Author: openjargon

Like many ASX blue chip shares on the Australian stock exchange, Coles Group Ltd (ASX: COL) is often selected as an investment thanks to its dividend income potential. Most established, mature and profitable companies on the ASX pay their investors a regular stream of dividend income, and Coles is no different.

In fact, this supermarket operator has one of the better track records of providing dividend income to its investors. Since it spun off from Wesfarmers Ltd (ASX: WES) in late 2018, the company has delivered an annual dividend hike every year since.

Saying that, it has not been all smooth sailing for Coles, and its investors over the past 12 months. Since this time last year, the grocery giant has traded as high as $24.59 a share, and as low as $20.10. At the time of writing, Coles is sitting at $23.31, essentially flat for the day.

With that in mind, let’s dive a little deeper into Coles shares and discuss what kind of dividend yield one can expect from this company right now.

So, over the past 12 months, Coles has paid out two dividends to investors, as is its habit. The first of those came in March, with Coles funding an interim dividend worth 41 cents per share. The second was September’s final dividend, which was worth 37 cents per share. Both payments came with full franking credits attached.

Coles shares: What is the current dividend yield?

This annual total of 78 cents per share for 2026 represents a healthy 13% rise over the 69 cents per share in dividend income that Coles investors enjoyed over 2025.

At the current Coles share price of $23.30, the 79 cents per share in dividends that Coles has doled out this year gives the company a trailing dividend yield of 3.35%.

However, as any prudent dividend investor knows, a trailing dividend yield only tells us what a company has paid out in the past, not what it may provide going forward. Of course, there’s no way to know what kind of dividend any company is going to pay until the company itself announces it.

Saying that, my Fool colleague Tristan recently covered analysts’ views on Coles’ 2027 dividend potential. He reported that CommSec is pencilling in a forecasted consensus of 83.5 cents per share in dividends over 2027. If accurate, that would represent a 7.05% rise over 2026’s payouts. It would also give Coels shares a forward yield of 3.58% at current prices. Let’s see if that turns out to be the case.

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

More reading

• Where to invest $10,000 in ASX dividend shares today
• 9,627 shares of Wesfarmers pay an income equal to the Age Pension
• CBA vs Coles shares: Which is the better buy at age 50?
• Wesfarmers vs Qantas: Which ASX share suits a 60-year-old investor?
• How much is needed in superannuation to target a $100,000 annual passive income?

Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. 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 are rebounding in Monday afternoon trade.

At the time of writing, the iron ore shares are up around 2% and changing hands at $15.62 a piece.

It’s been headwind after headwind for the shares this year, and they’ve fallen mostly consistently throughout 2026 so far, off the back of iron ore price pressure. For the year to date, the shares are down around 29% and 18% lower than this time last year.

For context, the S&P/ASX 200 Index (ASX: XJO) is up around 1% today and up around 1% year to date.

Why are the shares climbing higher today?

There isn’t any price-sensitive news out of the iron ore miner today to explain today’s increase.

But ASX mining shares are trending higher today, driven by an overnight bounce in commodity prices.

The prices of major metals, including Chinese iron ore, copper, and gold, are climbing again. 

Iron ore futures dropped toward CNY 680 per ton late last week, which is the lowest level since October 2022, as Chinese markets reopened after a week-long holiday.

Elsewhere, Copper futures in the US have risen close to a record high of US$6.80 per pound, thanks to threats around global supply and continued speculative demand. 

Gold prices have also climbed as falling oil prices helped alleviate some concerns about rising inflation.

Fortescue is a major global iron ore producer and is also actively expanding its portfolio into copper and green energy. So its share price is heavily influenced by changing commodity prices.

Where to next for Fortescue shares?

Sentiment about the outlook for the ASX miner is pretty neutral

Market Index data shows brokers have a hold rating on Fortescue shares. The $17.88 average target price implies around a 14% upside, at the time of writing.

On TradingView, again, the majority of analysts (9 out of 16) have a hold stance on Fortescue shares. Another three rate the shares as a sell/strong sell, and two rate them as a strong buy.

The average $16.88 target price implies an 8% upside, but some think the shares could climb another 41% to $22.01 over the next 12 months, at the time of writing.

