Author: openjargon

When a company agrees to a takeover at a fixed price, you might expect its shares to trade at exactly that price.

In practice, they almost never do.

Qube Holdings Ltd (ASX: QUB) is a textbook example of this phenomenon right now.

Macquarie Asset Management has made a binding offer of $5.20 per share for Qube, valuing Australia’s largest integrated logistics provider at approximately $11.7 billion.

Yet today, Qube shares trade at approximately $5.02, a discount of around 3.5% to the offer price.

That gap is the price investors pay for the uncertainty that surrounds any takeover before it formally completes.

What is merger arbitrage?

The strategy of buying shares in a takeover target below the offer price and waiting to receive the full consideration at completion is known as merger arbitrage.

It is a well-established investment approach used by professional fund managers and sophisticated investors around the world.

The return profile is asymmetric.

If the deal completes as planned, investors who bought Qube at $5.02 today will receive $5.20 per share, delivering a return of approximately 3.5%.

If the deal collapses for any reason, the share price will likely fall sharply back toward its pre-offer level of $4.07, delivering a loss of approximately 19% from today’s price.

That asymmetry is the reason the discount exists.

The market is pricing in a small but material probability that the deal does not proceed.

Why does the discount exist?

Several factors explain why Qube trades below the $5.20 offer price despite the board’s unanimous recommendation and the deal being fully funded with no financing condition.

The first is regulatory risk.

The deal requires approval from the Australian Competition and Consumer Commission, the Supreme Court of New South Wales, and the Foreign Investment Review Board.

While none of these approvals is expected to be a major hurdle given Macquarie’s long track record of completing similar transactions, the process takes time and carries a non-zero risk of complication.

The second is shareholder vote risk.

Qube’s shareholders must vote to approve the scheme at a meeting expected around June 2026.

The deal requires approval from 75% of votes cast, excluding UniSuper, which is rolling its stake into the new structure.

While the board’s unanimous recommendation makes approval highly likely, it is not guaranteed.

The third is the time value of money.

Even if the deal completes exactly as planned by December 2026, investors tying up capital for six to seven months at a 3.5% return are earning a modest annualised return.

The shareholder vote is expected in June 2026, which annualises the 3.5% gain to approximately 10%.

This is a more attractive number, though investors should note that annualised figures assume a clean and timely completion.

The franking credit kicker

One detail that makes the Qube situation particularly interesting for Australian investors is the dividend component.

Qube is permitted to pay up to $0.40 per share in dividends before and immediately after the deal closes, which will be deducted from the $5.20 cash consideration.

The first instalment, a regular fully-franked interim dividend of $0.0535 per share, was already paid on 9 April 2026 and has been deducted from the offer price accordingly.

The more interesting component is a potential special fully-franked dividend that Qube’s board intends to declare following scheme effectiveness, a structure made possible by a special ASX waiver granted on 22 April 2026.

For eligible Australian taxpayers who can utilise franking credits in full, those credits are worth approximately $0.17 per share for every $0.40 in dividends paid, effectively pushing the total economic return above the headline $5.20 figure.

Furthermore, if the deal extends past December 2026, Macquarie has agreed to pay a ticking fee of two cents per share per month, compensating investors for any delay and ensuring the annualised return does not deteriorate if the timeline slips.

The risks worth knowing

Merger arbitrage is not risk-free, and investors should approach it with clear eyes.

The biggest risk in the Qube situation is not regulatory or shareholder approval but rather a material adverse change to the business.

The deal contains a standard material adverse change clause, meaning Macquarie could walk away if Qube’s business deteriorates significantly before completion.

Qube has already flagged a $10 to $20 million EBITA impact from Middle East conflict disruptions and a further $3 to $5 million from weather events in its most recent trading update, though management maintained its expectation of full-year earnings growth.

Whether those impacts rise to the level of a material adverse change is a judgement call, but on current evidence, they appear well within normal business variation.

Foolish Takeaway

Qube Holdings trading at a 3.5% discount to its takeover price is not an oversight by the market.

It reflects real, if modest, uncertainty about whether a deal that looks highly likely to proceed will actually do so on the expected timeline.

For investors who understand merger arbitrage and are comfortable with the asymmetric risk profile, the current gap between Qube’s share price and the $5.20 offer price could represent an interesting low-risk return opportunity, particularly when the franking credit kicker and ticking fee protections are factored in.

For those who are not, simply understanding why the discount exists is a valuable lesson in how financial markets price risk.

