Author: openjargon

When geopolitical risk collides with tight global energy supply, investors tend to reach for the same playbook. 

Buy the producers. Buy them quickly.

That is precisely what has happened so far in 2026. And few ASX 200 names have benefited more than Woodside Energy Group Ltd (ASX: WDS).

The Woodside share price has climbed more than 40% since the start of the year. For context, the broader S&P/ASX 200 Index (ASX: XJO) has gained roughly 2–3% over the same period. 

The gap tells its own story.

The Iran premium and what it means

The rally was triggered by the rapid escalation in the US–Iran conflict in late February, which threatened shipping flows through the Strait of Hormuz — one of the world’s most critical oil transit corridors.

Brent crude, which closed 2025 below US$65 per barrel, surged past US$100 quickly, then has been on a rollercoaster in the weeks that have followed. Failed peace talks, combined with a US announcement of a blockade on vessels using Iranian ports, have continued to keep the crude near highs.

Woodside has no operations in the affected region. That matters. It means the company collects the higher oil and LNG price benefit with no direct operational exposure to the conflict. Supply disruption elsewhere is essentially a windfall.

This is the kind of asymmetric positioning that generates outsized share price returns in a short period of time. It is also the kind of positioning that makes forward-looking investors nervous about what happens when the premium fades.

More than just oil prices

The easy narrative is that Woodside is simply riding the oil price. But the underlying business has actually strengthened.

In its full-year 2025 result, Woodside reported record annual production of 198.8 million barrels of oil equivalent, topping its own guidance. Costs fell 4% over the year. Its Louisiana LNG project in the United States — a significant future growth engine — was confirmed as on schedule and on budget following an investor site visit earlier this year.

Woodside’s new Managing Director and CEO Liz Westcott, who was permanently appointed earlier in 2026, has reaffirmed the company’s growth strategy, with a focus on project execution and shareholder value creation. That kind of continuity matters when a business is in the middle of a major capital programme.

On the income side, Woodside offers a dividend yield of over 5% at the time of writing, fully franked. 

Foolish takeaway

The real question is not whether Woodside deserves to be higher than it was in January. It almost certainly does. The harder question is how much of the 40%-plus move reflects a stronger business, and how much reflects a market still pricing in geopolitical stress.

Strip out the Iran premium and the oil price spike, and Woodside still looks like a business that was improving anyway. Record production, lower costs, a major growth project staying on track, and a new CEO with a clear mandate all point to a company with more going on than a simple commodity rally.

At the same time, it would be naïve to ignore how much of the recent share price strength has come from forces outside Woodside’s control. The path of Brent crude, the direction of Middle East tensions, and the mood of the market can all shift quickly. If oil prices normalise, Woodside shares may well give back some of this year’s gains.

That is the trade-off with energy stocks. They can offer powerful earnings leverage when the cycle is moving your way, but they rarely move in a straight line.

So perhaps the better lens is not asking whether Woodside is cheap or expensive based only on today’s oil price. It is asking what kind of business sits underneath the volatility, and whether that business is becoming more resilient, more productive, and better positioned for the next few years than it was before this rally began.

On that front, the case still looks interesting. The commodity risk is real, and position sizing matters. Even so, if the geopolitical premium eventually fades, Woodside may still be left with something more durable: a stronger operating base, visible project momentum, and a business that could remain worth watching long after the headlines cool.

The post Why the Woodside share price has climbed 40% in 2026 appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Forget Woodside shares, this ASX energy stock could rise over 70%
• 5 powerhouse ASX dividend shares to buy and hold until 2050
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Leigh Gant 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 EVT Ltd (AS: EVT) share price is in focus after the company provided a FY26 update, highlighting expected normalised EBITDA growth and continued strength in its Hotels division.

What did EVT report?

• Normalised EBITDA for FY26 is expected to grow on the prior year
• Hotels division delivering over 60% of group normalised EBITDA, forecast to be marginally up on a record year
• Thredbo full year normalised EBITDA estimated between $22–23 million
• Entertainment segment anticipating reasonable growth, supported by CineStar’s strong performance
• Portfolio changes including acquisition of QT Auckland and upgraded rooms at QT Queenstown

What else do investors need to know?

The Hotels segment is benefitting from robust underlying demand, the upcoming launch of EVT Connect Hospitality in December 2025, and the addition of new and upgraded properties. However, these positives are partially countered by refurbishment disruptions at QT Queenstown and QT Gold Coast, and by the continued impact of the Middle East crisis—particularly on key drive destinations during the Easter trading period.

