Dollar General sees opportunities to fill spots left behind as rivals close stores.
Jakub Porzycki/NurPhoto via Getty Images
Dollar General is planning to open fewer stores in 2026 than it did this year.
But its CEO sees plenty of space for thousands more Dollar General locations.
That's because rivals, such as drug stores, have shuttered many locations.
Dollar General has over 20,000 stores. Its CEO says it has the opportunity to add thousands more in the long run.
In 2026, Dollar General plans to open 450 new stores, the company said on Thursday. That's a slower pace compared to the 575 it planned for 2025.
But CEO Todd Vasos said that the chain has identified about 11,000 places in the continental US where it could open a Dollar General store in the future.
On the company's third-quarter earnings call on Thursday, an analyst asked if Dollar General executives see expansion opportunities as other chains, such as rival Family Dollar and drugstores such as Rite Aid, shutter locations.
Dollar General won't necessarily open a store at each of those 11,000 locations, though the company sees opportunities to open up shop where its rivals once were, Vasos said.
"We won't get all those," he said in response to the analyst. "But your question pointed to the reason we're bullish on getting a lot of these."
"Our competition today is really not opening a lot of stores," Vasos said. "We don't feel compelled to have to rush to open a lot of stores."
At the same time, Dollar Generals' executives feel "very bullish about what the future looks like" because of the availability of store locations, Vasos said.
Dollar General opened its 20,000th store early last year. Besides its standard store format, it also operates locations focused on fresh groceries and suburban shoppers seeking decor.
Dollar General's third-quarter earnings results largely beat analysts' expectations, and the company raised its profit forecast for 2025. The chain's stock is up 49% so far this year.
There are plenty of well-established, index tracking ASX ETFs.
In Australia, funds like Vanguard Australian Shares Index ETF (ASX: VAS) and iShares Core S&P/ASX 200 ETF (ASX: IOZ) track the biggest companies domestically.
Additionally, there are similar funds to track US blue-chips.
However, there have been plenty of new funds hitting the market this year as providers try to focus on niche sectors and themes.
At the end of October, Betashares dropped its newest fund.
The fund is the FTSE Global Infrastructure Shares Currency Hedged ETF (ASX: TOLL).Â
ASX ETF overview
According to Betashares, the fund aims to track the performance of an index (before fees and expenses) that provides exposure to infrastructure companies from developed countries, hedged into Australian dollars.
It is currently made up of 135 holdings.
The provider said 50% of the portfolio is invested in utilities, 30% in transportation companies and 20% in infrastructure REITs, energy pipelines and telecommunications.
Infrastructure companies provide capital-intensive essential services that tend to be in consistent demand across the economic cycle. As a result, they typically enjoy strong market positions and pricing power, making them a useful portfolio building block. Low historical correlations with global equities mean an allocation to global infrastructure can also contribute to portfolio diversification.
According to the provider, the companies that this fund invests in tend to generate stable, long-term cash flows that are often linked to inflation.
It aims to generate attractive quarterly income, funded by the dividends paid by the companies in the portfolio.
It has a 12 month trailing dividend yield of 3.2%.
Geographically, its largest exposure is to companies in:
United States (59.0%)
Canada (10.8%)
Australia (6.2%)
Spain (5.7%)
Britain (4.2%)
The fund is currency-hedged to AUD. This means the fund seeks to neutralise fluctuations in foreign currencies vs the Australian dollar. That means investors hold a “global infrastructure” exposure but with reduced foreign-exchange risk.
How has it performed?
This ASX ETF has only been listed for roughly one month so far.
However, it is up 1.26% in that span.
The fund may be ideal for investors wanting global infrastructure exposure without currency risk.
It is worth mentioning there are some funds already listed on the ASX that may be directly competing with this Betashares ETF.
For example:
Vanguard Global Infrastructure Index ETF (ASX: VBLD) – This fund offers exposure to infrastructure sectors, including transportation, energy and telecommunications. The ETF is exposed to the fluctuating values of foreign currencies.
VanEck Ftse Global Infrastructure (Hedged) ETF (ASX: IFRA) – Also gives investors exposure to a diversified portfolio of infrastructure securities listed on exchanges in developed markets around the world.
