Author: openjargon

Commonwealth Bank of Australia (ASX: CBA) shares are back in the green on Wednesday after the banking giant announced a deal to settle a long-running class action.

At the time of writing, the CBA share price is up 0.92% to $158.47.

It has been a much tougher month for shareholders, with the stock down around 8% over that period. CBA shares are also roughly flat since the start of 2026 and remain around 15% below their 52-week high of $185.59.

Still, investors appear comfortable with today’s announcement, with shares moving higher in morning trade.

Let’s take a closer look at the release.

CBA reaches $249 million settlement

CBA said this morning that it has reached an in-principle agreement to settle a class action involving the bank, Colonial First State Investments and Avanteos Investments.

The proposed settlement is worth $249 million and still needs to be finalised and approved by the Federal Court of Australia.

The proceedings were launched in 2018 by Slater and Gordon on behalf of class members.

They relate to certain cash and deposit options issued by CBA and offered through Colonial First State superannuation and wrap products between November 2008 and September 2021.

However, CBA, Colonial First State Investments and Avanteos Investments deny the allegations and have made no admission of liability or wrongdoing.

If the court approves the deal, eligible class members could receive a share of the settlement after legal fees and other costs are deducted.

Why are CBA shares higher?

A $249 million settlement does sound sizeable, but there’s a key detail in the above announcement.

CBA said the proposed settlement is already covered by a provision recognised in an earlier period. 

That means investors aren’t looking at a new $249 million hit to current earnings, which likely helps explain why the share price has moved higher today.

The announcement also comes shortly after CBA reported another strong full-year result.

Cash net profit after tax rose 7% to $10.98 billion in FY26, while statutory profit increased 8% to $10.91 billion.

The bank also lifted its final dividend to $2.70 per share, taking the fully-franked full-year payout to $5.05 per share.

What next for CBA shares?

Today’s rise is welcome for shareholders, but CBA shares still have ground to recover after falling around 8% this month.

The bank is also trading much closer to its 52-week low of $146.98 than the record levels it reached earlier this year.

Even after that pullback, CBA shares are not exactly cheap, trading on a P/E ratio of around 24. That still leaves the bank at a fairly high valuation compared with the other major banks.

The focus now is on whether CBA shares can keep moving higher after a difficult few weeks.

The post CBA shares bounce after settling long-running class action appeared first on The Motley Fool Australia.

More reading

• Will CBA shares ever get back to the top of the ASX 200?
• Buy, hold, sell: DigiCo Infrastructure REIT, CBA, Telstra shares
• How many CBA shares do I need to buy for $8,000 of passive income?
• Buy, hold, sell: Pro Medicus, Fortescue, CBA shares
• Are Westpac shares a buy at their new 52-week low?

Motley Fool contributor Aaron Teboneras 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.

ASX retail stock Lovisa Holdings Ltd (ASX: LOV) is rocketing 19% to $29.22 on Wednesday morning, taking its monthly gain to 35%.

Despite the surge, the jewellery retailer remains 22% lower over the past 12 months, while the S&P/ASX 200 Index (ASX: XJO) has gained around 2%.

So, what’s driving today’s dramatic rebound?

Lovisa delivers another strong year

Investors are responding to a solid full-year result, with Lovisa delivering growth across its key financial metrics. Total revenue increased 17.6% to $938.8 million, while comparable-store sales rose 2.0%.

The ASX retail stock also lifted earnings before interest and tax (EBIT) by 14.1% to $158.2 million. Net profit after tax climbed 10.7% to $95.6 million.

Lovisa generated $294.5 million in operating cash flow, up 21.0%, demonstrating the company’s ability to fund its expansion while continuing to generate substantial cash.

Shareholders also received a boost, with the full-year dividend increasing 11.7% to 86 cents per share.

Global expansion remains a key growth driver

Lovisa continued its aggressive international expansion during the year, opening 160 new stores and finishing with 1,136 stores across more than 50 markets. Europe was the standout region for store growth, with 76 new locations added, including 34 in the UK and 20 in Germany.

However, management isn’t simply opening stores for the sake of growth. Lovisa closed 43 underperforming locations and relocated another 12, highlighting its focus on improving store profitability and optimising its global network.

The ASX retail stock also continued investing in technology, its supply chain, and global retail operations. Importantly, Lovisa said these investments were fully funded by existing cash flows.

What did Lovisa management say?

