Author: openjargon

The ASX is having a spirited end to the trading week so far this Friday. Earnings season has rolled on and is ending the week with a bang. One of the more interesting reports this session is from a popular ASX dividend share. Unlike most dividend payers this earnings season, this stock has just delivered a crushing 50% cut to its dividend. That popular ASX dividend share in question is none other than WAM Capital Ltd (ASX: WAM).

WAM Capital is a listed investment company (LIC) that has been on the ASX since 1999. Over this time, it has built up a reputation as a generous dividend payer. However, the company has struggled in recent years, with investors enduring a savage share price decline.

To illustrate, WAM Capital shares last topped out at about $2.50 a share back in 2017. Today, the company has opened sharply lower. WAM Capital shut up shop at $1.51 a share yesterday. But this morning, those same shares opened at $1.40 each before descending to $1.28 at the time of writing. That’s a one-day loss of 15.2%.

That puts this company’s losses over the past 12 months at 25.7%. Shareholders who have held on for the past five years are down a horrid 43.9%.

In other words, WAM Capital’s generous dividends have been the only thing saving investors’ returns. But now that looks set to change too.

WAM Capital shares plunge as dividend slashed 50%

As part of its latest earnings, released this morning, WAM Capital revealed that it can no longer afford to maintain the 7.75-cents-per-share dividend every six months. That’s the payout investors have been receiving on a biannual basis since FY 2020. Investors will receive a final dividend of 7.75 cents per share, partially franked to 60%, in October. But that will be the last of its kind, for at least a while.

In these earnings, WAM Capital has “announced an FY2027 full-year dividend target of 8.0 cents per share, comprising an interim dividend of 4.0 cents per share and a final dividend of 4.0 cents per share”.

This means that 2027’s payouts will be worth approximately half of the dividends that investors have become used to over the past six years or so. It is a calamitous and embarrassing moment for the company, whose investors will now enjoy the same record-low level of dividend income that they last received in 2009. As we’ve warned investors about, the dividends needed to be slashed because of the lack of profits to fund them. Here’s how WAM Capital justified it:

Since FY2020, the Board has maintained WAM Capital’s full year dividend at 15.5 cents per share. Over that period, the dividends paid by the Board exceeded the profits generated, drawing down the Company’s accumulated profits reserve. Maintaining the dividend at 15.5 cents per share is no longer sustainable with the profits reserve available.

WAM Capital has also told investors that they should not bank on getting 8 cents per share in dividends next year either, stating “the FY2027 dividend target is not a forecast or commitment of future dividends”. No wonder WAM Capital shares are copping a beating this Friday.

The post Ouch: WAM Capital shares crash 15% as dividend cut in half appeared first on The Motley Fool Australia.

More reading

• WAM Capital trims FY27 dividend after portfolio setback in FY26
• This popular ASX dividend stock has a 10% yield. That’s a problem
• This fund manager thinks these ASX shares are buys and have big potential!

Motley Fool contributor Sebastian Bowen 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.

Boss Energy Ltd (ASX: BOE) recently released solid profit results and a new mining plan for its Honeymoon uranium operations in South Australia, but brokers are divided on the company’s future prospects.

Two of the brokers who released research reports on the company this week have buy recommendations on the stock, while one has a neutral rating.

I’ll get to the specifics of the share price targets they are forecasting shortly.

First, let’s have a look at what the company released.

A welcome return to profits

Boss recorded a net profit of $2.5 million for FY26, which was a $36.7 million improvement from the previous year.

Revenue doubled to $151.1 million, with the company paying an average realised price of US$74.4 per pound of uranium.

The company provided guidance for production of 1.25 to 1.3 million pounds of uranium in the current year, which the brokers said was below expectations.

The company said:

The production and cost profile reflects the mine-development uncertainty experienced since July 2025 and Boss’ disciplined decision to limit further investment in legacy wellfields, where the expected returns did not justify additional capital. This approach has preserved balance sheet strength while enabling continued investment in plant infrastructure and new value-accretive wellfields, to support the expected production ramp-up.

Boss also released a new feasibility study that envisages a wider-spaced well design for its in-situ leach mine and is forecast to keep the mine operating until at least FY34.

The company said its costs would decrease as a result, reflecting an increase in uranium concentration in the leach solution.