Should you invest $1,000 in Vanguard Global Infrastructure Index ETF right now?
Before you buy Vanguard Global Infrastructure Index ETF shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Vanguard Global Infrastructure Index ETF wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Aaron Bell 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.
With 2026 fast approaching, now’s a great time to think about buying a few S&P/ASX 200 Index (ASX: XJO) shares that look well-placed to outperform in the new year. With a particular eye out for companies that also pay dividends.
With that in mind, we look at three such large-cap passive income shares Macquarie Group Ltd (ASX: MQG) expects should deliver gains of 7% to 12% atop their attractive dividend yields.
Two agribusiness ASX 200 shares to buy today
First up, we have agribusiness Elders Ltd (ASX: ELD).
Elders shares closed on Thursday trading for $7.33 each. That sees the Elders share price up 2% in 2025. The ASX 200 share also trades on a partly franked 4.9% dividend yield.
Looking to the year ahead, Macquarie has an outperform rating on Elders shares.
According to the broker:
Optimism from the company re FY26 outlook evident at recent result with first 6 weeks of trading +30% vs pcp (pre Delta, EBIT basis) on improvement in seasonal conditions. Delta adds c$40m of EBIT on our forecasts and underpins our expectation for EBIT growth of 49% next 12 months.
15% return on capital target in focus with benefit from streamlined NWC, less bolt-on M&A activity and as come to end of SysMod transformation programme. Medium-term, we think ELD offers good earnings growth potential with cyclical rebound, Delta synergies (conservative) and further organic growth.
Macquarie has a price target of $8.25 on Elders shares. That represents a potential upside of more than 12% from current levels, not including dividends.
Which brings us to the second ASX 200 share to buy that Macquarie expects to outperform, rival Aussie agribusiness Graincorp Ltd (ASX: GNC).
Graincorp shares closed on Thursday trading for $8.19 each. This puts the Graincorp share price up 12% in 2025. Graincorp stock also trades on a market-beating, fully franked 5.9% dividend yield.
Macquarie noted:
GNC balance sheet/returns metrics compare well to peers. Particularly in Ag sector, a strong balance sheet affords flexibility to sustain investment requirements and capital returns even volatile cycle. GNC has demonstrated these characteristics over the past 2-3 years as grain prices and earnings have fallen from peak levels.
We expect FY26 EBITDA -1% vs pcp on fall in east coast grain vols (albeit remain near record levels) amid constrained margin environment. Recent corporate activity across broader infrastructure space a reminder of value inherent in GNC assets.
Macquarie has an $8.80 price target on Graincorp shares. That represents a potential upside of more than 7% from yesterday’s closing price, not including those upcoming dividends.
Also tipped to outperform
The third ASX 200 share you may wish to buy today in preparation for the new year is Orica Ltd (ASX: ORI).
Shares in the mining and infrastructure solutions provider â which is also the world’s largest commercial explosives manufacturer â closed on Thursday trading for $24.01.
This sees the Orica share price up a whopping 45% in 2025. Orica shares also trade on a 2.4% unfranked dividend yield.
And Macquarie expects more outperformance from Orica in the year ahead.
According to the broker:
We fct a positive earnings outlook (10% CAGR eps next 3 years) coupled with a strong bal sheet. At 17.5x FY27e, PE ORI trades at 4% PE rel discount to ASX100 vs ~4% L/T premium and a slight discount to DNL’s 18.1x (FY27 first year post-fert for DNL). Gold is ORI’s largest end market commodity (26% of rev) with exposure via explosives, cyanide and Axis (latter more exploration driven).
At FY25 result ORI lifted medterm earnings growth targets for Specialty Mining Chemicals (SMC) to high-single digit EBIT growth (mid-single digits prior) & Digital to middouble digits (low-double digits). Other focus areas inc duration of CF supply outage at Yazoo city: force majeure declared and ORI has lined up alternate supply but likely additional cost.
Commod price evolution (gold prices likely supported near term) and activity drivers across Nth Am Q&C, mining and coal sectors also in focus.
