Author: openjargon

There’s no fresh announcement from 4DMedical Ltd (ASX: 4DX) on Friday, but someone is clearly buying the stock.

The 4DMedical share price has jumped 10.79% to $4.21 around midday, with more than 4 million shares already changing hands.

It continues what has been a pretty dramatic turnaround over the past week.

The stock touched $3.31 last Friday and has since climbed around 27%.

And today’s move has caught my attention because 4DMedical remains one of the most heavily shorted stocks on the ASX.

So, what is driving buyers back into this ASX 200 healthcare stock?

Why are buyers coming back?

The first place I’d look is the size of the recent sell-off.

Even after today’s jump, 4DMedical shares are still trading around 44% below their 52-week high of $7.55.

That’s a pretty big reset for a company that has continued making progress on the commercial side.

In FY26, operating revenue rose 21% to $7.1 million, while scan volumes increased 77% to 344,075 scans.

The company also finished the year with its software available across 540 sites globally, up 39% from a year earlier.

There has been more progress in the United States as well, with CT:VQ being rolled out across major healthcare networks and imaging providers.

Could short sellers be adding fuel?

The other part of Friday’s move is the very large short position sitting against the stock.

As of 11 September, around 12.4% of 4DMedical shares were reported short, making it one of the most shorted stocks on the ASX.

That means a large number of traders are still positioned for the share price to fall.

When a heavily shorted stock suddenly starts climbing, some of those traders can be forced to buy shares back to close their positions.

That extra buying can then add more momentum to the rally.

Of course, we can’t know for sure that’s happening today because short position data comes through with a 4-trading-day delay.

Still, with the shares up more than 20% over the past week, I wouldn’t be surprised if some short covering is helping the move.

What should investors watch next?

The stock has already bounced around 27% from last Friday’s low, so I wouldn’t get carried away just yet.

I’d be more inclined to watch whether 4DMedical can keep building its commercial progress, especially in the United States.

Scan volumes are rising, and more sites are coming on board, but shareholders will eventually want to see that translate into stronger revenue.

Still, with the shares well below their highs, I can see why buyers are starting to come back.

The post 4DMedical shares are rocketing 11% today. Is a short squeeze starting? appeared first on The Motley Fool Australia.

More reading

• 4DMedical vs Telix Pharmaceuticals: ASX health tech share showdown
• These 2 ASX healthcare shares just jumped up to 15%. Here’s why
• Here are the top 10 ASX 200 shares today
• These are the 10 most shorted ASX shares
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Aaron Teboneras 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.

Australian retail shares have had a pretty rough year, and today isn’t doing much to change that.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is down 0.4% to 3,477 points in late morning trade.

This means the sector has now fallen almost 13% in 2026 and 23% over the past year.

It just shows how quickly sentiment towards retail stocks has changed this year.

And Morgan Stanley still sees plenty to worry about from here.

Why is Morgan Stanley still cautious?

According to The Australian, Morgan Stanley has taken another look at the retail sector following the latest reporting season.

And the broker is still cautious about FY27, even after the falls we’ve already seen across retail stocks.

Analyst Melinda Baxter and her colleagues said “discretionary stocks have de-rated, but earnings risks remain”.

Consumer spending held up better than Morgan Stanley expected through FY26, but the broker still sees some risks ahead for households.

There are a few reasons for that.

The RBA has lifted the cash rate 3 times this year, taking it to 4.35%.

Many mortgage holders are now paying more on their loans than they were at the start of 2026.

Consumer confidence has taken another hit as well.

The Westpac-Melbourne Institute Consumer Sentiment Index fell 5.2% to 84.4 in September.

Westpac said petrol prices had moved back above $2 a litre, while concerns about another RBA rate hike were weighing on households.

The housing market has also started going backwards.

National home prices fell 0.2% in August, marking a fifth consecutive monthly decline from their March peak.

Morgan Stanley thinks all of this could make shoppers a little more careful about where they spend their money.

The broker expects consumers to focus more on value, replacement purchases and promotions as household budgets get tighter.

Which ASX shares does Morgan Stanley prefer?

Morgan Stanley isn’t negative on every retailer, but it has still cut price targets across its discretionary retail coverage.

Wesfarmers Ltd (ASX: WES) was one of the few stocks to get some good news.

