Author: openjargon

Commonwealth Bank of Australia (ASX: CBA) is typically considered a cyclical stock, but its shares also have strong defensive qualities.

The business is the second-largest company on the S&P/ASX 200 Index (ASX: XJO), with a market capitalisation of $254 billion at the time of writing.

The banking giant has a strong operation performance too. 

In mid-August, CBA posted a 7% increase in cash NPAT and an 8% increase in statutory NPAT. Operating income also increased by 6.2%. CBA said it is the first time it has reported growth at or above system in each of its five core domestic product categories: home lending, business lending, consumer finance, household deposits, and business deposits.

Its large scale and strong operational performance also mean the company can often remain resilient through times of economic volatility, and its cyclical nature also means it can outperform during times of recovery.

And the bonus for shareholders is that this means the bank can pay a regular passive income.

But what exactly does that passive income look like?

Let’s take a look.

Where are CBA shares trading now?

At the time of writing, CBA shares are $151.62 a piece. The bank shares have had a relatively choppy start to the year, driven by interest rate movements and inflation concerns, but after each decline, the shares manage to bounce back. 

For the year to date, they’re down around 6% and roughly 10% lower than 12 months ago at the time of writing.

How many CBA shares can I buy for $10,000?

At the current share price of $151.62, a $10,000 investment will buy around 65 shares.

What dividend does the banking giant pay?

CBA has a long history of paying its shareholders regular fully-franked dividends dating back to 1992. These are typically paid out every six months, in March and September.

Last month, as part of its FY26 results announcement, the bank declared a $2.70-per-share fully-franked final dividend and a fully-franked full-year dividend of $5.05, up 20 cents. This is payable to shareholders on the 29th of September. That translates to a yield of around 3.3%.

Forecasts suggest the bank will pay its shareholders closer to $5.45 per share in FY27, and $5.30 per share in FY28.

At the time of writing, this translates to a forward dividend yield of roughly 3.6% for FY27. For FY28, the forward dividend yield is around 3.5%.

So, what passive income can I earn off a $10,000 investment?

I’ve crunched the numbers, using the estimated dividend payout figures above, to work out roughly how much passive income investors can expect from a $10,000 investment in CBA shares in FY27 and even beyond.

If the banking giant pays the expected $5.45 per-share dividend in FY27, your 65 shares would generate around $354.25 in passive income.

Assuming CBA then pays the forecasted $5.30 dividend in FY28, those 65 shares would generate around $344.40 in passive income for the year.

The post  If I invest $10,000 in CBA shares, how much passive income will I receive in FY27? appeared first on The Motley Fool Australia.

More reading

• Sell alert! Why this expert is calling time on Woolworths and CBA shares
• ASX 200 drops again as selling continues
• Down 12%: Are CBA shares a buy, sell or hold now?
• Westpac, ANZ, NAB or CBA shares? Which ASX bank stock should I buy for $5,000 a year in passive income?
• Vanguard ETFs vs. Betashares ETFs: Who’s coming out on top?

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.

If you are lucky enough to have $2,500 to invest this month, but you’re not a fan of stock picking, then don’t worry.

That’s because exchange traded funds (ETFs) can make the job much simpler by allowing you to buy groups of shares in one fell swoop.

With that in mind, let’s look at three ASX ETFs that could be worth getting better acquainted with right now. Here’s what you need to know about them:

Betashares Australian Quality ETF (ASX: AQLT)

The first ASX ETF to look at is the Betashares Australian Quality ETF.

Instead of just buying only the biggest Australian stocks, the Betashares Australian Quality ETF invests in Australian shares that score highly on measures of quality.

That means it favours businesses with characteristics such as strong profitability, healthy balance sheets, and more reliable earnings. This includes CSL Ltd (ASX: CSL), Telstra Group Ltd (ASX: TLS), and Commonwealth Bank of Australia (ASX: CBA).

For investors who want Australian shares but would prefer a tilt towards stronger businesses, this ETF could be a good option.

VanEck MSCI International Quality ETF (ASX: QUAL)

Another ASX ETF to consider is the VanEck MSCI International Quality ETF.

It applies a similar idea internationally. It invests in stocks from developed markets that demonstrate strong profitability, low financial leverage, and relatively stable earnings.

This provides Australian investors with access to leading businesses from overseas while applying a quality filter before they make it into the portfolio.

I like that approach for long-term investing. Great businesses often have the financial strength to keep investing through difficult periods, take opportunities when competitors are struggling, and continue growing over many years.