Lovisa Global Chief Executive Officer John Cheston said:

Lovisa has once again been able to deliver strong global sales and profit growth, with the highlights being continued growth in the Americas and Europe and another exceptional Gross Margin performance.

What’s next for Lovisa shares?

The early signs from FY27 are encouraging. Lovisa reported total sales growth of 16.4% on a constant-currency basis during the first eight weeks, while comparable-store sales increased 3.0%.

The retailer plans to continue expanding its physical and digital presence, supported by its strong balance sheet and steady cash generation.

After a 22% decline over the past year, today’s 19% rally of the ASX retail stock suggests investors are reassessing Lovisa’s growth prospects.

Whether the recovery can continue, however, will depend on the company maintaining strong comparable-store growth while successfully scaling its rapidly expanding international footprint.

The post Why is this $3 billion ASX retail stock rocketing 19% today? appeared first on The Motley Fool Australia.

More reading

• Lovisa Holdings FY26 earnings: Profit and sales keep growing
• A rare buying opportunity in 1 of Australia’s top shares?
• How much is needed in superannuation to target a $5,500 monthly passive income?
• 7 ASX 200 shares downgraded by the experts this week
• 2 top ASX shares to buy and hold for the next decade

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 positions in and has recommended Lovisa. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

WiseTech Global Ltd (ASX: WTC) shares have crashed into the red in Wednesday morning trade.

At the time of writing, the shares are down around 8.5% to $41.73 per share.

This means the shares are now down 39% for the year to date and are now 64% lower than trading levels seen this time last year.

Today’s decline follows the company’s FY26 results announcement, which it posted to the ASX ahead of the market open this morning.

It looks like the announcement spooked investors, with many rushing for the exit this morning.

What did WiseTech report this morning?

WiseTech reported that it has raised its annual earnings and flagged growth for FY27 in line with analysts’ expectations.

The company reported a 46% increase in EBITDA to US$558.4 million for the 12 months through to the 30th of June. The result was in line with the company’s $550 million to $585 million guidance range but short of market forecasts of $569.5 million.

But WiseTech’s EBITDA beat the average analyst forecast of $599.9 million on an underlying basis. WiseTech reported a 56% jump in underlying EBITDA to $644.5 million at a 42% margin.

The company’s total revenue increased by 79% compared to the prior year, and its underlying NPAT increased by 29% due to organic growth from its e2open acquisition.

WiseTech said its cost-saving programs also delivered around US$115 million in annualised savings, including efficiencies from adopting AI in operations.

The company also raised its final dividend to 88 US cents per share, up from 77 US cents per share.

Looking ahead, WiseTech is guiding total revenue growth between 6% and 10% (US$1.48 billion to US$1.54 billion) for FY27, and underlying EBITDA growth between 12% and 21%, with a margin uplift to 49% to 51%. 

Where to now for WiseTech shares?

At the time of writing, the outlook for WiseTech shares is unchanged, although I expect some market experts could revise their outlook in the coming days following today’s results.

At the time of writing, brokers and analysts are still very bullish on where we’ll see the share price travel from here.

Market Index shows that the majority of brokers (three out of four) are very bullish on the ASX tech stock and hold a strong buy rating. The average $54.71 target price implies a potential 27% upside over the next 12 months, at the time of writing.

TradingView data shows something similar. Of 12 analysts, 10 have a buy/strong buy rating, and the other two rate the shares as a hold.

The $60.63 average target price implies a potential 46% upside over the next 12 months, at the time of writing.

The post Why are WiseTech shares crashing 8.5% today? appeared first on The Motley Fool Australia.

More reading

• WiseTech Global share price: FY26 earnings soar 79% on e2open acquisition
• 5 things to watch on the ASX 200 on Wednesday
• Why WiseTech shares are pushing higher again on Tuesday
• Up 52% from its low! Has the WiseTech share price finally bottomed out?
• 3 ASX growth shares brokers say could beat the market

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 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.

Megaport Ltd (ASX: MP1) shares have taken a sharp hit, falling 21% over the past five trading days. That makes the recent sell-off hard to ignore.

Yet the bigger picture looks very different: Megaport shares remain up around 54% year to date and 30% over the past 12 months.

So, is this pullback an opportunity for investors to buy the dip?

Turning into an AI infrastructure play

Megaport’s investment case is increasingly tied to its role in the booming artificial intelligence (AI) infrastructure market.

Unlike traditional data centre operators, Megaport offers exposure to AI-driven demand through an asset-light model. Its connectivity services can have shorter implementation lead times and require significantly less capital expenditure, making the company an interesting way to participate in global AI infrastructure growth.