In Entertainment, growth is supported by a solid year-to-date contribution from CineStar in Germany. Nevertheless, disruptions at the Bondi site and Manukau in Auckland, along with the FIFA World Cup’s impact on cinema visitation in June–July, are expected to weigh on results. The company will also continue implementing its ‘Fewer, Better’ strategy by exiting four locations during FY26.

What’s next for EVT?

Looking ahead, EVT remains focused on delivering EBITDA growth and strengthening its portfolio, particularly in Hotels and Entertainment. The launch of new hospitality offerings and property upgrades is expected to support future profitability, while management continues to monitor demand patterns and adjust strategies as conditions evolve.

The group also anticipates ongoing volatility linked to international events and market trends but remains optimistic about resilient domestic demand and continued operational improvements.

EVT share price snapshot

Over the past 12 months, EVT shares have risen 1%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

The post EVT flags FY26 EBITDA growth amid hotel strength and portfolio changes appeared first on The Motley Fool Australia.

More reading

• NEXTDC launches $750m wholesale notes to boost growth funding
• Judo Capital reaffirms FY26 profit guidance as lending growth continues
• Newmont declares quarterly dividend for ASX investors
• Fortescue invests $680m in Pilbara Green Energy Project
• IGO lowers Greenbushes guidance

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.

Investors are becoming increasingly conscious about where they invest their money. This has led to a boom in something called ESG investing.

“ESG” stands for environmental, social, and governance considerations. 

It is becoming increasingly important for investors who are looking not only for financial returns but also to positively impact the world through their investment choices.

In a practical sense, this might involve investing in specific companies that align with personal beliefs. 

It can also mean investors actively avoid certain companies or sectors involved in industries or practices that are not ethical. 

This could be (for example) weapons manufacturers, or companies causing significant harm to the environment. 

One of the simplest ways for investors to target ESG principles is through an ASX ETF. 

There are plenty of funds that now use screening processes to target companies that align with ethical considerations. 

Of course, alongside these decisions, is the underlying goal of building wealth. 

WIth that in mind, here are how some of the most popular ESG ASX ETFs are performing this year. 

Betashares Capital Ltd – Betashares Climate Change Innovation ETF (ASX: ERTH)

Geopolitical conflict has sent many ASX ETFs into the red this year. 

However this Betashares fund has been beating indexes like the S&P/ASX 200 Index (ASX: XJO). 

It is up approximately 5% year to date. 

This ASX ETF is made up of a portfolio of roughly 100 leading global companies that derive at least 50% of their revenues from products and services that help to address climate change and other environmental problems through the reduction or avoidance of CO2 emissions. 

This covers clean energy providers, along with leading companies tackling green transport, waste management, sustainable product development, and improved energy efficiency and storage.

Betashares Australian Sustainability Leaders ETF (ASX: FAIR)

It has been a different story in 2026 for this ASX ETF. 

This fund from Betashares is down roughly 8% year to date. 

It includes Australian companies that have passed screens to exclude companies with direct or significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations.

The Fund’s methodology also prefers companies classified as ‘Sustainability Leaders’ based on their involvement in business activities aligned to the United Nations Sustainable Development Goals.

BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

This ethical ASX ETF has also fallen in 2026. 

At the time of writing, it is down 6% year to date. 

Unlike the previous fund mentioned above, this ASX ETF focusses on global companies rather than just Australian ones. 

It holds a diversified portfolio of large, sustainable, ethical companies from a range of global locations. 

Ishares Core MSCI Australia Esg Leaders ETF (ASX: IESG)

This fund from iShares aims to provide exposure to large, mid and small cap segments of the Australian market with better sustainability credentials relative to their sector peers.

It has proven relatively resilient in a volatile market this year, falling roughly 3% in that span. 

The post What is the best performing ESG ASX ETF in 2026? appeared first on The Motley Fool Australia.

More reading

• The compelling case for investing in this climate tech ASX ETF
• Own ASX IOZ or other iShares ETFs? Here are the dividends you’ll get today
• How ASX ETF investors repositioned as the Iran war shook markets
• Own ASX IOZ or other iShares ETFs? Here is your next dividend

Motley Fool contributor Aaron Bell has positions in BetaShares Global Sustainability Leaders ETF. 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 NextDC Ltd (ASX: NXT) share price is in focus after the company announced it has successfully priced and allocated a $750 million wholesale subordinated notes offer, boosting pro forma liquidity to approximately $6.6 billion.

