Author: openjargon

Telix Pharmaceuticals vs Clinuvel Pharmaceuticals shares

If you’re thinking about putting $1,000 into an ASX healthcare stock, Telix Pharmaceuticals Ltd (ASX: TLX) and Clinuvel Pharmaceuticals Ltd (ASX: CUV) are likely on your radar. Both are pioneering companies in Australian biotech with global ambitions, but they have some stark differences. Let’s weigh up Telix Pharmaceuticals vs Clinuvel Pharmaceuticals shares to see which one might suit an investor chasing growth, value, or something in between.

The case for Telix Pharmaceuticals

Telix Pharmaceuticals is a commercial-stage biopharma player focused on developing and selling theranostic (both diagnostic and therapeutic) products using targeted radiation. Its key product, Illuccix, is approved for prostate cancer imaging in Australia, the US, and Canada, and the company is pushing for approvals in Europe and the UK. Beyond this, it’s running over 20 clinical trials globally across major cancer types including prostate, kidney, brain, and bone marrow conditions. Telix is headquartered in Australia but operates on several continents.

Three stand-out points about Telix from the data:

• It’s much larger than Clinuvel, with a market cap of $5.40 billion.
• Year to date, its shares are up an impressive 37.6%.
• The company sports a very high price-to-earnings (P/E) ratio of 108.53, reflecting high investor hopes for future growth rather than current earnings.

It’s worth noting that Telix does not pay a dividend, so investors here are backing future growth rather than income.

The case for Clinuvel Pharmaceuticals

Clinuvel Pharmaceuticals is best known for its drug SCENESSE, which helps people with rare genetic disorders causing extreme intolerance to sunlight. Clinuvel focuses on innovative treatments for both genetic and vascular skin disorders, and earns most of its revenue from the US and Europe. Like Telix, it’s an Australian company with an international outlook.

Highlights for Clinuvel from the figures:

• It is much smaller in scale than Telix, with a market cap of $413.5 million.
• The company’s P/E ratio stands at 12.17, considerably lower than Telix’s, indicating the shares are valued far closer to current earnings.
• Dividend-wise, Clinuvel pays a fully franked yield of 0.62%, recently delivering annual dividends of 5 cents per share, all fully franked, which is a rare treat among Aussie biotechs.

However, Clinuvel shares have dropped 34.4% year to date, reflecting a tough patch for the business or perhaps shifts in investor expectations.

Valuation comparison

Here’s how the two stack up on main valuation and yield measures:

Metric	Telix Pharmaceuticals	Clinuvel Pharmaceuticals
Market Cap	$5.40 billion	$413.51 million
P/E Ratio	108.53	12.17
Earnings per Share (EPS)	$0.099	$0.668
Dividend Yield	0.00%	0.62% (fully franked)
Dividend per Share	N/A	$0.05

Note: Clinuvel’s reported P/E and EPS are consistent, while Telix’s very high P/E reflects its current tiny but positive earnings. Telix does not pay dividends, whereas Clinuvel does, with a fully franked yield.

Recent share price momentum

Comparing recent share price performance up to 7 October 2026:

• Telix Pharmaceuticals closed at $15.87 on 7 October 2026, with a year-to-date return of 37.6%.
• Clinuvel Pharmaceuticals closed at $8.20 on 7 October 2026, with a year-to-date return of -34.4%.
• Over the previous trading week, Telix shares jumped 2.99% on the most recent day, and showed strong overall momentum despite some volatile days.
• Clinuvel shares, in contrast, edged up 0.86% on the same day, but have been trending down for most of the year.

Which is the better buy?

If I was picking between Telix Pharmaceuticals and Clinuvel Pharmaceuticals to invest $1,000 right now, I’d lean toward Telix. The company is much larger, more diversified across major cancer indications, and has clear momentum both in its operational progress and in the share price this year. While Telix is definitely priced for optimism with a sky-high P/E multiple (108.53), its strong pipeline and global approvals for Illuccix are impressive.

Clinuvel does stand out for paying a fully franked dividend—very rare among Australian biotechs—and the shares trade at a far lower P/E ratio (12.17), which could appeal to value-seekers. Yet, the steep year-to-date drop in the share price raises questions. Unless I was after income above all else or felt confident in a turnaround, I’d be more comfortable backing Telix’s proven momentum and future-facing pipeline in the current landscape.

