Author: openjargon

S&P/ASX 200 Index (ASX: XJO) shares are up 0.4% to 8,764.6 points on Tuesday.

Among the 11 market sectors, the technology sector is in the lead today, up 2.3%.

The energy sector is the laggard, down 0.9%. 

Let’s check out some new ratings on ASX shares today.

Netwealth Ltd (ASX: NWL)

The Netwealth share price is $19.09, up 1.4% today and down 38% over 12 months. 

Dylan Evans from Catapult Wealth has a buy rating on this ASX financial share. 

Evans said (courtesy The Bull): 

The company’s full year 2026 results continued to deliver strong growth, with the platform’s funds under administration increasing 20.3 per cent to $135.7 billion and earnings per share growing 16 per cent to 55.2 cents.

Despite these strong results, the share price has fallen significantly, most likely and partially in response to a compensation payout of about $101 million to members in the collapsed First Guardian Master Fund.

Share price weakness presents an opportunity, as Netwealth still holds a net cash position and is poised to generate strong revenue growth moving forward.

Healius Ltd (ASX: HLS)

The Healius share price is steady at 38 cents, down 53% over 12 months. 

Ord Minnett has a hold rating on this ASX healthcare share. 

In a new note, the broker said: 

Revenues rose 2% to $1.4 billion, in-line with consensus, while underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew 8% to $259 million, 1% shy of consensus. 

The FY26 EBIT margin of 1.8% was below consensus expectations of 2.0% reflecting the burden of a largely fixed-cost operating base.

Management has made progress in controlling costs, especially labour, but will need to do more if it is to offset headwinds from continued weak volumes and the Fair Work Commission’s (FWC) gender-based undervaluation decision on wages.

We increase interest cost assumptions which lowers our earnings estimates, and we do not see HLS returning to profitability until FY28.

Reflecting the earnings downgrades, the target price has been reduced from $0.56 to $0.49.

Tabcorp Holdings Ltd (ASX: TAH)

The Tabcorp share price is 96 cents, up 4.4% today and down 3% over 12 months. 

Evans has a sell rating on this ASX consumer discretionary share. 

The analyst said: 

The company generated group revenue of $2.636 billion in full year 2026, up 0.8 per cent on the prior corresponding period. Group EBITDA of $431.7 million was up 10.3 per cent.

In our view, a major challenge for Tabcorp is the highly competitive gambling industry and the underlying trend towards digital wagering amid the risk of potentially tighter regulations.

The company expects domestic wagering turnover growth in fiscal year 2027 to be broadly consistent with fiscal year 2026, excluding the FIFA World Cup.

The shares have fallen from $1.17 on May 1 to trade at 90 cents on September 17. Other stocks appeal more at this stage of the cycle.

The post Buy, hold, sell: Netwealth, Tabcorp, Healius shares appeared first on The Motley Fool Australia.

More reading

• Should I buy Coles shares for passive income?
• Sell alert! Why this expert is calling time on Tabcorp and NAB shares
• 2 ASX 200 shares to buy and 1 to sell now
• Netwealth Group vs HUB24: Which financial platform is better from an investor’s perspective?
• Down 40%: Why I’d buy this ASX 200 share before sentiment improves

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 positions in and has recommended Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. 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) is one of the ASX shares I would be happy to own heading into 2027.

The mining giant already has a collection of large, high-quality assets, but I think there are also some interesting growth opportunities ahead.

Here are three reasons I would buy BHP shares.

Copper could become increasingly important

Copper is probably the part of BHP I am most interested in over the next decade.

The metal is needed across electricity networks, renewable energy, electric vehicles, data centres, and a wide range of other infrastructure.

At the same time, bringing major new copper mines into production can take many years.

That puts established producers such as BHP in a strong position.

The company already has significant copper operations and the expertise to invest further as demand grows. I think that could make copper a much bigger contributor to BHP over time.

Commodity prices will always move around, but I like owning an established producer rather than trying to guess which early-stage copper project might eventually succeed.

BHP is still investing for the future

I also like that BHP is not relying solely on its existing mines.