The VanEck MSCI International Quality ETF also gives investors exposure to industries and companies that are difficult to access through the Australian market alone.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

A final ASX ETF to look at is the Betashares Asia Technology Tigers ETF.

This is the more growth-focused option of the three.

The fund invests in major Asian technology companies across areas such as semiconductors, ecommerce, online platforms, gaming, hardware, and other digital businesses.

Asia is home to some of the world’s most important technology companies, as well as enormous consumer markets that are continuing to adopt digital services.

This gives the Betashares Asia Technology Tigers ETF exposure to both the infrastructure behind modern technology and the companies serving consumers across the region.

It can be volatile, particularly when sentiment towards Asian markets changes. But for investors with a long-term view, the growth opportunity across Asian technology remains significant.

The post Where to invest $2,500 in ASX ETFs now appeared first on The Motley Fool Australia.

More reading

• 5 ASX ETFs to buy and hold forever
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• Why I’d buy these Betashares ETFs in September
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• 3 fantastic ASX ETFs for Aussie investors in September

Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf and CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Transurban Group (ASX: TCL) share price is in focus after releasing its August 2026 traffic update, showing groupwide average daily traffic (ADT) growth of 3.4% compared to last year, with particularly strong results in North America and continued momentum in Sydney and Melbourne.

What did Transurban Group report?

• Group average daily traffic (ADT) rose 3.4% year on year in August 2026
• Sydney ADT up 3.3%, supported by robust 11.8% growth on the M7 following the M7-M12 Integration Project
• Melbourne ADT increased 3.5%, boosted by West Gate Tunnel’s contribution; excluding WGT, Melbourne traffic fell 0.8%
• Brisbane traffic improved by 1.0%, led by large vehicle growth of 3.7%
• North America traffic surged 12.3%, with the 495 Express Lanes up 26.1% and average dynamic toll prices rising significantly

What else do investors need to know?

Transurban highlighted that, excluding the West Gate Tunnel in Melbourne, total group traffic increased at a slower pace of 1.9%. The M7-M12 Integration in Sydney and the opening of the 495 Northern Extension in North America both drove significant local gains.

The company recently completed the divestment of the A25 toll road in June 2026, so July and August North American figures now reflect only the 95 and 495 Express Lanes. Transurban also noted its defensive revenue profile, with over 90% of group revenue linked to inflation or fixed price escalators, offsetting some macroeconomic risks.

What’s next for Transurban Group?

Transurban will continue providing monthly traffic data through the rest of 2026, closely watching the shifting geopolitical and economic conditions. Management reaffirmed a focus on disciplined balance sheet management and operational efficiency to support customer value.

The group says its portfolio resilience is underpinned by the essential nature of its roads, with inflation-linked revenue streams generally flowing through with a lag. Investors will be watching for further updates on traffic performance as well as any impacts from international energy markets and macroeconomic policy.

Transurban Group share price snapshot

Over the past 12 months, Transurban shares have declined 7%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 1% over the same period.

View Original Announcement

The post Transurban posts 3.4% August traffic growth appeared first on The Motley Fool Australia.

More reading

• How much do I need in superannuation to receive $1,000 passive income per week?
• How to make $26,000 of passive income from ASX shares
• My top ASX passive income stocks for the next 10 years
• Why I’d rather buy growing dividends than chase the highest ASX yields
• Top 3 ASX dividend shares to buy if interest rates go up

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

Newmont Corp vs Northern Star Resources shares

Are you weighing up Newmont Corporation CDI (ASX: NEM) vs Northern Star Resources Ltd (ASX: NST) shares? Both are major names in gold, but they’re quite different in scale, yield, valuation, and market performance. Let’s break down the fundamentals and see which might shine brighter for investors, especially those looking for strong dividends and competitive P/E ratios.

The case for Newmont Corp

Newmont Corp is the largest gold miner in the world, operating across the Americas, Australia, Africa, and Papua New Guinea. After acquiring Australian miner Newcrest Mining in 2023, Newmont gained assets like Boddington, Cadia, Tanami, and Telfer, adding further depth to their mineral portfolio. Besides gold, Newmont also produces copper, silver, zinc, and lead.

A few things jump out about Newmont:

• It has a massive market cap of $179.37 billion, making it a goliath in the sector.
• Its P/E ratio is 15.88, lower than Northern Star’s, so you’re paying less per dollar of earnings.
• The dividend yield is 0.85%, which is relatively modest for a miner.
• Dividends are unfranked, so there’s no extra tax benefit for Australian shareholders.
• Year to date, Newmont shares have returned a solid 17.64%.

