Author: openjargon

Now could be the time to buy ResMed Inc (ASX: RMD) shares.

That’s the view of analysts at Morgans, who have turned positive on the sleep disorder-focused medical device company following its second-quarter update.

What happened in the second quarter?

Last week, ResMed released its second-quarter result and revealed revenue and profits ahead of consensus expectations.

For the three months ended 31 December, ResMed reported an 11% increase in revenue to US$1.4 billion over the prior corresponding period. This reflects increased demand for its portfolio of sleep devices, masks, and accessories.

U.S., Canada, and Latin America revenue, excluding Residential Care Software, grew by 11%, whereas revenue in Europe, Asia, and other markets, excluding Residential Care Software, grew by 6% in constant currency. Residential Care software revenue increased 5% on a constant currency basis.

Another major highlight was ResMed’s gross margin, which increased once again. Its gross margin increased 320 basis points during the quarter thanks to manufacturing and logistics efficiencies and component cost improvements.

This led to ResMed’s income from operations increasing a sizeable 18% on the same period last year.

ResMed’s chairman and CEO, Mick Farrell, said:

Year-over-year, we delivered 11% headline revenue growth, 310 basis points of non-GAAP gross margin expansion, and continued operating excellence, resulting in another quarter of mid-teens non-GAAP EPS growth. These results reflect strong ongoing demand for our market-leading sleep and respiratory care devices, as well as the growing impact of our digital health ecosystem that spans more than 140 countries.

Morgans upgrades ResMed’s shares

In response to the update, the team at Morgans has upgraded ResMed shares to a buy rating with a $47.73 price target.

Based on its current share price of $36.72, this implies potential upside of 30% for investors over the next 12 months.

Commenting on its recommendation, Morgans said:

2Q beat across the board, with double-digit revenue and earnings growth, further gross margin expansion and solid cash generation. Sleep and respiratory sales were strong in both regions, with above-market growth in the Americas and ROW returning to market growth, while SaaS beat expectations, but remained subdued by residential care headwinds. Operating leverage improved again, with gross margin gains from manufacturing and logistics efficiencies, and FY26 guidance tightened to 62-63% (from 61-63%), reinforcing confidence in ongoing margin progression. We adjust FY26-28 forecasts modesty and move to BUY with a A$47.73 target price, viewing recent share weakness unjustified given sound fundamentals.

The post Why Morgans just upgraded ResMed shares appeared first on The Motley Fool Australia.

More reading

• 3 super ASX 200 shares I would buy and hold until at least 2036
• 5 things to watch on the ASX 200 on Tuesday
• Leading brokers name 3 ASX shares to buy today
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• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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 Metal & Mining Index (ASX: XMM) shares are outperforming on Tuesday, up 2.28%, while the S&P/ASX 300 Index (ASX: XKO) is 1.29% higher.

Top broker Morgans gives the following ASX miners a buy rating.

Here’s why.

Ramelius Resources Ltd (ASX: RMS)

This ASX gold mining share is up 2.05% to $4.50 apiece on Tuesday.

Ramelius Resources shares have rocketed 78% over the past 12 months, while the gold commodity price has ascended 68%.

After the miner revealed its 2Q FY26 results, Morgans remained buy-rated on the stock and lifted its price target from $4.50 to $5.50.

However, the broker downgraded its recommendation from buy to accumulate.

Morgans said:

RMS reported its 2Q26 result following its pre-release update on 8 January, delivering production of 45.6koz at an AISC of A$1,977/oz.

RMS remains on track to meet FY26 guidance of 185–205koz at an AISC of A$1,700–A$1,900/oz, with YTD production now at 100.6koz at an AISC of A$1,901/oz.

Lower production reflects the ongoing tapering of Cue open pit head grades, partially offset by higher-grade feed from Penny (9.8g/t Au).

Importantly, development at Dalgaranga has now accessed the high-grade Never Never orebody, with initial development ore stockpiled (16kt at 3.5g/t Au), providing a positive lead indicator for grade uplift into coming quarters.

