It was a bumpy, but ultimately negative Tuesday session for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares today. After spending almost the entire session in green territory, investors seemed to get cold feet in the late afternoon. By the time the markets closed, the ASX 200 had choked, closing 0.035% lower. That leaves the index at a flat 9,070 points.

It seems the weekend wasn’t enough to bring some optimism to investors’ minds, with the ASX 200 opening sharply lower this morning and staying in red territory all day. By the time trading wrapped up, the index had lost 0.46% and finished at 9,073.2 points.

This miserly finish for the Australian markets this Tuesday followed a rough start to the American trading week on Wall Street last night (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) was not feeling Monday-fresh, dropping 0.51%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared slightly better, but still fell 0.32%.

But let’s get back to our local markets now and take stock of what the various ASX sectors were up to this session.

Winners and losers

With the market’s falls, there were unsurprisingly more red sectors than green ones today.

Leading those red sectors were gold stocks. The All Ordinaries Gold Index (ASX: XGD) had a rough one, cratering by 1.57%.

Communications shares weren’t popular either, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) plunging 1.26%.

We could say the same for consumer staples stocks. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) saw a 1.16% dive this session.

Financial shares weren’t much better, evident from the S&P/ASX 200 Financials Index (ASX: XFJ)’s 1.1% wipeout.

Consumer discretionary stocks came next. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) suffered a 1.03% reduction this Tuesday.

Tech shares were right behind that, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) dipping 1.02%.

Industrial stocks had a day to forget, too. The S&P/ASX 200 Industrials Index (ASX: XNJ) endured a 0.75% dip today.

Let’s turn to the winners now. Leading the charge were healthcare shares, illustrated by the S&P/ASX 200 Healthcare Index (ASX: XHJ)’s whopping 7.81% surge. We can thank CSL Ltd (ASX: CSL) for that.

Energy stocks enjoyed some time in the sun too. The S&P/ASX 200 Energy Index (ASX: XEJ) jumped up 0.99% today.

Utilities shares also got a reprieve, with the S&P/ASX 200 Utilities Index (ASX: XUJ) advancing 0.89%.

Mining stocks were another safe haven. The S&P/ASX 200 Materials Index (ASX: XMJ) rose 0.15% by the closing bell.

Finally, real estate investment trusts (REITs) got in under the wire, as you can see by the S&P/ASX 200 A-REIT Index (ASX: XPJ)’s 0.05% inch higher.

Top 10 ASX 200 shares countdown

Our winner this session was manufacturing stock Reliance Worldwide Corporation Ltd (ASX: RWC).

Reliance shares exploded 24.65% higher today to close at $4.50 each. This came after the company posted its latest earnings, which included the revelation that it had received a takeover offer.

Here’s how the other winners pulled up at the kerb:

ASX-listed company	Share price	Price change
Reliance Worldwide Corporation Ltd (ASX: RWC)	$4.50	24.65%
CSL Ltd (ASX: CSL)	$157.82	17.25%
Judo Capital Holdings Ltd (ASX: JDO)	$1.07	16.94%
Pro Medicus Ltd (ASX: PME)	$196.75	11.88%
SRG Global Ltd (ASX: SRG)	$3.96	9.39%
A2 Milk Company Ltd (ASX: A2M)	$7.09	8.58%
Cochlear Ltd (ASX: COH)	$10.32	6.50%
Challenger Ltd (ASX: CGF)	$10.32	6.50%
Beach Energy Ltd (ASX: BPT)	$0.905	3.43%
Deterra Royalties Ltd (ASX: DRR)	$4.35	3.08%

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

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• 2 ASX shares with dividend yields above 8%
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• CSL shares surge 18% as ‘reset year’ points to a return to growth

Motley Fool contributor Sebastian Bowen has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Cochlear. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended CSL, Challenger, Cochlear, Pro Medicus, and Srg Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When you see a popular ASX dividend stock trade with a dividend yield of almost 10%, you might be tempted to rush out and buy it straight away. After all, a 10% yield represents phenomenal cash flow potential. You could get nearly $10 back every single year for each $100 invested. That’s twice what a good term deposit is paying right now (even with our currently high interest rates). And it’s more than two what most other blue chip ASX dividend stocks are yielding.

The popular ASX dividend stock I am referring to is none other than WAM Capital Ltd (ASX: WAM). Yep, WAM Capital shares are, at the time of writing, asking $1.58 a share. At this price, the listed investment company (LIC) is trading on a dividend yield of 9.84%. Today, let’s discuss this dividend yield, and why yields at this height are usually a waving red flag.

As a LIC, WAM Capital owns and manages a portfolio of underlying investments on behalf of its shareholders. In WAM Capital’s case, this portfolio is made up of “undervalued growth companies”, usually of the small- to mid-cap variety, that WAM Capital has identified as possessing some kind of pricing catalyst that will see their value rise in the near future.

Some current holdings (as of 31 July) include Eagers Automotive Ltd (ASX: APE), Codan Ltd (ASX: CDA), DigiCo Infrastructure REIT (ASX: DGT), and Zip Co Ltd (ASX: ZIP).

WAM passes on any profits made from its arbitrage trades, as well as any dividends it receives from its holdings, on to investors in the form of its own dividends.

