Author: openjargon

There could be big returns waiting for investors in the healthcare sector according to analysts at Bell Potter.

In fact, the ASX healthcare share in this article is being tipped to almost double in value from current levels.

Which ASX healthcare share?

The share in question is Neuren Pharmaceuticals Ltd (ASX: NEU).

It is a biotechnology company with two novel drug assets. Bell Potter notes that the most advanced is Daybue (trofinetide), which was out-licensed to Acadia (NASDAQ: ACAD).

The ASX healthcare share’s second asset, NNZ-2591, is under development for multiple rare diseases. The most advanced is Phelan McDermid syndrome.

Neuren Pharmaceuticals is currently conducting a Phase three trial in Phelan McDermid syndrome and has conducted Phase 2 trials in three other rare neurological conditions.

Bell Potter believes the market is ascribing no value to NNZ-2591, which it feels has created a compelling buying opportunity for investors.

At the same time, it highlights that European regulators have reversed a negative recommendation on Daybue in the region, putting it on a likely path to approval.

Commenting on this, Bell Potter said:

The addition of Daybue European sales adds ~$2/share to our NPV valuation based on current forecasts. We estimate the future value of Daybue licensing income to be ~$9.50 (comprising ~$7.50 from the US and ~$2 from Europe). The existing ~A$300m cash balance equates to ~$2.50/share. Hence a total value of ~$12/share for cash + Daybue licensing income, excluding any contribution from NNZ-2591.

At the latest closing price, we therefore see effectively zero implied value for NEU’s second asset, which in itself would be a multi-billion-dollar value asset should it succeed in the Phase 3 trial. The Phase 3 remains in the early stages of recruitment, with results not expected until the end of CY27 at the very earliest (pending recruitment pace).

Big potential returns

According to the note, Bell Potter has retained its buy rating on the ASX healthcare share with an improved price target of $23.50 (from $22.00).

Based on its current share price of $12.20, this implies potential upside of approximately 93% for investors over the next 12 months. It said:

We maintain our BUY recommendation and increase PT to $23.50.

To put that into context, a $5,000 investment would turn into approximately $9,650 by this time next year if Bell Potter is on the money with its recommendation.

The post Bell Potter says this ASX healthcare share could rise 93% (It’s not CSL) appeared first on The Motley Fool Australia.

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

ASX blue-chip shares can be among the best options for passive income because of both their dividend yields and the stability they provide.

Businesses that are market leaders in their sector can be a very effective choice because they are much stronger than competitors, with scale and margin advantages.

The two businesses below have a strong track record of paying dividends, and I expect compelling dividend payouts in the months and years ahead.

JB Hi-Fi Ltd (ASX: JBH)

JB Hi-Fi is one of the leading retailers in Australia and New Zealand, with its JB Hi-Fi Australia, JB Hi-Fi New Zealand, The Good Guys and E&S Trading businesses.

The ASX blue-chip share is arguably the market leader in electronics and appliances in Australia, and it continues to work on improving its position through new stores, increased scale, and a low-cost operating model.

JB Hi-Fi has grown its annual dividend in most years over the last 13 years, which is impressive to me for a retailer.

The business doesn’t typically trade on a high price/earnings (P/E) ratio, which means its dividend yield can be attractive.

According to Commsec’s projection, the business is forecast to pay an annual dividend per share of $3.38 in FY26. That translates into a possible grossed-up dividend yield of 5.9%, including franking credits.

Electronics and appliances remain an essential element for many households, so I expect the company can deliver fairly defensive earnings during this period of higher inflation and interest rates (again).

Telstra Group Ltd (ASX: TLS)

Telstra is Australia’s leading telecommunications business with the most subscribers, the widest network coverage and seemingly the best spectrum assets to deliver its service.

The ASX blue-chip share has leveraged its market position in Australia with regular price increases. Unlocking more revenue from the same number of subscribers should improve its margins, since costs aren’t increasing at the same pace.

Australia is becoming increasingly digital for households, businesses and government, which gives the company defensive earnings. Plus, Australia’s growing population gives the business a tailwind to win more subscribers.

