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  • Rio Tinto provides Q3 2026 production update

    Two miners laughing and having fun while using smart phone during their coffee break.

    The Rio Tinto Ltd (ASX: RIO) share price is in focus today after the miner delivered strong third-quarter 2026 production results, highlighted by a 29% year-to-date lift in Oyu Tolgoi copper output and a 3% rise in global iron ore sales.

    What did Rio Tinto report?

    • Oyu Tolgoi copper production up 29% year-to-date; Q3 output reached 114,000 tonnes (+27% YoY).
    • Global iron ore sales of 90.8 million tonnes for the quarter, up 3% from Q3 2025.
    • Pilbara iron ore sales increased 2% YoY to 85.7 million tonnes in Q3.
    • Lithium carbonate equivalent production rose 33% year-to-date to 40,300 tonnes.
    • Alumina production grew 10% YoY, with stable aluminium output and progress on Pacific smelter repowering.
    • Year-to-date capital release exceeded US$2 billion under its US$5–10 billion program.

    What else do investors need to know?

    Rio Tinto maintained its full-year production and unit cost guidance across key commodities. While the company faced higher diesel costs and foreign exchange impacts, these were managed within existing forecasts. Major projects like the Simandou iron ore ramp-up and aluminium repowering initiatives remain on track.

    The group highlighted robust operational momentum heading into year-end, supported by ongoing initiatives to boost safety, productivity, and reliability. In the third quarter, it signed further power agreements and progressed capital release efforts, including divestments in desalination and surplus land.

    Geopolitical tensions in the Middle East drove volatility in energy and freight markets, but Rio Tinto’s operations continued with minimal disruption. The company continues to monitor supply chain risks and maintain contingencies.

    What did Rio Tinto management say?

    Rio Tinto Chief Executive Simon Trott said:

    We delivered strong operational performance in the third quarter. Oyu Tolgoi copper production increased 29% year-to-date, with the operation running at a ~450 kt annualised rate in the quarter, and global iron ore sales are up 3% year-to-date. The Simandou iron ore mine hit an annualised production run-rate of ~10 Mtpa (100% basis) in the quarter as the project continues to ramp up.

    We are finishing the year with momentum, with significant opportunities to accelerate improvements in safety, productivity and reliability through implementation of our operating system. We remain on track for a $1.8 billion annualised productivity benefit run-rate by the end of 2026. Our major projects remain on schedule and budget, underwriting our growth profile to 2030.

    We made further significant steps in decarbonising our business in the third quarter, with our Pacific Aluminium smelter repowering arrangements now well progressed.

    Today, we announce that we have achieved more than $2 billion of capital release year-to-date, as we actively manage our portfolio with discipline to maximise long-term value, as part of the $5 to 10 billion capital release program.

    What’s next for Rio Tinto?

    Looking ahead, Rio Tinto expects to maintain its operational momentum with major projects such as Simandou iron ore, Brockman Syncline 1, and new lithium developments progressing on schedule. The business remains focused on capturing a US$1.8 billion productivity benefit by the end of 2026 and advancing its decarbonisation goals, including further aluminium smelter repowering.

    Exploration and evaluation spending has risen, especially in copper. The company will continue its disciplined approach to capital allocation, with further asset sales expected to deliver on capital release targets.

    Rio Tinto share price snapshot

    Over the past 12 months, Rio Tinto shares have risen 26%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has fallen 2% over the same period.

    View Original Announcement

    The post Rio Tinto provides Q3 2026 production update appeared first on The Motley Fool Australia.

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    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.

  • 2 ASX lithium shares to buy with 38% to 120% upside

    A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.

    The lithium industry has been sold off recently in response to falling lithium prices.

    But it isn’t all doom and gloom.

    Even after factoring in weaker than expected prices, Bell Potter believes the two ASX lithium shares in this article could be seriously undervalued and positioned to deliver big returns.