The team at Bell Potter have a hold rating on the shares and recently reduced their price target to $15.80. The broker noted that Fortescue’s latest quarterly update showed lower shipments, impacts from port maintenance, and shipment-to-sales gaps.

Late last week, UBS also confirmed its hold rating on the shares, with a $16.40 target price, following the miner’s latest quarterly update.

Fortescue reported its first-quarter FY27 iron ore shipments were 46.8 million tonnes (Mt), 6% lower than FY26 Q1. 

Cash was US$3.2 billion and net debt was US$2.8 billion on the 30th of September 2026, compared with net debt of US$0.9 billion on the 30th of June 2026.

The post Down 29% so far in 2026: What do brokers tip next for Fortescue shares? appeared first on The Motley Fool Australia.

More reading

• Fortescue vs Rio Tinto: Which ASX mining giant is the better buy today?
• Fortescue vs BHP: Which ASX miner is better for passive income in October?
• 6 ASX shares downgraded by experts this week
• Is the Fortescue share price a bargain buy?
• Buy, hold, sell: Rural Funds Group, Imdex, Fortescue shares

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.

Since mid-May, the S&P/ASX 200 Index (ASX: XJO) has held up relatively well. Despite some volatility along the way, the ASX 200 presently sits about 2% above where it was back on 19 May. However, we cannot say the same for Telstra Group Ltd (ASX: TLS) shares.

Back in May, Telstra had just hit a new 52-week (and multi-year) high of $5.55 a share. Today, those same shares sit at a far less impressive $4.65 each. That’s after the nasty 2.6% plunge that we are witnessing today.

Given that Telstra first started exploring this territory back in September, it might be easy to blame the telco’s full-year earnings that month for the lacklustre reception Telstra shares are still on the pointy end of. To be fair, these earnings didn’t exactly light up the room. Telstra reported a 0.8% drop in revenues to $22.94 billion. Despite that, the company still managed to reveal a 4.9% rise in underlying net profits after tax to $2.5 billion, as well as a 14% increase in cash earnings per share (EPS) to 25.5 cents.

This allowed Telstra to boost its 2026 final dividend by 10.5% to 10.5 cents per share. A $1 billion share buyback program was also announced.

So why then have Telstra shares taken such a dramatic plunge since May? Well, we can’t totally rule out a poor reception of these earnings. After all, if Telstra’s revenues continue to flatline in the years ahead, its current price-to-earnings (P/E) ratio of 23.4 arguably starts to look a little generous.

However, I think there’s another factor at play here: interest rates.

Telstra shares fall as interest rates rise

Telstra is first and foremost known as one of the ASX’s best and most reliable dividend payers. Many, if not most, of those Australian investors who own Telstra shares do so with the expectation of receiving fat dividend cheques, with at least some franking credits attached.

As we’ve already touched on, Telstra is continuing to deliver in this department. But perhaps the problem is the growing attractiveness of alternative sources of passive income.

2026 has been a dramatic year when it comes to interest rates. The Reserve Bank of Australia (RBA) has already hiked rates three times this year. Although the cash rate now sits at a 15-year high of 4.6%, many commentators anticipate it hasn’t finished its current cycle yet. Most Australians understandably associate high interest rates with more painful mortgage repayments. However, this 4.6% cash rate has also resulted in the returns from term deposits and savings accounts exploding. Today, and for the first time in 15 years, one can open a term deposit with an interest rate of over 5.5% per annum – unheard of for years.

Back when Telstra was sitting at $5.55 a share, it would have only been offering a dividend yield of under 3.8%. You can see why more than a few investors would just take the risk-free 5% return instead.

Perhaps the company is finding more buyers at the current price of $4.65. That offers up a much improved 4.52% yield. But as a company that could be described as a bond proxy, I don’t find it at all surprising to see demand for Telstra shares drop off when risk-free passive income is looking so lucrative. Unless Telstra can start growing its revenues at a healthy rate again, or until interest rates start coming down, I’m not expecting to see Telstra shares back above $5 anytime soon.

