Author: openjargon

Finding ASX shares capable of producing market-beating returns isn’t easy, particularly when valuations remain elevated. But some brokers see significant upside in these two growth companies over the next year.

Both Mesoblast Ltd (ASX: MSB) and Zip Co Ltd (ASX: ZIP) have faced different challenges, but analysts believe their growth prospects could translate into substantial share price gains.

Mesoblast: strong sales growth and a well-funded outlook

The clinical-stage biotech has had a sluggish start to 2026. Mesoblast shares currently trade at $2.34, down 14% year to date but still 10% higher than they were 12 months ago.

The weakness appears to reflect greater investor caution around clinical timelines, alongside some profit-taking following last year’s strong rally.

Mesoblast develops and commercialises allogeneic cellular medicines for complex diseases. Some of its products are already in use, while other cell therapies are progressing through late-stage clinical trials.

Its Ryoncil product is gaining traction, while the company remains well funded. Brokers are also optimistic that sales can continue growing strongly in FY27.

TradingView data shows all five analysts covering the ASX shares rate them a strong buy. Their average price target of $4.08 implies potential upside of approximately 75%.

Bell Potter recently said Mesoblast’s latest results were broadly in line with expectations. The broker sees continued double-digit growth from Ryoncil, alongside major potential catalysts from Rexlemestrocel in heart failure and chronic lower back pain.

Bell Potter has a buy rating and a $4.45 price target, implying around 90% potential upside.

Zip: US as main attraction

Zip is a fintech providing buy now, pay later and digital payment services to consumers and merchants. Its rapidly expanding US business is the key attraction.

The US accounted for around two-thirds of Zip’s revenue in FY26, with total revenue increasing 24.7%. US revenue surged 37.3% in Australian dollar terms and 44.3% in US dollar terms, compared with just 4.6% growth in ANZ.

The US is also driving customer growth. Active US customers rose 9.3% to 4.65 million, while ANZ customers fell 8% to 1.88 million. For FY27, Zip expects US total transaction value to increase by more than 30%.

Importantly, profitability is growing faster than revenue. Cash gross profit increased 26.2% to $642.3 million, while cash operating profit jumped 57.9% to $268.9 million.

Analysts are particularly bullish. TradingView data shows all 13 analysts rate Zip a buy or strong buy. The average $4.52 price target suggests around 72% upside, while the most bullish target of $6.03 implies potential gains of roughly 130%.

UBS recently maintained its buy rating and $4.70 target, implying around 79% upside. Macquarie also has a buy rating, although its $3.50 target is considerably more conservative.

For investors hunting for ASX growth shares, both companies have significant potential, but that potential comes with materially higher risk than established blue-chip stocks.

The post Experts tip these $3 billion ASX shares to deliver over 75% returns appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Challenger, APA Group, Mesoblast shares
• Is it time to get greedy with Zip shares?
• Short sellers are targeting these ASX shares. Should you worry?
• These are the 10 most shorted ASX shares
• Why now is the time to buy low on these ASX healthcare shares with up to 84% upside

Motley Fool contributor Marc Van Dinther has positions in Mesoblast. 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.

Home values have now fallen for five months in a row, and the ASX is already feeling the impact.

Cotality’s national index dropped 0.9% in August, which leaves values 3.6% below their March peak.

REA Group Ltd (ASX: REA) shares fell 4.21% on Monday as the data landed, whereas Stockland Corp Ltd (ASX: SGP) climbed 2.29% on the same day.

Understanding that divergence will be key in determining how ASX investors should position themselves.

Why falling home values matter for ASX investors

The downturn has stopped being a Sydney story.

Ninety-three per cent of capital city suburbs recorded a decline over winter, and every capital except Darwin went backwards across the three months.

Sydney led the falls with a 1.4% drop in August and now lies 7.1% below its February peak.

Melbourne and Canberra each fell 1.1%, while Adelaide and Perth were down 0.8%.

Sales volumes are tracking 15.5% below the same period last year.