The post Telix vs Clinuvel Pharmaceuticals: Which ASX healthcare share deserves your next $1,000 of investment capital? appeared first on The Motley Fool Australia.

More reading

• UBS thinks Telix Pharmaceuticals shares will go how high?
• Here are the top 10 ASX 200 shares today
• Telix Pharmaceuticals wins FDA Fast Track for BiPASS prostate cancer imaging
• Buy, hold, sell: Telix Pharmaceuticals, Qualitas, Greatland Resources shares
• These are the 10 most shorted ASX shares

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 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. 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.

The DroneShield Ltd (ASX: DRO) share price has been on a real journey over the past year.

After reaching a 52-week high of $6.70, the counter-drone technology company’s shares are now trading around $1.67 on Friday.

Despite this, I think there are still reasons to be positive about the company’s future.

So, could the DroneShield share price climb back above $2.00 in 2027?

The growth opportunity remains substantial

One reason I remain interested in DroneShield is the growing importance of counter-drone technology.

The use of drones in modern warfare has demonstrated how relatively inexpensive equipment can threaten military vehicles, critical infrastructure, and personnel.

Governments are responding by investing in systems capable of detecting, tracking, and defeating these threats.

DroneShield has positioned itself in this market with a range of products designed for military, government, and security customers. And I think the company’s recent progress in the United States is particularly encouraging.

In September, DroneShield secured a place on a US$500 million procurement contract covering counter-drone technology for American homeland defence requirements.

This isn’t a guaranteed US$500 million in revenue, but it provides another avenue for the company to win business in one of the world’s largest defence markets.

If DroneShield can build on that momentum and secure further contracts during 2027, I think investors could become considerably more confident about its growth prospects.

Profitable growth will be important

Winning contracts is one thing, but I would also want to see DroneShield turn that demand into sustainable profits.

The company has been investing in manufacturing capacity, product development, and its international operations to prepare for a much larger business. Those investments could pay off handsomely if sales continue increasing.

I am also interested in its growing software and support offering. DroneShield recently launched Mission Ready Services, which brings software updates, technical support, and training together under a subscription model.

With thousands of software-enabled devices already deployed, there is an opportunity to generate additional revenue from customers after the initial equipment sale.

That could gradually improve the consistency of earnings in an industry where major defence orders can be irregular.

For me, demonstrating that it can grow revenue while improving profitability would be one of the strongest reasons for investors to reassess the DroneShield share price.

What could hold the DroneShield share price back?

There are still some significant issues to consider. Short sellers have taken a substantial interest in DroneShield, with reported short positions representing around 15.2% of shares on issue in early October.

That suggests a considerable number of market participants are positioning for further share price weakness.

The ongoing Australian Securities and Investments Commission (ASIC) investigation is another source of uncertainty.

The investigation relates to company announcements and information provided to the ASX in November 2025, alongside trading in DroneShield shares during that period.

There is no certainty about what action, if any, will result, but I think investors will want to see the matter resolved before confidence can fully recover.

These issues could continue weighing on the shares even if the business performs well.

Foolish takeaway

At $1.67, the DroneShield share price would need to rise around 20% to reach $2.00.

Considering the shares traded as high as $6.70 during the past year, I do not think that is an unreasonable target, although the previous high is certainly no guarantee of a recovery.

If DroneShield keeps winning contracts, grows profitably, and makes progress towards resolving its governance uncertainties, I think there is every chance the shares could move beyond $2.00 in 2027.

I would expect plenty of volatility along the way, but I remain positive on the company’s long-term growth opportunity.

The post Could the DroneShield share price reach $2 in 2027? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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.

Woodside Energy Group Ltd (ASX: WDS) shares could be considered a leading contender for passive income on the ASX.

It’s not the most consistent business with its dividend payments. Profit and payouts can be volatile because energy prices can shift significantly over a short period of time.

Woodside’s profit rose this year due to higher energy prices. Analysts now project that a large dividend could be coming in 2027.

