Author: openjargon

AMP Ltd (ASX: AMP) shares climbed to a fresh five-year high of $2.11 during Tuesday afternoon trade, extending one of the strongest rallies on the ASX this year.

The financial services company’s shares have soared 18% over the past five trading days following last week’s upbeat earnings update, taking their gain over the past 12 months to around 32%.

So, after a remarkable turnaround, should investors buy, hold, or sell?

A dramatic reversal

The latest rally marks a stunning recovery from mid-March, when AMP shares slumped to a one-year low of $1.14. Since then, the stock has surged roughly 80%.

It wasn’t always smooth sailing. AMP shares plunged about 26% in February after the company delivered a disappointing FY25 result that fell well short of market expectations.

Broader concerns over geopolitical tensions and Australia’s inflation outlook also weighed on financial stocks during the first half of the year.

Sentiment began to improve in April. AMP’s first-quarter update revealed Platforms’ net cash flows had surged 45%, while Superannuation & Investments delivered improved net cash outflows. Investors took the figures as a sign that the company’s turnaround strategy was gaining traction.

That optimism accelerated last week. AMP told the market it expects first-half underlying net profit of between $170 million and $180 million, well above the $131 million reported a year earlier. The stronger earnings outlook reinforced confidence that operational improvements are translating into better financial performance.

AMP has also benefited from growing expectations that the Reserve Bank of Australia will continue lowering interest rates, a backdrop that generally supports sentiment towards financial companies.

What do the experts think?

Broker sentiment remains broadly positive, although much of the recent optimism now appears reflected in the share price.

According to TradingView data, six of the ten analysts covering AMP have either a buy or strong buy recommendation. Three rate the shares as a hold, while one recommends selling.

However, the average price target now sits at $2.02 per AMP share, implying the stock is trading slightly above consensus fair value after its recent rally.

The most optimistic analyst sees AMP reaching $2.19 over the next 12 months, suggesting a further gain of around 5%.

Foolish Takeaway

AMP’s turnaround story has gathered considerable momentum over recent months.

Improving business flows, stronger profit expectations, and a more supportive interest rate outlook have all helped restore investor confidence after a difficult few years.

That said, after an 80% rally since March and fresh five-year highs, much of the good news may already be priced into AMP shares.

With broker price targets sitting close to current trading levels, existing shareholders may be inclined to hold, while prospective investors may want to wait for either another improvement in earnings or a more attractive entry point.

The post AMP shares have surged 80% since March. What’s next? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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• Here are the top 10 ASX 200 shares today

Motley Fool contributor Marc Van Dinther 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.

When it comes to high-yield investments on the ASX, investors often look to the big blue-chip miners. Although mining stocks tend to be more volatile than other blue-chip shares, especially the big four banks, in the income department, they can also be more generous if the timing is right. That’s certainly the case with South32 Ltd (ASX: S32) shares.

Most ASX investors gravitate towards BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), or Fortescue Ltd (ASX: FMG) if they are searching for a high-yielding investment in the mining space. But South32 isn’t far behind them. In fact, many long-term BHP shareholders also own a slice of South32, thanks to the two companies’ demerger about 10 years ago.

So today, let’s dive into South32 shares and analyse this dividend stock’s income potential.

The South32 share price is having a wonderful day so far this Tuesday. At the time of writing, the miner has jumped a healthy 4.78% and is sitting at $4.28 a share. This is probably thanks to the operational results we saw from the company yesterday.

South32 shares: What sort of dividend yield is on the table?

At this share price, South32 is trading on a trailing dividend yield of 2.21%. That is derived from the last two dividends South32 shares have doled out. The first of those was the final dividend from September 2025, worth 3.93 cents per share. The second was the interim dividend from this April, worth 5.52 cents per share. Both payments came with full franking credits attached, as is South32’s habit.

That 12-month total of 9.45 cents per share gives us that trailing yield of 2.21%.

As an ASX mining stock, South32’s dividends will always be more volatile than your average ASX blue chip. To illustrate, it was only back in 2022 when the miner paid out an annual total of 37 cents per share in dividends.

So income investors should keep this at the front of mind when considering any mining stock, including South32, for their dividend portfolios.

