Origin Energy Ltd (ASX: ORG) shares among my top picks for passive income.

The company is a major ASX energy company that supplies electricity, natural gas, and solar power to homes and businesses across the country.

The company operates a huge electricity generation fleet powered by traditional fuels like natural gas and coal, including the Eraring Power Station in New South Wales.

It is also expanding its footprint into large-scale batteries, wind, and solar assets. 

Through joint ventures, Origin Energy has also diversified into natural gas supply and exports liquefied natural gas (LNG) globally.

And there’s more. Origin has also invested outside of the energy sector. The company also offers NBN broadband internet packages, electric vehicle (EV) charging integrations, and what it calls “virtual power plant orchestration”. This is where it uses smart software to sync thousands of home batteries, solar panels, and EVs so they act as one giant, decentralised power station.

Given both energy and connectivity are essential services, Origin Energy is widely considered as a classically defensive stock. 

This means its shares can usually be relatively resilient to sharemarket volatility, global uncertainty and inflation shifts. 

After all, Australians won’t stop powering their homes and businesses because the purse strings have tightened.

And there is another defensive quality too. Origin’s assets operate under long-term contracts, often with rising income. This means the company can lock in a stable cash flow and manage volatility as it arises.

And it passes these benefits directly onto its shareholders.

What’s the latest out of Origin Energy shares?

At the time of writing, Origin Energy shares are trading at $11.82 a piece. That’s a 9% increase during the first two weeks of October alone, and they’re now up 4% for the year-to-date.

What does Origin’s dividend look like?

Origin has historically paid its shareholders every six months, consisting of an interim dividend in March and a final dividend in October.

In FY26, the company paid its investors a total 60 cents per share dividend – 30 cents per share in March and another 30 cents per share in October – fully franked.

At the time of writing that translates to a dividend yield of around 5.2%.

What is the ASX energy company forecast to pay shareholders in FY27 and FY28?

According to CommSec forecasts, Origin Energy is expected to continue paying shareholders a 60-cent annual dividend in FY27 and FY28. Is it then expected to pay a slightly higher 62-cent dividend in FY29.

At the time of writing, that implies a forward yield of 5.2% for FY27 and FY28. For FY29 the forward yield is a little higher, at 5.24%.

So, how many Origin energy shares do I need to generate $1,000 of passive income every month?

Origin Energy doesn’t pay its dividends on a monthly basis so first we need to calculate what $1,000 per month in passive income is over the whole year ($12,000). 

In order to earn $12,000 per year in passive income from Origin Energy shares in FY27 and FY28, at 62 cents per unit, investors would need to own around 20,000 shares.

To earn the same amount from the projected 62-cent dividend in FY29, investors would need to own roughly 19,354 shares.

What would that cost?

At $11.82 per share, 20,000 shares would require an investment of around $236,400 for FY27 and FY28. This would give the equivalent passive income of around $1,000 per month.

To earn the same in FY28, investors would need to spend closer to $228,764.

These aren’t small sums but Origin’s stable dividend payment could make the investment worthwhile. And remember, you don’t need to invest the whole lot in one go. Let compound growth do some of the work.

The post How many Origin Energy shares do I need for $1,000 per month of passive income in FY27? appeared first on The Motley Fool Australia.

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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.

Commonwealth Bank of Australia (ASX: CBA) shares have climbed higher into the green in Thursday afternoon trade.

At the time of writing the shares are up over 3% and changing hands for $156.04 a piece.

At one point this afternoon, the shares reached as high as $157.08 each.

Today’s increase means the ASX bank shares are now up around 5% over the past week, recouping some losses shed earlier this year.

CBA shares are still down around 3% for the year-to-date and down roughly 6% compared to this time last year.

For context, the S&P/ASX 200 Index (ASX: XJO) is travelling in the other direction today. At the time of writing the index is down slightly, around 0.5%.

Why are CBA shares climbing higher again today?

There isn’t any price sensitive news out of CBA today to explain today’s share price jump. 

It looks like the ASX bank sector as a whole is rallying higher, with the other big four banks also making gains in afternoon trade.

The main catalyst is most likely the result of fresh economic data, announced today. 

The Australian Bureau of Statistics (ABS) released data showing that, in seasonally adjusted terms, Australia’s employment rate increased 0.1ppt to 4.7% for September. 

It looks like this has significantly boosted investor confidence that the Reserve Bank will decide to hold interest rates steady at its next meeting on the 3rd of November, rather than implement another hike as originally feared.

Renewed confidence that the RBA will pause rates for the time being looks to have lifted the entire financial sector. And as CBA has the most dominant market position as Australia’s largest bank, it is leading the share price increase today.

