Author: openjargon

Starting out in the share market can feel straightforward: buy a few popular ASX shares like BHP Group Ltd (ASX: BHP) and CSL Ltd (ASX: CSL), wait, and watch wealth grow. In reality, many new investors fall into avoidable traps that can hurt long-term returns.

The good news is that most of these mistakes are behavioural rather than technical. Once identified, they are relatively easy to fix. Here are three of the most common investing mistakes beginners still make.

1. Trying to time the market

One of the biggest mistakes new investors in ASX shares make is trying to predict short-term market movements.

It often starts with good intentions. Investors see headlines about falling markets and decide to “wait for a better entry point.” Or they sell during periods of volatility, hoping to buy back later at a lower price.

The problem is that timing the market consistently is extremely difficult, even for professionals. Markets tend to recover quickly, and missing just a handful of strong trading days can significantly reduce long-term returns.

A more effective approach is time in the market rather than timing the market. Regular investing, regardless of short-term noise, helps smooth out volatility over time.

2. Chasing hot stocks and trends

Another common mistake is buying ASX shares purely because they have recently surged.

This often happens during periods of market excitement. A stock doubles, gets attention on social media, and suddenly feels “safe” because everyone is talking about it.

But strong recent performance does not guarantee future returns. In many cases, the best part of the rally has already passed by the time retail investors enter.

Chasing momentum can also lead to concentration risk, where portfolios become overly exposed to a small number of high-flying growth stocks.

A more balanced approach focuses on business quality, earnings growth, and valuation rather than recent price action.

3. Ignoring diversification

Many beginners also underestimate the importance of diversification.

It is common for new investors to hold just a few ASX shares, often in sectors such as banking, mining, or technology. While this can work in strong markets, it creates significant risk if one sector underperforms.

Diversification helps reduce the impact of any single company or industry on overall portfolio performance. It can be achieved across sectors, geographies, and even asset classes.

Exchange-traded funds (ETFs) are among the simplest ways to achieve diversification without having to pick individual stocks. Broad-market ETFs provide exposure to hundreds of companies in a single investment.

Foolish takeaway

Most investing mistakes do not come from complex errors. They come from behaviour: reacting emotionally, chasing performance, and underestimating risk.

By focusing on long-term investing, prioritising quality businesses, and maintaining diversification, beginners can avoid many of the pitfalls that derail returns early on.

Investing does not need to be complicated, but it does require discipline.

The post New to ASX shares? Avoid these 3 beginner mistakes appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why I’d buy CSL and Zip shares before they recover
• Are Fortescue shares a strong buy or a value trap?
• Down 54%: What should I do with my CSL shares now?
• There are still some well-priced ASX dividend shares. Here’s where to look

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

ASX tech names Xero Ltd (ASX: XRO) and WiseTech Global Ltd (ASX: WTC) exploded yesterday. 

WiseTech shares rose 14% yesterday while Xero shares rose 8%, making them two of the top performers on the ASX. 

Both companies were heavily impacted over the last year by AI takeover fears, with SaaS companies hit hard. 

Investors who have held these tech shares through 60%+ losses over the last 12 months will be hoping this marks the beginning of a long-term recovery. 

Why did Xero and WiseTech shares jump yesterday?

There are a couple of factors that might have impacted WiseTech shares yesterday. 

After falling 20% across Monday and Tuesday, it’s possible investors were simply buying the dip on this battered tech stock. 

However it may have also been influenced by the company’s response to recent media reports involving founder Richard White.

Meanwhile for Xero shares, investors are likely searching for value options after it once again received positive guidance from the team at Citi. 

What’s next?

These ASX tech shares now appear at a crossroads. 

The bull case for WiseTech shares is based on its position as a leading global logistics software provider. 

Its CargoWise platform benefits from high customer switching costs, recurring revenue, and long-term growth in global trade digitalisation. 

However, it appears right now the most important factor is regaining investor confidence after allegations against its CEO. 

Meanwhile, for Xero shares, the bull case centres around its strong market position in cloud accounting software, recurring subscription revenue, high customer retention, and continued growth opportunities in international markets. 

The bear case is that its valuation relies on sustained growth, making the stock vulnerable to slower subscriber growth, stronger competition, economic weakness, or delays in improving profitability.