Meeka Metals Ltd (ASX: MEK)

This fellow ASX gold mining share is 23 cents, up 5.5% today and up 132% over the past 12 months.

After reviewing the company’s 2Q FY26 results, Morgans maintained its buy rating on Meeka Metals shares.

It also kept its 12-month share price target at 33 cents.

MEK delivered its 2Q26 operating result as the Murchison Gold Project continues to ramp up.

Gold production increased 28% quarter on quarter to 9.1koz Au and was in-line with MorgansF of 9.3koz Au.

Ounce production was underpinned by a mill head grade of 3.3g/t Au, ~10% above MorgansF assumptions; however, this grade outperformance is partially offsetting lower-than-expected throughput.

Looking ahead, improvements in mill throughput, driven by underground production remain key to maintaining alignment with PFS forecasts.

Aeris Resources Ltd (ASX: AIS)

The Aeris Resources share price is 58 cents, up 3% on Tuesday.

The ASX copper mining share has skyrocketed by 316% over the past 12 months.

Like gold, copper has also been on an upward trajectory, rising 35% year over year due to higher demand because of the energy transition.

Following Aeris Resources’ 2Q FY26 report, Morgans maintained its accumulate rating and lifted its price target from 60 cents to 70 cents.

The broker said:

Solid 2Q26 delivery. Cracow continues its strong performance and Tritton operated broadly to plan.

Our earnings forecasts and valuation have been upgraded to reflect the company’s improved earnings outlook for the remainder of FY26 in the current copper and gold price environment.

The post 3 ASX mining shares to buy: Morgans appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Morgans names 3 exciting small cap ASX stocks to buy now
• ASX copper shares surge as commodity hits record high
• Ramelius Resources shares: December 2025 quarterly earnings highlights
• 2 ASX 200 gold stocks making moves on big news today

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

Owning Coles Group Ltd (ASX: COL) shares has been a smart pick for passive income over the last several years with both a pleasing dividend yield and a rising payout.

I’ll always advocate for income-focused investors to invest in stocks that are more likely than average to maintain or increase the payout. If someone is investing for passive income, particularly if they’re relying on it, they may want to have a sense of safety that the payments are likely to continue flowing.

Coles could be one of the most defensive businesses on the ASX with its national store networks of Coles supermarkets and liquor stores. Its liquor businesses include Coles Liquor, First Choice Liquor Market, Liquorland and Vintage Cellars. Coles also owns half of Flybuys and it offers certain financial services including insurance, credit cards and personal loans.

If an investor were considering investing thousands of dollars into Coles shares, let’s look at how much passive income it could provide.

Coles dividend forecast for FY26

The business has increased its annual payout each year since FY19 and it’s expected to grow again in FY26.

Analysts are projecting a potential payout of 78.8 cents per share in the 2026 financial year, which would represent a year-over-year increase of 14%. I’d be very happy with that level of dividend growth as a shareholder.

If the business does pay that level of income, it would be a dividend yield of 3.7%. With franking credits, that’s a grossed-up dividend yield of around 5.25%, which is comfortably more than what bank savings accounts are offering right now.

If someone were to invest $8,000 into Coles shares, that would mean being able to buy 374 Coles shares. This would create almost $295 of cash dividends and $421 of grossed-up dividend income, including the franking credits.

I think that’s a very good level of passive income from an investment that can provide resilient income. The projection on Commsec suggests the business could increase its payout to 84.5 cents per share in FY27 and 97.6 cents per share in FY28.

Is this a good time to invest in the business?

Analysts generally have a positive view on Coles shares. According to a collation of analyst opinions on the business, there are currently 10 buy ratings on the business and seven hold ratings. Thankfully, there are no selling ratings on the company.

In my opinion, I think this is a good time to invest in the business with ongoing population growth and resilient employment. A lower Coles share price is also appealing – it’s down around 10% since August 2025.