Are the bank shares a buy, hold, or sell now?

The latest analysts data still shows the experts are wary about the outlook for CBA shares over the next 12 months. 

Market Index data shows that all brokers still have a strong sell rating on CBA shares. The $125.20 target price implies the shares could fall another 20% over the next 12 months, at the time of writing.

TradingView shows something similar. The majority (14 out of 16) have a sell/strong sell rating on the shares. However, two more have a hold rating on CBA.

The average $128.29 target price still implies a potential downside of around 18%, at the time of writing.

It looks like today’s news was positive for CBA shares, but it’s most likely to be short-lived. The bank is still significantly overvalued versus its peers and the mortgage market still remains under pressure.

The post CBA shares jump 3% today: Is this the start of a rebound? appeared first on The Motley Fool Australia.

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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.

ASX small-cap shares are underperforming in 2026 amid four interest rate rises from the Reserve Bank and one in the US.

The S&P/ASX Small Ords Index (ASX: XSO) has collapsed 18% in the calendar year to date (YTD).

Meanwhile, the S&P/ASX All Ords Index (ASX: XAO) has fallen 2%.

Morgans reckons there are buying opportunities among the small caps today.

Let’s check out three that the broker highlighted in new notes this week.

Atomic Eagle Ltd (ASX: AEU)

Atomic Eagle shares are 35 cents, down 6.7% today and up 46% since listing last November.

Morgans has initiated coverage with a speculative buy call on this ASX small-cap energy share. 

The broker has a 12-month price target of 80 cents.

This indicates a potential 128% upside ahead.

Morgans said: 

AEU offers exposure to Muntanga, a simple, low-capex heap leach uranium project in Zambia, plus a 60% interest in the high-grade Madaouela project in Niger. Buy Muntanga, get Madaouela for free.

AEU trades on just A$2.1/lb EV/resource versus the peer average of A$4.8/lb. In our view, the market is largely valuing Muntanga alone, with Madaouela’s 116.5Mlb U3O8 foreign resource estimate contributing little to the current share price despite its scale, grade and strategic importance.

Near-term catalysts include Madaouela JORC conversion (end-2026), Muntanga North drilling results (Q4 2026) and a Muntanga resource upgrade as AEU works toward its 100Mlb+ target.

Baby Bunting Group Ltd (ASX: BBN)

The Baby Bunting Group share price is $1.07, down 2.7% today and down 62% over 12 months. 

Morgans has a buy rating on this ASX small-cap consumer discretionary share. 

The broker has a 12-month share price target of $1.62.

This implies a potential 51% upside ahead.

Morgans said: 

BBN has provided a trading update for the first 14 weeks of FY27 which was broadly in line with expectations.

Comparable sales growth has moderated to +2.2% from +4.3% in the first 6 weeks of FY27 driven by the ramp up of temporary store closures in the period.

17 stores have now been refurbished to the Store of the Future format; they continue to deliver strong results, with average sales growth of 20% in the first year after re-opening, which sits within the 15-25% target range.

BBN has reiterated FY27 guidance for pro-forma NPAT of $19-21m, with sales of $585-600m (3-5% LFL sales growth), and 42% gross margin. Capex guidance was also maintained at $33-37m.

BBN is trading on <8x FY27F PE, which we believe undervalues its earnings growth profile over the next few years.

MotorCycle Holdings Ltd (ASX: MTO)

The MotorCycle Holdings share price is $2.89, up 0.4% today and down 11% over 12 months. 

Morgans has a buy recommendation on this ASX small-cap retail share. 

The broker has a 12-month price target of $4.30.

This suggests a potential 48% upside ahead.

Morgans said: 

MTO’s investor day reinforced a business transformed in scale and mix, with wholesale driving earnings in a challenging market, retail and data offering the next leg of improvement, and FY31 targets giving clarity on the growth trajectory ahead.

The group set FY31 targets (A$1.2bn+ revenue, ~6% implied ROS) pointing to ~8% pa sales growth and ~11-15% pa PBT growth over the 5 year period.

We’re encouraged by MTO’s clear strategy ahead. We think the market overlooks MTO’s wholesale business, which has meaningful growth levers across product, categories and partnerships.

We see scope for Retail upside from Harley-Davidson scale, ongoing brand rationalisation and data and systems integration.

Double-digit earnings growth and a net cash balance sheet look compelling on ~7x PE.

The post 3 ASX small-cap shares with 48% to 128% upside ahead: Morgans appeared first on The Motley Fool Australia.

More reading

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• This high-dividend ASX small cap could rise more than 50%: Broker
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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 recommended Harley-Davidson. The Motley Fool Australia has recommended MotorCycle. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.