Cotality research director Tim Lawless summed up the change:

What started as a more concentrated easing across higher-value segments has now become a much more generalised softening, with the vast majority of capital city suburbs recording some level of decline.

For investors, the core question is whether a company earns its money from prices, from volumes, or from the loans behind them.

REA Group has the most direct exposure

REA Group is paid by agents to list properties.

When sales volumes fall 15.5%, that quickly becomes a revenue problems.

REA shares closed Monday at $169.78 and are down 30.19% over the past twelve months.

FY26 was still a strong year for the business.

Revenue rose 7% to $1,793 million and net profit after tax climbed 15% to $650 million, with the operating EBITDA margin expanding three percentage points to 61%.

The company lifted its dividend 20% to $2.97 per share.

The catch is the outlook, where management expects national buy listings to be flat to down low single digits in FY27.

Stockland is building into weaker home values

Stockland sells new houses and land, which is a different business entirely.

The company’s FY26 result delivered funds from operations of $892 million, up 10.4%, with FFO per security rising 9.1% to 36.9 cents.

Masterplanned community settlements jumped 30% to 8,902 lots and land lease settlements rose 48% to 777 homes.

Gearing improved to 22.7% from 25.2%.

FY27 guidance is for FFO per security of 38.0 to 39.0 cents.

At around $4.46 the shares trade on a price-to-earnings ratio of 10.51 and yield 5.85%, having fallen 28.64% across the year.

Affordability improves as prices fall, which is precisely why a residential developer can rally on a weak housing print.

Commonwealth Bank owns the mortgages

Commonwealth Bank of Australia (ASX: CBA) is the largest mortgage lender in the country.

The company’s FY26 result produced cash net profit after tax of $10,982 million, up 7%, on a net interest margin of 2.05%.

Home loan arrears at 90 days or more were at 0.73%, and the loan impairment expense rose 9% to $788 million.

Chief executive Matt Comyn noted that housing activity had softened from a high base while application volumes appeared to have stabilised in recent weeks.

Falling home values do not create losses on their own. But they matter when borrowers cannot pay and the security is worth less than the loan.

Arrears of 0.73% are elevated and alarming, yet CBA still managed to return $5.05 per share fully franked to shareholders.

Foolish takeaway

The three companies are at very different points of the same cycle.

REA Group looks the most exposed, because listing volumes are already falling and the multiple still assumes growth.

Stockland arguably benefits, since cheaper land and better affordability feed straight into its development pipeline.

CBA sits somewhere in between, with a slower loan book but no real credit problem yet.

If home values keep sliding through spring, I would expect the gap between the three stocks to widen.

The post Home values just fell for a fifth straight month. Which ASX shares are most exposed? appeared first on The Motley Fool Australia.

More reading

• When to sell your ASX shares? Warren Buffett has 3 answers
• How Westpac, ANZ, NAB and CBA shares stacked up in August
• Buy, hold, sell: Mineral Resources, Ansell, CBA shares
• The RBA could hike rates in September. Which ASX shares are most at risk?
• Are these 3 top Betashares ETFs a buy in September?

Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

WiseTech shares delivered their best month in more than a year in August, with the stock closing Monday at $40.38.

That capped an 11% monthly gain.

It also leaves WiseTech Global Ltd (ASX: WTC) down 41% for the calendar year and 60% over twelve months.

A rebound of that size, after a fall of that size, deserves a careful look.

What actually happened to WiseTech shares in August

The month came in two distinct halves.

Across the first three weeks the shares surged 25%, reaching $45.47 on 25 August.

Then the FY26 result landed, and the rally lost its momentum, with the stock giving back around 11%.

Standing behind all of this was the Australian Competition and Consumer Commission executing a search warrant on the company on 19 August, which knocked roughly 10% off the shares in a single session.

The FY26 result was not the problem

The numbers themselves were quite good.

Total revenue rose 79% to US$1,395.9 million, helped enormously by the e2open acquisition, which contributed US$541.2 million on its own.

Underlying EBITDA climbed 56% to US$644.5 million and underlying net profit after tax rose 29% to US$313.5 million.