The post Qube Holdings is trading below its takeover price. Here is what investors need to know appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven 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 Goodman Group (ASX: GMG) share price is in focus after the company reported a total portfolio value of $87.1 billion and work in progress across development projects of $14.5 billion as at 31 March 2026.

What did Goodman Group report?

• Total portfolio value: $87.1 billion
• Development work in progress (WIP): $14.5 billion
• Annual like-for-like net property income growth: 4.1% (6.1% excluding Greater China)
• Portfolio occupancy: 95.7% (97% excluding Greater China)
• Yield on cost for current WIP: 8.0%
• 3.3 million square metres leased over the past 12 months, generating $491 million in annual rental income

What else do investors need to know?

Goodman is positioned at the centre of the global digital economy, with a development pipeline focused on infrastructure-scale industrial properties and data centres in major cities worldwide. AI adoption is driving increased demand for data centres in metropolitan locations, but supply remains constrained by energy availability and grid capacity.

The company’s global power bank for data centres now totals 6.4 gigawatts, with 3.6GW secured and further expansion underway. The majority of current developments (73% of WIP) are dedicated to data centre assets, responding to strong customer demand across multiple regions and with a focus on flexibility and urban locations.

What’s next for Goodman Group?

Goodman expects its work in progress to reach roughly $18 billion by June 2026, with ongoing focus on securing power and advancing its capital partnerships. The board has approved a target of 9% operating earnings per security (EPS) growth for FY26, and management reports the group is on track to deliver at least this level.

Looking ahead, Goodman plans to redeploy capital into large-scale sites to capture the growth in AI, automation, and urban logistics. Securing additional power and progressing customer commitments in the data centre segment remain a strategic priority.

Goodman Group share price snapshot

Over the past 12 months, Goodman Group shares have declined 9%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Goodman Group reports $87.1 billion portfolio value as data centre demand grows appeared first on The Motley Fool Australia.

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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 Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 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 Greatland Resources Ltd (ASX: GGP) share price is in focus after the company secured both primary environmental approvals for its Havieron gold-copper project, positioning itself for a Final Investment Decision in the June 2026 quarter.

What did Greatland Resources report?

• State primary environmental approval received from the Western Australian Minister for the Environment
• Commonwealth primary environmental approval granted on 24 April 2026
• Final Investment Decision on the Havieron project targeted for the June 2026 quarter
• Tendering has commenced for key project packages and early works
• The Havieron project is expected to deliver around 270,000 ounces of gold per year at low costs

What else do investors need to know?

Greatland Resources’ recent approvals mark a major milestone, allowing progress toward development and operation of the Havieron underground mining project. The company is moving ahead with tenders and preparations for critical infrastructure, including boxcut tunnel installation and underground works.

The Havieron project, together with the adjacent Telfer mine, is set to underpin a significant gold-copper mining hub in Western Australia’s Paterson Province. The company says Havieron has an initial mine life of 17 years, supporting long-term operational plans.

What’s next for Greatland Resources?

With environmental approvals in place, Greatland’s attention turns to finalising its investment decision in the current quarter and advancing early development works at Havieron. The focus will be on progressing construction and underground development to bring the project into steady-state production.

Over the long term, Greatland aims to leverage Havieron’s strong resource base and its integration with Telfer, supporting a multi-decade mining operation in the region.

Greatland Resources share price snapshot

Over the past 12 months, Greatland Resources shares have risen 91%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Greatland Resources secures Havieron approvals, eyes next steps appeared first on The Motley Fool Australia.

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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 space economy is having a moment. 

SpaceX, Elon Musk’s rocket and satellite company, is targeting a Nasdaq debut around 12 June 2026 under the ticker SPCX, aiming for a valuation of between US$1.7 trillion and US$2 trillion.

This would make it the largest stock market debut in history. 

The announcement has sent a wave of excitement through the global space sector, with investors scrambling to find ways to gain exposure before and after the listing. 

For Australian investors, one ASX-listed company and another newly launched ETF offer the most direct and interesting connection to the space boom.

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic Systems is primarily known as an ASX defence stock, and for good reason: the company has risen more than 430% over the past twelve months.

This is on the back of a record contract pipeline in counter-drone and directed energy systems. 

However, many investors overlook that EOS also operates a dedicated Space Systems division, providing laser tracking and communications technology to satellite operators worldwide. 

The EOS Space Systems division is one of only a handful of companies globally that can track, communicate with, and manage satellites using advanced electro-optic laser systems, a capability that becomes increasingly valuable as the number of satellites in low Earth orbit grows exponentially. 