The post Why have Telstra shares lost 16% since May? appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $100,000 annual passive income?
• How much superannuation do I need to generate $100,000 per year in passive income?
• Woolworths Group vs Telstra Group: Which ASX blue chip pays better passive income?
• My favourite ASX passive income shares for retirees
• How much passive income can I earn from a $950,000 superannuation balance?

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

It’s important to know how much superannuation you have accumulated at any age.

But your late 50s and 60s are a crossroads in life when the amount you have saved will directly affect the type of retirement lifestyle you live when you decide to stop working.

At age 55, many Aussies are approaching their final decade of working life. At this point, you’re just five years away from your preservation age. That’s when you can access your super, provided you’ve stopped working. 

By age 65, you can get full access to your superannuation regardless of whether you’re still working or not.  

So, how does your balance compare to other Aussies the same age? And how does it compare to how much super you should actually have at age 55 and age 65? 

Let’s take a look.

What’s the average superannuation balance of Aussies aged 55 in Australia?

There aren’t exact figures for the average balance at age 55, but the Association of Superannuation Funds of Australia (ASFA) has a rough guide.

The data shows that the average Australian male aged 55 to 59 has around $319,743 in their superannuation.

Women in the same age bracket have a lot less. That’s because women tend to take time out of the workforce or work reduced hours to raise children or care for other family members. This means they earn less superannuation income and earn less compound growth on a lower balance. 

The average balance for Australian women aged 55 to 59 is around $242,945. That’s a gap of around $77,000 compared to men the same age.

How does your super balance stack up with men and women the same age as you?

What’s the average superannuation balance for Aussies aged 65 in Australia?

Again, ASFA provides a guide. The data shows that the average Australian male aged 65 to 69 has around $448,518 in their superannuation.

Women in the same age bracket have closer to $392,274. By this age bracket, it looks like some women have started to catch up. Perhaps that’s because many have returned to work full-time over the past decade as their children have grown older. 

But that’s still a gap of over $56,000 compared to men the same age.

How much do you need at age 55 to be able to retire comfortably?

ASFA data concludes that a comfortable retirement is expected to cost around $56,166 per year for individuals and $78,998 combined per year for couples.

To afford that, by retirement, a single person will need a superannuation balance of around $630,000. Meanwhile, couples will need around $730,000.

The data assumes you’ll begin retirement from age 67, will earn a part Age Pension, and that you own your home outright.

In order to be on track to reach that $630,000 goal, Australians should have at least $348,500 in their superannuation at age 55.

That’s a lot less than the average balances of both men and women at age 55.

How much do you need at age 65 to retire comfortably?

I’ve run the numbers for what you should have at age 65, too.

Again, ASFA expects that you’ll retire at age 67, will earn a part-Age Pension, and that you own your home outright.

In order to be considered as on track to reach $650,000 within the next two years, Australians at age 65 should have around $578,000 in their superannuation.

How does your balance compare now?

The post The average superannuation balance at age 55 versus 65 in Australia appeared first on The Motley Fool Australia.

More reading

• Down 29% so far in 2026: What do brokers tip next for Fortescue shares?
• Why have Telstra shares lost 16% since May?
• Fortescue vs Rio Tinto: Which ASX mining giant is the better buy today?
• Should you buy Lynas and this ASX share at their 52-week lows?
• Nextdc vs WiseTech: Which ASX tech stock is better for a 25 year old investor?

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.

Fortescue Ltd vs Rio Tinto shares: Which mining giant should you buy?

The battle of the mining titans on the ASX often boils down to two names: Fortescue Ltd (ASX: FMG) and Rio Tinto Ltd (ASX: RIO). For Aussie investors seeking exposure to resources, these two offer world-class scale, strong dividend histories, and a front-row seat to the global iron ore trade. But if you’re pondering “Fortescue vs Rio Tinto shares,” what makes one stand out over the other right now? Here’s my take.

The case for Fortescue

Fortescue is a pure-play iron ore producer based in Western Australia’s Pilbara region. Over the past two decades, it’s evolved from a latecomer into the world’s fourth-largest iron ore miner, with operations including Chichester, Solomon, and Western Hubs, plus its own port and railway infrastructure. Fortescue’s focus on efficiency and cost control means it’s earned its reputation as a very profitable, high-yielding miner.