As it happens, many ASX experts aren’t exactly bullish on this company’s immediate future either. Earlier this month, my Fool colleague examined why brokers at Morgans had classed South32 shares as a hold, with a trimmed 12-month share price target of $4.50. Although that is comfortably above the miner’s current valuation, Morgans does warn that the recent sale of the company’s aluminium business leaves South32 as “a simpler and, in important respects, a better business, but also a smaller and less valuable one”.

That arguably implies that South32’s rather unimpressive 2.21% dividend yield won’t be subject to much in the way of upward pressure in the foreseeable future. But let’s see what happens.

The post Buying South32 shares? Here’s the dividend yield you’ll get right now appeared first on The Motley Fool Australia.

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• Why South32 shares edge higher on strong results and landmark deal
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• Here are the top 10 ASX 200 shares today

Motley Fool contributor Sebastian Bowen 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX All Ords tech stock Acusensus Ltd (ASX: ACE) is pushing higher today.

Acusensus shares closed yesterday trading for $1.125. At the time of writing, shares are swapping hands for $1.13 apiece, up 0.4%.

For some context, the All Ordinaries Index (ASX: XAO) is down 0.2% at this same time.

Taking a step back, while Acusensus shares remain up 21% over 12 months, the ASX All Ords tech stock has slumped 33.8% in 2026.

And according to Ellerston Capital Australian equities portfolio manager James Barker, that sees this ASX share trading in bargain territory (courtesy of The Australian Financial Review).

Here’s why.

Why this ASX All Ords tech stock is positioned for growth

Asked which stock in his fund is the most undervalued by the market, Barker pointed to Acusensus.

He noted:

Acusensus is a founder-led Australian company whose artificial intelligence camera technology catches drivers using their phones, speeding or not wearing seatbelts, with long-dated government contracts to run road safety enforcement programs across Australia, New Zealand, the US and the UK.

Spurring his bullish outlook, he said that the ASX All Ords tech stock has the potential for significant market growth in the United States.

According to Barker:

It operates in four Australian states and or territories, runs New Zealand’s nationwide mobile speed camera program, and has started to get traction in the large US market – a significant growth opportunity.

Revenue should grow around 40% in FY26, with government-backed contracted revenue providing strong visibility for a company this size. Success in the US would step-change the business, and we do not believe this is factored into the price.

What’s the latest from Acusensus?

Acusensus reported its half-year results (H1 FY 2026) on 26 February.

Highlights for the six months to 31 December included a 40% year-on-year revenue boost to $40.3 million. And adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 9% to $3.9 million.

On the bottom line, the ASX All Ords tech stock reported a gross profit of $16.4 million, up 21% from H1 FY 2025.

Turning to the balance sheet, as at 31 December, the company held cash (including term deposits) of $41 million.

Commenting on the results on the day, Acusensus co-founder and managing director Alexander Jannink said, “The first half of this financial year has been a remarkable period for Acusensus.”

He noted:

We’ve not only delivered record revenue growth, but importantly, we have expanded our reach and are making significant strides in our mission to reduce road trauma and make roads safer globally.

As for the growth opportunities in the US, Jannink said, “A personal highlight for me was securing our first major, long-term contract in the United States with the Connecticut Department of Transportation.”

The post Why this undervalued ASX All Ords tech stock is tipped for ‘significant growth’ appeared first on The Motley Fool Australia.

More reading

• AMP shares have surged 80% since March. What’s next?
• Buying South32 shares? Here’s the dividend yield you’ll get right now
• Up 29% since May, can Wesfarmers shares keep surging higher?
• Down 61%: Can this ASX defence stock rebound, or is it time to sell up?
• Ampol shares rallied 40% to hit fresh 2-year high. Buy, sell or hold?

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 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.

Wesfarmers Ltd (ASX: WES) shares have been on a tear since plumbing a one-year closing low of $71.26 on 18 May.

During the Tuesday lunch hour today, shares in the S&P/ASX 200 Index (ASX: XJO) conglomerate – whose retail subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks, and Priceline – are trading for $91.73 apiece.

That sees the Wesfarmers share price up an impressive 28.7% in just two months.

Taking a step back, the ASX 200 stock is up 12.2% in 2026, well ahead of the 0.4% year-to-date gains posted by the benchmark index.

And that’s not including the $1.02 per share fully-franked dividend the company paid to eligible stockholders on 31 March. Wesfarmers stock trades on a 2.8% fully-franked trailing dividend yield.