The case for Northern Star Resources

Northern Star Resources is a leading Australian gold producer with a global reach. Its flagship operations are in Western Australia’s Kalgoorlie and Yandal projects, as well as Alaska’s Pogo goldfields. Northern Star is known for its strategic acquisitions and commitment to ongoing exploration.

Some key facts about Northern Star:

• Market cap sits at $31.40 billion—a sizeable company, but much smaller than Newmont.
• P/E ratio is 19.56, higher than Newmont, which could suggest a more fully valued share.
• Dividend yield stands at 2.43%, nearly three times higher than Newmont.
• Importantly, its most recent dividends have been 100% franked, offering a big plus for Aussie tax residents.
• However, year-to-date return is -13.28%, showing recent underperformance.

Valuation comparison

Here’s how the numbers stack up between these two gold giants:

Metric	Newmont Corp (NEM)	Northern Star (NST)
Market Cap	$179.37 billion	$31.40 billion
P/E Ratio	15.88	19.56
Dividend Yield	0.85% (Unfranked)	2.43% (100% Franked)
Year to Date Return	17.64%	-13.28%
Earnings Per Share (EPS)	7.930	1.157

Newmont boasts a lower P/E, higher earnings per share, and stronger recent performance, while Northern Star offers a higher, fully franked dividend yield. Newmont’s size dwarfs Northern Star’s.

Recent share price performance

Share price figures as of 15 September 2026 show Newmont closed at $170.69, dropping 2.8% that session but still up 17.64% YTD. Northern Star finished at $22.04, down 2.61% on the day and showing a negative year-to-date return of -13.28%. Looking through recent weeks, Newmont has shown more resilience, while Northern Star has faced consistent pressure.

Which is the better buy?

If I had to choose between Newmont and Northern Star today, I’d lean toward Newmont. Here’s why: Newmont is trading at a lower P/E ratio—making it look better value—and it’s delivered a strong positive return this year. While its dividend yield is lower and those dividends are unfranked, the company’s massive scale, higher earnings per share, and positive momentum give me more confidence right now. Northern Star’s higher, fully franked yield is tempting, especially for income-seeking Australians, but with its higher valuation and recent negative performance, I’m not convinced the risk is worth the reward at this stage.

The post Newmont vs Northern Star: Which gold share is better for value and yield? appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. 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 ASX dividend stock Future Generation Global Ltd (ASX: FGX) could be one of the best options for reliable dividends on the ASX.

There are not many ASX shares that have increased their dividend payout every year over the past decade, which I think makes it clear that the board of directors wants to give investors reliable payouts.

The ASX dividend stock offers a winning combination of a high dividend yield and growth. Let’s run through why I think it’s a top option for passive income.

Diversification

Rather than getting exposure to a single business like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP), investing into this ASX dividend stock gives investors exposure to multiple portfolios.

Future Generation Australia is a listed investment company (LIC) which gives investors exposure to a portfolio of funds.

All of those fund managers work for free so that Future Generation Australia can donate 1% of its net assets each year to youth charities.

The funds are invested across both large and small ASX shares, providing exposure to more than 430 shares. I like this strategy because it gives more exposure by weighting to growing businesses than the overall ASX share market does.

Some of the fund managers that are involved here include Vinva, Firetrail, Smallco, Eley Griffiths, QVG, L1 Group Ltd (ASX: L1G) and Sandon Capital.

Large dividend yield

As I’ve already mentioned, this ASX dividend stock is providing investors with a very pleasing dividend yield.

Future Generation Australia has already provided guidance about what its upcoming 2026 financial year annual dividend will be.

The ASX dividend stock has said that FY26 payout will be 7.6 cents per share.

At the time of writing, that translates into a grossed-up dividend yield of 8.4%, including franking credits. I think the business is one of the best for large dividends for the foreseeable future.

Rising payouts

It’s not just the size of the dividend that’s impressive, but this business has regularly increased its payout. Few high-yielders can point to a record like Future Generation Australia’s.

The ASX dividend stock has increased its annual dividend per share every year since 2015 – that’s more than a decade of regular increases. I think plenty of ASX blue-chip shares would love to be able to say they’ve increased their payout every year for the past decade.

