Stock Pick

  • Up 42% in a year. How much higher can BHP shares go?

    Two young male miners wearing red hardhats stand inside a mine and shake hands.

    BHP Group Ltd (ASX: BHP) shares have fallen around 1% in Wednesday lunchtime trade.

    At the time of writing, the shares are changing hands for $60.92 a piece. They’re now up 33% for the year to date and 42% higher than 12 months ago.

    BHP earnt most of its annual gains through October 2025 to late-August this year, when it peaked at an all-time high of $67.67 a piece. But since then, the ASX mining shares have tumbled lower, down around 10% to the time of writing.

    Now many are questioning whether the mining giant’s shares can return to, or even surpass, the all-time high recorded two months ago.

    Or is the rally now over?

    Here’s what the experts think.

    Are BHP shares a buy, sell, or hold?

    Brokers and analysts are mostly neutral on the outlook for the miner’s shares over the next 12 months.

    Market Index data shows the majority have a hold rating on BHP, and the $61.50 average target price implies a 1% upside, at the time of writing.

    The data on TradingView is similar. The majority (12 out of 21) have a hold rating on the shares, although another six rate BHP as a strong buy, and three rate the shares a sell/strong sell.

    The average $62.45 target price implies a 3% upside at the time of writing.

    Fairmont Equities thinks that this mining giant could be an ASX 200 share to buy. The broker said it thinks commodities markets are still only in the early stages of a bull run, leaving BHP’s share price in a prime position to move higher. It said that the company should also benefit from constrained global supplies of copper.

    Morgan Stanley also recently renewed its buy rating on BHP shares, with a 12-month price target of $68.

    Elsewhere, Red Leaf Securities has a hold rating on the mining shares. The broker warns that a softer global growth outlook and uncertainty surrounding Chinese commodity demand limits the case for aggressively buying the stock right now.

    On the flip side, Catapult Wealth is much more bearish, with a sell rating on BHP shares. The broker said that the global miner delivered a strong FY26 result, but that it still sees an issue with its share price. After this year’s rally, there are concerns that BHP has now run too far ahead of true value.

    What could influence the miner’s share price over the next 12 months?

    I think there is still some potential ahead for BHP shares. 

    The company has recently faced headwinds from broad market weakness, higher oil prices, and ongoing disruptions to some of its operations.

    If we see a turnaround in any, or all, of these headwinds, then we could see BHP shares run higher.

    Last month, BHP was forced to suspend mining activities at its Escondida copper mine in Chile after a fatal accident. Under Chilean mining regulations, operations cannot restart following a fatal accident until safety inspectors have confirmed that conditions are safe. There is no indication when production might resume, but when it does, I expect a jump in investor interest.

    Meanwhile, higher oil prices and inflation concerns are creating broad market weakness. If conflict in the Middle East reaches some sort of resolution, and oil supply flows well through the region, it’ll certainly have a positive impact on BHP shares. 

    The post Up 42% in a year. How much higher can BHP shares go? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Samantha Menzies has positions in BHP 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • WAM Leaders vs Growthpoint Properties: Which 7%+ yield stock looks better for passive income?

    Man reading his emails on a laptop while relaxing on a beach.

    WAM Leaders vs Growthpoint Properties Australia shares: Which high-yield stock looks better for passive income?

    Everyday Aussie investors love the idea of building passive income from high-yield shares. Right now, WAM Leaders (ASX: WLE) and Growthpoint Properties Australia (ASX: GOZ) both offer eye-catching yields, but they go about it in different ways. Whether you’re chasing franking credits, steady long-term income, or resilience against market wobbles, these two income stocks deserve a closer head-to-head. Here’s what I see as the key differences between WAM Leaders vs Growthpoint Properties Australia shares, and which one looks most compelling for passive income right now.

    The case for WAM Leaders

    WAM Leaders is a listed investment company (LIC) focused on delivering both regular dividends and capital growth by investing in undervalued large-cap Australian companies. Since starting in 2016, it’s made a name for paying reliable, fully franked dividends—a big plus for Aussie investors who value franking credits to boost after-tax returns. The company’s stated goals are to preserve capital and generate income streams for shareholders.

    Looking at the most eye-catching fundamentals:

    • The current trailing dividend yield sits at 7.3%, fully franked—a major attraction for income seekers, as it means more in your pocket after tax.
    • Market cap comes in at about $2.05 billion, so it’s solidly mid-sized but not a giant.
    • Importantly for some, every dividend in recent years has been 100% franked, a consistency I really appreciate.

    Dividends have been on a rising trend, growing steadily from $0.01 per share in 2017 to $0.048 most recently (as of April 2026). This LIC has kept its focus squarely on delivering shareholder income, with interim and final dividends twice a year.

    The case for Growthpoint Properties

    Growthpoint is a property trust (REIT) with a big portfolio of office and industrial properties across Australia, plus a growing funds management side. Its model is about generating steady rental income and passing a generous slice of that on to investors via distributions. The headline is its very high dividend yield—an outcome of both a juicy payout ratio and the recent softness in property share prices.

    Here are the standout fundamentals:

    • Growthpoint’s trailing dividend yield is currently an impressive 9.53% (as per the latest supplied figures).
    • The company’s market cap is roughly $1.46 billion, a touch smaller than Wam Leaders.
    • However, unlike WAM Leaders, Growthpoint pays unfranked distributions—so income isn’t boosted by franking credits.