Looking ahead, however, Alto Capital’s Tony Locantro believes the company may struggle to deliver further outperformance over the coming months (courtesy of The Bull).

Wesfarmers shares: Buy, hold, or sell?

“Market leading businesses include retailers Bunnings, Kmart Group and Officeworks,” Locantro noted.

As for Wesfarmers’ recent financial performance, he said:

The company delivered a strong first half result in full year 2026, reporting net profit after tax of $1.603 billion, up 9.3%, reflecting continued earnings growth across its retail portfolio amid disciplined operational execution.

But following the strong gains posted by Wesfarmers shares, Locantro issued a sell recommendation on the stock. He concluded:

Despite these strong fundamentals, much of the company’s quality and long-term growth outlook appear fully reflected in its premium valuation. While Wesfarmers remains an outstanding long-term business, future upside may be constrained by elevated market expectations.

Given the strong share price performance and demanding valuation, the current risk-reward balance supports taking profits at current levels.

What’s the latest from the ASX 200 stock?

Wesfarmers reported its half-year results (H1 FY 2026) on 19 February.

The 9.3% year-on-year profit boost Locantro mentioned above was driven by a 3.1% increase in half-year revenue to $24.21 billion.

And earnings before interest and tax (EBIT) leapt by 8.4% to $2.49 billion.

“Wesfarmers’ increase in profit was supported by strong earnings contributions from our largest divisions – Bunnings, Kmart Group and WesCEF,” Wesfarmers managing director Rob Scott said of the results.

Addressing the challenging market conditions the company faced in the six months to 31 December, Scott added:

Despite a modest improvement in consumer demand, higher costs continued to weigh on many households and businesses, and residential construction activity remained subdued. The divisions performed well, driving productivity to mitigate cost pressures and keep prices low for customers.

Amid high market expectations, Wesfarmers shares closed down 5.6% on the day of the results release.

The post Up 29% since May, can Wesfarmers shares keep surging higher? appeared first on The Motley Fool Australia.

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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 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.

Shares in ASX defence stock, Austal Ltd (ASX: ASB), have fallen further into the red in Tuesday trading. 

At the time of writing, the shares are down another 0.5% and are trading at $3.38 each.

The drop means the shares have now fallen by more than 50% year to date and are also around 45% lower than this time last year.

What does Austal do?

Austal is an Australian-based global shipbuilding company specialising in the design, construction, and support of defence and commercial vessels.

These include naval vessels, defence surface warfare combatants, and law enforcement patrol boats.

The company also installs and maintains vessel command and control systems, communication and radar technology, and information management systems.

What happened to the ASX defence stock?

Its share price spiked to an all-time high of $8.76 in January as tailwinds pushed ASX defence sector stocks higher overall.

The company also won a few new contracts in late December, including a contract extension worth more than $135 million to build two new Evolved Cape-class Patrol Boats for the Australian Border Force, bringing the total contracted to 14 vessels. 

Austal was also awarded a $1.029 billion design and construct contract to build 18 Landing Craft Medium (LCM) vessels for the Australian Army under the Commonwealth’s Strategic Shipbuilding Agreement.

In January, US President Donald Trump also said the 2027 US defence budget should be US$1.5 trillion, well above the US$901 million approved so far. Other countries also began bolstering their defence spending.

In February, Austal posted its first-half FY26 results, revealing a 34.4% year-on-year increase in revenue. Its EBIT also climbed 41.3%, and net profit climbed 21.4%. But it also cut its earnings guidance for FY26, citing an accounting issue. 

The news spooked investors and triggered a sell-off that Austal shares have struggled to recover from.

Surprisingly, even news of the increase of conflict in the Middle East didn’t do enough to convince investors to buy back in.

The shares are now down 61% from that January peak.

Are Austal shares a buy, sell, or hold now?

If broker forecasts are anything to go by, it’s time to load up on Austal shares while they’re still cheap.

TradingView data shows that there are only three analyst ratings on the ASX defence stock. One is a hold, and the other two are a strong buy.

They all agree on some element of upside ahead, although the range is pretty significant.

The minimum $4.10 target price implies a potential 20% upside.

The average $6.14 target price implies a potential 80% upside, at the time of writing.