What a $3,000 investment could unlock

If someone were to invest $3,000 into Future Generation Australia shares today with an 8.4% dividend yield (including franking credits), it would unlock approximately $176.74 of dividend cash and around $252.49 of overall dividend income with an investment of 2,325 Future Generation Australia shares.

That’s a really impressive level of dividends, though I’m not expecting significant capital growth because it’s paying so much of its profit out as dividends.

The post $3,000 buys 2,325 shares in an impressively reliable ASX dividend stock appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Future Generation Australia and L1 Group. 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.

If you are looking for some big potential returns, then it could be worth checking out the two S&P/ASX 200 index (ASX: XJO) shares in this article.

That’s because the team at Bell Potter believes they are significantly undervalued and have the potential to deliver market-beating returns over the next 12 months.

Here’s what it is recommending to clients:

Liontown Ltd (ASX: LTR)

Bell Potter thinks that Liontown could be an ASX 200 share with strong potential returns over the next 12 months.

The broker recently put a buy rating and $1.90 price target on the lithium miner’s shares. Based on its current share price of $1.02, this implies potential upside of approximately 85% for investors.

Bell Potter believes the market is undervaluing Liontown’s shares, especially given the significant improvements it has made this year. This includes reducing its net debt and ramping up underground production at Kathleen Valley.

In light of this, the broker thinks now could be a good time to buy:

We still believe that LTR’s EV is lagging the recent recovery in lithium markets and expected tight fundamentals. The last time LTR was trading at its current EV (early December 2025), SC6 prices were US$1,150/t and net debt was $274m. Since this date. Since then, the Kathleen Valley underground ramp-up has been further derisked and spot SC6 prices are above US$2,300/t. 

While we expect lithium markets will be volatile, market fundamentals remain strong. Over FY27, LTR will continue to ramp up and de-risk Kathleen Valley, a highly strategic asset in terms of scale, long project life and location in a tier-one mining jurisdiction

Paladin Energy Ltd (ASX: PDN)

Bell Potter also sees major upside potential in this uranium producer. 

It recently retained its buy rating and $14.50 price target on the ASX 200 share. Based on its current share price of $9.52, this implies potential upside of 52%.

Bell Potter believes Paladin Energy is well-positioned to benefit from increasing demand for uranium thanks to a combination of electrification, energy security and artificial intelligence (AI)-related power requirements. It said:

We retain our Buy recommendation. We have a positive medium- to long-term outlook for the uranium market, supported by barriers to new supply and demand growth linked to electrification, energy security and AI-related power requirements. PDN has ~56% exposure to market prices out to 2030.

Production at LH continues to improve with higher-grade mined ore feeding the processing plant. PDN continues to derisk its key growth project at Paterson Lake South in Canada’s Athabasca Basin.

The post These ASX 200 shares could return 50% to 85% appeared first on The Motley Fool Australia.

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• Brokers are confident in the outlook for this uranium stock tipping 34% upside

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 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 both BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) are up strongly over the past 12 months, with both racking up gains of more than 40%.

But while both remain major iron ore producers, they have diversified their other income streams to the point where a different investment case can be made for each.

Major miners both kicking goals

Canaccord Genuity has just released a new research report into the companies, and said when it came to iron ore, it is no longer the majority revenue generator for each company.

The broker commented:

Nearly 60% of each company’s EBITDA came from future-facing commodities over the six months to end-June 2026, with copper central to this transformation. This changes the investment case for BHP and RIO, which both increasingly provide upstream exposure to prominent structural growth thematics including electrification and the AI infrastructure build-out. In our view, their evolving earnings profiles also warrant a different valuation framework, with a greater contribution from copper supporting structurally higher earnings multiples.

Canaccord Genuity said BHP and Rio outperformed the S&P/ASX 200 Index (ASX: XJO) by about 50% over the past 12 months, despite iron ore tracking slightly lower.

The broking house said copper accounted for 57% of earnings at BHP and 36% at Rio, while aluminium accounted for 20% of Rio’s earnings.

Lithium was also emerging as an important commodity for Rio.

 Canaccord Genuity said:

The shifts in both companies’ earnings mixes reflect years of disciplined capital allocation through organic project development and selective M&A, including BHP’s acquisition of OZ Minerals in 2023 and RIO’s acquisition of Arcadium Lithium in 2025, alongside support from commodity price tailwinds.

Canaccord Genuity said copper was the central focus of BHP’s organic growth strategy, with projects under development in South Australia, Chile and Argentina.

The broker said Rio’s growth strategy was broader, “spanning copper, Simandou in iron ore, the Arcadium portfolio in lithium, and aluminium”.

