Author: openjargon

ASX materials stocks have largely outperformed the broader market in 2026. 

At the time of writing, the S&P/ASX 200 Materials Index (ASX: XMJ) is up almost 10% this year compared to a flat return for the ASX 200.

This hasn’t translated to success for ASX materials stock Catalyst Metals Ltd (ASX: CYL). 

The company is a mid-tier Australian gold producer and developer with 100% ownership of two key projects:

• Plutonic Gold Operation (PGO) – an operating asset in Western Australia
• Bendigo Gold Project (BGP) – an advanced exploration project in Victoria

This ASX materials stock has tumbled 23% year to date. 

This included a 6% crash yesterday. 

However, the team at Bell Potter is optimistic of a turnaround following the company’s Quarterly Activities Report.

What did Catalyst Metals report?

Yesterday, Catalyst Metals reported for the March quarter: 

• Plutonic gold production of 26,127oz for the quarter
• Discovery of a high-grade zone beneath existing Cinnamon Resource presents the opportunity for a sixth ore source at the Plutonic Gold Belt
• Acquisition of significant land package in the Bryah Basin – a neighbouring gold & base metal belt to Plutonic – creating an almost contiguous 190km tenement package surrounding the central processing facility at Plutonic
• Operating cash flow (after sustaining capital and corporate costs) was A$103m
• Cash and bullion at quarter end was A$277m, an increase of A$39m on the prior quarter, while reinvesting heavily in the Plutonic Gold Belt

Investors seemed displeased with the results, as the ASX mining stock slumped significantly during Wednesday’s trade.

What did Bell Potter have to say?

Following the results, the team at Bell Potter released updated guidance on this ASX materials stock. 

The broker said revenue was A$167.7m, which was a miss on its estimate of A$188m and consensus of $201.3m. 

According to Bell Potter, costs were the main issue, with higher-than-expected cash costs (A$2,485/oz) and AISC (A$2,853/oz). These were driven by downtime, lower volumes, and inflationary pressures, though the company still generated A$103m in operating cash flow and ended with A$277m cash and no debt. 

Operations are transitioning with heavy growth investment and upcoming improvements (including crusher upgrades and new mines).

While production guidance remains unchanged, full-year cost guidance has been significantly increased.

Upside intact 

Despite this guidance, the team at Bell Potter has maintained its buy recommendation and $14.60 price target on Catalyst Metals shares. 

From yesterday’s closing price of $5.65, that indicates an upside potential of 139%. 

This growth could seemingly be set to come in the long term.

Bell Potter has adjusted its earnings per share outlook.

Earnings per share are now expected to fall in FY26 by 19% and then recover and increase by 11% in FY27 and a further 14% in FY28.

The post Broker tips this ASX materials stock to rise 139% after yesterday’s crash appeared first on The Motley Fool Australia.

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• Why Catalyst Metals, G8 Education, Meteoric Resources, and Westgold shares are falling today
• Why are Catalyst Metals shares sinking today?
• Could these ASX stocks double by the end of 2026?
• Here are the top 10 ASX 200 shares today

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.

Fortescue Ltd (ASX: FMG) shares have been strong performers over the past 12 months.

Since this time last year, the iron ore giant’s shares have risen approximately 25%.

Where next? Let’s see what analysts at Bell Potter are saying about the miner.

What is the broker saying?

Bell Potter was pleased with the company’s performance during the third quarter. It highlights that Fortescue delivered shipments ahead of expectations and costs that were lower than expected. It said:

FMG has reported total iron ore shipments of 48.4Mt for the March 2026 quarter at C1 cash costs of US$18.29/wmt (vs BPe 48.0Mt at C1 US$19.13/wmt). Shipments were down 4% QoQ following a strong December quarter but contributed to record total shipments of 148.7Mt for the 9 months to end March (in line with guidance and BPe). C1 costs were down 4% QoQ, tracking to the top half of FY26 guidance (US$17.50– US$18.50/wmt). Iron Bridge shipments of 2.0Mt were impacted by weather disruptions, resulting in its FY26 guidance being downgraded from 10-12Mt to 9-10Mt. Total shipment guidance of 195–205Mt remains unchanged.