    Here’s what the broker is recommending:

    Liontown Ltd (ASX: LTR)

    Speaking about its lithium price expectations, Bell Potter said:

    We have marked-to-market our lithium price estimates for the recent quarter and downgraded our near-term outlook, in line with recent price weakness. Spodumene Concentrate 6% Li2O CFR China (Fastmarkets) averaged US$2,107/t in the September 2026 quarter (BP est. US$2,500/t); spot prices are US$1,562/t. We now factor in SC6 prices of US$1,777/t in FY27 (-21% on prior estimate of US$2,250/t) and US$1,750/t in FY28 (-7% on prior estimate of US$1,875/t).

    While this has led to significant reductions in the broker’s earnings estimates, Liontown remains its preferred ASX lithium share to buy now. 

    As a result, it has reaffirmed its buy rating with a trimmed price target of $1.60 (from $1.70). Based on its current share price of 71.5 cents, this implies potential upside of approximately 120% over the next 12 months.

    Commenting on its buy recommendation, the broker said:

    LTR is our preferred lithium exposure. We expect a value re-rate as the Kathleen Valley ramp-up and expansion are progressively derisked over the forecast period. On recent share price weakness, LTR is trading on an EV last seen in mid-2025 when SC6 prices were around US$650/t and the company’s balance sheet was materially weaker. Spot prices are now over 2.5x this level and LTR is in a net cash position.

    Mineral Resources Ltd (ASX: MIN)

    Another ASX lithium share that could offer major upside is Mineral Resources.

    Once again, Bell Potter has made meaningful reductions in its earnings estimates to reflect weaker lithium prices, which has had a knock-on effect to its valuation.

    Nevertheless, the broker feels that Mineral Resources shares are very good value at current levels.

    According to the note, it has retained its buy rating with a trimmed price target of $63.00 (from $75.00). Based on its current share price of $45.81, this implies potential upside of approximately 38% for investors over the next 12 months. It also expects a modest 1% dividend yield in FY 2027.

    Commenting on Mineral Resources, Bell Potter said:

    Completion of the US$765m MIN-POSCO lithium transaction is expected in the current half, and will accelerate balance sheet deleveraging paired with strong cash flows from iron ore and lithium operations. MIN’s mining services platform delivers a stable earnings stream that is expected to expand with internal and third-party volume growth. The company is strongly positioned to execute its next phase of growth, having reinstated dividends.

    The post 2 ASX lithium shares to buy with 38% to 120% upside 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.

  • 2 top ASX blue-chip shares to buy according to experts

    Two colleagues looking at a graph and comparing share prices.

    Fund managers are always on the hunt for ASX blue-chip shares or smaller stocks that could produce good returns. Sometimes, those experts pick out a very compelling idea.

    We’re going to look at two picks from the portfolio of WAM Leaders Ltd (ASX: WLE) that look like strong ideas today.

    WAM Leaders is a listed investment company (LIC) that actively invests in Australian stocks at the larger end of the ASX’s market capitalisation list.

    Let’s look at the two ASX blue-chip shares that WAM Leaders recently highlighted.

    Ramsay Health Care Ltd (ASX: RHC)

    The fund manager highlighted that last month, the Ramsay Health Care share price rose by 8.6% as investors responded positively to improving momentum in its Australian hospitals business and the progress on the proposed separation of Ramsay Sante, its European operations.

    WAM Leaders said that the proposed separation of Ramsay Sante is expected to simplify the group and increase management’s focus on the core Australian business.

    The investment team said Ramsay’s operational improvement initiatives continue to gain traction, supported by growth in activity, improved operating theatre utilisation, and ongoing cost efficiencies.

    In September 2026, Ramsay Health Care also completed the acquisition of National Capital Private Hospital and submitted proposals to the Federal Government advocating for broader reform of the private hospital sector.

    The investment team maintains a constructive outlook towards Ramsay Health Care as improving operating performance supports further margin recovery and earnings growth.  

    Ansell Ltd (ASX: ANN)

    Ansell is the other ASX blue-chip share that WAM Leaders highlighted from the LIC portfolio.

    The investment team said that Ansell continued to “re-rate” – the price-earnings (P/E) ratio rose – last month. In September, the Ansell share price rose 11%.

    The company has risen significantly since its August FY26 results, which revealed earnings and FY27 guidance ahead of market expectations.

    WAM said healthcare was the key driver of this result, underpinned by strong growth in the Cleanroom business, although performance benefited in part from customer stocking and the timing of price increases.