Macquarie has an outperform rating on Orica shares with a $25.95 price target. That’s more than 8% Thursday’s close. And again, it doesn’t include the upcoming 2026 dividends.
Should you invest $1,000 in Elders Limited right now?
Before you buy Elders Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Elders Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Bernd Struben 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The S&P/ASX 200 Index (ASX: XJO) fell more than 3% in that span.
Sectors that were hit particularly hard by losses were Financials, Technology and Real Estate, which all fell between 4-11% according to Bell Potter’s Monthly Bell report.
But when quality blue-chip stocks lose ground, it can create buying opportunities.
It’s not uncommon for investor sentiment to fall, and spiral on itself, despite a company not having any serious flaws.
There are a few ASX 200 stocks that I believe might fall into this bucket.
When this happens, it’s a great time to jump in on undervalued stocks.
With that sentiment in mind, here are three ASX 200 shares to target right now with $1,000.
Should you invest $1,000 in Technology One Limited right now?
Before you buy Technology One Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Technology One Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Aaron Bell 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 Life360 and Technology One. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Execution remains best-in-class: Scarborough, Sangomar and Trion all tracking on time and budget. Louisiana progressing under de-risked funding structure.
Wesfarmers is the largest ASX 200 consumer discretionary share with a market cap of $93 billion.
The Wesfarmers share price closed at $82.01, up 0.35% yesterday and up 14.8% in 2025.
Morgans has a trim rating on Wesfarmers with a price target of $79.30 per share.
In a note, the broker explained:
While we continue to view WES as a core long-term portfolio holding with a diversified group of well-known retail and industrial brands, a healthy balance sheet, and an experienced leadership team with a strong track record of growth, trading on 35x FY26F PE we see the stock as overvalued in the short term.
Goodman Group is largest ASX 200 property share with a market cap of $60 billion.
The Goodman Group share price closed at $29.36, down 2.7% yesterday and down 18.5% in 2025.
Morgans has an accumulate rating on Goodman Group with a share price target of $36.30.
The broker says:
GMG continues to reiterate the immense data centre opportunity ahead â 5GW of potential capacity across key global gateway cities.
However, the longer time to develop these assets is seeing capital intensity increase as data centres form a larger proportion of work-in-progress (WIP).
⦠we attribute much of the recent share price decline to the shifting narrative around the outlook for hyperscale capex.
Should you invest $1,000 in Wesfarmers Limited right now?
Before you buy Wesfarmers Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Wesfarmers Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
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 Goodman Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool Australia has recommended Goodman Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
On Thursday, the S&P/ASX 200 Index (ASX: XJO) fought hard to carve out a decent gain. The benchmark index rose 0.3% to 8,618.4 points.
Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:
ASX 200 expected to rise
The Australian share market looks set to edge higher on Friday following a mixed night in the United States. According to the latest SPI futures, the ASX 200 is expected to open 13 points or 0.15% higher this morning. In late trade on Wall Street, the Dow Jones is currently down 0.15%, the S&P 500 is 0.05% lower, and the Nasdaq is up 0.1%.
Oil prices rise
It could be a good finish to the week for ASX 200 energy shares such as Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.2% to US$59.66 a barrel and the Brent crude oil price is up 0.9% to US$63.24 a barrel. Traders have been buying oil after Russia-Ukraine peace talks failed to reach a deal.
Rio Tinto update
Rio Tinto Ltd (ASX: RIO) shares will be on watch today after the mining giant announced its new strategy. The company’s chief executive, Simon Trott, detailed how Rio Tinto will unlock its full potential to become the most valued metals and mining business. It aims to achieve this through a strategy that starts with having the right assets in the right markets, supported by a diversified model that delivers market-leading performance and industry-leading returns. The miner has earmarked up to A$15 billion of assets that it could divest.
Gold price edges higher
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a reasonably positive finish to the week after the gold price rose overnight. According to CNBC, the gold futures price is up 0.15% to US$4,238.9 an ounce. US dollar weakness appear to have been behind this.
