Author: openjargon

Rio Tinto Ltd (ASX: RIO) shares are in the spotlight on Friday and pushing higher in early trade.

At the time of writing, the mining giant’s shares are up 2.5% to $161.25.

This follows the release of an update on its proposed merger with Glencore (LSE: GLEN) that would form a $300 billion behemoth.

Rio Tinto shares higher on Glencore merger update

Investors have been buying the company’s shares today after it confirmed that it is no longer considering a possible merger with Glencore.

According to the release, the miner came to this conclusion after determining that it could not reach an agreement that would deliver value to its shareholders.

It acknowledged that the proposed deal would not align with its recent Capital Markets Day strategy, which highlighted its belief that a “stronger, sharper and simpler Rio Tinto” would “deliver leading returns.”

At the time, Rio Tinto’s chief executive, Simon Trott, said:

We are building from a position of strength for Rio Tinto’s next chapter, sharpening and simplifying the business to deliver leading returns. We will drive performance through discipline, productivity and unmatched growth to unlock the full potential of our diversified portfolio of world-class assets.

Merging with Glencore would almost certainly go against this strategy and not make Rio Tinto sharper and simpler.

In today’s brief announcement about the merger talks ending, Rio Tinto stated:

Rio Tinto assessed the opportunity and came to this view through the disciplined lens set out at its Capital Markets Day in December 2025 – prioritising long-term value and delivering leading shareholder returns.

What went wrong?

While Rio Tinto didn’t provide much colour on the merger talks, Glencore was more open.

It revealed that Rio Tinto wanted to fully lead the merged company with both CEO and chairman roles, which it didn’t agree with. It said:

The key terms of the potential offer were Rio Tinto retaining both the Chairman and Chief Executive Officer roles and delivering a proforma ownership of the combined company which, in our view, significantly undervalued Glencore’s underlying relative value contribution to the combined group, even before consideration of a suitable acquisition control premium.

We concluded that the proposed acquisition on these terms is not in the best interests of Glencore shareholders. It does not reflect our view on long term, through the cycle relative value, including not adequately valuing our copper business, and its leading growth pipeline, and apportioning material synergy value potential.

The post Rio Tinto shares charge higher after Glencore merger collapses appeared first on The Motley Fool Australia.

More reading

• Rio Tinto confirms no merger with Glencore after review
• Which ASX shares benefit from a stronger AUD?
• 5 things to watch on the ASX 200 on Friday
• Why 2026 will be the year of ASX resources and commodities – Expert
• 3 ASX ETFs to target following the RBA interest rate hike

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

The Qantas Airways Ltd (ASX: QAN) share price has been through plenty of volatility, though it’s slightly down (2%) in 2026 to date, boosting the dividend yield.

Qantas has benefited from strong travel demand over the last few years, and this has helped the ASX travel share to restart paying dividends following the difficulty caused by the COVID-19 impacts.

The airline is sharing some of its profits generated each year in the form of passive income – let’s take a look at what’s expected of the company in the near term.

FY26 payout projected

Broker UBS is expecting the business to pay another good dividend in the 2026 financial year.

UBS projects the ASX travel share could increase its annual dividend per share to 35 cents in FY26. At the current Qantas share price, that translates into a cash dividend yield of 3.4%, or 4.9% including the franking credits.

The business is expected to increase its dividend per share in each of the subsequent years, which bodes well for shareholders.

UBS forecasts that the payout could rise to 38 cents per share in FY27, 40 cents per share in FY28, 44 cents per share in FY29, and 43 cents per share in FY30.

That suggests a potential grossed-up dividend yield of approximately 6% in FY30, including franking credits, at the current Qantas share price.

Is this a good time to buy at the current Qantas share price?

The ASX travel share is a popular investment right now. According to a CommSec collation of analyst ratings, there are 11 buy ratings and four hold ratings.