Let’s take a look at what’s forecast for Woodside shares in FY27 and then what would be required for $12,000 of passive income.

Dividend projection for Woodside shares

According to Commsec, analyst predictions suggest there could be a large increase in profitability in the 2027 financial year. At this stage, experts are forecasting that earnings per share (EPS) could rise by 21% in FY27.

Project progress may be responsible for some of that potential growth, but higher energy prices are obviously a key factor.

Normal global energy flows, including refinery-related activities, have not yet returned due to conflicts and stalemates in the Northern Hemisphere.

If Woodside ties its FY27 annual dividend payment to a certain dividend payout ratio, then the rise in forecast earnings is very likely to lead to a higher dividend payment.

The ASX energy share is currently projected by analysts to hike its 2027 financial year annual dividend by 21.75% to $2.16 for Australian investors. At the current Woodside share price, that translates into a dividend yield of 6.9% excluding franking credits and 9.9% grossed-up for franking credits.

Of course, subsequent years may not have a dividend yield as strong as that.

What would it take for $12,000 of passive income?

Reaching $12,000 in passive income from Woodside could make it an appealing investment among ASX blue-chip shares, given that it’s in a different sector from the major ASX bank and mining shares.

Receiving $12,000 of annual passive income from the ASX energy share translates into $1,000 per year, if we average that out to a monthly figure.

To reach the goal, it depends on whether investors include or exclude franking credits from the total.

If we exclude franking credits, then an investor would need 5,556 Woodside shares to generate $12,000 of annual dividend cash.

But, if we include franking credits as part of the franking credits, then an Australian investor would only need 3,889 Woodside shares for $12,000 of grossed-up dividend income.

Analysts are fairly mixed on whether the Woodside share price is an attractive buy right now. According to Commsec’s collation of analyst opinions, there are six buy ratings, eight hold ratings and three sell ratings on the business.

Therefore, there could be more compelling ASX share opportunities available than Woodside.

The post How many Woodside shares do I need to buy for $12,000 of passive income in 2027? 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The value of technology company Codan Ltd (ASX: CDA) soared past $10 billion recently and just kept going, after it announced a large profit upgrade.

But the team at Canaccord Genuity argues that the company’s shares still represent good value, despite the strong run they’ve been on recently.

Drone warfare driving strong growth

Codan has two main divisions: military communications and metal detection. Both divisions have been performing well lately.

But it is the use of the company’s technology in unmanned systems, or drones, which is translating into very rapid revenue growth.

When announcing its upgrade, the company said it expected first-half revenue in its communications division to rise 20% from the orior year.

Codan added:

Demand from conflict regions is currently exceptionally strong, reflecting the proven performance and reliability of our technology in these contested environments. With this elevated demand, Codan expects revenue generated from conflict regions to represent approximately 50% of Communications segment revenue in H1 FY27 (vs. approximately 20% in the previous corresponding period). Codan now expects the Communications segment to deliver H1 FY27 revenue of between $400 million and $410 million. This compares to $221.8 million in the pcp and $506.2 million in full year FY26.  

Management said demand from conflict regions was difficult to predict over the full year, “and accordingly it is too early in the financial year to determine if demand and margin will continue at similar levels in H2 FY27.

The metal detection division (Minelab) was also performing well, driven by strong demand for its new GPZ8000 and Gold Monster 2000 detectors. This division is now expected to slightly exceed the revenue it generated in the second half of FY26.

In terms of group profit, Codan is expecting a net profit in excess of $160 million for the first half, compared to $71.2 million in the first half of FY26 and $175.2 million for the full year.

Broker says expect more to come

Canaccord Genuity said they believed Codan’s forecasts would turn out to be conservative.

They said:

We believe Codan is well placed to beat full year expectations, with management’s conservative second half conflict region assumptions likely to prove too cautious given no end in sight to conflicts such as Ukraine. While Codan trades on an FY27 P/E of 41x, its true forward multiple may prove well below this as further upgrades or consensus beats come through.

Canaccord Genuity said Minelab also remained a strong, high-margin business supported by elevated gold prices.

Canaccord Genuity does not publish share price targets for its top share picks.  

Codan is valued at $11.9 billion, at the time of writing.