NextDC-OpenAI deal
Nextdc Ltd (ASX: NXT) shares will be in focus today amid reports that the company has signed an agreement with ChatGPT owner OpenAI. According to the AFR, this will see NextDC build the largest data centre in the southern hemisphere in Sydney’s Eastern Creek. OpenAI chief executive, Sam Altman, said: “Australia is well-placed to be a global leader in AI, with deep technical talent, strong institutions and a clear ambition to use new technology to lift productivity.”
Should you invest $1,000 in Evolution Mining Limited right now?
Before you buy Evolution Mining Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Evolution Mining Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor James Mickleboro has positions in Nextdc. 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.
With the S&P/ASX 200 Index (ASX: XJO) down about 5.4% from its October record highs, it’s arguably a good time to reassess the markets as we approach the end of 2025 and look for some of the best stocks available to invest in.
It’s still hard to call the ASX cheap as a whole, despite this dip. But it’s what we have right now, so we may as well work with it.
If I had $1,000 to invest in this market today, there are two best ASX stocks I would probably go for. Neither are screaming buys, but both are still trading at reasonable valuations for a long-term investor. At least in my view. Let’s dive in.
2 of the ASX’s best stocks to buy with $1,000 today
First up, we have Wesfarmers. Wesfarmers is the name behind some of the most successful retailers in the country, including OfficeWorks, Kmart and Bunnings. Wesfarmers also owns a sprawl of other businesses though, ranging from Wesfarmers Chemicals, Energy and Fertilisers (WesCEF) to the Priceline pharmacy chain.
I like this company as a long-term investment because of this inherent diversification, as well as Wesfarmers’ decades-long track record of delivering results for its shareholders. It has prudently managed its underlying companies with aplomb, delivering meaningful capital growth over many years. It has also been a star in the dividend department, consistently raising its fully franked payouts over time.
At just over $80 a share today, I wouldn’t call this stock particularly cheap. But it’s a lot better than the $95 we were seeing just a few months ago. If you’re stuck for a place to put $1,000 right now, you could do worse than this conglomerate.
Next up, we have the listed investment company (LIC) MFF Capital. Like most LICs, MFF owns and manages a portfolio of underlying investments on behalf of its shareholders.
In this case, those investments are some of the best stocks from the United States. MFF follows a Warren Buffett-inspired playbook of buying high-quality stocks at prices that make sense, and holding them through thick and thin. Some of its longest-held positions include Amazon, Alphabet, Visa, American Express and Mastercard. All have been in the MFF portfolio for years.
This week, MFF told the market that its portfolio was worth $5.30 per share on a pre-tax basis. Yet you can buy its shares for $4.81 each at recent pricing. Given this LIC’s impressive performance and savvy investment strategy, I think it is one of the best stocks on the ASX. I would be happy to put $1,000 in it today.
Should you invest $1,000 in Mff Capital Investments right now?
Before you buy Mff Capital Investments shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Mff Capital Investments wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
American Express is an advertising partner of Motley Fool Money. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, American Express, Mastercard, Mff Capital Investments, Visa, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Mastercard, Visa, and Wesfarmers. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Mff Capital Investments, Visa, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Carl Rinsch is on trial in Manhattan federal court over criminal allegations that he defrauded Netflix and went on a spending spree with the $11 million earmarked for a TV show production.
Lloyd Mitchell for BI
Director Carl Rinsch is on trial for defrauding Netflix of $11 million.
An FBI agent detailed spending on luxury cars and hundreds of orders on Postmates and Uber Eats.
The money was supposed to go toward the production of "White Horse," which was never finished.
In March of 2020, Netflix infused $11 million into a production company to complete the first season of "White Horse," a futuristic sci-fi series it hoped to bring to its platform.
But a short time after he got the cash, Rinsch spent millions of dollars on furniture, cars, credit card bills — and a whole lot of takeout.
According to testimony at his criminal trial on Thursday,Rinsch spent a total of $9.14 million through a personal bank account with funds originally earmarked to finish "White Horse," which had the production codename "Conquest."
The spending included more than 480 food deliveries from Postmates and Uber Eats during a six-month span in 2022, according to a spreadsheet entered into evidence. The spreadsheet showed Rinsch sometimes making a dozen separate food purchases each day.