What leaps out in the numbers is Fortescue’s fully franked 7.04% dividend yield, one of the highest yields on the ASX, supported by a payout of $1.08 per share. The company sits on a market cap of $47.23 billion, with a P/E ratio of 11.47 — noticeably lower than Rio Tinto’s. Fortescue manages integrated infrastructure from mine to port, giving it a cost advantage over some rivals.

Despite these strengths, Fortescue shares are down 25.4% year to date, reflecting recent commodity price volatility and market sentiment. Still, for investors hoping for strong passive income from resources, the mix of yield, franking, and scale is compelling.

The case for Rio Tinto

Rio Tinto is a giant in global mining, with a diversified portfolio beyond iron ore. Alongside its huge Pilbara iron ore operation, Rio produces aluminium, copper, and emerging minerals like lithium. This breadth not only gives Rio some insulation from wobbly iron ore prices, but also means it taps into global trends around electrification and infrastructure.

Rio’s market cap leads the sector at $60.37 billion, and its shares currently yield 4.09%, fully franked. The company’s annual dividend per share is a hefty $6.63, and its P/E ratio sits at 15.31 — higher than Fortescue’s, perhaps reflecting Rio’s diversification and consistent profit stream. Rio has been a fixture on the ASX since 1962 and has grown dramatically through both acquisition and organic means.

What’s also striking is recent momentum: Rio shares are up 15.1% year to date, far outpacing Fortescue. This price action hints that the market is warming to Rio’s more diversified model, or at least viewing it as a safer bet amid sector turbulence.

Valuation comparison

To make the key differences clear, here’s how the metrics stack up:

Metric	Fortescue	Rio Tinto
Market Cap	$47.23 billion	$60.37 billion
P/E Ratio	11.47	15.31
Dividend Yield	7.04% (100% franked)	4.09% (100% franked)
Dividend per Share	$1.08	$6.63
Earnings per Share	0.931	7.382

Note: While EPS for both companies is positive, the P/E ratios reflect materially different share price levels and capital structures, not just profitability.

It’s clear that Fortescue offers a juicier yield and a lower P/E, but Rio claims a bigger market cap and stronger recent price momentum. Both companies pay fully franked dividends.

Recent share price momentum

Comparing recent share price performance up to 9 October 2026:

• Fortescue closed at $15.34, falling 2.85% on the day and down 25.4% year to date.
• Rio Tinto closed at $162.37, rising 0.25% on the day and up 15.1% year to date.

These numbers make it clear that while Rio has delivered strong gains in 2026 so far, Fortescue has faced heavy selling pressure, likely due to macro and sector-specific headwinds.

Which is the better buy?

If I had to make the call today, my pick would be Rio Tinto. The reason is twofold: firstly, the diversified business spreads risk across various minerals and markets, meaning it’s not just a play on iron ore prices. Secondly, that 15.1% year-to-date return shows clear positive momentum, suggesting the market appreciates Rio’s current position and outlook.

That said, Fortescue’s much higher dividend yield, lower P/E, and deep franking credits could make it a better income play for investors who believe iron ore prices will rebound. But the steep -25.4% YTD return makes me cautious for now, as it may signal deeper sector weakness or company-specific challenges.

Bottom line: I’m leaning toward Rio Tinto as the better-balanced and more resilient choice today — but wouldn’t rule out Fortescue as an option for yield hunters chasing a recovery.

The post Fortescue vs Rio Tinto: Which ASX mining giant is the better buy today? appeared first on The Motley Fool Australia.

More reading

• Down 29% so far in 2026: What do brokers tip next for Fortescue shares?
• Fortescue vs BHP: Which ASX miner is better for passive income in October?
• 9 ASX 200 shares upgraded by brokers this week
• 6 ASX shares downgraded by experts this week
• Is the Fortescue share price a bargain buy?

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 draft. 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.

Two well-known ASX shares have fallen to fresh 52-week lows on Monday, leaving investors with a decision to make.

Both companies have faced heavy selling pressure, but their longer-term earnings outlooks suggest there could be opportunities at current prices.

So, would I buy either of them today?