And the maximum $7.71 target price implies that the shares could jump 126% higher over the next 12 months.

The post Down 61%: Can this ASX defence stock rebound, or is it time to sell up? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.

Ampol Ltd (ASX: ALD) shares have climbed around another 0.5% to a fresh two-year high of $38.08 in Tuesday trade.

At one point this morning, the petroleum company’s shares were trading as high as $38.33.

Today’s increase means the shares are now up 19% for the year to date, and have rallied 40% higher over the past 12 months.

What has pushed Ampol shares to a multi-year high?

Ampol’s shares have been driven higher by a combination of volatile global oil supply and company growth, including improved production and profit.

The company is Australia’s largest transport energy distributor and retailer, with more than 1,800 Ampol-branded service stations across the country. 

Unsurprisingly, its shares have rocketed higher on the back of conflict in the Middle East and concerns about global oil supply.

Ampol shares have jumped 37% higher since the war between the US and Iran ramped up in late February.

The shares suffered a temporary lull towards the back end of June when it looked like the two nations had reached a peace deal. Even so, the ceasefire was unstable, and even though the Strait of Hormuz partially reopened, supply continued to be very constrained and unpredictable. 

But Ampol shares rocketed higher again this morning as the peace talks fell apart in early July and the region descended into war again.

According to Trading Economics, the price of WTI crude oil has also surged higher this month, and is trading over the US$83 per barrel mark at the time of writing. 

There is still some way to go before the price returns to the US$113 per barrel level seen in April, but it is still significantly higher than the US$60 per barrel levels seen earlier this year.

Prices for Brent oil, gasoline, heating oil, and Ethanol have also jumped higher over the past month.

It’s not only oil supply and prices supporting this year’s share price rise.

Ampol has also posted a few updates that have gathered investor attention. In June, Ampol received the green light, with conditions, from the Australian Competition and Consumer Commission (ACCC) for a proposed acquisition of fuel and convenience store operator EG Australia. 

The company previously confirmed a 10% increase in refinery production, higher refiner margins, and increased production in its Q1 FY26 trading update.

What are brokers tipping for Ampol shares next?

It looks like we could see some more upside for Ampol shares over the next 12 months.

Market Index data shows that the majority of brokers have a buy rating on the shares. The $38.75 target price currently implies a potential 2% upside.

TradingView data shows something similar. Out of 10 analysts, eight have a buy or strong buy rating on the stock. One more rates Ampol shares as a hold and one as a sell.

The average $38.29 target price implies a potential 1% upside over the next 12 months, at the time of writing. Whereas, the maximum $46.50 target price implies the shares have the potential to surge another 23%.

The post Ampol shares rallied 40% to hit fresh 2-year high. Buy, sell or hold? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.

Yancoal Australia Ltd (ASX: YAL) shares are charging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) coal stock closed yesterday trading for $5.68. At the time of writing, shares are changing hands for $5.96 apiece, up 4.9%.

For some context, the ASX 200 is down 0.4% at this same time.

Yancoal shares have been strong performers in 2026, up 20.2% since market close on 31 December. That compares favourably to the more modest 0.5% gain posted by the ASX 200 over this same period.

And that’s not including the 12.2 cents per share fully-franked dividend Yancoal paid eligible stockholders on 15 April.

The ASX 200 coal stock trades on a fully-franked trailing dividend yield of 3.1%.

But following these strong share price gains, is the coal miner still a buy today?

Yancoal shares: Buy, hold, or sell?

Investor Pulse’s Mark Elzayed recently analysed the outlook for the resurgent coal miner (courtesy of The Bull).

“Yancoal is balancing strong fundamentals against a near term overhang,” he said.

Elzayed elaborated:

In April, YAL announced it would acquire 80% of the Kestrel metallurgical coal mine in the Bowen Basin for US$2.4 billion. The acquisition is accretive over the long term, but adds leverage.

Summarising his hold recommendation on Yancoal shares, Elzayed concluded:

Diesel cost inflation threatens to push 2026 unit costs toward the top end of its guidance range. Consensus targets of about $7.02 on July 15 imply upside, but integration and coal price risks argue for holding the stock rather than adding.

What’s the latest from the ASX 200 coal stock?

Yancoal reported its second-quarter (Q2 2026) results after market close on Monday.