What did NEXTDC report?

• Priced and allocated $750 million of floating rate subordinated notes in the wholesale debt market
• Notes have a 4-year tenor, maturing April 2030, with a coupon of 3-month BBSW + 350 basis points
• Strengthens and diversifies funding sources as part of NEXTDC’s $2.2 billion capital plan
• Pro forma liquidity (cash and undrawn facilities) rises to about $6.6 billion post-issue

What else do investors need to know?

NEXTDC’s Wholesale Notes Offer delivers on plans flagged earlier this month, complementing its recent entitlement offer and $1.7 billion hybrid securities offer. The new funding package is designed to underpin the company’s ongoing expansion, support major data centre projects, and maintain a robust balance sheet.

The new subordinated notes rank below the company’s existing senior debt but above its hybrid securities and shares. The minimum investment is $500,000 for Australian wholesale clients, and the notes will not be listed on the ASX.

What did NEXTDC management say?

CEO and Managing Director Craig Scroggie said:

The successful allocation of our inaugural Wholesale Notes Offer represents another important step in executing NEXTDC’s Capital Plan and further strengthens the Company’s long-term capital structure. We are delighted with the strong support received from institutional and high net worth investors, which is further validation of our growth strategy and the long-term trajectory of the Australian data centre market.

What’s next for NEXTDC?

NEXTDC is focused on executing its capital plan to fund the next stage of growth, including record contracted utilisation across its data centre portfolio. The increased liquidity positions the company to seize new opportunities, support large-scale developments, and stay at the forefront of Australia’s fast-evolving data infrastructure sector.

Investors can expect NEXTDC to continue seeking innovative ways to diversify funding, maintain flexibility, and strengthen its leadership position in the Australian and Asia Pacific data centre market.

NEXTDC share price snapshot

Over the past 12 months, NEXTDC shares have risen 35%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

The post NEXTDC launches $750m wholesale notes to boost growth funding appeared first on The Motley Fool Australia.

More reading

• Judo Capital reaffirms FY26 profit guidance as lending growth continues
• Newmont declares quarterly dividend for ASX investors
• Fortescue invests $680m in Pilbara Green Energy Project
• IGO lowers Greenbushes guidance
• PLS Group provides March quarter earnings update

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.

DroneShield Ltd (ASX: DRO) shares have delivered one of the ASX’s most eye-catching runs.

The ASX defence tech stock is up a staggering 209% over the past 12 months and 21% year to date. But zoom in closer and the picture gets choppier, as shares have slipped 5% over the past month and are down 23% over six months.

So, what’s next?

Expansion stands out

Let’s start with the numbers. Growth remains exceptionally strong.

This week, DroneShield reported quarterly revenue of $74.1 million, up 121% on the prior corresponding period, and marking its second-highest quarter on record. That kind of expansion is hard to ignore, particularly in a sector benefiting from rising global defence spending.

Cash flow tells an even stronger story. Customer cash receipts surged to a record $77.4 million for the quarter, up 360% year-on-year. At the same time, DroneShield shares delivered its fourth consecutive quarter of positive operating cash flow. That’s an important milestone for a fast-growing tech business.

Flexibility to invest

The balance sheet is another major strength. DroneShield finished the period with approximately $222 million in cash and no debt. That gives it significant flexibility to invest in research and development, scale operations, and potentially pursue acquisitions, without needing to tap investors in DroneShield shares for more capital.

Then there’s the pipeline. The company has flagged a sales pipeline worth around $2.2 billion across more than 300 projects. That provides a strong indication of future demand and highlights the scale of opportunity ahead.

Growing, but also maturing

Importantly, the business model is evolving. While hardware remains a key driver, DroneShield is rapidly expanding its software and SaaS offerings. That segment grew more than 200% during the quarter. Over time, management aims to lift recurring revenue to 30% of total revenue by 2030.

That shift matters. Recurring revenue tends to be more predictable and can support higher valuations, particularly for technology-focused companies.

Put simply, Droneshield isn’t just growing, it’s maturing.

So why the recent pullback?

After such a massive rally, some volatility is inevitable. High-growth stocks often experience sharp swings as investors reassess valuations and expectations. Even strong results can trigger profit-taking if expectations were already elevated.

That appears to be part of the story here.

Despite the recent weakness, analysts remain optimistic. Bell Potter Securities recently reiterated its buy rating on DroneShield shares and set a 12-month price target of $4.80. That suggests potential upside of around 29% from current levels.

Foolish Takeaway?

DroneShield is delivering rapid growth, building a strong balance sheet, and expanding into higher-quality recurring revenue streams. Those are powerful tailwinds.

But after a 200%+ run, investors in Droneshield shares should expect volatility along the way.

If the company continues to execute, the long-term story looks compelling. Just don’t expect a straight line higher from here.

The post Up 209%, what’s next for DroneShield shares? appeared first on The Motley Fool Australia.

More reading

• 5 ASX 200 shares with renewed buy ratings this week
• Will global defence ASX ETFs keep climbing? Expert
• Are DroneShield shares a buy after its latest update?
• 5 things to watch on the ASX 200 on Thursday
• 3 key takeaways from DroneShield’s latest results

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 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.

The Judo Capital Holdings Ltd (ASX:JDO) share price is in focus after the bank reaffirmed its FY26 profit before tax guidance, aiming for $180–$190 million, despite increasing its collective provision in response to economic uncertainties. Strong Q3 lending growth and a higher net interest margin (NIM) also stood out this quarter.

What did Judo Capital report?

• Gross loans and advances reached $13.8 billion at 31 March, up from $13.4 billion at December 2025
• Net interest margin (NIM) rose to approximately 3.15% for Q3, up from 3.03% in 1H26
• Total deposits increased to $11.5 billion, with the blended cost of deposits at 0.74% over 1‑month BBSW
• Operating expenses remained in line with previous guidance
• Collective provisions coverage increased to 0.94% of loans as at March, up from 0.89% in December
• Profit before tax guidance reaffirmed at $180–$190 million for FY26

What else do investors need to know?

Judo’s asset quality remained stable with 90-days-past-due and impaired loans at 2.65% of gross loans, slightly improving from 2.66% in December. The bank completed a detailed review of its loan portfolio and decided to strengthen its forward-looking provision, especially for sectors sensitive to economic shifts like agriculture and transport.

Judo’s new savings products, launched over the past two quarters, have already accumulated over $1.1 billion in balances. The cost of funding remains below historical averages, but deposit pricing is expected to normalise by year-end.

What did Judo Capital management say?

CEO Chris Bayliss said:

Judo continues to give its full support to Australian small and medium-sized enterprises as they navigate heightened volatility in the operating environment. Our unique relationship-led approach and low ratio of customers to bankers means we are close to our customers, and we are well positioned to understand and support their individual lending needs.

What’s next for Judo Capital?

Judo reaffirmed its full-year guidance, though now sees profit before tax landing towards the lower end of the $180–$190 million range after its prudent increase to provisions. The bank plans to keep investing in new growth initiatives and deeper penetration into regional and agribusiness lending.

With a healthy capital position and ongoing focus on disciplined cost management, Judo is positioning itself for sustainable growth. Management is targeting a net interest margin at the upper end of guidance and expects funding costs to gradually rise to more typical levels by the end of FY26.

Judo Capital share price snapshot

Over the past 12 months, Judo Capital shares have declined 21%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

The post Judo Capital reaffirms FY26 profit guidance as lending growth continues appeared first on The Motley Fool Australia.

More reading

• NEXTDC launches $750m wholesale notes to boost growth funding
• Newmont declares quarterly dividend for ASX investors
• Fortescue invests $680m in Pilbara Green Energy Project
• IGO lowers Greenbushes guidance
• PLS Group provides March quarter earnings update

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 S&P/ASX 200 Index (ASX: XJO) has fallen this week as eyes stay firmly placed on the conflict between the US and Iran.

According to the ABC, both sides maintain there is a ceasefire in place and as a second round of peace talks lingers.

This is despite the US announcing ships from all Iranian ports were under blockade. 

It appears this grey area is weighing on investor sentiment. 

On the positive side, during the week, several ASX shares received updated guidance from brokers. 

Some of these shares are expected to double in the next 12 months after experiencing heavy sell-offs recently.

Here are some of the latest recommendations. 

Cochlear Ltd (ASX: COH)

Cochlear shares have been some of the most heavily sold off in 2026. 

The ASX healthcare stock fell a further 4% yesterday, and is now down 63% this year. 

Most of this damage was done this week after the company significantly downgraded its earnings guidance.

So where does this leave the stock now?

Some brokers believe the sell-off has been overdone, creating a buy-low opportunity. 

This includes a recent buy rating from UBS analyst David Low.

Low has a 12-month target of $302 on this ASX 200 healthcare share.

This implies more than 200% upside over the next 12 months.

Buyers should be aware this optimism isn’t reciprocated everywhere, as Morgans rates the company as a hold. 

Black Pearl Group Ltd (ASX: BPG)

Black Pearl Group is a recently listed data technology platform provider. 

Bell Potter has been quick to get behind these ASX shares, with consistent buy ratings throughout 2026. 

This week, the broker retained its speculative buy rating on the ASX tech stock with an improved price target of $1.82 (from $1.76).

Yesterday, these ASX shares fell more than 12%, which has created even more upside for optimistic investors. 

It closed trading yesterday at 68 cents per share. 

If it reaches the price target set by Bell Potter, that would be a 168% rise. 

Generation Development Group Ltd (ASX: GDG)

Another ASX stock that fell significantly this week was Generation Development Group. 

The ASX financials company provides investment bonds and investment-linked lifetime annuities which offer innovative and tax-efficient solutions for wealth accumulation, estate planning and generating regular income in retirement.

Its share price crashed 22% on Wednesday following its March 2026 quarterly update.

Following this result, the team at Bell Potter reduced its price target on this ASX 200 stock to $6.20 (previously $7.40). 

However from yesterday’s closing price of $3.60, this updated target indicates an upside potential of 72%. 

The post Could these ASX stocks really be set to double after crashing this week? appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 shares newly upgraded this week
• What is Morgans saying about Cochlear and Northern Star shares?
• 5 ASX 200 shares with renewed buy ratings this week
• Cochlear stock down 40%: How much has this cost ASX investors?
• Broker reiterates buy ratings on 2 ASX shares

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

The Newmont Corporation CDI (ASX: NEM) share price is in focus today after the company announced a quarterly dividend of US$0.26 per CDI, with payment due on 22 June 2026.

What did Newmont report?

• Quarterly dividend declared: US$0.26 per CDI
• Dividend relates to the period ending 31 March 2026
• Ex-dividend date: 26 May 2026
• Record date: 27 May 2026
• Payment date: 22 June 2026
• Dividend is 100% unfranked (no franking credits)

What else do investors need to know?

This quarterly dividend will be paid primarily in Australian dollars to CDI holders, although investors can elect to receive payment in US or New Zealand dollars. The AUD and NZD amounts, as well as the applicable exchange rates, will be confirmed and released to the market by 16 June 2026, just ahead of the payment date.

To receive dividends in a currency other than the default, securityholders must provide updated instructions via Computershare by 5pm AEST, Wednesday 27 May 2026. Holders without a registered bank account in Australia, New Zealand, or the US may use Computershare’s Global Wire payment option.

What’s next for Newmont?

The declared dividend highlights Newmont’s ongoing commitment to returning value to shareholders through regular distributions. Investors should keep an eye out for the AUD equivalent dividend rates, which will be announced closer to the payment date.

Looking ahead, dividend policy and future payments will depend on ongoing company performance, prevailing gold prices, and broader market conditions.

Newmont share price snapshot

Over the past 12 months, Newmont shares have risen 81%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

The post Newmont declares quarterly dividend for ASX investors appeared first on The Motley Fool Australia.

More reading

• NEXTDC launches $750m wholesale notes to boost growth funding
• Judo Capital reaffirms FY26 profit guidance as lending growth continues
• Fortescue invests $680m in Pilbara Green Energy Project
• IGO lowers Greenbushes guidance
• PLS Group provides March quarter earnings update

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.

Building a steady income stream from ASX investments is a common goal for many Australians.

While most ASX shares and exchange traded funds (ETFs) pay dividends a couple of times a year, a small number are structured to provide income on a monthly basis.

Here are two ASX ETFs that follow this approach and could be worth considering if you’re an income investor:

Betashares S&P Australian Shares High Yield ETF (ASX: HYLD)

The first ASX ETF to consider is the Betashares S&P Australian Shares High Yield ETF.

This ETF provides exposure to a portfolio of 50 Australian shares with high forecast dividend yields. It also applies screening to reduce the risk of including companies with unsustainable payouts.

Its holdings include companies such as mining giant BHP Group Ltd (ASX: BHP) and big four banks Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ).

The Betashares S&P Australian Shares High Yield ETF distributes income monthly, which sets it apart from many other Australian equity ETFs. This structure can provide a more regular cash flow for investors.

Furthermore, its broad exposure to dividend-paying ASX shares provides diversification, which is never a bad thing.