The post If I invest $8,000 in Coles shares, how much passive income will I receive in 2026? appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I’ll be watching like a hawke this earnings season
• 2 heavyweight ASX dividend stocks for reliable income
• Buying Coles stock? Here’s the dividend yield you’ll get
• Coles vs Woolworths shares: Which supermarket giant has the biggest upside for 2026?
• Buying Woolworths shares? Here’s the dividend yield you’ll get

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.

If you have $3,000 to invest in February, exchange traded funds (ETFs) could be worth considering.

They make it easier to put that money to work without overthinking individual stock selection.

By choosing a small mix of ETFs with different roles, investors can gain diversification across regions and styles while still keeping things simple.

Here are three ASX ETFs that could be worth considering this month, each offering exposure to a different growth driver.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The first ASX ETF to consider is the Betashares Nasdaq 100 ETF.

It tracks the Nasdaq 100 Index, which is home to many of the world’s most influential technology and innovation-led companies. While the biggest names get the attention, looking further down the index highlights just how broad the opportunity set is.

As well as the Magnificent Seven, its holdings include companies such as Broadcom (NASDAQ: AVGO), Adobe (NASDAQ: ADBE), and Intuit (NASDAQ: INTU). These businesses are deeply embedded in enterprise software, semiconductors, and financial technology, areas that continue to grow even as trends evolve.

Rather than being a bet on one technology cycle, this fund provides exposure to an ecosystem of companies that tend to reinvest heavily and adapt as new opportunities emerge.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Another ASX ETF that could be a buy is the Betashares Global Quality Leaders ETF.

This fund focuses on global stocks with strong profitability, robust business models, and consistent earnings growth. It leans toward businesses that have demonstrated they can deliver returns through different economic conditions.

Among its holdings are stocks such as Lam Research (NASDAQ: LRCX), Uber (NYSE: UBER), and Netflix (NASDAQ: NFLX). These businesses benefit from pricing power, recurring revenue, and entrenched market positions.

Overall, this fund could act as a stabilising core holding, providing global exposure with an emphasis on business quality rather than hype. It was recently recommended by analysts at Betashares.

Betashares India Quality ETF (ASX: IIND)

A final ASX ETF to consider is the Betashares India Quality ETF.

This fund takes a selective approach to the Indian economy by focusing on higher-quality companies. This helps filter out some of the risks that can come with rapidly expanding economies.

Holdings include stocks such as Infosys (NYSE: INFY), HDFC Bank (NSEI: HDFCBANK), and Tata Consultancy Services (NSEI: TCS). These businesses play central roles in India’s technology services and financial systems.

What makes this ASX ETF interesting today is its long-term focus. India’s economy is expected to grow for decades, and this fund is designed to capture that growth through companies with stronger balance sheets and more consistent earnings. It was also recently recommended by the fund manager.

The post 3 of the best ASX ETFs to buy in February with $3,000 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, BetaShares Nasdaq 100 ETF, Intuit, Lam Research, Netflix, and Uber Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom and HDFC Bank and has recommended the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Adobe, Lam Research, and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Zip Co Ltd (ASX: ZIP) share price had a month to forget in January.

Over the month just past, the S&P/ASX 200 Index (ASX: XJO) gained 1.8%.

As for Zip, shares in the ASX 200 buy now, pay later (BNPL) stock closed out December trading for $3.29. When the closing bell sounded on 30 January, shares were changing hands for $2.65 apiece.

This put the Zip share price down a painful 19.4% over the first month of 2026. And it saw the stock take the ignominious title of the worst performer on the ASX 200 in January.

So, what went wrong for the BNPL stock?

Why did the Zip share price come under pressure?

There was no fresh news out from the company in January that would have been likely to spook investors.

In fact, you might have expected the Zip share price to get a boost after United States President Donald Trump announced his desire to impose a 10% cap on credit card interest rates.

As credit card companies and BNPL companies are directly competing for the same customers, an interest rate cap could see credit card companies impose stricter lender criteria, which could lead to customers turning to the services offered by companies like Zip.