The company continues to put capital into projects that could support production for decades.

Its Jansen potash development in Canada is one example. Potash is used in fertiliser, giving BHP exposure to a market driven by global food production rather than the same forces that influence iron ore or copper.

For me, this is an interesting addition to the portfolio.

BHP already has enormous exposure to metals and minerals used in construction and industrial activity. Building a meaningful potash business could give it another source of earnings over the long term.

Major projects come with execution risks and require substantial investment before they begin generating returns.

But BHP has the financial strength to pursue opportunities of this scale, which is one of the reasons I am comfortable taking a long-term view.

Scale gives BHP plenty of options

The final reason is BHP’s existing strength.

Its large iron ore operations can generate substantial cash flow when market conditions are supportive, while the company also has exposure to copper and other commodities.

That cash gives management choices.

BHP can reinvest in existing assets, develop new projects, pursue acquisitions when opportunities arise, strengthen the balance sheet, or return money to shareholders.

I think that flexibility is particularly valuable in mining, where commodity cycles can create opportunities for companies with the financial capacity to keep investing when conditions become more difficult.

There will still be weaker periods for commodity prices, and BHP’s earnings and dividends will move around with them.

But I think its scale puts the company in a strong position to keep building the business through those cycles.

Foolish takeaway

BHP is the type of share I would be comfortable buying heading into 2027 and then leaving alone for years.

I like the growing copper opportunity, investment in new areas such as potash, and the financial strength of the existing business.

There will inevitably be ups and downs along the way, but I think BHP has plenty of ways to be a bigger and stronger company a decade from now.

The post 3 reasons to buy BHP shares for 2027 appeared first on The Motley Fool Australia.

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• BHP Group vs Rio Tinto shares: Which pays better dividends?
• Up 52% and paying dividends: Are BHP shares a buy, hold, or sell today?
• BHP shares are up 53%. Here are 5 reasons why they may not be done yet
• Buy, hold, sell: Orica, GQG Partners, BHP shares
• If I invest $15,000 in BHP shares, how much passive income will I receive in 2027?

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 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.

Capstone Copper Corp (ASX: CSC) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) copper stock closed yesterday trading for $14.55. In morning trade on Tuesday, shares are changing hands for $14.78 apiece, up 1.6%.

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

Here’s what’s catching investor interest today.

Capstone Copper shares lift on asset sale

Capstone Copper shares are lifting after the miner announced that it has entered into a definitive agreement to sell its Cozamin copper-silver zinc-lead mine, located in Mexico.

Capstone said that Luca Mining Corp will pay up to US$385 million (AU$542.3 million) in total consideration for the mine.

The ASX 200 copper stock noted that figure is comprised of:

• US$275 million in upfront cash, subject to customary closing adjustments
• US$15 million in Luca shares, to be issued to Capstone at closing
• US$35 million in deferred consideration, to be received on the first anniversary of closing
• And up to US$60 million in contingent cash consideration tied to annual average copper prices

Capstone said it will use the fund to strengthen its balance sheet and as well as support its growth pipeline.

What did management say?

Commenting on the $542 million divestment helping boost Capstone Copper shares today, president and CEO Cashel Meagher said, “Cozamin has been an important part of our portfolio, providing stability and strong cash flows as Capstone has matured into a diversified copper producer.”

Meagher added:

The transaction optimises our portfolio and further strengthens our balance sheet, enabling us to redeploy capital into our high-return growth projects and allowing leadership to focus on the opportunities we believe will create the most value for our shareholders. It is an ideal time to streamline our portfolio through this divestiture as we advance towards transformational copper growth in Chile and the United States.

We are also pleased to retain exposure to the exploration upside at Cozamin, through our shareholding in Luca, following completion of the Transaction. Given the strong operational track record of the Luca team in Mexico, we believe they will be excellent stewards of the mine and are well placed to unlock its full potential.

What’s happening with the copper price?

Capstone Copper shares have surged 33.5% since this time last year, supported in part by soaring global copper prices.

