Coles Group Ltd (ASX: COL) stock is one of the leading large ASX businesses for passive income, in my view.

Think about it, food is one of the most fundamental things that we need to live. Coles is one of the biggest food retailers in the country. Only Woolworths Group Ltd (ASX: WOW) has a larger market share in Australia.

Coles has a powerful business model which is hard to challenge with its advanced distribution centres, customer fulfilment centres, e-commerce offering and the convenience of a national supermarket network.

The company has delivered regular revenue, profit and dividend growth since it split from Wesfarmers Ltd (ASX: WES) several years ago, as it benefited from population growth, inflation and business expansion.

While its profit is not shooting higher like a tech stock, it has proven it can deliver regular financial progress, including rising dividends.

Coles is a contender for regular passive income of $250 per month or more.

How Coles stock can deliver $250 per month of passive income

The business doesn’t pay dividends every month, it pays every six months. So I think it’s better to treat the goal as an annual target. $250 per month translates into $3,000 per year of passive income.

In FY26, Coles’ board of directors hiked the annual dividend per share by 13% to 78 cents per share following a 13.7% rise in the underlying net profit to $1.26 billion and a 2.8% rise in revenue to $45.6 billion.

But the 2026 financial year dividend has already happened, so I think it’s more useful to look at what the next annual dividend could be.

The projection on Commsec suggests the company could hike its annual dividend by 7% year-over-year to 83.5 cents per share in FY27.

At the time of writing, that works out to be a forward dividend yield of 3.5% excluding franking credits and 5% including franking credits. I think that’s a solid starting point for investors looking to buy Coles shares today.                  

To generate an average of $250 per month, or $3,000 per year of dividend cash, it would require 3,593 Coles shares excluding franking credits.

If we include the franking credits as part of the income goal, it would require 2,516 Coles shares for the dividend cash.

If I were focused on resilient dividend income, I’d be happy to make that investment, given that its dividend has increased every year over the past decade.

Is this a good time to invest?

According to CMC Invest, there have been 11 broker ratings within the last three months, with six of those analyst ratings being a buy and five being a hold.

The average price target of those 11 ratings is $24.67, implying the Coles stock price could rise by just 3% over the next 12 months, from where it is at the time of writing. It’s a solid business for passive income, but expert analysts suggest it’s better to look at other ASX shares with stronger return potential.

The post I'd buy 2,516 shares of Coles stock to aim for $250 a month of passive income appeared first on The Motley Fool Australia.

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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.

S&P/ASX 200 Index (ASX: XJO) shares are down 2.4% over 12 months.

Let’s check out some new ratings from Bell Potter, Ord Minnett, and Morgans.

Resmed CDI (ASX: RMD)

Resmed shares are down 17% over 12 months.

Ord Minnett has a buy recommendation on this ASX 200 healthcare share.

The broker has a 12-month share price target of $36.20.

This implies a potential 5% upside from here.

Ord Minnett said:

We expect the capital management program to support the shares and earnings. RMD has flagged more than US$1.85 billion will be returned to shareholders through share buybacks and dividends during FY27.

Its sleep business we expect will continue to grow ahead of market, and margins will return to expansion as productivity efficiencies and pricing take effect.

Further, RMD’s forward price-earnings multiple (circa 18x consensus) is not demanding against our EPS growth estimate of 8% in FY27 (in US dollars).

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price has halved over 12 months.

Bell Potter retained its hold call on Champion Iron shares after the company’s 2Q FY27 results.

The broker reduced its share price target on the ASX 200 iron ore share from $3.40 to $2.50.

This implies a potential 7% upside from here.

Bell Potter said:

CIA has released preliminary, unaudited and incomplete Q2 FY27 results which included: iron ore concentrate production of 3.9Mt (BP est. 3.8Mt, prior quarter 3.9Mt); sales of 4.5Mt (BP est. 3.9Mt, prior quarter 3.3Mt); net average realised prices of C$89.9/t (BP est. C$121/t, prior quarter C$107/t); and revenue of C$403.9m (BP est. C$422m, prior quarter C$357m).

CIA expect to ramp-up high-grade concentrate (DRPF grade) production.

While we expect iron content price premiums for this product, full value-in-use premiums are unlikely to be realised until longer-term offtake is secured.

Free cash flow should improve from FY27 as capex rolls off, supporting debt servicing and ongoing dividends.

The Federal Government forecasts a 21% drop in the iron ore price to US$72 per tonne by FY31. Find out why.

Bank of Queensland Ltd (ASX: BOQ)

The Bank of Queensland share price is down 4% over 12 months.

Morgans downgraded Bank of Queensland shares from a hold to trim rating.

The broker has a 12-month share price target of $6.22 on the ASX 200 bank share.

This implies a potential 9% downside from here.

Morgans said:

2H26 exceeded expectations and FY27 offers potentially double-digit earnings growth.

Beyond FY27, we see growth slowing to low single digits, with insufficient ROTE improvement to generate shareholder value.

Target price reduced c.3% to $6.22/sh on medium-term forecast changes.

At current prices, we estimate total potential TSR of -c.4% (including c.5.8% cash yield). We downgrade from HOLD to TRIM.

The post Buy, hold, sell: Bank of Queensland, Champion Iron, Resmed shares appeared first on The Motley Fool Australia.

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• ASX 200 utilities and healthcare shares win the week again
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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 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.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) ended the day in the red. The benchmark index fell 0.3% to 8,816.9 points

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 to rebound

The Australian share market is expected to rise on Wednesday following a mixed session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 32 points or 0.35% higher. In the United States, the Dow Jones rose 1% and the S&P 500 climbed 0.3%, but the Nasdaq was down a fraction.

Oil prices fall

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor session after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 2.5% to US$101.09 a barrel and the Brent crude oil price is down 0.5% to US$108.97 a barrel. Traders were selling oil amid optimism over diplomatic progress in the Middle East.

Sigma update

Sigma Healthcare Ltd (ASX: SIG) shares will be on watch on Wednesday when the Chemist Warehouse owner releases a trading update at its annual general meeting. Bell Potter is expecting the company to reveal that it started the financial year strongly. It said: “We expect 1Q27 network LFL network sales growth in the range of 12-13%.”

Gold price falls

ASX 200 gold shares including Westgold Resources Ltd (ASX: WGX) and Northern Star Resources Ltd (ASX: NST) could have a subdued session after the gold price fell overnight. According to CNBC, the gold futures price is down 0.45% to US$4,141.3 an ounce. Traders were selling gold in response to rate hike fears.

Buy Pro Medicus shares

Pro Medicus Ltd (ASX: PME) shares could be a top pick for Aussie investors according to Morgans. It has upgraded the health imaging technology company’s shares to a buy rating with a $230.00 price target. It said: “PME has announced a further seven-year, A$24m full stack cloud contract with Billings Clinic Logan Health, its third new community health system win in FY27 to date (A$72m TCV, A$10.3m new ARR). The FY27 wins are modest individually but consistent in size, term and scope, pointing to a repeatable mid-market playbook that broadens the pipeline beyond large Integrated Delivery Networks. Near-term focus shifts to RSNA in late November as the likely window for a larger deal, and to execution on a busy 1Q’CY27 go-live schedule underpinning FY28. We upgrade to a BUY (from Accumulate), with no change to our A$230 target price.”

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

More reading

• Which ASX retailer is a better buy, Coles or Woolworths?
• Buy, hold, sell: Sigma Healthcare, Collins Foods, IKO ETF shares
• Here are the top 10 ASX 200 shares today
• Guess which ASX 200 share was just hit with a broker downgrade
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.