    The investment team believe Ansell has managed cost headwinds effectively, including the impact of US tariffs and the Middle East conflict, through disciplined pricing and flexible commercial arrangements.

    In terms of the outlook, management remains focused on its core markets, customers, and brands, particularly in the US. WAM thinks this supports the potential for stronger organic growth and further margin improvement.

    The ASX blue-chip share’s balance sheet also remains in a strong position, according to WAM, providing flexibility for capital management and further investment.

    WAM concluded:               

    Ansell remains a core holding in the investment portfolio, with its improving business mix, robust cost management and balance sheet capacity expected to support the company’s earnings outlook.

    The post 2 top ASX blue-chip shares to buy according to experts 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ansell. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • 2 ASX shares with dividend yields above 9%

    Man holding out $50 and $100 notes in his hands, symbolising ex dividend.

    The ASX dividend share space is full of a lot of interesting potential ideas for passive income, including ones with huge dividend yields.

    But, the higher the dividend yield goes, the more careful I am about the choices.

    Some dividend yields are just a mirage. A dividend cut may be coming because profit generation has been affected.

    So, I’m going to talk about two ASX dividend shares that have incredibly high yields but have also displayed reliability.

    Hearts and Minds Investments Ltd (ASX: HM1)

    Listed investment companies (LICs) can be a great option for dividends because they can turn investment returns from a portfolio into dividend payments to shareholders.

    Hearts and Minds is a very different type of LIC to most others. All of the investment professionals involved don’t charge any management fees.

    Each year, Hearts and Minds donates to Australian medical organisations to help fund research, which is a great initiative.

    In terms of the investments, there are two ways that picks are chosen for the portfolio. First, a majority of the portfolio is chosen by a permanent group of fund managers.

    Second, at an annual investment conference, the stock picks are chosen by a number of investment professionals for a minority of the portfolio.

    Overall, it’s a portfolio of best ideas from all of these experts. The portfolio is largely an international stock portfolio, which gives Australians a pleasing level of diversification.

    In terms of the dividend, the last two payments came to 19.5 cents per share. That’s a grossed-up dividend yield of 9.4%, including franking credits, at the time of writing.

    It has steadily increased its payout each year since 2023, which is pleasing amid rising interest rates.

    Shaver Shop Group Ltd (ASX: SSG)

    Shaver Shop is an intriguing ASX dividend share because of its position as an Australian and New Zealand specialty retailer of male and female personal grooming products. It wants to be the market leader in all things related to hair removal.

    There are currently 127 Shaver Shop stores across Australia and New Zealand, selling a wide range of quality brands. It has a number of exclusive products with suppliers.

    Its longer-term growth over the last several years has enabled the business to pay a steady and regularly growing dividend. Since it started paying a dividend in 2017, it has grown its payout most years (with no cuts), though that’s not guaranteed to continue forever.

    In FY26, it maintained its annual dividend per share of 10.3 cents following a 3% rise of sales to $225.1 million and operating profit (EBIT) growth of 1.3% to $22.8 million.

    At the time of writing, the FY26 payout translates into a grossed-up dividend yield of 11.4% (including franking credits), which is a huge yield, but the company trades on a relatively low price-earnings (P/E) ratio.

    If it can expand its store network, sell more exclusive brand products, grow its private brand, and sell more online, the ASX dividend share has a very promising future.

    The post 2 ASX shares with dividend yields above 9% appeared first on The Motley Fool Australia.

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    Motley Fool contributor Tristan Harrison has positions in Hearts And Minds Investments. 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 Shaver Shop Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • How much must I invest in Fortescue shares to earn a $1,000 passive income in 2027?

    Three business people stand on platforms in the desert and look out through telescopes.

    Owning Fortescue Ltd (ASX: FMG) shares typically means receiving a solid level of dividend income each year, so we’re going to look at what it could mean for investors in 2027.

    Fortescue is one of the world’s largest iron ore miners and its dividend yield can be high because of the company’s low price/earnings ratio (P/E) ratio and a relatively high dividend payout ratio.

