AGL Energy Ltd (ASX: AGL) and Origin Energy Ltd (ASX: ORG) have both had a pretty lacklustre past 12 months from a share price perspective, but you could argue they earn their place in a long-term portfolio given their decent dividend yields.

Macquarie has just released new research reports on each and has a slight preference for one over the other.

Let’s start by having a look at what they’re saying about AGL Energy shares, which they have an underperform rating on.

Challenging energy markets

The broker said in its new research note that the fundamentals for AGL remain challenging, with negligible growth in demand across the national electricity market, noting that AGL’s coal fleet generation was down 12% in New South Wales and 15% in Victoria.

Macquarie is predicting power price declines in FY27 and said, “Without volatility, profitability for not only the assets like batteries but also gas plants will come under pressure as arbitrage and trading revenue shrinks”.

Macquarie added:

AGL remains in an FY28 downgrade cycle. Recent improvements in power prices may moderate the pace, but it remains material. Volatility remains low due to battery penetration and weather conditions, and without it, battery earnings will also be lower.

Macquarie has a 12-month price target of $8.10 on AGL shares compared to $8.51 at the time of writing.

They are predicting a 5.8% dividend yield this financial year, then dropping to 3.6%, then 2.8%.

AGL is valued at $5.7 billion.

Origin the better of the two

Meanwhile, the broker has a neutral rating on Origin Energy shares.

They said the first quarter of FY27 appeared to have been a strong one for LNG production from the APLNG plant in Queensland and added that strength in the oil price was also a tailwind.

They said:

Oil price remains a positive for ORG … with the result being FY27 average should be ~US$100/bbl which translates to a revenue outcome nearly as good as the peak year of FY23. The strength of the cashflow in FY27 we think should be able support a sustained increase in ORG dividend to at least $0.62 per share.

Macquarie said Origin would be impacted by the higher cost of coal, while gas might also be a surprise source of weakness.

They added:

APLNG is providing ample cashflow, electricity market looking a little better, but this is framed within the context of a weak FY28. Upside is El Niño weather pattern creates volatility, re-igniting cap prices and gas/battery earnings. Risk remains that the oversupply in electricity market prevails, lasting until FY30.

Macquarie has a price target of $11.10 on Origin shares compared with $11.26 at the time of writing.

Macquarie is predicting a 5.7% dividend yield this financial year, which they expect to moderate to 5.5% next year.

Origin is valued at $19.6 billion.

The post Which does Macquarie prefer out of AGL and Origin? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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 Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owners of Westpac Banking Corp (ASX: WBC) shares normally receive a pleasing level of dividend income each year. 2027 could be another rewarding year for the ASX bank share.

The largest Australian banks usually have generous dividend payout ratios, partly because they don’t have many places to invest profit generated at a strong return. Plus, plenty of individual investors are looking for passive income (including the franking credits).

Let’s take a look at what the ASX bank share is forecast to pay in 2027.

Dividend forecast for Westpac shares

The company’s dividend has grown in most of the years this decade and I’m sure shareholders are hoping for another increase in 2026.

The ASX bank share is facing economic volatility amid an elevated cost-of-living and higher interest rates. It’ll be interesting to see how Westpac’s financials handle the current situation.

We haven’t seen the 2026 financial year annual dividend yet because the ASX bank share’s FY26 only just finished at the end of September 2026, so we’ll find out what those numbers are in the next few weeks when it reports.

According to the projection on CMC Invest, owners of Westpac shares are forecast to see a $1.55 dividend per share related to FY26.

Pleasingly, analysts are expecting a larger dividend for investors in the 2027 financial year. According to the forecast on CMC Invest, the business is forecast to grow its annual dividend by 1.6% to $1.575.

At the time of writing, that translates into a dividend yield of 4.7% excluding franking credits and 6.7% including franking credits. That’s a solid dividend yield compared to the S&P/ASX 300 Index (ASX: XKO), which has a dividend yield of just over 3% (excluding franking credits).

If someone were to invest $6,000 in Westpac shares, they would unlock sizeable passive income, according to the projections.

