The ASX dividend share end of the market is a great place to hunt for opportunities that offer compelling passive income. The recent Federal budget changes make capital gains a little less appealing than they were before, compared to dividends. Large dividend yields could be a solution.

Businesses with extremely high dividend yields aren’t necessarily the best choices because they could be less reliable or not grow the payout as much as a business with a lower payout, simply because they’re keeping more money to invest for growth.

I’m not expecting significant growth of the following two names, but they have demonstrated a track record of dividend stability and long-term payout growth.

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is a listed investment company (LIC) operated by Wilson Asset Management.

The portfolio is focused towards S&P/ASX 200 Index (ASX: XJO) shares, which are the biggest, strongest and most resilient businesses that have strong market positions and good margins. It’s important to note that this is not a passive, index-following portfolio but an active one that buys and sells shares as valuation appeal changes.

Between its inception in May 2016 to May 2026, the WAM Leaders portfolio has returned an average of 12% (before fees, expenses and taxes), outperforming the 9.1% average annual return of the S&P/ASX 200 Accumulation Index (ASX: XJOA).

That level of investment return – which is not guaranteed to continue – has helped the business increase its annual payout every year since FY17. The increases have been small in the last few years because the yield is already so large.

The guided dividend amount for FY26 is 9.6 cents per share, which translates into a grossed-up dividend yield of 10.4%, including franking credits, at the time of writing.

I think the business has a good profit reserve to continue paying the current dividend for the foreseeable future.

Hearts and Minds Investments Ltd (ASX: HM1)

Hearts and Minds is another ASX share with a large dividend yield.

It’s a LIC that aims to provide a concentrated portfolio of between 25 and 35 global shares based on the highest-conviction ideas from well-regarded fund managers. There are no management fees, and instead, money is donated to leading Australian medical research organisations.

Close to a third of the portfolio is decided by picks from investment professionals from an annual investment conference. Core, ongoing, portfolio managers decide a greater share of the portfolio.

Since its inception in November 2018, the LIC’s portfolio has returned an average of 10.25% after expenses and before Australian taxes.

Its dividend has steadily increased since FY23, and it plans to continue to increase its half-year payout by 0.5 cents every six months.

It plans to pay an annual dividend per share of 19.5 cents in FY26, which translates into a grossed-up dividend yield of 9.8%, though the next 12 months of payments are likely to be a yield of 10.4%, including franking credits.

The business is trading at a discount of around 20% to its pre-tax net tangible assets (NTA), so it looks like great value to me right now.

The post 2 ASX shares with dividend yields above 9% appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target an $8,000 monthly passive income?
• Are Rio Tinto or BHP shares a better buy right now?
• 2 ASX shares with dividend yields above 10%
• 2 ASX shares with dividend yields above 8%
• 2 ASX blue-chip shares offering big dividend yields

Motley Fool contributor Tristan Harrison has positions in Hearts And Minds Investments. 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.

It has been a remarkable 12 months for some of the big ASX mining stocks.

PLS Group Ltd (ASX: PLS), Liontown Resources Ltd (ASX: LTR), and Mineral Resources Ltd (ASX: MIN) have all delivered triple-digit gains over the past year, making them among the strongest-performing ASX mining stocks.

However, momentum has cooled recently. All three lithium stocks have retreated over the past month as lithium prices pulled back.

That’s hardly surprising. The lithium carbonate price surged approximately 155% over the past year, helping fuel the sector’s rally. But with prices falling around 14% over the past month, investors are reassessing how much upside remains.

So, what comes next for these ASX mining stocks?

PLS Group

PLS Group shares have surged 356% over the past 12 months but have slipped 10% to $5.66 in the past four weeks.

The rally wasn’t driven solely by higher lithium prices. The $18 billion ASX mining stock also delivered strong operational growth.

During its first-half result, PLS reported a 47% increase in revenue to $624 million, supported by higher realised lithium prices and increased sales volumes.

Underlying EBITDA jumped 241% to $253 million, while EBITDA margins expanded to 41%, up from 17% a year earlier.

The company’s flagship Pilgangoora operation remains one of the world’s largest hard-rock lithium assets and provides significant scale advantages.

The key risk remains lithium prices. If the recent weakness continues, earnings could come under pressure despite strong operational performance.

Liontown Resources

Liontown Resources has gained 185% over the past year but has fallen 18% over the past month to $1.90.

Investors have been attracted to the company’s rapidly growing Kathleen Valley project, which is emerging as one of Australia’s most significant lithium operations.