Lynas Rare Earths Ltd (ASX: LYC)

Lynas shares have fallen to a 52-week low of $12.14 on Monday, leaving them down around 40% over the past 12 months.

I think the rare earths producer has an interesting long-term opportunity. Rare earths elements are essential for a range of technologies, including electric vehicles, wind turbines, and defence equipment.

With governments increasingly focused on securing supply chains outside China, Lynas is well-positioned as an established producer and processor of rare earths materials.

The company is also looking to expand its operations. Earlier this month, Lynas announced an agreement to acquire Meteoric Resources Ltd (ASX: MEI), which owns the Caldeira rare earths project in Brazil.

The acquisition could give Lynas access to an important new source of heavy rare earths and support its longer-term expansion plans. But the market does not appear particularly enthusiastic about the deal so far.

Investors may be concerned about the additional investment required to develop Caldeira, the challenges of processing a different type of rare earths resource, and the dilution associated with the all-share acquisition.

I think those concerns are reasonable, although the longer-term earnings outlook remains encouraging. Consensus forecasts point to earnings per share (EPS) of 58.3 cents in FY27, increasing to 92.9 cents in FY28 and $1.13 in FY29.

At $12.14, those estimates put Lynas on approximately 21 times FY27 earnings, falling to just under 11 times FY29 earnings. That could prove cheap if the company delivers the expected growth.

For an investor with a diversified portfolio who wants exposure to the rare earths industry, I think Lynas could be a buy at current levels.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare shares have also been under pressure, falling to a 52-week low of $18.11 on Monday. That leaves the healthcare company’s shares down approximately 18% in 2026.

Sonic operates a global network of pathology and diagnostic businesses, providing essential medical services across several countries.

I like the underlying demand for these services. Ageing populations, advances in medical testing, and the growing importance of early diagnosis should support the industry over time.

But Sonic has some operational challenges to work through. These include improving the performance of its US operations, integrating acquisitions, and managing regulatory and reimbursement changes in certain markets.

I think these issues help explain why investors have become more cautious. Nevertheless, there is some potential for earnings to improve as management makes progress. Consensus forecasts point to EPS of $1.14 in FY27, increasing to $1.26 in FY28 and $1.31 in FY29.

For income investors, the dividend outlook also looks interesting. Analysts expect partially franked dividends of $1.05 per share in FY27, $1.11 in FY28, and $1.14 in FY29.

At $18.11, those forecasts represent potential dividend yields of approximately 5.8%, 6.1%, and 6.3%, respectively.

I think that is a generous level of income, although the relatively high proportion of earnings being paid out leaves limited room for disappointment.

Sonic could therefore be worth considering for patient income investors who are comfortable waiting for the business to improve.

Foolish takeaway

I think both shares deserve a closer look following their recent falls.

For me, Lynas offers the more exciting growth opportunity, although its performance could be unpredictable.

Sonic’s potential dividend yield is certainly tempting, but I would want to see more progress on its operational challenges before becoming particularly enthusiastic about the shares.

The post Should you buy Lynas and this ASX share at their 52-week lows? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• 9 ASX 200 shares upgraded by brokers this week
• Ramsay Health Care vs Sonic Healthcare: Which healthcare stock is better value?
• Why are Lynas Rare Earths shares crashing 6% today?
• Which junior ASX mining stock has surged 50% on big news?

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Nextdc vs WiseTech shares: Which ASX tech stock stacks up for young investors?

If you’re 25 and thinking about backing a big Aussie tech name, it’s hard to go past the heavyweight duo of Nextdc Ltd (ASX: NXT) and WiseTech Global Ltd (ASX: WTC). Both play crucial roles in Australia’s digital future, but which one should make the cut in your portfolio? Here’s how these two market darlings measure up on the numbers that matter.

The case for Nextdc

Nextdc Ltd operates data centres across Australia, New Zealand, and Southeast Asia, serving organisations that need secure, scalable places to run and connect servers. Its core offering is co-location — letting businesses house their tech hardware in specialist facilities with top-shelf physical security, cooling, power, and network interconnection. As of its company profile, Nextdc was serving more than 1,700 customers, from small enterprises through to major cloud providers.