Free cash flow increased 43% to US$410.7 million, and the final fully franked dividend rose 14% to 8.8 US cents per share.

Reported EBITDA of US$558.4 million landed inside guidance but slightly below the US$569.5 million consensus, which is the immediate reason the shares fell.

Chief Executive Zubin Appoo framed the year around WiseTech’s ongoing transformation:

This was a transformational year for WiseTech. We acquired e2open to expand our offerings into adjacent markets, launched our new commercial model with more than 95% of CargoWise customers now on CargoWise Value Packs, and adopted AI across our own operations.

FY27 guidance is for revenue growth of 6% to 10%, reaching US$1.48 billion to US$1.54 billion.

Underlying EBITDA is forecast to grow 12% to 21%, with margins improving to between 49% and 51%.

That is a sharp deceleration from 79% revenue growth, and it is the reason the market hesitated.

What the brokers make of WiseTech shares

The spread of price targets is extraordinary.

Morgan Stanley has a buy rating and a $70 target, implying 73% upside from Monday’s close.

Morgans retained buy with $62.50, Bell Potter cut its target to $65, UBS trimmed to $56 while keeping a buy, and Citi lifted to $58.75.

Macquarie sits at $48.20, also with a buy.

At the other end, Jefferies downgraded to hold with a $45 target and JPMorgan has a hold rating with a $40 target.

The bull case and the bear case

The bull case is straightforward enough.

CargoWise remains the operating system for global freight forwarding and is used by the world’s largest forwarders, including Toll and DHL.

Cost programs delivered around US$115 million in annualised savings, and margins are guided higher again in FY27.

The bear case is equally clear.

An active ACCC investigation has no defined end date, the company has cycled through leadership and board changes, and the shares have fallen 60% in a year.

Foolish takeaway

WiseTech shares look cheap against almost every analyst target.

However, one good month does not resolve a regulatory investigation and all the ongoing risks surrounding the company.

I would want the ACCC matter clarified, or two consecutive results that meet guidance, before calling this a true turnaround.

Investors who already hold have a reasonable argument in the FY26 numbers to stay put.

For everyone else, the August rebound in WiseTech shares should be treated with a bit more caution.

The post WiseTech shares had their best month in a year. Is this a buying opportunity? appeared first on The Motley Fool Australia.

More reading

• 5 things reporting season taught ASX investors about FY27
• WiseTech shares enjoy best month in over a year. More to come?
• 5 ASX 200 shares with 33% to 61% upside post-results: experts
• Morgans names 3 ASX tech stocks to buy
• Why I think Xero and WiseTech shares are strong buys

Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

With earnings season in the rear view mirror, brokers are adjusting their outlooks for multiple ASX shares. 

This week, the team at Morgans have placed fresh buy ratings on three ASX shares. 

Here is what the broker had to say. 

Echo IQ Ltd (ASX: EIQ)

EchoIQ develops, markets and commercialises software, products and services. 

Its share price has rocketed over 500% in the last 12 months. 

Morgans said the FY26 annual report already reported its important FY26 figures during the year in its quarterly updates. The annual report didn’t contain a major surprise.

The market is still waiting on an FDA decision for its Heart Failure (HF) application, which remains the key near-term catalyst and value inflection driver. Despite delays, we maintain a positive view on approval. Speculative Buy retained and A$1.85 p/s target price unchanged.

From current levels, this target indicates 40% upside. 

Qualitas Ltd (ASX: QAL)

Qualitas provides real estate management services.

Commenting on its recent results, Morgans said FY26 normalised NPBT was up 20% (vs pcp), 1% above Morgans’ forecast and in line with consensus.

More importantly, FY27 guidance for NPBT of $74m to $80m was above MorgansF and bracketing consensus – a modest beat. The FY26 result leant on performance fees while the recurring base management fee line was broadly in line. 

Operationally, QAL keeps benefiting from the retreat of retail and wholesale lenders (better terms and deal flow) and strong institutional demand for underlying funds, with a record $6.5bn deployed at a post-IPO high of 45.4% gross operating margin.