The acquisition of Latitude.sh has broadened that opportunity. Latitude.sh is a compute-as-a-service platform providing high-performance CPU and GPU infrastructure. The deal gave Megaport a new way to serve customers who need not only connectivity but also the computing power underpinning AI, cloud-native applications, and data-heavy workloads.

That means Megaport is no longer simply selling flexible digital connections. It is moving towards a broader platform that combines compute, network, and storage. In an AI boom, that’s an increasingly attractive proposition.

Big contracts boosted the bull case

The share price strength was also supported by several major contract wins following the Latitude.sh acquisition.

In April, Megaport announced that Latitude.sh had secured a 36-month compute and storage contract worth approximately A$35.4 million. The company also reported strong growth in Compute’s annualised recurring revenue (ARR), excluding that contract, since the acquisition.

Momentum accelerated in May, when Megaport announced three major GPU, CPU, and network and storage contracts with two US-based technology customers running AI applications and inference workloads.

The contracts had a combined total contract value of approximately A$254 million and were expected to contribute about A$90.6 million in ARR once fully deployed.

Why did Megaport shares fall?

The enthusiasm cooled following the release of Megaport’s FY 2026 results. The company delivered full-year revenue of $312 million, up 37% from FY 2025, while EBITDA increased 24% to $77 million.

However, statutory net loss widened dramatically, from $300,000 in FY 2025 to $39 million in FY 2026.

That bottom-line deterioration clearly caught investors’ attention and appears to have prompted some profit-taking after the stock’s substantial gains.

Are Megaport shares a buy?

Analysts remain broadly bullish. According to TradingView data, 14 of 16 analysts covering the ASX technology share currently have a buy or strong buy rating. The average price target of $26.02 implies roughly 49% upside from the current $17.52 share price.

The most bullish target is $33.52, representing potential upside of about 91%.

UBS was also positive on the results, saying the net outcome was “firmly in the positive”. The broker has raised its price target from $24.20 to $26.40 and is forecasting EBITDA of $624 million in FY 2028.

The post Megaport shares just plunged 20%. Is this a buying opportunity? appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I’d buy for their global growth potential
• Two ASX data centre stocks rated a buy
• Top brokers name 3 ASX shares to buy next week
• Why Megaport, Lendlease and JB Hi-Fi shares all crashed 14% to 15% this week
• 8 ASX shares just upgraded by the experts

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 positions in and has recommended Megaport. 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.

The Ingenia Communities Ltd (ASX: INA) share price is in focus today after announcing a proposal to acquire Peet Ltd (ASX: PPC), one of Australia’s leading master-planned community developers. The deal positions Ingenia as a major national living sector platform and is set to accelerate its five-year growth strategy.

What did Ingenia Communities report?

• Agreement to acquire 100% of Peet Limited via a scheme of arrangement
• Offer comprises $0.68 cash and 0.3367 Ingenia stapled securities per Peet share
• Implied offer value of $2.12 per Peet share—a 17.1% premium to Peet’s last close
• Flagstone City project to form a $615 million joint venture with a capital partner, aiding transaction funding
• Expected low double-digit EPS accretion for Ingenia securityholders
• Peet board unanimously recommends the offer, with support from its largest shareholder

What else do investors need to know?

This acquisition will extend Ingenia’s presence in the living sector and significantly boost its development pipeline, including 5,000–7,000 new land lease community lots with a potential end value of about $1 billion. The expanded scale will create a national footprint, adding project depth in key population growth corridors.

Ingenia will benefit from complementary capabilities and potential cost synergies of around $10 million per year. As part of the deal, a joint venture has been signed for the Flagstone City project, generating cash proceeds that will strengthen Ingenia’s balance sheet post-completion. Peet shareholders will also be entitled to receive Peet’s FY26 final dividend and, possibly, an interim dividend in FY27.

What did Ingenia Communities management say?

Ingenia Communities CEO John Carfi commented:

The Transaction delivers on our core strategic goals, increasing our scale and exposure to land lease development, creating a national platform, accelerating and securing growth beyond our 5-Year Plan, as well as delivering a logical extension to our living strategy that responds to the evolution of the residential sector.

What’s next for Ingenia Communities?

The proposed deal is subject to customary conditions including court and shareholder approval, regulatory clearances, and completion of the Flagstone JV. If approved, Ingenia expects to accelerate its strategic plan, enhance long-term growth prospects, and increase recurring rental income. A combined pipeline of about 35,000 residential lots and a robust capital position underline Ingenia’s strengthened platform for the next decade.