Brokers divided on the outlook for Boss Energy shares

The Canaccord Genuity team said they had factored in two further deposits, Jason’s and Gould’s Dam, into their valuation of the company, which they see providing options for mining from 2035.

They have reduced their price target on the company from $2.50 to $2, but that’s still well above the current price of $1.50.

Macquarie said the new mine design provided a credible pathway to production and the “wide spaced wellfield design appears likely to be quite effective in reducing costs given 50% less infrastructure and 28% higher … grades”.

The broker said the market may have focused too much on FY27 guidance in selling off the stock, and “Honeymoon value will be better demonstrated when fully ramped at 1.9Mlb/yr”.

Macquarie has a $1.80 price target on the company.

Meanwhile, UBS has a neutral rating on the stock and a price target of $1.50.

UBS said it was not factoring the other deposits into its valuation at this stage.

Boss Energy is valued at $753.5 million.

The post Are Boss Energy shares a buy, hold or sell on new mining plans? 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 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.

The 4DMedical Ltd (ASX: 4DX) share price is in focus after the company posted a 21% lift in revenue to $7.1 million for FY26, with adjusted net loss improving 7% to $32.9 million.

What did 4DMedical report?

• Revenue from ordinary activities up 21% to $7.1 million
• Adjusted net loss down 7% to $32.9 million
• Statutory net loss expanded to $203 million (from $30.1 million a year ago), driven by significant non-cash items
• Gross margins remained above 90%
• No dividend declared or paid
• Net tangible assets per share improved to $0.17 (from negative $0.02)

What else do investors need to know?

4DMedical’s underlying SaaS revenue climbed 23%, supported by strong growth from B2B hospital and radiology partners, third-party AI distributors, and global medical technology companies. The loss at the statutory level included a major non-cash impact—remeasurement of the Pro Medicus loan and associated derivative financial instrument—reflecting complex accounting treatment rather than core business cash outflows.

The company raised $233 million through share placements and finished the year with a robust $278 million in cash, positioning it well for ongoing investment and expansion. No dividends were declared for FY26.

What did 4DMedical management say?

Dr. Andreas Fouras, Managing Director and CEO, commented:

4DMedical has maintained strong momentum throughout FY26, improving our adjusted net loss result and strengthening our balance sheet so we can accelerate future growth initiatives.

What’s next for 4DMedical?

Looking ahead, 4DMedical recently completed the acquisition of contextflow GmbH, an Austrian lung cancer screening technology company. The group also led a strategic investment in RevealDx, securing exclusive distribution rights for RevealAI-lung across key markets, including Europe, Australia, and New Zealand.

Management plans to continue scaling its commercial partnerships and integrating new technologies, while building a globally competitive medical imaging and AI platform.

4DMedical share price snapshot

Over the past 12 months, 4DMedical shares have risen nearly 700%, far outpacing the All Ordinaries Index (ASX: XAO).

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The post 4DMedical share price rises as FY26 revenue climbs, losses moderate appeared first on The Motley Fool Australia.

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• 4DMedical shares are up 670% — but why have they halved?
• Are Pro Medicus shares now too cheap to ignore?

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.

Flight Centre Travel Group Ltd (ASX: FLT), Air New Zealand Ltd (ASX: AIZ), and Virgin Australia Holdings Ltd (ASX: VGN) shares are turning heads on Friday.

In morning trade today, two of the well-known ASX shares are outpacing the 0.2% gains posted by the All Ordinaries Index (ASX: XAO), while one is trailing the benchmark.

Here’s what’s catching investor interest.

Virgin Australia shares rise on renewed dividend

Virgin Australia shares are up 1.1% at the time of writing, swapping hands for $2.84 apiece.

This follows the release of the ASX 300 airline’s full-year FY 2026 results.

Highlights included a 13.4% year-on-year increase in underlying earnings before interest and tax (EBIT) to $753 million.

And on the bottom line, Virgin Australia shares look to be getting support today from the airline’s 21.9% increase in underlying net profit after tax (NPAT) to $404 million.

The company also issued its first dividend since relisting on the ASX in June 2025. Management declared a fully-franked dividend of 7.6 cents per share.

Air New Zealand shares sink on net loss

Air New Zealand also released its FY 2026 results today.

But unlike Virgin Australia shares, Air New Zealand shares are down 0.8% following the release, trading for 32.3 cents each.