So, I think there are two more basic reasons why Zip stock went backwards in January.

First, the stock has been on an absolute tear since plumbing one-year plus lows of $1.19 on 7 April last year.

Running the maths, at the $3.29 31 December closing price, shares had surged 176.5% from those lows. So, some profit-taking is not unexpected. And even at January’s closing price, investors who bought at the low would still have been sitting on gains of 122.7%.

The second reason I think the Zip share price took a hit in January is the outlook for interest rates in the company’s core markets of the US and Australia.

As you’re likely all too aware, rates in Australia may well go up (perhaps even later today following the RBA meeting). And while we may see some more easing from the US Federal Reserve, January saw the market pare back the odds of multiple rate cuts from the world’s most influential central bank.

That’s important because BNPL stocks like Zip have proven to be highly sensitive to interest rate moves.

What’s been sending the ASX 200 BNPL stock soaring?

With the Zip share price currently back up to $2.74, the stock is up 20.4% over 12 months and up 129.8% from its April lows.

Investors have taken note of the company’s rapid growth potential. Zip reported a 98.1% year-on-year increase in its Q1 FY 2026 cash earnings before interest, tax, depreciation and amortisation (EBTDA) to $62.8 million.

The company also reported a 5.3% increase in its active customers to 6.4 million.

The post Why did the Zip share price crash 19% in January? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why 4DMedical, DroneShield, New Hope, and Zip shares are pushing higher today
• Where I would invest $2,000 in ASX shares in February
• These were the worst-performing ASX 200 shares in January
• Down 40% to 50%! Why I think these ASX growth shares are strong buys

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.

When I think about holding a S&P/ASX 200 Index (ASX: XJO) share for a decade or more, I’m not looking for something that just looks cheap today. I’m looking for businesses with long runways, clear competitive advantages, and markets that are big enough to support years of growth without relying on perfect execution.

With that mindset, these are three ASX 200 shares I’d be very comfortable buying and holding until at least 2036.

ResMed Inc (ASX: RMD)

ResMed operates in one of the most attractive long-term healthcare markets globally, in my opinion.

Sleep apnoea and respiratory conditions remain significantly underdiagnosed. Estimates suggest over a billion people worldwide could benefit from treatment, which gives ResMed a very large and still expanding addressable market. Add ageing populations and rising awareness of sleep health, and the structural tailwinds are hard to ignore.

What makes ResMed especially compelling to me is that it is no longer just selling devices. Its connected hardware, software platforms, and digital health ecosystem mean recurring data-driven revenue is becoming more important over time. That deepens customer relationships and raises switching costs.

For a 10-year-plus investment, I like that combination of essential healthcare demand, global scale, and increasing operating leverage.

Xero Ltd (ASX: XRO)

Xero is one of the clearest long-term growth stories on the ASX, in my view.

The company operates in the global small business and accounting software market, which spans millions of small and medium-sized enterprises worldwide. Even in Xero’s core markets, penetration is still far from complete, and international opportunities, particularly in the US, remain substantial.

What stands out to me is how embedded Xero becomes once a business adopts it. Accounting software sits at the centre of financial operations. Switching is disruptive, which creates strong retention and recurring subscription revenue.

Over a decade-long timeframe, I think the opportunity isn’t just more customers. It’s deeper monetisation through payments, payroll, lending integrations, and ecosystem services. If Xero continues executing, the market opportunity in front of it is far larger than its current revenue base.

Hub24 Ltd (ASX: HUB)

Hub24 may be smaller than the other two, but I think this ASX 200 share’s long-term opportunity is just as compelling.

Hub24 operates in Australia’s wealth management platform market, which oversees trillions of dollars in household savings. While Hub24 is already a major player, it still controls only a modest share of total funds under administration, leaving plenty of room for growth.

The structural shift toward fee transparency, platform-based investing, and professional financial advice continues to work in Hub24’s favour. As advisers consolidate platforms and focus on efficiency, Hub24’s technology-led approach and strong adviser relationships position it well.