From a fundamentals perspective, Nextdc stands out for:

• A market cap of $7.88 billion, making it a formidable presence among ASX tech stocks
• An earnings per share (EPS) of $0.122
• No dividend payout, meaning all earnings are reinvested for growth

The company’s focus has been on expanding infrastructure and capturing the growing demand for cloud and data services, instead of returning capital to shareholders via dividends.

The case for WiseTech Global

WiseTech is best known for its global logistics software platforms, including CargoWise One, which is used by big names in freight forwarding such as DHL and Toll. Headquartered in Sydney and operating worldwide, WiseTech develops mission-critical systems that help move goods through supply chains more efficiently.

Key WiseTech fundamentals include:

• A market cap of $11.31 billion, making it even larger than Nextdc
• An earnings per share (EPS) of $0.485
• A history of fully franked dividends, with a 0.65% current yield and a recently paid final dividend of $0.1231 per share

WiseTech has consistently expanded its dividend, paying fully franked distributions for years — an uncommon feature among local tech leaders.

Valuation comparison

Let’s hold up the key numbers side by side:

	Nextdc	WiseTech
Market Cap	$7.88 billion	$11.31 billion
P/E Ratio	85.00	44.00
Dividend Yield	0.00%	0.65% (100% franked)
Earnings per Share (EPS)	$0.122	$0.485
Franking	–	100%

Note: The P/E and EPS figures for each company are as reported. If you notice a mismatch in how these metrics relate, remember that P/E ratios can use normalised or forward earnings, so small inconsistencies may crop up in reported numbers.

Nextdc trades on a higher P/E multiple compared to WiseTech, despite not offering a dividend. Meanwhile, WiseTech’s ability to deliver dividends — especially fully franked — is rare among tech stocks, and may reflect a more established, cash-generative business.

Recent share price momentum

Comparing recent share price momentum up to 9 October 2026:

• Nextdc closed at $10.37, up 0.88% for the day
• WiseTech Global closed at $33.63, up 4.25% for the day
• Year to date, Nextdc shares are down 15.9%
• Year to date, WiseTech shares are down a steeper 50.6%

Both companies enjoyed gains on the day, but year-to-date returns show hefty declines, especially for WiseTech.

Which is the better buy?

For a 25-year-old investor, I’m looking for a mix of growth potential, resilience, and maybe even a little passive income. Both these tech heavyweights have had a rough trot in 2026, but the falls have been much sharper for WiseTech. Nextdc trades at a higher P/E with no dividend, suggesting a “growth at all costs” proposition — and if you’re excited by the data infrastructure sector, that strategy may appeal. On the other hand, WiseTech is more attractively priced based on its P/E and delivers a fully franked dividend, which is a strong plus for compounding returns over time.

Personally, I’d lean toward WiseTech as my pick for a young investor. The lower P/E, consistent (albeit modest) dividend, and global software reach look like a more balanced, sustainable package. That said, this story could flip again if Nextdc turns its impressive infrastructure footprint into faster bottom-line growth down the track. For now though, I think WiseTech edges it — but both stocks offer something for tech-hungry ASX investors willing to stomach a bit of volatility.

The post Nextdc vs WiseTech: Which ASX tech stock is better for a 25 year old investor? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Mesoblast, Transurban, NextDC shares
• Here are the top 10 ASX 200 shares today
• 6 ASX shares to buy in today’s weak market: experts
• Nextdc vs Macquarie Technology Group: Which data centre share shines brighter?
• Could WiseTech shares be worth $50 again?

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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. 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.

With 2027 approaching, I think now is a good time for income investors to start looking at which ASX dividend shares could deliver attractive income next year.

There are plenty of companies offering generous dividend yields, but finding the best opportunities takes a little more work.

Here is how I would approach the search.

Start with the business

The first thing I would look for is a business that can generate dependable earnings and cash flow.

After all, dividends need to be funded by something.

Companies with established market positions, consistent demand, and manageable debt are generally a good place to start.

For example, Commonwealth Bank of Australia (ASX: CBA) has a substantial customer base across mortgages and deposits, helping it generate the profits needed to support regular dividends.