UBS is one of the brokers that rate the business as a buy and is expecting the business to deliver $1.8 billion of net profit in FY26, $1.9 billion in FY27, $2 billion in FY28, $2.2 billion in FY29, and $2.2 billion in FY30.

The broker noted that the Australian international market is scheduled to grow FY26 capacity by 9% year over year, which is a “strong rate of market growth”. There’s a question of whether there’s pressure on market fares or plane seat occupancy unless passenger demand is “keeping pace”.

UBS thinks Qantas’ core customers (corporate and premium leisure) will be relatively loyal amid competition. The broker said that Qantas’ challenge is not so much competitor pressure, but whether the core Australian customers will grow with it.

The broker has a price target of $11.50, implying a possible rise of around 11% within the next year, plus the dividend return.

The post Is the Qantas share price a buy for its 5% dividend yield? appeared first on The Motley Fool Australia.

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• Qantas shares higher on Jetstar Japan sale
• Prediction: In 12 months the Qantas share price and dividend could turn $10,000 into…
• 3 reasons I would buy Qantas shares in February
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• Which airline could deliver almost 25% returns? See what the analysts say

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.

REA Group Ltd (ASX: REA) shares are on the slide on Friday morning.

At the time of writing, the ASX 200 stock is down 18% to 18% to $150.01.

This follows the release of the realestate.com.au operator’s half-year results before the market open.

ASX 200 stock crash on results day

For the six months ended 31 December, REA Group reported a 5% increase in revenue to $916 million. This reflects an 8% increase in Australian revenue and a 31% decline in international revenue.

On a like-for-like basis, which removes acquisitions and divestments from the equation, revenue was up 8% on the prior corresponding period, with Australian revenue up 8% and flat international revenue.

Management notes that Australian Residential revenue increased 7% to $658 million during the first half. This reflects a 14% increase in yield, partially offset by a 6% decline in national listings.

Commercial and New Homes revenue increased 10% to $121 million, Financial Services revenue increased 11% to $58 million, and other revenue was up 8% to $35 million.

Group operating expenses increased 3% over the prior corresponding period to $347 million.

This underpinned a 9% lift in net profit after tax to $341 million for the half. Earnings per share also came in 9% higher at $2.58. Unfortunately, this was short of the market’s expectations.

Performance metrics

REA Group’s first-half performance was driven by its domination of the Australian market.

It revealed that 12.7 million people visited each month on average during the first half, including a record 13.2 million in November. From these, it estimates that 6.4 million people exclusively used realestate.com.au.

It also boasts 146.1 million average monthly visits, which is a staggering 105.9 million more monthly visits than the nearest competitor on average.

Other metrics of note include a 20% increase in average monthly realestate.com.au buyer enquiries, a 38% increase in realestate.com.au seller leads, and a 10% increase in active members.

Commenting on the half, the ASX 200 stock’s CEO, Cameron McIntyre, said:

REA Group’s first half performance was underpinned by strong double-digit yield growth in our core residential business. Our focus on richer, more immersive consumer experiences supported record audience and strong engagement. Our customers continued to recognise the value of our premium products and their ability to maximise campaigns and support stronger sales results.

Into the second half we will continue to drive innovation with new product features and capabilities to enhance the value and experiences we deliver. These, coupled with ongoing strength in property market fundamentals, position REA well for further growth in the remainder of FY26.

Outlook

The ASX 200 stock is anticipating 12% to 14% residential Buy yield growth in FY 2026, with the magnitude of growth potentially impacted by geo mix movements across the remainder of the year.

The company expects positive operating jaws (costs growth lower than revenue growth), with Australian jaws anticipated to be open modestly.

The post Why is the REA share price crashing 18% today? appeared first on The Motley Fool Australia.

More reading

• News Corp shares plunge to a fresh 12-month low on earnings results
• News Corp reports robust Q2 FY26 earnings growth
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Motley Fool contributor James Mickleboro has positions in REA Group. 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.

