WAM Leaders vs Growthpoint Properties Australia shares: Which high-yield stock looks better for passive income?

Everyday Aussie investors love the idea of building passive income from high-yield shares. Right now, WAM Leaders (ASX: WLE) and Growthpoint Properties Australia (ASX: GOZ) both offer eye-catching yields, but they go about it in different ways. Whether you’re chasing franking credits, steady long-term income, or resilience against market wobbles, these two income stocks deserve a closer head-to-head. Here’s what I see as the key differences between WAM Leaders vs Growthpoint Properties Australia shares, and which one looks most compelling for passive income right now.

The case for WAM Leaders

WAM Leaders is a listed investment company (LIC) focused on delivering both regular dividends and capital growth by investing in undervalued large-cap Australian companies. Since starting in 2016, it’s made a name for paying reliable, fully franked dividends—a big plus for Aussie investors who value franking credits to boost after-tax returns. The company’s stated goals are to preserve capital and generate income streams for shareholders.

Looking at the most eye-catching fundamentals:

• The current trailing dividend yield sits at 7.3%, fully franked—a major attraction for income seekers, as it means more in your pocket after tax.
• Market cap comes in at about $2.05 billion, so it’s solidly mid-sized but not a giant.
• Importantly for some, every dividend in recent years has been 100% franked, a consistency I really appreciate.

Dividends have been on a rising trend, growing steadily from $0.01 per share in 2017 to $0.048 most recently (as of April 2026). This LIC has kept its focus squarely on delivering shareholder income, with interim and final dividends twice a year.

The case for Growthpoint Properties

Growthpoint is a property trust (REIT) with a big portfolio of office and industrial properties across Australia, plus a growing funds management side. Its model is about generating steady rental income and passing a generous slice of that on to investors via distributions. The headline is its very high dividend yield—an outcome of both a juicy payout ratio and the recent softness in property share prices.

Here are the standout fundamentals:

• Growthpoint’s trailing dividend yield is currently an impressive 9.53% (as per the latest supplied figures).
• The company’s market cap is roughly $1.46 billion, a touch smaller than Wam Leaders.
• However, unlike WAM Leaders, Growthpoint pays unfranked distributions—so income isn’t boosted by franking credits.

The dividend track record is strong in absolute dollar terms, with distributions consistently paid twice a year. Over the last decade, annual dividends per share have ranged from $0.06 to around $0.18 per share. The most recent payment (June 2026) was $0.092 per share, unfranked.

Valuation comparison

There are some sharp differences in value and yield when you put the two side by side:

Metric	WAM Leaders	Growthpoint Properties
P/E Ratio	N/A	16.22
Dividend Yield	7.3% (fully franked)	9.53% (unfranked)
Market Cap	$2.05 billion	$1.46 billion
Franking	100%	0%
EPS	N/A	0.119
Dividend per Share	N/A	0.18

It’s worth noting that WAM Leaders doesn’t report a conventional P/E or EPS in the data supplied, likely because LICs typically report net tangible assets (NTA) and realised gains instead. Growthpoint’s reported P/E of 16.22 appears reasonable for a property trust, but since REIT earnings can fluctuate with asset revaluations, that ratio may not tell the complete story.

Recent share price momentum

Comparing recent share price performance up to 9 October 2026:

• WAM Leaders closed at $1.27 on 9 October 2026, down from $1.29 two weeks prior, with only a modest -0.78% change on the day. Year to date, it’s eked out a positive 1.5% return.
• Growthpoint Properties Australia closed at $1.93 on 9 October 2026, up slightly (0.52%) on the day, but year to date the shares have dropped sharply, down -17.1%.

So while both can be a bumpy ride in the short term, WAM Leaders has actually delivered a small positive return this year, whereas Growthpoint has taken a significant hit.

Which is the better buy?

For someone purely chasing the highest upfront income, Growthpoint Properties Australia’s 9.53% dividend yield looks too good to ignore—at least on paper. But that yield comes unfranked, making it less attractive after tax for most Aussies, especially compared to WAM Leaders’ 7.3% fully franked payout. Once you factor in franking credits, WAM Leaders’ “grossed up” income stream looks just as attractive if not better for many investors.

What could tip the scales for me is the combination of dividend quality and share price resilience. Growthpoint looks cheap with a high yield right now, but its share price has slumped over 17% this year—a signal the market is nervous about its property values or earnings outlook.

Meanwhile, WAM Leaders has kept delivering growing, fully franked payouts, with much less recent share price pain. That consistency means a lot for peace of mind. So, for reliable, tax-friendly income that seems less at the mercy of listed property market swings, my pick would be WAM Leaders right now. It’s not the absolute highest dollar yield, but I like the balance of yield, franking and stability for a hands-off, passive income portfolio.

The post WAM Leaders vs Growthpoint Properties: Which 7%+ yield stock looks better for passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has positions in Wam Leaders. 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 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.

Rio Tinto Ltd (ASX: RIO) shares are in spotlight today after the mining giant released its third-quarter production update.

There was plenty to like in the announcement, particularly the progress being made across its iron ore and copper operations.