Telstra Group Ltd (ASX: TLS) is another example, with its telecommunications services providing an established source of customer demand.

I think businesses like these are worth considering because their underlying operations provide a reasonable foundation for future payouts.

Of course, even strong companies can experience difficult periods, so I would still want to examine their financial position carefully.

Look at where dividends are heading

For 2027, I would pay particular attention to what analysts expect companies to earn and distribute over the next few years.

A share offering a 6% yield today might look attractive, but that income becomes less impressive if profits are expected to fall and the dividend needs to be reduced.

I would be more interested in businesses where earnings are forecast to grow and dividends could follow.

I would also look at how much of those earnings are being paid to shareholders.

A company distributing almost all its profits may have limited room to increase dividends, particularly if it needs to invest heavily in its operations.

Ideally, I would want a business that can reward shareholders while retaining enough cash to support future growth.

Consider the economic outlook

The broader economy will also influence my choices. Interest rates, household spending, and commodity prices can all have a significant impact on company earnings and dividends.

For example, higher interest rates can affect bank profitability in several ways, including lending margins, credit demand, and borrower stress.

Meanwhile, mining companies such as BHP Group Ltd (ASX: BHP) can generate substantial dividends when commodity markets are strong, but those payouts can fluctuate considerably.

I would therefore consider how each ASX dividend share might perform under the economic conditions we could face in 2027.

Having income from businesses across several industries could also help reduce reliance on any single part of the economy.

Find the right price

Finally, I would consider the share price. A great dividend-paying company can still be a disappointing investment if investors pay too much for it.

I would compare the forecast dividend with the current share price to understand the potential yield, while also considering whether the business offers reasonable value.

Franking credits would be another factor for Australian income investors, depending on their individual circumstances.

For me, the strongest candidates would combine an attractive starting yield with a realistic opportunity for that income to grow.

Foolish takeaway

I think the best ASX dividend shares for 2027 will be those with the financial strength to keep rewarding shareholders.

A generous yield is certainly welcome, but I would be particularly interested in companies that can maintain their dividends through difficult conditions and potentially increase them over time.

That is where I would begin my search.

The post How I’ll find the best ASX dividend shares for 2027 appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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 Telstra Group. 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.

MotorCycle Holdings Ltd (ASX: MTO) shares have underperformed over the past year, but after a recent investor day, the analyst team at Morgans believes a rerating might be on the cards.

The broker has just released a new research report into the company, with a buy recommendation and a bullish share price target, to add to the healthy 7.1% dividend yield the company pays.

I’ll get to the specifics of the share price target shortly. First, let’s look at how the company has been travelling.

Record year for MotorCycle Holdings

As the name suggests, MotorCycle Holdings sells motorcycles and other recreational vehicles, such as personal watercraft and all-terrain vehicles, as well as parts and accessories.

Last financial year, the company reported record revenue of $788.7 million, up 21.3% on the previous year, and booked a net profit of $24.1 million, up 33.8%.

The company also moved from a net debt position of $9 million to having net cash of $13 million at the end of June this year.

Chief Executive Officer Matthew Wiesner said while releasing the annual results that it had been “an exceptional year of growth and strategic advancement for MotorCycle Holdings”.

He added:

Our market leadership position strengthened considerably during FY2026 through the continued growth in our wholesale vehicle distribution businesses across ANZ and the acquisition of select business assets of the Peter Stevens Group which was completed on 31 July. It enhances the Group’s national footprint, provides stronger relationships with OEMs, introduces new products and categories and increases our market share.

Mr Wiesner added that the company’s wholesale division was going from strength to strength, with record sales of 20,127 units, up 15% year on year.

MotorCycle Holdings shares looking cheap

Morgans said in their research note that the investor day “reinforced a business transformed in scale and mix, with wholesale driving earnings in a challenging market, retail and data offering the next leg of improvement, and FY31 targets giving clarity on the growth trajectory ahead”.

The broker said MotorCycle Holdings had set a revenue target of $1.2 billion for FY31, pointing to 8% sales growth per year over a five-year period.

They said they were encouraged by the clear strategy and added:

We think the market overlooks MTO’s wholesale business, which has meaningful growth levers across product, categories and partnerships. We see scope for Retail upside from Harley-Davidson scale, ongoing brand rationalisation and data and systems integration. Double-digit earnings growth and a net cash balance sheet look compelling.