S&P/ASX 300 Index (ASX: XKO) healthcare share Immutep Ltd (ASX: IMM) is joining the broader market sell-down today.

Shares in the clinical-stage biotech company closed yesterday trading for 38 cents. In morning trade on Friday, shares are changing hands for 37.25 cents apiece, down 2%.

For some context, the ASX 300 is down 1.5% at this same time.

With today’s slide factored in, Immutep shares are up 12.9% over the past year and up 43.3% since 8 December.

Shares got a big lift on 9 December after the company revealed that it had entered into a strategic collaboration and exclusive licensing agreement with Indian-based global pharmaceutical company, Dr. Reddy’s.

Here’s what’s catching ASX investor attention today.

ASX 300 healthcare share hits trial milestone

This morning, Immutep announced that it had achieved a key milestone in its TACTI-004 Phase III trial.

That trial is evaluating its eftilagimod alfa (efti) product in combination with MSD’s anti-PD-1 therapy, KEYTRUDA (pembrolizumab), and chemotherapy as first-line therapy for advanced/metastatic non-small cell lung cancer.

As for that milestone, the ASX 300 healthcare share said it has now achieved 50% of the patient enrolment target for the cancer trial, with 378 patients now taking part globally.

Looking ahead, Immutep said it expects to complete futility analysis in the first quarter of calendar year 2026.

It expects patient enrolment to complete in the third quarter, with enrolment reported to be continuing at a “robust pace”. The company noted that more than 140 clinical sites are now activated across 27 countries.

What did management say?

Commenting on the enrolment achievement for the ASX 300 healthcare shares, Immutep CEO Marc Voigt said:

The excellent pace of enrolment globally in the TACTI-004 trial speaks to the promise of efti and the need for more efficacious therapies in the first line setting for patients with advanced/metastatic non-small cell lung cancer.

Our team continues to work hard to bring this innovative cancer immunotherapy to market and looks forward to delivering on additional important upcoming milestones ahead, including the futility analysis in the first quarter and completing patient enrolment in the third quarter this year.

Voigt said that the combination of efti with KEYTRUDA and chemotherapy has the potential to establish a new standard of care in patients with advanced/metastatic non-small cell lung cancer, which is one of the largest and deadliest indications in oncology.

Immutep is aiming to expand the number of patients who respond to anti-PD-1 therapy, across all PD-L1 expression levels, along with enhancing clinical outcomes and extending patients’ survival.

The post Up 43% since December, ASX 300 healthcare share announces milestone achievement appeared first on The Motley Fool Australia.

More reading

• This ASX biotech just smashed its quarterly update. So why are its shares falling?

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

If you have a high tolerance for risk, then it could be worth checking out the ASX penny stock in this article.

That’s because the team at Bell Potter believes its shares could rocket over the remainder of 2026.

Which ASX penny stock?

The penny stock that Bell Potter is tipping as a (speculative) buy is Bubs Australia Ltd (ASX: BUB).

It is a small rival to infant formula manufacturer A2 Milk Company Ltd (ASX: A2M), with a focus on goat’s milk.

Bell Potter notes that the ASX penny stock has released its quarterly update and revealed revenue largely in line with expectations thanks to strong growth in the United States. It said:

2Q26 Net revenue of $29.9m was up +4% YoY (and vs. BPe of $30.2m and 1Q26 of $25.6m). US IMF growth was +46% YoY to $17.4m and the main driver of revenue growth. T12M Revenue was up +23% YoY to $109.5m a figure broadly comparable to 1Q26. 1H25 Revenues are essentially in line with our forecasts at $55.5m and BUB noted a 1H26 GM of 49.3%, which is above the 40-45% FY26e guidance range and implies a 2Q26 GM of 51.8%.

