand.

The war has interrupted supplies, which has led to higher prices. I believe crude oil prices are likely to move higher in the absence of a peaceful and sustained resolution in the Middle East.

I acknowledge some investors doubt crude oil prices will move higher. However, as the largest energy stock on the ASX, buying support should continue to grow for WDS.

South32 Ltd (ASX: S32)

The South32 share price has risen 86% over 12 months. 

Gable has a hold rating on this ASX 200 mining share. 

He explained: 

South32 is a diversified miner with exposure to copper, aluminium, manganese, zinc, silver and lead. The company should benefit as base metal prices continue to trend higher.

The outlook also appears bullish, with the stock recently breaking to new highs.

The company has announced the sale of its aluminium value chain assets to Alcoa for up to $US5.6 billion. This leaves the possibility of a higher capital return to shareholders.

Underlying EBITDA grew by 28 per cent in full year 2026 when compared to the prior corresponding period.

Xero Ltd (ASX: XRO)

The Xero share price has tumbled 64% over 12 months. 

Gable has a sell rating on this ASX 200 tech share. 

He said: 

In my view, potentially increasing bond yields and interest rates will continue to be a headwind for technology stocks, such as XRO.

Fiscal year 2026 operating revenue increased 31 per cent on the prior corresponding period. However, net profit after tax fell 27 per cent.

The gross margin declined from 89 per cent to 83.9 per cent.

From a charting perspective, selling pressure follows share price rallies, so the downtrend may not yet be over at this point.

The post Buy, hold, sell: Xero, South32, Woodside shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Woodside vs Westpac: Which ASX share is better for passive income?
• 5 best ASX shares to buy in October
• How I’d build a $50,000 ASX share portfolio today
• Xero shares have crashed 64%. Here’s why I’m buying

Motley Fool contributor Bronwyn Allen 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.

I’m determined to build a large flow of dividend income in the years ahead. WCM Global Growth Ltd (ASX: WQG) is one of the main names I’m using to build passive income

When I’m thinking about building a stream of dividends, there’s normally a few factors I want to see.

For me, I’m looking for a strong dividend yield, a record of dividend growth, and strong prospects for further payout growth. Let’s run through why the listed investment company (LIC) ticks those boxes so effectively.

Good dividend yield

The ASX stock is already delivering impressive dividend payments to shareholders each year.

During the 2026 financial year, the LIC’s board of directors decided to pay investors four quarterly dividends during the year, totalling 8.52 cents per share.

At the time of writing, this trailing dividend yield translates into a dividend yield of 4% excluding franking credits and 5.8% including franking credits.

But that’s the past. I think investors should focus on what the business’s upcoming dividends could be, since those are the next payouts from the company.

Dividend growth

WCM Global Growth has an impressive dividend history with how it’s increasing its quarterly dividend payment every quarter.

The LIC recently announced its quarterly dividend for the quarter ended 30 June 2026 will be 2.35 cents per share.

It also announced what the next four quarters of dividends will be.

For the three months to September 2026, it will pay 2.45 cents per share.

For the three months to December 2026, it will pay 2.50 cents per share.

For the three months to March 2027, it will pay 2.55 cents per share.

For the three months to June 2027, it will pay 2.60 cents per share.

Those four dividends come to 10.1 cents per share, which translates into a grossed-up dividend yield of 6.9%, including franking credits, at the time of writing.

It also implies that the FY27 fourth quarter passive dividend income will be 10.6% higher than the FY26 fourth-quarter dividend.

Likely payout growth

Dividends are not guaranteed of course, but I think the investment style of the LIC makes it more likely that the business can deliver further dividend growth.

WCM is looking across the global stock market – a big hunting ground – for businesses that have an improving economic moat and a corporate culture that supports the strengthening of the economic moat.

One of the main ways that WCM measures whether a business is improving is looking to see whether it has a rising return on invested capital (ROIC).

Good investment returns make dividend growth much more likely, in my view.

Since the LIC’s inception in June 2017, its net return has averaged 15.6%. That’s been more than enough to pay good dividends and deliver capital growth.

$10,000 of annual passive income

Over the year ahead, I’m expecting WCM Global Growth to pay 10.1 cents per share over the next year.

If the LIC delivers that, then it would require 99,010 WCM Global shares to unlock $10,000 of annual passive income. I think that’d be a compelling investment to make because of the high-quality, global portfolio that it would come with and the pleasing level of passive income.

The post I’d buy 99,010 shares of this ASX stock to aim for $10,000 of annual passive income appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Wcm Global Growth. 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.