Sigma Healthcare Ltd (ASX: SIG) shares have been on a strong run recently.

Since the middle of September, the Chemist Warehouse owner’s shares have outperformed the S&P/ASX 200 index (ASX: XJO) with a gain of around 13%.

However, one leading broker is calling time on the rally on the belief that its shares are about fair value now.

What’s happening?

According to a note out of Bell Potter, its analysts are expecting a good update from the company at this month’s annual general meeting. This is thanks largely to strong demand for GLP-1s. It said:

SIG will conduct is AGM in Melbourne on 21 October when it is expected to provide a 3 month trading update. LFL network sales growth is the key performance measure. The group reported 14.7% growth for this metric in 1Q FY26 aided by store refurbishments and GLP-1 tailwinds. 

In FY27 the bar is raised higher by virtue of the larger revenue base, nevertheless, the global GLP-1 phenomena continues with demand for private prescriptions likely to continue to increase. The downstream benefits will also flow, i.e. GLP-1 customer basket size is on average 40% larger than other customers, being mostly sales of protein and other dietary supplements. We expect 1Q27 network LFL network sales growth in the range of 12-13%.

Looking ahead, Bell Potter believes the launch of new GLP-1s will be supportive of growth for the ASX 200 share. It adds:

The next chapter of the GLP-1 growth is about to commence with the upcoming registration in Australia of the oral formulation of Lilly’s blockbuster GLP-1 medication – Mounjaro. The oral formulation (branded Foundayo) is expected to gain TGA approval in late CY26. The drug gained FDA approval in the US in April 202[6] with the US DTC launch in June 2026. June qtr 2026 global revenues reached US$98m. 

Elsewhere sales of Mounjaro (being the original injectable formulation) continue to grow rapidly. Lilly’s 2Q global sales increased 90% vs pcp to $US9.9bn. The read through to the Australian market is similarly positive where we believe private prescriptions for GLP-1 medications represent at least 44% of total prescriptions sold. All of this is a tailwind for SIG which is a major beneficiary of foot traffic into pharmacies for the purpose of prescription medicines.

ASX 200 share downgraded

In response to recent share price strength, Bell Potter has downgraded Sigma Healthcare’s shares to a hold rating (from buy) with an unchanged price target of $3.00.

Based on its current share price of $2.83, this implies modest potential upside of 6% for investors over the next 12 months.

Commenting on the downgrade, Bell Potter said:

The recent flight to safety away from tech is probably responsible for the rally in the SIG market price over recent weeks, nevertheless the stock remains expensive relative to growth outlook. In the absence of a significant upgrade, our recommendation is adjusted to Hold from Buy. PT is unchanged at $3.00.

The post Guess which ASX 200 share was just hit with a broker downgrade appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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.

Australians can use the power of the ASX share market to help them retire wealthy at age 57, or even earlier. It’s possible to create a lot of passive income from investments.

Superannuation is a great tool to save towards retirement. But what if someone wants to retire earlier than that? I think it’d be a good idea to invest outside of superannuation too.

Taxation can be an important factor, but every household has a different income and different tax situation, so I won’t talk about that side of things. I’m just going to look at how Australian investors can unlock gross passive income of $90,000 a year and retire by 57.

Regularly save and invest

Having cash to invest doesn’t just appear out of nowhere. Australians need to set some money aside, assuming their budget has the room to do so after paying for the essentials.

Essentially, we need to spend less than we earn and invest the difference. Of course, it’s a good idea to make sure we enjoy life during that period of wealth accumulation – life is not just about the money.

Every household has different finances, so it’s up to each Australian adult to figure out what they can save.

Investing those savings makes a big difference to how much the wealth grows to. For example, putting $1,000 per month under the mattress will turn into $120,000 after ten years.

If someone else invested $1,000 per month in the share market and it returned an average of 10% per year, it’d be worth $191,249 after a decade. After two decades of doing that, the balance would become $687,300. After three decades, it becomes an incredible $1.97 million.

Therefore, someone who’s 27 could start today and potentially have $1.97 million by 57 and retire.

Figure out what sort of investments to make

There are a number of ways for Australians and invest to build their wealth.

One of the simplest ways to build wealth is to invest in exchange-traded funds (ETFs) that give investors exposure to quality businesses from around the world, which I believe have a higher chance of delivering solid compounding earnings growth.