The red metal is back near all-time highs today, trading for US$14,661 per tonne. That sees the copper price up a whopping 47% in 12 months, spurred by spiking demand from data centres, EVs and the ongoing energy transition.

The post Capstone Copper shares take off on $542 million divestment news appeared first on The Motley Fool Australia.

More reading

• Copper has overtaken iron ore – Here are the top copper shares to target
• Down almost 10%! Why are ASX copper shares tanking?
• Here are the top 10 ASX 200 shares today

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

WiseTech Global Ltd (ASX: WTC) shares have fallen a long way from their previous highs.

The logistics software company is trading around $31.77 on Tuesday, leaving the WiseTech share price well below where it has traded in recent years.

Could it recover to $50 in 2027?

The earnings outlook is interesting

At first glance, a move from $31.77 to $50 looks ambitious. It would require the WiseTech share price to rise around 57%.

But I think the earnings outlook could be supportive of a major re-rating that underpins a large rise.

Consensus forecasts point to earnings per share of $1.42 in FY27, followed by $1.88 in FY28 and $2.28 in FY29.

At today’s price, WiseTech is trading on a PE ratio of around 22 times forecast FY27 earnings. That falls to roughly 17 times FY28 earnings and only 14 times FY29 earnings.

For a global technology business expected to grow earnings at that sort of rate, those multiples look quite low to me.

In fact, I think the current valuation suggests the market is not fully convinced WiseTech will deliver those forecasts.

That is understandable. Forecasts can change, and investors have good reason to wait for evidence that the expected earnings growth is actually coming through.

But it also creates an opportunity if WiseTech does deliver.

What would $50 look like?

At $50, the WiseTech share price would trade at around 35 times forecast FY27 earnings.

That would be a much higher valuation than today, but the picture changes as we look further ahead.

Based on the current forecasts, a $50 share price would represent around 27 times FY28 earnings and 22 times FY29 earnings.

I do not think those valuations would look unreasonable if WiseTech were clearly on track to produce the expected growth.

That is why I can see a path to $50.

There is still plenty of uncertainty

WiseTech still has to deliver the earnings growth analysts are expecting. If profits fall short, the valuation at $50 would quickly become much harder to justify.

That is probably one reason the shares are trading where they are today.

For me, the opportunity comes from the gap between what the market appears willing to pay for WiseTech now and what the business could be worth if earnings grow as expected.

However, I would not assume that gap closes quickly, and there could be plenty of volatility along the way.

Foolish takeaway

I think $50 is within reach for the WiseTech share price in 2027.

The shares have a long way to go from $31.77, but the earnings forecasts give me a reason to believe a strong recovery is possible.

There is still uncertainty around whether WiseTech can deliver those numbers. But if the business starts showing that the expected earnings growth is on track, I think today’s share price could end up looking very cheap.

The post Could the WiseTech share price reach $50 in 2027? appeared first on The Motley Fool Australia.

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• WiseTech Global vs Xero: Which fallen ASX tech share is the better buy today?
• WiseTech shares have been smashed in 2026. Here’s why I wouldn’t bet against them
• WiseTech shares are down 65%. Have brokers finally spotted a bargain?

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 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.

Woodside Energy Group vs Ampol shares: Which ASX energy stock looks better?

With energy prices a big topic for Aussie investors and global themes front of mind, both Woodside Energy Group Ltd (ASX: WDS) and Ampol Ltd (ASX: ALD) land in the spotlight. As two of the largest names in oil and gas, yet with different business models, many will be wondering which company’s shares are the better buy today. Here’s how they stack up across their core businesses, fundamentals, value, dividend payouts, and recent momentum.

The case for Woodside Energy Group

Woodside Energy Group is Australia’s largest dedicated oil and gas operator. Producing mainly LNG, oil, and gas from a range of large offshore assets, Woodside is seen as a heavyweight in the sector. After merging with BHP’s oil and gas business, Woodside further cemented its status as a truly global energy player. The company, founded in 1954 and listed on the ASX since 1971, holds big production scale and a broad asset base spanning Australia and international waters.