The post Up more than 100% in a year, why Codan shares may still be cheap appeared first on The Motley Fool Australia.

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• Tech shares shine while ASX 200 plunges to 4-month low
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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 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.

CSL vs Commonwealth Bank of Australia shares: which ASX giant deserves a spot in your SMSF?

When thinking about which blue-chip shares to add to my SMSF this month, CSL Ltd (ASX: CSL) and Commonwealth Bank of Australia (ASX: CBA) both stand out. CSL is a global healthcare leader, while CBA is Australia’s biggest bank by market cap. Both have a strong track record and loyal followings, but they play different roles in a portfolio. With their size, resilience, and regular dividends, it’s no surprise many investors are weighing up CSL vs Commonwealth Bank shares. Here’s how I’d compare them right now.

The case for CSL

CSL is one of the world’s leading biotech companies, born and bred in Australia, but with a truly global presence. CSL’s core businesses span plasma products, vaccines, and treatments for rare and serious diseases, supported by a vast plasma collection network and innovation across blood therapies, vaccines, and iron deficiency treatments. CSL operates in over 40 countries and is recognised for tackling complex health challenges.

Looking at its fundamentals:

• Market cap sits at $87.33 billion, putting it high among ASX healthcare heavyweights.
• Its P/E ratio is 18.12, not particularly stretched for a company with global reach and research heft.
• The dividend yield is 2.27%, with recent dividends offering a dollar value of $4.05 per share but notably, with no franking credits.

One part I can’t ignore: recent earnings per share sits at -5.350, which looks odd next to CSL’s positive P/E ratio. This likely means the reported P/E ratio is based on an alternative earnings measure, such as adjusted or forward earnings.

CSL’s long dividend history shows steady, growing payments, but without franking, which impacts after-tax yield for SMSF investors wanting tax-effective income.

The case for Commonwealth Bank of Australia

Commonwealth Bank of Australia, simply known as CommBank, is arguably the most iconic financial institution on the ASX. From everyday banking through to lending, wealth, and insurance, it’s woven into the fabric of Australian finance. CBA operates not just in Australia, but also in New Zealand, Asia, the UK, and the US.

Key fundamentals that stand out:

• A market cap of $251.64 billion makes it the largest listed company in Australia by some distance.
• The P/E ratio sits at 23.38. For a mature financial giant, this is relatively elevated and suggests investors are paying a premium for its market dominance and stability.
• The dividend yield is 3.31%, fully franked. That’s an attractive proposition for anyone in the zero or low-tax-rate environment of an SMSF.

CBA’s dividends have been both reliable and rising, with the latest full-year payout at $5.05 per share, again fully franked. Unlike CSL, the EPS figure of 6.517 aligns with the positive P/E ratio. This consistency is comforting for long-term, income-focused investors.

Valuation comparison

There are some clear differences in how each company is valued and what income they provide:

Metric	CSL	Commonwealth Bank
Market Cap	$87.33 billion	$251.64 billion
P/E Ratio	18.12	23.38
Dividend Yield	2.27% (unfranked)	3.31% (fully franked)
Dividend per share	$4.05	$5.05
Franking on Latest Dividend	0%	100%

As previously mentioned, CSL’s reported P/E ratio may be based on a different earnings measure (e.g. underlying or forward earnings) than the negative EPS figure shown, which is why they may appear inconsistent.

CBA’s dividend has a clear after-tax edge for SMSFs thanks to full franking. On the other hand, CSL’s lower P/E ratio suggests it’s cheaper relative to its earnings (at least on the measure reported), but the negative EPS brings the quality of those earnings into question at this instant. CBA’s higher P/E could reflect investors’ hunger for defensive yield in a volatile world, but it does mean you’re paying up for peace of mind.

Recent share price momentum

Comparing recent share price performance up to:

• CSL Ltd closed at $181.99, caping off a 1.85% gain for the day. The company has delivered a year-to-date return of 5.8%.
• Commonwealth Bank closed at $150.37, losing 1.32% for the day. Its year-to-date return is -2.0%—so it’s underperformed CSL in 2026 so far.

Both stocks have delivered multi-year capital growth, but CSL has the upper hand in recent momentum.