On the positive side of the ledger, the Kiwi airline reported a 3.9% year-on-year increase in revenue to NZ$7.0 billion.

However, operating cash flow of NZ$819 million was down 12.8% from FY 2025.

And the company posted a net loss after tax of NZ$242 million.

Much of the pressure has come from surging jet fuel costs amid the ongoing Middle East conflict.

Air New Zealand management noted, “The Middle East conflict increased fuel cost by an estimated $328 million compared to what we expected going into the second half, and by $205 million after hedging.”

Flight Centre shares lift amid board shakeup

Joining Air New Zealand and Virgin Australia shares in creating a buzz today, we find Flight Centre.

After reporting its FY 2026 results on Wednesday, today the ASX 200 travel stock announced some major leadership changes.

Flight Centre revealed that Gareth Turner will join the board as an independent non-executive director. Turner will succeed Rob Baker, a 13-year veteran of the company’s board.

Commenting on Turner’s appointment, Flight Centre chair Gary Smith said:

Gareth brings deep financial and commercial experience across the technology, telecommunications and travel and tourism sectors, along with a strong track record as a CFO.

The board looks forward to drawing on his expertise as our company continues to evolve and targets near-term and longer-term growth opportunities.

Flight Centre shares are up 0.6% at the time of writing, trading for $12.26 apiece.

The post Why is everyone talking about Flight Centre, Air New Zealand and Virgin Australia shares on Friday? appeared first on The Motley Fool Australia.

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• Flight Centre Travel Group delivers record year despite Q4 challenges

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

Virgin Australia Holdings Ltd (ASX: VGN) shares are in the green on Friday after the airline released its FY26 results.

At the time of writing, the Virgin share price is up 2.14% to $2.87.

There were plenty of numbers for investors to unpack, with earnings and revenue both moving higher during the year.

However, income investors may be paying particularly close attention to one part of the result.

Virgin Australia has declared its first dividend since returning to the ASX last year.

So, how much will shareholders receive?

Virgin Australia declares a fully-franked dividend

Virgin has declared a fully-franked dividend of 7.6 cents per share for FY26.

It’s a notable moment for shareholders, with this being the airline’s first dividend since returning to the ASX last year.

At the current share price of $2.87, the payment works out to a yield of almost 3% before franking credits.

The company said the dividend follows its capital allocation framework, which focuses on keeping the balance sheet strong and funding the business first.

Virgin Australia finished FY26 with net debt of $1.2 billion and leverage of 0.9 times underlying EBITDA, below its target range of 1 to 2 times.

It also had $1.84 billion in cash, cash equivalents, and term deposits at the end of June.

When will Virgin Australia pay its dividend?

Virgin shares are locked in to trade ex-dividend on 14 September.

The record date will follow on 15 September, with the dividend due to be paid one month later on 15 October.

And because it is fully franked, shareholders can also benefit from franking credits.

What did Virgin Australia report?

The airline delivered a stronger result in FY26, with underlying EBIT rising 13.4% to $753 million.

Underlying net profit after tax (NPAT) increased 21.9% to $404 million, while statutory NPAT rose 4.7% to $501 million.

Underlying revenue increased 8.1% to $6.28 billion, helped by strong customer demand and growth across both the airline and Velocity businesses.

Virgin Australia’s airline segment reported underlying EBIT of $616 million, up 15.2%, while Velocity EBIT increased 12.3% to $143 million.

Operating cash flow also came in at $1.3 billion for the year.

What’s next on the horizon?

Seeing dividends return is another positive for shareholders since Virgin Australia relisted.

Looking ahead, the company said demand and forward bookings remain strong, although first-half FY27 underlying EBIT is expected to be relatively flat.

Domestic capacity is expected to fall by around 3% during the half, while revenue per available seat kilometre is forecast to rise 6% to 8%.

If earnings keep moving in the right direction, shareholders could have more dividends to look forward to.

The post Virgin Australia shareholders are getting a dividend. Here’s how much appeared first on The Motley Fool Australia.

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• Why is everyone talking about Flight Centre, Air New Zealand and Virgin Australia shares on Friday?
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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.

Shares in Bubs Australia Ltd (ASX: BUB) are down almost 50% over the past 12 months, but if the brokers are to be believed, the shares are about to make a comeback.

Both Bell Potter and Shaw and Partners have released new research reports on the baby formula company, and each is predicting solid share price gains.

I’ll get to the specifics of their share price targets shortly. First, let’s look at the company’s recent full-year report.

Profits on the rise

Bubs said in its report released this week that full-year revenue had increased 9.2% to $111.9 million, while underlying EBITDA came in at $5.3 million, up from $2.1 million.

Bubs Chief Executive Officer Joe Coote said of the result:

FY26 marked important progress against our growth strategy, delivering revenue growth of 9% and strengthening the foundations for future growth. This was driven by continued momentum in the United States, where revenue increased 24% as we expanded distribution to more than 10,000 stores across targeted retail formats. During the year we rebuilt inventory levels, expanded distribution channels, launched adjacent products, increased brand investment and strengthened our leadership team to support future growth. This progress was achieved despite a challenging operating environment, with changing tariff policies, geopolitical disruption and evolving regulatory requirements increasing supply chain costs and affecting product availability, particularly in the second half.

The company said it expected improved momentum in the first half of FY27, with strong growth expected in the US, growth expected in China supported by expanded distribution and marketing, and continued marketing investment in Australia to accelerate recovery.

The company added:

Gross margin is expected to rebound, with working capital positioned to support the anticipated growth.

Bubs Australia shares looking cheap

Shaw and Partners said the results were largely in line with expectations, and the current year would be driven by growth in the US.

They said:

Our key investment thesis remains centred on the US business, where revenue grew 24% to $65.8 million and distribution expanded to over 10,000 stores, while management expects growth and margin recovery in FY27 as regulatory and tariff headwinds ease and permanent FDA approval progresses. Following the result, we have reduced our DCF valuation from $0.16/s to $0.15/s, reflecting forecast revisions and model roll-forward, but maintained our buy rating given the forecast 74% total shareholder return potential and confidence in the company’s medium-term growth outlook.

Bell Potter has a price target of 13.5 cents on Bubs shares, compared to 8.6 cents currently.

Bubs is valued at $76.9 million.

The post How high do brokers think Bubs Australia shares will go? appeared first on The Motley Fool Australia.

More reading

• Ouch: WAM Capital shares crash 15% as dividend cut in half
• Are Boss Energy shares a buy, hold or sell on new mining plans?
• 4DMedical share price rises as FY26 revenue climbs, losses moderate
• Why is everyone talking about Flight Centre, Air New Zealand and Virgin Australia shares on Friday?
• Virgin Australia shareholders are getting a dividend. Here’s how much

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.

DroneShield Ltd (ASX: DRO) shares have had a rough year.

The stock is down almost 50% since the start of 2026, even though the underlying business is still growing strongly.

For patient investors comfortable with plenty of volatility, I think that disconnect is becoming attractive.

Growth is still there

DroneShield’s latest half-year result was a little softer than I had hoped in some areas, particularly given the expectations that had built around the company.

But I do not think the bigger picture has changed.

First-half revenue reached $125.8 million, up 74% on the prior corresponding period. Recurring revenue also grew strongly, although it remains a relatively small part of the overall business.

That tells me demand for DroneShield’s counter-drone technology is still expanding quickly.

The company operates in a market that has become much more important in recent years. Drones are playing a growing role in modern warfare, while governments are also looking for better ways to protect military bases, airports, infrastructure, and other sensitive locations.

I think spending on counter-drone technology could remain elevated for a long time.

I am looking much further ahead

The main reason I would consider buying after the fall is that I think DroneShield could be a considerably larger company in 10 years.

It is still building out manufacturing capacity, expanding internationally, and investing in new hardware and software.

That is important because counter-drone technology will not stand still. Threats will keep changing, so customers will need systems that can be upgraded and improved rather than equipment that quickly becomes outdated.

DroneShield has spent years specialising in this field, and I think that focus gives it a chance to remain relevant as the market develops.

If it keeps winning larger contracts and builds deeper relationships with defence and security customers, today’s business could eventually look quite small.

The share price will probably remain volatile

I would not treat the 50% decline as proof that DroneShield shares are automatically cheap.

DroneShield remains a high-risk growth investment and trades on a very high P/E ratio.

Defence contracts can arrive unevenly, procurement processes can take longer than expected, and competition is increasing as more companies target the counter-drone market.

The company is also investing heavily for future growth, which means results may not progress neatly from one period to the next.

That is why I would keep any position relatively small and only invest money I was prepared to leave in the shares through potentially sharp moves in either direction.

Foolish takeaway

Yes, I think DroneShield shares are worth considering after falling around 50% in 2026.

The latest performance was not perfect, but the company is still delivering strong growth in a market with substantial long-term potential.

For investors willing to ride out the volatility, I think the current weakness could prove to be an opportunity if DroneShield becomes the much larger defence technology business I believe it can be over the next decade.

The post Are DroneShield shares a buy after dropping almost 50% in 2026? appeared first on The Motley Fool Australia.

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

The Dicker Data Ltd (ASX: DDR) share price is in focus today after the company reported a strong H1 FY26, with gross revenue climbing 14.2% to $2,100.9 million and net profit after tax up 54.1% to $60.7 million.

What did Dicker Data report?

• Gross revenue reached $2,100.9 million, up 14.2% versus the prior corresponding period (pcp)
• Gross profit increased 23.0% to $205.6 million, with gross profit margin at 9.8%
• EBITDA rose 37.3% to $103.5 million
• Net operating profit before tax grew 50.1% to $86.4 million
• Net profit after tax jumped 54.1% to $60.7 million
• Recurring gross software sales up 20.7% to $600 million
• FY26 guidance: Gross revenue of $4.3–$4.4 billion and PBT of $162–$165 million

What else do investors need to know?

Australian operations drove much of the growth, with gross revenue up 18.3% to $1,831.5 million and gross profit rising 29.0%. This result helped offset softer trading and lower profit in New Zealand, where gross revenue was down 7.6% amid currency headwinds.

Software and Advanced Solutions were standout performers, growing 18% and 16.9% respectively, thanks to continued demand in cloud, cybersecurity, AI infrastructure and data centre investments. Dicker Data also expanded its vendor portfolio, signing new partners in areas like AI, cybersecurity, and data management to help meet evolving technology needs.

The company also achieved record first-half AI-related sales and bookings, with an invoiced value exceeding $50 million, supporting its position as a key enabler in the IT channel.

What did Dicker Data management say?

Executive Chair and Managing Director Fiona Brown said:

The Company delivered a strong first half result, with gross revenue surpassing $2.1 billion. This performance reflects the continued strength of our operating model, disciplined execution across the business, and the ability of our teams to capture opportunities emerging from major technology refresh cycles, AI infrastructure investment and sustained demand across software and cybersecurity.

What’s next for Dicker Data?

Looking ahead, Dicker Data expects robust demand to continue through the rest of FY26, underpinned by digital transformation, ongoing technology refreshes, and broader adoption of AI solutions. Management expects growth in data centre, software, and AI-related projects to support H2 FY26, though end-point solutions growth may moderate and higher component prices could impact margins in the second half.

The company’s FY26 guidance is for group gross revenue between $4.3 billion and $4.4 billion, and PBT of $162 million to $165 million. Dicker Data says its diversified vendor portfolio and strong industry fundamentals position it well for continued momentum.

Dicker Data share price snapshot

Over the past 12 months, Dicker Data shares have risen 37%, far outpacing the All Ordinaries Index (ASX: XAO).

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The post Dicker Data delivers record H1 FY26 profit and lifts full-year guidance appeared first on The Motley Fool Australia.

More reading

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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 positions in and has recommended Dicker Data. 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 Harvey Norman Holdings Ltd (ASX: HVN) share price is in focus today after the company reported a 4.9% increase in statutory profit before tax to $790.29 million and announced a fully-franked final dividend of 13.0 cents per share.

What did Harvey Norman report?

• Total system sales revenue up 3.1% to $9.64 billion
• Earnings before interest, tax, depreciation & amortisation (EBITDA) rose 5.0% to $1.18 billion
• Statutory profit before tax increased 4.9% to $790.29 million
• Underlying profit before tax (excl. AASB 16, property revals, penalty) up 10.9% to $654.69 million
• Basic earnings per share grew 2.0% to 42.41 cents
• Fully-franked dividend lifted 3.8% to 27.5 cents per share for FY26

What else do investors need to know?

The company highlighted strong performance from its international operations, with overseas company-operated retail profit before tax jumping 23.4% to $135.72 million. Harvey Norman continued its international expansion, particularly in the UK, where its platform is being scaled for long-term growth.