    The ASX mining share recently gave an update that sent the Fortescue share price lower, so let’s remind ourselves of what was said.

    Difficult start to FY27

    In an ASX announcement, Fortescue said that in the three months to September 2026, total iron ore shipments were 46.8 million tonnes (mt), which was 6% lower year-over-year (despite including 2.5mt from Iron Bridge).

    The realised/sold price for its hematite (iron ore) was US$80 per dry metric tonne (dmt), lower than US$90.70 it experienced during FY26.

    Fortescue noted that iron ore shipments were affected by maintenance during the quarter. Iron ore sales of 42.9mt were below shipments because of the impact of ongoing negotiations with China Mineral Resources Group (CMRG), a key Chinese buyer of iron ore.

    So, there’s potential for FY27 to be stronger or weaker, depending on what happens with the iron ore price and negotiations with CMRG.

    FY27 payout prediction

    Analysts currently project that Fortescue’s earnings per share (EPS) could fall to $1.34 in the 2027 financial year, according to Commsec, which could then see a drop in the dividend per share.

    The projection on Commsec currently suggests that owners of Fortescue shares could receive an annual dividend per share of 85.8 cents.

    At the time of writing, the forecast payout translates into a dividend yield of 5.6% excluding franking credits and 8% including franking credits.

    For most businesses, that’d be a solid yield. However, it does represent a large decline of the dividend per share. It’s only due to the large decline of the Fortescue share price that the yield is still attractive.

    What it would take for $1,000 of passive income in 2027

    If the analyst predictions do become reality, then we can work out how many Fortescue shares they’d need to own to make $1,000 of passive dividend income from the current financial year.

    Excluding franking credits, an investor would need to own 1,166 Fortescue shares to generate $1,000 of passive income.

    Including franking credits, an Australian would only need to own 816 Fortescue shares for the desired dividends.

    But, with the current uncertainty hanging over Fortescue, I could understand investors wanting to look at other ASX shares for returns.

    The post How much must I invest in Fortescue shares to earn a $1,000 passive income in 2027? 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 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.

  • Down 30%: Why a top broker just upgraded PLS shares

    A man holding a cup of coffee puts his thumb up and smiles with a laptop open.

    It has been a tough period for PLS Group Ltd (ASX: PLS) shares.

    A heavy decline on Tuesday in response to falling Chinese lithium prices means the mining giant’s shares are down almost 30% year to date.

    While that is disappointing and weakening lithium prices are a concern, Bell Potter believes the selling has gone too far.

    What is the broker saying?

    Bell Potter notes that lithium prices have been weaker than it was expecting. As a result, it has trimmed its estimates for the medium term to reflect this. It said:

    We have marked-to-market our lithium price estimates for the recent quarter and downgraded our near-term outlook, in line with recent price weakness. Spodumene Concentrate 6% Li2O CFR China (Fastmarkets) averaged US$2,107/t in the September 2026 quarter (BP est. US$2,500/t); spot prices are US$1,562/t. We now factor in SC6 prices of US$1,777/t in FY27 (-21% on prior estimate of US$2,250/t) and US$1,750/t in FY28 (-7% on prior estimate of US$1,875/t). 

    Our estimates of US$1,625/t in FY29 and US$1,500/t long term are unchanged. Lower lithium prices have corresponded with weaker market sentiment in China and commodity agencies pointing to a modest market surplus in 2027. China’s SC imports reached a record in August 2026 (spglobal.com) with a surge in volume from Africa; lithium carbonate imports have also rebounded. However, articles suggest that China’s downstream inventories remain lean and that underlying demand fundamentals are strong.

    The good news is that despite this weakness, the broker believes PLS will continue to deliver strong profit growth. It is forecasting a net profit of $698 million in FY 2027 (up from $526 million), then an increase to $784 million in FY 2028.

    PLS shares upgraded

    In response to the above, Bell Potter has upgraded PLS shares to a buy rating with a reduced price target of $4.40 (from $5.20).

    Based on its current share price of $3.08, this implies potential upside of approximately 43% for investors over the next 12 months.

    No dividends are forecast over the near term by the broker.