However, while this was positive, Bell Potter has concerns over capital allocation relating to its green energy plans. It said:

FMG has approved a US$680m investment to develop the Pilbara Green Energy Project, a 200MW capacity, firmed green energy (solar and wind) grid in the Pilbara. FMG has cited potential demand from industrial users and data centres underpinning the commercial case for the project. However, in our view, it presents as a high risk, asymmetrical outcome opportunity that tests the limits of prudent capital allocation.

A remote, hot, cyclone-prone region with limited existing digital infrastructure, fibre connectivity, water for cooling, skilled labour and high logistics costs does not appear a competitive setting for a data centre. These are demanding applications, requiring +99.9% power supply uptime plus extremely tight frequency and voltage regulation. We see a high risk of future writedowns, as with past FMG energy projects.

Should you buy Fortescue shares?

According to the note, the broker has downgraded Fortescue shares to a sell rating with a reduced price target of $18.15 (from $20.30).

Based on the current share price of $20.22, this implies potential downside of 10% over the next 12 months.

Commenting on its downgrade, the broker said:

EPS changes in this report are: FY26: -3%; FY27: -9% and FY28: -5%. FMG’s core iron ore operations continue to perform very well and benefit from an elevated iron ore price. However, we anticipate higher costs to emerge in 2HCY26 as low-cost inventories are exhausted, putting pressure on earnings. We are wary of the “portfolio optimisation” review encompassing Iron Bridge. We drop our rating to Sell.

The post Fortescue shares: Buy, hold, or sell? Bell Potter gives its verdict appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday
• Leading brokers name 3 ASX shares to buy today
• Why Brainchip, Fortescue, IGO, and Life360 shares are tumbling today
• Why Newmont, PLS and Fortescue shares are grabbing headlines on Friday
• Guess which ASX iron ore stock could rise 85% (hint, not Fortescue shares)

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Woolworths Group Ltd (ASX: WOW) share price is in focus as the company reported a 4.5% lift in group sales to $18.1 billion for the third quarter, led by strong Australian Food sales up 5.9% and a 20.2% jump in eCommerce sales.

What did Woolworths Group report?

• Group sales increased 4.5% to $18.1 billion for the 13 weeks to 5 April 2026
• Australian Food sales up 5.9% to $13.8 billion; Woolworths Food Retail sales up 7.3% (excluding Tobacco)
• Group eCommerce sales rose 20.2% to $2.7 billion, now 16.6% of Australian Food sales
• New Zealand Food sales up 1.4% (NZD), with a challenging retail environment
• W Living division (BIG W and Petstock) sales up 4.8%; Petstock grew 15.9%
• Group Net Promoter Score (VOC NPS) of 47, up 3 points on March 2025

What else do investors need to know?

The company continued investing in value for customers, technology, and convenience, driving strong growth in eCommerce channels and loyalty program engagement. Everyday Rewards active members hit a record 10.7 million, with digital platform traffic up 10.5%.

Performance in New Zealand remains subdued as the market becomes more competitive and operational changes take time to bed in. In Australia, customers responded well to new digital tools, fresh products, and rewards, which helped partially offset cost-of-living pressures. Woolworths also noted some operational disruptions, a seasonal drop in customer sentiment, and emerging inflationary pressures, particularly for fuel.

What did Woolworths Group management say?

Woolworths Group CEO Amanda Bardwell said:

In Q3 we made further progress on our strategic priorities with investment in value, fresh, convenience and execution delivering improved sales momentum in Australian Food which drove strong Group sales growth.

Looking ahead, the conflict in the Middle East is creating greater uncertainty for our customers, suppliers and team at a time when cost-of-living pressures are already acute. While the impact on the Group to date has been limited, higher fuel costs and secondary effects are likely to have an increasing inflationary impact as we move through the calendar year. By putting customers first and maintaining a strong focus on productivity and cost discipline, I am confident we can navigate the current environment to continue to build a stronger, more resilient business while balancing the needs of all our stakeholders.