Looking at key fundamentals:

• Market Cap: $61.63 billion – one of the top 20 listed companies in Australia
• P/E Ratio: 14.32 – not far from the broader ASX average for a large energy producer
• Dividend Yield: 5.03% (fully franked, as per its most recent figures)
• Year To Date Return: 44.3% – a hefty share price run over the current calendar

Woodside has a long, consistent track record of large, fully franked dividends for shareholders stretching back decades, with its last payment at $0.57 per share (fully franked). The company’s scale and resources offer stability, even as it faces the long-term headwinds familiar in fossil fuels.

The case for Ampol

Ampol is better known to most Aussies as the brand behind roughly 2,000 service stations nation-wide. As Australia’s only listed refiner and one of the largest distributors of petroleum products, Ampol’s business is all about refining (primarily from its Lytton plant in Brisbane) and big-volume fuel retail and distribution. The company trades on history – it’s well over a century old, formerly operated as Caltex, and has more recently focused on retailing and logistics (while also maintaining a presence in New Zealand via Z Energy and a significant stake in Philippine fuel company Seaoil).

Ampol’s standout numbers:

• Market Cap: $10.28 billion – much smaller than Woodside, but still substantial
• P/E Ratio: 7.18 – sitting well below both Woodside and the broader market average for large caps
• Dividend Yield: 5.68% (fully franked, per latest figures)
• Year To Date Return: 42.8% – almost matching Woodside’s strong gains

Consistent, fully franked dividends are a feature here as well, with Ampol’s last interim dividend coming in at $1.85 per share (fully franked). Its lower P/E ratio draws attention for value hunters, though its business is more exposed to the ups and downs of retail volumes and margins.

Valuation comparison

Both Woodside and Ampol offer eye-catching yields and have strong profit track records, but a few numbers really stand out when viewed side-by-side:

Metric	Woodside Energy	Ampol
Market Cap	$61.63 billion	$10.28 billion
P/E Ratio	14.32	7.18
Dividend Yield	5.03% (100% franked)	5.68% (100% franked)
Earnings Per Share	1.605	7.444

Ampol’s much lower P/E signals a potentially cheaper earnings valuation compared to Woodside, at least based on recent profits. Its higher (and also fully franked) dividend yield adds to the appeal for income seekers. Do note: the reported EPS and P/E for Ampol line up mathematically, but Woodside’s numbers appear less in sync, possibly due to differences in the basis of the earnings measurement shown.

Recent share price performance

Both companies have delivered big gains for shareholders recently, but their price histories reveal a bit more detail. Comparing the past month:

• Woodside Energy: Rose from $33.78 (21 Aug) to $32.42 (18 Sep), actually showing a small drop over this period despite a strong YTD number. Its year to date return is up 44.3%.
• Ampol: Climbed from $39.85 (21 Aug) to $43.13 (18 Sep), reflecting a net gain for the span, and a 42.8% year to date return.

The momentum is strong for both, but Ampol’s recent month shows steadier progress.

Which is the better buy?

On a pure numbers basis, I’d lean toward Ampol right now. It trades on a much lower P/E than Woodside Energy (7.18 versus 14.32), offers a higher fully franked yield (5.68%), and has kept pace with Woodside’s strong share price run so far this year. While Woodside’s scale gives it stability and huge assets, that’s already reflected in its rich $61 billion market cap. Ampol’s business is more retail-facing, but its valuation and income look appealing for everyday investors. That said, Woodside’s larger projects and global reach do offer defensive qualities if you’re chasing blue chip exposure and long-term oil and gas. For value and income at today’s prices, my pick would be Ampol – but both names deserve a spot on any energy watchlist.

The post Woodside vs Ampol: Which ASX energy stock should you buy? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
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• Santos vs Woodside: Which ASX energy share is better value?
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• 5 things to watch on the ASX 200 on Friday

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.

Telix Pharmaceuticals Ltd (ASX: TLX) shares were dominating headlines yesterday after the biopharmaceutical company’s shares crashed almost 12% in a single session. 

Investors were exiting their positions in Telix after the company announced a $3.3 billion merger with German company ITM. 

What is the merger?

