S&P/ASX 200 Index (ASX: XJO) shares are 0.4% higher at 8,697.3 points on Friday.

Brokers have reduced their ratings on six ASX shares this week.

Let’s take a look.

AMP Ltd (ASX: AMP)

The AMP share price is $2.47, up 2.3% today. 

Over the past month, this ASX 200 financial share has fallen 0.2%.

UBS downgraded AMP shares to a hold rating with a $2.61 target this week.

This implies a potential 5% upside ahead.

Fortescue Ltd (ASX: FMG)

The Fortescue share price is $15.45, down 2.2% today.

Over the past month, this ASX 200 mining share has fallen 12%.

Morgans downgraded Fortescue shares from hold to trim yesterday.

The broker slashed its 12-month price target from $18.70 to $15.40.

This suggests the stock is already fully valued.

Meteoric Resources Ltd (ASX: MEI)

The Meteoric Resources share price is 24 cents, up 0.8% today.

Over the past month, this ASX mining share has jumped 21%.

Ord Minnett downgraded Meteoric Resources shares to a hold rating this week.

The broker has a 12-month price target of 25 cents.

This suggests just a 3% potential upside ahead.

Orica Ltd (ASX: ORI)

The ORI share price is $22.98, up 0.6% today.

Over the past month, this ASX 200 materials share has edged 0.3% higher.

Morgans downgraded Orica shares from buy to accumulate this week.

The broker shaved its price target from $26.60 to $26.52.

This indicates potential gains of 15% over the next 12 months.

The broker said: 

ORI has updated the market on its US AN sourcing, non-core land sale, recent acquisitions, cost out program and FY26 business performance. The important point is that the broader business continues to perform strongly, in line with its expectations.

We have trimmed our FY27 NPAT forecast by 3.6% reflecting increased AN sourcing costs in the US, more gradual recovery in Indonesia coal production, plant turnarounds and higher interest costs given the Deer Park sale isn’t going through.

SKS Technologies Group Ltd (ASX: SKS)

The SKS Technologies Group share price is $8.60, down 2.4% today.

Over the past month, this ASX industrials share has risen 7%.

PAC Partners downgraded SKS Technologies shares to a hold rating on Wednesday.

The broker raised its price target from $10.20 to $10.56.

This implies a potential 24% upside over the next year.

Bank of Queensland Ltd (ASX: BOQ)

The Bank of Queensland share price is $6.45, up 1.1% today.

Over the past month, this ASX 200 financial share has fallen 1%.

Morgans downgraded Bank of Queensland shares from accumulate to hold this week.

The broker cut its 12-month price target from $6.94 to $6.40.

This suggests the bank stock is fully valued.

The post 6 ASX shares downgraded by experts this week appeared first on The Motley Fool Australia.

More reading

• Is the Fortescue share price a bargain buy?
• Buy, hold, sell: Rural Funds Group, Imdex, Fortescue shares
• 5 things to watch on the ASX 200 on Friday
• Buy, hold, sell: Orica, Bank of Queensland, Megaport shares
• Fortescue posts September 2026 quarterly earnings update

Motley Fool contributor Bronwyn Allen 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 Sks Technologies Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Some ASX dividend shares can provide plenty of passive income thanks to their pleasing dividend yields.

Interest rates have risen, increasing the cash return paid by term deposits, bonds, and so on. However, I think that good ASX dividend shares are even more appealing because they can provide even higher income and growth, and interest rates may not stay this high forever.

I’ll talk about two leading opportunities with dividends above 7%.

Dexus Industria REIT (ASX: DXI)

The first idea I want to talk about is a real estate investment trust (REIT) exposed to one of the best rental subsectors, in my view.

The business owns high-quality industrial warehouses across major Australian cities, providing sustainable income and capital growth over the long term.

Some of those tailwinds include long-term growth of e-commerce and data centres, helping drive the rental value of REITs.

It’s delivering a strong level of rental growth. For FY26, it revealed strong like-for-like portfolio income growth of 5.3%, supported by rental escalations, re-leasing spreads of 21.4% (new rental contracts are earning a lot more than the old contracts), and high occupancy of 98.8%.

The business expects to pay an annual distribution per unit of 16.6 cents. That’s a forward distribution yield of 7.2%.

Pleasingly, its rental income is regularly growing, with around 87% of rental income having fixed rental increases or CPI-linked reviews.

It looks cheap to me; the business reported net tangible assets (NTA) of $3.42 per security as at 30 June 2026.