Key dates ahead include the first court hearing in late October 2026, the scheme meeting in early December, and potential implementation by late December 2026.

Ingenia Communities share price snapshot

Over the past 12 months, Ingenia Communities shares have declined 31%, trailing the All Ordinaries Index (ASX: XAO).

View Original Announcement

The post Ingenia Communities proposes to acquire Peet, boosting growth appeared first on The Motley Fool Australia.

More reading

• Ingenia Communities posts strong FY26 with profit up 45% and guidance exceeded
• Peet FY26 earnings: Profit and dividend surge on record sales

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The GR Engineering Services Ltd (ASX: GNG) share price is in focus today after the company announced the successful completion of a $100 million institutional placement and new share purchase plan, raising capital to support its pipeline of contracted and near-term projects.

What did GR Engineering Services report?

• Completed a $100 million institutional placement at $6.10 per new share
• Placement price is a 3.3% discount to the last traded share price
• Strong support received from both existing and new institutional investors
• Share Purchase Plan (SPP) for eligible shareholders to raise up to $10 million, also at $6.10 per share
• Use of funds to strengthen the balance sheet and support ongoing projects

What else do investors need to know?

The new shares under the placement will be issued using the company’s existing placement capacity under ASX Listing Rule 7.1. Settlement is expected on 1 September 2026, with the shares to be allotted on 2 September 2026.

The SPP offers eligible Australian and New Zealand shareholders the chance to subscribe for up to $30,000 worth of new shares each, free of brokerage or transaction costs. The SPP opens on 2 September 2026 and closes on 23 September 2026, with shares expected to be allotted on 30 September 2026.

What did GR Engineering Services management say?

Managing Director Tony Patrizi commented:

We are pleased with the strong support we received for the Placement from our existing and new institutional shareholders. We thank existing shareholders for their continued support and welcome our new investors. This funding will strengthen the balance sheet and ensure that the Group is well-positioned to deliver on the contracted and near-term pipeline of work.

What’s next for GR Engineering Services?

The company intends to use the new funds to reinforce its financial position and enhance flexibility as it delivers current contracts and pursues growth opportunities. Management signalled that GR Engineering Services will remain focused on executing its project pipeline and exploring value-accretive opportunities for future growth.

Further details about the placement, SPP, and intended use of funds can be found in the announcements released on 24 August 2026.

GR Engineering Services share price snapshot

Over the past 12 months, GR Engineering Services shares have risen 65%, outperforming the All Ordinaries Index (ASX: XAO).

View Original Announcement

The post GR Engineering Services completes $100 million placement and share purchase plan appeared first on The Motley Fool Australia.

More reading

• GR Engineering Services posts record FY26 result and lifts dividend
• GR Engineering Services lands $275m Yitirrti project contract

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Shares in Hipages Group Holdings Ltd (ASX: HPG) have risen sharply in recent days following the company’s delivery of a solid set of full-year results, but analysts at Shaw and Partners believe the stock has much further to go.

The broker has reiterated its buy recommendation on the stock and has a very bullish share price target on the company, which I’ll get to shortly.

First, let’s look at the company’s results.

Solid profit result

Hipages earlier this week reported revenue of $90.6 million, up 9%, while net profit of $15 million was up 528%.

Chief Executive Officer Roby Sharon-Zipser said of the result:

FY26 was another year of strong execution for hipages Group, as we continued to invest in our multi-product platform, adding new functionality, AI integration and expanding hipages for business, which drove strong customer engagement and a further 9% increase in ARPU. We also expanded into Insurance with the acquisition of a majority stake in VIZ Insurance. This expands our total addressable market and adds a complementary insurance offering to our business platform. Our strong free cash generation and balance sheet enabled us to commence an on-market share buy-back of up to 10% of issued share capital during the year, with our shares trading well below intrinsic value, while retaining flexibility to invest in future organic and inorganic growth opportunities.

On the outlook for FY27, the company said embedding AI across its operations would be a focus, while it remained open to further M&A.

Hipages is guiding to revenue growth of 9% to 11% and free cash flow of $11 to $13 million, up from $9.4 million in FY26.

Shares looking cheap according to broker

Shaw and Partners said in a note to clients that Hipages continues to evolve beyond its core marketplace into a multi-product platform.