According to Commsec’s projection, the business is forecast to pay an annual dividend per share of 21 cents in FY26. That translates into a possible grossed-up dividend yield of 5.8%, including franking credits.

The business has a strong chance of increasing its dividend in FY27 and is expected to raise its annual payout to 21.5 cents per share, according to projections on Commsec.

The post 2 ASX blue-chip shares offering big dividend yields 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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Xero Ltd (ASX: XRO) share price has been one of the worst performers in the S&P/ASX 200 Index (ASX: XJO) in recent history. In the last year alone (at the time of writing), the Xero share price has dropped more than 60%, as the below chart shows.

As an accounting software business, Xero has been one of the victims of the big decline in investor confidence surrounding software companies.

But, I think the business has been significantly oversold, and now looks very good value for three reasons.

Ongoing revenue growth

Firstly, the decline in the share price suggests a bleak future. However, while we can’t know for certain what the future holds (positively or negatively), revenue (and subscriber) numbers remain solid because of a few different elements.

The company recently reported its FY26 results for the 12 months to 31 March 2026. Its customer numbers grew 11% to 4.92 million. Growth is accelerating – its net customer additions (excluding removed long idle subscriptions) improved by 22% to 506,000. That’s a lot of extra revenue flowing through the business!

Its average revenue per user (ARPU) continues to grow thanks to regular price hikes, which isn’t materially hurting the loyalty of subscribers. ARPU rose 23% to $55.44 during the FY26 period.

Those subscribers likely see the huge time-saving and efficiency tools Xero provides as a great benefit. Time-poor business owners (and accountants and bookkeepers) want to complete tasks as quickly as possible.

Thanks to those revenue growth benefits, its annualised monthly recurring revenue (AMRR) jumped 37% to $3.27 billion, and the total lifetime value (LTV) of customers increased 17% to $21 billion.

US expansion

Xero has built a significant market position in New Zealand, Australia and the UK. It also has a growing presence in countries like Singapore, South Africa and Canada.

However, it has struggled to gain much of a foothold in the US, which is a huge market if Xero can get it right. It’s difficult to break into a market that already has such embedded incumbents.

The acquisition of small and medium business payments company Melio may have been costly, but it could unlock the growth and access to more subscribers that Xero has hoped for.

In FY26, it reported US revenue growth of 240% (30% on an organic basis, excluding Melio). If it can continue to grow US revenue in the double digits, I think it has a very good future.

Long-term profit potential

Profitability took a hit in FY26 due to Melio-related acquisition costs, but I think the long-term outlook looks very promising for continued profit growth in the coming years.

As a software business, the company has a lot of operating leverage – its revenue can increase at a much faster pace than its expenses, in a normal financial year.

As revenue continues to grow, I expect earnings to grow quickly. Despite profit headwinds in FY26, free cash flow increased 9% to $554 million. The company can use the rapidly rising cash flow to pay dividends and/or make more bolt-on acquisitions.

For me, long-term profit growth is the key reason I’m interested in the Xero share price.

I think Xero is a very exciting ASX share to own, though it’s not the only stock I’d buy today.

The post 3 reasons why the Xero share price is a buy in July 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 Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Pro Medicus Ltd (ASX: PME) share price has been an incredible performer over the last five years, rising by 230%. The Australian stock’s return would have been much stronger if the end date of this measure had been July 2025, as it was above $330 at that stage.

As the above chart shows, it’s actually down 40% since that July 2025 peak. So, after significant volatility over the past year, is it good value or overvalued?

Let’s take a look at what analysts think of the business at its current valuation.

Expert views on Pro Medicus shares

According to CMC Invest, there have been 10 analyst ratings on the business. Of those ratings, nine were buys, and one was a hold.

Clearly, investors are feeling very positive about the business right now, though it has already regained some of its lost ground after rising more than 40% over the last month.

Experts still think the Pro Medicus share price could rise from here. The average price target of those 10 ratings is $203.15. That suggests it could rise more than 7% in the next year.

The most optimistic price target is $245.13, suggesting it could rise another 30% from where it is at the time of writing.

Why is the Australian stock still attractive?

The business has continued to deliver excellent financials for shareholders, which is the only thing Pro Medicus can truly control.