The Bunnings and Kmart owner was upgraded from underweight to equal-weight, with Morgan Stanley pointing to its more stable margins.

Wesfarmers shares are up 0.39% to $73.15 today.

Harvey Norman Holdings Ltd (ASX: HVN) went the other way.

Morgan Stanley downgraded the stock from equal-weight to underweight, pointing to its franchise model and exposure to the housing market.

Harvey Norman shares are down 0.96% to $4.13 in Friday trade.

The broker also remains cautious on JB Hi-Fi Ltd (ASX: JBH) and Super Retail Group Ltd (ASX: SUL).

Morgan Stanley has kept both stocks at underweight, with the shares trading at $65.77 and $12.37, respectively.

The post ASX retail shares are down 13% in 2026. Here’s what Morgan Stanley is worried about appeared first on The Motley Fool Australia.

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• Down 22%: Are Wesfarmers shares now a good buy for passive income?
• Wesfarmers vs Telstra: Which ASX dividend stock comes out on top?

Motley Fool contributor Aaron Teboneras 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 Super Retail Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Harvey Norman and Super Retail Group. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you bought Xero Ltd (ASX: XRO) shares back on 6 January 2023, and opted to sell those shares on 20 June 2025, you would have booked a tidy 170.6% gain.

But if you’d instead bought shares in the S&P/ASX 200 Index (ASX: XJO) business and accounting software provider on 20 June 2025, and decided to sell them today, you’d be nursing a loss of 66.5%.

And Xero shares don’t pay dividends, so there’s no passive income relief there.

Which brings us to booming ASX tech stock SKS Technologies Group Ltd (ASX: SKS).

SKS Technologies designs and installs electrical, audiovisual and communications networking systems into the data centre, government and corporate sectors. And the rapid rollout of AI technology has helped send the ASX tech stock soaring.

Currently trading for $8.34 a share, the SKS Technologies share price is up a whopping 143.2% since this time last year, smashing the 1.1% 12-month loss posted by the All Ordinaries Index (ASX: XAO).

And, unlike Xero shares, SKS paid two fully franked dividends over the last year, totalling 10 cents a share. This sees the ASX tech stock trading on a fully franked trailing dividend yield of 1.2%. That equates to a grossed-up yield of 1.7%, once we take those franking credits into account.

Why the ASX tech stock looks like a better buy than Xero shares

The team at Canaccord Genuity believe SKS Technologies can continue to outperform in the months ahead.

In a bullish note addressing the company’s growth, released in August, the broker said:

Going into FY27, we expect further scale benefits and see the 2H margin of +12% as maintainable even when accounting for the fact that each additional staff member could be less efficient than their current staff base.

We also think SKS realises genuine efficiency benefits as contracts scale, which should limit margins retracting and instead provide upside potential to our estimates over time.

Canaccord has a buy rating on the ASX All Ords tech stock with a price target of $10.30 a share.

That represents a potential upside of 23.5% from the current share price. And it doesn’t include any upcoming dividends.

What did SKS Technologies report for FY 2026?

SKS Technologies released its FY 2026 results on 18 August.

Highlights included a 33.0% year-on-year increase in revenue to $347.93 million. And earnings before interest, taxes, depreciation and amortisation (EBITDA) were up 80.8% to $42.4 million.

Comparing that to Xero shares, Xero reported a 31% year-on-year increase in revenue to $2.75 billion, while EBITDA of $757.4 million was up 18%.

On the bottom line, SKS achieved a 93.2% increase in net profit after tax (NPAT) to $27.11 million.

Due to its Melio acquisition costs, Xero’s FY 2026 NPAT of $167.4 million was down 27% from the prior year.

The post Forget Xero shares! Broker tips this top ASX tech stock for 24% gains appeared first on The Motley Fool Australia.

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

Analysts from Macquarie are soon to tour Nickel Industries Ltd (ASX: NIC)’s Indonesian operations, but have issued a positive research note on the company ahead of the visit.

Strong first half of the year

Nickel Industries last month reported a strong financial result for its first half, with revenue up 13.1% to US$938.4 million and net profit up 365.8% to US$52.5 million.

The company has hit a minor barrier since then, as the ramp-up of its Excelsior Nickel Cobalt HPAL project (ENC) has been interrupted by dry conditions in Central Sulawesi, Indonesia, which have constrained water supply to the operation.

But the company is expecting normal operations to resume with the onset of the wet season by December.

The company said re the ENC operations:

Prior to the onset of the dry conditions, ENC had ramped up to approximately 50% of nameplate capacity within four weeks of the commencement of commissioning. Should the water supply constraints persist, ENC is expected to operate at approximately 30% of nameplate capacity until water availability normalises.

Nickel Industries said its Hengjaya mine, conversely, had been performing well, with record monthly nickel sales of 1.6 million tonnes in August.

Managing Director Justin Werner said re the update:

ENC has performed exceptionally well since commissioning, reaching approximately 50% of nameplate capacity within four weeks, which is a genuine credit to our operating team. The dry conditions in Central Sulawesi are an unusual and temporary constraint on water supply, and we expect availability to normalise with the onset of the wet season. Combined July and August Adjusted EBITDA from operations of approximately US$90 million demonstrates the earnings capacity of the broader business.

Nickel Industries shares looking cheap

Macquarie said in its research note that a planned slurry pipeline “between Hengjaya Mine and ENC could reduce unit costs by replacing truck haulage of limonite ore, with these savings not reflected in our forecasts”.

They added:

Given elevated diesel prices, the magnitude and timing of cost savings could be a focus during the site visit. At the HPAL operations, rising sulphur prices are emerging as a cost headwind as low-cost inventory is depleted, although this is currently offset by strong cobalt revenues. Quantifying sensitivity to both could also be a key focus.

Macquarie said the company had established a “meaningful battery minerals portfolio”.

The broker said they expected dividend payments to resume, with dividend yields of 1.2% in CY26 and 4.1% in CY27 forecast.

Macquarie has a share price forecast of $1.25 on Nickel Industries compared to 79.25 cents currently.

The post This ASX nickel miner could jump 57%, Macquarie says appeared first on The Motley Fool Australia.

More reading

• 3 ASX mining shares Bell Potter rates a buy
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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It has been a rough month for Arafura Rare Earths Ltd (ASX: ARU) shareholders, but Friday is finally bringing some relief.

The Arafura Rare Earths share price is up 4.41% to 17.8 cents in morning trade after the rare earths developer released a new offtake update.

That comes after the stock fell to a 52-week low of 16.5 cents earlier this week.

Even with today’s rise, the shares are still down around 17% over the past month and 34% since the start of 2026.

So, let’s take a closer look at the details.

Arafura locks in more demand

According to the release, Arafura has extended an existing binding offtake agreement with a global wind turbine manufacturer.

The deal covers the supply of up to 500 tonnes per annum of neodymium-praseodymium (NdPr) oxide equivalent from the Nolans Project in the Northern Territory.

The initial contract runs for 5 years, with the potential to extend it to 8 years.

Pricing will be in US dollars and linked to independent global rare earth pricing indexes, including Benchmark Mineral Intelligence or S&P Global Platts North America.

Arafura hasn’t named the customer, saying it doesn’t plan to disclose counterparties unless their identity is considered material.

The company also said it remains in discussions with a number of other parties over additional offtake.

This means that at the maximum annual volume, this agreement would represent just over 11% of Nolans’ planned NdPr production.

Construction is getting closer

The latest offtake deal adds another piece to Arafura’s plans to move the Nolans Project from development into construction.

Nolans is designed to produce 4,440 tonnes of NdPr oxide each year over a planned 38-year mine life. Arafura says the project could eventually supply around 4% of global demand.

NdPr is used in permanent magnets in products such as electric vehicles and wind turbines.

The board made its final investment decision (FID) in May, with construction targeted to begin from September.

Management said project financing is in its final stages, with contractual close and strategic equity subscription settlement targeted for October.

Foolish takeaway

I like this update, particularly with Arafura locking in more demand ahead of construction at the Nolans Project.

The agreement covers a decent chunk of future production and gives the company another customer before the project is even built.

And with financing also nearing completion, I think Arafura shares are starting to look more attractive at these levels.

At 17.8 cents, I’d be keeping a close eye on Arafura shares as the company moves closer to getting Nolans off the ground.

The post Guess why this ASX stock is jumping 4% on Friday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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.