Based on this guidance, Morgans retained its buy recommendation and $3.90 price target. 

From current levels, this indicates over 32% upside. 

Peoplein Ltd (ASX: PPE)

Peoplein is a workforce solutions company operating in Australia and New Zealand.

The company released full-year results earlier this week. 

Morgans said FY26 saw the completion of its portfolio simplification, with two subscale divisions divested (c.35% of the business) and the ongoing operations returned to growth. 

Group Normalised EBITDA of $19.0m (+1.6% pcp) was in line with Morgans.

Debt continues to decline, with capital management centred on dividends/buybacks, along with incremental M&A. Second-half momentum was the feature, with 2H26 Normalised EBITDA up 19.0% on 2H25 and Engineering, Trades and Labour up 122.7%, as the Queensland infrastructure ramp began to convert. We retain our Speculative BUY with a revised A$1.00 target price.

This target indicates over 52% upside from current levels. 

The post 3 ASX shares with fresh buy ratings and big upside from Morgans appeared first on The Motley Fool Australia.

More reading

• 37 ASX shares going ex-dividend next week

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

Mineral Resources Ltd (ASX: MIN) shares are back on the radar for passive-income investors.

The lithium miner declared a surprise return of shareholder dividends as part of its FY26 earnings announcement last month. The company last paid shareholders an interim payment back in March 2024.

Mineral Resources posted its strongest financial results in its 20-year history in August. The company said the improvement was driven by Mining Services growth, the ramp-up of its Onslow Iron, and improved lithium performance and prices.

The miner’s annual performance saw its finances return to profit after a difficult FY25, helped by stronger operating performance across the business in FY26. Mineral Resources revenue jumped 44% and underlying EBITDA surged 183%. Meanwhile, underlying NPAT came in at $822 million, versus a $112 million loss a year earlier.

The news puts the miner’s shares firmly back in the spotlight.

But what exactly would it take to earn the passive income you want from Mineral Resources shares?

Let’s investigate, using a $500 monthly passive income as an example.

What passive income does Mineral Resources pay its shareholders?

Mineral Resources has declared a fully-franked final dividend of 83 cents per share for FY26. This represents a 20% payout of underlying NPAT and was much higher than the market expected.

At the Mineral Resources share price of $64.20 at the time of writing, the dividend translates to a yield of around 1.3% before franking credits.

Mineral Resources shares are scheduled to trade ex-dividend on 8 September, with the record date falling on 9 September.

The company will then pay the dividend on 30 September.

So, how many Mineral Resources shares do I need to own to generate $500 per month of passive income?

Using the FY26 total dividend payment of 83 cents per share, investors would need to own around 7,229 Mineral Resources shares in order to earn $500 per month (equivalent to $6,000 per year) in passive income.

What would that cost me?

Using the $64.20 share price at the time of writing, investors would need to invest roughly $464,101 into Mineral Resources shares in order to earn $500 per month in passive income in FY26.

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.

Could the Mineral Resources dividend payout keep climbing higher in FY27 and beyond?

Mineral Resources said the reinstated dividend reflects the company’s confidence that its balance sheet is healthy and that it is generating cash to sustain returns through the cycle.

Management expects volumes to continue growing across its mining services business, as well as iron ore, lithium, and other commodities in FY27.

If that growth comes to fruition and the company’s debt continues to fall, management could be in a strong position to reward shareholders with higher dividends going forward.

The post How many Mineral Resources shares do I need to buy for $500 per month of passive income? appeared first on The Motley Fool Australia.

More reading

• 5 ASX shares downgraded by Morgans post-results
• Buy, hold, sell: South32, Mineral Resources, BHP shares
• Buy, hold, sell: Mineral Resources, Ansell, CBA shares
• ASX 200 mining shares outperform in final week of earnings season
• 3 ASX mining stocks UBS rates as a buy

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.

These two very different companies have brokers excited, with Macquarie and Morgans recently releasing research notes with bullish share prices on each.