Betashares S&P 500 Yield Maximiser Complex ETF (ASX: UMAX)

Another ASX ETF to consider is the Betashares S&P 500 Yield Maximiser Complex ETF.

This ETF is very different to the Betashares S&P Australian Shares High Yield ETF. It focuses on generating income from a portfolio linked to the S&P 500 index.

However, instead of relying on dividends, it uses an options-based strategy, typically selling call options over the underlying portfolio to generate income. The premiums received from these options form a key part of the fund’s monthly distributions.

This ultimately means that the income generated is expected to significantly exceed the dividend yield of the underlying share portfolio over the medium term. For example, at present, it trades with an above-average dividend yield of 6.6%. This is significantly greater than the average dividend yield of the S&P 500 index.

Its underlying exposure includes major US stocks such as iPhone maker Apple (NASDAQ: AAPL), software giant Microsoft Corporation (NASDAQ: MSFT), and ecommerce and cloud leader Amazon.com (NASDAQ: AMZN).

It is worth noting that unlike the Betashares S&P Australian Shares High Yield ETF, which could generate capital gains as well as income, the Betashares S&P 500 Yield Maximiser Complex ETF’s strategies may limit some capital growth.

The post How to generate monthly income using ASX ETFs appeared first on The Motley Fool Australia.

More reading

• Global investing is easy on the ASX with these ETFs
• 5 years ago, $5,000 bought 118 BHP shares. How many would it buy now?
• Are these the best ASX ETFs to buy with $1,000 in May?
• 2 ASX mining shares to buy with $2,000
• 3 key takeaways from BHP’s latest results you need to know

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 Amazon, Apple, and Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund. The Motley Fool Australia has recommended Amazon, Apple, BHP Group, and Microsoft. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Fortescue Ltd (ASX: FMG) share price is in focus after announcing a US$680 million investment to expand green energy infrastructure in the Pilbara, aiming to meet rising demand for renewable power, especially from data centres.

What did Fortescue report?

• US$680 million allocated to accelerate the 200MW Pilbara Green Energy Project
• Investment is additional to the previously approved US$6.2 billion decarbonisation program
• Project to deliver a fully integrated, off-grid renewable energy system with large-scale battery storage
• Green Grid expected to reach 1.2GW solar, 600MW wind, and 4–5GWh battery storage by 2028
• Completion anticipated by 2028, with multi-gigawatt expansion planned post-2030

What else do investors need to know?

Fortescue is extending its renewable infrastructure not just to achieve its Real Zero by 2030 goal but also to provide additional capacity for a broader range of industrial clients, including those in the fast-growing data centre sector. The project will replicate the company’s Green Grid, aiming to deliver reliable, firmed power at scale.

This initiative reflects Fortescue’s ongoing response to the global energy transition and growing demand for green energy. The company is collaborating with government and traditional custodians in the Pilbara region to ensure inclusive project development.

What did Fortescue management say?

Fortescue Executive Chairman Dr Andrew Forrest AO said:

Fortescue is already demonstrating in the Pilbara that heavy industry can operate on a fully integrated renewable grid – eliminating fossil fuels while improving cost, reliability and control.

We are now extending this model to new customers, particularly data centres, helping meet one of the fastest growing sources of demand in the world.

This is about replicating our Decarbonisation Green Grid, delivering new green electrons at a scale and speed to market not able to be replicated by fossil fuel.

It enables a pathway for new industries to operate fossil fuel free, cheaper and faster than traditional alternatives.

What’s next for Fortescue?

Fortescue expects the Pilbara Green Energy Project to be operational by 2028, boosting renewable capacity and offering a pathway to scale beyond this date. The company remains focused on maintaining its capital discipline and leveraging its expertise from previous decarbonisation projects to ensure successful delivery.

Looking ahead, Fortescue plans to work with partners and stakeholders to further expand its green energy solutions, particularly targeting high-energy consumers like data centres, as it continues its transition toward net zero emissions.

Fortescue share price snapshot

Over the past 12 months, Fortescue shares have risen 35%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

The post Fortescue invests $680m in Pilbara Green Energy Project appeared first on The Motley Fool Australia.

More reading

• NEXTDC launches $750m wholesale notes to boost growth funding
• Judo Capital reaffirms FY26 profit guidance as lending growth continues
• Newmont declares quarterly dividend for ASX investors
• IGO lowers Greenbushes guidance
• PLS Group provides March quarter earnings update

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.