The broker also points out that there were no comments from management relating to its outlook, but it expects solid growth to continue, setting it up for a decent FY 2027. It adds:

There are no firm outlook comments. We note that BUB has previously provided FY26e guidance of: (1) FY26e revenue of $120-125m, implying a 2H26e annualised run rate of $129-139m (vs. BPe FY27e of $135m); (2) Gross margin target of 40-45% (1Q26 46.4% and 2Q26 of 51.8%) and reported EBITDA of $1-2m.

However, a lot of this will depend on its approval process in the US, where it is seeking permanent access. It adds:

BUB continues to progress with its USFDA application for permanent access. The USFDA has confirmed that it will continue to facilitate the importation, sale, and distribution of BUB product while its review is being finalised.

Big potential returns

According to the note, the broker has responded to the update by upgrading the ASX penny stock to a speculative buy rating with an improved price target of 18 cents.

Based on its current share price of 12.7 cents, this implies potential upside of 42% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

We upgrade to Buy, Speculative risk rating (prev. Hold, Speculative rating). 2Q26 revenue growth was consistent with our expectations, although 1H26e gross margins were stronger. USFDA remains the largest risk factor, however, we suspect the delays are more linked to 2025 shutdowns than BUB product. New management look to be increasing brand support, resulting in what looks a more consistent US revenue profile. FY26e margin risk looks to the upside following a strong 1H26 outcome.

The post This ASX penny stock could rocket 40%, says broker appeared first on The Motley Fool Australia.

More reading

• News Corp shares plunge to a fresh 12-month low on earnings results
• Rio Tinto shares charge higher after Glencore merger collapses
• Is the Qantas share price a buy for its 5% dividend yield?
• Why is the REA share price crashing 18% today?
• Up 43% since December, ASX 300 healthcare share announces milestone achievement

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

The Neuren Pharmaceuticals Ltd (ASX: NEU) share price is in focus today after the company announced its Koala Phase 3 clinical trial of NNZ-2591 for Phelan-McDermid syndrome (PMS) has dosed its first patient, marking a key milestone as the first Phase 3 trial ever in PMS.

What did Neuren Pharmaceuticals report?

• First patient has commenced dosing in the Koala Phase 3 trial of NNZ-2591 for PMS
• Trial will enrol around 160 children aged 3–12 years with PMS
• 25 families referred so far; demand strong with 37 more families on waitlists
• US FDA Fast Track, Rare Pediatric Disease, and Orphan Drug designations for NNZ-2591
• Continues as Presenting Sponsor for the 2026 PMSF Family Conference in Colorado

What else do investors need to know?

The Koala trial is a randomised, double-blind, placebo-controlled study, testing the safety and effectiveness of NNZ-2591. Right now, only two US sites are active, but over 20 more sites are expected to launch through the first half of 2026, supporting broader trial access for families.

Phelan-McDermid syndrome currently has no approved treatment options. The high level of interest from families and clinicians supports strong trial recruitment. Neuren’s commitment includes ongoing support of awareness through community initiatives like the upcoming PMS Foundation conference.

What did Neuren Pharmaceuticals management say?

Neuren CEO Jon Pilcher said:

We are excited to have started the treatment phase of our Koala Phase 3 study and are very encouraged by the level of interest in the PMS community. We are proud to be the presenting sponsor of the PMSF Family Conference in July and we anticipate strong momentum for Koala as trial sites around the US progressively activate during the first half of this year.

What’s next for Neuren Pharmaceuticals?

Looking ahead, Neuren plans to ramp up trial site activation, aiming for 20+ locations across the US by mid-year. This should pave the way for faster patient recruitment and strengthen Neuren’s position in rare paediatric neurological disorders.

Neuren’s strategy remains focused on addressing urgent unmet medical needs in childhood neurological conditions, with NNZ-2591 also being developed for other neurodevelopmental disorders besides PMS.

Neuren Pharmaceuticals share price snapshot

Over the past 12 month, Neuren Pharmaceuticals shares have declined 5%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Neuren Pharmaceuticals kicks off Phase 3 trial in rare syndrome appeared first on The Motley Fool Australia.