What are experts saying about Xero and WiseTech shares?

Despite very real concerns, experts seem to believe both stocks are trading at attractive valuations.

WiseTech shares closed yesterday at $32.86 each. 

However, the team at Ord Minnett see this as a serious discount. 

The broker has a recent price target of $60 on WiseTech shares along with a retained buy recommendation. 

This indicates an upside potential of 82%. 

Meanwhile, for Xero shares, the team at Citi recently reaffirmed its buy rating and $113.60 price target on the cloud accounting platform provider’s shares.

Based on yesterday’s closing price of $70.31, this indicates 61% upside potential. 

The post Is the tech recovery finally here for Xero and Wisetech shares? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
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• Why Benz Mining, Collins Foods, WiseTech, and Xero shares are shooting higher today
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Motley Fool contributor Aaron Bell has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX healthcare share Telix Pharmaceuticals Ltd (ASX: TLX) continued its strong run on Wednesday, rising 8% to $15.73.

Telix is now up 18% over the past month and 40% in 2026, although it remains down 36% over the past 12 months.

After a difficult year, investor sentiment has clearly improved. Here are three reasons the rally may still have further to run.

A powerful competitive moat

The ASX healthcare share operates in one of the most specialised areas of healthcare: radiopharmaceuticals.

These products combine radioactive isotopes with targeted therapies and diagnostics, helping doctors detect and treat diseases such as cancer with greater precision.

Importantly, this is not an industry that newcomers can easily enter.

Developing radiopharmaceuticals requires specialised expertise, manufacturing capabilities, regulatory approvals, and distribution networks that are expensive and difficult to replicate. Those barriers create a strong moat and help protect established players such as Telix from potential competitors.

As the market for precision medicine continues to expand, that competitive advantage could become increasingly valuable.

Momentum is building

The company has delivered a steady stream of positive developments in recent months.

In late February, Telix secured a key regulatory approval filing in Europe, marking an important step in expanding its commercial footprint beyond existing markets.

Momentum continued into April when the company announced that the US Food and Drug Administration had accepted its New Drug Application for TLX101-Px (Pixclara®). The acceptance represents a significant regulatory milestone and moves the product closer to potential commercialisation.

Telix also revealed a major collaboration with US biotechnology giant Regeneron Pharmaceuticals, strengthening confidence in its long-term growth strategy and pipeline potential.

Investors appear to be responding positively to the increasing number of catalysts emerging across the business.

Strong growth outlook

Telix’s financial performance continues to support the bullish investment case.

In April, the company reported first-quarter 2026 group revenue of US$230 million, representing an 11% increase on the previous quarter and a 23.7% rise compared to the prior corresponding period.

Management of the ASX healthcare share continues to guide to FY2026 revenue of US$950 million to US$970 million, supported by growth in its Precision Medicine business and contributions from its radiopharmacy operations.

The company also expects to invest between US$200 million and US$240 million in research and development this year.

That investment is helping advance multiple late-stage clinical programs and upcoming regulatory milestones across the pipeline.

Management also estimates its Precision Medicine and Therapeutics portfolio addresses a potential US$32 billion market opportunity in the United States alone, highlighting the scale of the growth runway ahead.

Analysts remain bullish

Market experts continue to see significant upside.

According to TradingView data, the majority of analysts covering the ASX healthcare share rate it as a strong buy. The most optimistic price target is $31.64, implying approximately 101% upside from current levels.

Morgans is also positive on the stock, with a $24.33 price target. That suggests upside of roughly 55%.

The broker recently noted that increasing consolidation across the healthcare sector could generate additional interest in Telix shares.

The post 3 reasons to buy this recovering ASX healthcare share appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) and Wesfarmers Ltd (ASX: WES) are often seen as two of the highest-quality shares on the ASX.

I can understand why. Both have strong positions, long track records of success, and attract plenty of investor attention.

But quality does not stop there. There are other ASX shares with durable customer relationships, strong market positions, and the ability to compound over time.

If I were looking beyond CBA and Wesfarmers, these are three quality ASX shares I would consider buying.

Reece Ltd (ASX: REH)

Reece is one of those businesses that can look plain from a distance and more impressive up close.

The company supplies plumbing, bathroom, heating, ventilation, air conditioning, and waterworks products to trade customers. That may not sound glamorous, but the business sits inside an important part of the economy.