Its operating profit (EBIT) remains one of the highest on the ASX. This means much of the new revenue it’s winning is turning directly into usable EBIT that can help grow the bottom line, pay larger dividends, and/or strengthen the balance sheet.

The company continues to win new and renew existing contracts from valuable clients, giving it tailwinds for shareholder returns.

Additionally, Pro Medicus continues to strive to offer the best service, which is why it recently announced it’s exploring a partnership with EchoIQ Ltd (ASX: EIQ) to provide Pro Medicus customers with AI-powered cardiovascular diagnostic technology. Cardiology could be a great growth avenue for Pro Medicus.

The company’s earnings per share (EPS) is expected to continue rising at a strong pace. According to Commsec’s forecast, the business is projected to grow EPS by around 30% in FY27 and by another 25% in FY28.

Can any other very profitable S&P/ASX 200 Index (ASX: XJO) share grow EPS as much in percentage terms between FY26 and FY28? Time will tell, but I think the Australian stock has a very promising future.

The post Up 230% in 5 years! Is this still a top Australian stock to buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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.

I believe investors are much more likely to see good returns by owning ASX shares over the long term.

But, there aren’t many investments I’d commit to owning for 10 years, let alone 60 or 70 years.

There are a few names I expect to own for a very long time. I’ve already owned the two below ASX share for many years and I expect they’ll be in my portfolio for decades to come.

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust (REIT) that owns farmland across Australia.

Farms have been an essential part of life for many centuries, and I think that will continue to be the case for a very long time to come.

Rural Funds is invested across a variety of farming sectors. I like the diversification strategy of the business because it lowers the risk of being too exposed to one type of farm and allows it to find the best opportunities it can for a combination of rental income and growth.

The business has long-term rental agreements signed with high-quality agricultural producers. The weighted average lease expiry (WALE) is currently over a decade, indicating compelling rental visibility and security.

Its rental income is steadily growing thanks to contracted increases, either linked to inflation or fixed annual increases, plus market reviews.

One of the main reasons this seems like such a good time to invest is that the business is trading at a significant discount to its net asset value (NAV) – the underlying value of the business, including property values, loans, and so on.

At 31 December 2025, it had an adjusted NAV of $3.10. At the time of writing, it’s trading at a discount of around 33%.

As a final bonus, it offers good passive income – it currently has a distribution yield of 5.6%.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is another ASX share I expect to deliver excellent longevity. It has already been listed for 120 years, and I think it’ll excel for decades to come.

The investment house has a very diversified portfolio of assets and businesses. Having a flexible investment mandate allows the company to steadily change its asset base over the years, giving the business the ability to future-proof itself.

In 20 years, its main investments could be extremely different, but the business will still have the same level of attraction to me. Management is always looking for ideas that can generate defensive cash flow and deliver long-term capital growth.

Currently, some of its biggest investments include energy, sources, property, swimming schools, agriculture, electrification, credit and plenty more.

Soul Patts has outperformed the S&P/ASX 200 Index (ASX: XJO) over the long-term, and I expect that to continue as the business further adjusts its portfolio.

One of the main reasons I like it so much as an investment is its excellent track record of dividend growth. It has increased its regular payout every year since 1998. That’s the most consistent dividend growth record on the ASX.

The post 2 ASX shares I plan to own until I’m 100 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Rural Funds Group 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. The Motley Fool Australia has positions in and has recommended Rural Funds Group and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owning Wesfarmers Ltd (ASX: WES) shares has been an excellent choice for passive income over the past decade, and I expect it will continue for the foreseeable future.

Shareholders can largely thank Bunnings and Kmart for enabling the company to pay stable and growing dividends this decade. On more than one occasion, those two leading businesses have helped households during high inflation.

Even if national retail spending were to fall, Kmart and Bunnings have shown the ability to grow sales, a great sign that they are increasing their market share. Bigger scale can also help with improving profit margins.

With the business set to report dividend growth in FY26, we’re going to look at what the business could deliver in FY27.

Wesfarmers dividend projection for FY27

According to Commsec’s forecast, the business is projected to pay an annual dividend per share of $2.19 in FY26. That translates into a dividend yield of 2.4%, or 3.5% including the franking credits.