Telix announced a merger with ITM Isotope Technologies Munich SE, a global leader in therapeutic radioisotopes. 

As reported by Laura Stewart yesterday, the deal could create a radiopharmaceutical powerhouse, with combined estimated 2026 revenue over US$1.3 billion and deeper supply chain security for Telix’s growing pipeline.

Telix said regarding the deal:

The merger will further strengthen Telix’s leadership as a vertically integrated radiopharmaceutical company with the capabilities required to develop, manufacture and deliver innovative treatments to patients globally. The combined organisation will be uniquely positioned as a radiopharmaceutical industry leader, differentiated by a world-class scaled isotope manufacturing business with a validated global distribution network, a market-leading commercial precision medicine platform and the industry’s most extensive therapeutic radiopharmaceutical pipeline.

However investors seemingly were unimpressed by the announcement, as Telix shares fell over 11%. 

Telix shares remain up 38% year to date. 

What is Bell Potter’s view?

Following the announcement, Bell Potter provided updated guidance on Telix shares. 

The broker’s view on Telix’s proposed merger with ITM is broadly positive from a strategic perspective, with the transaction providing Telix with significant exposure to the rapidly growing lutetium-177 (Lu-177) market and creating a vertically integrated radiopharmaceutical company spanning isotope production, drug development and manufacturing. 

However, Bell Potter also recognises the near-term risks, including approximately 24% ownership dilution to existing Telix shareholders, around US$302m of additional net debt, potential FY27 earnings dilution, and regulatory and execution risks associated with ITM-11 following the FDA’s recent Complete Response Letter. 

Overall, the merger strengthens Telix’s long-term strategic position and provides exposure to a potentially much larger radiopharmaceutical market. 

However the benefits are likely to take time to flow through to earnings, explaining the muted initial market reaction.

Once in a lifetime opportunity

Bell Potter retained its buy recommendation following the announcement and has an unchanged price target of $19 on Telix shares. 

The broker said they are yet to include the earnings impact from the transaction in our forecast,

Nevertheless, it represents a once in a lifetime opportunity to acquire a dominant share in the supply of Lu-177 that is very difficult to replicate. While earnings may take a year or two to realise, the underlying value is obvious. Maintain Buy rating.

The price target from Bell Potter indicates an upside potential of 20% for Telix shares. 

The post What is this broker’s view on Telix shares after yesterday’s crash? appeared first on The Motley Fool Australia.

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

Australia’s artificial intelligence landscape has been in focus the past week after AI giant Anthropic signed an agreement to use part of a $32 billion data centre proposed for a site on Queensland’s Western Downs.

According to The ABC, the data centre is set to be the largest in Australia and will draw as much power as about 1.5 million average Australian households.

Anthropic aims to start using the centre in 2027 to power its artificial intelligence program Claude to answer user questions, rather than for training AI models.

What does it mean for ASX AI shares?

Anthropic’s agreement to anchor a proposed $32 billion data-centre development in Queensland is more than another major artificial intelligence announcement. 

It is a sign that the next phase of the AI boom is increasingly becoming a story about data centres, electricity, connectivity and physical infrastructure.

Importantly, the companies positioned to benefit may not necessarily be the businesses developing AI models themselves. 

Instead, they could include data centre operators, property developers, telecommunications and connectivity providers, electricity generators and infrastructure companies.

Here are three ASX AI shares to keep an eye on. 

Nextdc Ltd (ASX: NXT)

This ASX stock is one of the most obvious Australian-listed beneficiaries of increasing demand for data-centre capacity.

The company has been aggressively expanding its data-centre footprint as demand from cloud computing and AI increases.

The Queensland announcement doesn’t directly add revenue to NextDC, as the Western Downs project is not a NextDC development.

However, it provides another piece of evidence that AI companies are prepared to make substantial, long-term commitments to computing infrastructure.

Goodman Group (ASX: GMG)

Goodman Group (ASX: GMG) offers another way to gain exposure to the theme.

It is traditionally known for logistics and industrial property. 

However Goodman Group has increasingly positioned itself around data-centre development.