Morgans has a price target of $4.30 for MotorCycle Holdings shares compared to $2.71 currently.

If achieved, this would be a 58.6% return.

The post This high-dividend ASX small cap could rise more than 50%: Broker appeared first on The Motley Fool Australia.

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• Nextdc vs WiseTech: Which ASX tech stock is better for a 25 year old investor?
• How I’ll find the best ASX dividend shares for 2027
• CSL shares: Buy, hold, or sell?
• Down more than 50%, are Zip shares too cheap to ignore?
• Tuas vs Temple & Webster: Which beaten-down ASX share offers better value?

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 recommended Harley-Davidson. The Motley Fool Australia has recommended MotorCycle. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL) shares have staged a remarkable recovery over the past few months.

After a difficult period for the healthcare giant, the share price has rebounded strongly as investors have become more optimistic about its future.

But with much of that recovery already behind us, is CSL still worth buying?

Here’s how I see it.

Why I still like CSL

One of the biggest reasons I remain positive on CSL is the strength of its underlying business.

The company is a global leader in plasma-derived medicines, including immunoglobulin therapies used to treat patients with immune deficiencies and other serious medical conditions.

Demand for these treatments has been growing, and I think there is considerable scope for that to continue as diagnosis rates improve and more patients gain access to treatment.

CSL is also particularly well positioned to meet this demand.

Building a global plasma collection network and the manufacturing facilities required to produce these medicines takes enormous investment, specialist knowledge, and regulatory approval.

That gives CSL a competitive position that would be difficult for another company to replicate.

What I would like to see over the next few years is the company making better use of those advantages.

Plasma collection and processing costs have weighed on profitability, and improving efficiency across the network should help CSL generate stronger returns from growing demand.

Encouragingly, management is continuing to address this.

Last week, CSL announced an expanded relationship with Haemonetics, with plans to roll out its latest plasma collection technology across the company’s US collection centres by the end of 2027.

This is one of several initiatives aimed at improving collection efficiency, and I think these incremental improvements could add up over time.

Alongside the development and commercialisation of newer medicines, they give CSL several ways to strengthen earnings through to 2030.

What does the earnings outlook suggest?

I think the next few years should see CSL steadily rebuild its earnings.

Consensus forecasts point to earnings per share (EPS) of $8.96 in FY27, increasing to $9.50 in FY28 and $10.03 in FY29.

That represents annual earnings growth of approximately 6% between FY27 and FY29.

It is a relatively modest pace, but I think it provides a reasonable foundation for a business of CSL’s size.

There is also potential for stronger growth if plasma collection efficiency improves faster than expected, margins recover, or newer products deliver better results.

Of course, none of that is guaranteed. CSL still needs to execute its recovery plans, manage costs, and navigate the challenges that come with developing and commercialising medicines.

But I think the direction of the business looks positive.

Are CSL shares still good value?

This is where I think investors need to adjust their expectations.

CSL shares are trading around $184.65 on Monday, more than double their 52-week low of $90.

That is a substantial recovery, although the shares remain below their 52-week high of $222.47.

At today’s price, CSL trades on a P/E ratio of approximately 21 times forecast FY27 earnings, falling to around 18 times FY29 earnings.

I would no longer describe that as a bargain valuation.

The market is already pricing in some improvement, and I think investors should expect a more gradual recovery in the share price from here.

Nevertheless, I am comfortable paying that sort of multiple for a global healthcare leader with established competitive advantages and a reasonable outlook for earnings growth.

If CSL continues to improve profitability and grow earnings into 2030, I think shareholders could still enjoy good returns over the next few years.

Foolish takeaway

CSL is a buy for me, although the opportunity looks quite different from when the shares were trading closer to $90.

I think the business has plenty of room to improve, particularly as its plasma operations become more efficient and demand for its medicines continues growing.

At around $185, I would be happy to buy CSL shares and give the company time to deliver on that potential through to 2030.

The post CSL shares: Buy, hold, or sell? appeared first on The Motley Fool Australia.

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