Let’s see who they like

Alpha HPA Ltd (ASX: A4N)

Alpha HPA is commercialising a process to manufacture ultra-high purity aluminium for use in high-tech applications.

Stage one of the company’s operations has been operational since late 2022, with the output being used for customer qualification, product validation and process optimisation.

A second stage is under construction, with first production expected for late 2027, and annual production targeted at 10,000 tonnes per year.

The company said in its recent annual report:

Using its proprietary Smart SX Technology, Alpha HPA has pioneered the world’s first application of solvent extraction to aluminium purification, enabling the production of a growing portfolio of ultra-high purity alumina, aluminium nitrate, aluminium hydroxide and synthetic sapphire material. The Company’s products are supplied to global markets including advanced semiconductors, Direct Lithium Extraction (DLE), lithium-ion batteries, pharmaceutical, LED lighting and synthetic sapphire, where exceptional purity and performance are critical.

Macquarie said in its research note that the company’s net loss of $42.7 million for FY26 was ahead of their estimates due to better stage one operating performance and higher grant income.

The broker said data centre construction was driving HPA demand in the semiconductor sector, and Alpha HPA was well-placed to take advantage of this.

Macquarie added:

Alpha is a compelling opportunity for long-term investors giving exposure to the AI theme along with attractive financial metrics at full ramp-up.

The broker has a share price target of $1 on Alpha HPA shares compared to 59.5 cents currently.

ReadyTech Holdings Ltd (ASX: RDY)

This company is a software as a service provider of cloud and AI software used in the education, workforce, government and justice sectors.

The company reported full year revenue of $125 million, at the lower end of revised guidance of $125-$127 million, with underlying EBITDA coming in at $35 million.

The company’s Chief Executive Officer Marc Washbourne said of the result:

FY26 was a year in which we strengthened the foundations for growth, transformed for an AI world and took decisive action on cost and capital allocation. Our result finished within revised guidance, with cash margin reaching what we believe is a low point. Our flagship products continue to compound. That was offset by elevated churn in parts of the mature portfolio, and enterprise customers where contracts are signed but subscription revenue is yet to commence as implementations progress.

The company is guiding to improved revenue of $128-$132 million this financial year.

Broker Morgans said the company was well-placed with its investment cycle having largely peaked.

They added:

Despite having seen more protracted implementation/sales cycles and churn in recent times, we still see RDY in a solid position to deliver growth over coming years as customers seek to modernise their enterprise software and convert from legacy systems. We have a speculative buy rating on the stock.

Morgans has a price target of $2.25 on ReadyTech compared to $1.51 currently.

The post 2 ASX shares tipped by brokers to return 49% to 68% appeared first on The Motley Fool Australia.

More reading

• Experts tip these $3 billion ASX shares to deliver over 75% returns
• Home values just fell for a fifth straight month. Which ASX shares are most exposed?
• WiseTech shares had their best month in a year. Is this a buying opportunity?
• 3 ASX shares with fresh buy ratings and big upside from Morgans
• How many Mineral Resources shares do I need to buy for $500 per month of passive income?

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

Warren Buffett is famous for buying great businesses and holding them for years, sometimes decades. But “buy and hold” doesn’t mean “buy and never sell” your ASX shares.

Buffett has demonstrated that investors should be prepared to change their minds when the facts change. For ASX investors, there are three particularly important reasons to consider selling.

Something better comes along

One of Buffett’s most useful ideas is opportunity cost.

You don’t necessarily need to think a company is bad to sell it. If you own a decent business but another high-quality blue chip offers substantially better growth prospects, stronger economics or a much more attractive valuation, switching can make sense.

Buffett has done exactly this over the years, exiting businesses when he concluded his capital could be deployed more effectively elsewhere.

The same principle applies to ASX shares. If you own a mature company growing earnings at 4% a year on an expensive valuation, while another excellent business offers significantly better prospects at a similar price, it may be time to reconsider where your money is working hardest.

The economics or business proposition changes

This is arguably the most important reason to sell one of your ASX shares. Buffett doesn’t fall in love with a stock ticker. He focuses on the underlying business.