    The dividend track record is strong in absolute dollar terms, with distributions consistently paid twice a year. Over the last decade, annual dividends per share have ranged from $0.06 to around $0.18 per share. The most recent payment (June 2026) was $0.092 per share, unfranked.

    Valuation comparison

    There are some sharp differences in value and yield when you put the two side by side:

    Metric WAM Leaders Growthpoint Properties
    P/E Ratio N/A 16.22
    Dividend Yield 7.3% (fully franked) 9.53% (unfranked)
    Market Cap $2.05 billion $1.46 billion
    Franking 100% 0%
    EPS N/A 0.119
    Dividend per Share N/A 0.18

    It’s worth noting that WAM Leaders doesn’t report a conventional P/E or EPS in the data supplied, likely because LICs typically report net tangible assets (NTA) and realised gains instead. Growthpoint’s reported P/E of 16.22 appears reasonable for a property trust, but since REIT earnings can fluctuate with asset revaluations, that ratio may not tell the complete story.

    Recent share price momentum

    Comparing recent share price performance up to 9 October 2026:

    • WAM Leaders closed at $1.27 on 9 October 2026, down from $1.29 two weeks prior, with only a modest -0.78% change on the day. Year to date, it’s eked out a positive 1.5% return.
    • Growthpoint Properties Australia closed at $1.93 on 9 October 2026, up slightly (0.52%) on the day, but year to date the shares have dropped sharply, down -17.1%.

    So while both can be a bumpy ride in the short term, WAM Leaders has actually delivered a small positive return this year, whereas Growthpoint has taken a significant hit.

    Which is the better buy?

    For someone purely chasing the highest upfront income, Growthpoint Properties Australia’s 9.53% dividend yield looks too good to ignore—at least on paper. But that yield comes unfranked, making it less attractive after tax for most Aussies, especially compared to WAM Leaders’ 7.3% fully franked payout. Once you factor in franking credits, WAM Leaders’ “grossed up” income stream looks just as attractive if not better for many investors.

    What could tip the scales for me is the combination of dividend quality and share price resilience. Growthpoint looks cheap with a high yield right now, but its share price has slumped over 17% this year—a signal the market is nervous about its property values or earnings outlook.

    Meanwhile, WAM Leaders has kept delivering growing, fully franked payouts, with much less recent share price pain. That consistency means a lot for peace of mind. So, for reliable, tax-friendly income that seems less at the mercy of listed property market swings, my pick would be WAM Leaders right now. It’s not the absolute highest dollar yield, but I like the balance of yield, franking and stability for a hands-off, passive income portfolio.

    The post WAM Leaders vs Growthpoint Properties: Which 7%+ yield stock looks better for passive income? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Laura Stewart has positions in Wam Leaders. 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. 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.

  • Are Rio Tinto shares a buy following its Q3 update?

    Two people wearing hard hats talking with each other at a mine site, with two workers in the background.

    Rio Tinto Ltd (ASX: RIO) shares are in spotlight today after the mining giant released its third-quarter production update.

    There was plenty to like in the announcement, particularly the progress being made across its iron ore and copper operations.

    But does the update strengthen the case for buying Rio Tinto shares? Here’s what I think.

    A solid quarter for Rio Tinto

    One of the highlights was the continued strength of Rio Tinto’s iron ore business.

    The company reported global iron ore sales of 90.8 million tonnes during the quarter, an increase of 3% on the prior corresponding period. Its Pilbara operations also performed well, with sales increasing 2% to 85.7 million tonnes.

    I think that is encouraging because iron ore remains an important source of earnings and cash flow for the company.

    Strong operational performance here can help Rio Tinto fund its investments in other commodities, particularly copper and lithium.

    There was also positive progress at Simandou, the enormous iron ore development in Guinea.

    The project reached an annualised production rate of approximately 10 million tonnes during the quarter and remains on track to reach a 60 million tonne annualised rate in the second half of 2028.

    That gives Rio Tinto another avenue for production growth over the next few years.

    Copper is becoming increasingly important

    The other part of the update that caught my attention was the performance of Oyu Tolgoi in Mongolia.

    Copper production at the operation increased 27% compared with the same quarter last year, reflecting the ongoing ramp-up of its underground mine.

    This helped offset weaker production elsewhere in Rio Tinto’s copper portfolio, leaving total copper output broadly unchanged for the quarter.

    I think Oyu Tolgoi could become an increasingly valuable part of the business. Copper demand is expected to benefit from investments in electricity networks, renewable energy, electric vehicles, and data centres. And Rio Tinto is positioning itself to meet some of that demand.

    The company expects Oyu Tolgoi to produce around 500,000 tonnes of copper annually between 2028 and 2036, giving it a substantial production base for the coming decade.

    For me, that is one of the strongest reasons to consider owning Rio Tinto shares for the long term.

    What else stood out?

    I was also encouraged by management’s continued focus on improving productivity.

    Rio Tinto remains on track to achieve an annualised productivity benefit of $1.8 billion by the end of 2026.

    It has also announced more than $2 billion of capital release initiatives this year as part of a broader programme to free up funds from its portfolio.

    I think improving efficiency and making better use of capital could be valuable as Rio Tinto continues investing in growth.

    Foolish takeaway

    I think Rio Tinto’s latest update gives investors more reasons to be positive about its future.

    The company is delivering solid operational performance while making progress on projects that could support earnings growth well beyond 2026.

    I would be happy buying Rio Tinto shares for the long term, particularly with its copper business set to become increasingly important over the coming years.

    The post Are Rio Tinto shares a buy following its Q3 update? appeared first on The Motley Fool Australia.

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    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 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.

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