Some ASX shares have been hit particularly hard over the past year.

Two on my radar are trading more than 50% below their 52-week highs despite the long-term opportunities remaining strong.

Here is why I would buy them.

Catapult Sports Ltd (ASX: CAT)

Catapult shares are down more than 60% from their 52-week high.

That is a huge fall, but I still like where the sports technology company is heading.

Catapult works with professional sporting teams around the world, providing technology for areas such as athlete monitoring, video analysis, scouting, and performance management.

What I like is how much more valuable the platform can become as clubs use more of those products together.

A professional team may initially use Catapult to track player workloads, but the relationship can expand into video, tactical analysis, recruitment, or strength and conditioning. That creates opportunities to earn more from existing customers while continuing to add new teams.

I also think professional sport has plenty of room to become more technology-driven.

Teams spend enormous amounts on players and coaching staff. Software that helps them prepare better, make stronger decisions, or reduce the chance of players missing games can therefore have real value.

Catapult still needs to keep converting its growth into stronger profits, and the share price could remain volatile. But after a decline of more than 60%, I think it now offers an attractive risk-reward profile.

Cochlear Ltd (ASX: COH)

Cochlear shares are around 54% below their 52-week high.

The company has faced a difficult period, but I do not think the need for its products has changed.

Cochlear develops implantable hearing solutions for people with severe hearing loss.

One of the reasons I remain positive is that many people who could potentially benefit from a cochlear implant never receive one.

Low referral and treatment rates leave Cochlear with a substantial opportunity to reach more patients over time.

The company is also continuing to improve its products. Its Nucleus Nexa platform gives recipients more personalised hearing technology, while longer-term developments such as drug-eluting electrodes and potentially totally implantable devices could make cochlear implants even more capable.

That does not mean the recovery will be immediate. Cochlear still needs to rebuild investor confidence and demonstrate that earnings can improve after a weaker period.

But with the shares trading at less than half their 52-week high, I think investors are being offered a much more reasonable entry point into a global healthcare leader.

Foolish takeaway

A falling share price is only interesting to me when I still believe in the business behind it.

That is the case with Catapult and Cochlear.

Both have disappointed investors recently, but I think their underlying markets still offer plenty of room for growth. At prices more than 50% below their recent highs, I would be comfortable buying both with a long-term view.

The post 2 ASX shares down over 50% that I would buy appeared first on The Motley Fool Australia.

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

At age 60, you’ve reached preservation age, meaning you can retire and start drawing down on your superannuation. It also means you’re just seven years away from potentially receiving the Centrelink Age Pension.

The Age Pension is a fortnightly sum designed to help older Australians finance their lifestyle in retirement.

The only thing is. Not everyone is eligible. The amount you can get depends heavily on your income and the assets that you own. 

The income test assesses all of your income, pooled from all sources. That includes anything from superannuation contributions and investment income to part-time wages, bonuses, passive income, and commission payments. 

And the rules are constantly changing, as do the thresholds and maximum potential payments.

And overlooking or misunderstanding your limits means you could see yourself earn less, or nothing at all, when the time comes.

Here are six things every Australian at age 60 needs to know about the Age Pension income test before they retire.

1. Eligibility is strict

To be eligible for the Age Pension, you need to meet basic requirements ahead of the income or asset test. 

That is, you need to be 67 years old (or older). You also need to be an Australian resident who has lived in Australia for at least 10 years, with at least five of those years in a continuous period.

2. The maximum potential payment is about to change

From the 20th of September, the maximum fortnightly Age Pension payment will go up to $1,237.70 for individuals. Couples will soon get up to $933 per person per fortnight, or $1,866 combined.

These figures include the maximum basic rate, the maximum pension supplement, and the energy supplement.

3. Income limits for the maximum rate will stay the same

The income limits won’t change next week. To receive the full Age Pension, single Australians can earn up to $226 per fortnight. Meanwhile, couples can earn up to $396 per fortnight.

Individuals can earn up to an extra $24.60 per fortnight for each dependent child without reducing their pension. Couples living together and both getting a pension can each earn an extra $12.30 per fortnight for each dependent child.

4. Age Pension deeming rules apply, and they’re also about to change

To calculate how much income you receive from your assets, Centrelink uses what it calls a “deeming rule”. 

