Medibank Private Ltd (ASX: MPL) shares could be one of the most underrated options for passive income on the ASX because of its dividend yield, in my view.

Medibank is the largest private health insurer in Australia, through two brands – Medibank and ahm.

For a variety of reasons, I believe Medibank may be one of the most underrated ASX dividend shares within the S&P/ASX 200 Index (ASX: XJO).

Regular dividend growth

I think one of the most important factors when it comes to passive income is consistency.

If I’m investing in something primarily for the passive income, then I want to have a high level of certainty that the dividends will continue flowing in all economic conditions, including when times become leaner.

There’s no guarantee of dividend payments, of course – they are not term deposits or annuities.

But I think some businesses are more likely to deliver regular payouts than others. Firstly, some businesses may already have a long dividend growth record they want to continue. Second, specific ASX shares operate in sectors that provide more predictable, defensive earnings. Healthcare is fairly defensive.

Medibank has increased its dividend every financial year (except for FY20) since its listing in FY15. It has a good track record of regularly increasing the payout.

In FY26, the business decided to hike its annual dividend per share by 6.7% to 19.2 cents. Earnings per share (EPS) jumped 27.5% to 23.2 cents, while underlying EPS grew 2.9% to 23.1 cents.

Good dividend yield

If Medibank continues to increase its payout each year, the dividend yield for long-term shareholders could keep improving.

The company’s 6.7% increase in the dividend was pleasing, considering the dividend yield was already at a pleasing level.

At the time of writing, and based on the current Medibank share price, the business has a FY26 grossed-up dividend yield of 6%, including franking credits. I expect the annual payout will grow in FY27.

Good outlook for growth in FY27

The ASX dividend share has provided outlook commentary suggesting further earnings improvement in the 2027 financial year.

Medibank said it aims to grow its resident policyholder market share in a disciplined way, including improved momentum for the Medibank brand. It also expects the FY27 resident private health insurance gross margin to be broadly consistent with FY27.

Non-resident private health insurance gross profit is expected to deliver solid growth in FY27.

With the compelling Medibank health division, segment profit growth is expected to be approximately 25% in FY27, partly due to a full-year contribution from Better Medical.

The ASX dividend share also expects to pursue further acquisition opportunities, which could help grow and diversify the overall business.

Overall, I think Medibank shares and its dividend yield are a compelling investment that I’d be happy to own for the long term.

The post Why I’d buy Medibank shares for the dividend yield 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.

The GQG Partners Inc. (ASX: GQG) share price is in focus after the global fund manager reported half-year revenue of US$397.2 million and net profit after tax of US$228.4 million for the six months ending 30 June 2026.

What did GQG Partners Inc. report?

• Revenue from ordinary activities: US$397.2 million, down 1.4% year on year
• Net profit after tax: US$228.4 million, down 0.8% year on year
• Average funds under management: US$164.5 billion, up 1.0% year on year
• Distributable earnings: US$234.9 million, down 0.7%
• Final dividend: US$0.0365 per share paid in March; interim dividend: US$0.0354 per share paid in June; new dividend declared: US$0.0362 per share, unfranked
• Net tangible assets per CDI: US$0.10 (30 June 2026), up from US$0.08

What else do investors need to know?

GQG Partners managed US$156.0 billion in assets at the end of June 2026, with net flows in the period negative at US$(15.1) billion. The business reported that all four major investment strategies trailed their benchmarks over one, three, and five years, mainly due to defensive positioning in volatile markets.

Operating expenses were tightly managed, falling 0.5% from the previous year. The company maintained a robust balance sheet with US$168.9 million in cash and no debt, and returned 90% of distributable earnings to shareholders through dividends.

What did GQG Partners management say?

Chief Executive Officer Tim Carver said:

It is my pleasure to share GQG’s results for the first half of 2026…Our business is headquartered in the United States, with offices in Australia, the United Arab Emirates, and the United Kingdom…We remain focused on delivering long-term value for clients through a disciplined investment process designed to compound capital across a range of market environments.

What’s next for GQG Partners?

Looking ahead, GQG Partners aims to stick with its active, benchmark-agnostic investment approach and continue building concentrated, high-conviction portfolios. Management highlighted opportunities for product innovation, especially in ETFs, following strong growth in its US Equity ETF.

The fund manager expects to maintain its disciplined cost base and strong dividend payout in line with its policy. GQG says it remains well positioned to serve and grow its diversified global client base, supported by a culture of co-investment and long-term value creation.

GQG Partners share price snapshot

Over the past 12 months, GQG Partners shares have declined 18%, trailing the All Ordinaries Index (ASX: XAO).

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The post GQG Partners: 2026 half-year earnings appeared first on The Motley Fool Australia.

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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 Gqg Partners. 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 summary of the company announcement. 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.

The Arena REIT (ASX: ARF) share price is in focus today after the company posted an 8% lift in net operating profit to $79.1 million and hiked its distribution per security by 5.5% for FY2026.

What did Arena REIT report?

• Net operating profit (distributable income) of $79.1 million, up 8% on FY2025
• Statutory net profit of $132 million, up 62% year over year
• Operating earnings per security (EPS) of 19.60 cents, up 5.7%
• Distributions per security (DPS) of 19.25 cents, up 5.5%
• Total assets grew to $2.0 billion, up 8%
• Net Asset Value (NAV) per security rose to $3.60, up 4%

What else do investors need to know?

Arena finished the year with a strong balance sheet, reporting low gearing of 24.5% and a 100% portfolio occupancy rate. The company’s portfolio of 307 properties posted a valuation uplift of $47.4 million, with a weighted average lease expiry of 17.5 years.

The Edge Early Learning portfolio, comprising 31 properties (14% of Arena’s annual rental income), has hit some turbulence after Edge failed to pay August rent. Arena has issued default notices and taken steps to protect its income and assets, including signing new lease agreements for two newly developed centres. Management has also reaffirmed that its legal rights and security arrangements are in place.

Arena saw active portfolio management during FY2026: eleven early learning centre (ELC) properties were divested for $53.5 million at a premium, while the company completed $87 million in development projects and maintains a pipeline of 29 projects.

What did Arena REIT management say?

Managing Director Justin Bailey commented:

FY2026 delivered strong growth in earnings, distributions and net assets, underpinned by contracted rental growth, development completions and active portfolio management. Throughout the year we continued to improve portfolio quality through disciplined capital allocation, development activity and targeted divestments.

What’s next for Arena REIT?

Arena is guiding for a FY2027 distribution of at least 18.0 cents per security. This conservative outlook factors in the uncertainty around the Edge portfolio and assumes no income from those properties beyond the existing security pool.

Looking ahead, Arena says it will focus on resolving the Edge Early Learning situation, carefully managing its portfolio through the current market environment, and progressing its development pipeline. The company also continues to prioritise a strong balance sheet and disciplined investment decisions.

Arena REIT share price snapshot

The Arena REIT share price has significantly underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of 40%.

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The post Arena REIT FY2026 earnings: profit up 8%, distributions higher appeared first on The Motley Fool Australia.

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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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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.