I wanted to give context of where the Wesfarmers dividend is expected to be in FY26 before seeing what could happen in FY27.

According to Commsec’s forecast, the business is projected to grow its annual dividend per share by 8% year-over-year in FY27 to $2.33 per Wesfarmers share.

At the time of writing, that potential payout translates into a dividend yield of 2.6%, or 3.7% including the franking credits.

What would be needed for $1,000 of passive income?

The prospects look good for shareholders to get bigger payouts in FY27, though that’s not guaranteed, of course.

If an investor wants $1,000 of passive income from the Kmart and Bunnings owner, they’d need 430 Wesfarmers shares. At the time of writing, this would cost approximately $38,300.  

If we include franking credits in the income goal, an investor would only need 301 Wesfarmers shares to generate $1,000 in annual dividends. At the time of writing, this would cost approximately $26,800.

Is this a good time to invest in Wesfarmers shares?

I think Wesfarmers is one of the best ASX blue-chip shares around. However, at the time of writing, it has risen approximately 15% in the past month. It’s not as good value as it was.

According to CMC Invest, the average price target from nine recent analyst ratings on the business is $76.34. That suggests those analysts collectively believe the stock could drop by more than 14% over the next year, so there could be even better opportunities at more attractive valuations.

The post How much must I invest in Wesfarmers 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 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.

It’s been another brutal week for shareholders of WiseTech Global Ltd (ASX: WTC).

The ASX technology stock tumbled another 15% last week, extending what has become one of the market’s most dramatic sell-offs. WiseTech shares are now down around 54% since the start of 2026 and have plunged approximately 71% over the past 12 months.

Not long ago, WiseTech was one of the ASX’s undisputed tech champions, consistently delivering strong earnings growth and commanding a premium valuation. Today, it has become one of the market’s biggest battleground stocks.

So, what’s driving the volatility?

Markets hate uncertainty

The biggest issue hanging over WiseTech shares isn’t slowing demand for its software.

It’s governance. Investors have become increasingly uneasy about the ongoing scrutiny surrounding founder and executive chairman Richard White. Markets can tolerate bad news. What they dislike is uncertainty.

When governance concerns dominate the headlines, investors often demand a lower valuation regardless of how well the underlying business is performing.

That’s exactly what’s happened here. Even after the share price collapse, some investors remain concerned that the ongoing distractions could affect management’s focus, customer relationships, staff retention, or the company’s ability to execute its long-term growth strategy.

Whether those risks ultimately materialise almost becomes secondary. Right now, the uncertainty itself is enough to keep many investors on the sidelines.

Why are analysts still optimistic?

Despite the negative headlines, many analysts argue that the core business remains largely intact.

WiseTech’s flagship CargoWise platform is deeply embedded within the global logistics industry. Freight forwarders, customs brokers, warehouse operators, and supply chain businesses rely on the software to manage everything from customs compliance and freight movements to inventory and international trade documentation.

That creates one of the company’s biggest competitive strengths. Once CargoWise becomes part of a customer’s operations, replacing it is expensive, disruptive, and time-consuming. Those high switching costs help support recurring revenue, strong customer retention, and pricing power.

Analysts also see significant long-term growth opportunities. Global logistics remains a highly fragmented industry, leaving plenty of scope for CargoWise to win new customers, expand into additional markets, and sell more products to existing clients.

In other words, while the price of WiseTech shares has collapsed, many believe the business itself hasn’t changed nearly as much.

What are brokers saying?

Broker opinion reflects that view. Morgan Stanley (NYSE: MS) recently lowered its price target for WiseTech shares but maintained its overweight rating.

Likewise, Bell Potter has retained its buy recommendation. While Bell Potter reduced its 12-month price target from $78.75 to $71.75, that still implies upside of around 127% from the current share price of approximately $31.55.

The message from analysts is fairly consistent: governance concerns have hurt sentiment, but they don’t necessarily believe the company’s competitive advantages have disappeared.

What’s next for WiseTech shares?