If the competitive advantage disappears, management changes direction, industry economics deteriorate or the company’s prospects are fundamentally different from when you bought it, the original investment thesis may no longer apply.

ASX investors have plenty to consider right now. Banks, for example, remain some of Australia’s most important companies, but changing mortgage demand, competition and interest-rate expectations can alter the earnings outlook of say Commonwealth Bank of Australia (ASX: CBA).

Energy companies like Woodside Energy Group Ltd (ASX: WDS) provide another example. A company can dramatically change its strategy as commodity prices, capital requirements or the global energy landscape shifts.

The lesson is simple: don’t hold a share just because you once loved the story.

When your position size becomes too big

Sometimes the company hasn’t done anything wrong — you’ve simply won too much.

Imagine buying an ASX share that doubles or triples and suddenly represents 35% of your portfolio. The business may still be fantastic, but your portfolio is now heavily dependent on one company.

Buffett has allowed Berkshire Hathaway’s biggest investments to become enormous, but individual investors don’t have Berkshire’s capital base, diversification or financial resources.

Taking some profits from a runaway winner can therefore be sensible risk management. Remember, you can sell a portion without abandoning the investment altogether.

Foolish Takeaway

The Buffett approach isn’t really “never sell”. It’s “know why you own something”.

If a better opportunity emerges, the business proposition changes, or one holding becomes too dominant, selling your ASX shares can be just as rational as buying them in the first place.

The post When to sell your ASX shares? Warren Buffett has 3 answers appeared first on The Motley Fool Australia.

More reading

• Home values just fell for a fifth straight month. Which ASX shares are most exposed?
• How much passive income can I earn off a $630,000 superannuation balance
• How Westpac, ANZ, NAB and CBA shares stacked up in August
• Top 3 ASX dividend shares to buy before they go ex-dividend
• Buy, hold, sell: Mineral Resources, Ansell, CBA shares

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.

BHP Group Ltd (ASX: BHP) shares will trade ex-dividend tomorrow.

That means time is running out for ASX investors who want to bank the mining giant’s supersized final dividend.

In order to be entitled to receive a dividend, you must own the ASX share before its ex-dividend date.

So, if you want to receive BHP’s FY26 final dividend, you’ll need to buy the ASX 200 mining share today.

BHP shares are among 37 stocks going ex-dividend this week.

How much is the BHP dividend?

BHP declared a final dividend of 99 US cents for FY26, which is equivalent to A$1.38 on today’s exchange rate.

The FY26 final BHP dividend is 65% higher than the FY25 final dividend of 91.9 AU cents.

This is the richest final dividend for BHP shares in four years, and equates to a 72% payout ratio.

The full-year dividend totals US$1.72 per BHP share.

That’s a 56% increase, and the largest full-year BHP dividend in four years.

In its FY26 report, BHP said:

We have determined a final dividend of US$5.0 bn.

This brings total cash returns to shareholders announced for the year to US$8.7 bn, which is US$1.72 per share fully franked, the highest in four years.

The miner added:

Including the FY26 final dividend determined, we will have returned >US$115 bn to shareholders since the introduction of the Capital Allocation Framework in 2016.

The ASX 200 iron ore and copper miner is able to dish out bigger dividends this year due to stronger commodity prices.

BHP is now the world’s biggest copper producer, and in FY26 the copper price rose 18%.

The miner is also a major iron ore producer, and the iron ore price rose 7% in FY26.

BHP also produces metallurgical coal, which is used in steelmaking. The coal price rose 39% in FY26.

BHP will pay its FY26 final dividend to shareholders on 23 September.

What did BHP report for FY26?

BHP reported underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) of US$32.9 billion, up 27% on FY25.

The underlying attributable profit was US$13.2 billion, up 30%.

Net operating cash flow came in at US$21.8 billion, up 17% on FY25.

Net debt as of 30 June was US$8.7 billion.

BHP achieved record iron ore production in FY26, while copper accounted for 54% of group EBITDA.