More reading

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• News Corp reports robust Q2 FY26 earnings growth
• REA Group earnings: Profit and dividend up in strong H1 FY26 result
• Rio Tinto confirms no merger with Glencore after review
• Harness momentum with this new ASX ETF

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The All Ordinaries Index (ASX: XAO) has gained 5.4% over the past 12 months, with ASX All Ords tech stock Plenti Group Ltd (ASX: PLT) delivering almost four times those gains.

And that’s despite the sharp retrace over the past week and a half.

Plenti shares closed down 0.49% on Thursday, trading for $1.015 apiece.

While that leaves the Plenti share price down 20.7% from the recent closing highs posted on 20 January, shares remain up a market-beating 19% over the past 12 months.

And looking to the year ahead, the analysts at Moelis Australia expect an even stronger performance from the ASX All Ords tech stock.

Here’s why.

Plenty to like about Plenti shares

Plenti released its December quarter update (Q2 FY 2026) last Wednesday, 28 January.

Highlights for the three months to 31 December included a 25% year-on-year increase in loan originations to $480 million. That marked the fifth consecutive quarter of new all-time loan origination for the ASX All Ords tech stock.

The company’s loan portfolio increased by 24% from Q2 FY 2025 to $2.98 billion. And Plenti reported quarterly revenue of $79.9 million, up 22%.

Commenting on the quarterly results on the day, Plenti CEO Adam Bennett said, “Plenti has delivered another exceptional quarter, achieving a fifth consecutive quarterly loan originations record of $480 million.”

Bennett added:

In addition to very strong third quarter results, it has been fantastic to hit our FY26 loan portfolio target of $3 billion, well ahead of our original anticipated timing. This was an ambitious strategic goal when we set it in early calendar 2025 and achieving it in January 2026 is a testament to the hard work of the entire Plenti team.

Why Moelis has a buy rating on the ASX All Ords tech stock

Following Plenti’s quarterly update, Moelis reaffirmed its buy rating on the stock.

The broker noted:

PLT is executing strongly across its core verticals. This was confirmed with today’s announcement that PLT has surpassed its $3.0bn total loan book target (incl. NAB) in Jan’26, ~2.5 months earlier than expected. Ex-NAB we expect ~18% total loan book growth in FY26. Acceleration of Horizon 2 should help sustain growth in FY27/28, and could provide upside to our estimates.

Better than expected credit performance gives us confidence in PLT’s underlying loan book.

The ASX All Ords tech stock has partnered with National Australia Bank Ltd (ASX: NAB). At its December quarter results, the company reported, “The ‘NAB powered by Plenti’ car loan portfolio increased to $90.1 million.”

Connecting the dots, Moelis said Plenti’s valuation remains “undemanding”.

The broker has a $1.87 price target on Plenti shares, representing a potential 83.3% upside from Thursday’s closing price.

The post Top broker forecasts another 83% upside for this outperforming ASX All Ords tech stock appeared first on The Motley Fool Australia.

More reading

• This ASX small-cap stock is up 56% in a year, so why did shares fall after today’s update?

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

The Australian share market has plenty of quality businesses, but it represents only a small slice of the global economy.

By investing internationally, you gain exposure to industries, companies, and growth drivers that simply don’t exist locally.

The good news is that ASX exchange traded funds (ETFs) make that process easy, allowing investors to access world-class businesses without leaving the local market.

With that in mind, here are three ASX ETFs that offer different ways to invest in some of the best stocks in the world.

Vanguard MSCI International Shares ETF (ASX: VGS)

The first ASX ETF to consider is the Vanguard MSCI International Shares ETF.

Rather than trying to pick which country or sector will outperform, this fund takes a broad, all-weather approach. It invests across developed markets, giving exposure to thousands of companies spanning the US, Europe, and Asia.