The next move could come down to two key questions. Can management restore investor confidence by addressing governance concerns? And can WiseTech keep delivering the earnings growth that made it one of Australia’s most successful technology companies?

Until governance uncertainty fades, WiseTech shares are likely to remain volatile. But if management can rebuild trust while continuing to execute operationally, the stock’s recent collapse could eventually look more like an overreaction than a permanent reset.

The post WiseTech shares are all over the place. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Calling popular ASX dividend shares “well priced” is a disservice to readers.

Some have simply run too far for that to still be true. Being honest means being upfront about which of these three ASX dividend shares still offer value, and which ones have become more of a quality holding than a bargain.

Here are three ASX dividend stocks that offer attractive yields at attractive prices for Australian investors.

Amcor Plc (ASX: AMC)

Amcor remains the clearest case of a well-priced dividend share on this list.

Its shares trade at approximately $61.67, still down materially from their 52-week high of $76.40. Amcor carries a dividend yield of approximately 5.9%, based on the most recently declared quarterly dividend of 91.0 AUD cents per share, annualised.

That yield is unfranked, reflecting Amcor’s UK domicile and predominantly offshore earnings base. But the headline number remains attractive on an absolute basis.

Moreover, the company is performing. In the March 2026 quarter, Amcor delivered net sales of US$5.91 billion, up 77% year-on-year. Adjusted EBITDA surged 87% to US$892 million, as synergies from the completed Berry Global acquisition continued to come through.

CEO Peter Konieczny noted the result, stating:

The resilience of our business as we mark the first anniversary of bringing legacy Amcor and Berry together as One Amcor.

Even better, Amcor pays dividends quarterly, giving income investors a more frequent cash flow than the twice-yearly norm on the ASX.

Suncorp Group Ltd (ASX: SUN)

Suncorp is the second well-priced name here, though the dividend outlook requires a degree of patience.

UBS expects Suncorp’s FY2026 net profit and dividend to fall significantly due to catastrophe costs running roughly $580 million above budget, cutting its FY2026 EPS forecast by 31%.

Despite that near-term hit, UBS retains a buy rating with a $22 price target and forecasts an annual dividend of 66 cents per share for FY2026.

This implies a grossed-up yield of approximately 5.0% including franking credits.

The broker’s more interesting observation is that the same catastrophe events pushing this year’s dividend lower could “extend the positive home/motor pricing cycle,” supporting a recovery in FY2027 and beyond.

UBS projects the dividend will climb toward $1.09 per share by FY2030, implying a forward grossed-up yield of approximately 8.2% at today’s price.

This gap between a soft near-term number and a much stronger multi-year trajectory represents a potential attractive entry point for incoming investors.

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

Dalrymple Bay Infrastructure has appeared on dividend lists like this one before, and for good reason.

Why? The underlying business is high quality, with regulated, contracted revenue from its metallurgical coal export terminal in Queensland.

DBI shares hit an all-time high of $6.01 on 24 June 2026, up roughly 40% over the past twelve months. This has compressed the trailing yield to approximately 4.6%.

At an all-time high with a yield below 5%, DBI may not be the bargain it was earlier this year. However, shares have proven to be a reasonable holding for income investors over the long-term.

For investors seeking compounding dividends over the long term, DBI’s high-quality business model provides a compelling investment case.

Foolish takeaway

Amcor and Suncorp both still offer a genuine combination of an attractive yield and a credible path to dividend growth from here.

Dalrymple Bay Infrastructure is a quality business with a proven track record of compounding earnings and dividends.

Income investors looking for high yield at a reasonable price don’t need to look much further than these ASX dividend shares.

The post 3 well-priced ASX dividend shares to buy today appeared first on The Motley Fool Australia.

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• How much do I need in my superannuation to get $1000 per week in passive income?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Mark Verhoeven 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 Amcor Plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Passive income is even better when it has room to grow.

A good dividend yield today can be attractive, but growth can make a big difference over time as earnings rise and companies return more cash to shareholders.

With that in mind, here are three ASX dividend shares that could be worth considering for the long term.

Amcor PLC (ASX: AMC)

Amcor could be an ASX dividend share to consider for growing passive income.