What’s next for Woolworths Group?

Woolworths expects Australian Food EBIT growth for the full year 2026 to remain in the mid to high single digits, but now not at the upper end, due to higher fuel costs and additional support for shoppers facing inflation. In New Zealand, the food retail environment is anticipated to remain tough, with slower progress on transformation and EBIT expected to be slightly below the prior year in the second half but above FY25 for the full year.

The Group remains focused on digital innovation, value, and customer experience, with further updates due at its full-year results in August. While conditions are uncertain, Woolworths is backing its strategy on cost-control and customer-first initiatives.

Woolworths Group share price snapshot

Over the past 12 months, Woolworths shares have risen 18%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Woolworths Group Q3 sales grow as shoppers turn to value and convenience appeared first on The Motley Fool Australia.

More reading

• Liontown posts record net cash flow and hits underground mining targets
• Stockland reports higher 3Q26 sales and maintains FY26 guidance
• Mineral Resources upgrades FY26 volume guidance and posts robust lithium prices
• Champion Iron announces production gains and new growth projects
• South32 Hermosa project boosts reserves and mine life in FY26 update

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 positions in and has recommended Woolworths Group. 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 ASX is packed with dividend-paying shares, but not all income is created equal.

Chasing the highest yield can be tempting, but it’s not always the smartest move. A more reliable strategy is to focus on companies that consistently grow their payouts over time. That’s often a sign of a healthy business with rising earnings and strong cash flow.

Here are two ASX dividend shares that tick those boxes.

APA Group: a cornerstone income stock

APA Group (ASX: APA) has built a reputation as one of the most dependable income plays on the market.

Its vast network of gas pipelines and energy infrastructure operates under long-term contracts, generating predictable, recurring revenue. That stability has translated into an impressive track record. The $13 billion ASX dividend share has increased its annual distribution every year for the past two decades.

The momentum is continuing. APA recently reported a strong first-half FY26 result, with underlying EBITDA rising 7.6% to $1,092 million. It also upgraded its organic growth pipeline from $2.1 billion to around $3 billion for the FY26 to FY28 period.

Importantly for income investors, APA is targeting a FY26 distribution of 58 cents per security. That equates to a yield of around 5.8% at current prices.

While infrastructure stocks can be sensitive to interest rate movements, APA’s core business remains resilient. Its assets are critical to energy supply, and much of its revenue is linked to inflation, helping support steady cash flow and growing distributions.

Universal Store Holdings: fast growth, rising dividends

For investors willing to look beyond traditional income sectors, Universal Store Holdings Ltd (ASX: UNI) offers a different kind of opportunity.

The company operates youth-focused fashion brands, including Universal Store and Perfect Stranger, and its growth has been driven by strong sales momentum and an expanding store footprint.

That growth is translating into rising shareholder returns. The ASX dividend share has increased its dividend every year since it began paying one in FY21, and the business is still expanding quickly. In its FY26 half-year result, group sales climbed 14.2% to $209.6 million. The company plans to open up to 17 new stores in FY26, while continuing to explore additional expansion opportunities.

Broker sentiment is also supportive. Morgans has a buy rating on the ASX dividend fashion share with a $10.60 price target, which points to a healthy 43% upside from the current price level.

On the income front, Morgans forecasts fully-franked dividends of 41 cents per share in FY26 and 46 cents in FY27. Based on the current share price of $7.43, that implies yields of around 5.6% and 6.25%, respectively.

Foolish Takeaway

APA and Universal Store offer two different paths to passive income. APA delivers stability and long-term reliability, while the fashion stock brings growth and rising payouts.

Together, they highlight an important point: the best ASX dividend shares aren’t just about yield, they’re about sustainable, growing income over time.

The post Want passive income? These ASX dividend shares offer 5%+ yields appeared first on The Motley Fool Australia.

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

The Mineral Resources Ltd (ASX: MIN) share price is in focus today after the company upgraded FY26 volume guidance across several key mining operations and reported a strong 92% jump in average lithium prices for the quarter.