The BHP share price rose 10% during the August reporting season compared to a 1% bump for the S&P/ASX 200 Index (ASX: XJO).

Last week, the BHP share price hit a new record of $68.77 per share.

The post Last chance to grab the supersized BHP dividend today appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: South32, Mineral Resources, BHP shares
• Top 3 ASX shares to buy in September 2026
• Want to bank the boosted BHP dividend? You’d better hurry!
• BHP shares are pulling back from a record high. What now for ASX investors?
• Are these 3 top Betashares ETFs a buy in September?

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

A $630,000 superannuation balance is the amount the Association of Superannuation Funds of Australia (ASFA) estimates Australians need at age 67 to fund a comfortable retirement.

It’s the type of nest egg that many strive for and one that can support a comfortable lifestyle during their retirement years. 

Many Aussies focus hard on building their superannuation balance, ensuring the fund is performing well and adding extra contributions wherever they can.

It’s a solid strategy. But superannuation is more than just a savings pot to draw money from when you retire.

If invested wisely, your superannuation can also generate a passive income.

But how much passive income could the suggested $630,000 balance realistically generate each month?

Let’s take a look.

What passive income can I earn off my $630,000 superannuation balance?

To calculate your potential passive income, you need to multiply your total superannuation balance by the overall dividend yield of your portfolio.

The tricky part is that the answer varies widely depending on what dividend yield you pick.

For example, $630,000 x 3% = $18,900 per year in dividend payments.

And as your dividend yield increases, the passive income you can earn off your $630,000 super balance also increases.  

The figures are also based on cash dividends before any tax or franking credit benefits.

Break it down for me by yield. What could I earn?

We already know what your portfolio can generate if it yields around 3%.

But if your portfolio has a slightly higher dividend yield of around 4%, your passive income will go up too because $630,000 x 4% = $25,200 per year in dividend payments. 

If your superannuation portfolio yields closer to 5%, you could earn $31,500 every year in dividend payments off the same superannuation balance ($630,000 x 5% = $31,500).

At a 6% yield, you could earn an annual passive income closer to $37,800, and at 7%, that could be even higher, at around $44,100.

And so on… 

Give me some options for ASX shares that yield around 4% or 5%

A 4% or 5% yielding portfolio on a $630,000 superannuation balance will earn around $25,200 to $31,500 every year.

That’s a decent income, and there are a lot of quality high-yield ASX shares that yield around that level.

My top picks would be ASX blue chips like National Australia Bank Ltd (ASX: NAB), Rio Tinto Ltd (ASX: RIO), Fortescue Ltd (ASX: FMG), Woodside Energy Group Ltd (ASX: WDS), Bendigo and Adelaide Bank Ltd (ASX: BEN), or Medibank Private Ltd (ASX: MPL). These blue chips are highly reputable stocks that all pay out around 4% to 5%.

Alternatively, defensive stocks like Telstra Group Ltd (ASX: TLS), Transurban Group (ASX: TCL), APA Group (ASX: APA), and TPG Telecom Ltd (ASX: TPG) are a good option because they are able to maintain stable earnings through each part of the economic cycle. And stable earnings translate to a stable dividend payout.

And what about high-yield options closer to 8%?

There are some high-yield options that could fit the bill. A yield around this level on a $630,000 superannuation balance could generate around $50,400 in annual passive income, but it comes with additional risk.

If high-yielding shares are still what you’re after, these would be my top picks.

Your best bet would be to go for an ETF like the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX), BetaShares Global Cybersecurity ETF (ASX: HACK), or the iShares S&P 500 ETF (ASX: IVV). 

If you’re after a single stock, then GQG Partners Inc (ASX: GQG) and IPH Ltd (ASX: IPH) both yield above 8% at the time of writing.

The post How much passive income can I earn off a $630,000 superannuation balance appeared first on The Motley Fool Australia.