Canaccord Genuity added:

BHP and RIO are targeting broadly comparable copper production growth of ~20–25% by 2030 relative to FY26 levels, supported by brownfield expansions, operational ramp-ups and the development of their respective copper portfolios.

Canaccord Genuity also noted that copper producers generally traded at higher multiples than iron ore companies, reflecting copper’s more attractive long-term fundamentals.

The broker said it preferred BHP to Rio, despite both being compelling propositions, because BHP was the highest-quality diversified miner, with a strong track record of operational delivery.

They also preferred BHP because of the central role of copper.

Canaccord Genuity added:

As the world’s largest copper producer, BHP provides one of the largest and lower-risk ways to gain leverage to our preferred commodity

The post BHP vs Rio Tinto: What’s the better buy? appeared first on The Motley Fool Australia.

More reading

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• How much passive income could I earn from a $650,000 superannuation balance?
• ASX 200 drops again as selling continues
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• BHP shares keep falling. Is now the time to buy?

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

After surging a remarkable 30.5% from 18 May to close at $92.96 apiece on 20 July, Wesfarmers Ltd (ASX: WES) shares have come under heavy selling pressure.

On Wednesday afternoon, shares in the S&P/ASX 200 Index (ASX: XJO) conglomerate – whose retail subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks and Priceline – were changing hands for $72.60 each.

That sees the Wesfarmers share price down 21.9% in four months.

Most of that selling looks to be driven by concerns over the impacts of high inflation and potential further interest rate hikes on consumer sentiment, as well as Wesfarmers’ own cost of doing business.

But with shares having come back to earth from their July highs, is the ASX 200 stock now a good buy for passive income?

What kind of dividend yield does Wesfarmers stock offer?

Wesfarmers paid a fully franked interim dividend of $1.02 a share on 31 March,

The ASX 200 stock will payout the final fully franked dividend of $1.20 a share on 7 October. It’s a bit too late to bank that passive income payout, as Wesfarmers shares traded ex-dividend on 1 September. That payout will go to investors who held the stock at market close on 31 August.

As for the dividend yield, at the recent share price of $72.60, Wesfarmers trades on a fully franked trailing dividend yield of 3.1%.

Which brings us back to our headline question.

Should I buy Wesfarmers shares for passive income?

Shaw and Partners’ James Bills recently analysed the outlook for the ASX 200 stock (courtesy of The Bull).

Wesfarmers remains one of Australia’s premier diversified companies,” he said. “It’s supported by market leading businesses, including Bunnings, Kmart and Officeworks.

Bills added:

The company’s strong balance sheet, disciplined capital allocation and resilient earnings profile continue to underpin shareholder value. While growth opportunities remain available across several divisions, recent share price levels appear to reflect much of this quality.

Connecting the dots, Bills issued a hold recommendation on Wesfarmers shares:

Holding Wesfarmers remains appropriate given the company’s strong market position, dependable cash generation and proven ability to create value over the long term.

What’s the latest from the ASX 200 conglomerate?

Wesfarmers released its FY 2026 results on 27 August.

Highlights included a 3.4% year-on-year increase in revenue to $47.25 billion, excluding significant items.

On the bottom line, Wesfarmers achieved a statutory NPAT of $2.87 billion, up 8.3% from FY 2025.

And with profits up, so too was the passive income on offer.

Wesfarmers managing director Rob Scott commented:

As a result of the increase in underlying profit, the Wesfarmers Board has determined to pay a fully-franked final dividend of $1.20 per share, bringing total fully franked ordinary dividends for the year to $2.22 per share, an increase of 7.8 per cent.

Wesfarmers shares closed down 4.6% on the day of the results release.

The post Down 22%: Are Wesfarmers shares now a good buy for passive income? appeared first on The Motley Fool Australia.

More reading

• Wesfarmers vs Telstra: Which ASX dividend stock comes out on top?
• How much passive income could I earn from a $650,000 superannuation balance?
• How to make $26,000 of passive income from ASX shares
• Buy, hold, sell: Domino’s Pizza, Telix Pharmaceuticals, Westfarmers shares
• How much is needed in superannuation to target a $6,500 monthly passive income?

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 Wesfarmers. 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.

The Contact Energy Ltd (ASX: CEN) share price is in focus today after the company reported mass market electricity and gas sales of 550GWh, up from 454GWh in August 2025, and a stable mass market netback of $148.57/MWh.