Plumbers and contractors need product availability, speed, reliability, and technical support. A delayed part can delay a job, upset a customer, and cost money. That gives a trusted supplier a meaningful role in the daily work of its customers.

I think that is one of Reece’s strengths. It has spent decades building relationships, branch networks, systems, and product knowledge. Those things are hard to copy quickly.

The US opportunity also makes the story more interesting. Reece has a much larger market to pursue, and success there could support growth for many years.

Housing cycles will still affect demand, and international expansion is rarely smooth. But I like businesses that can keep improving through better service, better systems, and deeper customer relationships.

Aristocrat Leisure Ltd (ASX: ALL)

Aristocrat is another quality ASX share I would consider.

The gaming company has built a global business around content, hardware, mathematics, design, and customer insight.

It is easy to think of gaming as purely a consumer business, but I see Aristocrat as a product development company with valuable intellectual property. It has to keep refreshing its content pipeline, improving cabinets, understanding player behaviour, and helping customers earn returns from their floor space.

It delivers on this by investing around 12% of revenue in R&D activities each year. And with Aristocrat consistently reporting a strong return on invested capital, this money isn’t being wasted.

The balance sheet also gives Aristocrat flexibility. A strong financial position can support investment, acquisitions, and capital returns when conditions allow.

Regulation and digital competition remain important risks. Still, I think Aristocrat’s track record, product engine, and global reach make it one of the more interesting quality businesses on the ASX.

Hub24 Ltd (ASX: HUB)

Hub24 is the wealth platform share I would include.

Australia’s wealth management industry is still changing. Advisers need better tools, clients expect clearer reporting, and portfolios are becoming more personalised.

Hub24 is one of the businesses helping that shift happen. Its platform gives advisers a way to manage administration, reporting, managed accounts, and investment portfolios more efficiently. That can make advice practices easier to run and help clients receive a better experience.

I like that Hub24 is connected to a large pool of Australian wealth. Superannuation, retirement planning, intergenerational wealth transfer, and demand for advice can all support long-term platform growth.

The business is exposed to market movements and competition, so valuation discipline is still important. But I think Hub24 has the type of usefulness that can support a high-quality growth story.

Foolish takeaway

CBA and Wesfarmers deserve their reputations, but they are not the only ASX shares with quality characteristics.

That is why I like looking at businesses such as Reece, Aristocrat, and Hub24. They operate in very different markets, yet each has built a position that would be difficult to recreate quickly.

For long-term investors, quality can show up in many forms. It can be a trade supplier with deep customer relationships, a gaming company with a strong product engine, or a wealth platform becoming more embedded in adviser workflows.

Those are the kinds of strengths I think are worth paying attention to beyond the most familiar ASX names.

The post 3 quality ASX shares I’d buy (that aren’t CBA or Wesfarmers) appeared first on The Motley Fool Australia.

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

Fortescue Ltd (ASX: FMG) shares have come under pressure recently.

The iron ore miner is trading around $19.27 at the time of writing, down from its 52-week high of $23.38. The share price has also fallen by around 12% over the past month.

That kind of pullback can make a high-profile share look tempting. Especially given that Fortescue has a long history of generating big cash flows when iron ore prices are strong.

But investors may need to look beyond the first-year numbers before deciding whether this is a bargain.

The valuation looks cheap at first

On near-term forecasts, Fortescue does look reasonably priced.

According to CommSec, consensus estimates point to earnings per share of $1.75 in FY26. Based on the current share price, that puts Fortescue on a price-to-earnings (P/E) ratio of about 11 times FY26 earnings.

That is not demanding on the surface.

The dividend also looks attractive. CommSec estimates dividends per share of $1.20 in FY26, implying a forward dividend yield of around 6.2%.

For income-focused investors, that number may stand out. A 6%-plus yield from a major ASX mining share can look appealing, especially for investors who believe iron ore prices can remain supportive.

But the real question is whether those numbers can last.

The forecasts get tougher

The issue is what happens after FY26.

CommSec consensus estimates suggest Fortescue’s earnings per share could fall to $1.44 in FY27 and $1.04 in FY28. At the current share price, that would lift the P/E ratio to around 13.4 times FY27 earnings and 18.5 times FY28 earnings.

