Owners of Fortescue Ltd (ASX: FMG) shares recently learned what their next dividend payment will be.

It’s a sizeable one, though not as big as the payments earlier this decade.

Investors will receive a FY26 final dividend of 46 cents per share – that’s a reduction of 23% compared to the final dividend of FY25.

The full-year payout comes to $1.08 per share, which is 2% lower than the annual payment for FY25.

Both FY25 and FY26 had a dividend payout ratio of 65%, so the ASX mining share was consistent with how much cash it paid to investors.

Sadly for shareholders, it was partly a change in foreign exchange rates that led to the lower annual dividend. Underlying earnings per share (EPS) in Australian dollars declined 2%, but the underlying EPS grew 3% in American dollar terms. However, the dividend is based on and paid in Australian dollars.

Let’s look at what the potential payment for owners of Fortescue shares could be in FY27 and FY28.

FY27

We’re already more than a month and a half into the 2027 financial year and the iron ore price has declined by a few dollars per tonne, which is a headwind for Fortescue’s earnings if that decline sticks around.

During FY26, Fortescue saw the sold price of its iron ore increase by 7%, which was the biggest contributor to its underlying earnings increase in FY26 in American dollar terms.

The current forecast on Commsec suggests that the company’s FY27 annual dividend per Fortescue share could decline to 86.4 cents. At the time of writing, that translates into a dividend yield of 4.8% excluding franking credits and 6.9% including franking credits.

As you may have guessed, the dividend is projected to decline because the earnings are forecast to decrease. For now, that’s just a projection. The iron ore price could surprise the market positively, or it could decline towards US$90 per tonne as analysts have projected could happen amid rising iron ore shipments from Africa.

If supply rises without a lift in demand, it is likely to hurt the commodity price. But analysts have been wrong before about being overly negative about the iron ore price.

FY28

The current forecast on Commsec suggests that the dividend could become even smaller in the 2028 financial year. The pressure on the iron ore price could become stronger as the months go by because Simandou – a huge, new iron ore project in Africa – is expected to ramp-up in the next few years.

Interestingly, Fortescue is working on its own project in Africa (Gabon), though it’s not remotely the same scale.

I think the best move that Fortescue can do to grow earnings in the long-term is to continue efforts to grow earnings in areas other than iron ore, such as copper and energy.

The projection on Commsec suggests the company could pay an annual dividend per Fortescue share in FY28 of 59.8 cents. That suggests a dividend yield of 3.3% excluding franking credits and 4.75% including franking credits, at the time of writing.

At this stage, it doesn’t seem that Fortescue is the right pick for large or growing income in the medium-term, so I’d look at other ASX shares.

The post Here’s the dividend forecast out to 2028 for Fortescue shares appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Pro Medicus, Fortescue, CBA shares
• 2 ASX dividend gems I’d buy for a $20,000 superannuation income boost
• 8 ASX shares just upgraded by the experts
• Buy, hold, sell: Fortescue, Northern Star, and Megaport shares
• Are Fortescue shares in the buy zone after its results?

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.

Profit season gives analysts plenty to work with in terms of identifying companies they think might be undervalued.

I’ve had a look at the recent broker reports and come up with two under-the-radar companies that brokers like the look of.

Let’s have a look at what they’re saying.

LGI Ltd (ASX: LGI)

LGI is an innovator in the energy space and converts biogas from landfill into energy.

The company delivered a solid FY26 result last week, with revenue of $39.8 million, up 17% on the previous year, and underlying net profit of $8.8 million, up 35%.

Chief Executive Officer Jarryd Doran said regarding the result:

In FY26 we outperformed all our key operational drivers with year-on-year biogas recovery increasing by 33%, Australian Carbon Credit Units created increasing 18%, and a 29% increase in renewable energy from our fleet of power stations. In summary, the Company’s strong operational performance was reflected in our financial results whereby we increased Net Revenue by 17%, and our Underlying EBITDA increased approximately 26%, delivering against our previously stated guided range. Looking forward, our efforts during the year in registering and commencing carbon abatement across 8 new sites lays important foundations for continued growth. Together with our completed capital raising in October 2025, we look forward to continuing to deliver against our strategy of expanding our pipeline of generation capacity to beyond 80MW.

Broker Morgans said they believed LGI was one of the best ways to get exposure to the decarbonisation thematic on the ASX.