Highlights for the three months to 30 June included a 20% quarter on quarter lift in attributable saleable coal production to 10.8 million tonnes. That presents a new quarterly production record.

The Yancoal share price also looks to be getting a lift today, with the company reporting that the average prices it received for most of its seaborne thermal coal increased by 14% to 19% over the quarter.

As for the rising diesel costs that Elzayed mentioned above, Yancoal noted:

While diesel price pressure has eased compared to early 2Q, some price uncertainty remains. We are still incurring higher prices, but the outlook for the overall impact on our 2026 operating costs has moderated.

Commenting on the company’s recent US$2.4 billion acquisition, Yancoal CEO Sharif Burra said:

In April, we announced the acquisition of an 80% interest in the Kestrel Coal Mine. Adding a large, long-life asset that produces hard-coking coal at strong margins is a compelling step forward in Yancoal’s growth strategy.

The post Up 20%, are Yancoal shares still a good buy right now? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

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 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.

DroneShield Ltd (ASX: DRO) shares are up around 0.5% in Tuesday morning trade, at $2.17 a piece.

The increase is good news for investors, but it’s been a volatile ride for the ASX defence stock this year.

DroneShield shares have fluctuated anywhere between $4.74 in January and a low of $2.14 late last week. At the current trading price, the stock is down 35% year to date and 54% from its January 2026 peak.

The shares are also now 41% below trading levels this time last year.

What happened to DroneShield shares in the first half of 2026?

There has been a turnaround in sentiment around DroneShield shares over the past few months.

After a strong start to the year, supported by higher global defence budgets and geopolitical volatility following conflict in the Middle East, the share price started falling. Investors flocked to defence-related shares when governments around the world hiked their defence budgets and geopolitical risk worsened. 

After a peak in late-March, it looks like investors started turning their back on the stock and a sell-off accelerated into May and again in June.

A combination of recent governance and regulatory issues and the cooling of conflict in the Middle East dragged DroneShield shares down.

And surprisingly, reignited conflict in the region hasn’t done anything to support investor interest in the defence technology company.

It looks like, now, investors are concerned that the company’s future growth may not be large enough to justify its share price. 

Is the ASX defence stock a buy, sell, or hold?

I think sentiment around DroneShield shares is finally cooling. I think we could see some more downside over the next few weeks ahead of the company’s half-year FY26 financial results announcement in mid August.

It looks like analysts are sharply divided about DroneShield shares, too.

TradingView data shows that out of four analysts, two have a strong buy rating, and two have a sell or strong sell rating.

The average $3.22 target price still implies a potential 48% upside at the time of writing. The maximum $4.80 target price implies that DroneShield shares could leap another 120%. 

Meanwhile, some are more bearish, tipping the shares to fall 6% from the current trading price, to $2.05 a piece. 

Canaccord Genuity is one analyst with a bullish view on the shares. It renewed its buy rating on Droneshield shares earlier this month, with a 12-month price target of $3.75.

The post Down 41%: Can DroneShield shares bounce back, or is the rally finally over? appeared first on The Motley Fool Australia.

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• DroneShield shares crash another 7% today: Is this the end for the once-soaring defence stock?

Motley Fool contributor Samantha Menzies 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 DroneShield. 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.

Earning a passive income off your superannuation balance is easier than you’d think.

You just need to know how to invest it, and understand what level of passive income to expect.

The benefit of investing your superannuation for a passive income in retirement is that it comes with the added benefit of low tax rates and long-term compounding.

The only downside is that you can’t access it until you reach retirement age.

But how much do you actually need in your super to be able to earn the passive income you want in retirement?

Let’s break it down, using a monthly $7,000 passive income as a guide.

How much do I need in my superannuation to get a passive income of $7,000 every month?

There’s a simple calculation you can use. First you’d need to work out what your monthly passive income totals over the year, then divide that annual passive income figure by the dividend yield of your portfolio.

For example, $7,000 x 12 = $84,000. Divide that by a 3% yielding portfolio and you’ll need a $2.8 million portfolio in order to earn $84,000 per year (or $7,000 per month).

Of course, a $2.8 million superannuation balance isn’t achievable for many Australians. 

But the good news is that, as your dividend yield increases, the superannuation balance required to earn the same passive income goes down.

For example, a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of passive income. 