They said that VIZ Insurance adds about 4,500 businesses to the platform, while AI tools for accounting and finance, as well as household products, would provide further optionality.

Shaw and Partners added:

Importantly, AI and future verticals contribute little to FY27 guidance, but successful adoption could accelerate growth beyond the core business’s ~8–10% trajectory from FY28. We reiterate our Buy rating but lower our price target to $2.00 (was $2.50), reflecting more conservative long term revenue growth assumptions, driven primarily by lower volume growth. At the current price, HPG trades on just 1.0x FY27 enterprise value/revenue, which we believe materially understates the value of the platform given its improving profitability and free cash flow generation.

Hipages is valued at $126.3 million.

The post This small-cap ASX technology stock could more than double in value: Broker appeared first on The Motley Fool Australia.

More reading

• GR Engineering Services completes $100 million placement and share purchase plan
• FireFly Metals share price climbs after $190m raise for Green Bay project
• How many Woolworths shares do I need to earn $10,000 per year in passive income?
• Ainsworth Game Technology posts lower H1 FY26 profit and revenue
• Lynas Rare Earths posts record FY26 profit and revenue as growth ramps up

Motley Fool contributor Cameron England 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 Hipages Group. The Motley Fool Australia has recommended Hipages Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The FireFly Metals Ltd (ASX: FFM) share price is in focus after the company announced a successful A$190 million capital raising to accelerate the development and resource growth at its Green Bay Copper-Gold Project in Canada.

What did FireFly Metals report?

• Raised approximately A$180 million via institutional placements in Australia and Canada at A$1.78 per share
• Announced intention to raise up to an additional A$10 million through a Share Purchase Plan for eligible shareholders
• Funds earmarked for early project works, procurement of long-lead items, and resource drilling
• Following a robust Preliminary Economic Assessment, project development and expansion activities are set to continue
• Placement was strongly supported by existing and new institutional investors

What else do investors need to know?

The funds raised will mainly support the Green Bay Copper-Gold Project, including technical studies, underground development, and aggressive regional exploration initiatives. The company plans to progress a Feasibility Study for its 1.8Mtpa base case and a Pre-Feasibility Study for a larger 4.6Mtpa scenario, with the goal of making a final investment decision by mid-2027.

Shareholders registered at 5:00pm AWST on 24 August 2026 in Australia or New Zealand will be eligible for the Share Purchase Plan at the same price as the placement. The SPP may be scaled back if demand exceeds A$10 million.

What did FireFly Metals management say?

FireFly’s Managing Director Steve Parsons said:

The strong demand for the raising reflects Green Bay’s status as one of the world’s best undeveloped copper projects. This status was confirmed by the robust production and financial metrics contained in the Preliminary Economic Assessment, which demonstrated a strong cashflow outlook and rapid payback period. We are now very well-funded to progress towards project development while maintaining a multi-rig drilling program aimed at ongoing resource growth.

What’s next for FireFly Metals?

The company is focused on advancing the Green Bay Copper-Gold Project towards production, with further drilling and technical studies in the pipeline. Management expects the new capital to ensure strong balance sheet flexibility as they work towards a final investment decision in 2027.

There’s also an ongoing commitment to regional exploration and resource expansion, positioning FireFly to deliver growth for shareholders as the project evolves.

FireFly Metals share price snapshot

Over the past 12 months, FireFly Metals shares have risen 57%, outperforming the All Ordinaries Index (ASX: XAO).

View Original Announcement

The post FireFly Metals share price climbs after $190m raise for Green Bay project appeared first on The Motley Fool Australia.

More reading

• FireFly Metals reveals robust Green Bay PEA and resource boost
• Here are the top 10 ASX 200 shares today
• 5 ASX shares downgraded by brokers this week
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Shares in supermarket giant Woolworths Group Ltd (ASX: WOW) are a popular choice among investors seeking passive income.

Woolworths is classed as an ASX consumer staples stock, which means it is a structurally defensive stock.

That’s because its earnings are anchored by non-discretionary consumer spending. In other words, regardless of inflation levels or consumer sentiment, Australians still need to eat, which means they need to buy groceries.

Its defensive nature also means Woolworths shares can generate stable cash flow across all phases of the economic cycle. Which means it is able to then pay a steady dividend to its shareholders.

But what would it entail to earn as much as $10,000 per year in passive income from Woolworths shares?

Let’s take a look.

What passive income does Woolworths pay its shareholders?

First, we need to understand what dividends the supermarket giant pays its shareholders.