    Commenting on the upgrade, Bell Potter said:

    We upgrade to a Buy recommendation on recent share price weakness. At current lithium market prices, PLS will generate substantial earnings and cash flow with the restart of the 200ktpa Ngungaju processing plant. P2000 and Colina development studies are being progressed, providing organic growth optionality in markets with strong underlying EV and BESS-led long term demand fundamentals.

    The post Down 30%: Why a top broker just upgraded PLS shares 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.

  • [Gated article] I searched for the next great ASX compounder. These shares deserve attention

    Man smiling ahead while working on his MacBook.

    The ASX has produced some incredible long-term wealth creators.

    Think about shares such as REA Group Ltd (ASX: REA), Pro Medicus Ltd (ASX: PME), and TechnologyOne Ltd (ASX: TNE). 

    They have demonstrated how rewarding it can be when a company keeps growing earnings over many years, delivering average total returns of over 15% per annum over the past 15 years.

    For example, a $10,000 investment growing at an average of 15% a year would have become approximately $80,000 over 15 years, without another dollar being invested.

    Of course, returns like that are far from guaranteed. But it demonstrates why finding a business capable of growing for decades can be so rewarding.

    The biggest challenge is recognising one before most of its growth has happened.

    The good news is that I’ve identified three ASX shares that I believe deserve attention.

    Life360 Inc (ASX: 360)

    The first is Life360, which has built a family safety platform offering location sharing, driving reports, crash detection, and other services.

    What I like about the ASX tech share is the size of the audience it has already built and how much more valuable that audience could become.

    At the end of June, the company had 102.4 million monthly active users globally. Around 54 million were in the United States, with another 48.4 million elsewhere.

    I see little reason why Life360’s international business couldn’t eventually become significantly larger than its US operations, particularly as awareness of the platform increases globally.

    And because most people use the service for free, there is plenty of room to increase revenue through paid memberships, advertising, and additional services as the audience grows.

    There is still a lot of work to do, particularly when it comes to generating more revenue from international users. But if Life360 can keep expanding its audience while converting more users into paying customers, I think it could be a significantly larger and more profitable business in another decade.

    However, Life360 isn’t the only business that caught my attention.

    The next company has recently secured billions of dollars in contracts, potentially transforming its growth outlook. The third has an entirely different opportunity that could allow it to keep growing for many years.

    Megaport Ltd (ASX: MP1)

    Another ASX share that I think has the potential to become a great compounder is Megaport.

    It originally made its name helping businesses connect quickly and easily to cloud providers and data centres.

    That is still an attractive market to operate in. As companies use more cloud services and move increasing amounts of data around the world, demand for flexible connectivity should continue growing.

    But Megaport’s acquisition of Latitude.sh has been a game-changer and opened up a much larger opportunity.

    The company can now provide computing capacity alongside its existing networking services, giving it exposure to the enormous investment taking place in artificial intelligence (AI) infrastructure.

    And it hasn’t taken long for this strategy to start producing results. Since April, Megaport has announced approximately $2.3 billion in strategic AI infrastructure contracts.

    Those agreements have already prompted management to upgrade its FY 2027 revenue guidance to between $720 million and $810 million.

    That’s more than double the $312.2 million it recorded in FY 2026.

    It is worth remembering that building and operating AI infrastructure requires substantial investment, with Megaport expecting capital expenditure of approximately $1.8 billion in FY 2027.

    It also needs to deliver the projects successfully and generate attractive returns on that investment.

    But if Megaport can demonstrate that its expanding infrastructure business is capable of generating strong and sustainable cash flows, the opportunity could be enormous.

    Netwealth Group Ltd (ASX: NWL)

    A final ASX share that I think deserves attention is Netwealth.

    It operates in a market that most Australians are already familiar with. That is superannuation and investing.

    The company provides the technology and administration services used by financial advisers to manage their clients’ wealth.

    And I think it has an excellent opportunity to keep taking market share from older investment platforms.

    One reason is that advisers increasingly want sophisticated systems that make it easier to manage portfolios, produce reports, and offer clients a wide range of investments.

    Netwealth has invested heavily in its technology to meet those needs.

    Once advisers move their clients onto the platform, those relationships can also be difficult to replace. Switching providers can involve significant work, particularly when large numbers of client accounts are involved.