More reading

• How Westpac, ANZ, NAB and CBA shares stacked up in August
• Buy, hold, sell: Challenger, APA Group, Mesoblast shares
• Fortescue shares just hit a 52-week low. Is it time to buy?
• Top 3 ASX dividend shares to buy before they go ex-dividend
• Don’t panic if these 9 ASX 200 shares fall today

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 BetaShares Global Cybersecurity ETF, Transurban Group, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Apa Group, Bendigo And Adelaide Bank, Telstra Group, and Transurban Group. The Motley Fool Australia has recommended Gqg Partners, IPH Ltd , and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

August saw National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ), Westpac Banking Corp (ASX: WBC), and Commonwealth Bank of Australia (ASX: CBA) shares all come under pressure.

Indeed, amid a deteriorating outlook for the Aussie economy and housing market, all of the big four S&P/ASX 200 Index (ASX: XJO) bank stocks underperformed the 1.1% gains posted by the ASX 200 in the month just past.

Here’s how they stacked up.

CBA shares trail the pack

CBA shares tumbled 9.9% in August, closing the month trading for $159.90 apiece.

Though we should note that CBA stock traded ex-dividend on 19 August. If we add the final fully-franked dividend of $2.70 a share back in, then the accumulated value of Australia’s biggest bank stock declined by a lesser 8.4%.

CommBank reported its full-year FY 2026 results on 12 August.

CBA achieved a 6.2% year-on-year increase in operating income to $30.2 billion. And the bank’s cash net profit after tax (NPAT) of $11.0 billion was up 7%.

But investors appeared concerned over the outlook, with management noting that household spending is softening while it expects Australia’s economic growth to slow.

CBA shares closed down 0.7% on the day of the results release.

Westpac shares tumble on quarterly update

Westpac shares also just finished a month to forget, tumbling 8.8% to close out August trading for $34.55 apiece.

Westpac released its third-quarter update on 10 August.

Positively, the ASX 200 bank stock reported a 1% year-on-year increase in operating income to $5.7 billion, with the net interest margin (NIM) remaining steady at 1.89%.

On the bottom line, Westpac achieved a quarterly statutory net profit of $1.8 billion, up 3% from the prior quarter.

However, investors will also have noted the bank’s expectations of moderated lending growth in the months ahead.

And the bank could be facing higher non-performing loans.

According to management:

Credit impairment provisions were $5.3 billion as at 30 June 2026, with provisions above expected losses of the base case economic scenario increasing to $2.0 billion.

Like CBA shares, Westpac shares came under pressure following the update, closing the day down 5.9%.

NAB shares fall on lower home loans

NAB shares didn’t escape the selling pain in August either, closing the month down 6.5% to trade for $38.63 each.

NAB shares closed down 4.6% on 17 August following the release of the bank’s own third-quarter results.

Highlights from the quarter included cash earnings of $1.83 billion, up 2% from the first-half quarterly average (excluding large notable items). And NAB achieved a 32% increase in net profit to $1.81 billion.

But investors were favouring their sell buttons with management flagging a decline in the bank’s crucial home lending market.

“The Australian home lending market softened in 3Q26 with our applications down 15% compared with 2Q26,” NAB CEO Andrew Irvine said.

ANZ shares lead the pack

Outperforming NAB, Westpac, and CBA shares in August, though still edging lower, we find ANZ.

ANZ shares closed on 31 August trading for $37.20, down 0.3% over the month.

Unlike the other three big bank stocks, ANZ shares closed up 4.5% on 13 August following the release of the company’s third-quarter update.

While revenue was flat for the quarter, ANZ reported a cash profit of $1.90 billion, up 1% on the quarterly average for the half year ended 31 March.

And investors were favouring their sell buttons, despite ANZ noting a 12% drop in mortgage applications since the Federal Budget’s changes to property taxes.

The post How Westpac, ANZ, NAB and CBA shares stacked up in August appeared first on The Motley Fool Australia.

More reading

• Is the ANZ share price good value in September?
• Buy, hold, sell: Mineral Resources, Ansell, CBA shares
• The RBA could hike rates in September. Which ASX shares are most at risk?
• Are these 3 top Betashares ETFs a buy in September?
• 3 top ASX dividend shares to target in September 

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.