Deeming assumes your financial assets earn a fixed, set rate of income, regardless of what they actually earn. This assumed income is then added to any other income to determine your final Age Pension rate.

And these rates are about to go up, too.

As of the 20th of September, the lower deeming rate increases from 1.25% to 1.75%, while the upper rate increases from 3.25% to 3.75%.

For single Australians, the first $66,800 of financial assets will soon be deemed at a rate of 1.75%. Over that threshold, the assets will be deemed at the new 3.75% rate.

For couples, the lower 1.75% rate applies to the first $110,600 of combined financial assets, with the higher 3.75% rate applied to anything above.

5. Don’t panic, a part payment is still possible

If you’re over these levels, it’s still possible to earn some level of Age Pension payment before the payment reduces to zero. And thankfully, these are also about to get a boost next week.

Single Australians can earn up to $2,701.40 per fortnight, and couples (living together) can earn up to $4,128 per fortnight combined and still qualify for at least a part-Age Pension. 

If you earn over the income limit and below these cut-off points, your income is assessed on a sliding scale. For a single person, your Age Pension will reduce by 40 cents for each dollar over $226, and for couples, it will reduce by 20 cents for each dollar over $396.

6. Centrelink uses what is called “the lower rule of two”

Centrelink assesses you under both an income and an asset test and then applies whichever gives you the lowest rate of payment.

The post 6 things Aussies at age 60 need to know about the Age Pension income test before they retire appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.

Wall Street didn’t exactly love the US interest rate hike on Wednesday.

The Federal Reserve raised rates for the first time in more than 3 years.

Initially, US shares headed lower as investors took in what the Fed had to say.

But that didn’t last long.

By Thursday, buyers were back.

The S&P 500 Index (SP: .INX) climbed 1.1%, while the Nasdaq Composite Index (NASDAQ: .IXIC) jumped 1.7% and the Dow Jones Industrial Average Index (DJX: .DJI) added 0.6%.

That led the S&P 500 and Nasdaq to their strongest sessions in around 6 weeks.

And Aussie investors could get a bit of that rebound, too, today.

S&P/ASX 200 Index (ASX: XJO) futures are pointing around 0.6% higher this morning after a rough few weeks.

Rates could still go higher

The thing is, the Fed hasn’t exactly gone soft.

Its benchmark rate now sits between 3.75% and 4%, and chair Kevin Warsh said getting inflation back towards 2% remains the priority.

So, there could be another hike coming as well.

The Fed’s latest projections showed 16 of 18 policymakers expect rates to rise at least once more this year.

Normally, that would make life a little harder for growth stocks, especially the big tech companies that helped drive Thursday’s rally.

So why were investors buying again?

Well, it seems that Wall Street is becoming a little more comfortable with higher rates, provided the US economy keeps holding up.

Oil is helping calm things down

Oil is starting to take a little pressure off as well.

Brent crude has fallen for a second straight session to currently US$104.14 a barrel, while WTI is at US$101.14.

Yes, that’s still expensive, but it is well off the levels we saw earlier in the week.

Saudi Arabia is reportedly trying to restore around half the capacity of its damaged East-West Pipeline within days. It’s expecting to be back at full operations within 6 weeks.

In addition, China has privately asked Iran to help rein in Yemen’s Houthis after Saudi Arabia sought Beijing’s support.

This seems to have eased some fears that the supply situation in the Middle East could get worse.

What does this mean for the ASX?

All of this gives the ASX 200 a better backdrop heading into today’s session.

Wall Street finished higher, oil has pulled back, and the US 10-year Treasury yield has dropped below 5%.

That should take a bit of pressure off our stock market for now.

The post Wall Street just shrugged off the Fed rate hike. Could the ASX 200 be next? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 rewarding pick for investors seeking rising dividend payouts.

It’s understandable why the business has managed to deliver such a consistently growing dividend – a supermarket business selling food is a vital service and Australia’s population has steadily increased over the years.

FY26 was a prime example of how the business can deliver rising profit and larger dividends.

FY26 total revenue grew 2.8% to $45.6 billion, total underlying operating profit (EBITDA) rose 7.1% to $4.2 billion, underlying EBIT (another form of operating profit) rose 9.9% to $2.3 billion and underlying net profit after tax (NPAT) grew 13.7% to $1.25 billion.