SpaceX’s Starlink constellation alone now has more than 10,300 satellites in orbit, with plans to deploy tens of thousands more.

Every satellite launched creates demand for the kind of precision tracking and communications infrastructure that EOS provides. 

Earlier in 2026, EOS was appointed to the Australian Space Agency’s advisory council, a signal of the company’s growing relevance in Australia’s nascent space sector. 

Most recently, EOS launched a $175 million capital raising to fund the acquisition of MARSS, a European command-and-control and AI software business that will significantly expand its integrated counter-drone and space systems capability. 

At its AGM, EOS chair Garry Hounsell confirmed the company’s turnaround phase is now complete and that 60% to 80% of its $726 million order book is expected to convert to revenue in 2026 and 2027.

Betashares Space Industry ETF (ASX: RCKT)

For Australian investors who want exposure to the global space economy without opening an international brokerage account, the Betashares Space Industry ETF offers a timely solution. 

The fund only debuted on the ASX on 12 May 2026, making it one of the newest and most thematically specific ETFs available to Australian investors. 

RCKT holds 28 underlying space companies globally, with its two largest positions being Rocket Lab at 13.1% and AST SpaceMobile at 10.2%, giving investors concentrated exposure to the two most talked-about listed alternatives to SpaceX. 

Other holdings span satellite operators, launch providers, and space infrastructure businesses across the United States, Europe, and Asia. 

The fund listed at $14 per unit and is already attracting significant interest as the SpaceX IPO draws attention to the broader space economy. 

For investors who believe the space sector is entering a sustained period of commercial growth but do not want to pick individual winners, RCKT provides a diversified and low-friction way to participate in the theme on the ASX.

Foolish Takeaway

The SpaceX IPO will not transform space investing overnight, but it will draw significant attention and capital into the sector in the months ahead. 

EOS offers ASX investors a rare domestic play on the space economy.

The company combines a world-class defence contract pipeline with laser tracking and satellite communications technology that becomes more valuable as the number of objects in orbit grows. 

RCKT, meanwhile, gives investors a simple, diversified way to back the entire global space economy through a single ASX trade, with Rocket Lab and AST SpaceMobile doing the heavy lifting within the fund. 

Both carry meaningful risk, and the space sector is not for investors who cannot stomach volatility. 

But for those with a long-term horizon and conviction in the space economy theme, both deserve serious attention. 

The post The SpaceX IPO is coming. Here are 2 ways investors could benefit from the space boom appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven 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 AST SpaceMobile, Electro Optic Systems, and Rocket Lab. The Motley Fool Australia has recommended Rocket Lab. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX share market is a wonderful hunting ground to find investments that could deliver great long-term returns.

No-one knows what share prices are going to do, but analysts can estimate (with a price target) whether an investment is undervalued or not, based on its earnings multiple, its expected profit growth and its balance sheet.

We’re going to look at two names that experts believe could rise more than 50% based on the price targets.

Zip Co Ltd (ASX: ZIP)

Zip is a sizeable buy now, pay later business. It operates two core markets – Australia and New Zealand (ANZ) and the US. The ASX share says that it offers access to point-of-sale credit and digital payment services.

The business also says that it provides “fair, flexible and transparent payment options, helping customers to take control of their financial future and helping merchants to grow their businesses.”

According to CMC Invest, there have been five recent analyst ratings on the ASX share, with all of those being a buy. That’s unanimous positivity for the company.

A price target is where analysts think the share price will be in 12 months from the time of their rating.

The average price target on Zip shares of those five analysts is $3.38. At the time of writing, that implies a possible rise of 53%.

Even the lowest price target of $2.60 suggests a solid double-digit return within the next year of 18%.

The company’s key growth market of the US continues to grow strongly. In April 2026, its US total transaction value (TTV) grew by 40% in US dollar terms. Zip is expecting FY26 US TTV to grow by more than 40%. If it can maintain or grow its profit margins as it scales, it’s seemingly on track for a positive future.  

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a leading online retailer of homewares, furniture and home improvement products.

The business sells hundreds of thousands of products across a variety of categories, with most of those items shipped directly by suppliers, which helps keep the business model capital-light and allows it to sell a wider range of products.

According to CMC Invest, there have been ten recent ratings on the ASX share, with six of those being a buy, three being a hold, and one being a sell.

The average price target on Temple & Webster is $8.32. At the time of writing, that implies a possible rise of 65% over the next year.