The most expensive category, FBI agent Michael Naccarelli testified, was for furniture, for which Rinsch spent $3.36 million.
Rinsch also spent $2.4 million on cars — including a Ferrari and Rolls-Royces — and $1.8 million on American Express bills, according to Naccarelli. He also spent money on hotels, jewelry, and art, Naccarelli said.
"Rinsch described the Ferrari as "a birthday gift to myself" in a 2021text message to his personal assistant, which was shown to jurors later Thursday.
Attorneys for Rinsch told jurors at his trial in Manhattan federal court that the "White Horse" debacle is a civil business dispute — not criminal financial fraud.
They say Rinsch, who previously directed "47 Ronin," starring Keanu Reeves, is a "creative genius" who was overwhelmed by the demands of directing, writing, and producing "White Horse" and left to flounder by the streaming company.
Days after Netflix sent $11 million to a bank account for Rinsch's production company, he moved $10.5 million to a personal Wells Fargo bank account, according to Naccarelli and records entered into trial evidence.
The director then moved portions of the funds to a Kraken cryptocurrency exchange account, as well as other bank accounts, before ultimately transferring $13.7 million to a personal Bank of America account.
With his Kraken account, Rinsch purchased about a dozen different cryptocurrencies, including Dogecoin, Etherium, Bitcoin Cash, and the stablecoin Tether, trial records show.
In April 2022, Rinsch's Dogecoin holdings were worth about $755,000, and his Etherium tokens about $939,000, according to Naccarelli.
While a financial advisor previously testified in the trial that Rinsch's stock investments went badly, Naccarelli said the director's cryptocurrency investments were profitable.
"The trades performed very well," Naccarelli said as Rinsch — wearing a three-piece black suit and a patterned pink tie and matching pocket square — nodded slightly.
Allen Grove, an FBI agent who testified after Naccarelli, said Rinsch considered himself a major Dogecoin trader when they met in April 2023 regarding a dispute over one of Rinsch's furniture purchases in Paris.
"Mr. Rinsch described to me that he became wealthy during the pandemic by investing in Dogecoin," Grove testified. "He described himself to me as 'The Dogecoin Whale.'"
Rinsch said in an earlier deposition, which was shown to jurors on Thursday, that his purchases of four Rolls-Royces were meant for the production of "White Horse," and not for personal use. Netflix wrote off the production as a loss in 2020.
"That would be fraud otherwise," Rinsch said in the deposition.
Izzy Englander's Millennium suffered losses in the popular index rebalance strategy in November.
Patrick McMullan/Getty Images; Jenny Chang-Rodriguez
Millennium had big losses in index rebalance strategies in November, sources tell Business Insider.
At one point, teams led by star PMs Glen Scheinberg and Pratik Madhvani were down hundreds of millions.
The firm was still positive in the month, but trailed rivals such as Citadel, Point72, and Balyasny.
It was a rough November for some of the biggest teams at a renowned hedge fund behemoth.
Izzy Englander's $81 billion Millennium suffered significant losses in its index-rebalance portfolios last month, several people told Business Insider.
Teams run by star money managers Glen Scheinberg and Pratik Madhvani were down hundreds of millions of dollars, these people said, though the final losses for the month are not clear, as the strategy had a small bounceback at the end of November. Millennium declined to comment.
The index rebalance pain was a big reason why the firm posted November returns below those of its peers such as Citadel, Point72, and Balyasny. The firm was up 0.5% last month and 8.3% on the year, Business Insider previously reported.
The index-rebalance strategy, in which portfolio managers bet on which stocks will be added to or removed from indexes such as the Russell 3000 or S&P 500 with the help of quantitative tools, has had a choppy year. Bloomberg reported earlier this year that these same teams lost close to $900 million in March.
It wasn't immediately clear what drove the losses at Millennium, but industry sources said many index-rebalance PMs across the industry were caught wrong-footed last month by the reconstitution of MSCI's indexes, one of the largest rebalancing events of the year.
The MSCI World Index is composed of the largest publicly traded companies around the globe, with Nvidia and other US tech giants making up significant portions of the nearly $90 trillion in assets benchmarked to it. The index whipsawed in November, falling almost 5% over about a week in the middle of the month before later recouping much of those losses.