    This gives Netwealth an opportunity to keep growing alongside its existing customers while attracting new advisers.

    The company’s recent performance shows how well the strategy has been working. At the end of June, Netwealth had $135.7 billion in funds under administration, representing growth of approximately 20% over the previous year.

    Management is now targeting net inflows of between $18 billion and $20 billion in FY 2027 and has an ambition to double funds under administration over four years. 

    If it can achieve anything close to that, I think earnings could grow very strongly.

    There are risks, of course. Weaker financial markets could reduce the value of assets on the platform, while competition remains strong.

    Netwealth is also defending a class action relating to First Guardian investment options. I wouldn’t dismiss that issue lightly, particularly when trust is so important in financial services.

    Nevertheless, I believe Netwealth has a significant opportunity to keep growing as Australians build their retirement savings and advisers seek better technology.

    The post [Gated article] I searched for the next great ASX compounder. These shares deserve attention appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has positions in Life360, Megaport, Pro Medicus, REA Group, and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Megaport, and Netwealth Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Life360 and Netwealth Group. 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.

  • 2 ASX shares highly recommended to buy: Experts

    Buy now written on a red key with a shopping trolley on an Apple keyboard.

    I think it’s very interesting when numerous analysts are positive about an ASX share with buy ratings.

    It’s not just one investment professional that’s excited about a business, there’s multiple analysts that are calling the business a buy.

    It could indicate that there’s a clear opportunity on offer.

    CAR Group Ltd (ASX: CAR)

    CAR Group describes itself as a global digital marketplace business, with a goal of being the global leader in online vehicle marketplaces. It operates in a number of vehicle categories – automotive, commercial, industrial and leisure.

    It operates in several countries, including Australia (Carsales), South Korea (Encar), the US (Trader Interactive), Chile (Chileautos) and Brazil (it’s the majority shareholder of Webmotors).

    According to Commsec, there are currently 12 buy ratings on the business, making it one of the most positively rated ASX shares right now.

    The business had a solid FY26, reporting revenue growth of 6% to $1.25 billion, net profit growth of 14% to $314 million and full-year dividend growth of 8% to 86 cents per share.

    CAR Group expects to deliver solid growth in FY27. In the 2027 financial year, in constant currency terms, revenue is expected to grow between 11% and 14%, while adjusted operating profit (EBITDA) is expected to grow between 10% and 13%, and adjusted net profit is guided to grow between 9% and 12%.

    In Australia, the business is expecting high single-digit revenue growth. Meanwhile, in North America and Latin America, revenue is expected to grow by double digits. Australia and Latin America are expected to see operating leverage, while other markets are expected to see a lower EBITDA margin as they invest for growth.

    Integral Diagnostics Ltd (ASX: IDX)

    Another highly rated ASX share is Integral Diagnostics. It’s a leading provider of medical imaging services across Australia and New Zealand.

    According to Commsec, there are currently 12 buy ratings on the business, making it one of the most highly rated ASX shares.

    The company delivered strong revenue growth and improving profit margins. In FY26, revenue grew 25.6% to $788.7 million, operating profit (EBITDA) grew 30.3% to $164.8 million (with a margin of 20.9%), and operating net profit increased 50.1% to $47.4 million.

    The ASX share said that it’s focused on network expansion, sustainable revenue growth, EBITDA margin improvement to more than 21%, increased productivity and capacity, and lowering debt levels.

    According to the projection on Commsec, it’s trading at 16x FY27’s estimated earnings, with further growth expected in both FY28 and FY29.

    The post 2 ASX shares highly recommended to buy: Experts 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended CAR Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • 5 things to watch on the ASX 200 on Wednesday

    Broker looking at the share price.

    On Tuesday, the S&P/ASX 200 Index (ASX: XJO) ended the day with the smallest of gains. The benchmark index rose a fraction to 8,783.9 points

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

    ASX 200 to fall

    The Australian share market is expected to fall on Wednesday following a poor session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.35% lower. In the United States, the Dow Jones fell 0.35%, the S&P 500 dropped slightly, and the Nasdaq was down 0.15%.