But, not every analyst is optimistic. The lowest price target is $4, which implies it could decline a further 20% from where it is at the time of writing.

The latest update from the business was released earlier this month which showed the business expects to grow FY26 revenue by between 11% to 12% to between $665 million to $675 million.

Temple & Webster expects its operating profit (EBITDA) to approximately double in FY27 as it invests in its private label and exclusive products, better and faster delivery options, and potential acquisitions in areas such as home improvement, business-to-business (B2B) and international.

The post 2 ASX shares tipped to grow 50% in the next 12 months appeared first on The Motley Fool Australia.

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

It has been a tough period for owners of Adore Beauty Group Ltd (ASX: ABY) shares.

Over the past six months, the small-cap ASX share has lost over 70% of its value.

Is there a rebound coming? Let’s see what Bell Potter is saying about the beaten down beauty retailer.

What is the broker saying?

Bell Potter notes that the small-cap ASX share has released a trading update which has fallen short of expectations. It said:

Adore Beauty released a trading update for the first 47 weeks of FY26, with sales growth of $193.4m +7.4% YoY (vs. BPe $203.9m on a 47-week run-rate basis). For 2HFY26 the company expects the gross margin to be resilient and land at 34.5% (vs. BPe 34.7%), as they chose to reduce promotional intensity as part of their previously outlined strategy.

The low light was that EBITDA is expected to land at ~$4.0m for FY26 (vs. BPe $7.2m), representing a ~2.0% margin (versus previous guidance of b/w 3-4% for FY26e), driven primarily by a sales slowdown paired with an increased fixed cost base from their aggressive store rollout (from 0-20 stores in ~24 months).

Looking ahead, the broker believes the company can deliver on its FY 2027 guidance. This is due to cost savings from its new distribution centre. It said:

The company also provided FY27 guidance, expected revenue growth of at least 10% and underlying EBITDA of b/w $9-13m. We are confident the company lands within the lower end of the guidance, namely due to cost savings of 1) $2.0m from the new NDC efficiencies (from 1Q27), and 2) $2.5m in savings from a head office restructure.

Should you buy the dip?

Unfortunately, Bell Potter believes the Adore Beauty share price weakness isn’t a buying opportunity just yet.

In response to its trading update, the broker has downgraded the small-cap ASX share to a hold rating (from buy) and slashed its price target to 39 cents (from $1.00). This compares to its last close price of 34 cents.

Commenting on the downgrade and valuation crunch, the broker said:

We have adjusted the key assumption we use in our relative valuation, lowering our FY27 EBIT multiple from 12.5x to 10.0x, off the back of a reduction in the median peer group multiple. We move our valuation weighting to 70% relative and 30% DCF, reflecting comparable retail businesses in a more challenging consumer environment, and to reflect current market sentiment on the sector.

We view the DCF as contingent on a macro recovery and execution of an as-yet unproven growth strategy. As a result, we lower our target price by ~60% to $0.39. Given this implies less than 15% upside to the current share price, we downgrade our recommendation to HOLD.

The post Down 70% in six months: What is Bell Potter saying about this ASX share? 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 recommended Adore Beauty Group. 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.

When one analyst is positive about an ASX share, that’s interesting. When multiple experts rate a business as a buy, it could be a great time to invest (if they’re right).

Share prices are always changing, so the available opportunities can change month to month. When we look across the ASX share market, the following two businesses are among the most widely backed.

Integral Diagnostics Ltd (ASX: IDX)

Integral Diagnostics describes itself as a leading provider of medical imaging services across Australia and New Zealand.

According to the Commsec collation of analyst opinions, there are currently 12 buy ratings on the business, with just one hold and one sell.

We should also look at the price target of the business, which tells us what analysts think the share price will do over the next 12 months. A price target is just an estimate though, not a guarantee of what’s going to happen.

According to CMC Invest, of three analyst price targets issued within the last three months, the average price target is $3.19. That implies a possible rise of 53% over the next year, if the analysts are right.

The company’s latest result saw plenty of growth following the merger with Capitol Health, with enhanced operational scale and a broader network, combined with synergies.

The company reported organic revenue growth of 7.4% from all sources in Australia. Total revenue grew 55.6%, operating profit (EBITDA) rose 75.6% and operating net profit grew 154.6% to $22.3 million. Operating earnings per share (EPS) rose by 66.2% to 5.9 cents.