On November 5, MSCI announced it would add 69 stocks — many tied to the AI boom — and remove another 64 from its Global Standard indexes, effective after the market close on November 24. Many of the names slated for inclusion sank during the rebalancing window, including the two largest additions, data-center darling CoreWeave and Netherlands-based AI-infrastructure firm Nebius. Meanwhile, several stocks set to be removed rallied.
The losses in AI stocks had PMs nervous leading up to Nvidia's November 19 earnings release, but Nvidia shocked the market with a strong quarter, and its stock popped, people familiar with the trade explained. Traders relaxed and lifted hedges just in time for the rally to fade, and AI stocks inexplicably plunged again on November 20.
"I think a lot of people were scratching their heads as to what was going on," one PM familiar with the trade said.
By the end of the month, however, the trend reversed, helping many index-rebalance PMs claw back some of their losses — a rebound that has continued into December, the people said.
Event-driven PMs who specialize in index changes try to forecast rebalances and their market impact, positioning to profit from the flows they expect passive funds to generate. The strategy, originally honed decades ago at investment banks, has become increasingly popular among major hedge funds and some proprietary trading firms over the last five years, contributing to crowding that can amplify volatility around these events.
Millennium has long been the biggest player in the trade. Puerto Rico-based Scheinberg, in particular, has been one of the firm's biggest traders. Along with Dubai-based Madhvani, the two senior investors oversee dozens of people across their two teams.
Scheinberg's earlier success was one of the drivers for Millennium's rivals to build out their own teams of index rebalance traders, though several firms cut staff after the strategy hit a dry spell in 2023.
Passive income investors scouring the share market for big dividend yields might come across one from Beach Energy Ltd (ASX: BPT) shares that might take their fancy.
Yesterday, this ASX 200 energy stock closed at $1.16 a share. At that price, Beach closed with a trailing dividend yield of 7.73%. If we include the full franking credits that Beach usually attaches to its dividends, investors have a grossed-up yield of over 11% staring them in the face.
It’s understandable that more than a few income investors might find that a little tempting. Particularly so, considering the yields available on blue chip shares like Commonwealth Bank of Australia (ASX: CBA), Coles Group Ltd (ASX: COL), Wesfarmers Ltd (ASX: WES), and Telstra Group Ltd (ASX: TLS) are all currently under 4%.
So today, let’s discuss whether passive income seekers should succumb to temptation and buy Beach Energy shares today for that big dividend.
Are Beach shares a buy for big passive income?
2025 has indeed been a bonanza when it comes to Beach Energy payouts. Shareholders received a 3-cent per share interim dividend back in March. The final dividend, worth 6 cents per share, follows in September.
That 9 cents per share in total dividend income for 2025 gives us that 7.73% yield at Beach’s last share price of $1.16.
However, as most dividend investors are aware, dividend yields always reflect the past, not the future. Just because Beach Energy paid out 9 cents per share in 2025 doesn’t mean investors should expect that kind of income in 2026, or beyond.
No ASX dividend share offers absolute income guarantees. But energy shares are more prone to passive income ebbs and flows than most other stocks on our market. That’s because the company’s profits, and thus ability to fund dividends, are highly dependent on something completely outside their control: global energy prices.
If the global oil price falls, for example, Beach’s profits take an immediate hit.
This is evident when we examine the level of passive income this stock has paid in prior years. 2025 was actually something of an outlier for Beach shareholders. Far from enjoying 9 cents per share annually, Beach’s owners collected 4 cents per share over 2024 and 2023. Between 2017 and 2022, the annual total came to just 2 cents per share.
If Beach reverted to paying out 4 cents per share over 2026, the shares would have a forward yield of 3.45% today. As it happens, many analysts are predicting that Beach will indeed be forced to slash its payouts next year. Whilst that is not a certainty, it does indicate that investors should not expect an automatic 7.76% passive income yield if they buy Beach shares today.
Should you invest $1,000 in Beach Energy Limited right now?
Before you buy Beach Energy Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Beach Energy Limited wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. 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.