Woolworths typically pays its investors twice-yearly dividends: an interim dividend in April and a final dividend in October.

This morning, the company announced a final dividend payout of 52 cents per security, fully franked, as part of its FY26 results announcement. Combined with the company’s latest 45-cent interim dividend payment in April, that comes to a total FY26 dividend payment of 97 cents per security.

The supermarket giant is then forecast to pay shareholders $1.13 in FY27.

At the time of writing, this translates to a dividend yield of around 2.5% for FY26. For FY27, the forward dividend yield could be roughly 2.9%.

So, how many Woolworths shares do I need to generate $10,000 in passive income in FY27?

Using the FY26 total dividend payment of 97 cents per share, investors would need to own around 10,309 shares in order to earn $10,000 per year in passive income.

Then, assuming the supermarket business pays the forecast $1.13 dividend in FY27, investors would need to buy 8,849 shares to generate the same $10,000 in annual passive income.

How much would that cost?

At the time of writing, Woolworths shares are $38.85 each.

That means, in order to buy the 10,309 shares needed for $10,000 of passive income in FY26, you would need to invest roughly $400,515. 

For FY27, you’d need to invest $343,783 to buy the 8,849 shares needed for the same annual passive income.

It’s not a small amount, but it could be worth it in the long run.

And remember, you don’t need to invest the entire amount in one go. Start off small and let compound growth do some of the work for you.

The post How many Woolworths shares do I need to earn $10,000 per year in passive income? appeared first on The Motley Fool Australia.

More reading

• Woolworths Group FY26 earnings: Sales, profit and dividend all grow
• 5 things to watch on the ASX 200 on Wednesday
• Are Woolworths shares a buy, sell or hold ahead of its FY26 results announcement?
• 5 things Warren Buffett looks for before buying ASX shares
• Want income for life? Here’s how I’d build an ASX dividend portfolio

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.

The Ainsworth Game Technology Ltd (ASX: AGI) share price is in focus after the company reported first-half FY26 revenue of $116.5 million, down 23% on last year, and statutory profit after tax of $1.1 million, a significant decrease from $4.9 million in the previous corresponding period.

What did Ainsworth Game Technology report?

• Revenue: $116.5 million, down 23% from H1 FY25
• Underlying EBITDA: $17.1 million, down 36% year-on-year
• Statutory profit after tax: $1.1 million, down 78%
• Operating cashflow: $8.9 million, a $13.6 million improvement from the prior period
• Net debt: reduced to $8.5 million from $11.8 million
• No interim dividend declared

What else do investors need to know?

Ainsworth’s performance reflects challenging trading conditions across all regions, including weaker consumer sentiment and increased regulation, especially in its largest market, North America. The removal of Historical Horse Racing machines in New Hampshire and a higher Mexican gaming tax also weighed on results.

Despite a dip in total machines under gaming operation, the Asia Pacific business delivered growth with strong demand for the A-STAR Raptor range and increasing average selling prices. The company continues to invest heavily in R&D, making up 22% of revenue, and is actively expanding its use of AI across the business.

Ainsworth recently entered a licensing agreement with Aristocrat Leisure Ltd (ASX: ALL), involving a $8.5 million payment over three and a half years, settling historical patent issues. This has resulted in a one-off provision expense of $2.3 million this half.

What did Ainsworth Game Technology management say?

AGT CEO Ryan Comstock said:

Given the challenging trading conditions, our focus has been on disciplined cost management to enhance margins, reducing debt, and improving our operating cash flow whilst also continuing our investment in R&D, and successfully launching new products in key markets.

What’s next for Ainsworth Game Technology?

Looking ahead, AGT is focused on rolling out new products, including the Dragon Legacy and A-STAR Raptor cabinets, especially in North America and Latin America. The integration of AI in development processes is expected to boost efficiency and product quality without ramping up costs.

The company is aiming to drive revenue growth by delivering more competitive and innovative products in all markets, with a disciplined approach to financial management and cost control to create long-term value for shareholders.

Ainsworth Game Technology share price snapshot

Over the past 12 months, Ainsworth Game Technology shares have risen 11%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the sme period.

View Original Announcement

The post Ainsworth Game Technology posts lower H1 FY26 profit and revenue appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Aristocrat, Telstra, ANZ shares
• Ainsworth Game Technology inks major patent deal with Aristocrat
• How to turn $1,000 a month into $1 million with ASX shares
• My top ASX 200 stock picks for August

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia