National Australia Bank Ltd (ASX: NAB) shares have fallen a long way from their highs.

The NAB share price is currently trading around $37.45, down from a 52-week high of $49.45 and hovering above its 52-week low of $35.48.

For investors focused on passive income, I think this means NAB is worth a close look.

The valuation looks reasonable

The first thing that stands out to me is the valuation.

According to CommSec, consensus estimates suggest NAB could generate earnings per share of $2.43 in FY26 and $2.53 in FY27.

Based on the current share price of around $37.45, that puts the bank on a price-to-earnings ratio of about 15.4 times FY26 earnings and 14.8 times FY27 earnings.

That does not make NAB unbelievably cheap. But I think it looks like good value for one of Australia’s major banks.

Banks are going through a tougher period. Higher interest rates have put pressure on borrowers, competition remains strong, and investors are watching the housing market closely. But NAB still has scale, a major deposit base, strong customer relationships, and a leading position in business banking.

For a passive income investor, I think those qualities are important. The dividend needs to be backed by a business that can keep producing profits across different economic conditions.

The yield is attractive

The second reason NAB stands out is of course passive income.

CommSec consensus estimates point to dividends per share of $1.70 in FY26 and $1.72 in FY27.

At the current share price, that implies forward dividend yields of around 4.5% and 4.6%, respectively.

That is a useful level of income, in my view. It is high enough to be meaningful, while still coming from one of the country’s largest banks.

To put the numbers another way, a $10,000 investment at around $37.45 per share would buy approximately 267 NAB shares.

Based on the forecast FY26 dividend of $1.70 per share, that holding could generate about $454 in annual dividend income. Based on the FY27 forecast dividend of $1.72 per share, the income would be around $459.

That is before considering tax and any franking credits.

Of course, dividends are never guaranteed. Bank dividends depend on earnings, capital requirements, regulation, credit quality, and the broader economy. But the forecast yield does show why NAB may appeal to investors looking for passive income.

Why I’d consider buying NAB shares

I think the income case is stronger because NAB is not only a yield story.

The bank has a large role in Australian business lending, which gives it a different flavour to a purely mortgage-focused bank. Small and medium-sized businesses need credit, transaction accounts, payment services, deposits, and relationship banking as they grow and manage daily operations.

That creates a valuable customer base if NAB can keep serving it well.

The bank also gives investors exposure to the Australian economy. That can create volatility, especially when confidence is weaker, but it also means NAB can benefit if conditions improve over time.

Foolish takeaway

I think NAB shares look attractive for passive income investors at current levels.

The share price has pulled back meaningfully, the valuation looks reasonable on consensus earnings forecasts, and the forward dividend yield is around the mid-4% range.

There are risks, particularly around the economy, housing, bad debts, and banking competition. But I think NAB’s business banking strength and scale make it a useful income share to consider.

For investors wanting ASX passive income with the possibility of capital gains over time, I think NAB shares are worth buying.

The post Should I buy NAB shares for passive income? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Here’s the dividend forecast out to 2027 for NAB shares
• Is the NAB share price good value after crashing 24%?
• Invested in ASX 200 bank shares for dividends? This fundie prefers other stocks
• Where I’d invest $2,000 in ASX 200 shares

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.

The Fortescue Ltd (ASX: FMG) share price has suffered a 16% decline since 14 May 2026, as the below chart shows. When an ASX mining share goes through a large dip, it’s good to consider whether it’s a buy and what could happen to the share price.

Miners can deliver great returns if investors buy them at the right time, given how much resource prices (and profits) can fluctuate.

Mining costs don’t change much year to year, so a shift in the revenue per tonne can make a big difference to the profitability because extra revenue for that tonne largely adds straight onto the operating profit (EBITDA) line, though an iron ore reduction can cut straight into net profit.

Iron ore price reduces

As you may be able to guess, the iron ore price has noticeably fallen in the last several weeks, dropping from more than US$110 per tonne in mid-May to almost US$100 per tonne, at the time of writing, according to Trading Economics.

Considering how that change may hurt Fortescue’s monthly profitability, the decline of the Fortescue share price has not been that bad.

But where to from here? The iron ore price is difficult to predict in the short term, though the market is wary of the influence that increased African iron ore production (including Simandou) could have on the global iron ore price.

Interestingly, to potentially offset that headwind, Fortescue is developing its own African iron ore project and diversifying into copper production.

Where could the Fortescue share price go from here?

It’s important not to anchor to where a share price has recently been and assume it’ll bounce back there quickly.

According to CMC Invest, there have been nine ratings on the business within the last three months.

A price target indicates where analysts expect the share price to be 12 months from the investment call.

The average price target of those nine ratings is $19.05, suggesting (at the time of writing) a slight decline over the next 12 months.

But that’s just the average price target. The most optimistic price target is $21.71, suggesting a rise of more than 12%, while the lowest is $15.79, implying a possible decline of around 18% at the time of writing.

The investment professionals are leaning slightly negative on the ASX mining share. Of those nine ratings, just two were buys, three were holds and four were sells.  

So, it doesn’t seem as though the Fortescue share price is a compelling idea today.

The post How much could the Fortescue share price rise in the next year? appeared first on The Motley Fool Australia.

More reading

• Are Fortescue shares a strong buy or a value trap?
• Why has the ASX 200 given up its early rebound today?
• Is the Fortescue share price a buy for its 8% dividend yield?
• Brokers rate these 4 ASX 200 shares as a sell!
• ASX 200 slips as oil shock puts investors on edge

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 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.

Woolworths Group Ltd (ASX: WOW) shares are back in favour.

On Thursday, the supermarket giant’s shares hit a 52-week high of $40.10.

That is a strong vote of confidence from the market, particularly after a difficult period for the retail sector more broadly.

Investors appear to be warming again to Woolworths’ defensive qualities, its scale, and the resilience of supermarket spending.

But after such a strong move, is there still value left for investors?

Why Woolworths remains attractive

Woolworths sits in one of the most dependable parts of the Australian economy.

Households may postpone major purchases when budgets are tight, but grocery spending is far harder to avoid.

That gives Woolworths a level of defensive strength that many ASX shares cannot match.

The company also has huge scale. Its supermarkets serve millions of customers each week, supported by a large store network, online operations, loyalty data, supplier relationships, and logistics infrastructure. That scale can be difficult to replicate.

But the valuation is no longer cheap

The main challenge is valuation. At current levels, Woolworths shares are trading on approximately 31 times expected FY 2026 earnings. This is based on forecast earnings per share of $1.30.

Looking ahead to FY 2027, analysts are expecting earnings per share of $1.48. That still places the stock on a forward price-to-earnings ratio of about 27 times.

Those are not bargain-level multiples. Investors are paying a premium for Woolworths’ defensive profile, reliable customer demand, and long-term market position.

That may be justified if earnings growth improves from here. But it also means there is less room for disappointment.

If margins come under pressure, competition intensifies, or sales growth slows, the share price could be vulnerable after reaching a 52-week high.

Woolworths also remains relevant for income investors. Analysts are expecting dividends of 99.5 cents per share in FY 2026 and $1.13 per share in FY 2027. This represents dividend yields of approximately 2.5% and 2.8%, respectively.

That’s not the largest dividend yield you’ll find on the Australian share market, but it is welcome income for investors.

Are Woolworths shares a buy?

Woolworths remains a high-quality ASX blue chip. Its role in everyday household spending, national scale, and strong customer position make it a business that many investors would be comfortable owning for years.

But at a 52-week high, the easy value case has faded.

I would argue that Woolworths looks more like a quality hold than an obvious bargain at today’s price, though long-term investors may still see appeal in its defensive earnings profile.

The post Are Woolworths shares still a buy at a 52-week high? appeared first on The Motley Fool Australia.

More reading

• This ASX 200 giant just hit a 52-week high. Is it getting too expensive?
• Woolworths shares soar to new multi-year high: Buy, sell or hold?
• One ASX dividend and one ASX growth stock to buy now
• How to build an ASX share portfolio that can survive a market selloff
• Woolworths shares vs Coles: Buy, hold, or sell these ASX giants?

Motley Fool contributor James Mickleboro has positions in Woolworths 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 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.