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.

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• 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.

If you are looking for big potential returns, then Mesoblast Ltd (ASX: MSB) shares could be worth considering.

That’s because the team at Bell Potter believes this biotechnology company’s shares could more than double in value over the next 12 months.

What is the broker saying?

Bell Potter notes that the US FDA has approved an additional potency assay for Ryoncil. It was pleased with the news, given its past experience with potency assays. It explains:

Investors familiar with the journey of Ryoncil through the FDA will be painfully aware of the delays to commercialisation, attributable at least in part, to perceived shortcomings in the then potency assays. Potency measurement is complex in a biological asset, particularly where the starting material may differ from batch to batch and with a multifactorial mechanism of action. 

MSB had not previously disclosed the development of this assay, however, it collaborated with the FDA on the project. The assay will be part of a quality control matrix for the release of each batch of Ryoncil in conjunction with the existing potency assays for IL-2Ra inhibition and CAP (Cell Adhesion and Proliferation). At its core, Ryoncil is a highly potent anti-inflammatory designed to suppress multiple mechanisms of the immune system response to a bone marrow graft by the host, including the proliferation of host T-cells which form part of the cytokine storm that occurs during severe GvHD.

The broker feels this could be a major de-risking event. It adds:

In practical terms, the assay completes the QA circle and represents a significant derisking event. The company is entirely dependent on a single manufacturing site at Lonza, Singapore for the production of Ryoncil. The new assay pavs the way for MSB to commission a second manufacturing site, most likely in the US. We expect this may commence with a second contract manufacturer. The assay allows the company to further tighten the manufacturing specifications on commercial batches.

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.

Should you buy Mesoblast shares?

According to the note, in response to the news, the broker has retained its buy rating and $4.45 price target on Mesoblast shares.

Based on its current share price of $2.16, this implies potential upside of 106% for investors over the next 12 months.

The post Could Mesoblast shares rise over 100% in 12 months? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Mesoblast wins FDA nod for new Ryoncil potency test
• 2 ASX 200 shares tipped by brokers to return 73% and 83%
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• 7 ASX healthcare stock picks from Bell Potter

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.