They said:

Despite more modest expectations for FY27, we remain positive over the medium term given the material development pipeline ahead and strong operating leverage across the portfolio as the group scales and executes its meaningful battery rollout across new and existing sites.

Morgans has a price target on LGI of $3.60 compared to $2.38 currently.

Hansen Technologies Ltd (ASX: HSN)

UBS said in its full-year report that Hansen delivered softer-than-expected revenue of 4%, but good margins meant it hit targets for cash EBITDA.

Underlying net profit was strong, coming in 22.5% higher than the previous corresponding period at $48.5 million.

Hansen Chief Executive Officer Andrew Hansen said regarding the result:

FY26 demonstrated the resilience of Hansen’s business model. In a more cautious environment, we have remained focused on disciplined execution, protecting earnings quality while continuing to invest for long-term growth. What we have seen during the year, with regards to revenue, is primarily caused by mix and foreign exchange. We continue to have a solid pipeline of demand for our products and services. Our recurring revenue base continues to improve, providing stability and visibility through the cycle. AI is increasingly driving productivity, operating leverage and long-term margin expansion.

The company said AI had been a large focus, and an AI enablement team had been set up to drive capability across the workforce.

UBS said they saw FY27 as a “transition year” for the company, but still have a bullish price target of $5.95 on the shares, compared to $3.31 currently.

The post 2 ASX shares tipped by brokers to return 48% to 82% appeared first on The Motley Fool Australia.

More reading

• LGI posts FY26 earnings growth and expands renewable energy portfolio
• Buy, hold, sell: Premier Investments, Hansen Technologies, Santos shares
• This ASX 300 technology stock is tipped to double in the next 12 months
• Hansen Technologies appoints new CEO as Andrew Hansen becomes Executive Chair
• ASX 200 utilities shares gained 7% while the broader market fell heavily last week

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended LGI Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There aren’t too many blue-chip ASX 200 shares that still offer dividend yields of 5% today, let alone 6%. But Bendigo and Adelaide Bank Ltd (ASX: BEN) is one of the rare few. Yes, Bendigo Bank shares are currently trading on a trailing dividend yield of 6.05%.

As such, we can probably conclude that there were more than a few income investors watching with interest this morning as Bendigo and Adelaide Bank revealed the next shareholder payment that investors can expect.

As we covered this morning, it was a solid, if uninspiring, report from Bendigo Bank. This ASX 200 bank stock told the market that its cash earnings for the 12 months ended 30 June were $30.2 million, up 3% over FY 2025. That helped the bank post statutory earnings after tax of $375.1 million, helped by a 1.5% growth in total lending and a 2.2% increase in customer deposits.

The second half of the financial year was particularly strong for Bendigo Bank. Cash earnings rose 6.8% compared to the same half in 2025 to $273.8 million, while expenses dropped 2.1%.

Is Bendigo Bank shares’ 6% yield holding firm?

But let’s get to Bendogo Bank’s latest dividend. In some decent news for income investors, this bank’s dividend will not be changing. Yes, Bendigo and Adelaide Bank today revealed that its final dividend for 2026 will come in at 33 cents per share. That’s unchanged and flat on 2025’s final dividend. As such, that 6% yield that we currently see on Bedigo Bank shares will be holding for the time being.

That 33-cent-per-share final dividend, coupled with March’s interim dividend of 30 cents per share, gives an annual total of 63 cents per share. That’s the same annual amount that Bendigo Bank has paid since 2024.

This latest final dividend will arrive in investors’ bank accounts on 30 September next month. Like almost every payout from this bank, this dividend will come with full franking credits attached.

For anyone who doesn’t yet own Bendigo Bank shares but wishes to receive this dividend, the shares are scheduled to trade ex-dividend on 1 September. Investors will need to own shares by the end of August to be eligible to receive this payout.

There is also the option to receive additional Benido Bank shares in lieu of a cash payment with this company’s dividend reinvestment plan (DRP). The cut-off date for DRP participation is 3 September.

The post 6%: Bendigo Bank just unveiled its latest dividend appeared first on The Motley Fool Australia.

More reading

• Why PLS, Bendigo Bank and Ampol shares are turning heads on Monday
• Bendigo and Adelaide Bank FY26 earnings: profit lifts to $375.1 million, dividend steady
• 5 things to watch on the ASX 200 on Monday
• 8 ASX shares just upgraded by the experts
• How much passive income could I earn from a $630,000 superannuation balance?

Motley Fool contributor Sebastian Bowen 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 positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.