What did Mineral Resources report?

• Onslow Iron shipped 7.2Mt in Q3 FY26, with volume guidance upgraded for FY26 to 17.7–19.4M wmt.
• Mining Services FY26 production guidance lifted to 320–330Mt (from 305–325Mt).
• Quarterly attributable spodumene concentrate production (Wodgina & Mt Marion) was 127k dmt SC6, with sales of 115k dmt SC6 at an average price of US$2,105/dmt (up 92% quarter-on-quarter).
• Liquidity increased to $1.8 billion, while net debt was lowered to circa $4.5 billion (from $4.9 billion).
• FY26 lithium volume guidance lifted at Wodgina (270–290k dmt SC6) and Mt Marion (210–230k dmt SC6).
• No disruption to fuel supply or operations amid geopolitical tensions; cost guidance maintained across divisions.

What else do investors need to know?

The March quarter saw some interruptions due to tropical cyclones, but key infrastructure across Onslow Iron remained undamaged, with production quickly returning to normal. Mining Services renewed two contracts and completed another, while the Lamb Creek iron ore project achieved its first ore on ship and continues to ramp up as planned.

The company strengthened its capital structure by issuing US$1.3 billion in new Senior Unsecured Notes post quarter-end, primarily to refinance higher-interest notes and further lower existing debt. MinRes’ liquidity position is healthy, with nearly $1 billion in cash and an unused $800 million revolving credit facility at quarter’s end.

What’s next for Mineral Resources?

Mineral Resources is sticking to its strategy of expanding production across both iron ore and lithium, with upgraded FY26 targets reflecting strong operational momentum. Despite higher fuel costs expected in the June quarter, cost guidance has been maintained, and the company continues to pass increased fuel expenses through to customers for its Mining Services division.

The group is progressing project developments, including exploration at Onslow Iron and lithium growth options like the potential restart at Bald Hill and a possible flotation plant at Mt Marion to improve recoveries. Preparations are also underway for further energy exploration drilling in the Perth and Carnarvon Basins.

Mineral Resources share price snapshot

Over the past 12 months, Mineral Resources shares have risen 201%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Mineral Resources upgrades FY26 volume guidance and posts robust lithium prices appeared first on The Motley Fool Australia.

More reading

• Liontown posts record net cash flow and hits underground mining targets
• Stockland reports higher 3Q26 sales and maintains FY26 guidance
• Woolworths Group Q3 sales grow as shoppers turn to value and convenience
• Champion Iron announces production gains and new growth projects
• South32 Hermosa project boosts reserves and mine life in FY26 update

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 Champion Iron Ltd (ASX: CIA) share price is in focus after the company reported Q4 FY26 production of 3.4 million wet metric tonnes, up 8% year-on-year, and a strong cash position of $296.8 million.

What did Champion Iron report?

• Quarterly production of 3.4 million wet metric tonnes (wmt) of 66.2% Fe concentrate, up 8% from Q4 FY25
• Sales of 3.5 million dry metric tonnes (dmt), stable year-on-year despite rail and weather disruptions
• C1 cash cost at $82.7/dmt, up 12% quarter-over-quarter and 3% year-on-year
• Cash balance of $296.8 million as at 31 March 2026, up $51.7 million since December
• Available liquidity of $812.4 million, supporting growth initiatives

What else do investors need to know?

Champion Iron advanced commissioning of its DRPF (Direct Reduction Pellet Feed) project during the quarter, with initial production tests completed in March. The first commercially sellable DRPF product is expected by the end of calendar Q2 2026. The company also successfully closed the acquisition of Norwegian iron ore producer Rana Gruber in April, adding 1.8 million dmt of high-grade iron ore to its annual output.

Despite disruptions caused by a third-party train derailment and harsh winter conditions, Champion kept production and sales broadly stable. Inventory at Bloom Lake and the port reduced from 1.5 million wmt to 1.3 million wmt, supporting ongoing sales and logistics. Mining performance at Bloom Lake also improved, with 20.9 million wmt of material mined in the quarter, up 3% on last year.