What I particularly like for a long-term hold is the operating leverage in the model. As funds under administration grow, revenue tends to scale faster than costs. Over 10 years, that can translate into very strong earnings growth if market inflows remain supportive.

Foolish Takeaway

ResMed, Xero, and Hub24 operate in different industries, but they share some important traits. Each has exposure to a large and growing market, strong competitive positioning, and business models that reward patience.

I wouldn’t expect a smooth ride every year. Markets change, sentiment shifts, and short-term disappointments are inevitable. But if I were building a portfolio to hold until at least 2036, these are exactly the kinds of ASX 200 shares I’d want on my side.

The post 3 super ASX 200 shares I would buy and hold until at least 2036 appeared first on The Motley Fool Australia.

More reading

• Why Morgans just upgraded ResMed shares
• Xero shares charge higher on big AI and US update
• Xero highlights AI progress and Melio momentum in US market update
• 5 things to watch on the ASX 200 on Tuesday
• Xero shares hit a multi-year low. Is now the time to buy?

Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24, ResMed, and Xero. The Motley Fool Australia has positions in and has recommended ResMed and Xero. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Xero Ltd (ASX: XRO) shares are rising on Tuesday morning.

At the time of writing, the cloud accounting platform provider’s shares are up 3% to $96.51.

Why are Xero shares rising?

Investors have been buying the company’s shares after it outlined its long-term growth opportunity in artificial intelligence (AI) and the United States, giving investors more confidence in where the business is heading next.

Xero released the update ahead of an investor briefing, where it will provide detail on its AI strategy and the progress it is making in the large and competitive US accounting and payments market.

While there was a lot of information in the announcement, the key message was that Xero believes it has a clear pathway to drive stronger growth by combining accounting, payments, and AI on one global platform.

Artificial intelligence push

At the centre of the update was Xero’s approach to artificial intelligence. Management said the company is already using AI and machine learning across its platform and now sees a much larger opportunity as it moves from being a “system of record” to a “system of action and decision making” for small businesses.

This means using AI to automate routine tasks, surface insights, and help customers make better decisions faster.

Xero revealed that more than two million subscribers are already benefiting from its AI features, with over 300,000 using newer generative AI tools launched last year. These tools are helping customers save time, manage their businesses more effectively, and unlock growth opportunities, which management believes will support higher engagement and, over time, monetisation.

United States market

The other major focus was the United States, where Xero is aiming to significantly scale its presence. This strategy has been strengthened by the recent acquisition of US-based payments platform Melio, which allows Xero to bring accounting and payments together in one offering.

Since completing the deal in October, Xero has begun integrating Melio into its US operations, embedding bill payments into the Xero platform and unifying sales and go-to-market teams.

Importantly for investors, management provided more clarity on the financial trajectory of Melio. It advised that Melio is expected to reach adjusted EBITDA breakeven on a run-rate basis in the second half of FY 2028.

Guidance update

Xero also reiterated its existing FY 2026 guidance. Total operating expenses as a percentage of revenue is expected to be around 70.5%, including Melio. This ratio is expected to be lower in the second half of FY 2026 compared to the first half.

Management also reaffirmed its FY 2028 aspirations outlined in June, as part of the Melio acquisition.

Those aspirations are that the combined business is expected to significantly accelerate US revenue growth and gives Xero the opportunity to more than double its FY 2025 group revenue in FY 2028, excluding anticipated revenue synergies.

This outcome is expected to support Xero’s aspiration to deliver greater than Rule of 40 outcomes in FY 2028.

The post Xero shares charge higher on big AI and US update appeared first on The Motley Fool Australia.

More reading

• 3 super ASX 200 shares I would buy and hold until at least 2036
• Xero highlights AI progress and Melio momentum in US market update
• Xero shares hit a multi-year low. Is now the time to buy?
• Why analysts say Hub24, New Hope, and Xero shares are buys
• 2 ASX shares highly recommended to buy: Experts

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

ASX blue-chip shares can be some of the safest and most reliable investments on the ASX thanks to their market position, brand power and scale.