Holdings include businesses such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nestle (SWX: NESN).

What makes the Vanguard MSCI International Shares ETF appealing is not any single stock, but the way it captures global economic progress as a whole. As industries rise and fall, and new leaders emerge, the index naturally evolves. This makes this fund a useful foundation for investors who want global exposure without having to constantly adjust their portfolio.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Another way to invest in the world’s best stocks is through a quality lens, which is exactly what the Betashares Global Quality Leaders ETF aims to do.

This fund focuses on businesses with strong profitability, robust balance sheets, and consistent earnings. Instead of spreading exposure as widely as possible, it narrows the field to stocks that have demonstrated an ability to perform through different market conditions.

Holdings include stocks such as Johnson & Johnson (NYSE: JNJ), Tokyo Electron, and Meta Platforms (NASDAQ: META). These are businesses that often benefit from pricing power, brand strength, or structural advantages.

This fund was recently recommended to clients by Betashares.

VanEck MSCI International Value ETF (ASX: VLUE)

A final ASX ETF to consider is the VanEck MSCI International Value ETF, which takes a different approach to global investing.

Rather than focusing on growth or quality, it looks for international companies trading at relatively attractive valuations based on fundamentals such as earnings, cash flow, and book value. This often leads to exposure in areas that are out of favour but not necessarily broken.

Holdings include companies such as Intel (NASDAQ: INTC), Verizon Communications (NYSE: VZ), and Toyota Motor Corporation (FRA: TOM). These businesses may not dominate headlines, but they play important roles in the global economy.

VanEck recently recommended this fund to clients.

The post Want to invest in the best stocks in the world? Try these ASX ETFs appeared first on The Motley Fool Australia.

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• 3 super ASX ETFs to add to your SMSF
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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 positions in and has recommended Apple, Intel, Meta Platforms, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson, Nestlé, and Verizon Communications. The Motley Fool Australia has recommended Apple, Meta Platforms, Microsoft, and 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.

The Charter Hall Retail REIT (ASX: CQR) share price is in focus today after the group reported first half FY26 operating earnings of $75.6 million, up 3.4%, and a statutory profit of $240.7 million.

What did Charter Hall Retail REIT report?

• Operating earnings of $75.6 million, or 13.0 cents per unit, up 3.4% on 1H FY25
• Distribution of 12.8 cents per unit, up 4.1% on 1H FY25
• Statutory profit of $240.7 million
• Net Tangible Assets (NTA) per unit of $4.91, up 5.8% since June 2025
• Balance sheet gearing of 29.2%
• Portfolio occupancy steady at a high 99.1%

What else do investors need to know?

Charter Hall Retail REIT continued to reshape its convenience retail portfolio, investing in new assets while divesting non-core properties. Highlights included increasing net lease assets to 49% of the portfolio and strong rental growth across shopping centres and net lease retail properties.

The REIT agreed to refinance its debt platform, securing a new $1.6 billion facility at a lower margin and longer maturity, helping manage future interest costs. External revaluations pushed up the portfolio’s value by $153 million, with cap rates tightening to an average of 5.55%.

What did Charter Hall Retail REIT management say?

Charter Hall Retail CEO, Ben Ellis, said:

CQR’s convenience retail portfolio has performed strongly across all metrics over the last six months. The supply of new retail property in Australia is currently around 50% lower than levels seen a decade ago. As population growth continues, demand for convenience‑based retail real estate is rising against a backdrop of limited new supply. This supports strengthening rental growth and attractive capital growth for the sector. These dynamics are reflected in CQR’s NTA per unit increasing by 5.8% from $4.64 to $4.91 over the half, driven by strong rental growth, enhanced by cap rate compression.

What’s next for Charter Hall Retail REIT?