What did Champion Iron management say?

CEO David Cataford said:

Our team remains focused on efficiency and disciplined execution as we advance initiatives to optimise operations, strengthen sales performance and progress our growth projects. Concurrently, our DRPF project remains on schedule, with first sellable commercial production expected in the second quarter of the calendar year. In parallel, the recent closing of the Rana Gruber ASA transaction marks a significant milestone for Champion. It reinforces our leadership as a low carbon producer of high-purity iron ore while expanding our cash flows, positioning us to capitalise on opportunities to maximise long-term value for our shareholders and the communities in which we operate.

What’s next for Champion Iron?

Investors can look forward to the commencement of commercial DRPF production by the end of calendar Q2 2026, expanding the company’s product range and access to higher-value markets. With the full integration of Rana Gruber and continued investment in growth, Champion is aiming to boost cash flows and further cement its leadership in high-purity, low-carbon iron ore.

The company is also advancing feasibility work at the Kami Project, with a definitive study expected in the second half of 2026. Champion’s strong cash and liquidity positions support these ongoing strategic projects and provide flexibility in a volatile iron ore market.

Champion Iron share price snapshot

Over the past 12 months, Champion Iron shares have risen 8%, slightly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Champion Iron announces production gains and new growth projects appeared first on The Motley Fool Australia.

More reading

• South32 Hermosa project boosts reserves and mine life in FY26 update
• $1,000 buys 23 shares in an incredibly reliable ASX 200 dividend stock
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Why is this ASX gold stock slipping despite new gold discoveries?

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 South32 Ltd (ASX: S32) share price is in focus today after the company delivered an update on its flagship Hermosa project. Key outcomes include a 52% boost to the Taylor deposit’s Ore Reserve and an increased project operating life of around 33 years.

What did South32 report?

• Taylor Ore Reserve increased 52% to 99 million tonnes, driven by successful infill drilling
• Initial operating life for Taylor extended by 5 years to approximately 33 years
• Expected steady-state annual EBITDA of ~US$650 million, with potential to rise to ~US$800 million at spot prices
• Growth capital expenditure for Taylor revised up to ~US$3.3 billion, reflecting scope changes and inflation
• Peake copper resource estimate up 32% to 33Mt, supporting longer mine life and future copper production potential
• First production from Taylor now expected in the second half of FY28, with nameplate capacity by FY31

What else do investors need to know?

Recent work confirms Taylor remains a high-quality, long-life zinc-lead-silver asset, with the deposit open for further growth. Operational flexibility will improve, as first ore is expected via the Clark decline before shaft commissioning, increasing ore handling capacity by 25%.

The nearby Peake deposit is shaping up as a future copper development, underpinned by a significant uplift in its Mineral Resource. South32’s battery-grade manganese Clark deposit has also attained US government support, with federal permitting for Hermosa’s components progressing as planned.

What did South32 management say?

Chief Executive Officer Graham Kerr said:

Our investment in Hermosa has established a regional-scale project with the potential to produce critical minerals over several decades, with Taylor as the first stage. Our updated assessment of project execution has reaffirmed Taylor’s potential to deliver our shareholders attractive returns from its long-life, low-cost production of zinc, silver and lead.

What’s next for South32?

Looking ahead, South32 expects construction of the Hermosa project’s key infrastructure, including Taylor’s shafts and processing plant, to be complete between FY27 and FY28. The path to nameplate production is set for FY31, slightly later than previously planned, due largely to contractor challenges and higher input costs.

The company is also focusing on integrating Peake’s copper with Taylor’s mine plan and advancing the Clark manganese project, aiming to support US critical minerals supply for decades. Ongoing drilling and exploration at Hermosa’s wider tenement could unlock further value in future updates.

South32 share price snapshot

Over the past 12 months, South32 shares have risen 55%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post South32 Hermosa project boosts reserves and mine life in FY26 update appeared first on The Motley Fool Australia.