Why this ASX dividend stock’s near-10% yield is a red flag

A company’s dividend yield is a function of its share price just as much as its underlying dividend per share. As such, anyone who spots a company with a yield this high must ask themselves why the market is pricing it that way. The answer is usually that there is a high level of risk associated with that yield.

So where does the risk come from in the case of this particular ASX dividend stock? Well, let’s go through some numbers.

Since 2018, WAM Capital has paid out two dividends a year, each worth 15.5 cents per share. However, the company tells us that, again as of 31 July, it had just 13.3 cents per share in its profit reserve. That’s the pot where its dividends are funded from. There’s clearly not much left in the tank. If WAM Capital doesn’t replenish those profits soon, investors are at serious risk of a dividend cut. If that does eventuate, that 9.84% yield wouldn’t be long for this world.

This company doesn’t exactly have a glowing history either. For whatever reason, WAM no longer lists its recent performance figures on its site. However, a quick look at its share price will tell you all you need to know. Today, WAM Capital shares are trading at the same level they were way back in early 2002. Over the past decade, its share price has lost about a third of its value, probably not assisted by the company’s rather hefty 1% per annum management fee.

Foolish takeaway

That tells us that its dividends are the only real source of shareholder returns. Given the apparent precariousness of these payouts, it’s not hard to see why the market is pricing in so much risk to that yield.

Sometimes, a yield that looks too good to be true just might be that. Investors should always tread with extreme caution when red flags this large are waving in the wind.

The post This popular ASX dividend stock has a 10% yield. That’s a problem appeared first on The Motley Fool Australia.

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• This fund manager thinks these ASX shares are buys and have big potential!

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 recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) has jumped over 3% over the past month amid a surge in investor confidence.

Here are three undervalued ASX 200 shares which could be primed to storm higher over the next 12 months.

The A2 Milk Co Ltd (ASX: A2M)

A2 Milk shares are jumping higher in afternoon trade on Tuesday. At the time of writing, the milk company’s shares are up around 8% and changing hands at $7.04 a piece. 

Today’s share price spike follows the company’s FY26 results announcement on Monday morning. It reported a 12.4% increase in revenue but a 2.5% decline in full-year statutory EBITDA and a 5.8% drop in statutory NPAT.

Investors were initially hesitant but then many quickly bought into the shares.

Monday’s results announcement comes off the back of a difficult start to the year for A2 Milk. 

The shares crashed around 20% in early April after it lowered its FY26 guidance amid supply chain challenges, and the shares continued tumbling to an 18-month low in early-June.

The ASX 200 shares have recovered around 35% of their value from early-June to the time of writing, but the rebound still hasn’t brought the share price back to early-2026 levels. They’re still down around 24% for the year-to-date.

It’s clear that the company’s FY26 results weren’t as bad as many were expecting. Even after today’s 8% share price increase, it looks like the ASX 200 shares are still trading well below fair value.

Market Index data shows the majority of brokers have a buy rating on the shares. The $8.04 average target price implies a potential 19% upside, at the time of writing.

Lendlease Group (ASX: LLC)

Lendlease also posted its FY26 results early yesterday morning. The ASX 200 international property developer reported earnings at the top end of guidance but also posted a statutory loss after tax of $749 million.

Investors were spooked, and the shares crashed 11% by the end of the day. Today, ASX 200 property shares are back in the green, trading 1% higher at $2.90. The shares are also down around 44% year-to-date.

The announcement followed a disappointing first-half update earlier this year. 

The company has undergone a major strategic reset this year, which has seen it simplify its structure, exit international construction, and refocus its efforts on the Australian market. 

Investors aren’t sure, but it looks like analysts are more bullish that the company can pull off the new strategy.

Market Index data shows brokers are split between a buy and hold rating. But the $3.49 average target price implies a potential 22% upside, at the time of writing.

Nickel Industries Ltd (ASX: NIC)

Nickel Industries shares spiked to a three-year high of $1.10 in early May. But they’ve now lost around 25% of their value. At the time of writing, the shares are down another 1% and are changing hands for 83 cents each. That’s an 8% decrease year-to-date.

The ASX 200 company owns a portfolio of mining and downstream nickel processing assets in Indonesia. It has a controlling interest in the Hengjaya nickel mine and four rotary kiln electric furnace projects. These produce nickel pig iron (NPI) for the stainless-steel industry and materials for EV batteries. 

Its shares enjoyed a very strong start to 2026, including a new acquisition and strong financial results. But a weaker nickel price and higher costs have put pressure on the shares over the past couple of months.

But there is plenty of expansion potential ahead for the ASX 200 nickel shares, and brokers appear bullish that the share price can rally higher this year.

Market Index data shows that the majority have a buy rating on Nickel Industries shares. The $1.29 average target price implies a potential 56% upside over the next 12 months, at the time of writing.

The post 3 oversold ASX 200 shares trading for cheap right now appeared first on The Motley Fool Australia.

More reading

• How much do I need in my superannuation to earn $50,000 per year in passive income?
• Are A2 Milk shares a buy, hold or sell following results?
• Why Lendlease, A2 Milk and JB Hi Fi shares are turning heads on Monday
• Lendlease FY26 earnings: Top-end IDC result but statutory loss hits share price
• The A2 Milk Company posts higher FY26 revenue and increased dividends

Motley Fool contributor Samantha Menzies 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.