That changes the picture.

The share may look cheap on FY26 earnings, but it looks much less cheap if profits fall as expected over the following two years.

The same applies to the dividend.

CommSec estimates dividends per share of 95.3 cents in FY27 and 67.7 cents in FY28. That implies yields of roughly 4.9% and 3.5%, respectively, based on the current share price.

A 6.2% forecast yield is attractive. A 3.5% yield from a highly cyclical iron ore miner is a different proposition.

That is why I think Fortescue has some value trap characteristics at current levels.

Why I’m cautious

Fortescue remains a very successful company. It has built a world-class iron ore business and has rewarded shareholders well over time.

But I think investors need to be careful when buying miners, mainly because the near-term yield looks high.

Iron ore earnings can move quickly. Prices, demand from China, shipping costs, currency movements, and operating costs can all affect profits. If earnings are already expected to decline, investors need to be comfortable with the possibility that dividends may also become less generous.

Fortescue is also spending heavily on future growth and energy ambitions. That may create opportunities, but it also adds another layer of execution risk.

For me, the cleaner mining exposure remains BHP Group Ltd (ASX: BHP).

BHP has broader commodity exposure, including copper, which I think has stronger long-term demand support from electrification, power grids, data centres, and energy infrastructure. It also has a larger and more diversified asset base.

Fortescue may still perform well if iron ore prices stay higher than the market expects. But if I were choosing between the two, I would prefer BHP shares.

Foolish Takeaway

Fortescue shares may look cheap after their recent fall, especially on FY26 earnings and dividend forecasts.

But the later-year estimates make me cautious. If earnings and dividends decline as expected, the valuation becomes less compelling, and the income appeal fades.

That does not make Fortescue a poor business. It does mean the current setup looks less attractive than the headline numbers suggest.

For investors wanting ASX mining exposure, I would avoid Fortescue shares for now and look more closely at BHP instead.

The post Are Fortescue shares a strong buy or a value trap? appeared first on The Motley Fool Australia.

More reading

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When it comes to superannuation, having a goal in mind for when you want to retire and what sort of income you’re aiming for is a great start.

The sooner you start planning for retirement, the sooner you start to reap the benefits of compound interest and potentially tax-effective ways to save.

Why $1000 a week?

I’ve selected a figure of $1000 per week, or $52,000 per year, because it’s not far off the Association of Super Funds of Australia (ASFA) figure of $55,923 a year, which they say is needed for a single person who owns their own home to have a comfortable retirement.

So what exactly do they mean by comfortable?

This involves being able to afford top-level health insurance, a reasonable car, fast broadband, appropriate devices, regular leisure activities, an annual domestic trip, and an overseas holiday every 7 years.

It’s not an abundant lifestyle, but it definitely fits the “comfortable” bill.

So how much would you need in your superannuation to deliver an income stream to afford such a lifestyle?

It all depends on the dividend yield you are receiving from your stocks.

According to S&P Dow Jones, the S&P/ASX 200 Index (ASX: XJO) delivered an average trailing dividend yield of 4.15% from July 2011 to December 2024.

But this includes plenty of companies that pay low or no dividends. It’s quite possible to aim for a portfolio which delivers a dividend yield of around 5%, while also including some companies which pay a lot more.

In terms of companies that are in the ballpark, three to consider are APA Group (ASX: APA), Amcor Plc (ASX: AMC), and Regal Partners Ltd (ASX: RPL).

For the first two, both companies are operating in markets where they have a dominant position and are unlikely to be disrupted in a hurry by new technology.

Broker Morgans recently issued a research note on Amcor, which said the company will pay a dividend yield of 6.3% this year, then likely rise to 6.6% by FY28.

Regarding gas pipeline operator APA, Jarden has forecast that they will increase their dividend from 58 cents this year to 60 cents by FY28, for a 6.5% dividend yield.

Regal Partners, meanwhile, is expected to pay a dividend yield of 6.2% this year, rising to 7.6% by 2028, according to Bell Potter, which also predicts significant capital returns, with the company’s shares expected to increase to $4.70, up from $2.89.

How much superannuation do you need?

So, back to the calculations of how much super you’d actually need to generate $52,000 a year, the figure sits at $1.04 million if you’re working off a 5% dividend yield, and no drawdown of your nest egg.