Some of my top choices for that investment exposure include Vanguard MSCI Index International Shares ETF (ASX: VGS), VanEck MSCI International Quality ETF (ASX: QUAL), Betashares Global Quality Leaders ETF (ASX: QLTY) and Global X S&P World EX Australia Garp ETF (ASX: GARP).

There are certain Australian companies that I also think could be excellent contenders to grow wealth over the long-term including Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Wesfarmers Ltd (ASX: WES) and L1 Global Long Short Fund Ltd (ASX: GLS).

The yield influences the portfolio size needed

The portfolio balance required to generate $90,000 per year depends on the dividend yield of the portfolio.

For example, if someone had a $2 million portfolio, it’d require a dividend yield of 4.5% to make $90,000 of annual passive income.

If the dividend yield was 3%, the portfolio would need to be $3 million in size.

With a dividend yield of 6%, the Aussie investor would need $1.5 million.

By choosing the right investments and regularly saving, an average Aussie can build a good amount of wealth and retire.

The post How much do I need to retire on $90,000 a year at 57? appeared first on The Motley Fool Australia.

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• Could $750,000 in ASX ETFs fund a comfortable retirement?
• 75% of my dividends come from these 4 ASX shares (and I want to buy more)
• If I could only buy 5 ASX shares for retirement, these would make my shortlist

Motley Fool contributor Tristan Harrison has positions in L1 Global Long Short Fund Ltd, VanEck Msci International Quality ETF, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Vanguard Msci Index International Shares ETF and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

For investors looking to generate passive income from the share market, there are plenty of opportunities among ASX dividend shares right now.

Here are three shares that income investors may want to consider.

Cedar Woods Properties Ltd (ASX: CWP)

The first ASX dividend share that could be worth considering is Cedar Woods Properties. This property developer has a growing portfolio of residential communities, townhouses, and apartments across Australia.

The company appears well positioned to benefit from Australia’s ongoing housing shortage and growing population, which could support demand for its developments. And with Cedar Woods reporting record presales of $830 million at the end of FY 2026, it has excellent visibility over future earnings.

Bell Potter is positive on the company and has a buy rating and $9.80 price target on its shares. As for income, it is forecasting fully franked dividends of 44 cents per share in FY 2027 and 47 cents in FY 2028. Based on its current share price of $5.90, this would mean dividend yields of approximately 7.5% and 8%, respectively.

Eagers Automotive Ltd (ASX: APE)

Another ASX dividend share that could appeal to income investors is Eagers Automotive.

It is Australia’s largest automotive retailer, operating an extensive network of dealerships selling new and used vehicles, alongside servicing, parts, and finance products.

Its scale and diversified operations provide opportunities to improve efficiency and support long-term earnings growth.

Eagers is also expanding internationally, with its recent investment in Canada’s automotive retail market providing another potential growth opportunity.

Bell Potter is bullish on Eagers Automotive and has a buy rating and $27.50 price target on its shares.

With respect to income, the broker estimates that it will pay dividends of 76 cents per share in FY 2026 and 82 cents in FY 2027. Based on its current share price of $18.08, this would mean dividend yields of 4.2% and 4.5%, respectively.

Rural Funds Group (ASX: RFF)

A final ASX dividend share worth considering is Rural Funds Group.

This agricultural property company owns a diversified portfolio of farmland across Australia, including cattle properties, vineyards, and orchards.

Rather than relying on agricultural production, Rural Funds generates the majority of its income by leasing its properties to farming businesses. These long-term leases provide relatively predictable rental income, which helps support regular dividends to investors.

Bell Potter currently has a buy rating and $2.55 price target on Rural Funds units.

As for income, the broker expects annual dividends of 11.7 cents per unit in FY 2027, FY 2028, and FY 2029. Based on its current share price of $1.92, this represents dividend yields of approximately 6.1% for each of those years.

The post 3 of the best ASX dividend shares for income investors appeared first on The Motley Fool Australia.

More reading

• 6 ASX shares to buy in today’s weak market: experts
• Buy, hold, sell: Rural Funds Group, Imdex, Fortescue shares
• Is this cheap ASX dividend share one of the best income buys?
• How much do I need to retire on $85,000 a year at 50?
• How much do I need to retire on $110,000 a year at 65?

Motley Fool contributor James Mickleboro 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 Australia has recommended Cedar Woods Properties and Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.