WCM Global Growth Ltd (ASX: WQG)

The other ASX dividend share I want to highlight is this listed investment company (LIC).

I love particular LICs for their investment styles and the way they can deliver consistent, even growing dividends.

The fund manager WCM has two factors that it looks for to include in the portfolio, which targets international quality shares. It wants to find businesses with a rising competitive advantage (or expanding economic moat) and a corporate culture that supports the expansion of the economic moat.

In other words, the ASX dividend share is looking for great businesses that are set up for long-term success and are becoming increasingly good at what they do.

Impressively, the LIC’s portfolio has returned a net 21.2% per year over the past three years through August 2026, helping fund great dividends. Past performance is not a reliable indicator of future performance, of course.

The company recently paid a quarterly dividend of 2.35 cents per share in September 2026. It expects to hike its quarterly September dividend in a year from now by 10.6%.

Over the next year, it expects to pay quarterly dividends that total 10.1 cents per share. That works out to be a forward grossed-up dividend yield of 7.1%, including franking credits.

I think it’s a great time to invest in these two ASX dividend shares.

The post 2 ASX dividend shares with yields above 7% appeared first on The Motley Fool Australia.

More reading

• How much do I need to retire on $85,000 a year at 50?
• $3,000 buys 1,463 shares in an impressively reliable ASX dividend stock
• 2 ASX passive income share ideas I’d use to generate $300 a month in 2027
• How much do I need to retire on $110,000 a year at 65?
• Where I’d invest in ASX shares after the recent RBA rate rise

Motley Fool contributor Tristan Harrison has positions in Wcm Global Growth. 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’d describe Medibank Private Ltd (ASX: MPL) shares as one of the most underrated ASX dividend stocks for passive income based on three factors, which I’ll get into below.

Medibank Private is one of the largest private health insurers in Australia, with its Medibank Private and ahm brands. It also has a growing (via acquisitions) healthcare division.

It could be a top pick for passive income in the years ahead, generating $200 per month (or more). Let’s look at how that could be done.

Strong and growing dividend

One of the main reasons I think Medibank is an underrated business for dividend income is how consistently it has increased its payout.

In FY26, the business grew its annual dividend per share by 6.7% to 19.2 cents, following a 6.7% rise in the group operating profit to $813.5 million.

At the time of writing, its FY26 grossed-up dividend yield is 6%, including franking credits.

Since it started paying dividends in 2015, the business has increased its payout every year except 2020 due to COVID-related impacts. Therefore, it has increased its payout for six consecutive years, building a solid dividend growth streak.

Further dividend growth is expected in the years ahead.

The projection on CommSec suggests the business could hike its annual dividend by 12% in FY27 to 21.5 cents per share. That would translate into a grossed-up dividend yield of 6.7%, including franking credits.

There are not many S&P/ASX 200 Index (ASX: XJO) shares offering passive income as high as that while also growing the dividend at a good pace.

Rising profits

In my view, the most important element of a growing dividend is that it’s funded by rising profits.

Aside from the tailwind of ageing demographics, the company expects several positives in FY27.

It aims to grow its resident policyholder market share in a “disciplined way”, including improved volume momentum in the Medibank brand.

On top of that, the non-resident private health insurance gross profit is predicted to see “solid” growth in FY27.

The Medibank healthcare segment is forecast to see segment profit growth of around 25% in FY27, including a full-year contribution from Better Medical.

Finally, the company is open to making further acquisitions to boost its business, and it has the financial capacity to do so.

It’s valued at 17 times FY27’s estimated earnings.

$200 per month of passive income

The business doesn’t pay an annual dividend every month, so it’s better to think of the goal as an annual $2,400 target.

The amount of Medibank shares required for the dividend goal depends on whether franking credits are included or excluded. Excluding franking credits, an investor would need 11,163 Medibank shares for the goal. But with franking credits, an investor would only need 6,462 Medibank shares.

I think it’s a solid business to consider for passive income, though it’s not the only ASX stock that could produce good returns.

The post I’d buy 6,462 shares of this ASX stock to aim for $200 a month of passive income appeared first on The Motley Fool Australia.

More reading

• How much superannuation do I need to generate $100,000 per year in passive income?
• 5 things to watch on the ASX 200 on Thursday
• Where I’d invest in ASX shares after the recent RBA rate rise
• Is the Medibank share price a buy for its 6% dividend yield?
• How much is needed in superannuation to target a $10,000 monthly passive income?

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.