How much do I need in my superannuation if my portfolio yields 4%?

To earn $84,000 per year off a 4% yielding portfolio, you’d need to have a balance of around $2.1 million.

ASX shares that could fit the bill are things like Westpac Banking Corporation Ltd (ASX: WBC), ANZ GRoup Holdings Ltd (ASX: ANZ), or Transurban Group (ASX: TCL). These all yield 4% or a little more.

• How much do I need in my superannuation if my portfolio yields 5%?

To earn the same $84,000 per year off a 5% yielding portfolio, you’d need to have a superannuation balance closer to $1.68 million.

Shares that yield 5% or just over are things like Woodside Energy Group Ltd (ASX: WDS) Universal Store Holdings Ltd (ASX: UNI) and AGL Energy Ltd (ASX: AGL).

What about for a 6% yielding portfolio?

A superannuation balance around $1.4 million can earn the same passive income on a 6% yielding portfolio.

Harvey Norman Holdings Ltd (ASX: HVN), Fortescue Ltd (ASX: FMG) and Dexus Industria REIT (ASX: DXI) are good examples of ASX shares that yield around 6%.

And for a portfolio that yields 7% or 8%, what do I need then?

Higher yielding shares mean investors can earn the same passive income off a much smaller superannuation balance, but they do come with added risk.

A $1.2 million or $1.05 million portfolio yielding 7% or 8% respectively, could earn $84,000 in passive income.

Higher yielding options are ASX shares like the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX), GQG Partners Inc (ASX: GQG) or Centuria Office REIT (ASX: COF).

The post How much do I need in my superannuation to earn $7k per month in passive income? appeared first on The Motley Fool Australia.

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• 3 ASX dividend shares to buy with 5%+ yields
• Are Westpac shares a top buy this week?

Motley Fool contributor Samantha Menzies 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 Transurban Group. The Motley Fool Australia has positions in and has recommended Harvey Norman and Transurban Group. The Motley Fool Australia has recommended Gqg Partners and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Brokers can’t agree on how much AIC Mines Ltd (ASX: A1M) shares will go up, but two of them agree the company is currently undervalued.

New production guidance impressing analysts

Both Bell Potter and Barrenjoey have published new research reports on AIC in the past few days, after the company announced guidance for the current year and a three-year growth outlook for its Eloise and Jericho copper mines.

The company said it was “an exciting time” as it transitioned from a small-scale, single mine to a 1.5 million tonne per annum dual mine operation producing 25,000 tonnes per annum in copper concentrate,

For the current year, AIC said it expected to produce 17,500-18,000 tonnes of copper, weighted to the second half of the year.

Guidance for the following year was for production of 20,000-22,000 tonnes, increasing to 25,000-27,000 tonnes in FY29.

The company added:

The Stage 2 Eloise plant expansion to 1.5Mtpa is now targeted to be completed in the December 2028 Quarter, approximately 2 years earlier than previously planned. This expansion, along with accelerated underground development at Jericho, is expected to increase copper production by a further 25% to over 25,000tpa in concentrate from FY29. No additional funding is required for the Stage 2 Eloise plant expansion or accelerated underground development at Jericho. However, the US$40 million Trafigura Prepayment Facility for the Eloise Expansion Project (currently drawn to US$30 million) has recently been expanded by US$10 million to a total US$50 million to ensure cost overruns or production delays can be managed, if required.

Bell Potter increased its price target on AIC shares following the announcement, boosting it from 90 cents to 95 cents.

The Bell Potter analysts said the accelerated stage 2 expansion was a positive, and had not previously been incorporated into their modelling.

They added that the company, “has a strong track record of delivering to guidance and a well-credentialed management team”.

Second broker even more positive

Barrenjoey has an even more bullish price target of $1.20 on AIC shares, compared to 64.75 cents currently.

They said regarding the announcement:

In our view the market should like the guidance and plans to grow further at reasonable costs/capex and an upsized debt facility. In the short term, FY27 is guided to be a more productive/cash generative year than we expected. We lift our FY27 production forecast by 16% to 17.5kt, at the lower end of A1M’s guidance, allowing for some execution risk. This drives an uplift in our FY27 EBITDA by 9% to $181m and an increase in free cash flow by about A$40m to now be $11m (from -$33m before), which means a better balance sheet position.

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