Asset strength remains a key feature, with total assets increasing 5.7% to $8.85 billion. Operating cash flows were robust at $537.22 million, underpinning ongoing investments, dividend payments, and future initiatives.

What did Harvey Norman management say?

The company’s chair, Gerry Harvey, commented:

FY26 delivered growth in operating earnings, continued international expansion and strong franchise profitability. With total assets approaching $9 billion, net assets approaching $5 billion, substantial property ownership and low gearing, we remain well positioned to deliver long-term sustainable growth for our shareholders.

What’s next for Harvey Norman?

Harvey Norman is focused on leveraging its growing international presence, especially in established markets like New Zealand, Asia, and Europe. Management expects positive momentum to continue as the company opens new stores, invests in Next Gen-AI product categories, and maintains attention to cost management.

With a strong asset-backed balance sheet and conservative gearing, the business aims to fund further expansions while supporting long-term value creation for shareholders.

Harvey Norman share price snapshot

The Harvey Norman share price is underperforming the S&P/ASX 200 index (ASX: XJO) with a decline of around 27% over the past 12 months.

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The post Harvey Norman lifts profit and dividend in FY26 earnings result 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman. 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 WAM Capital Ltd (ASX: WAM) share price is in focus today after reporting a 10.5% decline in its investment portfolio for FY2026 and announcing a maintained final dividend of 7.75 cents per share, partially franked at 60%.

What did WAM Capital report?

• Full year FY2026 dividend of 15.5 cents per share, partially franked at 60%, maintained
• Final dividend of 7.75 cents per share, payable 21 October 2026
• Operating loss after tax of $125.9 million (FY2025: profit of $219.6 million)
• Investment portfolio declined 10.5% in FY2026, underperforming key ASX indices
• FY2027 dividend target reduced to 8.0 cents per share to preserve capital
• Pre-tax net tangible assets (NTA) at $1.22 per share at 30 June 2026

What else do investors need to know?

The Board’s decision to cut the FY2027 dividend target to 8.0 cents per share comes after years of paying out more in dividends than was earned, drawing down the profits reserve from $1.48 per share to just 5.6 cents per share after the latest payout. The reduction aims to protect WAM Capital’s capital base and rebuild its profits reserve.

In FY2026, WAM Capital’s portfolio underperformed compared to the broader S&P/ASX All Ordinaries Accumulation Index (up 5.7%) and S&P/ASX Small Ordinaries Accumulation Index (up 8.1%). The main challenges were sector positioning and tough conditions for small-cap industrials, as larger companies and AI beneficiaries attracted most investor attention.

WAM Capital remains focused on a diversified portfolio, with notable holdings in Artrya Limited, GemLife Communities, Aussie Broadband, and Maas Group. The investment team has increased cash holdings (11.5% of the portfolio) and repositioned assets looking for better returns in FY2027.

What did WAM Capital management say?

Chairman Geoff Wilson AO said:

Since FY2020, the Board has maintained WAM Capital’s full year dividend at 15.5 cents per share. Over that period, the dividends paid by the Board exceeded the profits generated, drawing down the Company’s accumulated profits reserve. Maintaining the dividend at 15.5 cents per share is no longer sustainable with the profits reserve available.

We recognise the impact a reduction in the FY2027 full year dividend target to 8.0 cents per share will have on shareholders. The FY2027 target is intended to rebuild the profits reserve, preserve the Company’s capital base and place WAM Capital in a stronger position to deliver sustainable income and capital growth for shareholders.

What’s next for WAM Capital?

The Board has set a more sustainable FY2027 dividend target, aiming for 8.0 cents per share, split evenly between interim and final dividends, still partially franked at 60%. Achieving this will depend on generating additional profits through positive portfolio performance in FY2027, so the dividend target is not a formal forecast or guarantee.

Management is optimistic about the potential for recovery, particularly for undervalued smaller companies, as interest rates stabilise and market conditions improve. WAM Capital plans to maintain its active, diversified approach and is positioned to benefit if conditions for small-to-mid-cap stocks pick up.

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The post WAM Capital trims FY27 dividend after portfolio setback in FY26 appeared first on The Motley Fool Australia.

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• Aussie Broadband FY26 earnings: double-digit growth and new acquisitions
• Maas Group delivers record FY26 earnings, boosts buybacks, eyes growth

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 Aussie Broadband. The Motley Fool Australia has recommended Aussie Broadband. 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.