The businesses I’m going to talk about can provide the stability that investors are after.

I’m also expecting both of the following ASX blue-chip shares to provide investors with good passive income in FY26 and beyond.

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is a listed investment company (LIC) that targets large businesses to generate investment returns for the portfolio. It aims to actively invest in the highest-quality Australian companies.

So, instead of just being one ASX blue-chip share, it owns a portfolio of shares.

Some of the businesses that it owns a larger position in compared to the ASX share market’s position sizing include Rio Tinto Ltd (ASX: RIO), Fortescue Ltd (ASX: FMG), Alcoa Corporation (ASX: AAI), James Hardie Industries plc (ASX: JHX) and Medibank Private Ltd (ASX: MPL).

As a company, the board of directors can declare the size of the dividend they want to pay, as long as there is a profit reserve to support the payout. WAM Leaders’ portfolio has delivered an average return of 12.1% per year since inception in May 2016 (before fees, expenses and taxes), outperforming its ASX share benchmark by close to an average of 3% per year, which is an impressive record, in my view.

At 31 December 2025, the LIC had built up its profit reserve to 27.4 cents per share, which is enough to pay a dividend close to three years at the size of the FY25 payout. It has increased its annual dividend every year between FY17 and FY25, which is a pleasing record of consistency.

Its FY25 annual dividend translates into a grossed-up dividend yield of approximately 10%, including franking credits. I’m optimistic about slight dividend increases in the coming years.

Transurban Group (ASX: TCL)

Transurban is one of the largest toll road businesses in the world, with roads in Sydney, Melbourne, Brisbane and North America.

Growing populations in cities are a good tailwind for Transurban’s ASX blue-chip share, increasing average daily traffic (ADT) on its roads. In the first quarter of FY26, group ADT rose 2.7% year-over-year, with Sydney ADT up 1.7%, Melbourne ADT up 3.2% year-over-year, Brisbane ADT up 2.6% and North America ADT up 6.8%.

Additionally, the business occasionally completes a new road (such as WestConnex or the West Gate Tunnel project) that can increase its potential to serve traffic and increase the volume of tolls.

The business is also benefiting from rising tolls over time, which is a promising outlook for revenue and earnings growth. The ASX blue-chip share is planning to increase its distribution per security by 6% in FY26 to 69 cents. That translates into a forward distribution yield of approximately 5%.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

More reading

• The smartest ASX dividend shares to buy with $1,000 right now
• Got $5,000? 5 ASX income shares to buy and hold forever
• How to build income on the ASX without losing sleep at night
• 5 ASX dividend shares paying 4% a year on average in 2026!
• My 3 best ASX dividend-focused stocks to buy in February

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

ASX All Ords gold stock Barton Gold Holdings Ltd (ASX: BGD) is edging lower today.

Barton Gold shares closed yesterday trading for $1.130. In early morning trade on Tuesday, shares are swapping hands for $1.125 apiece, down 0.4%.

For some context, the All Ordinaries Index (ASX: XAO) is up 1.1% at this same time.

But today’s underperformance is not par for the course for the Aussie gold miner.

Taking a step back, the Barton Gold share price has gained 301.8% over 12 months, smashing the 6.2% one-year returns delivered by the All Ords.

As you’d expect, the ASX All Ords gold stock has enjoyed steady tailwinds from the surging gold price. Gold is currently trading for US$4,661 per ounce. While that’s down 14% from the near record US$5,417 that same ounce of gold was worth on 28 January, the gold price is still up a blistering 66% since this time last year.

And Barton Gold has been catching plenty of investor interest with its ongoing exploration programs.

ASX All Ords gold stock on the hunt for water

The Barton Gold share price has yet to get a boost after the miner announced that it has kicked off water bore drilling at its Tunkillia Gold Project, located in South Australia.

In May, the company’s Optimised Scoping Study (OSS) estimated annual production potential at Tunkillia of 120,000 ounces of gold and 250,000 ounces of silver.