But does the update strengthen the case for buying Rio Tinto shares? Here’s what I think.

A solid quarter for Rio Tinto

One of the highlights was the continued strength of Rio Tinto’s iron ore business.

The company reported global iron ore sales of 90.8 million tonnes during the quarter, an increase of 3% on the prior corresponding period. Its Pilbara operations also performed well, with sales increasing 2% to 85.7 million tonnes.

I think that is encouraging because iron ore remains an important source of earnings and cash flow for the company.

Strong operational performance here can help Rio Tinto fund its investments in other commodities, particularly copper and lithium.

There was also positive progress at Simandou, the enormous iron ore development in Guinea.

The project reached an annualised production rate of approximately 10 million tonnes during the quarter and remains on track to reach a 60 million tonne annualised rate in the second half of 2028.

That gives Rio Tinto another avenue for production growth over the next few years.

Copper is becoming increasingly important

The other part of the update that caught my attention was the performance of Oyu Tolgoi in Mongolia.

Copper production at the operation increased 27% compared with the same quarter last year, reflecting the ongoing ramp-up of its underground mine.

This helped offset weaker production elsewhere in Rio Tinto’s copper portfolio, leaving total copper output broadly unchanged for the quarter.

I think Oyu Tolgoi could become an increasingly valuable part of the business. Copper demand is expected to benefit from investments in electricity networks, renewable energy, electric vehicles, and data centres. And Rio Tinto is positioning itself to meet some of that demand.

The company expects Oyu Tolgoi to produce around 500,000 tonnes of copper annually between 2028 and 2036, giving it a substantial production base for the coming decade.

For me, that is one of the strongest reasons to consider owning Rio Tinto shares for the long term.

What else stood out?

I was also encouraged by management’s continued focus on improving productivity.

Rio Tinto remains on track to achieve an annualised productivity benefit of $1.8 billion by the end of 2026.

It has also announced more than $2 billion of capital release initiatives this year as part of a broader programme to free up funds from its portfolio.

I think improving efficiency and making better use of capital could be valuable as Rio Tinto continues investing in growth.

Foolish takeaway

I think Rio Tinto’s latest update gives investors more reasons to be positive about its future.

The company is delivering solid operational performance while making progress on projects that could support earnings growth well beyond 2026.

I would be happy buying Rio Tinto shares for the long term, particularly with its copper business set to become increasingly important over the coming years.

The post Are Rio Tinto shares a buy following its Q3 update? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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.

Coles Group Ltd (ASX: COL) is one of Australia’s best-known shares, and I think there is plenty to like about its long-term prospects.

But would I put $10,000 into Coles shares today?

There are three reasons I would consider it.

Defensive demand

The first is the nature of Coles’ business. Groceries are an essential part of household spending, and that gives Coles a level of resilience that many other retailers simply do not have.

Even when consumers are struggling financially, they still need to buy food and everyday essentials.

They might switch to cheaper products, look for more specials, or reduce discretionary purchases, but supermarkets should continue seeing relatively consistent demand.

I think that makes Coles a good business to own through different economic conditions.

Its national store network, established supply chains, and growing online business also give it considerable scale.

Of course, competition remains intense, particularly from Woolworths Group Ltd (ASX: WOW) and Aldi. But Coles has continued investing in its customer offering, and I think it is well positioned to defend its place in the market.

Some protection against inflation

My second reason is Coles’ ability to manage inflation.

Coles has the ability to adjust its prices when the costs of purchasing and distributing groceries increase, giving it a degree of protection against inflation.

In addition, Coles’ investment in automation could become increasingly important.

Its automated distribution centres and improved fulfilment capabilities should help make operations more efficient, reducing some of the cost pressures associated with running a large supermarket network.

If Coles can keep improving productivity while remaining competitive on price, I think that will put it in a stronger position to protect its profit margins.

A positive earnings outlook

The third reason I would consider investing $10,000 in Coles shares is the growth expected over the next few years.

Coles generated earnings per share (EPS) of 81.5 cents in FY26.

Consensus forecasts point to EPS increasing to 98.2 cents in FY27, $1.05 in FY28, and $1.15 in FY29. That would represent earnings growth of approximately 41% over three years.

I think that is a strong outlook for a business operating in such a mature industry.

The dividend is also expected to benefit. After paying a fully-franked 78 cents per share in FY26, analysts expect Coles to increase its annual payout to 83.5 cents in FY27, 88.8 cents in FY28, and 97.4 cents in FY29.

With Coles shares trading around $23.70 on Wednesday, the FY27 forecast represents a dividend yield of approximately 3.5%, before franking credits.

I think that provides a good income component alongside the prospect of further capital gains.

Foolish takeaway

I would be happy to invest $10,000 in Coles shares at current levels.

I like the resilience of its supermarket operations, the opportunity to improve efficiency, and the earnings growth analysts are expecting.

For me, Coles looks like a business that could deliver solid returns over the coming years while remaining a dependable long-term holding.

The post 3 reasons I would invest $10,000 in Coles shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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.