The ASX dividend share MFF Capital Investments Ltd (ASX: MFF) is one of the leading choices for passive income, in my view.

It may not be as popular as names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) or Woolworths Group Ltd (ASX: WOW). But, I think MFF is better than each of those ASX blue-chip shares for multiple reasons.

Let’s get into what makes it such a good buy.

Diversification

Each of the large ASX companies I mentioned above is an impressive business with significant operations.

However, an investment with MFF offers much more diversification because it owns a portfolio of shares, whereas the ASX blue-chips are singular businesses.

MFF aims to invest in competitively advantaged businesses, which are normally global blue-chip stocks.

Its largest holdings are names like Mastercard, Alphabet, Visa, Bank of America and Amazon.

The ASX dividend share’s holdings have been long-term winners, and I believe there’s a good chance they will continue to be long-term compounders.

Past performance is not a guarantee of future performance, but MFF’s portfolio has delivered strong returns over the long-term.

According to CMC Invest, over the past five years MFF has delivered an average total shareholder return (TSR) of 16.2% per year.

I think its investment strategy can continue to perform well over the long-term and I expect its portfolio will continue to adjust over the years.

Dividend yield

One of the best reasons to like this ASX dividend share is down to its impressive dividend yield, which is superior to the ASX blue chip shares of CBA, BHP and Woolworths.

The business has provided guidance that it intends its next half-year dividend will be 12 cents per share and I expect the one after that will be 13 cents per share.

Assuming the business does pay an annual dividend per share of 25 cents per share in the 2027 financial year, it would represent a grossed-up dividend yield of 6.8%, including franking credits, at the time of writing.

Payout growth

Dividend growth is not a guarantee of course, but the business has a goal of increasing its dividend for investors each year and its large profit reserve and profit generation mean the business is able to pay consistently growing dividends.

In FY26 it grew its annual dividend per share by 23.5%, and I expect it will grow the dividend by another 19%. In my view, there are not many ASX dividend shares with yields above 6% that are likely to grow their payout at that pace.

MFF has grown its annual dividend per share each year since FY18, so it’s building a pleasing track record of regular payout growth.

This ASX dividend share is one of the largest positions in my portfolio, and I’m expecting more pleasing payouts in the years to come.

The post Why I’d buy this top ASX dividend share for major passive income today appeared first on The Motley Fool Australia.

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Bank of America is an advertising partner of Motley Fool Money. Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Mastercard, and Visa. The Motley Fool Australia has positions in and has recommended Mff Capital Investments. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Nanosonics Ltd (ASX: NAN) share price is in focus today after the company posted FY26 revenue of $203.9 million, up 3% on the prior year, and reported strong growth in trophon unit placements and successful launches of next-generation devices.

What did Nanosonics report?

• Revenue increased 3% on prior corresponding period (pcp) to $203.9 million, or 6% on a constant currency basis to $211.5 million
• EBIT came in at $16.0 million, down 10% on pcp, but up 21% to $21.6 million at constant currency
• trophon-only EBIT was $50.6 million, a 5% increase on pcp (16% at constant currency)
• Total trophon unit placements rose 9% to 4,230 units, with global installed base up 6% to 39,230 devices
• Cash and cash equivalents stood at $155.2 million as at 30 June 2026, and the company remains debt free
• $20 million share buyback completed, with a new buyback of up to $40 million announced for FY27

What else do investors need to know?

Nanosonics launched its next generation trophon3 and trophon2 Plus systems during FY26, seeing accelerating adoption in the second half of the year. North America was a key driver, with record device upgrades up 32% on last year.

The company continued making headway with the CORIS System, progressing through a Controlled Market Release and receiving favourable customer feedback. Regulatory milestones were achieved, including approvals in major markets and FDA clearances.

What did Nanosonics management say?

CEO and President said Michael Kavanagh said:

Nanosonics is entering a defining period of growth. FY26 demonstrated the strength of the business we have built: a proven trophon franchise, disciplined financial execution and in FY27 we will progress the CORIS System from CMR to commercialisation.

What’s next for Nanosonics?

Looking ahead, Nanosonics expects continued revenue growth driven by its expanding trophon installed base, upgrades, and consumables and services. The commercial launch of CORIS is planned across the UK, Ireland and Australia in the first half of FY27, with the US to follow.

The company has flagged a deliberate increase in operational expenses to support the CORIS commercialisation, but remains well-funded to pursue long-term opportunities. FY27 revenue guidance is between $220 million and $228 million (constant currency) with gross margin expected to moderate as new investments ramp up.

Nanosonics share price snapshot

Over the past 12 months, Nanosonics shares have declined 10%, trailing the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

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The post Nanosonics posts FY26 revenue growth and prepares to launch CORIS appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 Nanosonics. The Motley Fool Australia has recommended Nanosonics. 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 summary of the company announcement. 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.

The Electro Optic Systems Holdings Ltd (ASX: EOS) share price is on watch today after the company unveiled surging half-year revenue, which jumped 283% to $168.8 million, though its net loss after tax narrowed to $32.9 million.

What did Electro Optic Systems report?

• Revenue from continuing operations up 283% to $168.8 million (1H FY25: $44.1 million)
• Net loss after tax attributable to members reduced to $32.9 million (1H FY25: loss of $44.8 million)
• Underlying EBITDA from continuing operations swung to a profit of $21.6 million (1H FY25: $14.9 million loss)
• No interim dividend declared
• Contracted order book grew to approximately $846 million (1H FY25: $170 million)
• Net assets stood at $391.6 million at 30 June 2026, with cash and equivalents at $256 million

What else do investors need to know?

Electro Optic Systems completed its acquisition of the MARSS Group in May, boosting its offering in the fast-growing counter-drone and advanced defence tech sector. The MARSS business is now integrated with EOS’s Defence Systems division, strengthening the group’s position in Europe and the Middle East.

The half also saw EOS undertake a major $190 million capital raise and secure a new $100 million loan facility, of which $70 million has been drawn. The company continues to invest heavily in research and development, with a particular focus on high-energy laser weapons and fully integrated counter-drone solutions.

What’s next for Electro Optic Systems?

EOS expects continued strong demand driven by defence spending and escalating interest in counter-drone technologies globally. The company’s contracted order book now stands at $846 million, underpinning future revenue.

Management forecasts full-year 2026 revenue (including MARSS) of $360 million to $400 million—potentially a record result—assuming global supply chains remain steady. The company says it will keep the market updated as major deals progress, especially in key regions like Europe, the Middle East, and North America.

Electro Optic Systems share price snapshot

The EOS share price has been among the best performers on the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a gain of 70%.

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The post Electro Optic Systems half-year earnings surge on booming defence demand appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 Electro Optic Systems. 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 summary of the company announcement. 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.