What did Contact Energy report?

• Mass market electricity and gas sales: 550GWh (August 2025: 454GWh)
• Mass market netback: $148.57/MWh (August 2025: $148.36/MWh)
• Wholesale contracted electricity sales: 1,087GWh (August 2025: 1,090GWh)
• Electricity and steam net revenue: $164.59/MWh (August 2025: $164.24/MWh)
• Unit generation cost: $40.90/MWh (August 2025: $57.52/MWh)
• Geothermal generation: 457GWh; Hydro generation: 539GWh

What else do investors need to know?

Contact Energy continues to progress several renewable development projects, including Te Mihi Stage 2 geothermal (expected online Q3 CY27, $712m), Glenbrook-Ohurua Battery 2 (Q1 CY28, $235m), and Glorit Solar (Q4 CY28, $316m). The company reports strong controlled hydro storage, with the South Island at 166% and North Island at 84% of mean.

Electricity demand in New Zealand for August 2026 was down 0.3% compared to August 2025, but up 5.3% on August 2024. The average temperature across the country hit 9.7ºC, continuing a warmer-than-normal trend.

What’s next for Contact Energy?

Looking ahead, Contact Energy is focused on delivering its renewable development pipeline, aiming to bring more geothermal, battery, and solar capacity online over the coming years. The company’s next 12 months are supported by contracted gas volumes of 8.2PJ and an ongoing commitment to strong operational performance.

Contact’s ESG initiatives, including reduced greenhouse gas emissions intensity and increased community support, remain a key part of its long-term strategy, providing further confidence for socially responsible investors.

Contact Energy share price snapshot

Over the past 12 months, Contact Energy shares have declined 15%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 1% over the same period.

View Original Announcement

The post Contact Energy reports higher sales and renewable project progress in August appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares could generate $10,000 per year in passive income

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The ASX dividend stock Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) could be the most appealing way for retirees to receive income. I’d rank it above receiving the Age Pension.

The business is one of the oldest on the ASX, it has already displayed excellent longevity characteristics to succeed through world wars, global pandemics, global recessions and so on.

It started life as a pharmacy business and has evolved into a diversified investment house, which is one of the reasons why I think it’s such an effective choice for dividend income. Let’s get into the reasons why it’s so compelling, in my view.

Regularly growing dividend income

I think one of the main reasons to prefer Soul Patts shares over the Age Pension is that its dividend income has been very reliable and grown faster than inflation.

The business has increased its regular annual dividend per share every year since 1998. This shows it has been incredibly reliable for shareholders over the last three decades.

Over the last five years, the ASX dividend stock has increased its payout at a compound annual growth rate (CAGR) of 11.9%. The company increased its FY27 interim dividend by 9.1% to 48 cents per share.

Dividend growth isn’t guaranteed, of course, but the business has a strong track record of rising payouts, and it’s one of its key goals.

The current forecast on Commsec suggests the business could increase its FY26 annual payout by more than 11% to approximately $1.15. If that happens, the grossed-up dividend yield would be 3.7%, including franking credits, at the time of writing.

Impressively diversified portfolio

The investment house has spread its money across a variety of areas including listed companies, ’emerging companies’, credit, private companies and ‘real’ assets (such as real estate, agriculture and data centres).

By spreading investments across a range of areas, the company can lower its risk and give investors exposure to a portfolio of compelling assets, rather than just one or two sectors like many S&P/ASX 200 Index (ASX: XJO) shares.

This diversification strategy also allows the business to look across industries and geographic markets for the best opportunities. I think the flexible mandate helps generate the best returns over the long-term.

Capital growth

Another reason to prefer owning Soul Patts shares is that its portfolio has steadily increased in value over time as its existing investments have grown and it has made additional purchases.

This reflects growth in the net asset value (NAV), which is also strongly correlated with growth in the Soul Patts share price.

Over the last four years, Soul Patts’ share price has risen by roughly 70% (at the time of writing). I’m not expecting the same performance over the next four years, but it shows the kind of return Soul Patts can deliver.

Match the Age Pension

The Age Pension will soon increase, but at the time of writing, the maximum a single Australian can receive is approximately $31,200 per year on an annualised basis.

If the business does pay $1.15 per Soul Patts share in FY26, that would require 27,131 shares based on the FY26 payout. However, I expect the FY27 payout will be larger, so we won’t need as many shares in FY27 to achieve $31,200 in annual dividends.

The post 27,131 shares of this ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.