    Oil prices mixed

    ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch on Wednesday after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 1% to US$94.69 a barrel and the Brent crude oil price is down 0.45% to US$106.16 a barrel. Traders are assessing the impacts of the Russian diesel supply deal and the Saudi-Houthi conflict.

    Buy PLS shares

    The team at Bell Potter has upgraded PLS Group Ltd (ASX: PLS) shares this morning following a period of weakness. Although the broker has reduced its lithium price forecasts, it remains positive and has upgraded PLS shares to a buy rating with a trimmed price target of $4.40 (from $5.20). It said: “We upgrade to a Buy recommendation on recent share price weakness. At current lithium market prices, PLS will generate substantial earnings and cash flow with the restart of the 200ktpa Ngungaju processing plant.”

    Gold price softens

    ASX 200 gold shares Westgold Resources Ltd (ASX: WGX) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Wednesday after the gold price eased overnight. According to CNBC, the gold futures price is down 0.1% to US$4,187.2 an ounce. Traders were selling gold ahead of the release of US inflation data.

    Rio Tinto update

    Rio Tinto Ltd (ASX: RIO) shares will be on watch on Wednesday when the mining giant releases its quarterly update. Investors will no doubt be looking to see if Rio Tinto remains on course to achieve its guidance in 2026. It is targeting copper production of 800kt to 870kt and iron ore sales of 343Mt to 366Mt. Costs are expected to be US$23.5 to US$25 per tonne for iron ore and 30 US cents to 50 US cents per pound for copper. Elsewhere, Commonwealth Bank of Australia (ASX: CBA) is holding its annual general meeting today and will be worth watching.

    The post 5 things to watch on the ASX 200 on Wednesday 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.

  • Here’s the dividend forecast out to 2029 for AGL shares

    Hand putting a leaf in a piggy bank with a green outdoor background and environment related icons.

    Owning AGL Energy Ltd (ASX: AGL) shares over the years has delivered plenty of passive income in the form of dividends. Investors may be wondering what the future holds for potential payments.

    As one of Australia’s largest energy businesses, AGL has an important role to play in terms of both the energy it generates and its role as one of the largest energy retailers.

    In terms of its energy retailing, in FY26, it reported that it had total AGL customer services of 4.6 million (up 92,000 year-over-year).

    Its energy generation portfolio is currently very diversified across coal-fired power, gas, hydro, wind, solar and batteries.

    The company is currently working on transitioning its energy portfolio. It has ambitions to add 12GW of new renewable and firming capacity by the end of 2035, and is looking at options to accelerate that timeline where possible.

    Given the required capital expenditure for its new energy investments, let’s look at what the upcoming dividends could be.

    FY27

    In the 2026 financial year, the company generated underlying net profit after tax (NPAT) of $631 million (down 2%) and declared an annual dividend per share of 50 cents.

    AGL said that it’s targeting a dividend payout ratio range of between 55% to 60% of underlying net profit for the FY27 dividend and it’s expected to be fully franked.

    According to the projection on Commsec, AGL is forecast to see a slightly lower annual dividend of 49 cents per share, which would represent a decline of 2% compared to FY26. That would be a dividend yield of 5.8% excluding franking credits and 8.3%, including franking credits.

    FY28

    The company’s financials could see a decline of earnings in the 2028 financial year, which could then see a flow-on effect to the dividend. Earnings per share (EPS) could decline by 20% in FY28, which is a sizeable drop.

    According to the projection on Commsec, AGL’s dividend will fall by another 26% to 36.4 cents per share. At the time of writing, that translates into a dividend yield of 4.3% excluding franking credits and 6.2% including franking credits.

    FY29

    In the final year of this series of projections, AGL’s earnings dividend could start climbing again, according to the forecast.

    AGL’s EPS could climb by 22.8% in the 2029 financial year, which could help the dividend rise by 15% to 41.9 cents per share.

    That estimate says that the AGL dividend yield could be 5% excluding franking credits and 7.1% including franking credits.

    If these projections happen, it shows that the AGL dividend yield could remain solid, even if the payout does reduce in FY28.

    The post Here's the dividend forecast out to 2029 for AGL shares 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 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.