This growth enabled the ASX share to hike its interim dividend per share by 32% to 3.3 cents.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is another ASX share with significant backing by expert analysts. The global enterprise resource planning (ERP) software business currently has 13 buy ratings on the business, according to CommSec.

It has clients across a range of industries including businesses, local councils, government organisations and universities.

According to CMC Invest, of eight recent ratings by analysts within the last three months, the average price target is $31.81. That implies a possible rise of around 6% within the next year.

The business expects to grow its profit at a significant pace during the 2026 financial year.

It expects to grow its FY26 annual recurring revenue (ARR) by between 16% to 18%, while its profit growth is expected to be between 18% to 20%.

If profit keeps growing in the high-teens year after year then it’s on track for a very pleasing future, in my opinion (and according to broker analysts too).

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

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

Warren Buffett, one of the world’s leading investors, has a history of making great investment picks, including highlighting certain investment funds. I believe there are a couple of ASX-listed exchange-traded funds (ETFs) that could be excellent ideas which Buffett would appreciate.

ETFs make it very easy to invest in a whole group of shares at the same time, giving instant diversification.

I believe some ASX ETFs have a higher-quality portfolio than others, making it more likely they can deliver pleasing (and ASX-beating) returns. Let’s look at those ideas.

iShares S&P 500 ETF (ASX: IVV)

The fund that Warren Buffett may be most likely to recommend is this S&P 500 fund, which invests in 500 of the largest and most profitable businesses listed in the US.

In his 2013 annual shareholder letter, Buffett wrote the following, outlining his recommendation of a low-cost S&P 500 fund:

My money, I should add, is where my mouth is: What I advise here is essentially identical to certain instructions I’ve laid out in my will. One bequest provides that cash will be delivered to a trustee for my wife’s benefit. (I have to use cash for individual bequests, because all of my Berkshire shares will be fully distributed to certain philanthropic organizations over the ten years following the closing of my estate.) My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund.

You can see the appeal of that choice – 500 businesses provides great diversification.

The biggest holdings are some of the most impressive global companies with strong profit margins, significant market shares of their respective industries, fortress balance sheets and plenty of earnings growth potential. We’re talking about names like Nvidia, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta Platforms and Berkshire Hathaway.

With an annual management fee of just 0.04%, it’s one of the cheapest funds on the ASX.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The other fund I’ll highlight, which I think Warren Buffett would appreciate, is the MOAT ETF.

Warren Buffett is a big fan of economic moats, which are competitive advantages that allow businesses to generate profits (and grow) despite other competitors wanting to steal their lunch.

There are some economic moats that Morningstar analysts believe are more likely than not to endure for 20 years. Owning something for 20 years would count as ultra-long-term investing, in my book.

Having an economic moat that could last that long would allow plenty of profit generation and hopefully share price gains. These long-term moat businesses are the only ones the fund considers.

On top of that, the MOAT ETF only invests when the businesses are priced attractively to what analysts think they’re worth.

Together, I think that’s a winning strategy for the fund and could allow it to deliver very good returns in the future.

The post 2 ASX ETFs I think Warren Buffett would buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Broadcom, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, VanEck Morningstar Wide Moat ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

For income investors, Woodside Energy Group Ltd (ASX: WDS) has long been one of the most closely watched dividend payers on the ASX. 

The company distributes between 50% and 80% of its after tax profit as a fully franked dividend twice per year.

The overarching oil and gas price environment directly impacts the final dividend payout.

With oil prices surging in recent months, the income case for Woodside has rarely looked more compelling. 

Here is the full picture of what shareholders are receiving in 2026.

What Woodside paid for FY2025

In FY2025, Woodside paid a total fully franked dividend of 112 US cents per share, comprising a 53 US cent interim dividend paid in September 2025 and a 59 US cent final dividend paid in March 2026.

This represents an 80% payout ratio of underlying net profit after tax. 

The total value of the FY2025 full-year dividend was US$2.1 billion.

This reflects the scale of Woodside’s cash generation capacity at current energy prices.

The FY2026 outlook

The most important variable for Woodside’s FY2026 dividend is the oil price, and right now that variable is moving firmly in shareholders’ favour. 

Oil prices surged to above US$112 per barrel in April 2026, levels not seen since June 2022, as disruptions to tanker traffic triggered what the World Bank described as the largest oil supply shock on record.

This translates into an initial reduction in global supply of approximately 10 million barrels per day. 

Every sustained increase in the oil price flows almost directly into Woodside’s revenue, given the company’s relatively fixed cost base for LNG and oil production. 

