Owning Coles Group Ltd (ASX: COL) shares could be a wonderful pick for dividend income in the years ahead because of their stability and growth.

Coles is best known for its supermarket business, the second-largest operator in Australia. It also has a liquor division which includes Coles Liquor and Liquorland, a 50% stake in Flybuys, and it offers financial products like insurance, credit cards and personal loans.

Given that food is a life essential, I think Coles is one of the leading ASX defensive shares in Australia. Australia’s steady population growth is a key driver of demand for Coles’ products.

I think Coles is one of the leading ASX blue-chip shares because of its track record of growing its payout and delivering a solid dividend yield.

Let’s take a look what could happen with a $6,000 investment in Coles shares.

Strength of the dividend

Coles spun off from Wesfarmers Ltd (ASX: WES) more than seven years ago. Since then, the supermarket business has increased its annual dividend every year. None of Australia’s largest businesses can say that they have done the same – COVID-19 impacts, lower commodity prices, or inflation led to dividend cuts this decade for many of the large ASX shares.

Coles has kept things consistent, and shareholders’ bank accounts have benefited.

The ASX blue-chip share generated underlying net profit after tax (NPAT) growth of 13.7% to $1.25 billion in FY26, helping fund a 13% increase in the annual dividend per share to 78 cents per share.

At the time of writing, the FY26 payout translates into a grossed-up dividend yield of 4.8%, including franking credits. But, that’s the past. Any investors buying Coles shares will receive the 2027 financial year dividend next, so we should focus on that.

Excitingly, the payout is forecast to increase again in FY27. According to CommSec’s projection, the ASX blue-chip share is expected to pay an annual dividend of 83.5 cents per share. That would be year-over-year growth of 7%, much stronger than inflation.

That projected payout for FY27 would also represent a forward grossed-up dividend yield of 5.2%, including franking credits.

$6,000 investment in Coles shares

If someone were to buy $6,000 of Coles shares today, they’d be able to buy 260 Coles shares.

That could mean dividend cash of $217.10 from FY27 and grossed-up dividend income of $310.14 including franking credits.

If I were looking for dividend income from an ASX blue-chip share, Coles would be a strong contender. But it’s not the only business I’d look at today for returns.

The post If I buy $6,000 of Coles shares, how much dividend income will I receive? appeared first on The Motley Fool Australia.

More reading

• Insurance Australia Group vs Coles: Which ASX dividend comes out on top?
• Why I’d buy CBA and Coles shares in October
• BHP vs Coles: Which ASX share is better for passive income?
• How much is needed in superannuation to target a $10,000 monthly passive income?
• Investors get defensive as ASX 200 drifts to a 15-week low

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 Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Capricorn Metals Ltd (ASX: CMM) share price is in focus after the company reported gold production of 31,218 ounces for the September 2026 quarter, in line with guidance, and announced the completion of the Karlawinda Expansion Project on schedule.

What did Capricorn Metals report?

• Gold production for Q1 FY27: 31,218 ounces (vs 30,437 ounces in Q4 FY26)
• Karlawinda Expansion Project completed on time and within budget
• Cash and gold on hand at 30 September 2026: $535.0 million (up from $507.0 million at 30 June)
• Underlying cash build for the quarter: $62.2 million, prior to $42.7 million capital expenditure
• FY27 production guidance of 137,000–147,000 ounces at AISC of $1,900–$2,100 per ounce reaffirmed

What else do investors need to know?

Mining activities continued at the expanded rate across the Karlawinda Gold Project, allowing for both strong gold output and the seamless integration of the new processing facilities. The commissioning of the expanded plant has increased processing capacity to 6.5 million tonnes per annum, with expected annual gold production now at 150,000 ounces going forward.

Development is also progressing at Capricorn’s Mt Gibson Gold Project. During the quarter, $2.1 million was spent mainly on procurement and contract set-up, positioning the company well for a quick construction start after regulatory permits are received. Federal approvals have been secured and key state environmental assessments are underway.

What’s next for Capricorn Metals?

Capricorn expects to maintain steady production in line with its guidance for FY27, as the benefits of the Karlawinda Expansion Project begin to flow through. The company aims to lift output to 150,000 ounces per year at the Karlawinda operations, while advancing the Mt Gibson Gold Project, pending further permitting decisions.

Investors will be watching for the release of more detailed operational and cost figures in Capricorn’s full quarterly report later in October, as well as regulatory progress and timelines at Mt Gibson.

Capricorn Metals share price snapshot

Over the past 12 months, Capricorn Metals shares have risen 5%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has fallen 3% over the same period.

View Original Announcement

The post Capricorn Metals delivers solid Q1 gold output and expansion milestone appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 6 ASX shares upgraded by experts amid a weak market 
• 5 things to watch on the ASX 200 on Tuesday
• 2 ASX 200 shares just upgraded to buy ratings
• 5 things to watch on the ASX 200 on Monday

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 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 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.

ResMed vs Fisher & Paykel Healthcare shares

Looking at the ASX 200 healthcare sector, you’re likely to come across two standout names: ResMed Inc (ASX: RMD) and Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH). Both are leaders in designing and manufacturing respiratory and sleep apnea devices. With the health tech industry under the spotlight, many investors want to know—between ResMed shares and Fisher & Paykel Healthcare shares, which offers better value right now?

The case for ResMed

ResMed is a global leader in sleep technology and respiratory devices, best known for its CPAP machines, masks, and related cloud-based software. Originally founded in Australia but now headquartered in the US, ResMed operates across more than 140 countries and serves both hospitals and home-based patients. Its broad product range targets sleep apnea, COPD, and other respiratory conditions, as well as providing digital tools for healthcare professionals and carers.

Notably, ResMed boasts a substantial market capitalisation at $45.51 billion, making it one of the larger players in the healthcare space. Its price-to-earnings (P/E) ratio sits at 21.51, and earnings per share are reported at 1.043. The current dividend yield is 1.11%, with a dividend per share of $0.38. However, it’s worth noting that its dividends are unfranked and—according to the data here—Year To Date Return is a negative -10.3%. This recent underperformance might catch the eye of value-focused investors looking for a turnaround.

ResMed’s dividend record is steady with consistent, albeit modest, growth over the years, but it doesn’t offer franking credits—so it’s less appealing to income investors seeking tax-effective Australian dividends.

The case for Fisher & Paykel

Fisher & Paykel Healthcare is another respiratory heavyweight, based in New Zealand. While also strong in sleep apnea devices, Fisher & Paykel Healthcare puts even more emphasis on hospital-focused respiratory systems, particularly in acute and critical care. The company earns a large proportion of its revenue from the US and Europe, and invests heavily in research and development, maintaining a robust innovation pipeline.

Fisher & Paykel Healthcare’s market cap sits at $21.97 billion—roughly half of ResMed’s. Its current P/E ratio is a hefty 57.56 and EPS is listed as 0.793. Dividend yield is just above ResMed at 1.18%, with dividend per share at $0.44, though these also come unfranked. What really jumps out to me, though, is the company’s strong price momentum: its Year To Date Return is 13.54%, a significant positive in contrast to ResMed’s negative performance.

Their dividend stream includes both interim and supplemental payments, and like ResMed, there’s no franking benefit for Australian investors.

Valuation comparison

With both companies serving similar end-markets, their valuation metrics reveal a strong contrast:

Metric	ResMed	Fisher & Paykel
Market Cap	$45.51 billion	$21.97 billion
P/E Ratio	21.51	57.56
Dividend Yield	1.11%	1.18%
Dividend per Share	$0.38	$0.44
Earnings per Share	1.043	0.793
YTD Return	-10.3%	13.5%

ResMed trades at a notably lower P/E than Fisher & Paykel Healthcare, making it look comparatively cheaper based on earnings. The two offer similar dividend yields, both unfranked. ResMed also delivers a higher EPS.

Recent share price momentum

Comparing recent share price performance up to 30 September 2026:

• As of 30 September 2026, ResMed shares closed at $31.98, rising 0.95% that day, but are down -10.3% for the year to date.
• On the same date, Fisher & Paykel Healthcare shares closed at $37.43, rising 1.71% on the day, and are up 13.5% year to date.
• Fisher & Paykel Healthcare has enjoyed stronger recent momentum, with a solid upward trend during September compared to ResMed’s more muted, slightly negative swings.

Which is the better buy?

If I’m weighing up ResMed and Fisher & Paykel Healthcare on value right now, I’d lean towards ResMed. Its P/E ratio of 21.51 is much lower than Fisher & Paykel Healthcare’s 57.56, suggesting ResMed shares are more attractively priced relative to current earnings—especially since both companies are exposed to similar markets and risks.

While Fisher & Paykel Healthcare is running hot with a strong year-to-date share price gain, that momentum comes at the cost of a very steep valuation multiple. Even with a slightly higher dividend yield, I don’t see enough income upside to justify paying nearly three times the P/E for Fisher & Paykel Healthcare.

Both companies are outstanding in healthcare tech, and Fisher & Paykel’s recent gains are impressive, but for pure valuation appeal, my pick would be ResMed. I think it’s offering better value for investors looking for quality, scale, and the potential for a turnaround in sentiment.

The post ResMed vs Fisher & Paykel Healthcare: Which is better value? appeared first on The Motley Fool Australia.

More reading

• How to build a $52,000 passive income with ASX shares
• Is the ResMed share price a cheap buy?
• 5 best ASX shares to buy in October
• How I’d build a $50,000 ASX share portfolio today
• 5 things to watch on the ASX 200 on Thursday

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 ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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.