Looking for some new portfolio additions?

Well, it could pay to hear what Morgans is saying about the popular ASX shares in this article. Are they buys, holds, or sells? Here’s what you need to know:

Fortescue Ltd (ASX: FMG)

Morgans notes that this iron ore giant delivered a mixed FY 2026 result with flat earnings.

In light of this, the broker has retained its hold rating with a reduced price target of $18.70. It said:

A mixed FY26 result from FMG, with higher revenue helping to offset cost increases and elevated admin/R&D to help keep underlying earnings flat. With the focus on FY27 guidance, Iron Bridge remained a key issue, with the magnetite operation struggling through ramp up and with elevated costs. Plans for a green steel plant was big news, although difficult to quantify. We maintain a HOLD rating, with an A$18.70 target price (was A$21.80).

Megaport Ltd (ASX: MP1)

The broker was impressed with this network-as-a-service company’s results and guidance for FY 2027.

In response, the broker has upgraded Megaport shares to a buy rating with a $25.00 price target. It commented:

MP1’s FY26 underlying EBITDA and FY27 EBITDA guidance were above market expectations. Both Network and Compute delivered record growth. At first glance, simple maths suggests MP1’s funding position looks tight. However, there is nearly $500m of additional funding that got lost in translation. We think MP1 ends FY27 with nearly $600m of surplus liquidity (assuming no new deals get signed). 

Deals already contracted deliver $620m of annualised contracted EBITDA which means after EBITDA lifts 3x YoY in FY27, it will more than double into FY28, based on deals already signed. We upgrade to a Buy recommendation and $25 target price.

Northern Star Resources Ltd (ASX: NST)

Finally, following the release of an FY 2026 result that was in line with expectations, Morgans has downgraded this gold miner’s shares to a hold rating with a $25.00 price target. 

Commenting on the downgrade, Morgans said:

FY26 result was in line with a 30cps final dividend beating both MorgansF and consensus, while FY27 guidance met expectations at the headline level despite KCGM ramp-up risk. Move to a HOLD (previously ACCUMULATE) with a A$25ps target price. We expect the near-term valuation discount to persist until operating & strategic clarity improves post KCGM ramp-up and new CEO beginning in October.

The post Buy, hold, sell: Fortescue, Northern Star, and Megaport shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. 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.

Retirement is usually presented as a switch. One day you work. The next day you stop, roll onto income from your superannuation. Additionally, some may also utilise the Age Pension to fill any gaps.

However, financial independence does not need to be that binary.

A more useful goal may be to build an investment portfolio that makes full-time work optional by 55. You might still work, run a business, or take on projects. The difference is that a portfolio now pays part of the household bills, giving you greater freedom to choose the work that deserves your time.

That is not retirement. It is leverage over your own life.

The portfolio outside superannuation

There is one important catch. According to the Australian Taxation Office, Australians can generally access super when they reach preservation age and retire, or after turning 65 regardless of whether they are still working. For anyone currently approaching 55, preservation age is 60.

That means a portfolio designed to create freedom at 55 needs to sit largely outside superannuation. It can operate as a five-year bridge before super becomes available, then continue providing income alongside super after 60.

The target also becomes less intimidating when the goal is supplemental income, not replacing an entire salary.

At an illustrative 4% dividend yield, a $300,000 portfolio could produce $12,000 a year before tax. A $500,000 portfolio could produce $20,000, while $750,000 could produce $30,000.

None of those amounts may fund a lavish retirement alone. But an extra $20,000 or $30,000 could make a four-day week possible, support a lower-paid role with more personal meaning, or provide breathing room to build a business without demanding an immediate full-time income.

Build for growth before switching to income

The mistake would be chasing the highest dividend yield from day one.

An investor with a decade or more before 55 may be better served by focusing on total returns: businesses that can grow earnings, reinvest capital, and increase dividends over time. Distributions can be reinvested while employment income still covers living costs.

Broad exchange-traded funds can provide a diversified foundation. The Vanguard Australian Shares Index ETF (ASX: VAS) holds a broad portfolio of Australian shares, while the Vanguard MSCI Index International Shares ETF (ASX: VGS) provides exposure to developed markets outside Australia.

