The team at Bell Potter have just released updated guidance for Amplitude Energy Ltd (ASX: AEL) shares. 

It has been a tough year for Amplitude Energy shares ,which have crashed over 50% year to date. 

For comparison, the S&P/ASX 200 Energy Index (ASX: XEJ) is up 10% in the same period.

However, despite the struggling performances thus far, Bell Potter sees big upside over the next 12 months. 

Here’s what the broker had to say. 

Quarter impacted by seasonality and sentiment

Bell Potter expects Amplitude Energy’s June 2026 quarter to be softer, with production broadly flat but lower realised gas prices due to mild seasonal demand, stronger supply from Longford, and weaker sentiment across the energy sector. 

Despite this, the broker believes the company remains on track to meet FY26 guidance and expects market conditions to improve. 

Bell Potter is increasingly positive on the East Coast Supply Project, noting it has been substantially de-risked following the Artisan acquisition, with a positive Final Investment Decision anticipated this quarter. 

Supported by a solid balance sheet and existing assets generating around $150 million in annual free cash flow, Bell Potter believes Amplitude Energy is well positioned to fund the project’s remaining development toward first production in 2028.

AEL is a pure-play leverage to the southern east coast Australia gas market with the majority of its gas sales under stable contracted prices. The company’s flagship 100%-owned Gippsland Basin asset is now consistently operating near nameplate capacity (68TJ/day); debottlenecking could see incremental improvements.

Big upside in tact 

Based on this guidance, the team at Bell Potter has slightly lowered its price target to $2.50 (previously $2.90). 

However from yesterday’s closing price of approximately $1.295, this indicates an upside potential of 93%. 

It has retained its buy recommendation. 

AEL is in a strong position to meet FY26 guidance despite the weaker June 2026 quarter and we expect energy markets and sentiment to normalise. 

The East Coast Supply Project has been de-risked through the Artisan acquisition, and we expect a positive Final Investment Decision in the current quarter.

Encouragingly, Bell Potter isn’t the only expert tipping a big rebound for Amplitude Energy shares. 

Morgans recently said there had been some sizable, albeit short-term catalysts, that recently pushed the share price lower. 

However, the broker now sees it as a rebound candidate. 

Morgans has a buy rating on Amplitude shares with a price target of $3. 

This indicates 130% upside from current levels. 

The post Amplitude Energy shares could be set to soar 90%: Expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.

Retirees may be on the hunt for ASX dividend shares that can provide a solid base of passive income. I think Rural Funds Group (ASX: RFF) is one of the top options in retirement.

Rural Funds is a real estate investment trust (REIT) that owns farmland across Australia, in different states and climate conditions. It also has a large holding of water entitlements for its tenants to use.

For a few different reasons, I think the business fits what retiree investors may be looking for.

Stable payout

Retirees may be looking for businesses that can provide resilient payouts through all economic conditions. If I’m relying on investment income, I want to know it can continue flowing even if there’s a downturn.

Of course, there is no absolute guarantee that every business will pay dividends.

Rural Funds has a number of high-quality tenants that are either high-quality international, listed or national entities. That helps ensure it continues to generate good rental profits.

Additionally, the ASX dividend share has a weighted average lease expiry (WALE) of more than a decade, giving investors significant income security and visibility with how long tenants are signed up.

The business increased its distribution each year between 2014 to 2022 and has maintained it since then despite the headwinds of higher interest rates. While I’d prefer growth, it’s still a good sign that the payout hasn’t been reduced despite the higher interest costs.

Plus, Rural Funds’ rental contracts have indexation built into the leases, giving the business organic rental growth potential and a tailwind to increase its payout for retirees (and other investors) in the future.

Good dividend yield

The business has regularly paid an annual distribution per unit of 11.73 cents over the last few financial years, and I wouldn’t be surprised if the ASX dividend share pays the same passive income again in FY27.

If Rural Funds does pay that level of distribution again in the 2027 financial year, it would translate into a distribution yield of 5.8%. In my view, that’s extremely competitive with any term deposit rate out there that’s available to Australians right now.

Compelling farm ownership at a discount

I like the diversification that Rural Funds can provide for retiree investors, with a focus on residential property, banks, and miners. Farmland is an integral part of the Australian economy, and this investment gives us exposure to cattle, vineyards, almonds, macadamias and cropping.

I believe the business is significantly undervalued based on its adjusted net asset value (NAV). It’s ‘adjusted’ to include the market value of the water entitlements.

At 31 December 2025, it had an adjusted NAV of $3.10. That means it’s trading at a discount of 35%, at the time of writing. There are very few REITs or ASX dividend shares that are trading as cheaply as that.

I think it’s a great business to pick up right now, though it’s not the only ASX dividend share I’d buy today.

The post Why this ASX dividend share is a retiree’s dream for FY27 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Rural Funds Group. 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 Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX blue-chip share space is a great place to look for ideas that can deliver strong passive income with good dividend yields.

Mature Australian businesses have usually built a strong reputation for generating profit, they have a big accounting profit reserve and a history of paying resilient dividends to investors.

When I look at ASX shares with market capitalisations of more than $6 billion, the two businesses below are ones that stick out as good providers of passive income.

Argo Investments Ltd (ASX: ARG)

Argo is a listed investment company (LIC) that provides investors with exposure to a portfolio of ASX blue-chip shares. LICs can give Aussies both diversification and a good dividend yield.

The biggest positions in the portfolio includes BHP Group Ltd (ASX: BHP), Macquarie Group Ltd (ASX: MQG), Rio Tinto Ltd (ASX: RIO), Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES), Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ) and Telstra Group Ltd (ASX: TLS).

As you can see, Argo gives investors a significant level of allocation to ASX blue-chip shares.

It has a pleasingly low cost, with a management expense ratio of just 0.14%, which is one of the cheapest in the LIC sector. Plenty of exchange-traded funds (ETFs) have a higher cost than that.

Since the GFC, the ASX blue-chip share has reduced the annual dividend a couple of times. In most other years, the annual dividend has been hiked. Its current grossed-up dividend yield is 6%, including franking credits.

It’s currently trading at a mid-teen double-digit discount to its net tangible assets (NTA).

Coles Group Ltd (ASX: COL)

Coles is another quality ASX blue-chip share Aussies can buy.

As Australia’s second-largest supermarket business, it has a strong market position to continue generating a pleasing level of passive income for shareholders.

Coles has increased its annual dividend each year since 2019, which is a pleasing level of dividend consistency compared to many other large businesses. The steady growth of revenue and net profit has allowed the business to be a consistent dividend provider for investors.

At the time of writing, Coles’ last two half-year dividends come to 73 cents per share. That’s a grossed-up dividend yield of 4.5%, including franking credits.

The business is steadily building its market position thanks to an expanding store network, rising e-commerce sales and improving profit margins.

In my view, Coles has a promising long-term future – it’s a very important business for the Australian economy and could expand into pet retail and vets if the possible Greencross transaction goes ahead.

Overall, there’s a lot to like about these ASX blue-chip shares, though they’re not the only great businesses to consider.

The post 2 ASX blue-chip shares offering big dividend yields 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 positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended BHP Group, Macquarie Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.