With both gold and silver prices now exceeding the forecasts used in the OSS, the ASX All Ords gold stock said that it is expediting Tunkillia toward Mining Lease (ML) application.

In light of this, Barton Gold has engaged Underdale Drillers to complete some 900 metres of drilling for preliminary water testing near the OSS open pits. If the miner can locate additional nearby water sources, it could help both de-risk and improve the project economics.

Looking ahead, the company plans to commence a 28,000-metre second phase reverse circulation (RC) resource upgrade drilling campaign in March. Concurrently, it will run a 3,000-metre geotechnical & metallurgical diamond drilling (DD) program.

What did management say?

Commenting on the upcoming drilling programs that could help boost the ASX All Ords gold stock, Barton managing director Alexander Scanlon said:

The Tunkillia OSS demonstrated the financial and capital leverage available to large-scale bulk processing operations, with the major advantage of a higher-grade ‘Starter Pit’ that can pay back development costs 2x over in the first year.

With recent Resource upgrade drilling results further de-risking this profile, we are advancing our other development drilling programs in support of planned JORC Ore Reserves, a PFS, and a Mining Lease application by the end of 2026…

Our objective is to bring Tunkillia online as soon as possible to realise our gold production target of 150,000 ounces annually.

The post Up 302% in a year, why is this ASX All Ords gold stock now drilling for water? appeared first on The Motley Fool Australia.

More reading

• Considering ASX small-cap gold shares? Expert advice on how to decide

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.

S&P/ASX 200 Index (ASX: XJO) shares can be some of the best choices for passive income for retirees, thanks to the combination of a good dividend yield (helped by franking credits) and stability. I think the business Medibank Private Ltd (ASX: MPL) is one such opportunity at the larger end of the ASX share market.

Medibank is the largest private health insurer in Australia, with its Medibank and ahm brands, as well as a number of additional healthcare businesses.

Healthcare is a defensive sector that can provide resilient earnings for the company – people don’t choose when they need healthcare. Medibank is a good way to take a diversified approach to the sector without being overly exposed to any one service or treatment.

I think Medibank’s earnings are resilient and offer solid growth potential, which is the foundation for good dividends.

Dividend potential of the ASX 200 share

If I were a retiree, I’d want to own investments that I had a high degree of certainty that wouldn’t cut my passive income. If the payments are being increased, then they obviously aren’t being cut.

Medibank has increased its annual dividend per share each year since 2020 (which was affected by COVID-19 impacts). In fact, over the past decade, 2020 was the only year that the business implemented a dividend cut – in every other year it has hiked the payout.

In FY25, the ASX 200 share paid an annual dividend per share of 18 cents. That translates into a grossed-up dividend yield of 5.5%, including franking credits.

But, the past is the past. The next dividends are more important for retirees.

The projection on Commsec suggests the ASX 200 share could increase its payout to 20.2 cents per share, representing a year-over-year increase of 12.2%. That potential increase, translates into a grossed-up dividend yield of 6.25%, including franking credits.

The forecast on Commsec shows that the annual payout could grow by another 6.4% year-over-year to 21.5 cents per share. That would be a grossed-up dividend yield of 6.6%, including franking credits. That’d be a great yield for retirees, in my opinion.

So, ultimately, analysts are expecting the business to continue delivering investors rising passive income.

Rising earnings predicted

The most important thing to fund dividends is profit generation by the ASX 200 share.

Medibank has seen ongoing growth over the years of its Australian resident and non-resident policyholders, which is a strong tailwind for earnings. The acquisitions it has made in recent times add to its earnings power and diversify its profit base.

The prediction on Commsec suggests the business could generate earnings per share (EPS) of 24.9 cents in FY26 and then increase EPS to 26.3 cents in FY27.

That means it’s now trading at less than 19x FY26’s estimated earnings, which looks like an appealing valuation to me.

The post Why this ASX 200 share is a retiree’s dream appeared first on The Motley Fool Australia.

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