At the time of writing, an investor would be able to buy 177 Westpac shares (with a little bit of cash left).

Excluding franking credits, 177 shares of the bank could deliver $278.78 of dividend cash. Including franking credits, it could be $398.25 of grossed-up dividend income.

Is this a good time to invest in Westpac shares?

According to CMC Invest, there have been eight ratings on the business. Of those ratings, one was a buy, two were a hold and five ratings were a sell. The average price target of those eight analysts is $34.23, suggesting a rise of around 1% over the next year (at the time of writing).

Therefore, it’s not cheap and may not deliver market-beating returns. But, it could still deliver solid passive income.

The post If I buy $6,000 of Westpac shares, how much dividend income will I receive in 2027? 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.

UBS has just released a new research report naming their top ASX large-cap stocks.

The report takes into account the results from the most recent earnings season, as well as the macroeconomic environment going forward.

The broker says they are the “most compelling” opportunities drawn from a wider list of 30 stocks.

Sectors they are avoiding include the banks and consumer stocks, which could be buffeted by higher interest rates.

But they see ongoing tailwinds for the industrial and mining sectors.

Let’s see who they like specifically.

BHP Group Ltd (ASX: BHP)

UBS likes BHP for its 55% exposure to copper, which is its preferred commodity.

They said they are “constructive on the fundamental outlook for copper (and) expecting a protracted period of elevated prices”.

They have a price target of $62 on BHP shares.

Charter Hall Group (ASX: CHC)

The broker says this company is trading on a lower price-to-earnings ratio than the S&P/ASX 200 Index (ASX: XJO) despite offering higher earnings per share growth in FY27.

They added:

Earnings per share growth will be much more resilient this hiking cycle due to a higher proportion of recurring earnings, resilient institutional capital flows and tailwinds from FY26.

UBS has a price target of $24 on Charter Hall shares.

Insurance Australia Group Ltd (ASX: IAG)

IAG is UBS’ top pick among the insurance companies, reflecting its robust home and motor policy pricing, leverage to higher bond yields, and potential upside from its proposed RAC acquisition.

If that deal does not go ahead, UBS said a buyback was possible.

UBS has a price target of $9.10 on IAG shares.

Light & Wonder Inc (ASX: LNW)

UBS said this gambling company was trading at a low multiple despite guiding to mid to high-single-digit earnings growth.

The broker said the industry had strong dynamics and iGaming was growing well.

The broker has a price target of $210 on Light & Wonder shares.

Mineral Resources Ltd (ASX: MIN)

UBS said MinRes is entering a “cash harvest” phase, which should support deleveraging and increased shareholder returns.

They added:

Governance concerns have eased, with a credible succession plan now in place. Combined with a materially improved outlook, the stock’s valuation appears increasingly attractive.

UBS has a price target of $72 on MinRes shares.

Megaport Ltd (ASX: MP1)

The broker said the company’s Latitude division was reshaping its earnings profile through long-duration AI compute contracts and accelerating annual recurring revenue growth.

They said guidance had been upgraded, with further upside risk, liquidity remains strong, and any incremental revenue carried high earnings conversion.

UBS has a price target of $29 on Megaport shares.

Orica Ltd (ASX: ORI)

UBS said it expected resilient global mine production activity and the integration of recent acquisitions to drive 7% compound growth over three years.

They have a price target of $27 on Orica shares.

Sigma Healthcare Ltd (ASX: SIG)

The broker said Sigma had ongoing sales strength across existing and new stores at Chemist Warehouse in Australia and overseas.

The company was also “leveraging structural tailwinds in back of store and health & beauty, plus gross margin expansion and operating leverage from cost management in time”.

UBS has a price target of $3.15 on Sigma shares.

Ventia Ltd (ASX: VNT)

The infrastructure services company, UBS said, had a growth outlook of 8% compound over three years, “supported by increased infrastructure investment, government outsourcing, and defence spending”.

UBS has a price target of $7 on Ventia shares.

The post UBS’ top nine ASX large-cap stock picks appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc and Megaport. The Motley Fool Australia has recommended BHP Group and Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.