More reading

• Champion Iron announces production gains and new growth projects
• $1,000 buys 23 shares in an incredibly reliable ASX 200 dividend stock
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Why is this ASX gold stock slipping despite new gold discoveries?

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.

Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) shares have been standout performers in 2026.

Closing at $2.14 apiece on Wednesday, Karoon Energy shares are now up 39% year to date.

And after ending yesterday at $7.77 each, Santos shares have gained 26% so far in 2026.

To put that performance into some better context, the S&P/ASX 200 Index (ASX: XJO) is down 0.3% this calendar year.

Atop those capital gains, Santos also paid out a 14.5-cent per share unfranked interim dividend on 25 March. Santos stock trades on a partly franked trailing dividend yield of 4.5%.

And Karoon Energy paid its fully-franked 3.1 cent per share final dividend on 31 March. Karoon Energy shares trade on a partly franked 2.6% trailing dividend yield.

But after this strong outperformance, Medallion Financial Group’s Stuart Bromley believes investors would do well to take profits on these two ASX 200 energy stocks (courtesy of The Bull).

Here’s why.

Time to sell Santos shares?

“Santos is a global energy company,” Bromley said. “It has operations across Australia, Papua New Guinea, Timor-Leste and the United States.”

Looking at the company’s calendar year 2025 results, he noted:

Total revenue from ordinary activities fell by 8% in full year 2025 when compared to the prior corresponding period. The fall in revenue was due to lower realised prices. Net profit after tax was down 33%.

As for 2026, Bromley said, “The share price has risen from $5.92 on January 7 to trade at $7.61 on April 23.”

Which leads to his sell recommendation on Santos shares.

“We would be inclined to lock in gains given volatile and uncertain energy prices emanating from the conflict in the Middle East,” Bromley concluded.

Time to lock in profits on Karoon Energy shares?

Atop from recommending taking profits on Santos shares, Bromley also has a sell recommendation on Karoon Energy shares.

“Karoon is an oil and gas explorer and producer,” he said. “It has assets in Australia, the United States and Brazil.”

As for Karoon Energy’s 2025 results, Bromley noted, “Revenue from ordinary activities was down 19% in full year 2025 when compared to the prior corresponding period. Net profit after tax was down 2%.”

Bromley’s sell recommendation is based on similar logic to his concerns over Santos’ rapid year-to-date share price gains.

Commenting on Karoon Energy, he concluded:

The shares have risen from $1.54 on February 27 to trade at $2.16 on April 23. In our view, Karoon has benefited from increasing crude oil prices since the conflict in the Middle East started on February 28.

We believe these sorts of opportunities should be taken and we have locked in profits on Karoon.

Trading at US$111 per barrel on Wednesday, the Brent crude oil price has surged more than 53% since the start of the Iran war at the end of February.

The post Sell alert! Why this expert is calling time on Karoon Energy and Santos shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• Buy, hold, sell: Sigma Healthcare, Macquarie, Santos shares
• Up 40% this year, this ASX energy stock is still climbing today
• 5 things to watch on the ASX 200 on Tuesday

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.

If you have $5,000 available to invest in May, the ASX 200 still offers plenty of quality to choose from.

The key is not trying to find the cheapest share on the market. It is finding businesses with durable advantages, long-term growth drivers, and the ability to keep compounding earnings over time.

Here are three ASX 200 shares that analysts think investors should consider buying with $5,000:

Aristocrat Leisure Ltd (ASX: ALL)

The first ASX 200 share that could be a strong option is Aristocrat Leisure.

Aristocrat is a global gaming technology company with exposure to land-based gaming machines, digital games, and online real-money gaming.

The business has a strong track record of developing successful gaming content. In this industry, high-quality content matters because it drives player engagement and supports recurring demand from venue operators.

Aristocrat’s digital operations also give it another growth channel. While the land-based business remains important, digital gaming and real money gaming expands the company’s addressable market and gives it exposure to changing entertainment habits.

With a strong content engine and multiple growth avenues, Aristocrat arguably remains one of the more compelling growth shares in the ASX 200.

Morgans recently put a buy rating and $63.00 price target on its shares.