So what if you want to boost your super now?

If you’re looking to maximise your superannuation contributions and potentially reduce your tax bill, it’s worth having a look at the amount of concessional contributions you have made and whether you can top that up.

Concessional contributions are contributions made to superannuation from your before-tax salary, and include the super guarantee contributions made by your employer, which are 12% of your salary.

Each financial year, you are allowed to make concessional contributions of up to $30,000. Extra contributions made beyond what your employer contributes can serve to reduce your tax load, as contributions are taxed at 15%. 

In terms of figuring out how much extra you can put into your super in this way, it is possible to keep track of your concessional contributions by using the Australian Taxation Office’s online services.

Your superannuation fund might also be able to show you where you stand with regard to concessional contributions.

If you do put extra into your super and want it to be a concessional contribution, you also need to lodge a notice of intent to claim, which alerts your super fund that it is a concessional contribution, and they will take the 15% tax out as necessary.

This is necessary as it is also possible to make non-concessional contributions of up to $130,000 per year.

The post How much do I need in my superannuation to get $1000 per week in passive income? 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 positions in and has recommended Amcor Plc and Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The modern economy is becoming more digital every year.

This creates opportunities for companies that sit inside these changes.

But where are the opportunities for investors?

Here are three ASX tech shares that could be well placed for a more digital world.

NextDC Ltd (ASX: NXT)

NextDC gives investors exposure to the physical backbone of the digital economy.

It develops and operates data centres, which are used by businesses, cloud providers, technology companies, and other organisations that need secure and reliable infrastructure for their data and computing workloads.

That makes NextDC a different kind of technology share. It is not selling apps or software. It is providing the highly specialised facilities that help keep the digital world running.

Demand for data centre capacity is being supported by cloud computing, artificial intelligence, enterprise digitisation, and the rising volume of data being created across the economy.

These facilities are difficult to build well. They require large amounts of capital, technical expertise, power access, cooling capability, security, and strong operating standards. That creates a meaningful barrier to entry.

Morgans recently put a buy rating and $18.00 price target on its shares.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is an ASX tech share that gives investors exposure to the digital side of healthcare.

Its Visage platform helps hospitals and radiology groups manage, view, and interpret medical images. That is important because modern healthcare produces enormous amounts of imaging data. Scans need to move quickly, load reliably, and be available to clinicians when decisions are being made.

Pro Medicus has built a strong reputation in this market, particularly with large healthcare networks overseas. Its software is not just a nice extra for its customers. It can sit close to the daily workflow of radiologists and hospitals.

And with the long-term need for better medical imaging infrastructure only likely to increase as healthcare systems become more digital, Pro Medicus appears well-placed for long-term growth.

Bell Potter recently put a buy rating and $226.00 price target on its shares.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of the ASX’s strongest enterprise software businesses.

It provides software used by large organisations such as councils, universities, government bodies, and corporations.

These customers need systems that can help manage finance, payroll, planning, assets, projects, and administration. The work happens behind the scenes, but it is essential to how these organisations function.

This gives TechnologyOne an attractive position. Its software can become deeply embedded in customer operations, which can make relationships sticky and support recurring revenue over time.

And with the company’s international expansion gaining momentum, it appears well-placed for growth over the long-term.

Morgan Stanley has an overweight rating and $32.00 price target on its shares.

The post 3 buy-rated ASX tech shares with bright futures appeared first on The Motley Fool Australia.

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

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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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 positions in and has recommended Telix Pharmaceuticals, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Although not quite as popular as some blue chips, namely the ASX bank shares, ASX investors do tend to consider energy shares as a dividend income investment. Perhaps none more so than Woodside Energy Group Ltd (ASX: WDS) shares.

Woodside is, by far, the largest energy stock on the ASX, boasting a market capitalisation (at least at the time of writing) of about $53.35 billion. It is an oil and gas heavyweight in the energy space, thanks in part to its acquisition of BHP Group Ltd (ASX: BHP)’s petroleum assets a few years ago.

Oil stocks like Woodside do often have the potential of offering high levels of dividend income, at least over parts of the economic cycle. After all, oil prices are highly volatile (as we’ve all experienced over the past few months), and as such, energy stocks’ profits, and ability to fund dividends, tend to fluctuate accordingly.