This result allowed the Coles board of directors to hike the annual dividend per Coles share by 13% to 78 cents. Let’s take a look at what’s expected of the company’s dividend for the next few years.

FY27

We are currently in the 2027 financial year for Coles, with the supermarket business saying that its sales growth in the first eight weeks of FY27 was consistent with the fourth quarter of FY26. Its e-commerce penetration continues to be impressive and a significant driver of growth – this reached 15.7% over the period.

In the other divisions, liquor’s sales trajectory strengthened across the first eight weeks compared to the fourth quarter of FY26. Its convenience portfolio continued to deliver positive growth, while performance in the warehouse portfolio also improved.

Coles’ CEO Leah Weckert noted that the company has made significant progress over the last three years and it has a “strong plan for the year ahead to keep improving the customer offer, strengthen the business and support sustainable long term growth.”

According to the projection on Commsec, the business is projected to hike its annual dividend per Coles share by 7% to 83.5 cents. That’s a potential forward grossed-up dividend yield of 5.1%, including franking credits, at the time of writing.

FY28

The business is forecast to increase its annual dividend per share again in the 2027 financial year, which I’m sure is positive news for shareholders.

The projection on Commsec implies a possible year-over-year 6.3% increase of the annual dividend per share to 88.8 cents.

If owners of Coles shares do receive that dividend, it would be a grossed-up dividend yield of 5.4%, including franking credits, at the time of writing.

FY29

The best dividend of all could happen in the last year of this series of projections.

According to the projection on Commsec, the business could hike its FY29 dividend per share by 9.7% to 97.4 cents per share.

If that prediction comes true, then Coles would have a grossed-up dividend yield of 5.9%, including franking credits, at the time of writing.

There are not many ASX blue-chip shares that I think are as likely as Coles to continue hiking the dividend in the coming years, so it’s definitely one to look at for passive income investors.

The post Here’s the dividend forecast out to 2029 for Coles shares 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.

Drone company Innovaero Technologies Limited (ASX: INN) will list on the ASX next week after an initial public offer (IPO) which raised $40 million.

Australian defence force a key customer

The company’s prospectus said the company is focused on both crewed and uncrewed aircraft development and support systems.

Chair Vincenzo Di Pietro said in the prospectus:

As at the date of this Prospectus, the Company’s primary product is the OWL-B, a one-way loitering (OWL) munition system that forms part of the Company’s OWL family of systems, which is being developed in collaboration with the Commonwealth (Department of Defence) (DoD) via the Mission Talon-Strike Contract (refer to Section 7.1 for further details). In addition to the Company’s current and historic arrangements with the DoD for uncrewed aerial systems, the Company also derives revenue from its engineering, certification, composite manufacturing and MRO business.

Mr Di Pietro said a priority for the company would be advancing the development of the OWL family of systems, and in particular, “advancing the OWL-B system through remaining qualification and certification with the DoD with the objective of securing production contracts”.

The company would also be looking to expand into international markets in the UK, Japan, and the US, he said.

The company’s prospectus said it was looking to differentiate itself as an Australia-owned drone manufacturer.

The company said:

In Australia, the relevant market opportunity is significant compared with the United States and parts of Europe, particularly in relation to sovereign designed and manufactured armed drones and related interceptor capability. Historically, much of the defence market has been dominated by large primes and platform-centric acquisition models. However, the structural shift toward autonomous, attritable and scalable systems is increasing the role of specialist defence technology companies, such as the Company. The Company seeks to differentiate itself through sovereign capability, agility, and its unique (for its size) vertically integrated aerospace design/certification/manufacture capability.

Significant cash burn

The company’s financials, included in the prospectus, showed it generated revenue of $9.9 million in FY26 and made a net loss of $5.3 million.

The Innovaero Group was founded in 2006, before being formally incorporated in 2020.

The prospectus said:

Since then, its business and activities have evolved and expanded to include the delivery of integrated capabilities spanning complex aerial camera systems, mission-critical defence systems and high-value composite aerostructures for defence, aerospace, and adjacent industrial markets.

Following the capital raising, the executive director, Mike Von Bertouch, is expected to own 27.63% of the company.

The post Check out the ASX’s newest drone company appeared first on The Motley Fool Australia.

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