Which is the better buy?

If I were making a decision for my SMSF this month, my pick would be Commonwealth Bank of Australia. Here’s why: the fully franked yield of 3.3% is a stand-out, delivering excellent after-tax income for SMSFs. While the share price has lagged so far this year, CBA’s consistency, scale, and defensive earnings give me comfort as a core portfolio anchor. Even though CBA trades on a higher P/E, I think that reflects its robust profits and the premium investors place on bank stability.

CSL is a phenomenal company with strong long-term growth prospects and global reach. However, its current negative EPS and unfranked dividends take the shine off for me, especially compared to a fully franked, higher-yielding payout.

So, for a reliable, tax-effective SMSF addition in October 2026, my vote goes to Commonwealth Bank—but I’d keep watching CSL for any signs of earnings turnaround or changes in dividend policy.

The post CSL vs CBA: Which ASX share is best for SMSFs? appeared first on The Motley Fool Australia.

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• If I invest $10,000 in CBA shares today, what could they be worth in October 2027?

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 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. 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.

Starting your investing journey can be exciting, but deciding what to buy first isn’t always easy when there are hundreds of shares and exchange traded funds (ETFs) to choose from.

Thankfully, you don’t need to identify the next star stock to start building wealth.

Here are three ASX ETFs that could be worth considering for beginners now and in 2027.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

One of the biggest challenges for new investors is working out which companies will be successful over the next decade.

And let’s face it, even professional investors regularly get that wrong.

That’s why the Vanguard MSCI Index International Shares ETF could be a great place to start.

Instead of trying to pick a handful of winning stocks, this fund gives investors a stake in more than 1,000 companies across developed markets outside Australia.

That includes some of the biggest names in technology, healthcare, financial services, and consumer goods.

It also means you’re not relying on the Australian economy to deliver all your returns.

For beginners who want to start investing and gradually build their wealth over many years, that’s a strong proposition.

Betashares Global Cybersecurity ETF (ASX: HACK)

Another ASX ETF that could be worth considering is the Betashares Global Cybersecurity ETF.

Think about how much of your everyday life now takes place online. Banking, shopping, working, communicating, and even accessing healthcare increasingly involve digital services.

All that activity creates opportunities for cybercriminals, which is why businesses and governments are spending heavily on protecting their systems and data.

The Betashares Global Cybersecurity ETF allows investors to gain exposure to companies providing that protection. These businesses help prevent cyberattacks, secure networks, protect cloud systems, and detect threats before they cause serious damage.

This is a more specialised investment than a broad market ETF, so its performance could be more volatile. Nevertheless, for beginners interested in technology and its future, it could be an exciting fund to consider.

Betashares Australian Quality ETF (ASX: AQLT)

A final ASX ETF for beginners to look at is the Betashares Australian Quality ETF.

When people first start investing, it can be tempting to buy shares in companies they recognise. But being a household name doesn’t necessarily mean a business is a great investment.

That’s where this ETF takes an interesting approach. It looks beyond company size and focuses on Australian businesses with strong profitability, healthy balance sheets, and relatively stable earnings.

The idea is to favour financially stronger companies that may be better placed to handle difficult economic conditions and continue growing over time.

It also offers something different from a traditional Australian index fund, where the biggest banks and mining companies can dominate the portfolio.

For beginners who want exposure to local shares but prefer an investment strategy built around business quality, the Betashares Australian Quality ETF could be worth a closer look.

The post 3 excellent ASX ETFs for beginners in 2027 appeared first on The Motley Fool Australia.

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

West African Resources Ltd (ASX: WAF) released its quarterly gold production figures this week, prompting the analyst team at Macquarie to run the ruler over the numbers.

The broker has maintained its outperform rating on West African shares and is predicting more share price upside, along with a healthy dividend yield.

I’ll get to the specifics of those later. First, let’s look at the company’s September quarter production.

Record quarter of gold production

West African Resources said in a statement to the ASX that it had produced 127,950 ounces of gold from its Sanbrado and Kiaka gold mines in Burkina Faso during the quarter, and had sold 135,245 ounces at US$4240 per ounce.