Looking ahead, management reaffirmed FY26 operating earnings guidance of at least 26.4 cents per unit, representing 4% growth, and distributions of no less than 25.5 cents per unit, up 3.3%. Several transactions are due to settle in the second half, including the acquisition of three new shopping centres and increasing stakes in high-quality convenience assets.

The REIT will move to quarterly distribution payments from Q1 FY26 and continues to target portfolio curation focused on strong, income-producing retail assets.

Charter Hall Retail REIT share price snapshot

Over the past 12 months, Charter Hall Retail REIT shares have risen 16%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Charter Hall Retail REIT posts higher earnings and distributions in 1H FY26 appeared first on The Motley Fool Australia.

More reading

• News Corp reports robust Q2 FY26 earnings growth
• REA Group earnings: Profit and dividend up in strong H1 FY26 result
• Rio Tinto confirms no merger with Glencore after review
• Harness momentum with this new ASX ETF
• 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 positions in and has recommended Charter Hall Retail REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Wesfarmers Ltd (ASX: WES) shares are often seen as a cornerstone stock for long-term Australian investors, and for good reason.

With a diversified portfolio led by Bunnings, Kmart Group, and Officeworks, the company has built a reputation for reliable earnings and dividends.

But does that make Wesfarmers shares a good buy for passive income today?

Long history of payouts

At current prices of $86.19, Wesfarmers shares offer a dividend yield of roughly 2.5%. While that’s not the highest yield on the ASX, dividends are fully franked, which meaningfully lifts the effective yield for many investors.

The company pays dividends twice a year. The company has a long history of maintaining or gradually increasing payouts, particularly since the Coles Group Ltd (ASX: COL) demerger simplified the business and improved cash flows.

Steady, sustainable dividends

Wesfarmers’ dividend policy is conservative and earnings-linked. Management prioritises balance sheet strength and reinvestment while returning surplus capital to shareholders when conditions allow.

Wesfarmers’ approach has resulted in steady, sustainable dividends rather than aggressive payout growth, which tends to appeal to long-term income investors. The forecast on CommSec suggests a grossed-up yield of 3.7%, including franking credits.

Effective profit machine

The company’s biggest strength lies in its cash-generating retail businesses. Bunnings remains a dominant force in home improvement, while Kmart continues to gain market share through its low-cost model.

Wesfarmers continues to find new places to invest for long-term earnings growth, and this makes it a very compelling business. Initiatives include healthcare expansion, selling Anko products internationally, product expansion in Bunnings, and lithium mining.

Wesfarmers shares are not the most defensive stock on the ASX, but the company stands out with a return on equity above 30%. This highlights how effectively the $95 billion company generates profits from the capital retained rather than paid out to shareholders.

Wesfarmers’ diversification provides resilience during economic slowdowns and supports ongoing dividend payments. A strong balance sheet and disciplined capital allocation further underpin income reliability.

Slow dividend growth

That said, Wesfarmers shares aren’t without weaknesses. The headline yield is modest compared to higher-yielding sectors like banks or utilities, and dividend growth is unlikely to be rapid.

Earnings are also exposed to consumer spending cycles, meaning prolonged cost-of-living pressures could weigh on margins and slow dividend increases. Valuation is another consideration, with the stock often trading at a premium due to its quality and defensive appeal.

What next for Wesfarmers shares?

From an analyst perspective, expectations lean toward moderate returns rather than outsized gains. Most forecasts point to continued earnings and dividend growth, but at a measured pace.

Share price upside is generally viewed as limited in the near term, placing the emphasis squarely on income stability and long-term compounding rather than quick capital gains. The average 12-month price target is $81.57, 5% below the current share price.  

Foolish Takeaway

Overall, Wesfarmers looks well-suited to investors seeking dependable, fully-franked income backed by high-quality businesses.

It may not deliver a standout yield today, but for passive investors who value reliability and gradual growth, Wesfarmers remains a solid option.

The post Are Wesfarmers shares a buy for passive income? appeared first on The Motley Fool Australia.

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