But let’s get into what kind of yield investors can expect from Woodside shares in mid-2026.

Woodside shares: What kind of dividend yield is on offer today?

At the time of writing, Woodside shares are trading at $28.22 each, down a hefty 1.5% for the day thus far. At this price, the ASX 200 energy stock is trading on a trailing dividend yield of 5.87%.

5.87% is obviously a pretty fat yield. It stems from the last two dividend payments Woodside has doled out to its shareholders. The first of those was the interim payment of 81.82 cents per share (from 53 US cents) that was distributed in September last year. The second was this March’s final dividend, worth 83.49 cents per share (59 US cents).

Together, this 12-month total of $1.65 per share gives Woodise that trailing yield of 5.87% at the current share price.

Both of these dividends came with full franking credits attached as well. That means this 5.87% yield grosses up to an impressive 8.39% with the value of those credits included.

However, all dividend stocks are inherently unreliable income payers, and Woodside is particularly so for the reasons discussed above. To illustrate, the company’s $1.65 dividend total over the past 12 months pales in comparison to the $3.75 or so investors enjoyed for the 2022 financial year.

As such, I think Woodside is a worthy candidate for inclusion in any well-balanced and diversified portfolio that prioritises maximising dividend income. However, investors should never take this company’s dividend yield as an indication of what they might receive going forward. When the oil market stars align, Woodside has shown it can be a generous investment. But when times are tough, expect the taps to turn down.

The post Buying Woodside shares? Here’s the dividend yield you’ll get today appeared first on The Motley Fool Australia.

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

Cochlear Ltd (ASX: COH) shares are pushing higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) hearing solutions company closed yesterday trading for $112.78. In early afternoon trade on Wednesday, shares are changing hands for $114.44 apiece, up 1.5%.

For some context, the ASX 200 is up 0.3% at this same time.

Unfortunately for longer-term stockholders, today’s outperformance is not par for the course for Cochlear shares, which have plunged 61.5% over the last 12 months.

And while Cochlear did pay two partly franked dividends over this time, the stock’s 3.8% trailing dividend yield won’t do much to ease those capital losses.

But with the ASX 200 stock down more than 60% in a year, is now the time for brave investors to pounce on a potential long-term bargain?

The bearish case for Cochlear shares

Peak Asset Management’s Niv Dagan recently analysed the outlook for the ASX 200 hearings solutions company (courtesy of The Bull).

Commenting on the more recent selling pressure, he noted:

In April, the hearing implants maker materially reduced its fiscal year 2026 underlying net profit guidance to between $290 million and $330 million from between $435 million from $460 million in February.

The downgrade was a response to weaker than expected demand in developed markets amid Middle East uncertainty, lower margins and foreign exchange headwinds.

And Dagan expects Cochlear shares are likely to face ongoing headwinds over the medium term. Summarising his sell recommendation on the ASX 200 stock, he concluded:

Hospital capacity constraints amid softer consumer sentiment and reduced referral activity are weighing on implant volumes, while cost base restructuring is likely to impact earnings in the near term.

A more upbeat outlook for the ASX 200 stock

Bell Potter Securities’ Christopher Watt also recently ran his slide rule over the beleaguered hearing solutions company.

And he sounded a more optimistic note on Cochlear’s outlook.

“The long-term opportunity for this hearing implants maker remains compelling, supported by a large addressable market, strong brand position and an attractive product pipeline,” Watt said.

But Watt isn’t ready to pull the trigger just yet, issuing a hold recommendation on Cochlear shares.

According to Watt:

However, near term trading conditions have softened in response to weaker referral activity in the US, hospital capacity constraints in Europe and reimbursement changes in China. Until there’s clearer evidence that volumes are stabilising, a more balanced stance is appropriate.

The long-term growth story and product pipeline remain intact.

Cochlear shares have enjoyed a strong rebound over the past month, up 17.8% since 25 May.

The post Down 62%, should I buy Cochlear shares now? appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares are down 40% to 65% and could be bargain buys
• What on earth’s going on with Cochlear shares?
• Buy, hold, sell: Charter Hall, Northern Star, Cochlear shares
• 3 ASX healthcare shares to sell despite signs of sector rebound
• Healthcare shares led the ASX 200 last week. Is a sector comeback underway?

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 Cochlear. 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.