The company also confirmed it was on track to achieve its annual guidance of 430,000 to 490,000 ounces of gold.

West African Resources said it had received approval from the Burkina Faso Government for the M5 South underground extension at Sanbrado.

The company added:

M5 South underground development activities have commenced, and stoping activities are now scheduled to start in early H2 2027. There is flexibility within the overall Sanbrado mine plan and this delayed start is therefore expected to have minimal impact on 2027 gold production.

West African Executive Chair Richard Hyde said the record quarter maintained the company’s production run rate at more than 500,000 ounces per year.

Shares still looking like good value

Macquarie said in its new research note on the company that the third-quarter production was 11% higher than consensus estimates.

This was driven by a 15% lift in tonnage processed at Kiaka, with mined material also up 13% quarter on quarter.

Sanbrado, on the other hand, missed production expectations by a small amount, Macquarie said.

The broker added:

Barring any material disruptions, WAF should comfortably meet its production targets, particularly if improved access to explosives continues. We are likely to see improved all-in sustaining costs this quarter, given stronger sales (135koz, +22% quarter on quarter) offsetting the increase in mined and milled tonnage.

Macquarie increased its earnings per share estimates for West African Resources by 7% for this year, and upgraded its forecasts from CY27 to CY30 by 1%.

The broker added:

We maintain our Outperform recommendation for WAF, with lowered risk to CY27 production from receipt of the Sanbrado underground mine plan.

Macquarie maintained its $4 price target for West African Resources shares, compared with $3.61 at the time of writing.

If achieved, this would constitute a 10.8% return.

Macquarie is forecasting a 7.4% dividend yield this calendar year, falling to 4.9% next year, then rising to 5.4%.

West African Resources is valued at $4.01 billion.

The post Up nearly 20% over a year, can West African Resources shares go even higher? appeared first on The Motley Fool Australia.

More reading

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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. 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.

BHP Group Ltd (ASX: BHP) has long been a favourite among Australian dividend investors.

And with its enormous mining operations, strong cash generation, and history of returning billions of dollars to shareholders, it isn’t difficult to see why.

But how much would you need invested in the mining giant to generate $10,000 in annual passive income? Let’s take a look.

Why BHP remains popular

One of the main reasons BHP is so popular is the scale and quality of its mining operations.

The company owns some of the world’s most important mineral resources, including operations that have been producing for decades and still have substantial reserves remaining.

This gives BHP opportunities to keep generating cash and investing in production for many years.

Its financial strength is another reason. BHP has generally been able to maintain a strong balance sheet while funding major projects and returning substantial amounts of money to shareholders.

Of course, mining is a cyclical business, and even BHP cannot escape fluctuations in commodity prices.

When prices are high, profits and dividends can be enormous. When they weaken, shareholder returns can fall significantly.

However, BHP’s size, asset quality, and financial resources arguably make it one of the better options for investors seeking dividend income from the resources sector.

So, what could its shares deliver over the coming years?

How many BHP shares would you need?

According to CommSec, BHP is forecast to pay fully franked dividends of $2.07 per share in FY 2027.

Based on its current share price of $60.94, this represents a forecast dividend yield of approximately 3.4%.

To generate $10,000 in annual passive income at that rate, an investor would need to own approximately 4,831 BHP shares.

Buying that many shares today would require an investment of around $294,400.

That’s certainly a substantial amount of money to have invested in one company, which is why I would generally favour building a diversified income portfolio rather than relying entirely on BHP.

However, eligible Australian investors could also benefit from franking credits attached to those dividends.

What about future passive income?

The good news for investors is that CommSec expects BHP’s dividends to increase over the following two years.

Despite an expected earnings dip in FY 2028, dividends are forecast to edge higher to $2.10 per share.

For someone holding 4,831 shares, that would mean approximately $10,145 in annual passive income.

By FY 2029, CommSec expects dividends to increase to $2.38 per share, potentially lifting annual passive income from the same holding to almost $11,500.

It is worth remembering that these are only forecasts and actual dividends will depend heavily on commodity prices and BHP’s earnings.

Nevertheless, they demonstrate why the mining giant remains a popular option for Australian income investors.