A significant proportion of the group’s development pipeline is now associated with data centres.

This is an important development because the AI boom is creating demand for a very different type of real estate.

A hyperscale AI data centre needs enormous amounts of electricity, fibre connectivity, cooling capacity and grid access.

That scarcity can potentially make suitable sites extremely valuable.

Dexus (ASX: DXS)

Dexus (ASX: DXS) is particularly interesting because it has an actual connection to the proposed Queensland development.

Dexus’s Australian Data Centres business will be working with partners on the Western Downs project.

That doesn’t mean Dexus will receive anything approaching $32 billion in revenue.

But it does give the company direct exposure to the development of Australia’s rapidly expanding data-centre infrastructure.

For investors, the distinction between project value and corporate earnings remains critical.

The post What does Anthropic’s $32b Queensland data centre mean for ASX AI shares? appeared first on The Motley Fool Australia.

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

Right now, investors are heavily researching and gaining exposure to artificial intelligence shares. However, there are many layers to the artificial intelligence buildout. 

• Pure-play artificial intelligence companies – Companies whose main business is building AI models and software. A direct bet on AI.
• Hyperscalers – Big tech companies like Microsoft and Amazon that spend heavily on AI and make money through their cloud and AI products.
• Picks and shovels – Companies that provide the infrastructure AI needs, such as data centres, chips, memory, power, and cooling.

There are pros and cons to each part of this chain. The choice comes down to each investor’s individual goals and beliefs on the AI buildout. 

What are the pros and cons?

Firstly, looking at the pure-play companies, the positive to targeting these stocks is you have the highest direct exposure to AI growth. This gives you potential for exposure to rapid revenue growth if a company’s AI product takes off.

On the flip side, there may be a higher risk and volatility. 

Competition is intense, valuations can be high, and companies may struggle to turn AI demand into profits.

Looking at the hyperscalers, these huge existing businesses provide diversification. 

Strong cash flows allow them to spend billions on AI infrastructure, which can generate revenue through cloud, software and advertising. 

However the negative side is that AI is only part of the overall business, so upside is less concentrated. 

Additionally, massive AI spending also creates high capital requirements and potential pressure on returns. 

Finally, the picks and shovels stocks. 

The argument for these companies is that you can benefit from many AI companies spending on infrastructure, rather than needing one AI model to win. 

The main drawback is that these companies are often capital-intensive and cyclical, making them vulnerable to oversupply, falling prices and shifts in AI infrastructure spending.

How to target each layer

For investors looking for options at each level of this buildout, there are several ASX ETFs to consider. 

For investors looking to target pure-play AI, one option is the Global X Artificial Intelligence ETF (ASX: GXAI). 

It offers exposure to companies directly involved in AI, including AI software, services and supporting hardware.

For investors looking for exposure to hyperscalers, an option to consider is BetaShares Nasdaq 100 ETF (ASX: NDQ). 

It provides exposure to major US tech companies investing heavily in cloud and AI products. 

Finally, for investors seeking a picks and shovels approach, Global X Ai Infrastructure ETF (ASX: AINF) and Global X Semiconductor ETF (ASX: SEMI) are worth considering. 

They focus on the physical backbone of AI, including power, data centres, semiconductors, connectivity and raw materials.

The post How to target the different layers of the artificial intelligence buildout appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, BetaShares Nasdaq 100 ETF, and Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon and Microsoft. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX banking giants, such as National Australia Bank Ltd (ASX: NAB), are popular shares for passive-income investors seeking regular, reliable income.

What sets NAB apart from the other big four banks is its exposure to business lending and SME banking.

NAB also stands out because it earns a huge portion of its revenue directly from its core lending activities, including loans and deposits. This makes it less exposed to the volatility in Australia’s residential mortgage market.

These attributes, combined with its exposure to business banking, allow it to generate a steady, diverse income stream. This is great news for investors seeking reliable passive income.

But what exactly could that passive income look like?

Lets investigate, using a $5,000 investment as an example.

What’s the latest out of NAB shares?

NAB shares have faced a few headwinds this year, including overall lower investor sentiment, policy changes, and affordability concerns.