The packaging giant operates across the world, producing flexible and rigid packaging for food, beverages, healthcare, personal care, and other consumer products.

That gives Amcor exposure to everyday consumption rather than one narrow product category. People may change brands, shop around, or reduce spending in tougher periods, but packaged goods remain part of daily life across households and businesses.

The company is also exposed to defensive end markets, which can help support cash flow through different economic conditions.

Dicker Data Ltd (ASX: DDR)

Another ASX dividend share to look at for the long term is Dicker Data.

It is a technology distributor that connects major global vendors with resellers, managed service providers, and business customers across Australia and New Zealand.

Its products cover areas such as hardware, software, cloud, cybersecurity, networking, and other technology infrastructure.

That puts the company in an interesting position. It is not trying to be the next software disruptor. It sits in the middle of the technology supply chain, helping businesses access the tools they need to operate, modernise, and protect their systems.

Over the past decade, Dicker Data has also built a reputation as a strong dividend payer. The good news is that this trend looks set to continue.

As companies keep investing in cloud services, security, devices, and digital infrastructure, Dicker Data is well-placed to continue generating the cash flow needed to support dividends over time.

Universal Store Holdings Ltd (ASX: UNI)

A third ASX dividend share to consider is youth-focused fashion retailer Universal Store.

Retail can be cyclical, but Universal Store has carved out a clear position in the youth fashion market, with a strong understanding of brands, trends, store experience, and customer behaviour.

That gives it a different income profile from traditional defensive dividend shares.

When trading conditions are supportive, retailers with strong margins, disciplined inventory management, and a loyal customer base can generate attractive cash flow.

Another positive is that Universal Store has the potential to grow its earnings and dividends through new store openings, brand development, private label expansion, and better online execution.

The post 3 ASX dividend shares to buy for growing passive income appeared first on The Motley Fool Australia.

More reading

• 3 well-priced ASX dividend shares to buy today
• 1 ASX dividend stock down 19% I’d buy right now
• Downgrade alert! 4 ASX shares re-rated by experts this week
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• How much do I need in my superannuation to get $1000 per week in passive income?

Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Amcor Plc and Dicker Data. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It has been a rough ride for the GQG Partners Inc (ASX: GQG) share price over the last year, it’s down around 40% since July 2025, as the chart below shows. The drop of the valuation has led to a big increase in the dividend yield.

GQG is a leading US-based fund manager offering four main strategies. Its key funds are focused on international shares (excluding the US), emerging market shares, US shares and global shares.

Headwinds to turn into tailwinds?

Short-term investment performance has been difficult as the fund manager positioned its portfolios defensively to protect against excessive, lofty valuations. Despite that, all four of its strategies have outperformed their respective benchmarks since their inception in 2014.

I think the business has a lot of potential to outperform from this current low point in the GQG share price.

The business could see better performance in the coming months if share markets rise, providing a tailwind for its funds under management (FUM) to rise. Or, if the market falls, its defensive positioning could enable outperformance of the benchmark.

FUM outflows have already slowed significantly, and returning to outperformance could help GQG regain FUM inflows.

Big dividend yield

The business is currently paying out approximately 90% of its distributable profit to shareholders, which is a very generous level of passive income.

With the large drop in the GQG share price, it’s now trading on a very low price/earnings (P/E) ratio, giving investors an opportunity to buy this business for incredible value.

It pays its dividend quarterly, meaning investors receive their payouts at a pleasing frequency. The latest dividend was AU $0.04878 per share, which translates into an annualised dividend yield of 13.4%.

That also suggests that the business is currently valued at less than 7x its current annualised distributable profit.

If FUM were to continue declining over a long period, that would not be ideal. But GQG has a long track record of outperforming its benchmarks, and I believe it can get back to that level of performance.

What do analysts think of the GQG share price?

According to CMC Invest, there have been three ratings on the business within the last three months, with two buy ratings and one hold rating. The average price target is $1.76, implying a possible rise of around 20% over the next year.

Overall, it seems like the business is significantly undervalued, and it can provide investors with a lot of passive income.

The post Down 39% in 12 months with a 13% yield, are GQG shares too cheap to ignore? 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 Gqg Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.