The post How many BHP shares do I need to buy for $10,000 of passive income? appeared first on The Motley Fool Australia.

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• How much passive income can I earn from a $950,000 superannuation balance?
• Buy, hold, sell: Goodman, Wesfarmers, BHP shares
• Woodside Energy vs Rio Tinto: Which ASX 200 stock is better value?

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

Xero Ltd (ASX: XRO) shares have fallen a staggering 62% over the past 12 months.

That is a remarkable decline for a technology company that has spent years building one of the world’s leading small business accounting platforms.

Could this make Xero shares a must-buy for patient investors?

An enormous market opportunity

The first thing that stands out to me is just how much room Xero still has to grow.

The company finished FY26 with 4.92 million customers globally, having added another 506,000 during the year. By July, it had reached the 5 million customer milestone.

That is an impressive achievement, but it is still a relatively small share of its potential market.

Xero estimates that its total addressable market includes around 100 million small and medium-sized businesses globally.

Of course, I would not expect the company to capture anything close to that entire market. Competition is fierce, and small businesses have different accounting requirements. But it gives investors a sense of the opportunity.

Overall, I think there is plenty of scope for Xero to keep adding customers for many years.

Getting more value from existing customers

Xero has been steadily increasing the amount of revenue it generates from each customer.

In FY26, average monthly revenue per customer increased 23% to NZ$55.44, although the addition of payments business Melio contributed to that growth.

Even excluding Melio, average revenue per customer increased, demonstrating that Xero is finding ways to generate more revenue from its existing platform.

I think that trend can continue. Xero is increasingly offering services beyond traditional bookkeeping, including payroll, payments, cash flow management, and other financial tools.

The acquisition of Melio gives it a stronger position in business payments, particularly in the United States.

As customers adopt more of these services, Xero can potentially generate additional revenue without needing to win a completely new subscriber.

That combination of customer growth and higher average revenue per customer could be powerful over time.

What about the AI threat?

This is probably the biggest question I have about Xero’s future.

Artificial intelligence (AI) is developing quickly, and it is not difficult to imagine a future where somebody asks ChatGPT to help prepare their tax return or manage parts of their business finances.

Could that eventually reduce the need for traditional accounting software? I certainly would not dismiss the possibility.

But I think Xero has some important advantages. Accounting involves much more than answering financial questions. Businesses need accurate records, bank reconciliations, payroll compliance, tax reporting, and reliable information that can be shared with accountants and regulators.

Xero brings those processes together, with years of financial information often embedded in the platform.

That makes switching software a significant undertaking, particularly for businesses that rely on Xero every day.

The company is also developing its own AI capabilities through JAX, which aims to automate bookkeeping tasks and help customers manage their finances more efficiently.

I think that gives Xero an opportunity to benefit from AI rather than simply defend itself against it.

The challenge will be making sure its software continues providing enough value as AI tools become more capable.

Foolish takeaway

I think Xero is still one of the ASX shares I would most want to own for the long term.

The 62% share price fall is certainly concerning, and AI could change the accounting software industry considerably.

But with millions of potential customers still to reach and opportunities to generate more revenue from those already using its platform, I believe Xero has plenty of growth ahead.

For me, that makes the shares a buy today.

The post Are Xero shares a must-buy for investors? appeared first on The Motley Fool Australia.

More reading

• 6 ASX shares to buy in today’s weak market: experts
• Here are the top 10 ASX 200 shares today
• Xero shares crash 63% in a year: Is there any upside left?
• Down 60%, is this ASX growth share now too cheap to ignore?
• 2 ASX shares tipped to grow 62% or more in the next 12 months

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

Wesfarmers vs Qantas shares: Where should a 60-year-old invest?

If you’re in your sixties and weighing up Wesfarmers Ltd (ASX: WES) against Qantas Airways Ltd (ASX: QAN) shares, you’re comparing two iconic names with very different track records and business models. Wesfarmers spans supermarkets to hardware and pharmacies, while Qantas is Australia’s airline. With retirement income, steady dividends and relative stability front-of-mind for many, let’s spark up the Wesfarmers vs Qantas shares debate for those seeking to balance regular income with resilience.