Higher-than-expected inflation data and renewed interest rate hike forecasts haven’t helped matters either. A potentially weaker housing market means some investors are turning away from ASX bank shares.

NAB shares have managed to rebound from an annual low in early June, but they’re still down around 9% year-to-date and are 11% lower than 12 months ago.

At the time of writing, NAB shares are $38.72 each.

But brokers are divided about the outlook for NAB shares over the next 12 months. TradingView data shows that half of analysts rate NAB shares a hold. The other half are split evenly between buy/strong buy and sell/strong sell ratings. But the $38.29 average target price now implies a potential 1% downside ahead.

How many NAB shares can I buy with $5,000?

At the time of writing, the $38.72 trading price means a $5,000 investment buys about 129 shares.

What annual dividend is the bank forecast to pay its shareholders in FY26?

NAB has been paying regular fully-franked dividends every six months to shareholders dating back to 2003.

NAB most recently paid its shareholders a fully franked interim dividend of 85 cents per share in July and is forecast to pay a final 85-cent dividend in December, bringing the total to $1.70 per share for FY26.

At the time of writing, that translates to a forward dividend yield of around 4.4% for the year.

What is NAB forecast to pay in FY27?

Going forward to FY27, the bank is expected to increase its dividend slightly to $1.72 per share. Based on the current share price of $38.72, that translates to a forward dividend yield of closer to 4.5% for FY27.

Ok, so what could I earn off a $5,000 investment in FY27?

If the banking giant pays the forecasted $1.72 dividend to shareholders in FY27, then a $5,000 investment (or 129 shares) will generate $221.88 in passive income, at the time of writing.

The post If I invest $5,000 in NAB shares, what passive income will I receive in FY27? appeared first on The Motley Fool Australia.

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

There are a number of large ASX shares that offer investors sizeable dividend yields. In my view, Telstra Group Ltd (ASX: TLS) shares could be the best ASX blue-chip stock for dividend income if someone wanted to invest $6,000.

It may not have the biggest dividend yield, but I think it offers a pleasing mix of a growing dividend and a solid dividend yield.

In FY26, the ASX telco share grew its annual dividend income by 10.5% to 21 cents per share. It has increased its dividend five years in a row and analysts predict the dividend can continue rising at a solid rate.

Let’s take a look at what’s projected for FY27 and what that would mean for a $6,000 investment in Telstra shares.

Projected dividend income for the 2027 financial year

The business offers very defensive earnings – being connected to the internet seems important for a lot of households, businesses and so on.

As Australia’s digitalisation increases, more devices require subscriptions, helping boost Telstra’s subscriber numbers each year (including its wholesale division, which supports other smaller telcos). Therefore, it looks defensive with growth attributes, in my view.

In FY26, the company managed earnings per share (EPS) growth of 5.3%, cash EBIT growth of 8%, cash net profit growth of 11.6% and cash EPS growth of 13.8%.

Management think that cash EBIT could grow between 1.9% and 6.2% in FY27, which I believe bodes well for cash EPS (and the dividend).

Using the projection on Commsec, the business is projected to grow its annual dividend income per Telstra share by 4.75% in FY27 to 22 cents per share.

Excluding franking credits, that’s a potential dividend yield of 4.5%. Assuming the same level of franking as FY26, it’d be a grossed-up dividend yield of 6.3% including franking credits.

What would a $6,000 investment in Telstra shares create?

At the time of writing, a $6,000 purchase of Telstra stock would buy 1,234 shares.

With those shares, for FY27, the shareholder is therefore projected to receive $271.48 of dividend cash and approximately $376.19 overall dividend income, including the franking credits.

Collectively, analysts seem quite positive about the company’s valuation right now. According to Commsec, 16 analyst ratings currently cover the business: nine are buys, six are holds, and one is a sell.

While Telstra isn’t trading near 52-week lows, it looks attractive to me. Of course, there could be even better ASX share opportunities out there to buy.

The post If I buy $6,000 of Telstra shares, how much dividend income will I receive? 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 Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.