CAR Group Ltd (ASX: CAR)

Another ASX 200 share worth looking at in May is CAR Group.

CAR Group owns digital vehicle marketplaces across Australia and international markets, including carsales in Australia. These platforms connect buyers, sellers, dealers, and advertisers.

Its strength comes from network effects. Buyers go where the listings are, while sellers and dealers want to be where the buyers are. That creates a strong competitive position that is difficult to replicate.

The company also has opportunities beyond Australia. Its international businesses give it exposure to larger markets and provide additional growth avenues over time.

With its platform model, pricing power, and global expansion opportunities, CAR Group offers exposure to a high-quality digital marketplace with room to keep compounding.

Morgans currently has a buy rating and $33.50 price target on its shares.

ResMed Inc (ASX: RMD)

A third ASX 200 share that could be a top pick is ResMed.

ResMed is a global leader in sleep apnoea treatment and respiratory care. Its devices, masks, and connected software help patients manage sleep-related breathing disorders.

The long-term opportunity remains attractive. Sleep apnoea is still underdiagnosed globally, and awareness continues to improve as more people understand the health risks linked to poor sleep.

ResMed also benefits from its connected-care platform. Devices linked to software can improve patient monitoring and support better adherence, making the company more than just a hardware manufacturer.

With a large market opportunity and a strong position in respiratory health, ResMed remains well placed to keep growing over the long term.

Morgans recently upgraded ResMed’s shares to a buy rating with a $47.73 price target.

The post 3 amazing ASX 200 shares to buy with $5,000 in May appeared first on The Motley Fool Australia.

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

ASX dividend shares that regularly increase their passive income payments are very attractive because of how they can make us increasingly cash-rich and help offset any inflation effects.

While dividend growth is not guaranteed, I like looking at businesses with a good track record of delivering regular growth because it seems like they’re committed to dividend increases.

Let’s look at two of the most compelling ideas for consistent payout growth.

APA Group (ASX: APA)

APA has the second-longest payout growth streak on the ASX. It has increased its distribution every year for the last 20 years.

It funds its impressive distribution from the cash flow of its portfolio of energy assets across Australia. The most important asset is a network of gas pipelines – the business transports half of the country’s usage.

APA has numerous other assets including gas-powered energy generation, electricity transmission, wind farms, solar farms and gas processing and storage.

Some of the ASX dividend share’s latest announced assets that it’s working on include a new power station in Queensland to help provide firming capacity and more pipelines to supply the southern market.

Energy is a very important element of the Australian economy, so I’d describe APA as having defensive earnings. It’s particularly helpful that a vast majority of APA’s revenue is linked to inflation, giving it earnings protection during times like this.

It’s expecting to increase its distribution to 58 cents per security in FY26, which translates into a distribution yield of 5.7%.

Medibank Private Ltd (ASX: MPL)

Medibank is the leading private health insurer in Australia, with its Medibank and ahm brands, as well as a growing non-insurance division.

That non-insurance segment is becoming a larger contributor to the business – in the FY26 first-half, health insurance operating profit rose 3.5% to $361.5 million and Medibank Health operating profit jumped 28.5% to $48.3 million.

A core driver of the company’s financials is its growing subscriber base, giving it more scale each year.

In the HY26 period, net resident policyholder growth was 38,300 (or 1.9%) and net non-resident policy unit growth was 1,500 (or 0.4%). While that’s not huge growth, it represents ongoing progress for the ASX dividend share and helps justify a dividend increase.

Pleasingly, HY26 group operating profit rose 6% to $381.7 million, though cybercrime impacts continues to be an overhang on the bottom line.

In terms of the dividend, Medibank was able to hike its interim dividend per share by 6.4% to 8.3 cents, representing a dividend payout ratio of 76.8%. Aside from 2020, the business has increased its dividend per share every year since it listed more than a decade ago.

Its latest two dividends equate to a grossed-up dividend yield of 5.7%, including franking credits, at the time of writing.

The post These ASX dividend shares keep giving investors a pay rise appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.