The case for Wesfarmers

Wesfarmers is one of Australia’s largest, longest-standing listed conglomerates. Its household brands include Bunnings, Kmart, Officeworks and Priceline, giving it a retail backbone, plus chemical and fertiliser operations. The group added healthcare in 2022 with the API acquisition, bolstering its “defensive” qualities against economic shocks. As of its company profile, Wesfarmers’ portfolio gives it exposure to daily spending habits of Australians from all walks of life.

For investors near or in retirement, several figures stand out:

• Dividend Yield: 2.93%, fully franked – reliable and tax-friendly income.
• P/E Ratio: 29.94 – more of a premium price, reflecting perceived quality and steadiness.
• Dividend track record: Decades of consistent, fully franked payouts. Recent payments have hovered around $2 or more per share each year, often split between interim and final dividends.

Wesfarmers’ vast scale ($86.58 billion market cap) and stable business mix could provide peace of mind for retirees who value predictability and steady dividends.

The case for Qantas Airways

Qantas is Australia’s flagship airline, with roots stretching back to 1920. Its two main brands, Qantas and Jetstar, connect Australia’s dots across domestic and international routes. According to its most recent public description, Qantas prides itself on safety, reliability, and customer service, and it survived the massive turbulence of the COVID-19 pandemic.

Here’s what might appeal to a sixty-something investor:

• Dividend Yield: 4.40%, fully franked – higher cash return than Wesfarmers as of the latest data, and strongly tax-effective.
• P/E Ratio: 10.64 – much lower than Wesfarmers, appealing for those looking for value.
• Dividend payments have resumed since 2025, after being paused during the pandemic. The most recent payouts were around 40 cents per share over the past year.

Qantas’s business is more cyclical and sensitive to global shocks, but for investors seeking higher income (and comfortable with travel industry risks), it’s worth a look.

Valuation comparison

Let’s put the numbers side-by-side:

	Wesfarmers	Qantas
Market Cap	$86.58 billion	$13.42 billion
P/E Ratio	29.94	10.64
Dividend Yield	2.93% (100% franked)	4.40% (100% franked)
Dividend per share (latest annual)	$2.22	$0.40
Earnings per share (EPS)	2.534	0.845

Note: Qantas’s reported P/E ratio and EPS numbers align as expected, but be mindful that in airline cycles, earnings can fluctuate more dramatically than for a diversified retailer. Both companies offer fully franked dividends, boosting net yield for many Australian retirees.

Recent share price momentum

Comparing recent share price performance up to 7 October 2026:

• Wesfarmers closed at $76.30, up 0.58% for that day. Year to date, its return stands at -3.7%.
• Qantas closed at $8.87, down 1.33% for the day. Its year-to-date return is -9.6%.

Both shares are in negative territory for 2026 so far, but Wesfarmers has held up a little better than Qantas.

Which is the better buy?

If I had to pick for a 60 year old investor seeking reliable, tax-effective income and peace of mind, I’d lean towards Wesfarmers. Its business diversity, decades-long dividend consistency and defensive exposure across everyday retail sectors tick the classic retiree boxes. Qantas’ dividend yield is higher at present, but the airline game is far more turbulent: it paused dividends during COVID, and earnings remain vulnerable to oil prices, wars, and changing travel habits.

While Wesfarmers trades at a much higher P/E (almost 3x Qantas), I see that as reflecting its more stable earnings and longer-term pedigree as a dividend stock. For retirees focused on sleep-at-night investing, my pick would be Wesfarmers – even if it’s less exciting on the income front right now. Qantas could appeal if you believe in a strong, sustained post-pandemic recovery and are happy to take on extra risk for extra yield, but it wouldn’t be my primary choice for my own nest egg.

The post Wesfarmers vs Qantas: Which ASX share suits a 60-year-old investor? appeared first on The Motley Fool Australia.

More reading

• Wesfarmers vs Coles: Which dividend share is better for retirees?
• Why this top broker is buying Charter Hall, Soul Patts, and Wesfarmers shares
• Down 20%: Is the Wesfarmers share price a top buy?
• How much passive income can I earn from a $950,000 superannuation balance?
• How much passive income can I make from a $100,000 ASX share portfolio?

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 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. 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.