Individual ASX shares could sit around that core, but income quality matters more than headline yield. Sustainable dividends are normally supported by durable cash flow, sensible payout ratios, and strong balance sheets. A yield that looks unusually high can also be the market warning that a dividend cut is coming.

As 55 approaches, the portfolio does not need to be rebuilt overnight. An investor could simply stop reinvesting distributions, direct new money towards income-producing assets, and build a cash buffer. Selling appreciated investments may trigger capital gains tax, another reason a gradual transition can make sense.

What happens to the Age Pension?

The Age Pension currently begins at 67 and is subject to income and assets tests. Shares, cash, and other financial investments can affect how much someone eventually receives, while Centrelink uses deeming rules to assess income from financial assets.

Building a substantial portfolio could therefore reduce or eliminate future Age Pension access.

However, that is not necessarily a failed outcome. A larger pool of productive assets may provide more income, flexibility, and control than arranging an investment life around a government threshold that remains 12 years away at age 55.

Foolish takeaway

The most valuable thing an ASX portfolio can buy at 55 may not be retirement. It may be choice.

A portfolio producing $20,000 or $30,000 a year will not make work disappear. It can change the role work plays, from financial necessity to a decision made on your own terms.

That is financial independence in a more practical form: not retiring early, but earning the right to choose early.

The post Could this ASX portfolio make work optional at 55? appeared first on The Motley Fool Australia.

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• Perpetual reveals $63.5m impairment after major fund redemption
• Corporate Travel Management updates UK remediation progress and settlement terms

Motley Fool contributor Leigh Gant 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 Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Rural Funds Group (ASX: RFF) share price is in focus today after the company reported full-year earnings of $124.1 million, a rise of $103.8 million mostly thanks to asset sales above book value and interest rate swap gains. Distributions per unit were steady at 11.73 cents, in line with forecasts.

What did Rural Funds Group report?

• Statutory earnings of $124.1 million, up $103.8 million year on year
• Net property income of $100.5 million, a 5.7% increase
• Adjusted funds from operations (AFFO) of 11.7 cents per unit, meeting forecasts
• Distributions per unit of 11.73 cents, unchanged and in line with guidance
• Adjusted net asset value (NAV) of $3.22 per unit, up 4.5% on the prior year
• FY27 forecast: AFFO and distributions both expected to remain steady at 11.7–11.73 cents

What else do investors need to know?

RFF sold $314.9 million in assets during the year, including six properties and water entitlements, at an average 18% premium to book value. These sales strengthened the balance sheet, reducing pro forma gearing to 31.8%, which sits comfortably within the target range.

The Group continues to focus on capital recycling and development, with FY27 forecast capital expenditure of $46.7 million. This investment is fully supported by available bank debt headroom of over $300 million and is aimed at expanding the productivity of its macadamia orchards and irrigated cropping properties.

What’s next for Rural Funds Group?

Looking ahead, the company expects AFFO and quarterly distributions to remain unchanged in FY27. There are also staged developments underway on two properties, aiming to drive future earnings. Management highlighted continued focus on defensive, inflation-hedged agricultural assets and enhancing portfolio value through selective development and leasing activity.

RFF’s long WALE of 14.8 years and quality tenant base, with nearly 90% of forecast income from corporate or institutional lessees, provide a steady foundation as the company seeks fresh growth opportunities.

Rural Funds Group share price snapshot

Over the past 12 months, Rural Funds Group shares have risen 11%, outperforming the All Ordinaries Index (ASX: XAO), which is flat over the same period.

View Original Announcement

The post Rural Funds Group FY26 earnings: Asset sales boost profit appeared first on The Motley Fool Australia.

More reading

• 3 top ASX dividend shares to buy now
• How much do I need to retire on $100,000 a year at 60?
• How much is needed in superannuation to target a $2,000 monthly passive income?
• 1 ASX dividend stock down 30% I’d buy right now
• How much is needed in superannuation to target a $90,000 annual passive income?

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 positions in and has recommended Rural Funds Group. 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.