In its half-year results, Liontown reported a 70% increase in lithium production to 192,514 dry metric tonnes and revenue more than doubled. It rose 107% to $207.5 million.

The company’s growth profile remains compelling as production ramps up and operational efficiencies improve.

However, Liontown remains highly exposed to lithium market conditions. Any prolonged decline in lithium prices could weigh on profitability and the price of the ASX mining stock.

Mineral Resources

Mineral Resources shares have climbed 213% over the past 12 months despite falling 7% in the past month to $65.86.

Unlike PLS Group and Liontown, Mineral Resources offers greater diversification through its mining services, iron ore, and lithium operations.

The company recently delivered its strongest half-year result on record. Supported by stronger lithium demand and a standout performance from its Onslow Iron project, Mineral Resources reported EBITDA of $1.2 billion and record revenue of $3.1 billion.

The Onslow Iron operation has become a major growth driver and reduces the company’s reliance on lithium alone.

That said, commodity prices remain a key risk. Weakness in either lithium or iron ore markets could affect earnings and investor confidence in this ASX mining stock.

What now for the ASX mining stocks?

The recent pullback highlights how closely lithium stocks remain tied to commodity prices.

Yet the fundamentals behind these businesses remain strong. Production is growing, revenues are increasing, and key projects continue to ramp up.

If lithium prices stabilise or resume their upward trend, these ASX mining stocks could regain momentum. But investors should expect continued volatility as the market weighs strong company performance against an uncertain commodity outlook.

The post These ASX mining stocks soared 185%+, then tumbled. What now? appeared first on The Motley Fool Australia.

More reading

• Liontown shares crash 18% in a month: What happened?
• PLS shares drop 5%: What’s driving the move?
• Mineral Resources shares slide as CEO uncertainty weighs in
• Why Humm, Metcash, PLS, and WiseTech shares are sinking today
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Marc Van Dinther 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 think some of the best ASX 200 growth shares are businesses that solve important problems for customers.

They may not always have the loudest stories on the market, but they can become more valuable by building better products, winning larger customers, and becoming harder to replace over time.

These are two ASX 200 shares I would consider buying for powerful long-term growth.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of the ASX 200’s best tech shares, in my opinion.

The company provides enterprise software to councils, government departments, universities, and other large organisations. Its products help customers manage things such as finance, payroll, property and rating, student systems, and other core operations.

This is not glamorous software, and that is what I like about it.

Large organisations need systems that work. They need reliability, security, compliance, reporting, and support. Once software is built into daily operations, changing providers can be disruptive and costly.

That gives TechnologyOne a strong position with customers.

I also like the company’s long-running shift to software-as-a-service. Recurring revenue can make the business more predictable, and cloud-based products can support ongoing upgrades and stronger customer relationships.

The valuation is often demanding, so investors need to be sensible about price. But I think TechnologyOne has the rare combination of a focused market, strong execution, and a long runway beyond Australia.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is another ASX 200 share where highly specialised work can be the powerful part.

The company provides medical imaging software through its Visage platform. Hospitals and radiology networks need technology that can handle huge imaging files, support fast workflows, and help doctors access the information they need.

This is a serious job.

Medical imaging is central to diagnosis and treatment. As scans become more detailed and healthcare systems become more digital, software quality becomes increasingly important.

Pro Medicus has built a strong reputation in this specialist area. Its contracts can be large, long term, and strategically important to customers.

What I like is that the company is selling into a market where performance is important. Hospitals and healthcare groups are not buying software because it sounds fashionable. They need tools that improve speed, usability, and reliability in clinical settings.

The risk, again, is valuation. Pro Medicus often trades at a premium because the market already recognises its quality. But I think exceptional software businesses can keep surprising investors if they continue winning important customers and expanding their role inside large markets.

Foolish takeaway

What I like about TechnologyOne and Pro Medicus is that both companies sell software into areas where reliability, speed, and product quality really count.

That gives them a useful kind of growth profile. Their customers are not buying a passing trend, they are using systems that help run important operations, whether that is a council, a university, a hospital, or a radiology network.

If these companies keep improving their products and winning larger customers, I think they can become even more valuable over time. That is why both ASX 200 shares would be on my buy list for long-term growth.

The post 2 ASX 200 shares I’d buy for powerful growth appeared first on The Motley Fool Australia.

More reading

• 3 buy-rated ASX tech shares with bright futures
• US chip stocks were smashed overnight. So why are ASX tech shares rising?
• Down 16%: What on earth is going on with TechnologyOne shares?
• 5 ASX growth shares I want in my portfolio in FY27
• Where to invest $500 on the ASX right now

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 positions in and has recommended Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.