In Q1 2026, Woodside posted operating revenue of US$3.26 billion, up 7% on the prior quarter, driven by an 11% increase in its average realised price to US$63 per barrel of oil equivalent. 

Furthermore, the Scarborough LNG project is 94% complete with first cargo targeted for Q4 2026.

This milestone will add meaningfully to production volumes and earnings capacity from late FY2026 onwards. 

UBS forecasts Woodside’s FY2026 dividend at approximately 109 US cents per share, broadly in line with FY2025, with the potential for a meaningful uplift if oil prices remain elevated through the second half of the year.

The risks worth knowing

Woodside’s dividend is not as predictable as those paid by regulated infrastructure businesses or the major banks. 

Indeed, the dividend moves with the oil price, and the oil price can fall as quickly as it rises. 

Furthermore, CEO Meg O’Neill’s departure in 2025 and the subsequent appointment of a new leadership team creates a period of strategic uncertainty that investors should factor in. 

That said, the company’s long-term contracted LNG revenue base provides a meaningful floor for cash generation even in softer oil price environments.

Foolish takeaway

Woodside offers one of the highest fully franked dividend yields available from an ASX large-cap stock, backed by a world-class LNG portfolio and a favourable oil price environment. 

For income investors comfortable with commodity price variability, the current entry point looks attractive.

The post Here is what this ASX energy giant is paying income investors in 2026 appeared first on The Motley Fool Australia.

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

There are a growing number of exchange traded funds (ETFs) to choose from on the Australian share market.

To narrow things down, let’s take a look at three ASX ETFs that could supercharge a balanced portfolio.

Here’s what you need to know about them:

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

The Betashares Global Cash Flow Kings ETF is built around a simple but powerful idea: cash matters.

Revenue can look impressive, earnings can be adjusted, and growth stories can sound exciting. But free cash flow shows whether a business is actually producing surplus money after funding its operations and investments.

That is what this fund focuses on. It looks for global companies with strong free cash flow generation, which can be a useful sign of financial quality.

This can be important because cash-rich businesses tend to have more choices. They can fund expansion, buy back shares, reduce debt, pay dividends, or withstand tougher conditions without relying heavily on external capital.

For investors, this ASX ETF is less about chasing a theme and more about owning companies that have already proven they can turn activity into real money. That can be a valuable discipline in markets where growth alone is not always enough.

It was recently recommended by analysts at Betashares.

Global X Battery Tech & Lithium ETF (ASX: ACDC)

The Global X Battery Tech & Lithium ETF is a more specialised option.

Instead of simply backing electric vehicle makers, this fund looks further down the supply chain. It provides exposure to companies involved in lithium, battery technology, energy storage, and the materials and components needed for electrification.

That makes the ASX ETF interesting because the energy transition is not just about the cars people drive. It is also about grids, storage, mining, processing, manufacturing, and the infrastructure required to support a more electrified world.

This part of the market can be cyclical and volatile. Lithium prices can move sharply, and sentiment toward battery-related shares can change quickly.

But the long-term direction remains important. More renewable energy, more electric transport, and greater demand for storage all require investment across the battery ecosystem. This fund gives investors a way to access that wider chain rather than trying to pick one miner or manufacturer.

This fund was recently recommended by the team at Betashares.

VanEck Morningstar International Wide Moat ETF (ASX: GOAT)

Finally, the VanEck Morningstar International Wide Moat ETF is built for investors who like the idea of owning businesses that are hard to displace.

A moat can come from many places. It could be a brand customers trust, a network that becomes more useful as it grows, a cost advantage competitors cannot match, or software and systems that are painful to replace.

This fund searches globally for companies that have these durable advantages and are trading at attractive valuations.

That combination is important. Quality is useful, but price still matters. Paying too much for a wonderful business can still lead to disappointing returns.

This fund offers a great solution for investors who want international exposure with a stock picker’s mindset. It is not just buying the biggest companies, it is looking for businesses with staying power and a share price that leaves room for future returns.

The post 3 excellent ASX ETFs that could supercharge your portfolio appeared first on The Motley Fool Australia.

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• Where to invest $10,000 in ASX ETFs in June
• 3 amazing ASX ETF for beginners to buy and hold
• 3 reasons to buy this battery, tech and lithium ASX ETF
• 3 ASX ETFs that could be top picks for beginners
• Are these the best ASX ETFs to buy with $1,000 now?

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 VanEck Morningstar International Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.